Document and Entity Information
Document and Entity Information - SFr / shares | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 18, 2019 | Dec. 31, 2018 | |
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, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q1 | ||
Trading Symbol | CB | ||
Entity Registrant Name | Chubb Ltd | ||
Entity Central Index Key | 0000896159 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Common Shares Outstanding | 457,870,731 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |||
Assets | |||||
Fixed maturities available for sale, at fair value (amortized cost – $79,624 and $79,323) (includes hybrid financial instruments of $8 and $9) | $ 80,663 | $ 78,470 | |||
Fixed maturities held to maturity, at amortized cost (fair value – $13,240 and $13,259) | 13,136 | 13,435 | |||
Equity securities, at fair value and cost | 821 | 770 | |||
Short-term investments, at fair value and amortized cost | 3,078 | 3,016 | |||
Other investments, at fair value and cost | 5,562 | 5,277 | |||
Total investments | 103,260 | 100,968 | |||
Cash | 1,271 | [1] | 1,247 | [2] | |
Restricted cash | [1] | 122 | 93 | ||
Securities lending collateral | 1,861 | 1,926 | |||
Accrued investment income | 870 | 883 | |||
Insurance and reinsurance balances receivable | 9,826 | 10,075 | |||
Reinsurance recoverable on losses and loss expenses | 16,137 | 15,993 | |||
Reinsurance recoverable on policy benefits | 203 | 202 | |||
Deferred policy acquisition costs | 5,008 | 4,922 | |||
Value of business acquired | 289 | 295 | |||
Goodwill | 15,328 | 15,271 | |||
Other intangible assets | 6,091 | 6,143 | |||
Prepaid reinsurance premiums | 2,698 | 2,544 | |||
Investments in partially-owned insurance companies | 708 | 678 | |||
Other assets | 7,675 | 6,531 | |||
Total assets | 171,347 | 167,771 | |||
Liabilities | |||||
Unpaid losses and loss expenses | 63,143 | 62,960 | |||
Unearned premiums | 15,909 | 15,532 | |||
Future policy benefits | 5,552 | 5,506 | |||
Insurance and reinsurance balances payable | 6,469 | 6,437 | |||
Securities lending payable | 1,861 | 1,926 | |||
Accounts payable, accrued expenses, and other liabilities | 11,210 | 10,472 | |||
Deferred tax liabilities | 541 | 304 | |||
Repurchase agreements | 1,419 | 1,418 | |||
Short-term debt | 509 | 509 | |||
Long-term debt | 12,071 | 12,087 | |||
Trust preferred securities | 308 | 308 | |||
Total liabilities | 118,992 | 117,459 | |||
Commitments and contingencies | |||||
Shareholders’ equity | |||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 458,179,205 and 459,203,378 shares outstanding) | 11,121 | 11,121 | |||
Common Shares in treasury (21,604,659 and 20,580,486 shares) | (2,775) | (2,618) | |||
Additional Paid in Capital, Common Stock | 12,051 | 12,557 | |||
Retained earnings | 32,728 | 31,700 | |||
Accumulated other comprehensive income (loss) (AOCI) | (770) | (2,448) | |||
Total shareholders’ equity | 52,355 | 50,312 | |||
Total liabilities and shareholders’ equity | $ 171,347 | $ 167,771 | |||
[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, 2019, 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, 2018, 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, 2019USD ($)shares | Dec. 31, 2018USD ($)shares |
Statement of Financial Position [Abstract] | ||
Available for sale, at amortized cost | $ 79,624 | $ 79,323 |
Fixed maturities available for sale, hybrid financial instruments | 8 | 9 |
Held to maturity, at Fair Value | 13,240 | 13,259 |
Equity securities, at cost | 0 | |
Other investments, cost | $ 0 | |
Common Shares, shares issued | shares | 479,783,864 | 479,783,864 |
Common Shares, shares outstanding | shares | 458,179,205 | 459,203,378 |
Common Shares in treasury, shares | shares | 21,604,659 | 20,580,486 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Net premiums written | $ 7,313 | $ 7,104 |
Increase in unearned premiums | (176) | (77) |
Net premiums earned | 7,137 | 7,027 |
Net investment income | 836 | 806 |
Net realized gains (losses): | ||
Other-than-temporary impairment (OTTI) losses gross | (13) | (1) |
Portion of OTTI losses recognized in other comprehensive income (OCI) | 0 | 0 |
Net OTTI losses recognized in income | (13) | (1) |
Net realized gains (losses) excluding OTTI losses | (84) | (1) |
Net Realized Gains Losses | (97) | (2) |
Total revenues | 7,876 | 7,831 |
Expenses | ||
Losses and loss expenses | 4,098 | 4,102 |
Policy benefits | 196 | 151 |
Policy acquisition costs | 1,464 | 1,464 |
Administrative expenses | 710 | 692 |
Interest expense | 140 | 157 |
Other (income) expense | (39) | (47) |
Amortization of purchased intangibles | 76 | 85 |
Chubb integration expenses | 3 | 10 |
Total expenses | 6,648 | 6,614 |
Income before income tax | 1,228 | 1,217 |
Income tax expense (benefit) (includes $(6) and $(3) on reclassified unrealized losses) | 188 | 135 |
Net income | 1,040 | 1,082 |
Other comprehensive income (loss) | ||
Unrealized appreciation (depreciation) | 1,845 | (1,234) |
Reclassification adjustment for net realized (gains) losses included in net income | 44 | 23 |
Unrealized appreciation (Depreciation) after reclassification adjustment | 1,889 | (1,211) |
Change in: | ||
Cumulative foreign currency translation adjustment | 147 | 397 |
Postretirement benefit liability adjustment | (27) | (23) |
Other comprehensive income (loss), before income tax | 2,009 | (837) |
Income tax (expense) benefit related to OCI items | (331) | 208 |
Other comprehensive income (loss) | 1,678 | (629) |
Comprehensive income | $ 2,718 | $ 453 |
Earnings per share | ||
Basic earnings per share | $ 2.27 | $ 2.32 |
Diluted earnings per share | $ 2.25 | $ 2.30 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total net realized gains (losses) reclassified from AOCI | $ (44) | $ (23) |
Income tax expense on reclassified unrealized gains and loses | $ (6) | $ (3) |
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] |
Cumulative effect of adoption of accounting guidance | $ 409 | $ (416) | |||||||
Balance - beginning of period at Dec. 31, 2017 | $ 11,121 | $ (1,944) | $ 13,978 | 27,883 | 1,034 | $ (1,187) | $ 280 | ||
Balance - beginning of period (Previous Accounting Guidance [Member]) at Dec. 31, 2017 | 27,474 | 1,450 | |||||||
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 | ||||||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (332) | ||||||||
Net income (loss) | $ 1,082 | 1,082 | |||||||
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 $(324) and $226 | (1,008) | ||||||||
Amounts reclassified from AOCI, net of income tax expense of $(6) and $(3) | 20 | ||||||||
Change in period, net of income tax benefit (expense) of $(330) and $223 | (988) | ||||||||
Change in period, net of income tax expense of $(7) and $(19) | 378 | ||||||||
Change in period, net of income tax benefit of $6 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) |
Cumulative effect of adoption of accounting guidance | 0 | ||||||||
Cumulative effect of adoption of accounting guidance | Accounting Standards Update 2017-08 [Member] | (12) | ||||||||
Balance - beginning of period at Dec. 31, 2018 | 50,312 | 11,121 | (2,618) | 12,557 | 31,688 | (545) | (1,976) | 73 | |
Balance - beginning of period (Previous Accounting Guidance [Member]) at Dec. 31, 2018 | 31,700 | (545) | |||||||
Common Shares repurchased | (367) | ||||||||
Net shares redeemed under employee share-based compensation plans | 210 | (191) | |||||||
Exercise of stock options | (34) | ||||||||
Share-based compensation expense | 54 | ||||||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (335) | ||||||||
Net income (loss) | 1,040 | 1,040 | |||||||
Funding of dividends declared from Additional paid-in capital | 335 | ||||||||
Dividends declared on Common Shares | (335) | ||||||||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(324) and $226 | 1,521 | ||||||||
Amounts reclassified from AOCI, net of income tax expense of $(6) and $(3) | 38 | ||||||||
Change in period, net of income tax benefit (expense) of $(330) and $223 | 1,559 | ||||||||
Change in period, net of income tax expense of $(7) and $(19) | 140 | ||||||||
Change in period, net of income tax benefit of $6 and $4 | (21) | ||||||||
Balance - end of period at Mar. 31, 2019 | $ 52,355 | $ 11,121 | $ (2,775) | $ 12,051 | $ 32,728 | $ 1,014 | $ (1,836) | $ 52 | $ (770) |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax | $ (324) | $ 226 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (6) | (3) |
Net unrealized appreciation on investments, Change in period, income tax (expense) benefit | (330) | 223 |
Cumulative translation adjustment, Change in period, income tax(expense) benefit | (7) | (19) |
Pension liability adjustment, Change in period, income tax (expense) benefit | $ 6 | $ 4 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 1,040 | $ 1,082 |
Adjustments to reconcile net income to net cash flows from operating activities | ||
Net Realized Gains Losses | 97 | 2 |
Amortization of premiums/discounts on fixed maturities | 118 | 155 |
Amortization of purchased intangibles | 76 | 85 |
Deferred income taxes | (76) | (2) |
Unpaid losses and loss expenses | 62 | (420) |
Unearned premiums | 274 | 111 |
Future policy benefits | 41 | 58 |
Insurance and reinsurance balances payable | 13 | 250 |
Accounts payable, accrued expenses, and other liabilities | (502) | (724) |
Income taxes payable | 266 | 88 |
Insurance and reinsurance balances receivable | 278 | (174) |
Increase (Decrease) in Reinsurance Recoverable | (97) | 141 |
Deferred policy acquisition costs | (63) | (75) |
Other | (205) | (26) |
Net cash flows from operating activities | 1,322 | 551 |
Cash flows from investing activities | ||
Purchases of fixed maturities available for sale | (5,561) | (5,972) |
Purchases of fixed maturities held to maturity | (1) | (162) |
Purchases of equity securities | (49) | (55) |
Sales of fixed maturities available for sale | 3,287 | 2,562 |
Proceeds From Sales To Be Announced Mortgage Backed Securities | 6 | 0 |
Sales of equity securities | 60 | 40 |
Maturities and redemptions of fixed maturities available for sale | 1,831 | 1,865 |
Maturities and redemptions of fixed maturities held to maturity | 280 | 255 |
Net change in short-term investments | (39) | 731 |
Net derivative instruments settlements | (358) | 39 |
Private equity contribution | (410) | (353) |
Private equity distribution | 368 | 201 |
Other | (87) | (32) |
Net cash flows used for investing activities | (673) | (881) |
Cash flows from financing activities | ||
Dividends paid on Common Shares | (336) | (330) |
Common Shares repurchased | (367) | (29) |
Proceeds from Issuance of Long-term Debt | 0 | 2,175 |
Proceeds from issuance of long-term debt | 0 | (300) |
Proceeds from issuance of repurchase agreements | 471 | 408 |
Repayment of repurchase agreements | (470) | (404) |
Proceeds from share-based compensation plans | 35 | 34 |
Policyholder contract deposits | 115 | 118 |
Policyholder contract withdrawals | (78) | (105) |
Net cash flows (used for) from financing activities | (630) | 1,567 |
Effect of foreign currency rate changes on cash and restricted cash | 34 | 25 |
Net Increase (Decrease) in cash and restricted cash | 53 | 1,262 |
Cash and Restricted Cash - Beginning of year | 1,340 | 851 |
Cash and Restricted Cash - end of Year | 1,393 | 2,113 |
Supplemental cash flow information | ||
Taxes paid | 14 | 93 |
Interest paid | $ 85 | $ 82 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
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 9 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 2018 Form 10-K. b) Restricted cash 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) 2019 2018 Cash $ 1,271 $ 1,247 Restricted cash 122 93 Total cash and restricted cash shown in the Consolidated statements of cash flows $ 1,393 $ 1,340 c) Goodwill During the three months ended March 31, 2019 , Goodwill increased $57 million , primarily reflecting the impact of foreign exchange. d) Accounting guidance adopted in 2019 Premium Amortization on Purchased Callable Debt Securities Effective January 1, 2019, we adopted new accounting guidance on "Premium Amortization on Purchased Callable Debt Securities" for bonds held at a premium on a modified retrospective basis. The guidance requires the premium to be amortized to the earliest call date. As a result, we recorded a cumulative effect adjustment to decrease beginning retained earnings by $12 million after-tax ( $15 million pre-tax). Securities held at a discount did not require an accounting change. Lease Accounting Effective for the quarter ended March 31, 2019, we adopted new lease accounting guidance and elected to utilize a modified retrospective approach which allowed us to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings for 2019, with no adjustment to prior periods presented. The cumulative effect adjustment to the opening balance of retained earnings was zero. Our leases consist principally of real estate operating leases that are amortized on a straight-line basis over the term of the lease. The adoption of the updated guidance resulted in our recognizing a right-of-use asset of $608 million , which was recorded within Other assets, and a lease liability of $653 million , which was recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheet as well as de-recognizing the liability for deferred rent that was required under the previous guidance. The adoption of the new guidance did not have a material effect on our results of operations, financial condition or liquidity. Refer to the 2018 Form 10-K for information on accounting guidance not yet adopted. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments a) Fixed maturities March 31, 2019 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 $ 3,760 $ 50 $ (19 ) $ 3,791 $ — Foreign 21,796 658 (112 ) 22,342 — Corporate securities 27,519 476 (170 ) 27,825 (5 ) Mortgage-backed securities 16,369 173 (112 ) 16,430 (1 ) States, municipalities, and political subdivisions 10,180 123 (28 ) 10,275 — $ 79,624 $ 1,480 $ (441 ) $ 80,663 $ (6 ) Held to maturity U.S. Treasury and agency $ 1,144 $ 11 $ (3 ) $ 1,152 $ — Foreign 1,503 34 (3 ) 1,534 — Corporate securities 2,543 30 (34 ) 2,539 — Mortgage-backed securities 2,484 16 (6 ) 2,494 — States, municipalities, and political subdivisions 5,462 67 (8 ) 5,521 — $ 13,136 $ 158 $ (54 ) $ 13,240 $ — December 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 $ 4,158 $ 30 $ (43 ) $ 4,145 $ — Foreign 21,370 395 (349 ) 21,416 — Corporate securities 27,183 150 (750 ) 26,583 (6 ) Mortgage-backed securities 15,758 66 (284 ) 15,540 (1 ) States, municipalities, and political subdivisions 10,854 49 (117 ) 10,786 — $ 79,323 $ 690 $ (1,543 ) $ 78,470 $ (7 ) Held to maturity U.S. Treasury and agency $ 1,185 $ 8 $ (11 ) $ 1,182 $ — Foreign 1,549 11 (18 ) 1,542 — Corporate securities 2,601 11 (104 ) 2,508 — Mortgage-backed securities 2,524 5 (43 ) 2,486 — States, municipalities, and political subdivisions 5,576 16 (51 ) 5,541 — $ 13,435 $ 51 $ (227 ) $ 13,259 $ — 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, 2019 and 2018 , $9 million of net unrealized appreciation and $4 million of net unrealized depreciation, respectively, related to such securities are included in OCI. At March 31, 2019 and December 31, 2018 , AOCI included cumulative net unrealized appreciation of $3 million and $1 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 5 b) (iv)) and are included in the category, “Mortgage-backed securities”. Approximately 82 percent and 81 percent of the total mortgage-backed securities at March 31, 2019 and December 31, 2018 , 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 2019 2018 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 3,776 $ 3,785 $ 3,569 $ 3,568 Due after 1 year through 5 years 27,308 27,593 27,134 27,005 Due after 5 years through 10 years 23,367 23,690 24,095 23,543 Due after 10 years 8,804 9,165 8,767 8,814 63,255 64,233 63,565 62,930 Mortgage-backed securities 16,369 16,430 15,758 15,540 $ 79,624 $ 80,663 $ 79,323 $ 78,470 Held to maturity Due in 1 year or less $ 614 $ 616 $ 536 $ 537 Due after 1 year through 5 years 3,111 3,125 3,122 3,106 Due after 5 years through 10 years 4,246 4,287 4,468 4,407 Due after 10 years 2,681 2,718 2,785 2,723 10,652 10,746 10,911 10,773 Mortgage-backed securities 2,484 2,494 2,524 2,486 $ 13,136 $ 13,240 $ 13,435 $ 13,259 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. 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, 2019 and 2018 , credit losses recognized in Net income for corporate securities were $6 million and nil, 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, 2019 and 2018 , 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) 2019 2018 Fixed maturities: OTTI on fixed maturities, gross and net $ (13 ) $ (1 ) Gross realized gains excluding OTTI 27 66 Gross realized losses excluding OTTI (58 ) (88 ) Total fixed maturities (44 ) (23 ) Equity securities: Gross realized gains excluding OTTI 64 10 Gross realized losses excluding OTTI (6 ) (21 ) Total equity securities 58 (11 ) Other investments (44 ) 29 Foreign exchange gains (losses) 13 (77 ) Investment and embedded derivative instruments (130 ) 17 Fair value adjustments on insurance derivative 114 38 S&P futures (63 ) 22 Other derivative instruments (1 ) 2 Other — 1 Net realized gains (losses) (pre-tax) $ (97 ) $ (2 ) 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) 2019 2018 Balance of credit losses related to securities still held – beginning of period $ 34 $ 22 Additions where no OTTI was previously recorded 6 — Reductions for securities sold during the period (8 ) (7 ) Balance of credit losses related to securities still held – end of period $ 32 $ 15 c) Equity securities and Other investments The following table presents realized gains and losses from equity securities and other investments, including both sales of securities and unrealized gains and losses from changes in fair value: Three Months Ended March 31 2019 2018 (in millions of U.S. dollars) Equity Securities Other Investments Total Equity Securities Other Investments Total Net gains (losses) recognized during the period $ 58 $ (44 ) $ 14 $ (11 ) $ 29 $ 18 Less: Net gains (losses) recognized from sales of securities 1 (2 ) (1 ) 10 — 10 Unrealized gains (losses) recognized for securities still held at reporting date $ 57 $ (42 ) $ 15 $ (21 ) $ 29 $ 8 d) Gross unrealized loss At March 31, 2019 , there were 10,095 fixed maturities out of a total of 30,335 fixed maturities in an unrealized loss position. The largest single unrealized loss in the fixed maturities was $6 million . Fixed maturities in an unrealized loss position at March 31, 2019 , 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, 2019 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 $ 68 $ — $ 2,298 $ (22 ) $ 2,366 $ (22 ) Foreign 1,346 (26 ) 4,228 (89 ) 5,574 (115 ) Corporate securities 3,649 (62 ) 6,206 (142 ) 9,855 (204 ) Mortgage-backed securities 388 (1 ) 8,974 (117 ) 9,362 (118 ) States, municipalities, and political subdivisions 93 — 4,867 (36 ) 4,960 (36 ) Total fixed maturities $ 5,544 $ (89 ) $ 26,573 $ (406 ) $ 32,117 $ (495 ) 0 – 12 Months Over 12 Months Total December 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 $ 523 $ (4 ) $ 2,859 $ (50 ) $ 3,382 $ (54 ) Foreign 6,764 (208 ) 5,349 (159 ) 12,113 (367 ) Corporate securities 16,538 (599 ) 4,873 (255 ) 21,411 (854 ) Mortgage-backed securities 6,103 (98 ) 6,913 (229 ) 13,016 (327 ) States, municipalities, and political subdivisions 5,024 (44 ) 7,768 (124 ) 12,792 (168 ) Total fixed maturities $ 34,952 $ (953 ) $ 27,762 $ (817 ) $ 62,714 $ (1,770 ) 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 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 have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at March 31, 2019 and December 31, 2018 are investments, primarily fixed maturities, totaling $22.0 billion and $21.0 billion , respectively, and cash of $122 million and $93 million , respectively. The following table presents the components of restricted assets: March 31 December 31 (in millions of U.S. dollars) 2019 2018 Trust funds $ 13,943 $ 13,988 Deposits with U.S. regulatory authorities 2,904 2,405 Deposits with non-U.S. regulatory authorities 2,851 2,531 Assets pledged under repurchase agreements 1,478 1,468 Other pledged assets 942 692 Total $ 22,118 $ 21,084 |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2019 | |
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. 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 supplemental retirement 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 and interest rate 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 maintain positions in exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in reserves for our guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) reinsurance business. Our positions in exchange-traded equity futures contracts are 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) 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, 2019 and 2018 , no material technical refinements were made to the model. For detailed information on our lapse and annuitization rate assumptions, refer to Note 3 to the Consolidated Financial Statements of our 2018 Form 10-K. Financial instruments measured at fair value on a recurring basis, by valuation hierarchy March 31, 2019 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 3,168 $ 623 $ — $ 3,791 Foreign — 21,982 360 22,342 Corporate securities — 26,483 1,342 27,825 Mortgage-backed securities — 16,352 78 16,430 States, municipalities, and political subdivisions — 10,275 — 10,275 3,168 75,715 1,780 80,663 Equity securities 766 — 55 821 Short-term investments 1,785 1,293 — 3,078 Other investments (1) 411 342 11 764 Securities lending collateral — 1,861 — 1,861 Investment derivative instruments 15 — — 15 Other derivative instruments 7 — — 7 Separate account assets 2,991 139 — 3,130 Total assets measured at fair value (1) $ 9,143 $ 79,350 $ 1,846 $ 90,339 Liabilities: Investment derivative instruments $ 52 $ 195 $ — $ 247 Other derivative instruments 12 — — 12 GLB (2) — — 338 338 Total liabilities measured at fair value $ 64 $ 195 $ 338 $ 597 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 4,464 million and other investments of $ 91 million at March 31, 2019 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, 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 $ 3,400 $ 745 $ — $ 4,145 Foreign — 21,071 345 21,416 Corporate securities — 25,284 1,299 26,583 Mortgage-backed securities — 15,479 61 15,540 States, municipalities, and political subdivisions — 10,786 — 10,786 3,400 73,365 1,705 78,470 Equity securities 713 — 57 770 Short-term investments 1,575 1,440 1 3,016 Other investments (1) 381 303 11 695 Securities lending collateral — 1,926 — 1,926 Investment derivative instruments 28 — — 28 Other derivative instruments 25 — — 25 Separate account assets 2,686 137 — 2,823 Total assets measured at fair value (1) $ 8,808 $ 77,171 $ 1,774 $ 87,753 Liabilities: Investment derivative instruments $ 38 $ 115 $ — $ 153 GLB (2) — — 452 452 Total liabilities measured at fair value $ 38 $ 115 $ 452 $ 605 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,244 million and other investments of $95 million at December 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. 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 2019 2018 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 2 to 9 Years $ 591 $ 188 $ 596 $ 193 Real Assets 2 to 11 Years 762 449 704 362 Distressed 2 to 7 Years 263 98 296 105 Private Credit 3 to 8 Years 134 291 147 310 Traditional 2 to 14 Years 2,331 2,573 2,362 2,735 Vintage 1 to 2 Years 125 43 56 — Investment funds Not Applicable 258 — 83 — $ 4,464 $ 3,642 $ 4,244 $ 3,705 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 funds where the initial fund term has 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 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. The majority of our fixed maturities classified as Level 3 used external pricing when markets are less liquid due to the lack of market inputs (i.e., stale pricing, broker quotes). (in millions of U.S. dollars, except for percentages) Fair Value Valuation Technique Significant Unobservable Inputs Ranges March 31, 2019 December 31, 2018 GLB (1) $ 338 $ 452 Actuarial model Lapse rate 3% – 32% Annuitization rate 0% – 42% (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 GLB (1) March 31, 2019 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 345 $ 1,299 $ 61 $ 57 $ 1 $ 11 $ 452 Transfers into Level 3 3 5 — — — — — Transfers out of Level 3 (15 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange 6 4 — 1 — — — Net Realized Gains/Losses (1 ) 1 — (2 ) — — (114 ) Purchases 53 128 18 9 — — — Sales (5 ) (37 ) — (10 ) — — — Settlements (26 ) (58 ) (1 ) — (1 ) — — Balance – end of period $ 360 $ 1,342 $ 78 $ 55 $ — $ 11 $ 338 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ (1 ) $ — $ — $ (114 ) (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 $741 million at March 31, 2019 , and $861 million at December 31, 2018 , which includes a fair value derivative adjustment of $338 million and 452 million , respectively. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other 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. 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 2018 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, 2019 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 $ 1,098 $ 54 $ — $ 1,152 $ 1,144 Foreign — 1,534 — 1,534 1,503 Corporate securities — 2,509 30 2,539 2,543 Mortgage-backed securities — 2,494 — 2,494 2,484 States, municipalities, and political subdivisions — 5,521 — 5,521 5,462 Total assets $ 1,098 $ 12,112 $ 30 $ 13,240 $ 13,136 Liabilities: Repurchase agreements $ — $ 1,419 $ — $ 1,419 $ 1,419 Short-term debt — 512 — 512 509 Long-term debt — 12,719 — 12,719 12,071 Trust preferred securities — 425 — 425 308 Total liabilities $ — $ 15,075 $ — $ 15,075 $ 14,307 December 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 $ 1,128 $ 54 $ — $ 1,182 $ 1,185 Foreign — 1,542 — 1,542 1,549 Corporate securities — 2,477 31 2,508 2,601 Mortgage-backed securities — 2,486 — 2,486 2,524 States, municipalities, and political subdivisions — 5,541 — 5,541 5,576 Total assets $ 1,128 $ 12,100 $ 31 $ 13,259 $ 13,435 Liabilities: Repurchase agreements $ — $ 1,418 $ — $ 1,418 $ 1,418 Short-term debt — 516 — 516 509 Long-term debt — 12,181 — 12,181 12,087 Trust preferred securities — 409 — 409 308 Total liabilities $ — $ 14,524 $ — $ 14,524 $ 14,322 |
Unpaid losses and loss expenses
Unpaid losses and loss expenses | 3 Months Ended |
Mar. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 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) 2019 2018 Gross unpaid losses and loss expenses – beginning of period $ 62,960 $ 63,179 Reinsurance recoverable on unpaid losses - beginning of period (1) (14,689 ) (14,014 ) Net unpaid losses and loss expenses – beginning of period 48,271 49,165 Net losses and loss expenses incurred in respect of losses occurring in: Current year 4,326 4,358 Prior years (2) (228 ) (256 ) Total 4,098 4,102 Net losses and loss expenses paid in respect of losses occurring in: Current year 785 809 Prior years 3,234 3,433 Total 4,019 4,242 Foreign currency revaluation and other 86 292 Net unpaid losses and loss expenses – end of period 48,436 49,317 Reinsurance recoverable on unpaid losses (1) 14,707 13,822 Gross unpaid losses and loss expenses – end of period $ 63,143 $ 63,139 (1) Net of provision for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $24 million and $47 million for the three months ended March 31, 2019 and 2018 , respectively. Gross and net unpaid losses and loss expenses increased slightly in the quarter as the underlying reserve increase of $557 million was mostly offset by the favorable impact of prior period development and catastrophic and crop insurance payments in the quarter. Prior Period Development Prior period development (PPD) 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. 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. The following table summarizes (favorable) and adverse PPD by segment. Three Months Ended March 31 (in millions of U.S. dollars) Long-tail Short-tail Total 2019 North America Commercial P&C Insurance $ (65 ) $ (66 ) $ (131 ) North America Personal P&C Insurance — (10 ) (10 ) North America Agricultural Insurance — (61 ) (61 ) Overseas General Insurance — (4 ) (4 ) Global Reinsurance (1 ) (7 ) (8 ) Corporate 10 — 10 Total $ (56 ) $ (148 ) $ (204 ) 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 ) Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate. North America Commercial P&C Insurance 2019 For the three months ended March 31, 2019 , net favorable PPD was $131 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 $65 million in long-tail business, primarily from: • Net favorable development of $57 million in professional liability (errors & omissions and cyber), mainly in the 2015 and prior accident years where case activity was less than expected, partially offset by adverse development in the 2016 accident year, which was driven by several large adverse claim developments; • Net favorable development of $31 million in commercial excess and umbrella portfolios, driven by the 2013 and prior accident years, where case emergence was less than expected and greater weight was given to experience-based methods; this was partially offset by higher than expected claim activity in the 2015, 2016, and 2018 accident years which led to reserve strengthening in those years; • Net favorable development of $30 million in our construction workers' compensation lines, impacting accident years 2015 and prior, and was driven by both lower than expected reported development and related favorable updates to development patterns used in our loss projection methods; • Net adverse development of $50 million from the aggregation of general liability and automobile liability coverages within construction and wholesale portfolios, mainly impacting the 2013 through 2018 accident years, and largely the result of higher than expected reported loss development; and • The remaining $3 million of adverse development was due to several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. • Net favorable development of $66 million in short-tail business, primarily from: • Net favorable development of $49 million in surety business, mainly in the 2017 accident year, driven by lower than expected reported loss activity; and • Net favorable development of $17 million was due to several underlying favorable and adverse movements, mainly driven by favorable development in A&H lines, primarily in accident years 2015 through 2017. 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. North America Personal P&C Insurance 2019 For the three months ended March 31, 2019 , net favorable PPD was $10 million in homeowners and valuables reflecting favorable claim development of $132 million on the 2017 and 2018 natural catastrophes mostly offset by adverse development of $122 million for the 2018 accident year, due to elevated non-catastrophe activity. 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. North America Agricultural Insurance For the three months ended March 31, 2019 and 2018 , net favorable PPD was $61 million and $76 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., 2019 results based on crop yield results at year-end 2018). Overseas General Insurance 2019 For the three months ended March 31, 2019 , net favorable PPD was $4 million , comprising of $3 million of adverse claim development on the 2018 natural catastrophes, and $7 million of favorable development, which was the net result of several underlying favorable and adverse movements, none of which were significant individually or in the aggregate. 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. Global Reinsurance 2019 For the three months ended March 31, 2019 , net favorable PPD was $8 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 $7 million in short-tail business, primarily from: • Favorable development of $12 million , principally driven by marine, energy and surety business primarily from a favorable court ruling on an open claim; and • Adverse development of $5 million in property catastrophe lines related to the 2018 natural catastrophes. 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. Corporate For the three months ended March 31, 2019 and 2018 , adverse development was $10 million for both periods, principally related to unallocated loss adjustment expenses due to run-off operating expenses paid and incurred. |
Commitments, contingencies, and
Commitments, contingencies, and guarantees | 3 Months Ended |
Mar. 31, 2019 | |
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 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 (principally GMIB) 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 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 books 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, 2019 December 31, 2018 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) $ 9 $ (28 ) $ 2,559 $ 15 $ (19 ) $ 2,185 Cross-currency swaps OA / (AP) — — 45 — — 45 Interest rate swaps OA / (AP) — (195 ) 5,250 — (115 ) 5,250 Options/Futures contracts on notes, bonds, and equities OA / (AP) 6 (24 ) 1,080 13 (19 ) 1,046 Convertible securities (1) FM AFS / ES 8 — 9 9 — 11 TBAs FM AFS — — — 6 — 6 $ 23 $ (247 ) $ 8,943 $ 43 $ (153 ) $ 8,543 Other derivative instruments: Futures contracts on equities (2) OA / (AP) $ — $ (12 ) $ 537 $ 23 $ — $ 507 Other OA / (AP) 7 — 184 2 — 74 $ 7 $ (12 ) $ 721 $ 25 $ — $ 581 GLB (3) (AP) / (FPB) $ — $ (741 ) $ 1,458 $ — $ (861 ) $ 1,750 (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, 2019 and December 31, 2018 , derivative liabilities of $234 million and $95 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. 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) 2019 2018 Investment and embedded derivative instruments: Foreign currency forward contracts $ (15 ) $ 4 Interest rate swaps (80 ) — All other futures contracts, options, and equities (36 ) 13 Convertible securities (1) 1 — Total investment and embedded derivative instruments $ (130 ) $ 17 GLB and other derivative instruments: GLB (2) $ 114 $ 38 Futures contracts on equities (3) (63 ) 22 Other (1 ) 2 Total GLB and other derivative instruments $ 50 $ 62 $ (80 ) $ 79 (1) Includes embedded derivatives. (2) Excludes foreign exchange gains (losses) related to GLB. (3) Related to GMDB and GLB blocks of business. b) 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 our 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. Interest rate swaps An interest rate swap is a contract between two counterparties in which interest payments are made based on a notional principal amount, which itself is never paid or received. Under the terms of an interest rate swap, one counterparty makes interest payments based on a fixed interest rate and the other counterparty’s payments are based on a floating rate. Interest rate swap contracts are used occasionally in our investment portfolio as protection against unexpected shifts in interest rates, which would affect the fair value of the fixed maturity portfolio. By using interest rate swaps in the portfolio, the overall duration or interest rate sensitivity of the portfolio can be impacted. 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 arise principally from changes in expected losses allocated to expected future premiums. 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 U.S. and/or international 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. To mitigate adverse changes in the capital markets, we maintain positions in exchange-traded equity futures contracts, as noted under section "(ii) Futures" above. These futures increase in fair value when the S&P 500 index decreases (and decrease in fair value when the S&P 500 index increases). The net impact of gains or losses related to changes in fair value of the GLB liability and the exchange-traded equity futures are included in Net realized gains (losses). c) Securities lending and 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. 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 2019 2018 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 846 $ 756 U.S. Treasury and agency 60 64 Foreign 655 795 Corporate securities 29 15 Mortgage-backed securities 47 45 Equity securities 224 251 $ 1,861 $ 1,926 Gross amount of recognized liability for securities lending payable $ 1,861 $ 1,926 At March 31, 2019 and December 31, 2018 , our repurchase agreement obligations of $1,419 million and $1,418 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, 2019 December 31, 2018 Up to 30 Days Greater than 90 Days Total 30-90 Days Greater than 90 Days Total (in millions of U.S. dollars) Collateral pledged under repurchase agreements: U.S. Treasury and agency $ 255 $ 9 $ 264 $ — $ 259 $ 259 Mortgage-backed securities 330 884 1,214 496 713 1,209 $ 585 $ 893 $ 1,478 $ 496 $ 972 $ 1,468 Gross amount of recognized liabilities for repurchase agreements $ 1,419 $ 1,418 Difference (1) $ 59 $ 50 (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, 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. d) Fixed maturities At March 31, 2019 , we have commitments to purchase fixed income securities of $792 million over the next several years. e) Other investments At March 31, 2019 , included in Other investments in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $4.2 billion. In connection with these investments, we have commitments that may require funding of up to $3.6 billion over the next several years. f) Income Taxes At March 31, 2019 , $14 million of unrecognized tax benefits remain outstanding. It is reasonably possible that over the next twelve months, that the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations by taxing authorities and the lapses of statutes of limitations. With few exceptions, Chubb is no longer subject to 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, 2019 | |
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 respective vesting period, which is also the requisite service period. On February 28, 2019 , Chubb granted 2,073,712 stock options with a weighted-average grant date fair value of $18.79 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 restricted stock awards granted comprise target awards and premium awards that cliff vest at the end of a 3-year performance period based on both 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 awards are subject to 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 28, 2019 , Chubb granted 1,078,247 service-based restricted stock awards, 357,463 service-based restricted stock units, and 212,059 performance-based stock awards to employees and officers with a grant date fair value of $133.90 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, 2019 | |
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, 2019 , our Common Shares had a par value of CHF 24.15 per share. At our May 2018 and 2017 annual general meetings, our shareholders approved an annual dividend for the following year of up to $2.92 per share and $2.84 per share, respectively, which was paid in four quarterly installments of $0.73 per share and $0.71 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, 2019 and 2018 were $0.73 (CHF 0.72 ) and $0.71 (CHF 0.66 ), 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, 2019 , 21,604,659 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. Chubb Limited securities repurchase authorization 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. In December 2018, our Board authorized the repurchase of up to $1.5 billion of Chubb's Common Shares from December 1, 2018 through December 31, 2019. 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 April 1, 2019 through May 1, 2019 (in millions of U.S. dollars, except share data) 2019 2018 Number of shares repurchased 2,753,754 — 550,000 Cost of shares repurchased $ 367 $ — $ 77 Repurchase authorization remaining at end of period $ 1,112 $ 1,000 $ 1,035 |
Postretirement benefits
Postretirement benefits | 3 Months Ended |
Mar. 31, 2019 | |
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 Benefit Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 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 $ 12 $ 3 $ 14 $ 3 $ — $ — Non-service cost: Interest cost 30 7 26 7 1 1 Expected return on plan assets (47 ) (11 ) (53 ) (13 ) (1 ) (1 ) Amortization of prior service cost — — — — (20 ) (21 ) Total non-service (benefit) cost (17 ) (4 ) (27 ) (6 ) (20 ) (21 ) Net periodic (benefit) cost $ (5 ) $ (1 ) $ (13 ) $ (3 ) $ (20 ) $ (21 ) The service and non-service cost components of net periodic (benefit) cost reflected in the Consolidated statements of operations were as follows: Pension Benefit Plans Other Postretirement Benefit Plans Three Months Ended March 31 2019 2018 2019 2018 (in millions of U.S. dollars) Service Cost: Losses and loss expenses $ 2 $ 2 $ — $ — Administrative expenses 13 15 — — Total service cost 15 17 — — Non-service Cost: Losses and loss expenses (2 ) (3 ) (2 ) (1 ) Administrative expenses (19 ) (30 ) (18 ) (20 ) Total non-service (benefit) cost (21 ) (33 ) (20 ) (21 ) Net periodic (benefit) cost $ (6 ) $ (16 ) $ (20 ) $ (21 ) |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2019 | |
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 (loss), include Net investment income (loss), 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, 2019, underwriting income in our North America Agricultural Insurance segment was $73 million . This amount includes $1 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) in the Corporate column below. For the Life Insurance segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance underwriting income. For example, for the three months ended March 31, 2019, Life Insurance underwriting income of $75 million includes Net investment income of $89 million and gains from fair value changes in separate account assets of $30 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: For the Three Months Ended March 31, 2019 (in millions of U.S. dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated Net premiums written $ 2,951 $ 1,056 $ 130 $ 2,395 $ 202 $ 579 $ — $ 7,313 Net premiums earned 3,085 1,154 55 2,114 168 561 — 7,137 Losses and loss expenses 1,973 757 (27 ) 1,106 76 202 11 4,098 Policy benefits — — — — — 196 — 196 Policy acquisition costs 459 231 7 596 43 128 — 1,464 Administrative expenses 240 68 1 249 10 79 63 710 Underwriting income (loss) 413 98 74 163 39 (44 ) (74 ) 669 Net investment income (loss) 510 64 10 144 56 89 (37 ) 836 Other (income) expense (5 ) — — 4 (9 ) (40 ) 11 (39 ) Amortization expense of purchased intangibles — 3 7 11 — — 55 76 Segment income (loss) $ 928 $ 159 $ 77 $ 292 $ 104 $ 85 $ (177 ) $ 1,468 Net realized gains (losses) including OTTI (97 ) (97 ) Interest expense 140 140 Chubb integration expenses 3 3 Income tax expense 188 188 Net income (loss) $ (605 ) $ 1,040 For the Three Months Ended March 31, 2018 (in millions of U.S. dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated 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 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, 2019 | |
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) 2019 2018 Numerator: Net income $ 1,040 $ 1,082 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 458,805,185 465,703,240 Denominator for diluted earnings per share: Share-based compensation plans 2,731,755 3,770,351 Weighted-average shares outstanding and assumed conversions 461,536,940 469,473,591 Basic earnings per share $ 2.27 $ 2.32 Diluted earnings per share $ 2.25 $ 2.30 Potential anti-dilutive share conversions 4,343,204 2,116,188 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, 2019 | |
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, 2019 and December 31, 2018 , and for the three months ended March 31, 2019 and 2018 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, 2019 (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 $ — $ 229 $ 103,031 $ — $ 103,260 Cash (1) 2 71 2,220 (1,022 ) 1,271 Restricted cash — — 122 — 122 Insurance and reinsurance balances receivable — — 11,491 (1,665 ) 9,826 Reinsurance recoverable on losses and loss expenses — — 26,232 (10,095 ) 16,137 Reinsurance recoverable on policy benefits — — 306 (103 ) 203 Value of business acquired — — 289 — 289 Goodwill and other intangible assets — — 21,419 — 21,419 Investments in subsidiaries 45,648 51,996 — (97,644 ) — Due from subsidiaries and affiliates, net 7,358 — 616 (7,974 ) — Other assets 9 488 20,170 (1,847 ) 18,820 Total assets $ 53,017 $ 52,784 $ 185,896 $ (120,350 ) $ 171,347 Liabilities Unpaid losses and loss expenses $ — $ — $ 72,998 $ (9,855 ) $ 63,143 Unearned premiums — — 17,039 (1,130 ) 15,909 Future policy benefits — — 5,655 (103 ) 5,552 Due to subsidiaries and affiliates, net — 7,974 — (7,974 ) — Affiliated notional cash pooling programs (1) 331 691 — (1,022 ) — Repurchase agreements — — 1,419 — 1,419 Short-term debt — 500 9 — 509 Long-term debt — 12,070 1 — 12,071 Trust preferred securities — 308 — — 308 Other liabilities 331 1,894 20,478 (2,622 ) 20,081 Total liabilities 662 23,437 117,599 (22,706 ) 118,992 Total shareholders’ equity 52,355 29,347 68,297 (97,644 ) 52,355 Total liabilities and shareholders’ equity $ 53,017 $ 52,784 $ 185,896 $ (120,350 ) $ 171,347 (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, 2019 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 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 $ — $ 214 $ 100,754 $ — $ 100,968 Cash (1) 1 2 1,896 (652 ) 1,247 Restricted cash — — 93 — 93 Insurance and reinsurance balances receivable — — 11,861 (1,786 ) 10,075 Reinsurance recoverable on losses and loss expenses — — 26,422 (10,429 ) 15,993 Reinsurance recoverable on policy benefits — — 306 (104 ) 202 Value of business acquired — — 295 — 295 Goodwill and other intangible assets — — 21,414 — 21,414 Investments in subsidiaries 43,531 50,209 — (93,740 ) — Due from subsidiaries and affiliates, net 7,074 — 598 (7,672 ) — Other assets 3 1,007 18,102 (1,628 ) 17,484 Total assets $ 50,609 $ 51,432 $ 181,741 $ (116,011 ) $ 167,771 Liabilities Unpaid losses and loss expenses $ — $ — $ 72,857 $ (9,897 ) $ 62,960 Unearned premiums — — 16,611 (1,079 ) 15,532 Future policy benefits — — 5,610 (104 ) 5,506 Due to subsidiaries and affiliates, net — 7,672 — (7,672 ) — Affiliated notional cash pooling programs (1) 35 617 — (652 ) — Repurchase agreements — — 1,418 — 1,418 Short-term debt — 500 9 — 509 Long-term debt — 12,086 1 — 12,087 Trust preferred securities — 308 — — 308 Other liabilities 262 2,545 19,199 (2,867 ) 19,139 Total liabilities 297 23,728 115,705 (22,271 ) 117,459 Total shareholders’ equity 50,312 27,704 66,036 (93,740 ) 50,312 Total liabilities and shareholders’ equity $ 50,609 $ 51,432 $ 181,741 $ (116,011 ) $ 167,771 (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, 2018 , 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, 2019 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 $ — $ — $ 7,313 $ — $ 7,313 Net premiums earned — — 7,137 — 7,137 Net investment income 1 (4 ) 839 — 836 Equity in earnings of subsidiaries 990 759 — (1,749 ) — Net realized gains (losses) including OTTI 1 (13 ) (85 ) — (97 ) Losses and loss expenses — — 4,098 — 4,098 Policy benefits — — 196 — 196 Policy acquisition costs and administrative expenses 20 (15 ) 2,169 — 2,174 Interest (income) expense (66 ) 185 21 — 140 Other (income) expense (6 ) 3 (36 ) — (39 ) Amortization of purchased intangibles — — 76 — 76 Chubb integration expenses — 2 1 — 3 Income tax expense (benefit) 4 (42 ) 226 — 188 Net income $ 1,040 $ 609 $ 1,140 $ (1,749 ) $ 1,040 Comprehensive income $ 2,718 $ 1,941 $ 2,788 $ (4,729 ) $ 2,718 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 Statement of Cash Flows For the Three Months Ended March 31, 2019 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 (used for) operating activities $ 307 $ (163 ) $ 1,378 $ (200 ) $ 1,322 Cash flows from investing activities Purchases of fixed maturities available for sale — (3 ) (5,558 ) — (5,561 ) Purchases of fixed maturities held to maturity — — (1 ) — (1 ) Purchases of equity securities — — (49 ) — (49 ) Sales of fixed maturities available for sale — — 3,293 — 3,293 Sales of equity securities — — 60 — 60 Maturities and redemptions of fixed maturities available for sale — 6 1,825 — 1,831 Maturities and redemptions of fixed maturities held to maturity — — 280 — 280 Net change in short-term investments — (3 ) (36 ) — (39 ) Net derivative instruments settlements — (28 ) (330 ) — (358 ) Private equity contributions — — (410 ) — (410 ) Private equity distributions — — 368 — 368 Capital contribution — (110 ) — 110 — Other — (12 ) (75 ) — (87 ) Net cash flows used for investing activities — (150 ) (633 ) 110 (673 ) Cash flows from financing activities Dividends paid on Common Shares (336 ) — — — (336 ) Common Shares repurchased — — (367 ) — (367 ) Proceeds from issuance of repurchase agreements — — 471 — 471 Repayment of repurchase agreements — — (470 ) — (470 ) Proceeds from share-based compensation plans — — 35 — 35 Dividend to parent company — — (200 ) 200 — Advances (to) from affiliates (266 ) 308 (42 ) — — Capital contribution — — 110 (110 ) — Net proceeds from affiliated notional cash pooling programs (1) 296 74 — (370 ) — Policyholder contract deposits — — 115 — 115 Policyholder contract withdrawals — — (78 ) — (78 ) Net cash flows from (used for) financing activities (306 ) 382 (426 ) (280 ) (630 ) Effect of foreign currency rate changes on cash and restricted cash — — 34 — 34 Net increase in cash and restricted cash 1 69 353 (370 ) 53 Cash and restricted cash – beginning of period (1) 1 2 1,989 (652 ) 1,340 Cash and restricted cash – end of period (1) $ 2 $ 71 $ 2,342 $ (1,022 ) $ 1,393 (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, 2019 and December 31, 2018 , 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, 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 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. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | 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 9 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 2018 Form 10-K. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash 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) 2019 2018 Cash $ 1,271 $ 1,247 Restricted cash 122 93 Total cash and restricted cash shown in the Consolidated statements of cash flows $ 1,393 $ 1,340 |
Accounting guidance adopted in 2019 | d) Accounting guidance adopted in 2019 Premium Amortization on Purchased Callable Debt Securities Effective January 1, 2019, we adopted new accounting guidance on "Premium Amortization on Purchased Callable Debt Securities" for bonds held at a premium on a modified retrospective basis. The guidance requires the premium to be amortized to the earliest call date. As a result, we recorded a cumulative effect adjustment to decrease beginning retained earnings by $12 million after-tax ( $15 million pre-tax). Securities held at a discount did not require an accounting change. Lease Accounting Effective for the quarter ended March 31, 2019, we adopted new lease accounting guidance and elected to utilize a modified retrospective approach which allowed us to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings for 2019, with no adjustment to prior periods presented. The cumulative effect adjustment to the opening balance of retained earnings was zero. Our leases consist principally of real estate operating leases that are amortized on a straight-line basis over the term of the lease. The adoption of the updated guidance resulted in our recognizing a right-of-use asset of $608 million , which was recorded within Other assets, and a lease liability of $653 million , which was recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheet as well as de-recognizing the liability for deferred rent that was required under the previous guidance. The adoption of the new guidance did not have a material effect on our results of operations, financial condition or liquidity. |
Accounting guidance not yet adopted | Refer to the 2018 Form 10-K for information on accounting guidance not yet adopted. |
Fair value measurements Fair Va
Fair value measurements Fair Value Measurement Policy (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | 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. |
General General (Tables)
General General (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) 2019 2018 Cash $ 1,271 $ 1,247 Restricted cash 122 93 Total cash and restricted cash shown in the Consolidated statements of cash flows $ 1,393 $ 1,340 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 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 $ 3,760 $ 50 $ (19 ) $ 3,791 $ — Foreign 21,796 658 (112 ) 22,342 — Corporate securities 27,519 476 (170 ) 27,825 (5 ) Mortgage-backed securities 16,369 173 (112 ) 16,430 (1 ) States, municipalities, and political subdivisions 10,180 123 (28 ) 10,275 — $ 79,624 $ 1,480 $ (441 ) $ 80,663 $ (6 ) Held to maturity U.S. Treasury and agency $ 1,144 $ 11 $ (3 ) $ 1,152 $ — Foreign 1,503 34 (3 ) 1,534 — Corporate securities 2,543 30 (34 ) 2,539 — Mortgage-backed securities 2,484 16 (6 ) 2,494 — States, municipalities, and political subdivisions 5,462 67 (8 ) 5,521 — $ 13,136 $ 158 $ (54 ) $ 13,240 $ — December 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 $ 4,158 $ 30 $ (43 ) $ 4,145 $ — Foreign 21,370 395 (349 ) 21,416 — Corporate securities 27,183 150 (750 ) 26,583 (6 ) Mortgage-backed securities 15,758 66 (284 ) 15,540 (1 ) States, municipalities, and political subdivisions 10,854 49 (117 ) 10,786 — $ 79,323 $ 690 $ (1,543 ) $ 78,470 $ (7 ) Held to maturity U.S. Treasury and agency $ 1,185 $ 8 $ (11 ) $ 1,182 $ — Foreign 1,549 11 (18 ) 1,542 — Corporate securities 2,601 11 (104 ) 2,508 — Mortgage-backed securities 2,524 5 (43 ) 2,486 — States, municipalities, and political subdivisions 5,576 16 (51 ) 5,541 — $ 13,435 $ 51 $ (227 ) $ 13,259 $ — |
Schedule Of Amortized Cost and Fair Value of Available-for-sale Securities and Related OTTI Recognized in AOCI | March 31, 2019 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 $ 3,760 $ 50 $ (19 ) $ 3,791 $ — Foreign 21,796 658 (112 ) 22,342 — Corporate securities 27,519 476 (170 ) 27,825 (5 ) Mortgage-backed securities 16,369 173 (112 ) 16,430 (1 ) States, municipalities, and political subdivisions 10,180 123 (28 ) 10,275 — $ 79,624 $ 1,480 $ (441 ) $ 80,663 $ (6 ) Held to maturity U.S. Treasury and agency $ 1,144 $ 11 $ (3 ) $ 1,152 $ — Foreign 1,503 34 (3 ) 1,534 — Corporate securities 2,543 30 (34 ) 2,539 — Mortgage-backed securities 2,484 16 (6 ) 2,494 — States, municipalities, and political subdivisions 5,462 67 (8 ) 5,521 — $ 13,136 $ 158 $ (54 ) $ 13,240 $ — December 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 $ 4,158 $ 30 $ (43 ) $ 4,145 $ — Foreign 21,370 395 (349 ) 21,416 — Corporate securities 27,183 150 (750 ) 26,583 (6 ) Mortgage-backed securities 15,758 66 (284 ) 15,540 (1 ) States, municipalities, and political subdivisions 10,854 49 (117 ) 10,786 — $ 79,323 $ 690 $ (1,543 ) $ 78,470 $ (7 ) Held to maturity U.S. Treasury and agency $ 1,185 $ 8 $ (11 ) $ 1,182 $ — Foreign 1,549 11 (18 ) 1,542 — Corporate securities 2,601 11 (104 ) 2,508 — Mortgage-backed securities 2,524 5 (43 ) 2,486 — States, municipalities, and political subdivisions 5,576 16 (51 ) 5,541 — $ 13,435 $ 51 $ (227 ) $ 13,259 $ — |
Schedule Of Fixed Maturities By Contractual Maturity | The following table presents fixed maturities by contractual maturity: March 31 December 31 2019 2018 (in millions of U.S. dollars) Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Due in 1 year or less $ 3,776 $ 3,785 $ 3,569 $ 3,568 Due after 1 year through 5 years 27,308 27,593 27,134 27,005 Due after 5 years through 10 years 23,367 23,690 24,095 23,543 Due after 10 years 8,804 9,165 8,767 8,814 63,255 64,233 63,565 62,930 Mortgage-backed securities 16,369 16,430 15,758 15,540 $ 79,624 $ 80,663 $ 79,323 $ 78,470 Held to maturity Due in 1 year or less $ 614 $ 616 $ 536 $ 537 Due after 1 year through 5 years 3,111 3,125 3,122 3,106 Due after 5 years through 10 years 4,246 4,287 4,468 4,407 Due after 10 years 2,681 2,718 2,785 2,723 10,652 10,746 10,911 10,773 Mortgage-backed securities 2,484 2,494 2,524 2,486 $ 13,136 $ 13,240 $ 13,435 $ 13,259 |
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) 2019 2018 Fixed maturities: OTTI on fixed maturities, gross and net $ (13 ) $ (1 ) Gross realized gains excluding OTTI 27 66 Gross realized losses excluding OTTI (58 ) (88 ) Total fixed maturities (44 ) (23 ) Equity securities: Gross realized gains excluding OTTI 64 10 Gross realized losses excluding OTTI (6 ) (21 ) Total equity securities 58 (11 ) Other investments (44 ) 29 Foreign exchange gains (losses) 13 (77 ) Investment and embedded derivative instruments (130 ) 17 Fair value adjustments on insurance derivative 114 38 S&P futures (63 ) 22 Other derivative instruments (1 ) 2 Other — 1 Net realized gains (losses) (pre-tax) $ (97 ) $ (2 ) |
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) 2019 2018 Balance of credit losses related to securities still held – beginning of period $ 34 $ 22 Additions where no OTTI was previously recorded 6 — Reductions for securities sold during the period (8 ) (7 ) Balance of credit losses related to securities still held – end of period $ 32 $ 15 |
Gain (Loss) on Securities [Table Text Block] | equity securities and other investments, including both sales of securities and unrealized gains and losses from changes in fair value: Three Months Ended March 31 2019 2018 (in millions of U.S. dollars) Equity Securities Other Investments Total Equity Securities Other Investments Total Net gains (losses) recognized during the period $ 58 $ (44 ) $ 14 $ (11 ) $ 29 $ 18 Less: Net gains (losses) recognized from sales of securities 1 (2 ) (1 ) 10 — 10 Unrealized gains (losses) recognized for securities still held at reporting date $ 57 $ (42 ) $ 15 $ (21 ) $ 29 $ 8 |
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, 2019 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 $ 68 $ — $ 2,298 $ (22 ) $ 2,366 $ (22 ) Foreign 1,346 (26 ) 4,228 (89 ) 5,574 (115 ) Corporate securities 3,649 (62 ) 6,206 (142 ) 9,855 (204 ) Mortgage-backed securities 388 (1 ) 8,974 (117 ) 9,362 (118 ) States, municipalities, and political subdivisions 93 — 4,867 (36 ) 4,960 (36 ) Total fixed maturities $ 5,544 $ (89 ) $ 26,573 $ (406 ) $ 32,117 $ (495 ) 0 – 12 Months Over 12 Months Total December 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 $ 523 $ (4 ) $ 2,859 $ (50 ) $ 3,382 $ (54 ) Foreign 6,764 (208 ) 5,349 (159 ) 12,113 (367 ) Corporate securities 16,538 (599 ) 4,873 (255 ) 21,411 (854 ) Mortgage-backed securities 6,103 (98 ) 6,913 (229 ) 13,016 (327 ) States, municipalities, and political subdivisions 5,024 (44 ) 7,768 (124 ) 12,792 (168 ) Total fixed maturities $ 34,952 $ (953 ) $ 27,762 $ (817 ) $ 62,714 $ (1,770 ) |
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) 2019 2018 Trust funds $ 13,943 $ 13,988 Deposits with U.S. regulatory authorities 2,904 2,405 Deposits with non-U.S. regulatory authorities 2,851 2,531 Assets pledged under repurchase agreements 1,478 1,468 Other pledged assets 942 692 Total $ 22,118 $ 21,084 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available for sale U.S. Treasury and agency $ 3,168 $ 623 $ — $ 3,791 Foreign — 21,982 360 22,342 Corporate securities — 26,483 1,342 27,825 Mortgage-backed securities — 16,352 78 16,430 States, municipalities, and political subdivisions — 10,275 — 10,275 3,168 75,715 1,780 80,663 Equity securities 766 — 55 821 Short-term investments 1,785 1,293 — 3,078 Other investments (1) 411 342 11 764 Securities lending collateral — 1,861 — 1,861 Investment derivative instruments 15 — — 15 Other derivative instruments 7 — — 7 Separate account assets 2,991 139 — 3,130 Total assets measured at fair value (1) $ 9,143 $ 79,350 $ 1,846 $ 90,339 Liabilities: Investment derivative instruments $ 52 $ 195 $ — $ 247 Other derivative instruments 12 — — 12 GLB (2) — — 338 338 Total liabilities measured at fair value $ 64 $ 195 $ 338 $ 597 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 4,464 million and other investments of $ 91 million at March 31, 2019 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, 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 $ 3,400 $ 745 $ — $ 4,145 Foreign — 21,071 345 21,416 Corporate securities — 25,284 1,299 26,583 Mortgage-backed securities — 15,479 61 15,540 States, municipalities, and political subdivisions — 10,786 — 10,786 3,400 73,365 1,705 78,470 Equity securities 713 — 57 770 Short-term investments 1,575 1,440 1 3,016 Other investments (1) 381 303 11 695 Securities lending collateral — 1,926 — 1,926 Investment derivative instruments 28 — — 28 Other derivative instruments 25 — — 25 Separate account assets 2,686 137 — 2,823 Total assets measured at fair value (1) $ 8,808 $ 77,171 $ 1,774 $ 87,753 Liabilities: Investment derivative instruments $ 38 $ 115 $ — $ 153 GLB (2) — — 452 452 Total liabilities measured at fair value $ 38 $ 115 $ 452 $ 605 (1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,244 million and other investments of $95 million at December 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. |
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 2019 2018 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 2 to 9 Years $ 591 $ 188 $ 596 $ 193 Real Assets 2 to 11 Years 762 449 704 362 Distressed 2 to 7 Years 263 98 296 105 Private Credit 3 to 8 Years 134 291 147 310 Traditional 2 to 14 Years 2,331 2,573 2,362 2,735 Vintage 1 to 2 Years 125 43 56 — Investment funds Not Applicable 258 — 83 — $ 4,464 $ 3,642 $ 4,244 $ 3,705 |
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. The majority of our fixed maturities classified as Level 3 used external pricing when markets are less liquid due to the lack of market inputs (i.e., stale pricing, broker quotes). (in millions of U.S. dollars, except for percentages) Fair Value Valuation Technique Significant Unobservable Inputs Ranges March 31, 2019 December 31, 2018 GLB (1) $ 338 $ 452 Actuarial model Lapse rate 3% – 32% Annuitization rate 0% – 42% (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 GLB (1) March 31, 2019 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 345 $ 1,299 $ 61 $ 57 $ 1 $ 11 $ 452 Transfers into Level 3 3 5 — — — — — Transfers out of Level 3 (15 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange 6 4 — 1 — — — Net Realized Gains/Losses (1 ) 1 — (2 ) — — (114 ) Purchases 53 128 18 9 — — — Sales (5 ) (37 ) — (10 ) — — — Settlements (26 ) (58 ) (1 ) — (1 ) — — Balance – end of period $ 360 $ 1,342 $ 78 $ 55 $ — $ 11 $ 338 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ (1 ) $ — $ — $ (114 ) (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 $741 million at March 31, 2019 , and $861 million at December 31, 2018 , which includes a fair value derivative adjustment of $338 million and 452 million , respectively. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other 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. |
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 GLB (1) March 31, 2019 Foreign Corporate MBS (in millions of U.S. dollars) Balance – beginning of period $ 345 $ 1,299 $ 61 $ 57 $ 1 $ 11 $ 452 Transfers into Level 3 3 5 — — — — — Transfers out of Level 3 (15 ) — — — — — — Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange 6 4 — 1 — — — Net Realized Gains/Losses (1 ) 1 — (2 ) — — (114 ) Purchases 53 128 18 9 — — — Sales (5 ) (37 ) — (10 ) — — — Settlements (26 ) (58 ) (1 ) — (1 ) — — Balance – end of period $ 360 $ 1,342 $ 78 $ 55 $ — $ 11 $ 338 Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date $ — $ — $ — $ (1 ) $ — $ — $ (114 ) (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 $741 million at March 31, 2019 , and $861 million at December 31, 2018 , which includes a fair value derivative adjustment of $338 million and 452 million , respectively. Assets Liabilities Three Months Ended Available-for-Sale Debt Securities Equity Short-term investments Other 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. |
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, 2019 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 $ 1,098 $ 54 $ — $ 1,152 $ 1,144 Foreign — 1,534 — 1,534 1,503 Corporate securities — 2,509 30 2,539 2,543 Mortgage-backed securities — 2,494 — 2,494 2,484 States, municipalities, and political subdivisions — 5,521 — 5,521 5,462 Total assets $ 1,098 $ 12,112 $ 30 $ 13,240 $ 13,136 Liabilities: Repurchase agreements $ — $ 1,419 $ — $ 1,419 $ 1,419 Short-term debt — 512 — 512 509 Long-term debt — 12,719 — 12,719 12,071 Trust preferred securities — 425 — 425 308 Total liabilities $ — $ 15,075 $ — $ 15,075 $ 14,307 December 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 $ 1,128 $ 54 $ — $ 1,182 $ 1,185 Foreign — 1,542 — 1,542 1,549 Corporate securities — 2,477 31 2,508 2,601 Mortgage-backed securities — 2,486 — 2,486 2,524 States, municipalities, and political subdivisions — 5,541 — 5,541 5,576 Total assets $ 1,128 $ 12,100 $ 31 $ 13,259 $ 13,435 Liabilities: Repurchase agreements $ — $ 1,418 $ — $ 1,418 $ 1,418 Short-term debt — 516 — 516 509 Long-term debt — 12,181 — 12,181 12,087 Trust preferred securities — 409 — 409 308 Total liabilities $ — $ 14,524 $ — $ 14,524 $ 14,322 |
Unpaid losses and loss expens_2
Unpaid losses and loss expenses Unpaid losses and loss expenses (Tables) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | 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) 2019 2018 Gross unpaid losses and loss expenses – beginning of period $ 62,960 $ 63,179 Reinsurance recoverable on unpaid losses - beginning of period (1) (14,689 ) (14,014 ) Net unpaid losses and loss expenses – beginning of period 48,271 49,165 Net losses and loss expenses incurred in respect of losses occurring in: Current year 4,326 4,358 Prior years (2) (228 ) (256 ) Total 4,098 4,102 Net losses and loss expenses paid in respect of losses occurring in: Current year 785 809 Prior years 3,234 3,433 Total 4,019 4,242 Foreign currency revaluation and other 86 292 Net unpaid losses and loss expenses – end of period 48,436 49,317 Reinsurance recoverable on unpaid losses (1) 14,707 13,822 Gross unpaid losses and loss expenses – end of period $ 63,143 $ 63,139 (1) Net of provision for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $24 million and $47 million for the three months ended March 31, 2019 and 2018 , 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 2019 North America Commercial P&C Insurance $ (65 ) $ (66 ) $ (131 ) North America Personal P&C Insurance — (10 ) (10 ) North America Agricultural Insurance — (61 ) (61 ) Overseas General Insurance — (4 ) (4 ) Global Reinsurance (1 ) (7 ) (8 ) Corporate 10 — 10 Total $ (56 ) $ (148 ) $ (204 ) 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 ) | ||
Prior Year Claims and Claims Adjustment Expense | [1] | $ (228) | $ (256) |
[1] | Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $24 million and $47 million for the three months ended March 31, 2019 and 2018, respectively. |
Commitments, contingencies, a_2
Commitments, contingencies, and guarantees (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 December 31, 2018 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) $ 9 $ (28 ) $ 2,559 $ 15 $ (19 ) $ 2,185 Cross-currency swaps OA / (AP) — — 45 — — 45 Interest rate swaps OA / (AP) — (195 ) 5,250 — (115 ) 5,250 Options/Futures contracts on notes, bonds, and equities OA / (AP) 6 (24 ) 1,080 13 (19 ) 1,046 Convertible securities (1) FM AFS / ES 8 — 9 9 — 11 TBAs FM AFS — — — 6 — 6 $ 23 $ (247 ) $ 8,943 $ 43 $ (153 ) $ 8,543 Other derivative instruments: Futures contracts on equities (2) OA / (AP) $ — $ (12 ) $ 537 $ 23 $ — $ 507 Other OA / (AP) 7 — 184 2 — 74 $ 7 $ (12 ) $ 721 $ 25 $ — $ 581 GLB (3) (AP) / (FPB) $ — $ (741 ) $ 1,458 $ — $ (861 ) $ 1,750 (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. |
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) 2019 2018 Investment and embedded derivative instruments: Foreign currency forward contracts $ (15 ) $ 4 Interest rate swaps (80 ) — All other futures contracts, options, and equities (36 ) 13 Convertible securities (1) 1 — Total investment and embedded derivative instruments $ (130 ) $ 17 GLB and other derivative instruments: GLB (2) $ 114 $ 38 Futures contracts on equities (3) (63 ) 22 Other (1 ) 2 Total GLB and other derivative instruments $ 50 $ 62 $ (80 ) $ 79 (1) Includes embedded derivatives. (2) Excludes foreign exchange gains (losses) related to GLB. (3) Related to GMDB and GLB blocks of business. |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | 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, 2019 December 31, 2018 Up to 30 Days Greater than 90 Days Total 30-90 Days Greater than 90 Days Total (in millions of U.S. dollars) Collateral pledged under repurchase agreements: U.S. Treasury and agency $ 255 $ 9 $ 264 $ — $ 259 $ 259 Mortgage-backed securities 330 884 1,214 496 713 1,209 $ 585 $ 893 $ 1,478 $ 496 $ 972 $ 1,468 Gross amount of recognized liabilities for repurchase agreements $ 1,419 $ 1,418 Difference (1) $ 59 $ 50 (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. 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 2019 2018 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 846 $ 756 U.S. Treasury and agency 60 64 Foreign 655 795 Corporate securities 29 15 Mortgage-backed securities 47 45 Equity securities 224 251 $ 1,861 $ 1,926 Gross amount of recognized liability for securities lending payable $ 1,861 $ 1,926 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
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 April 1, 2019 through May 1, 2019 (in millions of U.S. dollars, except share data) 2019 2018 Number of shares repurchased 2,753,754 — 550,000 Cost of shares repurchased $ 367 $ — $ 77 Repurchase authorization remaining at end of period $ 1,112 $ 1,000 $ 1,035 |
Postretirement benefits (Tables
Postretirement benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows: Pension Benefit Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 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 $ 12 $ 3 $ 14 $ 3 $ — $ — Non-service cost: Interest cost 30 7 26 7 1 1 Expected return on plan assets (47 ) (11 ) (53 ) (13 ) (1 ) (1 ) Amortization of prior service cost — — — — (20 ) (21 ) Total non-service (benefit) cost (17 ) (4 ) (27 ) (6 ) (20 ) (21 ) Net periodic (benefit) cost $ (5 ) $ (1 ) $ (13 ) $ (3 ) $ (20 ) $ (21 ) The service and non-service cost components of net periodic (benefit) cost reflected in the Consolidated statements of operations were as follows: Pension Benefit Plans Other Postretirement Benefit Plans Three Months Ended March 31 2019 2018 2019 2018 (in millions of U.S. dollars) Service Cost: Losses and loss expenses $ 2 $ 2 $ — $ — Administrative expenses 13 15 — — Total service cost 15 17 — — Non-service Cost: Losses and loss expenses (2 ) (3 ) (2 ) (1 ) Administrative expenses (19 ) (30 ) (18 ) (20 ) Total non-service (benefit) cost (21 ) (33 ) (20 ) (21 ) Net periodic (benefit) cost $ (6 ) $ (16 ) $ (20 ) $ (21 ) |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Operations By Segment | The following tables present the Statement of Operations by segment: For the Three Months Ended March 31, 2019 (in millions of U.S. dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated Net premiums written $ 2,951 $ 1,056 $ 130 $ 2,395 $ 202 $ 579 $ — $ 7,313 Net premiums earned 3,085 1,154 55 2,114 168 561 — 7,137 Losses and loss expenses 1,973 757 (27 ) 1,106 76 202 11 4,098 Policy benefits — — — — — 196 — 196 Policy acquisition costs 459 231 7 596 43 128 — 1,464 Administrative expenses 240 68 1 249 10 79 63 710 Underwriting income (loss) 413 98 74 163 39 (44 ) (74 ) 669 Net investment income (loss) 510 64 10 144 56 89 (37 ) 836 Other (income) expense (5 ) — — 4 (9 ) (40 ) 11 (39 ) Amortization expense of purchased intangibles — 3 7 11 — — 55 76 Segment income (loss) $ 928 $ 159 $ 77 $ 292 $ 104 $ 85 $ (177 ) $ 1,468 Net realized gains (losses) including OTTI (97 ) (97 ) Interest expense 140 140 Chubb integration expenses 3 3 Income tax expense 188 188 Net income (loss) $ (605 ) $ 1,040 For the Three Months Ended March 31, 2018 (in millions of U.S. dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Chubb Consolidated 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 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) 2019 2018 Numerator: Net income $ 1,040 $ 1,082 Denominator: Denominator for basic earnings per share: Weighted-average shares outstanding 458,805,185 465,703,240 Denominator for diluted earnings per share: Share-based compensation plans 2,731,755 3,770,351 Weighted-average shares outstanding and assumed conversions 461,536,940 469,473,591 Basic earnings per share $ 2.27 $ 2.32 Diluted earnings per share $ 2.25 $ 2.30 Potential anti-dilutive share conversions 4,343,204 2,116,188 |
Information provided in conne_2
Information provided in connection with outstanding debt of subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet at March 31, 2019 (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 $ — $ 229 $ 103,031 $ — $ 103,260 Cash (1) 2 71 2,220 (1,022 ) 1,271 Restricted cash — — 122 — 122 Insurance and reinsurance balances receivable — — 11,491 (1,665 ) 9,826 Reinsurance recoverable on losses and loss expenses — — 26,232 (10,095 ) 16,137 Reinsurance recoverable on policy benefits — — 306 (103 ) 203 Value of business acquired — — 289 — 289 Goodwill and other intangible assets — — 21,419 — 21,419 Investments in subsidiaries 45,648 51,996 — (97,644 ) — Due from subsidiaries and affiliates, net 7,358 — 616 (7,974 ) — Other assets 9 488 20,170 (1,847 ) 18,820 Total assets $ 53,017 $ 52,784 $ 185,896 $ (120,350 ) $ 171,347 Liabilities Unpaid losses and loss expenses $ — $ — $ 72,998 $ (9,855 ) $ 63,143 Unearned premiums — — 17,039 (1,130 ) 15,909 Future policy benefits — — 5,655 (103 ) 5,552 Due to subsidiaries and affiliates, net — 7,974 — (7,974 ) — Affiliated notional cash pooling programs (1) 331 691 — (1,022 ) — Repurchase agreements — — 1,419 — 1,419 Short-term debt — 500 9 — 509 Long-term debt — 12,070 1 — 12,071 Trust preferred securities — 308 — — 308 Other liabilities 331 1,894 20,478 (2,622 ) 20,081 Total liabilities 662 23,437 117,599 (22,706 ) 118,992 Total shareholders’ equity 52,355 29,347 68,297 (97,644 ) 52,355 Total liabilities and shareholders’ equity $ 53,017 $ 52,784 $ 185,896 $ (120,350 ) $ 171,347 (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, 2019 , the cash balance of one or more entities was negative; however, the overall Pool balances were positive. Condensed Consolidating Balance Sheet at December 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 $ — $ 214 $ 100,754 $ — $ 100,968 Cash (1) 1 2 1,896 (652 ) 1,247 Restricted cash — — 93 — 93 Insurance and reinsurance balances receivable — — 11,861 (1,786 ) 10,075 Reinsurance recoverable on losses and loss expenses — — 26,422 (10,429 ) 15,993 Reinsurance recoverable on policy benefits — — 306 (104 ) 202 Value of business acquired — — 295 — 295 Goodwill and other intangible assets — — 21,414 — 21,414 Investments in subsidiaries 43,531 50,209 — (93,740 ) — Due from subsidiaries and affiliates, net 7,074 — 598 (7,672 ) — Other assets 3 1,007 18,102 (1,628 ) 17,484 Total assets $ 50,609 $ 51,432 $ 181,741 $ (116,011 ) $ 167,771 Liabilities Unpaid losses and loss expenses $ — $ — $ 72,857 $ (9,897 ) $ 62,960 Unearned premiums — — 16,611 (1,079 ) 15,532 Future policy benefits — — 5,610 (104 ) 5,506 Due to subsidiaries and affiliates, net — 7,672 — (7,672 ) — Affiliated notional cash pooling programs (1) 35 617 — (652 ) — Repurchase agreements — — 1,418 — 1,418 Short-term debt — 500 9 — 509 Long-term debt — 12,086 1 — 12,087 Trust preferred securities — 308 — — 308 Other liabilities 262 2,545 19,199 (2,867 ) 19,139 Total liabilities 297 23,728 115,705 (22,271 ) 117,459 Total shareholders’ equity 50,312 27,704 66,036 (93,740 ) 50,312 Total liabilities and shareholders’ equity $ 50,609 $ 51,432 $ 181,741 $ (116,011 ) $ 167,771 (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, 2018 , 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, 2019 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 $ — $ — $ 7,313 $ — $ 7,313 Net premiums earned — — 7,137 — 7,137 Net investment income 1 (4 ) 839 — 836 Equity in earnings of subsidiaries 990 759 — (1,749 ) — Net realized gains (losses) including OTTI 1 (13 ) (85 ) — (97 ) Losses and loss expenses — — 4,098 — 4,098 Policy benefits — — 196 — 196 Policy acquisition costs and administrative expenses 20 (15 ) 2,169 — 2,174 Interest (income) expense (66 ) 185 21 — 140 Other (income) expense (6 ) 3 (36 ) — (39 ) Amortization of purchased intangibles — — 76 — 76 Chubb integration expenses — 2 1 — 3 Income tax expense (benefit) 4 (42 ) 226 — 188 Net income $ 1,040 $ 609 $ 1,140 $ (1,749 ) $ 1,040 Comprehensive income $ 2,718 $ 1,941 $ 2,788 $ (4,729 ) $ 2,718 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 Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2019 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 (used for) operating activities $ 307 $ (163 ) $ 1,378 $ (200 ) $ 1,322 Cash flows from investing activities Purchases of fixed maturities available for sale — (3 ) (5,558 ) — (5,561 ) Purchases of fixed maturities held to maturity — — (1 ) — (1 ) Purchases of equity securities — — (49 ) — (49 ) Sales of fixed maturities available for sale — — 3,293 — 3,293 Sales of equity securities — — 60 — 60 Maturities and redemptions of fixed maturities available for sale — 6 1,825 — 1,831 Maturities and redemptions of fixed maturities held to maturity — — 280 — 280 Net change in short-term investments — (3 ) (36 ) — (39 ) Net derivative instruments settlements — (28 ) (330 ) — (358 ) Private equity contributions — — (410 ) — (410 ) Private equity distributions — — 368 — 368 Capital contribution — (110 ) — 110 — Other — (12 ) (75 ) — (87 ) Net cash flows used for investing activities — (150 ) (633 ) 110 (673 ) Cash flows from financing activities Dividends paid on Common Shares (336 ) — — — (336 ) Common Shares repurchased — — (367 ) — (367 ) Proceeds from issuance of repurchase agreements — — 471 — 471 Repayment of repurchase agreements — — (470 ) — (470 ) Proceeds from share-based compensation plans — — 35 — 35 Dividend to parent company — — (200 ) 200 — Advances (to) from affiliates (266 ) 308 (42 ) — — Capital contribution — — 110 (110 ) — Net proceeds from affiliated notional cash pooling programs (1) 296 74 — (370 ) — Policyholder contract deposits — — 115 — 115 Policyholder contract withdrawals — — (78 ) — (78 ) Net cash flows from (used for) financing activities (306 ) 382 (426 ) (280 ) (630 ) Effect of foreign currency rate changes on cash and restricted cash — — 34 — 34 Net increase in cash and restricted cash 1 69 353 (370 ) 53 Cash and restricted cash – beginning of period (1) 1 2 1,989 (652 ) 1,340 Cash and restricted cash – end of period (1) $ 2 $ 71 $ 2,342 $ (1,022 ) $ 1,393 (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, 2019 and December 31, 2018 , 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, 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 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. |
General Schedule of Cash and Ca
General Schedule of Cash and Cash Equivalent (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Cash and Cash Equivalents [Line Items] | |||||||
Cash | $ 1,271 | [1] | $ 1,247 | [2] | |||
Restricted cash | [1] | 122 | 93 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 1,393 | $ 1,340 | $ 2,113 | $ 851 | |||
[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, 2019, 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, 2018, 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, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Period Increase (Decrease) | $ 57 |
General Adoption of New Account
General Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 |
Accounting Standards Update 2017-08 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect on Retained Earnings, Net of Tax | $ 12 | |
Cumulative Effect on Retained Earnings, before Tax | 15 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect on Retained Earnings, before Tax | $ 0 | |
Operating Lease, Right-of-Use Asset | $ 608 | |
Operating Lease, Liability | $ 653 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)Security | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Investment [Line Items] | |||
Net unrealized appreciation (depreciation) included in OCI | $ 9 | $ (4) | |
Unrealized appreciation(depreciation) portion of AOCI with OTTI included in AOCI | $ 3 | $ 1 | |
Percentage of mortgage-backed securities represented by investments in US government agency bonds | 82.00% | 81.00% | |
Company Assumed Recovery Rate | 32.00% | ||
Moodys Historical Mean Recovery Rate | 42.00% | ||
Total number of fixed maturities | Security | 30,335 | ||
Number of fixed maturities in an unrealized loss position | Security | 10,095 | ||
Largest single unrealized loss in the fixed maturities | $ 6 | ||
Restricted assets in fixed maturities and short-term investments | 22,000 | $ 21,000 | |
Restricted assets in cash | 122 | $ 93 | |
Corporate securities | |||
Investment [Line Items] | |||
Credit losses recognized in net income | 6 | 0 | |
Mortgage-backed securities | |||
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, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, at amortized cost | $ 79,624 | $ 79,323 |
Available-for-sale,Gross Unrealized Gain | 1,480 | 690 |
Available-for-sale, Gross Unrealized Depreciation | (441) | (1,543) |
Available for sale, Fair Value | 80,663 | 78,470 |
Available for sale, OTTI recognized in AOCI | (6) | (7) |
U.S. Treasury and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, at amortized cost | 3,760 | 4,158 |
Available-for-sale,Gross Unrealized Gain | 50 | 30 |
Available-for-sale, Gross Unrealized Depreciation | (19) | (43) |
Available for sale, Fair Value | 3,791 | 4,145 |
Available for sale, OTTI recognized in AOCI | 0 | 0 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, at amortized cost | 21,796 | 21,370 |
Available-for-sale,Gross Unrealized Gain | 658 | 395 |
Available-for-sale, Gross Unrealized Depreciation | (112) | (349) |
Available for sale, Fair Value | 22,342 | 21,416 |
Available for sale, OTTI recognized in AOCI | 0 | 0 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, at amortized cost | 27,519 | 27,183 |
Available-for-sale,Gross Unrealized Gain | 476 | 150 |
Available-for-sale, Gross Unrealized Depreciation | (170) | (750) |
Available for sale, Fair Value | 27,825 | 26,583 |
Available for sale, OTTI recognized in AOCI | (5) | (6) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, at amortized cost | 16,369 | 15,758 |
Available-for-sale,Gross Unrealized Gain | 173 | 66 |
Available-for-sale, Gross Unrealized Depreciation | (112) | (284) |
Available for sale, Fair Value | 16,430 | 15,540 |
Available for sale, OTTI recognized in AOCI | (1) | (1) |
States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, at amortized cost | 10,180 | 10,854 |
Available-for-sale,Gross Unrealized Gain | 123 | 49 |
Available-for-sale, Gross Unrealized Depreciation | (28) | (117) |
Available for sale, Fair Value | 10,275 | 10,786 |
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, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Held to maturity, Amortized Cost | $ 13,136 | $ 13,435 |
Held to maturity, Gross Unrealized Appreciation | 158 | 51 |
Held to maturity, Gross Unrealized Depreciation | (54) | (227) |
Held to maturity, at Fair Value | 13,240 | 13,259 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
U.S. Treasury and agency | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 1,144 | 1,185 |
Held to maturity, Gross Unrealized Appreciation | 11 | 8 |
Held to maturity, Gross Unrealized Depreciation | (3) | (11) |
Held to maturity, at Fair Value | 1,152 | 1,182 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Foreign | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 1,503 | 1,549 |
Held to maturity, Gross Unrealized Appreciation | 34 | 11 |
Held to maturity, Gross Unrealized Depreciation | (3) | (18) |
Held to maturity, at Fair Value | 1,534 | 1,542 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Corporate securities | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 2,543 | 2,601 |
Held to maturity, Gross Unrealized Appreciation | 30 | 11 |
Held to maturity, Gross Unrealized Depreciation | (34) | (104) |
Held to maturity, at Fair Value | 2,539 | 2,508 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
Mortgage-backed securities | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 2,484 | 2,524 |
Held to maturity, Gross Unrealized Appreciation | 16 | 5 |
Held to maturity, Gross Unrealized Depreciation | (6) | (43) |
Held to maturity, at Fair Value | 2,494 | 2,486 |
Held to maturity, OTTI recognized in AOCI | 0 | 0 |
States, municipalities, and political subdivisions | ||
Investment [Line Items] | ||
Held to maturity, Amortized Cost | 5,462 | 5,576 |
Held to maturity, Gross Unrealized Appreciation | 67 | 16 |
Held to maturity, Gross Unrealized Depreciation | (8) | (51) |
Held to maturity, at Fair Value | 5,521 | 5,541 |
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, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale, Due in 1 year or less, Amortized Cost | $ 3,776 | $ 3,569 |
Available for sale, Due after 1 year through 5 years, Amortized Cost | 27,308 | 27,134 |
Available for sale, Due after 5 years though 10 years, Amortized Cost | 23,367 | 24,095 |
Available for sale, Due after 10 years, Amortized Cost | 8,804 | 8,767 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | 63,255 | 63,565 |
Available for sale, Mortgage-backed securities, Amortized Cost | 16,369 | 15,758 |
Available for sale, at amortized cost | 79,624 | 79,323 |
Available for sale, Due in 1 year or less, Fair Value | 3,785 | 3,568 |
Available for sale, Due after 1 year through 5 years, Fair Value | 27,593 | 27,005 |
Available for sale, Due after 5 years through 10 years, Fair Value | 23,690 | 23,543 |
Available for sale, Due after 10 years, Fair Value | 9,165 | 8,814 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value | 64,233 | 62,930 |
Available for sale, Mortgage backed securities, Fair Value | 16,430 | 15,540 |
Available for sale, Fair Value | 80,663 | 78,470 |
Held to maturity, Due in 1 year or less, Amortized Cost | 614 | 536 |
Held to maturity, Due after 1 year through 5 years, Amortized Cost | 3,111 | 3,122 |
Held to maturity, Due after 5 years through 10 years, Amortized Cost | 4,246 | 4,468 |
Held to maturity, Due after 10 years, Amortized Cost | 2,681 | 2,785 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost | 10,652 | 10,911 |
Held to maturity, Mortgage backed securities, Amortized Cost | 2,484 | 2,524 |
Held to maturity, Amortized Cost | 13,136 | 13,435 |
Held to maturity, Due in 1 year or less, Fair Value | 616 | 537 |
Held to maturity, Due after 1 year through 5, Fair Value | 3,125 | 3,106 |
Held to maturity, Due after 5 years through 10 years, Fair Value | 4,287 | 4,407 |
Held to maturity, Due after 10 years, Fair Value | 2,718 | 2,723 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value | 10,746 | 10,773 |
Held to maturity, Mortgage backed securities, Fair Value | 2,494 | 2,486 |
Held to maturity, Fair Value | $ 13,240 | $ 13,259 |
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, 2019 | Mar. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | ||
OTTI on fixed maturities, gross and net | $ 13 | $ 1 |
Foreign exchange gains (losses) | 13 | (77) |
Gain (Loss) on Derivative | (80) | 79 |
Fair Value Adjustments On Insurance Derivative Gains Losses | 114 | 38 |
Net Realized Gains (Losses) | (97) | (2) |
Investment and embedded derivative instruments | ||
Gain (Loss) on Securities [Line Items] | ||
Gain (Loss) on Derivative | (130) | 17 |
S&P put options and futures | ||
Gain (Loss) on Securities [Line Items] | ||
Gain (Loss) on Derivative | (63) | 22 |
Other derivative instruments | ||
Gain (Loss) on Securities [Line Items] | ||
Gain (Loss) on Derivative | (1) | 2 |
Fixed Maturities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
OTTI on fixed maturities, gross and net | (13) | (1) |
Debt Securities, Available-for-sale, Realized Gain (Loss), Excluding Other-than-temporary Impairment | 27 | 66 |
Debt Securities, Available-for-sale, Realized Loss, Excluding Other-than-temporary Impairment | (58) | (88) |
Debt Securities, Available-for-sale, Realized Gain (Loss) | (44) | (23) |
Equity Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Equity Securities, FV-NI, Realized Gain | 64 | 10 |
Equity Securities, FV-NI, Realized Loss | (6) | (21) |
Equity Securities, FV-NI, Realized Gain (Loss) | 58 | (11) |
Other Investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Other investments gain (loss) | (44) | 29 |
Other [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Other | $ 0 | $ 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, 2019 | Mar. 31, 2018 | |
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 | $ 34 | $ 22 |
Additions where no OTTI was previously recorded | 6 | 0 |
Reductions for securities sold during the period | (8) | (7) |
Balance of credit losses related to securities still held – end of period | $ 32 | $ 15 |
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, 2019 | Mar. 31, 2018 | |
Equity Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Equity Securities, FV-NI, Realized Gain (Loss) | $ 58 | $ (11) |
Other Investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Net gains (losses) recognized during the period | (44) | 29 |
Accounting Standards Update 2016-01 [Member] | Equity Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Equity Securities, FV-NI, Realized Gain (Loss) | 58 | (11) |
Less: Net gains (losses) recognized from sales of securities | 1 | 10 |
Unrealized gains (losses) recognized for securities still held at reporting date | 57 | (21) |
Accounting Standards Update 2016-01 [Member] | Other Investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Net gains (losses) recognized during the period | (44) | 29 |
Less: Net gains (losses) recognized from sales of securities | (2) | 0 |
Unrealized gains (losses) recognized for securities still held at reporting date | (42) | 29 |
Accounting Standards Update 2016-01 [Member] | Equity securities and other investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Net gains (losses) recognized during the period | 14 | 18 |
Less: Net gains (losses) recognized from sales of securities | (1) | 10 |
Unrealized gains (losses) recognized for securities still held at reporting date | $ 15 | $ 8 |
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) - Fixed Maturities [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Fair Value 0-12 months | $ 5,544 | $ 34,952 |
Gross unrealized (loss) 0-12 months | (89) | (953) |
Fair Value over 12 months | 26,573 | 27,762 |
Gross unrealized (loss) over 12 months | (406) | (817) |
Fair Value | 32,117 | 62,714 |
Gross unrealized (loss) | (495) | (1,770) |
U.S. Treasury and agency | ||
Investment [Line Items] | ||
Fair Value 0-12 months | 68 | 523 |
Gross unrealized (loss) 0-12 months | 0 | (4) |
Fair Value over 12 months | 2,298 | 2,859 |
Gross unrealized (loss) over 12 months | (22) | (50) |
Fair Value | 2,366 | 3,382 |
Gross unrealized (loss) | (22) | (54) |
Foreign | ||
Investment [Line Items] | ||
Fair Value 0-12 months | 1,346 | 6,764 |
Gross unrealized (loss) 0-12 months | (26) | (208) |
Fair Value over 12 months | 4,228 | 5,349 |
Gross unrealized (loss) over 12 months | (89) | (159) |
Fair Value | 5,574 | 12,113 |
Gross unrealized (loss) | (115) | (367) |
Corporate securities | ||
Investment [Line Items] | ||
Fair Value 0-12 months | 3,649 | 16,538 |
Gross unrealized (loss) 0-12 months | (62) | (599) |
Fair Value over 12 months | 6,206 | 4,873 |
Gross unrealized (loss) over 12 months | (142) | (255) |
Fair Value | 9,855 | 21,411 |
Gross unrealized (loss) | (204) | (854) |
Mortgage-backed securities | ||
Investment [Line Items] | ||
Fair Value 0-12 months | 388 | 6,103 |
Gross unrealized (loss) 0-12 months | (1) | (98) |
Fair Value over 12 months | 8,974 | 6,913 |
Gross unrealized (loss) over 12 months | (117) | (229) |
Fair Value | 9,362 | 13,016 |
Gross unrealized (loss) | (118) | (327) |
States, municipalities, and political subdivisions | ||
Investment [Line Items] | ||
Fair Value 0-12 months | 93 | 5,024 |
Gross unrealized (loss) 0-12 months | 0 | (44) |
Fair Value over 12 months | 4,867 | 7,768 |
Gross unrealized (loss) over 12 months | (36) | (124) |
Fair Value | 4,960 | 12,792 |
Gross unrealized (loss) | $ (36) | $ (168) |
Investments (Schedule Of Compon
Investments (Schedule Of Components Of Restricted Assets) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Trust funds | $ 13,943 | $ 13,988 |
Deposits with U.S. regulatory authorities | 2,904 | 2,405 |
Deposits with non-U.S. regulatory authorities | 2,851 | 2,531 |
Assets pledged under repurchase agreements | 1,478 | 1,468 |
Other pledged assets | 942 | 692 |
Total restricted assets | $ 22,118 | $ 21,084 |
Fair value measurements Fair _2
Fair value measurements Fair Value Measurements (narrative) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | $ 80,663 | $ 78,470 | |||||
Equity securities, at fair value and cost | 821 | 770 | |||||
Other Investments | 5,562 | 5,277 | |||||
Securities lending collateral | 1,861 | 1,926 | |||||
U.S. Treasury and agency | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 3,791 | 4,145 | |||||
Foreign | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 22,342 | 21,416 | |||||
Corporate securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 27,825 | 26,583 | |||||
Mortgage-backed securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 16,430 | 15,540 | |||||
States, municipalities, and political subdivisions | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 10,275 | 10,786 | |||||
Investment Funds Limited Partnerships Partially Owned Investment Companies Fair Value [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Other Investments | 4,464 | 4,244 | |||||
Other Investments [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Other Investments | 91 | 95 | |||||
Fair Value, Measurements, Recurring [Member] | Level 1 | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 3,168 | 3,400 | |||||
Equity securities, at fair value and cost | 766 | 713 | |||||
Short-term investments | 1,785 | 1,575 | |||||
Other Investments | 411 | [1] | 381 | [2] | |||
Securities lending collateral | 0 | ||||||
Investment derivative instruments, assets | 15 | 28 | |||||
Other Derivative Instruments Fair Value | 7 | 25 | |||||
Separate Account Assets | 2,991 | 2,686 | |||||
Total assets measured at fair value | 9,143 | [1] | 8,808 | [2] | |||
Investment derivative instruments, liabilities | 52 | 38 | |||||
Other derivative instruments, liability | 12 | ||||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 64 | 38 | |||||
Fair Value, Measurements, Recurring [Member] | Level 1 | U.S. Treasury and agency | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 3,168 | 3,400 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 75,715 | 73,365 | |||||
Short-term investments | 1,293 | 1,440 | |||||
Other Investments | 342 | [1] | 303 | [2] | |||
Securities lending collateral | 1,861 | 1,926 | |||||
Separate Account Assets | 139 | 137 | |||||
Total assets measured at fair value | 79,350 | [1] | 77,171 | [2] | |||
Investment derivative instruments, liabilities | 195 | 115 | |||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 195 | 115 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 | U.S. Treasury and agency | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 623 | 745 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 | Foreign | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 21,982 | 21,071 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 | Corporate securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 26,483 | 25,284 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 | Mortgage-backed securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 16,352 | 15,479 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 | States, municipalities, and political subdivisions | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 10,275 | 10,786 | |||||
Fair Value, Measurements, Recurring [Member] | Level 3 | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 1,780 | 1,705 | |||||
Equity securities, at fair value and cost | 55 | 57 | |||||
Short-term investments | 1 | ||||||
Other Investments | 11 | [1] | 11 | [2] | |||
Total assets measured at fair value | 1,846 | [1] | 1,774 | [2] | |||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 338 | 452 | |||||
Fair Value, Measurements, Recurring [Member] | Level 3 | Foreign | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 360 | 345 | |||||
Fair Value, Measurements, Recurring [Member] | Level 3 | Corporate securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 1,342 | 1,299 | |||||
Fair Value, Measurements, Recurring [Member] | Level 3 | Mortgage-backed securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 78 | 61 | |||||
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 | 80,663 | 78,470 | |||||
Equity securities, at fair value and cost | 821 | 770 | |||||
Short-term investments | 3,078 | 3,016 | |||||
Other Investments | 764 | [1] | 695 | [2] | |||
Securities lending collateral | 1,861 | 1,926 | |||||
Investment derivative instruments, assets | 15 | 28 | |||||
Other Derivative Instruments Fair Value | 7 | 25 | |||||
Separate Account Assets | 3,130 | 2,823 | |||||
Total assets measured at fair value | 90,339 | [1] | 87,753 | [2] | |||
Investment derivative instruments, liabilities | 247 | 153 | |||||
Other derivative instruments, liability | 12 | ||||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 597 | 605 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | U.S. Treasury and agency | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 3,791 | 4,145 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Foreign | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 22,342 | 21,416 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Corporate securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 27,825 | 26,583 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Mortgage-backed securities | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 16,430 | 15,540 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | States, municipalities, and political subdivisions | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Available for sale, Fair Value | 10,275 | 10,786 | |||||
Guaranteed Minimum Income Benefit [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 338 | 452 | $ 167 | $ 204 | |||
Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | [3] | 338 | $ 452 | ||||
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 Reconciliation, Recurring Basis, Liability Value | [3] | $ 338 | |||||
[1] | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,464 million and other investments of $91 million at March 31, 2019 measured using NAV as a practical expedient. | ||||||
[2] | Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $4,244 million and other investments of $95 million at December 31, 2018 measured using NAV as a practical expedient. | ||||||
[3] | Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the Consolidated balance sheets. |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value And Maximum Future Funding Commitments Related To Investments) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 3,642 | $ 3,705 |
Alternative Investment | 4,464 | 4,244 |
Real Assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | 449 | 362 |
Alternative Investment | $ 762 | $ 704 |
Real Assets | 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 | 2 years | 2 years |
Real Assets | 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 | 11 years | 11 years |
Distressed | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 98 | $ 105 |
Alternative Investment | $ 263 | $ 296 |
Distressed | 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 | 2 years | 2 years |
Distressed | 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 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 291 | $ 310 |
Alternative Investment | $ 134 | $ 147 |
Private Credit | 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 | 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 | 8 years | 8 years |
Traditional | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 2,573 | $ 2,735 |
Alternative Investment | $ 2,331 | $ 2,362 |
Traditional | 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 | 2 years | 2 years |
Traditional | 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 | 14 years | 14 years |
Vintage | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | $ 43 | |
Alternative Investment | $ 125 | $ 56 |
Vintage | 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 | 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 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Alternative Investment | $ 258 | $ 83 |
Financial | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Maximum future funding commitments | 188 | 193 |
Alternative Investment | $ 591 | $ 596 |
Financial | 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 | 2 years | 2 years |
Financial | 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 |
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, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements, Valuation Processes, Description | [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] | 32.00% | |||
Significant Unobservable Inputs Annuitization Rate | [1] | 42.00% | |||
Guaranteed Minimum Income Benefit [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 338 | $ 452 | $ 167 | $ 204 | |
Guaranteed Minimum Income Benefit [Member] | Level 3 | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | [2] | $ 338 | $ 452 | ||
[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. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value Using Significant Unobservable Inputs) (Detail) - Level 3 - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Mortgage-backed securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance- Beginning of Period, Assets | $ 61 | $ 78 | |
Transfers Into Level 3, Asset | 0 | 1 | |
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 | 18 | 4 | |
Sales, Assets | 0 | 0 | |
Settlements, Assets | (1) | 0 | |
Balance-End of Period, Assets | 78 | 83 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | |
Corporate securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance- Beginning of Period, Assets | 1,299 | 1,037 | |
Transfers Into Level 3, Asset | 5 | 0 | |
Transfers out of Level 3, Assets | 0 | (10) | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 4 | (3) | |
Net Realized Gains/ (Losses), Assets | 1 | 0 | |
Purchases, Assets | 128 | 139 | [1] |
Sales, Assets | (37) | (51) | |
Settlements, Assets | (58) | (39) | |
Balance-End of Period, Assets | 1,342 | 1,073 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | |
Foreign | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance- Beginning of Period, Assets | 345 | 93 | |
Transfers Into Level 3, Asset | 3 | 7 | |
Transfers out of Level 3, Assets | (15) | 0 | |
Asset, Net realized Gain (Loss) Included in Other Comprehensive Income (Loss) | 6 | 9 | |
Net Realized Gains/ (Losses), Assets | (1) | 0 | |
Purchases, Assets | 53 | 87 | |
Sales, Assets | (5) | (19) | |
Settlements, Assets | (26) | (1) | |
Balance-End of Period, Assets | 360 | 176 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | |
Equity Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance- Beginning of Period, Assets | 57 | 44 | |
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 | 1 | |
Net Realized Gains/ (Losses), Assets | (2) | 2 | |
Purchases, Assets | 9 | 17 | |
Sales, Assets | (10) | 0 | |
Settlements, Assets | 0 | 0 | |
Balance-End of Period, Assets | 55 | 64 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (1) | 0 | |
Short-term Investments [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance- Beginning of Period, Assets | 1 | 0 | |
Transfers Into Level 3, Asset | 0 | 5 | |
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 | 0 | 8 | |
Sales, Assets | 0 | 0 | |
Settlements, Assets | (1) | (1) | |
Balance-End of Period, Assets | 0 | 12 | |
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 | 11 | 263 | |
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) | 0 | 2 | |
Net Realized Gains/ (Losses), Assets | 0 | 0 | |
Purchases, Assets | 0 | 14 | |
Sales, Assets | 0 | 0 | |
Settlements, Assets | 0 | (9) | |
Balance-End of Period, Assets | 11 | 270 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | |
[1] | Purchases in Level 3 primarily consist of privately-placed fixed income securities. |
Fair value measurements Fair _3
Fair value measurements Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Derivative Financial Instruments, Liabilities [Member] | Level 3 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance - Beginning of Period, Liabilities | $ 2 | |||||
Transfers into level 3, liability | 0 | |||||
Transfers out of Level 3, Liabilities | 0 | |||||
Change in Net Unrealized Gains (Losses) included in OCI, Liabilities | 0 | |||||
Net Realized Gains/Losses, Liabilities | 0 | |||||
Purchases, Liabilities | 0 | |||||
Sales, Liabilities | 0 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | |||||
Balance - End of Period, Liabilities | 2 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | |||||
Guaranteed Minimum Income Benefit [Member] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Reported liabilities | $ 741 | 529 | $ 861 | $ 550 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance - Beginning of Period, Liabilities | 452 | 204 | ||||
Balance - End of Period, Liabilities | 338 | 167 | ||||
Guaranteed Minimum Income Benefit [Member] | Guarantees [Member] | Level 3 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance - Beginning of Period, Liabilities | 452 | [1] | 204 | [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 | (114) | (37) | ||||
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 | 338 | [1] | 167 | [2] | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (114) | $ (37) | ||||
[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 $741 million at March 31, 2019, and $861 million at December 31, 2018, which includes a fair value derivative adjustment of $338 million and 452 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 $529 million at March 31, 2018, and $550 million at December 31, 2017, which includes a fair value derivative adjustment of $167 million and $204 million, respectively. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | $ 13,240 | $ 13,259 |
Debt Securities, Held-to-maturity | 13,136 | 13,435 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Repurchase agreements | 1,419 | 1,418 |
Short-term debt | 509 | 509 |
Long-term debt | 12,071 | 12,087 |
Trust preferred securities | 308 | 308 |
Total liabilities | 118,992 | 117,459 |
U.S. Treasury and agency | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,152 | 1,182 |
Debt Securities, Held-to-maturity | 1,144 | 1,185 |
Foreign | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,534 | 1,542 |
Debt Securities, Held-to-maturity | 1,503 | 1,549 |
Corporate securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 2,539 | 2,508 |
Debt Securities, Held-to-maturity | 2,543 | 2,601 |
Mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 2,494 | 2,486 |
Debt Securities, Held-to-maturity | 2,484 | 2,524 |
States, municipalities, and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 5,521 | 5,541 |
Debt Securities, Held-to-maturity | 5,462 | 5,576 |
Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,098 | 1,128 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
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 |
Level 1 | U.S. Treasury and agency | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,098 | 1,128 |
Level 1 | Foreign | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 1 | Corporate securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 1 | Mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 1 | States, municipalities, and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 12,112 | 12,100 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Repurchase agreements | 1,419 | 1,418 |
Short-term Debt, Fair Value | 512 | 516 |
Long-term Debt, Fair Value | 12,719 | 12,181 |
Trust preferred securities | 425 | 409 |
Total liabilities | 15,075 | 14,524 |
Level 2 | U.S. Treasury and agency | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 54 | 54 |
Level 2 | Foreign | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,534 | 1,542 |
Level 2 | Corporate securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 2,509 | 2,477 |
Level 2 | Mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 2,494 | 2,486 |
Level 2 | States, municipalities, and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 5,521 | 5,541 |
Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 30 | 31 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
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 |
Level 3 | U.S. Treasury and agency | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 3 | Foreign | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 3 | Corporate securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 30 | 31 |
Level 3 | Mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Level 3 | States, municipalities, and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 13,240 | 13,259 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Repurchase agreements | 1,419 | 1,418 |
Short-term Debt, Fair Value | 512 | 516 |
Long-term Debt, Fair Value | 12,719 | 12,181 |
Trust preferred securities | 425 | 409 |
Total liabilities | 15,075 | 14,524 |
Estimate of Fair Value Measurement [Member] | U.S. Treasury and agency | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,152 | 1,182 |
Estimate of Fair Value Measurement [Member] | Foreign | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 1,534 | 1,542 |
Estimate of Fair Value Measurement [Member] | Corporate securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 2,539 | 2,508 |
Estimate of Fair Value Measurement [Member] | Mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 2,494 | 2,486 |
Estimate of Fair Value Measurement [Member] | States, municipalities, and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | 5,521 | 5,541 |
Reported Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity | 13,136 | 13,435 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Repurchase agreements | 1,419 | 1,418 |
Short-term debt | 509 | 509 |
Long-term debt | 12,071 | 12,087 |
Trust preferred securities | 308 | 308 |
Total liabilities | 14,307 | 14,322 |
Reported Value Measurement [Member] | U.S. Treasury and agency | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity | 1,144 | 1,185 |
Reported Value Measurement [Member] | Foreign | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity | 1,503 | 1,549 |
Reported Value Measurement [Member] | Corporate securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity | 2,543 | 2,601 |
Reported Value Measurement [Member] | Mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity | 2,484 | 2,524 |
Reported Value Measurement [Member] | States, municipalities, and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Debt Securities, Held-to-maturity | $ 5,462 | $ 5,576 |
Unpaid losses and loss expens_3
Unpaid losses and loss expenses (RF) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Unpaid Losses and Loss Expenses [Roll Forward] | |||
Gross unpaid losses and loss expenses – beginning of period | $ 62,960 | $ 63,179 | |
Reinsurance recoverable on unpaid losses - beginning of period (1) | [1] | (14,689) | (14,014) |
Net unpaid losses and loss expenses – beginning of period | 48,271 | 49,165 | |
Current Year Claims and Claims Adjustment Expense | 4,326 | 4,358 | |
Prior Year Claims and Claims Adjustment Expense | [2] | (228) | (256) |
Total, Incurred | 4,098 | 4,102 | |
Net loss and loss expenses paid, Current Year | 785 | 809 | |
Net loss and loss expenses paid, Prior Years | 3,234 | 3,433 | |
Total, Paid | 4,019 | 4,242 | |
Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Revaluation And Other | 86 | 292 | |
Net unpaid losses and loss expenses – end of period | 48,436 | 49,317 | |
Reinsurance recoverable on unpaid losses (1) | [1] | 14,707 | 13,822 |
Gross unpaid losses and loss expenses – end of period | 63,143 | 63,139 | |
prior period development, net adjustments | $ 24 | $ 47 | |
[1] | Net of provision for uncollectible reinsurance. | ||
[2] | Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $24 million and $47 million for the three months ended March 31, 2019 and 2018, respectively. |
Unpaid losses and loss expens_4
Unpaid losses and loss expenses Unpaid losses and loss expenses (PPD table) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | $ (204) | $ (209) |
North America Commercial P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (131) | (101) |
North America Personal P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (10) | (6) |
North American Agriculture Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (61) | (76) |
Overseas General Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (4) | (22) |
Global Reinsurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (8) | (14) |
Corporate Segment [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 10 | 10 |
Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (148) | (227) |
Short Tail [Member] | North America Commercial P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (66) | (109) |
Short Tail [Member] | North America Personal P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (10) | (6) |
Short Tail [Member] | North American Agriculture Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (61) | (76) |
Short Tail [Member] | Overseas General Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (4) | (22) |
Short Tail [Member] | Global Reinsurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (7) | (14) |
Short Tail [Member] | Corporate Segment [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (56) | 18 |
Long Tail [Member] | North America Commercial P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (65) | 8 |
Long Tail [Member] | North America Personal P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
Long Tail [Member] | North American Agriculture Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
Long Tail [Member] | Overseas General Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
Long Tail [Member] | Global Reinsurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (1) | 0 |
Long Tail [Member] | Corporate Segment [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | $ 10 | $ 10 |
Unpaid losses and loss expens_5
Unpaid losses and loss expenses Unpaid losses and loss expenses (narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability for unpaid claims and claims adjustment expense, period increase (decrease), excluding CATs, PPD, and other | $ 557 | |
Net Prior Period Development | (204) | $ (209) |
Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (56) | 18 |
Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (148) | (227) |
North America Commercial P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (131) | (101) |
North America Commercial P&C Insurance [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (65) | 8 |
North America Commercial P&C Insurance [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (66) | (109) |
North America Commercial P&C Insurance [Member] | General Liability [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 16 | |
North America Commercial P&C Insurance [Member] | Other [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 3 | 40 |
North America Commercial P&C Insurance [Member] | Other [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (34) | |
North America Commercial P&C Insurance [Member] | Surety Product Line [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (19) | |
North America Commercial P&C Insurance [Member] | Accident Year 2013 and prior [Member] | Commercial Excess and Umbrella [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (31) | |
North America Commercial P&C Insurance [Member] | Accident years 2012 and prior [Member] | Commercial Excess and Umbrella [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (29) | |
North America Commercial P&C Insurance [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Surety Product Line [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (49) | |
North America Commercial P&C Insurance [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Catastrophe [Member] | Other [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (3) | |
North America Commercial P&C Insurance [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Catastrophe [Member] | Commercial Property and Marine [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (75) | |
North America Commercial P&C Insurance [Member] | Accident Year 2015 - 2017 [Member] | Other [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (17) | |
North America Commercial P&C Insurance [Member] | Accident year 2015 and prior [Member] | Professional Malpractice Liability Insurance [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (57) | |
North America Commercial P&C Insurance [Member] | Accident year 2015 and prior [Member] | North America Workers' Compensation [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (30) | |
North America Commercial P&C Insurance [Member] | Accident years 2013 - 2018 [Member] | Auto & General Liability [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 50 | |
North America Personal P&C Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (10) | (6) |
North America Personal P&C Insurance [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
North America Personal P&C Insurance [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (10) | (6) |
North America Personal P&C Insurance [Member] | Catastrophe [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (6) | |
North America Personal P&C Insurance [Member] | Non-catastrophe [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 122 | |
North America Personal P&C Insurance [Member] | Accident years 2017 - 2018 [Member] | Catastrophe [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (132) | |
North America Agricultural Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (61) | (76) |
North America Agricultural Insurance [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
North America Agricultural Insurance [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (61) | (76) |
Overseas General Insurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (4) | (22) |
Overseas General Insurance [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 0 | 0 |
Overseas General Insurance [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (4) | (22) |
Overseas General Insurance [Member] | Other [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (7) | |
Overseas General Insurance [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Catastrophe [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (12) | |
Overseas General Insurance [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Catastrophe [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 3 | |
Global Reinsurance [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (8) | (14) |
Global Reinsurance [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (1) | 0 |
Global Reinsurance [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (7) | (14) |
Global Reinsurance [Member] | Other [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (12) | |
Global Reinsurance [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Catastrophe [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | (10) | |
Global Reinsurance [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Catastrophe [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 5 | |
Corporate Segment [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 10 | 10 |
Corporate Segment [Member] | Long Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | 10 | 10 |
Corporate Segment [Member] | Short Tail [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net Prior Period Development | $ 0 | $ 0 |
Commitments, Contingencies, A_3
Commitments, Contingencies, And Guarantees (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Derivative liability subject to a master netting agreement | $ 234 | $ 95 |
Repurchase agreements | 1,419 | $ 1,418 |
Purchase Commitment, Remaining Minimum Amount Committed | 792 | |
Carrying value of limited partnerships and partially-owned investment companies included in other investments | 4,200 | |
Funding commitments relating to limited partnerships and partially-owned investment companies | 3,600 | |
Unrecognized tax benefits | $ 14 |
Commitments, Contingencies, A_4
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, 2019 | Dec. 31, 2018 | |
Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | $ 2,559 | $ 2,185 | |
Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 45 | 45 | |
Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 5,250 | 5,250 | |
Options/Futures contracts on notes, bonds, and equities | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 1,080 | 1,046 | |
Convertible securities | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [1] | 9 | 11 |
To be announced [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 0 | 6 | |
Total investment and embedded derivative instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 8,943 | 8,543 | |
Fair Value, Asset | 23 | 43 | |
Futures contracts on equities (3) | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [2] | 537 | 507 |
Other | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 184 | 74 | |
Other Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | 721 | 581 | |
Guaranteed Minimum Income Benefit [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value/Payment Provision | [3] | 1,458 | 1,750 |
Fair Value, Asset | [3] | 0 | 0 |
Other Assets [Member] | Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 9 | 15 | |
Other Assets [Member] | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 0 | 0 | |
Other Assets [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 0 | 0 | |
Other Assets [Member] | Options/Futures contracts on notes, bonds, and equities | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 6 | 13 | |
Other Assets [Member] | Futures contracts on equities (3) | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | [2] | 0 | 23 |
Other Assets [Member] | Other | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 7 | 2 | |
Other Assets [Member] | Other Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | 7 | 25 | |
Fixed Maturities [Member] | Convertible securities | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Asset | [1] | 8 | 9 |
Fixed Maturities [Member] | To be announced [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | 0 | 0 | |
Fair Value, Asset | 0 | 6 | |
Equity Securities [Member] | Convertible securities | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [1] | 0 | 0 |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (28) | (19) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | 0 | 0 | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (195) | (115) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Options/Futures contracts on notes, bonds, and equities | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (24) | (19) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Total investment and embedded derivative instruments | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (247) | (153) | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Futures contracts on equities (3) | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [2] | (12) | 0 |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | 0 | 0 | |
Accounts Payable, Accrued Expenses, And Other Liabilities [Member] | Other Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | (12) | 0 | |
Balance Sheet Location Accounts Payable Future Policy Benefits [Member] | Guaranteed Minimum Income Benefit [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value, Liability | [3] | $ (741) | $ (861) |
[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, A_5
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, 2019 | Mar. 31, 2018 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | $ (80) | $ 79 | ||
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | (15) | 4 | ||
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | (80) | 0 | ||
All Other Futures Contracts, Options and equities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | (36) | 13 | ||
Convertible securities (1) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | 1 | [1] | 0 | |
Total investment and embedded derivative instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | (130) | 17 | ||
GLB (2) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | [2] | 114 | 38 | |
Futures contracts on equities (3) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | [3] | (63) | 22 | |
Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | (1) | 2 | ||
Guaranteed Living Benefit And Other Derivative Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative | $ 50 | $ 62 | ||
[1] | Includes embedded derivatives. | |||
[2] | Excludes foreign exchange gains (losses) related to GLB. | |||
[3] | Related to GMDB and GLB blocks of business. |
Commitments, contingencies, a_6
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Transactions accounted for as secured borrowings) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 1,861 | $ 1,926 |
Securities lending payable | 1,861 | 1,926 |
Cash [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 846 | 756 |
U.S. Treasury and agency | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 60 | 64 |
Foreign [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 655 | 795 |
Corporate securities | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 29 | 15 |
Mortgage-backed securities | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | 47 | 45 |
Equity Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending collateral | $ 224 | $ 251 |
Commitments, contingencies, a_7
Commitments, contingencies, and guarantees Commitments, Contingencies, And Guarantees (Collateral pledged under repurchase agreements) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | $ 1,478 | $ 1,468 | |
Repurchase agreements | 1,419 | 1,418 | |
U.S. Treasury and agency | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 264 | 259 | |
Mortgage-backed securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 1,214 | 1,209 | |
Repurchase Agreements [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Secured Borrowings, Gross, Difference, Amount | [1] | 59 | 50 |
Maturity Less than 30 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 585 | ||
Maturity Less than 30 Days [Member] | U.S. Treasury and agency | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 255 | ||
Maturity Less than 30 Days [Member] | Mortgage-backed securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 330 | ||
Maturity Greater than 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 893 | 972 | |
Maturity Greater than 90 Days [Member] | U.S. Treasury and agency | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 9 | 259 | |
Maturity Greater than 90 Days [Member] | Mortgage-backed securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | $ 884 | 713 | |
Maturity 30 to 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 496 | ||
Maturity 30 to 90 Days [Member] | U.S. Treasury and agency | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | 0 | ||
Maturity 30 to 90 Days [Member] | Mortgage-backed securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Assets pledged under repurchase agreements | $ 496 | ||
[1] | Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. |
Share-Based Compensation (Detai
Share-Based Compensation (Detail) - $ / shares | Feb. 28, 2019 | Mar. 31, 2019 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 3 years | |
Award term period in years | 10 years | |
Stock options granted | 2,073,712 | |
Weighted-average grant date fair value for stock options granted | $ 18.79 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 4 years | |
Restricted stock awards granted to employees and officers of the company | 1,078,247 | |
Grant date fair value of awards except for options granted to employees and officers of the company | $ 133.90 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period in years | 3 years | |
Restricted stock awards granted to employees and officers of the company | 212,059 | |
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 | 357,463 |
Shareholders' equity (Details)
Shareholders' equity (Details) - SFr / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Common Shares, par value | SFr 24.15 | SFr 24.15 |
Common Shares in treasury, shares | 21,604,659 | 20,580,486 |
Shareholders' equity Dividends
Shareholders' equity Dividends Declared (Details) | 3 Months Ended | |||||
Mar. 31, 2019$ / shares | Mar. 31, 2019SFr / shares | Mar. 31, 2018$ / shares | Mar. 31, 2018SFr / shares | May 31, 2018$ / shares | May 31, 2017$ / shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Annual dividend per share approved by shareholders | $ 2.92 | $ 2.84 | ||||
Common Stock, Dividend Rate Approved | $ 0.73 | $ 0.71 | ||||
United States of America, Dollars | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.73 | $ 0.71 | ||||
Switzerland, Francs | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common Stock, Dividends, Per Share, Declared | SFr / shares | SFr 0.72 | SFr 0.66 |
Shareholders' equity Share Repu
Shareholders' equity Share Repurchases (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
May 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 01, 2018 | Dec. 21, 2017 | |
2019 Stock Repurchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | ||||
Number of shares repurchased | 2,753,754 | ||||
Cost of shares repurchased | $ 367 | ||||
Repurchase authorization remaining at end of period | $ 1,112 | ||||
2018 Stock Repurchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||
Number of shares repurchased | 0 | ||||
Cost of shares repurchased | $ 0 | ||||
Repurchase authorization remaining at end of period | $ 1,000 | ||||
Subsequent Event [Member] | 2019 Stock Repurchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 550,000 | ||||
Cost of shares repurchased | $ 77 | ||||
Repurchase authorization remaining at end of period | $ 1,035 |
Postretirement benefits Compone
Postretirement benefits Components of net periodic benefit costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | $ 15 | $ 17 |
Non-service (benefit) cost | (21) | (33) |
Net periodic (benefit) cost | (6) | (16) |
Pension Plan [Member] | Non-US [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 3 | 3 |
Interest cost | 7 | 7 |
Expected return on plan assets | (11) | (13) |
Amortization of prior service cost | 0 | 0 |
Non-service (benefit) cost | (4) | (6) |
Net periodic (benefit) cost | (1) | (3) |
Pension Plan [Member] | UNITED STATES | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 12 | 14 |
Interest cost | 30 | 26 |
Expected return on plan assets | (47) | (53) |
Amortization of prior service cost | 0 | 0 |
Non-service (benefit) cost | (17) | (27) |
Net periodic (benefit) cost | (5) | (13) |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 0 | 0 |
Interest cost | 1 | 1 |
Expected return on plan assets | (1) | (1) |
Amortization of prior service cost | (20) | (21) |
Non-service (benefit) cost | (20) | (21) |
Net periodic (benefit) cost | (20) | (21) |
Losses and loss expenses | Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 2 | 2 |
Non-service (benefit) cost | (2) | (3) |
Losses and loss expenses | Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 0 | 0 |
Non-service (benefit) cost | (2) | (1) |
Administrative Expense | Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 13 | 15 |
Non-service (benefit) cost | (19) | (30) |
Administrative Expense | Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service cost | 0 | 0 |
Non-service (benefit) cost | $ (18) | $ (20) |
Segment information Segment Inf
Segment information Segment Information (narrative Detail (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Gain (Loss) on Derivative | $ (80) | $ 79 |
Net investment income | 836 | 806 |
North America Agricultural Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Income Loss Including Gains Losses On Crop Derivatives | 73 | |
Gain (Loss) on Derivative | (1) | |
Net investment income | 10 | 7 |
Segment Life [Member] | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 89 | $ 83 |
Management Underwriting Income (Loss) | 75 | |
Gains(Losses) On Fair Value Changes In Separate Account Assets | $ 30 |
Segment Information (Operations
Segment Information (Operations By Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net premiums written | $ 7,313 | $ 7,104 |
Net premiums earned | 7,137 | 7,027 |
Losses and loss expenses | 4,098 | 4,102 |
Policy benefits | 196 | 151 |
Policy acquisition costs | 1,464 | 1,464 |
Administrative expenses | 710 | 692 |
Underwriting income (loss) | 669 | 618 |
Net investment income (loss) | 836 | 806 |
Other (income) expense | (39) | (47) |
Amortization of purchased intangibles | 76 | 85 |
Segment Income (loss) | 1,468 | 1,386 |
Net Realized Gains Losses | (97) | (2) |
Interest expense | 140 | 157 |
Chubb integration expenses | 3 | 10 |
Income tax expense | 188 | 135 |
Net income | 1,040 | 1,082 |
North America Commercial P&C Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net premiums written | 2,951 | 2,812 |
Net premiums earned | 3,085 | 3,029 |
Losses and loss expenses | 1,973 | 1,908 |
Policy benefits | 0 | 0 |
Policy acquisition costs | 459 | 472 |
Administrative expenses | 240 | 231 |
Underwriting income (loss) | 413 | 418 |
Net investment income (loss) | 510 | 503 |
Other (income) expense | (5) | (6) |
Amortization of purchased intangibles | 0 | 0 |
Segment Income (loss) | 928 | 927 |
North America Personal P&C Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net premiums written | 1,056 | 1,048 |
Net premiums earned | 1,154 | 1,140 |
Losses and loss expenses | 757 | 886 |
Policy benefits | 0 | 0 |
Policy acquisition costs | 231 | 237 |
Administrative expenses | 68 | 65 |
Underwriting income (loss) | 98 | (48) |
Net investment income (loss) | 64 | 59 |
Other (income) expense | 0 | 0 |
Amortization of purchased intangibles | 3 | 3 |
Segment Income (loss) | 159 | 8 |
North America Agricultural Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net premiums written | 130 | 108 |
Net premiums earned | 55 | 43 |
Losses and loss expenses | (27) | (53) |
Policy benefits | 0 | 0 |
Policy acquisition costs | 7 | (1) |
Administrative expenses | 1 | (3) |
Underwriting income (loss) | 74 | 100 |
Net investment income (loss) | 10 | 7 |
Other (income) expense | 0 | 0 |
Amortization of purchased intangibles | 7 | 7 |
Segment Income (loss) | 77 | 100 |
Overseas General Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net premiums written | 2,395 | 2,384 |
Net premiums earned | 2,114 | 2,107 |
Losses and loss expenses | 1,106 | 1,078 |
Policy benefits | 0 | 0 |
Policy acquisition costs | 596 | 588 |
Administrative expenses | 249 | 239 |
Underwriting income (loss) | 163 | 202 |
Net investment income (loss) | 144 | 151 |
Other (income) expense | 4 | 7 |
Amortization of purchased intangibles | 11 | 10 |
Segment Income (loss) | 292 | 336 |
Global Reinsurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net premiums written | 202 | 193 |
Net premiums earned | 168 | 168 |
Losses and loss expenses | 76 | 67 |
Policy benefits | 0 | 0 |
Policy acquisition costs | 43 | 40 |
Administrative expenses | 10 | 10 |
Underwriting income (loss) | 39 | 51 |
Net investment income (loss) | 56 | 64 |
Other (income) expense | (9) | (7) |
Amortization of purchased intangibles | 0 | 0 |
Segment Income (loss) | 104 | 122 |
Life Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net premiums written | 579 | 559 |
Net premiums earned | 561 | 540 |
Losses and loss expenses | 202 | 205 |
Policy benefits | 196 | 151 |
Policy acquisition costs | 128 | 128 |
Administrative expenses | 79 | 78 |
Underwriting income (loss) | (44) | (22) |
Net investment income (loss) | 89 | 83 |
Other (income) expense | (40) | (4) |
Amortization of purchased intangibles | 0 | 1 |
Segment Income (loss) | 85 | 64 |
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 | 63 | 72 |
Underwriting income (loss) | (74) | (83) |
Net investment income (loss) | (37) | (61) |
Other (income) expense | 11 | (37) |
Amortization of purchased intangibles | 55 | 64 |
Segment Income (loss) | (177) | (171) |
Net Realized Gains Losses | (97) | (2) |
Interest expense | 140 | 157 |
Chubb integration expenses | 3 | 10 |
Income tax expense | 188 | 135 |
Net income | $ (605) | $ (475) |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 1,040 | $ 1,082 |
Weighted-average shares outstanding | 458,805,185 | 465,703,240 |
Share-based compensation plans | 2,731,755 | 3,770,351 |
Weighted-average shares outstanding and assumed conversions | 461,536,940 | 469,473,591 |
Basic earnings per share (US$ per share) | $ 2.27 | $ 2.32 |
Diluted earnings per share (US$ per share) | $ 2.25 | $ 2.30 |
Potential anti-dilutive share conversions | 4,343,204 | 2,116,188 |
Information provided in conne_3
Information provided in connection with outstanding debt of subsidiaries Information provided in connection with outstanding debt of subsidiaries (Narrative) (Details) | Mar. 31, 2019 |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Information Provided In Conne_4
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | $ 103,260 | $ 100,968 | |||||
Cash | 1,271 | [1] | 1,247 | [2] | |||
Restricted cash | [1] | 122 | 93 | ||||
Insurance and reinsurance balances receivable | 9,826 | 10,075 | |||||
Reinsurance recoverable on losses and loss expenses | 16,137 | 15,993 | |||||
Reinsurance recoverable on policy benefits | 203 | 202 | |||||
Value of business acquired | 289 | 295 | |||||
Goodwill and other intangible assets | 21,419 | 21,414 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Due from subsidiaries and affiliates, net | 0 | 0 | |||||
Other assets | 18,820 | 17,484 | |||||
Total assets | 171,347 | 167,771 | |||||
Unpaid losses and loss expenses | 63,143 | 62,960 | $ 63,139 | $ 63,179 | |||
Unearned premiums | 15,909 | 15,532 | |||||
Future policy benefits | 5,552 | 5,506 | |||||
Due to subsidiaries and affiliates, net | 0 | 0 | |||||
Affiliated notional cash pooling programs | 0 | 0 | |||||
Repurchase agreements | 1,419 | 1,418 | |||||
Short-term debt | 509 | 509 | |||||
Long-term debt | 12,071 | 12,087 | |||||
Trust preferred securities | 308 | 308 | |||||
Other liabilities | 20,081 | 19,139 | |||||
Total liabilities | 118,992 | 117,459 | |||||
Total shareholders' equity | 52,355 | 50,312 | $ 51,287 | ||||
Total liabilities and shareholders’ equity | 171,347 | 167,771 | |||||
Chubb Limited (Parent Guarantor) | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 0 | 0 | |||||
Cash | 2 | [1] | 1 | [2] | |||
Restricted cash | [1] | 0 | 0 | ||||
Insurance and reinsurance balances receivable | 0 | 0 | |||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | |||||
Reinsurance recoverable on policy benefits | 0 | 0 | |||||
Value of business acquired | 0 | 0 | |||||
Goodwill and other intangible assets | 0 | 0 | |||||
Investments in subsidiaries | 45,648 | 43,531 | |||||
Due from subsidiaries and affiliates, net | 7,358 | 7,074 | |||||
Other assets | 9 | 3 | |||||
Total assets | 53,017 | 50,609 | |||||
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 | 331 | [1] | 35 | [2] | |||
Repurchase agreements | 0 | 0 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Trust preferred securities | 0 | 0 | |||||
Other liabilities | 331 | 262 | |||||
Total liabilities | 662 | 297 | |||||
Total shareholders' equity | 52,355 | 50,312 | |||||
Total liabilities and shareholders’ equity | 53,017 | 50,609 | |||||
Chubb INA Holdings Inc (Subsidiary Issuer) | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 229 | 214 | |||||
Cash | 71 | [1] | 2 | [2] | |||
Restricted cash | [1] | 0 | 0 | ||||
Insurance and reinsurance balances receivable | 0 | 0 | |||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | |||||
Reinsurance recoverable on policy benefits | 0 | 0 | |||||
Value of business acquired | 0 | 0 | |||||
Goodwill and other intangible assets | 0 | 0 | |||||
Investments in subsidiaries | 51,996 | 50,209 | |||||
Due from subsidiaries and affiliates, net | 0 | 0 | |||||
Other assets | 488 | 1,007 | |||||
Total assets | 52,784 | 51,432 | |||||
Unpaid losses and loss expenses | 0 | 0 | |||||
Unearned premiums | 0 | 0 | |||||
Future policy benefits | 0 | 0 | |||||
Due to subsidiaries and affiliates, net | 7,974 | 7,672 | |||||
Affiliated notional cash pooling programs | 691 | [1] | 617 | [2] | |||
Repurchase agreements | 0 | 0 | |||||
Short-term debt | 500 | 500 | |||||
Long-term debt | 12,070 | 12,086 | |||||
Trust preferred securities | 308 | 308 | |||||
Other liabilities | 1,894 | 2,545 | |||||
Total liabilities | 23,437 | 23,728 | |||||
Total shareholders' equity | 29,347 | 27,704 | |||||
Total liabilities and shareholders’ equity | 52,784 | 51,432 | |||||
Other Chubb Limited Subsidiaries | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 103,031 | 100,754 | |||||
Cash | 2,220 | [1] | 1,896 | [2] | |||
Restricted cash | [1] | 122 | 93 | ||||
Insurance and reinsurance balances receivable | 11,491 | 11,861 | |||||
Reinsurance recoverable on losses and loss expenses | 26,232 | 26,422 | |||||
Reinsurance recoverable on policy benefits | 306 | 306 | |||||
Value of business acquired | 289 | 295 | |||||
Goodwill and other intangible assets | 21,419 | 21,414 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Due from subsidiaries and affiliates, net | 616 | 598 | |||||
Other assets | 20,170 | 18,102 | |||||
Total assets | 185,896 | 181,741 | |||||
Unpaid losses and loss expenses | 72,998 | 72,857 | |||||
Unearned premiums | 17,039 | 16,611 | |||||
Future policy benefits | 5,655 | 5,610 | |||||
Due to subsidiaries and affiliates, net | 0 | 0 | |||||
Affiliated notional cash pooling programs | 0 | [1] | 0 | [2] | |||
Repurchase agreements | 1,419 | 1,418 | |||||
Short-term debt | 9 | 9 | |||||
Long-term debt | 1 | 1 | |||||
Trust preferred securities | 0 | 0 | |||||
Other liabilities | 20,478 | 19,199 | |||||
Total liabilities | 117,599 | 115,705 | |||||
Total shareholders' equity | 68,297 | 66,036 | |||||
Total liabilities and shareholders’ equity | 185,896 | 181,741 | |||||
Consolidating Adjustments and Eliminations | |||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||
Investments | 0 | 0 | |||||
Cash | (1,022) | [1] | (652) | [2] | |||
Restricted cash | [1] | 0 | 0 | ||||
Insurance and reinsurance balances receivable | (1,665) | (1,786) | |||||
Reinsurance recoverable on losses and loss expenses | (10,095) | (10,429) | |||||
Reinsurance recoverable on policy benefits | (103) | (104) | |||||
Value of business acquired | 0 | 0 | |||||
Goodwill and other intangible assets | 0 | 0 | |||||
Investments in subsidiaries | (97,644) | (93,740) | |||||
Due from subsidiaries and affiliates, net | (7,974) | (7,672) | |||||
Other assets | (1,847) | (1,628) | |||||
Total assets | (120,350) | (116,011) | |||||
Unpaid losses and loss expenses | (9,855) | (9,897) | |||||
Unearned premiums | (1,130) | (1,079) | |||||
Future policy benefits | (103) | (104) | |||||
Due to subsidiaries and affiliates, net | (7,974) | (7,672) | |||||
Affiliated notional cash pooling programs | (1,022) | [1] | (652) | [2] | |||
Repurchase agreements | 0 | 0 | |||||
Short-term debt | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Trust preferred securities | 0 | 0 | |||||
Other liabilities | (2,622) | (2,867) | |||||
Total liabilities | (22,706) | (22,271) | |||||
Total shareholders' equity | (97,644) | (93,740) | |||||
Total liabilities and shareholders’ equity | $ (120,350) | $ (116,011) | |||||
[1] | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At March 31, 2019, 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, 2018, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Information Provided In Conne_5
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | $ 7,313 | $ 7,104 |
Net premiums earned | 7,137 | 7,027 |
Net investment income | 836 | 806 |
Equity In Earnings Of Subsidiaries | 0 | 0 |
Net Realized Gains Losses | (97) | (2) |
Losses and loss expenses | 4,098 | 4,102 |
Policy benefits | 196 | 151 |
Policy acquisition costs and administrative expenses | 2,174 | 2,156 |
Interest (income) expense | 140 | 157 |
Other (income) expense | (39) | (47) |
Amortization of purchased intangibles | 76 | 85 |
Chubb integration expenses | 3 | 10 |
Income tax expense | 188 | 135 |
Net income | 1,040 | 1,082 |
Comprehensive income (loss) | 2,718 | 453 |
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 |
Equity In Earnings Of Subsidiaries | (1,749) | (1,907) |
Net Realized Gains Losses | 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 | (1,749) | (1,907) |
Comprehensive income (loss) | (4,729) | (830) |
Chubb Limited (Parent Guarantor) | ||
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | 0 | 0 |
Net premiums earned | 0 | 0 |
Net investment income | 1 | 2 |
Equity In Earnings Of Subsidiaries | 990 | 1,022 |
Net Realized Gains Losses | 1 | (2) |
Losses and loss expenses | 0 | 0 |
Policy benefits | 0 | 0 |
Policy acquisition costs and administrative expenses | 20 | 18 |
Interest (income) expense | (66) | (80) |
Other (income) expense | (6) | (5) |
Amortization of purchased intangibles | 0 | 0 |
Chubb integration expenses | 0 | 2 |
Income tax expense | 4 | 5 |
Net income | 1,040 | 1,082 |
Comprehensive income (loss) | 2,718 | 453 |
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) | 4 |
Equity In Earnings Of Subsidiaries | 759 | 885 |
Net Realized Gains Losses | (13) | (24) |
Losses and loss expenses | 0 | 0 |
Policy benefits | 0 | 0 |
Policy acquisition costs and administrative expenses | (15) | 22 |
Interest (income) expense | 185 | 209 |
Other (income) expense | 3 | 8 |
Amortization of purchased intangibles | 0 | 0 |
Chubb integration expenses | 2 | 1 |
Income tax expense | (42) | (59) |
Net income | 609 | 684 |
Comprehensive income (loss) | 1,941 | 216 |
Other Chubb Limited Subsidiaries | ||
Condensed Statement of Income Captions [Line Items] | ||
Net premiums written | 7,313 | 7,104 |
Net premiums earned | 7,137 | 7,027 |
Net investment income | 839 | 800 |
Equity In Earnings Of Subsidiaries | 0 | 0 |
Net Realized Gains Losses | (85) | 24 |
Losses and loss expenses | 4,098 | 4,102 |
Policy benefits | 196 | 151 |
Policy acquisition costs and administrative expenses | 2,169 | 2,116 |
Interest (income) expense | 21 | 28 |
Other (income) expense | (36) | (50) |
Amortization of purchased intangibles | 76 | 85 |
Chubb integration expenses | 1 | 7 |
Income tax expense | 226 | 189 |
Net income | 1,140 | 1,223 |
Comprehensive income (loss) | $ 2,788 | $ 614 |
Information Provided In Conne_6
Information Provided In Connection With Outstanding Debt Of Subsidiaries (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | $ 1,322 | $ 551 | ||
Purchases of fixed maturities available for sale | (5,561) | (5,972) | ||
Purchases of fixed maturities held to maturity | (1) | (162) | ||
Purchases of equity securities | (49) | (55) | ||
Sales of fixed maturities available for sale | 3,287 | 2,562 | ||
Proceeds From Sale Of Available For Sale Securities Debt Condensed | 3,293 | |||
Sales of equity securities | 60 | 40 | ||
Maturities and redemptions of fixed maturities available for sale | 1,831 | 1,865 | ||
Maturities and redemptions of fixed maturities held to maturity | 280 | 255 | ||
Net change in short-term investments | (39) | 731 | ||
Net derivative instruments settlements | (358) | 39 | ||
Private equity contribution | (410) | (353) | ||
Private equity distribution | 368 | 201 | ||
Capital contribution | 0 | 0 | ||
Other | (87) | (32) | ||
Net cash flows used for investing activities | (673) | (881) | ||
Dividends paid on Common Shares | (336) | (330) | ||
Common Shares repurchased | (367) | (29) | ||
Proceeds from Issuance of Long-term Debt | 0 | 2,175 | ||
Proceeds from issuance of long-term debt | 0 | (300) | ||
Proceeds from issuance of repurchase agreements | 471 | 408 | ||
Repayments of repurchase agreements | (470) | (404) | ||
Proceeds from share-based compensation plans | 35 | 34 | ||
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 | 115 | 118 | ||
Policyholder contract withdrawals | (78) | (105) | ||
Net cash flows (used for) from financing activities | (630) | 1,567 | ||
Effect of foreign currency rate changes on cash and restricted cash | 34 | 25 | ||
Net Increase (Decrease) in cash and restricted cash | 53 | 1,262 | ||
Cash and Restricted Cash - Beginning of year | 1,340 | 851 | ||
Cash and Restricted Cash - end of Year | 1,393 | 2,113 | ||
Chubb Limited (Parent Guarantor) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 307 | 24 | ||
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 | |||
Proceeds From Sale Of Available For Sale Securities Debt Condensed | 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 | ||
Capital contribution | 0 | (750) | ||
Other | 0 | 0 | ||
Net cash flows used for investing activities | 0 | (750) | ||
Dividends paid on Common Shares | (336) | (330) | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from Issuance of Long-term Debt | 0 | |||
Proceeds from issuance of long-term debt | 0 | |||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||
Repayments of repurchase agreements | 0 | 0 | ||
Proceeds from share-based compensation plans | 0 | 0 | ||
Dividend to Parent Company | 0 | 0 | ||
Advances (to) from affiliates | (266) | 656 | ||
Capital contribution | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 296 | [1] | 400 | [2] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Net cash flows (used for) from financing activities | (306) | 726 | ||
Effect of foreign currency rate changes on cash and restricted cash | 0 | (2) | ||
Net Increase (Decrease) in cash and restricted cash | 1 | (2) | ||
Cash and Restricted Cash - Beginning of year | 1 | 3 | ||
Cash and Restricted Cash - end of Year | 2 | 1 | ||
Chubb INA Holdings Inc (Subsidiary Issuer) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | (163) | 2,727 | ||
Purchases of fixed maturities available for sale | (3) | (8) | ||
Purchases of fixed maturities held to maturity | 0 | 0 | ||
Purchases of equity securities | 0 | 0 | ||
Sales of fixed maturities available for sale | 0 | |||
Proceeds From Sale Of Available For Sale Securities Debt Condensed | 0 | |||
Sales of equity securities | 0 | 0 | ||
Maturities and redemptions of fixed maturities available for sale | 6 | 3 | ||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | ||
Net change in short-term investments | (3) | (14) | ||
Net derivative instruments settlements | (28) | (7) | ||
Private equity contribution | 0 | 0 | ||
Private equity distribution | 0 | 0 | ||
Capital contribution | (110) | (3,500) | ||
Other | (12) | (3) | ||
Net cash flows used for investing activities | (150) | (3,529) | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from Issuance of Long-term Debt | 2,175 | |||
Proceeds from issuance of long-term debt | (300) | |||
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 | 308 | (95) | ||
Capital contribution | 0 | 0 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 74 | [1] | (115) | [2] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Net cash flows (used for) from financing activities | 382 | 1,665 | ||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||
Net Increase (Decrease) in cash and restricted cash | 69 | 863 | ||
Cash and Restricted Cash - Beginning of year | 2 | 1 | ||
Cash and Restricted Cash - end of Year | 71 | 864 | ||
Other Chubb Limited Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | 1,378 | 800 | ||
Purchases of fixed maturities available for sale | (5,558) | (5,964) | ||
Purchases of fixed maturities held to maturity | (1) | (162) | ||
Purchases of equity securities | (49) | (55) | ||
Sales of fixed maturities available for sale | 2,562 | |||
Proceeds From Sale Of Available For Sale Securities Debt Condensed | 3,293 | |||
Sales of equity securities | 60 | 40 | ||
Maturities and redemptions of fixed maturities available for sale | 1,825 | 1,862 | ||
Maturities and redemptions of fixed maturities held to maturity | 280 | 255 | ||
Net change in short-term investments | (36) | 745 | ||
Net derivative instruments settlements | (330) | 46 | ||
Private equity contribution | (410) | (353) | ||
Private equity distribution | 368 | 201 | ||
Capital contribution | 0 | 0 | ||
Other | (75) | (29) | ||
Net cash flows used for investing activities | (633) | (852) | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | (367) | (29) | ||
Proceeds from Issuance of Long-term Debt | 0 | |||
Proceeds from issuance of long-term debt | 0 | |||
Proceeds from issuance of repurchase agreements | 471 | 408 | ||
Repayments of repurchase agreements | (470) | (404) | ||
Proceeds from share-based compensation plans | 35 | 34 | ||
Dividend to Parent Company | (200) | (3,000) | ||
Advances (to) from affiliates | (42) | (561) | ||
Capital contribution | 110 | 4,250 | ||
Net proceeds from (payments to) affiliated notional cash pooling program | 0 | [1] | 0 | [2] |
Policyholder contract deposits | 115 | 118 | ||
Policyholder contract withdrawals | (78) | (105) | ||
Net cash flows (used for) from financing activities | (426) | 711 | ||
Effect of foreign currency rate changes on cash and restricted cash | 34 | 27 | ||
Net Increase (Decrease) in cash and restricted cash | 353 | 686 | ||
Cash and Restricted Cash - Beginning of year | 1,989 | 962 | ||
Cash and Restricted Cash - end of Year | 2,342 | 1,648 | ||
Consolidation, Eliminations [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | (200) | (3,000) | ||
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 | |||
Proceeds From Sale Of Available For Sale Securities Debt Condensed | 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 | ||
Capital contribution | 110 | 4,250 | ||
Other | 0 | 0 | ||
Net cash flows used for investing activities | 110 | 4,250 | ||
Dividends paid on Common Shares | 0 | 0 | ||
Common Shares repurchased | 0 | 0 | ||
Proceeds from Issuance of Long-term Debt | 0 | |||
Proceeds from issuance of long-term debt | 0 | |||
Proceeds from issuance of repurchase agreements | 0 | 0 | ||
Repayments of repurchase agreements | 0 | 0 | ||
Proceeds from share-based compensation plans | 0 | 0 | ||
Dividend to Parent Company | 200 | 3,000 | ||
Advances (to) from affiliates | 0 | 0 | ||
Capital contribution | (110) | (4,250) | ||
Net proceeds from (payments to) affiliated notional cash pooling program | (370) | [1] | (285) | [2] |
Policyholder contract deposits | 0 | 0 | ||
Policyholder contract withdrawals | 0 | 0 | ||
Net cash flows (used for) from financing activities | (280) | (1,535) | ||
Effect of foreign currency rate changes on cash and restricted cash | 0 | 0 | ||
Net Increase (Decrease) in cash and restricted cash | (370) | (285) | ||
Cash and Restricted Cash - Beginning of year | (652) | (115) | ||
Cash and Restricted Cash - end of Year | $ (1,022) | $ (400) | ||
[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, 2019 and December 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 March 31, 2018 and December 31, 2017, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |