Exhibit 99.1
Chubb Limited
Financial Supplement Template
for the Quarter Ended March 31, 2016
Illustration of key presentation changes
Investor Contact
Helen M. Wilson
Phone: (441) 299-9283
email: investorrelations@chubb.com
This report is for informational purposes only. It should be read in conjunction with documents filed by Chubb Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and the closing Form 8-K/A filed on March 24, 2016.
New Financial Reporting Disclosures
Effective Q1 2016, Chubb Limited will report financial results within 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. In addition, the company also redefined Corporate to include all run-off asbestos and environmental (A&E) exposures, the results of its Brandywine business, the results of its Westchester Specialty operations for 1996 and prior years, certain other mass tort exposures, and Legacy Chubb A&E and mass tort exposures. This reflects the company’s significantly larger and expanded operations subsequent to its acquisition of The Chubb Corporation on January 14, 2016. All prior periods have been revised to conform to the new segment presentation. Unless otherwise indicated, the term ‘pro forma’ is used to represent the combined company’s normal course of business without purchase accounting adjustments in order to present the underlying economics of the company’s business. Pro forma is defined as follows:
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments. Refer to the closing Form 8-K/A filed on March 24, 2016 for a description of these conforming accounting policy alignment adjustments.
A reconciliation of pro forma results as defined above to pro forma results in accordance with SEC guidance under Article 11, will be provided in the Reconciliation of non-GAAP section of the financial supplement. The Reconciliation of non-GAAP section is not provided within this template.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this financial supplement reflect Chubb’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from as indicated by such statements. For example, forward-looking statements related to financial performance including exposures, reserves and recoverables could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, currency exchange fluctuations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.
Our forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
New Disclosures
Chubb Limited
Consolidated Financial Highlights
(in millions of U.S. dollars, except share, per share data, and ratios)
(Unaudited)
Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.
As Reported | Pro Forma | |||||||||||||||||||||||||
Constant $ | Constant $ | |||||||||||||||||||||||||
Three months ended March 31 | % Change | % Change | Three months ended March 31 | % Change | % Change | |||||||||||||||||||||
1Q-16 vs. | Constant $ | 1Q-16 vs. | 1Q-16 vs. | Constant $ | 1Q-16 vs. | |||||||||||||||||||||
2016 | 2015 | 1Q-15 | 2015 (1) | 1Q-15(1) | 2016 | 2015 | 1Q-15 | 2015 (1) | 1Q-15(1) | |||||||||||||||||
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Gross premiums written | $ | 5,322 | $ | 8,700 | ||||||||||||||||||||||
Net premiums written | $ | 4,076 | $ | 7,216 | ||||||||||||||||||||||
P&C net premiums written(2) | $ | 3,585 | $ | 6,700 | ||||||||||||||||||||||
Global P&C net premiums written (2) | $ | 3,497 | $ | 6,612 | ||||||||||||||||||||||
Net premiums earned | $ | 3,927 | $ | 7,037 | ||||||||||||||||||||||
Adjusted net investment income (2) | $ | 551 | ||||||||||||||||||||||||
Operating income | $ | 745 | ||||||||||||||||||||||||
Net income | $ | 681 | ||||||||||||||||||||||||
Comprehensive income | $ | 642 | ||||||||||||||||||||||||
Operating cash flow | $ | 1,075 | ||||||||||||||||||||||||
P&C combined ratio(2) | ||||||||||||||||||||||||||
Loss and loss expense ratio | 57.1% | 59.3% | ||||||||||||||||||||||||
Underwriting and administrative expense ratio | 31.3% | 31.8% | ||||||||||||||||||||||||
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Combined ratio | 88.4% | 91.1% | ||||||||||||||||||||||||
Operating return on equity (ROE) | 10.8% | |||||||||||||||||||||||||
ROE | 9.2% | |||||||||||||||||||||||||
Operating effective tax rate(3) | 13.7% | |||||||||||||||||||||||||
Effective tax rate | 15.0% | |||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||
Operating income | $ | 2.25 | ||||||||||||||||||||||||
Net income | $ | 2.05 | ||||||||||||||||||||||||
Full quarter diluted earnings per share(4) | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||
December 31 | 1Q-16 vs | |||||||||||||||||||||||||
2015 | 4Q-15 | |||||||||||||||||||||||||
Book value per common share | $ | 89.77 | ||||||||||||||||||||||||
Book value per common share excluding foreign currency(5) | $ | 89.77 | ||||||||||||||||||||||||
Tangible book value per common share | $ | 72.25 | ||||||||||||||||||||||||
Tangible book value per common share excluding foreign currency(5) | $ | 72.25 | ||||||||||||||||||||||||
Tangible book value per common share excluding Chubb Corp. acquisition(5) | $ | 72.25 | ||||||||||||||||||||||||
Tangible book value per common share excluding acquisition and foreign currency(5) (6) | $ | 72.25 | ||||||||||||||||||||||||
Weighted average basic common shares outstanding | 328.2 | $ | 325.6 | |||||||||||||||||||||||
Weighted average diluted common shares outstanding | 331.7 | $ | 328.8 | |||||||||||||||||||||||
Total hybrid & financial debt/capitalization | 25.0% |
(1) Prior periods on a constant dollar basis.
(2) See non-GAAP financial measures(not provided within this template).
(3) Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate.
(4) Full quarter diluted earnings per share for Q1 2016 includes the combined company’s results for the first 14 days of January 2016 and includes the impact of purchase accounting adjustments.
(5) For 2016, book value per common share and tangible book value per common share exclude the impact of foreign currency movement during the quarter.
(6) For 2016, tangible book value per common share excludes the impact from goodwill and intangibles net of tax, relating to the acquisition of The Chubb Corporation.
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Financial Highlights
Chubb Limited
Consolidated Gross and Net Premiums Written by Line of Business
(in millions of U.S. dollars)
(Unaudited)
As Reported | Pro Forma | % Change Pro Forma 2Q-16 vs. Pro Forma | Constant $ Pro Forma | Constant $ % Change Pro Forma 2Q-16 vs. Pro Forma | ||||||||||||
2Q-16 | 2Q-15 | 2Q-16 | 2Q-15 | 2Q-15 | 2Q-15 | 2Q-15 | ||||||||||
Gross premiums written | ||||||||||||||||
Property and Casualty lines | ||||||||||||||||
North America Commercial P&C | ||||||||||||||||
Commercial multiple peril | ||||||||||||||||
Commercial casualty | ||||||||||||||||
Workers’ compensation | The company intends to provide supplementary line of business information beginning with the Q2 2016 earnings release | |||||||||||||||
Professional liability | ||||||||||||||||
Surety | ||||||||||||||||
Property and other short-tail lines | ||||||||||||||||
North America Agricultural | ||||||||||||||||
North America Personal P&C | ||||||||||||||||
Auto | ||||||||||||||||
Homeowners | ||||||||||||||||
Other personal | ||||||||||||||||
International | ||||||||||||||||
Professional liability | ||||||||||||||||
Surety | ||||||||||||||||
Other casualty | ||||||||||||||||
Personal lines | ||||||||||||||||
Property and other short-tail lines | ||||||||||||||||
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Total Property and Casualty lines | ||||||||||||||||
Other Lines | ||||||||||||||||
Global A&H(1) | ||||||||||||||||
Reinsurance | ||||||||||||||||
Life | ||||||||||||||||
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Total consolidated | ||||||||||||||||
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Net premiums written | ||||||||||||||||
Property and Casualty lines | ||||||||||||||||
North America Commercial P&C | ||||||||||||||||
Commercial multiple peril | ||||||||||||||||
Commercial casualty | ||||||||||||||||
Workers’ compensation | ||||||||||||||||
Professional liability | ||||||||||||||||
Surety | ||||||||||||||||
Property and other short-tail lines | ||||||||||||||||
North America Agricultural | ||||||||||||||||
North America Personal P&C | ||||||||||||||||
Auto | ||||||||||||||||
Homeowners | ||||||||||||||||
Other personal | �� | |||||||||||||||
International | ||||||||||||||||
Professional liability | ||||||||||||||||
Surety | ||||||||||||||||
Other casualty | ||||||||||||||||
Personal lines | ||||||||||||||||
Property and other short-tail lines | ||||||||||||||||
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Total Property and Casualty lines | ||||||||||||||||
Other Lines | ||||||||||||||||
Global A&H(1) | ||||||||||||||||
Reinsurance | ||||||||||||||||
Life | ||||||||||||||||
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Total consolidated | ||||||||||||||||
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(1) For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in the Global A&H line item above.
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Line of Business
Chubb Limited
Consolidated Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||
Chubb Limited Consolidated | 1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | Full Year 2015 | ||||||||||||||||||||||
Consolidated Results (Including Corporate) Excluding Life Insurance Segment(1) | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 8,151 | $ | 5,091 | $ | 5,824 | $ | 5,975 | $ | 4,800 | $ | 21,690 | ||||||||||||||||||
Net premiums written | 6,700 | 3,629 | 4,217 | 4,284 | 3,585 | 15,715 | ||||||||||||||||||||||||
Net premiums earned | 6,539 | 3,701 | 4,239 | 3,873 | 3,453 | 15,266 | ||||||||||||||||||||||||
Adjusted losses and loss expenses(1) | 3,877 | 2,146 | 2,494 | 2,282 | 1,970 | 8,892 | ||||||||||||||||||||||||
Policy acquisition costs (excluding amortization of acquired UPR) | 1,284 | 602 | 654 | 609 | 600 | 2,465 | ||||||||||||||||||||||||
Amortization of acquired UPR(2) | - | - | - | - | - | - | ||||||||||||||||||||||||
Administrative expenses | 793 | 500 | 494 | 504 | 481 | 1,979 | ||||||||||||||||||||||||
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Underwriting income | 585 | 453 | 597 | 478 | 402 | 1,930 | ||||||||||||||||||||||||
Adjusted net investment income(1) | 465 | 483 | 496 | 485 | 1,929 | |||||||||||||||||||||||||
Adjusted interest expense(1) | 64 | 68 | 71 | 68 | 271 | |||||||||||||||||||||||||
Other income (expense) - operating(3) | (6) | 12 | (1) | (2) | 3 | |||||||||||||||||||||||||
Amortization of purchased intangibles | 35 | 51 | 55 | 30 | 171 | |||||||||||||||||||||||||
Income tax expense | 97 | 140 | 136 | 119 | 492 | |||||||||||||||||||||||||
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Operating income (including Corporate) excluding Life Insurance segment | 716 | 833 | 711 | 668 | 2,928 | |||||||||||||||||||||||||
Life Insurance segment income | 64 | 64 | 77 | 77 | 282 | |||||||||||||||||||||||||
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Consolidated operating income | 780 | 897 | 788 | 745 | 3,210 | |||||||||||||||||||||||||
Chubb integration and related expenses, net of tax | (35) | (7) | - | - | (42) | |||||||||||||||||||||||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax(2) | - | - | - | - | - | |||||||||||||||||||||||||
Adjusted net realized gains (losses)(1) | (57) | (393) | 128 | (89) | (411) | |||||||||||||||||||||||||
Net realized gains (losses) related to unconsolidated entities | (17) | 25 | 33 | 26 | 67 | |||||||||||||||||||||||||
Income tax expense (benefit) on adjusted net realized gains (losses) | (12) | (6) | 7 | 1 | (10) | |||||||||||||||||||||||||
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Consolidated net income | $ | 683 | $ | 528 | $ | 942 | $ | 681 | $ | 2,834 | ||||||||||||||||||||
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% Change versus prior year period(1) | ||||||||||||||||||||||||||||||
Net premiums written | -4.6% | -0.4% | 5.5% | -2.9% | -0.5% | |||||||||||||||||||||||||
Net premiums earned | -4.4% | -0.6% | 0.8% | -1.0% | -1.3% | |||||||||||||||||||||||||
Net premiums written constant $ | 1.7% | 5.6% | 11.6% | 1.7% | 5.3% | |||||||||||||||||||||||||
Net premiums earned constant $ | 1.6% | 5.4% | 7.0% | 3.5% | 4.4% | |||||||||||||||||||||||||
Other ratios | ||||||||||||||||||||||||||||||
Net premiums written/gross premiums written(1) | 82% | 71% | 72% | 72% | 75% | 72% | ||||||||||||||||||||||||
Operating effective tax rate | 11.1% | 13.5% | 14.7% | 13.7% | 13.3% | |||||||||||||||||||||||||
P&C combined ratio(1) | ||||||||||||||||||||||||||||||
Loss and loss expense ratio | 59.3% | 58.0% | 58.8% | 58.9% | 57.1% | 58.2% | ||||||||||||||||||||||||
Policy acquisition cost ratio | 19.6% | 16.2% | 15.4% | 15.7% | 17.4% | 16.1% | ||||||||||||||||||||||||
Administrative expense ratio | 12.2% | 13.5% | 11.7% | 13.1% | 13.9% | 13.1% | ||||||||||||||||||||||||
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Combined ratio | 91.1% | 87.7% | 85.9% | 87.7% | 88.4% | 87.4% | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 89.2% | 88.4% | 89.2% | 88.4% | 89.3% | 88.8% | ||||||||||||||||||||||||
P&C expense ratio | 31.8% | 29.7% | 27.1% | 28.8% | 31.3% | 29.2% | ||||||||||||||||||||||||
P&C expense ratio excluding A&H | 29.9% | 26.3% | 23.6% | 25.5% | 27.9% | 25.7% | ||||||||||||||||||||||||
Catastrophe reinstatement premiums collected - pre-tax | $ | - | $ | (1) | $ | - | $ | - | $ | - | $ | (1) | ||||||||||||||||||
Catastrophe losses - pre-tax | $ | 315 | $ | 74 | $ | 72 | $ | 124 | $ | 51 | $ | 321 | ||||||||||||||||||
Favorable prior period development (PPD) - pre-tax | $ | (192) | $ | (100) | $ | (210) | $ | (153) | $ | (83) | $ | (546) | ||||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 57.5% | 58.5% | 62.2% | 59.7% | 58.1% | 59.7% | ||||||||||||||||||||||||
(1) See non-GAAP financial measures(not provided within this template).
(2) Purchase accounting adjustments related to the acquisition of The Chubb Corporation.
(3) Excludes portion of net realized investment gains and losses related to unconsolidated entities.
Note: See Glossary on page XX(not provided within this template) for further information on the calculation of the components of combined ratios.
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Consolidated Results
Chubb Limited
Pro Forma Segment Results - For Reference Purposes Only
(in millions of U.S. dollars)
(Unaudited)
Pro forma (excluding purchase accounting adjustments) | ||||||||||||||||||||||||||||||
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Total Consolidated | |||||||||||||||||||||||
Pro Forma Q1 2016 | ||||||||||||||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||||||||
Net premiums earned | ||||||||||||||||||||||||||||||
Adjusted Losses and loss expenses | ||||||||||||||||||||||||||||||
Policy benefits | ||||||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | ||||||||||||||||||||||||||||||
Policy acquisition costs | ||||||||||||||||||||||||||||||
Administrative expenses | ||||||||||||||||||||||||||||||
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Adjusted underwriting income (loss) | ||||||||||||||||||||||||||||||
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Adjusted combined ratio | ||||||||||||||||||||||||||||||
Adjusted combined ratio excluding catastrophe losses and PPD | ||||||||||||||||||||||||||||||
Pro Forma (excluding purchase accounting adjustments) | ||||||||||||||||||||||||||||||
North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Total | |||||||||||||||||||||||
Pro Forma Q1 2015 | ||||||||||||||||||||||||||||||
Net premiums written | $ | 2,928 | $ | 909 | $ | 88 | $ | 2,480 | $ | 295 | $ | 516 | $ | - | $ 7,216 | |||||||||||||||
Net premiums earned | 3,074 | 1,007 | 64 | 2,166 | 228 | 498 | - | 7,037 | ||||||||||||||||||||||
Adjusted Losses and loss expenses | 1,892 | 767 | 22 | 1,081 | 98 | 164 | 17 | 4,041 | ||||||||||||||||||||||
Policy benefits | - | - | - | - | - | 142 | - | 142 | ||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | - | - | - | - | - | (11) | - | (11) | ||||||||||||||||||||||
Policy acquisition costs | 473 | 220 | (4) | 542 | 53 | 113 | - | 1,397 | ||||||||||||||||||||||
Administrative expenses | 298 | 83 | (1) | 316 | 15 | 82 | 82 | 875 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 411 | $ | (63) | $ | 47 | $ | 227 | $ | 62 | $ | 8 | $ | (99) | $ 593 | |||||||||||||||
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Combined ratio | 86.6% | 106.2% | 26.4% | 89.5% | 73.0% | |||||||||||||||||||||||||
Combined ratio excluding catastrophe losses and PPD | 88.2% | 82.6% | 76.7% | 91.6% | 75.8% | |||||||||||||||||||||||||
The following table presents the reconciliation of 2016 as reported underwriting income (loss) for each segment to 2016 adjusted underwriting income (loss) shown above.
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Q1 2016 | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Total | ||||||||||||||||||||||
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Underwriting income (loss) as reported | ||||||||||||||||||||||||||||||
Add: Pre-acquisition underwriting income (loss) (14 days prior to close) | Reconciliation to as reported results | |||||||||||||||||||||||||||||
Less: amortization of acquired UPR (1) | ||||||||||||||||||||||||||||||
Add: amortization of DAC on acquired UPR(1) | ||||||||||||||||||||||||||||||
Adjusted underwriting income (loss) | ||||||||||||||||||||||||||||||
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(1) Related to the acquisition of The Chubb Corporation
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Pro forma
Chubb Limited
Consolidated Statement of Operations - As Reported Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Q1 2016 - As Reported | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | Life Insurance | Total(4) Consolidated | |||||||||
Net premiums written | ||||||||||||||||||
Net premiums earned | ||||||||||||||||||
Adjusted Losses and loss expenses (1) | ||||||||||||||||||
Policy benefits | ||||||||||||||||||
(Gains) losses from fair value changes in separate account assets(2) | ||||||||||||||||||
Policy acquisition costs (excluding amortization of acquired UPR) | ||||||||||||||||||
Amortization of acquired UPR (3) | ||||||||||||||||||
Administrative expenses | ||||||||||||||||||
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Underwriting income (loss) | ||||||||||||||||||
Adjusted net investment income(4) | ||||||||||||||||||
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Segment income | ||||||||||||||||||
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Adjusted Interest expense (4) | ||||||||||||||||||
Other income (expense)-operating (2) | ||||||||||||||||||
Amortization of purchased intangibles | ||||||||||||||||||
Income tax expense | ||||||||||||||||||
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Operating income | ||||||||||||||||||
Chubb integration and related expenses, net of tax | ||||||||||||||||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax(3) | ||||||||||||||||||
Adjusted net realized gains (losses) (1) | ||||||||||||||||||
Net realized gains (losses) related to unconsolidated entities | ||||||||||||||||||
Income tax expense (benefit) on net realized gains (losses) | ||||||||||||||||||
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Net income | ||||||||||||||||||
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P&C Combined ratio | ||||||||||||||||||
P&C Combined ratio excluding catastrophe losses and PPD |
(1) (Gains) losses on crop derivatives are reclassified from net realized gains (losses) to Losses and loss expenses for purposes of presenting North America Agricultural Insurance underwriting income.
(2) (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for segment income presentation from Other income (expense).
(3) Related to the acquisition of the Chubb Corporation.
(4) See non-GAAP financial measures (not provided within this template).
Consol P&L 2016
Chubb Limited
Consolidated Statement of Operations - As Reported Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Legacy ACE - Adjusted to Conform to New Segment Presentation | ||||||||||||||||||||||||||||||||||||
Q1 2015 |
North America | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Corporate | Total P&C | Life Insurance | Total(4) Consolidated | |||||||||||||||||||||||||||
Net premiums written | $ | 1,297 | $ | 133 | $ | 88 | $ | 1,794 | $ | 273 | $ | - | $ | 3,585 | $ | 491 | $ | 4,076 | ||||||||||||||||||
Net premiums earned | 1,380 | 146 | 64 | 1,637 | 226 | - | 3,453 | 474 | 3,927 | |||||||||||||||||||||||||||
Adjusted Losses and loss expenses (1) | 915 | 111 | 22 | 814 | 99 | 9 | 1,970 | 152 | 2,122 | |||||||||||||||||||||||||||
Policy benefits | - | - | - | - | - | - | - | 142 | 142 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets(2) | - | - | - | - | - | - | - | (11) | (11) | |||||||||||||||||||||||||||
Policy acquisition costs | 130 | 31 | (4) | 389 | 54 | - | 600 | 107 | 707 | |||||||||||||||||||||||||||
Administrative expenses | 151 | 19 | (1) | 256 | 12 | 44 | 481 | 73 | 554 | |||||||||||||||||||||||||||
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Underwriting income (loss) | 184 | (15) | 47 | 178 | 61 | (53) | 402 | 11 | 413 | |||||||||||||||||||||||||||
Net investment income | 258 | 5 | 6 | 138 | 75 | 3 | 485 | 66 | 551 | |||||||||||||||||||||||||||
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Segment income | $ | 442 | $ | (10) | $ | 53 | $ | 316 | $ | 136 | $ | (50) | $ | 887 | $ | 77 | $ | 964 | ||||||||||||||||||
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Interest expense | 68 | 68 | ||||||||||||||||||||||||||||||||||
Other income (expense)-operating (2) | (2) | (2) | ||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 30 | 30 | ||||||||||||||||||||||||||||||||||
Income tax expense | 119 | 119 | ||||||||||||||||||||||||||||||||||
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Operating income (loss) | (269) | 745 | ||||||||||||||||||||||||||||||||||
Chubb integration and related expenses, net of tax | - | - | ||||||||||||||||||||||||||||||||||
Adjusted net realized gains (losses) (1) | (89) | (89) | ||||||||||||||||||||||||||||||||||
Net realized gains (losses) related to unconsolidated entities | 26 | 26 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) on net realized gains (losses) | 1 | 1 | ||||||||||||||||||||||||||||||||||
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Net income (loss) | $ | (333) | $ | 681 | ||||||||||||||||||||||||||||||||
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P&C Combined ratio | 86.7% | 110.2% | 26.4% | 89.1% | 73.2% | 88.4% | ||||||||||||||||||||||||||||||
P&C Combined ratio excluding catastrophe losses and PPD | 88.1% | 85.3% | 76.7% | 90.3% | 75.5% | 89.3% |
(1) (Gains) losses on crop derivatives are reclassified from net realized gains (losses) to Losses and loss expenses for purposes of presenting North America Agricultural Insurance underwriting income.
(2) (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for segment income presentation from Other income (expense).
Consol P&L 2015
Chubb Limited
Global P&C Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
Global P&C includes the company’s North America Commercial P&C Insurance segment, North America Personal P&C Insurance segment, Overseas General Insurance segment, Global Reinsurance segment, and Corporate. Global P&C excludes the North America Agricultural segment.
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||||||||
Global P&C (Including Corporate and excluding Agriculture) | 1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | Full Year 2015 | ||||||||||||||||||||||||||||
Gross premiums written | $ | 8,023 | $ | 4,821 | $ | 4,581 | $ | 5,409 | $ | 4,672 | $ | 19,483 | ||||||||||||||||||||||||
Net premiums written | 6,612 | 3,487 | 3,480 | 3,905 | 3,497 | 14,369 | ||||||||||||||||||||||||||||||
Net premiums earned | 6,475 | 3,461 | 3,500 | 3,552 | 3,389 | 13,902 | ||||||||||||||||||||||||||||||
Losses and loss expenses | 3,855 | 1,968 | 1,870 | 2,009 | 1,948 | 7,795 | ||||||||||||||||||||||||||||||
Policy acquisition costs (excluding amortization of acquired UPR) | 1,288 | 594 | 612 | 586 | 604 | 2,396 | ||||||||||||||||||||||||||||||
Amortization of acquired UPR(2) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Administrative expenses | 794 | 502 | 494 | 500 | 482 | 1,978 | ||||||||||||||||||||||||||||||
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Underwriting income | 538 | 397 | 524 | 457 | 355 | 1,733 | ||||||||||||||||||||||||||||||
Adjusted net investment income (1) | 459 | 478 | 490 | 479 | 1,906 | |||||||||||||||||||||||||||||||
Adjusted interest expense (1) | 64 | 68 | 71 | 68 | 271 | |||||||||||||||||||||||||||||||
Other income (expense) - operating (3) | (6) | 12 | (1) | (2) | 3 | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 35 | 51 | 55 | 30 | 171 | |||||||||||||||||||||||||||||||
Income tax expense | 97 | 140 | 136 | 119 | 492 | |||||||||||||||||||||||||||||||
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Global P&C operating income | 654 | 755 | 684 | 615 | 2,708 | |||||||||||||||||||||||||||||||
Chubb integration and related expenses, net of tax | (35) | (7) | - | - | (42) | |||||||||||||||||||||||||||||||
Amortization of fair value adjustments of acquired invested assets and long-term debt, net of tax(2) | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net realized gains (losses) | (57) | (393) | 128 | (89) | (411) | |||||||||||||||||||||||||||||||
Net realized gains (losses) related to unconsolidated entities | (17) | 25 | 33 | 26 | 67 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) on net realized gains (losses) | (12) | (6) | 7 | 1 | (10) | |||||||||||||||||||||||||||||||
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Global P&C net income | $ | 557 | $ | 386 | $ | 838 | $ | 551 | $ | 2,332 | ||||||||||||||||||||||||||
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% Change versus prior year period | ||||||||||||||||||||||||||||||||||||
Net premiums written | -2.0% | 0.3% | 6.4% | 0.0% | 1.2% | |||||||||||||||||||||||||||||||
Net premiums earned | -2.4% | 0.0% | 1.2% | 0.1% | -0.3% | |||||||||||||||||||||||||||||||
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Net premiums written constant $ | 4.9% | 7.8% | 13.2% | 5.0% | 7.7% | |||||||||||||||||||||||||||||||
Net premiums earned constant $ | 4.3% | 7.6% | 8.0% | 4.8% | 6.2% | |||||||||||||||||||||||||||||||
Other ratios | ||||||||||||||||||||||||||||||||||||
Net premiums written/gross premiums written | 82% | 72% | 76% | 72% | 75% | 74% | ||||||||||||||||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 59.6% | 56.9% | 53.4% | 56.5% | 57.5% | 56.1% | ||||||||||||||||||||||||||||||
Policy acquisition cost ratio | 19.9% | 17.1% | 17.5% | 16.5% | 17.8% | 17.2% | ||||||||||||||||||||||||||||||
Administrative expense ratio | 12.2% | 14.5% | 14.1% | 14.1% | 14.2% | 14.2% | ||||||||||||||||||||||||||||||
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Combined ratio | 91.7% | 88.5% | 85.0% | 87.1% | 89.5% | 87.5% | ||||||||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 89.3% | 89.1% | 88.8% | 88.2% | 89.5% | 88.9% | ||||||||||||||||||||||||||||||
Expense ratio | 32.1% | 31.6% | 31.6% | 30.6% | 32.0% | 31.4% | ||||||||||||||||||||||||||||||
Expense ratio excluding A&H | 30.3% | 28.3% | 28.2% | 27.4% | 28.7% | 28.1% | ||||||||||||||||||||||||||||||
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Catastrophe reinstatement premiums collected - pre-tax | $ | - | $ | (1) | $ | - | $ | - | $ | - | $ | (1) | ||||||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 314 | $ | 73 | $ | 72 | $ | 117 | $ | 50 | $ | 312 | ||||||||||||||||||||||||
Favorable prior period development (PPD) - pre-tax | $ | (159) | $ | (93) | $ | (205) | $ | (153) | $ | (50) | $ | (501) | ||||||||||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 57.2% | 57.3% | 57.3% | 57.6% | 57.6% | 57.4% |
(1) See non-GAAP financial measures(not provided within this template).
(2) Purchase accounting adjustments related to the acquisition of The Chubb Corporation.
(3) Excludes portion of net realized investment gains and losses related to unconsolidated entities.
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Global P&C
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||
North America Commercial P&C Insurance | Full Year | |||||||||||||||||||||||||||||
1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||||||||
Gross premiums written | $ | 3,752 | $ | 2,408 | $ | 1,994 | $ | 2,070 | $ | 1,979 | $ | 8,451 | ||||||||||||||||||
Net premiums written | 2,928 | 1,557 | 1,433 | 1,428 | 1,297 | 5,715 | ||||||||||||||||||||||||
Net premiums earned | 3,074 | 1,425 | 1,410 | 1,419 | 1,380 | 5,634 | ||||||||||||||||||||||||
Losses and loss expenses | 1,892 | 917 | 913 | 916 | 915 | 3,661 | ||||||||||||||||||||||||
Policy acquisition costs (excluding amortization of acquired UPR) | 473 | 128 | 142 | 131 | 130 | 531 | ||||||||||||||||||||||||
Amortization of acquired UPR(1) | - | - | - | - | - | - | ||||||||||||||||||||||||
Administrative expenses | 298 | 162 | 154 | 154 | 151 | 621 | ||||||||||||||||||||||||
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Underwriting income | 411 | 218 | 201 | 218 | 184 | 821 | ||||||||||||||||||||||||
Adjusted net investment income | 252 | 260 | 262 | 258 | 1,032 | |||||||||||||||||||||||||
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Segment income | $ | 470 | $ | 461 | $ | 480 | $ | 442 | $ | 1,853 | ||||||||||||||||||||
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Combined ratio | ||||||||||||||||||||||||||||||
Loss and loss expense ratio | 61.6% | 64.4% | 64.7% | 64.5% | 66.3% | 65.0% | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.4% | 8.9% | 10.1% | 9.2% | 9.4% | 9.4% | ||||||||||||||||||||||||
Administrative expense ratio | 9.6% | 11.3% | 11.0% | 10.9% | 11.0% | 11.0% | ||||||||||||||||||||||||
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Combined ratio | 86.6% | 84.6% | 85.8% | 84.6% | 86.7% | 85.4% | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.2% | 88.3% | 89.3% | 88.6% | 88.1% | 88.6% | ||||||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 66 | $ | 25 | $ | 10 | $ | 41 | $ | 9 | $ | 85 | ||||||||||||||||||
Favorable prior period development (PPD) - pre-tax | $ | (115) | $ | (79) | $ | (59) | $ | (96) | $ | (30) | $ | (264) | ||||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 63.2% | 67.8% | 68.3% | 68.6% | 67.9% | 68.2% | ||||||||||||||||||||||||
% Change versus prior year period(1) | ||||||||||||||||||||||||||||||
Net premiums written | 2.1% | 2.9% | -3.3% | 0.4% | 0.5% | |||||||||||||||||||||||||
Net premiums earned | 0.5% | 2.3% | 1.4% | 2.1% | 1.6% | |||||||||||||||||||||||||
Net premiums written constant $ | ||||||||||||||||||||||||||||||
Net premiums earned constant $ | ||||||||||||||||||||||||||||||
Other ratios | ||||||||||||||||||||||||||||||
Net premiums written/gross premiums written | 78% | 65% | 72% | 69% | 66% | 68% |
(1) Related to the acquisition of The Chubb Corporation
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
NA Commercial
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||
North America Personal P&C Insurance | Full Year | |||||||||||||||||||||||||||||
1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||||||||
Gross premiums written | $ | 978 | $ | 314 | $ | 378 | $ | 835 | $ | 146 | $ | 1,673 | ||||||||||||||||||
Net premiums written | 909 | 234 | 278 | 547 | 133 | 1,192 | ||||||||||||||||||||||||
Net premiums earned | 1,007 | 261 | 272 | 269 | 146 | 948 | ||||||||||||||||||||||||
Losses and loss expenses | 767 | 144 | 179 | 156 | 111 | 590 | ||||||||||||||||||||||||
Policy acquisition costs (excluding amortization of acquired UPR) | 220 | 26 | 13 | (1) | 31 | 69 | ||||||||||||||||||||||||
Amortization of acquired UPR (1) | - | - | - | - | - | - | ||||||||||||||||||||||||
Administrative expenses | 83 | 34 | 36 | 34 | 19 | 123 | ||||||||||||||||||||||||
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Underwriting income (loss) | (63) | 57 | 44 | 80 | (15) | 166 | ||||||||||||||||||||||||
Adjusted net investment income | 6 | 7 | 7 | 5 | 25 | |||||||||||||||||||||||||
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Segment income (loss) | $ | 63 | $ | 51 | $ | 87 | $ | (10) | $ | 191 | ||||||||||||||||||||
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Combined ratio | ||||||||||||||||||||||||||||||
Loss and loss expense ratio | 76.2% | 55.2% | 65.8% | 57.9% | 76.4% | 62.3% | ||||||||||||||||||||||||
Policy acquisition cost ratio | 21.9% | 10.1% | 4.9% | -0.3% | 21.0% | 7.3% | ||||||||||||||||||||||||
Administrative expense ratio | 8.1% | 13.1% | 13.0% | 13.0% | 12.8% | 13.0% | ||||||||||||||||||||||||
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Combined ratio | 106.2% | 78.4% | 83.7% | 70.6% | 110.2% | 82.6% | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 82.6% | 77.5% | 70.5% | 65.5% | 85.3% | 73.2% | ||||||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 243 | $ | 2 | $ | 12 | $ | 13 | $ | 36 | $ | 63 | ||||||||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax | $ | (5) | $ | - | $ | 25 | $ | - | $ | - | $ | 25 | ||||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 52.6% | 54.3% | 52.6% | 52.7% | 51.5% | 52.9% | ||||||||||||||||||||||||
% Change versus prior year period (1) | ||||||||||||||||||||||||||||||
Net premiums written | 62.7% | 86.0% | 247.0% | 5.0% | 106.4% | |||||||||||||||||||||||||
Net premiums earned | 82.5% | 92.6% | 92.5% | 6.7% | 69.2% | |||||||||||||||||||||||||
Net premiums written constant $ | ||||||||||||||||||||||||||||||
Net premiums earned constant $ | ||||||||||||||||||||||||||||||
Other ratios | ||||||||||||||||||||||||||||||
Net premiums written/gross premiums written | 93% | 75% | 74% | 65% | 91% | 71% |
(1) Related to the acquisition of The Chubb Corporation
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
NA Personal
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
North America Agricultural Insurance | Full Year | |||||||||||||||||||||
1Q-16 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||
Gross premiums written | $ | 270 | $ | 1,243 | $ | 566 | $ | 128 | $ | 2,207 | ||||||||||||
Net premiums written | 142 | 737 | 379 | 88 | 1,346 | |||||||||||||||||
Net premiums earned | 240 | 739 | 321 | 64 | 1,364 | |||||||||||||||||
Losses and loss expenses(1) | 178 | 624 | 273 | 22 | 1,097 | |||||||||||||||||
Policy acquisition costs | 8 | 42 | 23 | (4) | 69 | |||||||||||||||||
Administrative expenses | (2) | - | 4 | (1) | 1 | |||||||||||||||||
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Underwriting income | 56 | 73 | 21 | 47 | 197 | |||||||||||||||||
Net investment income | 6 | 5 | 6 | 6 | 23 | |||||||||||||||||
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Segment income | $ | 62 | $ | 78 | $ | 27 | $ | 53 | $ | 220 | ||||||||||||
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Combined ratio | ||||||||||||||||||||||
Loss and loss expense ratio | 73.9% | 84.5% | 85.3% | 33.3% | 80.4% | |||||||||||||||||
Policy acquisition cost ratio | 3.4% | 5.7% | 7.2% | -6.0% | 5.1% | |||||||||||||||||
Administrative expense ratio | -0.9% | 0.0% | 1.1% | -0.9% | 0.0% | |||||||||||||||||
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Combined ratio | 76.4% | 90.2% | 93.6% | 26.4% | 85.5% | |||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 79.2% | 90.8% | 91.4% | 76.7% | 88.2% | |||||||||||||||||
Catastrophe losses - pre-tax | $ | 1 | $ | - | $ | 7 | $ | 1 | $ | 9 | ||||||||||||
Favorable prior period development (PPD) - pre-tax | $ | (7) | $ | (5) | $ | - | $ | (33) | $ | (45) | ||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 75.4% | 85.1% | 83.1% | 83.2% | 82.8% | |||||||||||||||||
% Change versus prior year period | ||||||||||||||||||||||
Net premiums written | -41.9% | -3.5% | -2.4% | -54.6% | -15.3% | |||||||||||||||||
Net premiums earned | -26.2% | -3.6% | -2.9% | -37.2% | -10.6% | |||||||||||||||||
Other ratios | ||||||||||||||||||||||
Net premiums written/gross premiums written | 52% | 59% | 67% | 69% | 61% |
(1) Include gains/losses on crop derivatives
NA Agriculture
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||||||||||||||||
Overseas General Insurance | Full Year | |||||||||||||||||||||||||||||||||||||||||||
1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||||||||||||||||||||||
Gross premiums written(1) | $ | 2,972 | $ | 1,990 | $ | 2,019 | $ | 2,212 | $ | 2,255 | $ | 8,476 | ||||||||||||||||||||||||||||||||
Net premiums written(1) | 2,480 | 1,587 | 1,584 | 1,669 | 1,794 | 6,634 | ||||||||||||||||||||||||||||||||||||||
Net premiums earned | 2,166 | 1,575 | 1,615 | 1,644 | 1,637 | 6,471 | ||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 1,081 | 748 | 674 | 816 | 814 | 3,052 | ||||||||||||||||||||||||||||||||||||||
Policy acquisition costs (excluding amortization of acquired UPR) | 542 | 391 | 405 | 396 | 389 | 1,581 | ||||||||||||||||||||||||||||||||||||||
Amortization of acquired UPR (1) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Administrative expenses | 316 | 241 | 246 | 254 | 256 | 997 | ||||||||||||||||||||||||||||||||||||||
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Underwriting income | 227 | 195 | 290 | 178 | 178 | 841 | ||||||||||||||||||||||||||||||||||||||
Adjusted net investment income | 125�� | 132 | 139 | 138 | 534 | |||||||||||||||||||||||||||||||||||||||
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Segment income | $ | 320 | $ | 422 | $ | 317 | $ | 316 | $ | 1,375 | ||||||||||||||||||||||||||||||||||
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Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 49.9% | 47.5% | 41.7% | 49.7% | 49.7% | 47.2% | ||||||||||||||||||||||||||||||||||||||
Policy acquisition cost ratio | 25.0% | 24.8% | 25.1% | 24.1% | 23.8% | 24.4% | ||||||||||||||||||||||||||||||||||||||
Administrative expense ratio | 14.6% | 15.3% | 15.2% | 15.4% | 15.6% | 15.4% | ||||||||||||||||||||||||||||||||||||||
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Combined ratio | 89.5% | 87.6% | 82.0% | 89.2% | 89.1% | 87.0% | ||||||||||||||||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 91.6% | 89.7% | 90.5% | 89.8% | 90.3% | 90.1% | ||||||||||||||||||||||||||||||||||||||
Catastrophe reinstatement premiums - pre-tax | $ | - | $ | (2) | $ | - | $ | - | $ | - | $ | (2) | ||||||||||||||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 5 | $ | 40 | $ | 39 | $ | 58 | $ | 5 | $ | 142 | ||||||||||||||||||||||||||||||||
Favorable prior period development (PPD) - pre-tax | $ | (50) | $ | (74) | $ | (177) | $ | (68) | $ | (24) | $ | (343) | ||||||||||||||||||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 52.0% | 49.6% | 50.2% | 50.3% | 50.9% | 50.3% | ||||||||||||||||||||||||||||||||||||||
% Change versus prior year period | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | -9.3% | -7.9% | -5.1% | 1.3% | -5.2% | |||||||||||||||||||||||||||||||||||||||
Net premiums earned | -10.5% | -6.4% | -3.9% | 1.6% | -4.9% | |||||||||||||||||||||||||||||||||||||||
Net premiums written constant $ | 3.6% | 6.1% | 7.6% | 11.0% | 7.1% | |||||||||||||||||||||||||||||||||||||||
Net premiums earned constant $ | 1.7% | 7.8% | 9.4% | 11.2% | 7.5% | |||||||||||||||||||||||||||||||||||||||
Other ratios | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums written/gross premiums written | 83% | 80% | 78% | 75% | 80% | 78% | ||||||||||||||||||||||||||||||||||||||
As Reported | Pro Forma | |||||||||||||||||||||||||||||||||||||||||||
Constant $ | Constant $ | Constant $ | Constant $ | |||||||||||||||||||||||||||||||||||||||||
(1) Production by Region | 1Q-16 | 1Q-15 | % Growth | 1Q-15(3) | % Growth | 1Q-16 | 1Q-15 | % Growth | 1Q-15(3) | % Growth | ||||||||||||||||||||||||||||||||||
Gross premiums written | ||||||||||||||||||||||||||||||||||||||||||||
Europe | $ | 1,056 | $ | 1,454 | ||||||||||||||||||||||||||||||||||||||||
Latin America | 573 | 732 | ||||||||||||||||||||||||||||||||||||||||||
Asia | 521 | 681 | ||||||||||||||||||||||||||||||||||||||||||
Other | 105 | 105 | ||||||||||||||||||||||||||||||||||||||||||
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Overseas General Insurance | $ | 2,255 | $ | 2,972 | ||||||||||||||||||||||||||||||||||||||||
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Net Premiums Written | ||||||||||||||||||||||||||||||||||||||||||||
Europe | $ | 780 | $ | 1,163 | ||||||||||||||||||||||||||||||||||||||||
Latin America | 459 | 611 | ||||||||||||||||||||||||||||||||||||||||||
Asia | 452 | 603 | ||||||||||||||||||||||||||||||||||||||||||
Other | 103 | 103 | ||||||||||||||||||||||||||||||||||||||||||
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Overseas General Insurance | $ | 1,794 | $ | 2,480 | ||||||||||||||||||||||||||||||||||||||||
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(1) Related to the acquisition of The Chubb Corporation
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Overseas General Insurance
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||
Global Reinsurance | Full Year | |||||||||||||||||||||||||||||
1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||||||||
Gross premiums written | $ | 321 | $ | 109 | $ | 190 | $ | 292 | $ | 292 | $ | 883 | ||||||||||||||||||
Net premiums written | 295 | 109 | 185 | 261 | 273 | 828 | ||||||||||||||||||||||||
Net premiums earned | 228 | 200 | 203 | 220 | 226 | 849 | ||||||||||||||||||||||||
Losses and loss expenses | 98 | 99 | 20 | 72 | 99 | 290 | ||||||||||||||||||||||||
Policy acquisition costs | 53 | 48 | 52 | 60 | 54 | 214 | ||||||||||||||||||||||||
Administrative expenses | 15 | 12 | 12 | 13 | 12 | 49 | ||||||||||||||||||||||||
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Underwriting income | 62 | 41 | 119 | 75 | 61 | 296 | ||||||||||||||||||||||||
Net investment income | 70 | 76 | 79 | 75 | 300 | |||||||||||||||||||||||||
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Segment Income | $ | 111 | $ | 195 | $ | 154 | $ | 136 | $ | 596 | ||||||||||||||||||||
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Combined ratio | ||||||||||||||||||||||||||||||
Loss and loss expense ratio | 42.8% | 49.7% | 9.6% | 32.9% | 43.6% | 34.2% | ||||||||||||||||||||||||
Policy acquisition cost ratio | 23.4% | 24.1% | 25.4% | 27.2% | 24.0% | 25.2% | ||||||||||||||||||||||||
Administrative expense ratio | 6.8% | 6.0% | 6.2% | 5.6% | 5.6% | 5.8% | ||||||||||||||||||||||||
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Combined ratio | 73.0% | 79.8% | 41.2% | 65.7% | 73.2% | 65.2% | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 75.8% | 76.6% | 75.3% | 79.6% | 75.5% | 76.8% | ||||||||||||||||||||||||
Catastrophe reinstatement premiums collected - pre-tax | $ | - | $ | 1 | $ | - | $ | - | $ | - | $ | 1 | ||||||||||||||||||
Catastrophe losses - pre-tax | $ | - | $ | 6 | $ | 11 | $ | 5 | $ | - | $ | 22 | ||||||||||||||||||
Favorable prior period development (PPD) - pre-tax | $ | (6) | $ | - | $ | (78) | $ | (36) | $ | (5) | $ | (119) | ||||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 45.6% | 46.5% | 44.3% | 46.7% | 46.0% | 45.9% | ||||||||||||||||||||||||
% Change versus prior year period | ||||||||||||||||||||||||||||||
Net premiums written | -22.1% | -11.5% | -5.9% | -11.4% | -11.4% | |||||||||||||||||||||||||
Net premiums earned | -11.3% | -20.4% | -15.5% | -20.6% | -17.2% | |||||||||||||||||||||||||
Net premiums written constant $ | -20.2% | -9.5% | -3.9% | -9.1% | -9.3% | |||||||||||||||||||||||||
Net premiums earned constant $ | -9.0% | -18.1% | -13.2% | -19.0% | -15.1% | |||||||||||||||||||||||||
Other ratios | ||||||||||||||||||||||||||||||
Net premiums written/gross premiums written | 92% | 100% | 97% | 90% | 93% | 94% |
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Global Reinsurance
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||
Life Insurance | Full Year | |||||||||||||||||||||||||||||
1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||||||||
Gross premiums written | $ | 549 | $ | 548 | $ | 522 | $ | 529 | $ | 522 | $ | 2,121 | ||||||||||||||||||
Net premiums written | 517 | 515 | 492 | 500 | 491 | 1,998 | ||||||||||||||||||||||||
Net premiums earned | 498 | 506 | 480 | 487 | 474 | 1,947 | ||||||||||||||||||||||||
Losses and loss expenses | 164 | 159 | 153 | 137 | 152 | 601 | ||||||||||||||||||||||||
Policy benefits(1) | 142 | 159 | 89 | 153 | 142 | 543 | ||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets(1) | (11) | (13) | 49 | (6) | (11) | 19 | ||||||||||||||||||||||||
Policy acquisition costs | 113 | 134 | 117 | 118 | 107 | 476 | ||||||||||||||||||||||||
Administrative expenses | 82 | 70 | 74 | 74 | 73 | 291 | ||||||||||||||||||||||||
Adjusted net investment income | 66 | 67 | 66 | 66 | 66 | 265 | ||||||||||||||||||||||||
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Life insurance segment income(2) | $ | 74 | $ | 64 | $ | 64 | $ | 77 | $ | 77 | $ | 282 | ||||||||||||||||||
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% Change versus prior year period | ||||||||||||||||||||||||||||||
Net premiums written | -1.6% | -0.8% | 0.3% | -0.6% | -0.7% | |||||||||||||||||||||||||
Net premiums earned | 1.4% | -1.9% | -0.8% | -1.9% | -0.8% | |||||||||||||||||||||||||
Net premiums written constant $(3) | 3.7% | 4.4% | 4.1% | 2.4% | 3.7% | |||||||||||||||||||||||||
Net premiums earned constant $ | 6.8% | 3.4% | 3.0% | 0.9% | 3.5% | |||||||||||||||||||||||||
(1) (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified from Other income (expense), recorded in corporate, for purposes of presenting Life segment income in the Life Insurance segment. The offsetting movement in the separate account liabilities is included in Policy benefits.
(2) We assess the performance of our Life Insurance business based on Life Insurance segment income which includes (Gains) losses from fair value changes in separate account assets.
(3) International life insurance net premiums written and deposits breakdown (excludes Combined North American and Life reinsurance businesses):
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As Reported | ||||||||||||||||||||||||||||||
Constant $ | ||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||
Constant $ | 1Q-16 vs. | |||||||||||||||||||||||||||||
1Q-16 | 1Q-15(5) | 1Q-15(5) | ||||||||||||||||||||||||||||
International life insurance net premiums written | ||||||||||||||||||||||||||||||
International life insurance deposits(4) | ||||||||||||||||||||||||||||||
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(4) Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.
(5) Prior periods on a constant dollar basis.
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Life Insurance
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
As Reported | Pro Forma | Legacy ACE | ||||||||||||||||||||||||||||
Corporate | Full Year | |||||||||||||||||||||||||||||
1Q-16 | 1Q-16 | 1Q-15 | 4Q-15 | 3Q-15 | 2Q-15 | 1Q-15 | 2015 | |||||||||||||||||||||||
Gross premiums written | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Net premiums written | - | - | - | - | - | - | ||||||||||||||||||||||||
Net premiums earned | - | - | - | - | - | - | ||||||||||||||||||||||||
Losses and loss expenses | 17 | 60 | 84 | 49 | 9 | 202 | ||||||||||||||||||||||||
Policy acquisition costs | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||
Administrative expenses | 82 | 53 | 46 | 45 | 44 | 188 | ||||||||||||||||||||||||
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Underwriting loss | (99) | (114) | (130) | (94) | (53) | (391) | ||||||||||||||||||||||||
Adjusted net investment income (1) | 6 | 3 | 3 | 3 | 15 | |||||||||||||||||||||||||
Adjusted interest expense (1) | 64 | 68 | 71 | 68 | 271 | |||||||||||||||||||||||||
Other income (expense) - operating(1) | (6) | 12 | (1) | (2) | 3 | |||||||||||||||||||||||||
Amortization of purchased intangibles | 35 | 51 | 55 | 30 | 171 | |||||||||||||||||||||||||
Income tax expense | 97 | 140 | 136 | 119 | 492 | |||||||||||||||||||||||||
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Operating loss | (310) | (374) | (354) | (269) | (1,307) | |||||||||||||||||||||||||
Chubb integration and related expenses, net of tax | (35) | (7) | - | - | (42) | |||||||||||||||||||||||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax (1) | - | - | - | - | - | |||||||||||||||||||||||||
Adjusted net realized gains (losses)(1) | (57) | (393) | 128 | (89) | (411) | |||||||||||||||||||||||||
Net realized gains (losses) related to unconsolidated entities | (17) | 25 | 33 | 26 | 67 | |||||||||||||||||||||||||
Income tax expense (benefit) on adjusted net realized gains (losses) | (12) | (6) | 7 | 1 | (10) | |||||||||||||||||||||||||
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Net income | $ | (407) | $ | (743) | $ | (200) | $ | (333) | $ | (1,683) | ||||||||||||||||||||
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Unfavorable prior period development (PPD) - pre-tax | $ | 17 | $ | 60 | $ | 84 | $ | 47 | $ | 9 | $ | 200 |
(1) See non-GAAP financial measures (not provided within this template).
2016 Pro forma results: The combined company results inclusive of the first 14 days of January 2016. The 2016 and 2015 pro forma underwriting results do not include any impact from purchase accounting adjustments.
2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results after conforming accounting policy alignment adjustments.
Corporate
Chubb Limited
Net Realized and Unrealized Gains (Losses)
(in millions of U.S. dollars)
(Unaudited)
Three months ended March 31, 2016 | ||||||||||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact Pre-tax | Tax Benefit (Expense) | Net Impact After-tax | ||||||||||||||
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Fixed maturities | ||||||||||||||||||
Fixed income derivatives | ||||||||||||||||||
Public equity | ||||||||||||||||||
Private equity | ||||||||||||||||||
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Total investment portfolio | ||||||||||||||||||
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges | ||||||||||||||||||
Foreign exchange | ||||||||||||||||||
Partially-owned entities | ||||||||||||||||||
Other | ||||||||||||||||||
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Net (losses) | ||||||||||||||||||
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Legacy ACE | ||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||
Net Realized Gains (Losses) (6) | Net Unrealized Gains (Losses) | Net Impact | Tax Benefit (Expense) | Net Impact After-tax | ||||||||||||||
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Fixed maturities | $ | (4 | ) | $ | 438 | $ | 434 | |||||||||||
Fixed income derivatives | 1 | - | 1 | |||||||||||||||
Public equity | 1 | 18 | 19 | |||||||||||||||
Private equity | 13 | (12 | ) | 1 | ||||||||||||||
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Total investment portfolio | 11 | 444 | 455 | |||||||||||||||
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges | (57 | ) | - | (57 | ) | |||||||||||||
Foreign exchange | (31 | ) | (421 | ) | (452 | ) | ||||||||||||
Partially-owned entities | 13 | - | 13 | |||||||||||||||
Other | 1 | 13 | 14 | |||||||||||||||
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Net gains (losses) | $ | (63 | ) | $ | 36 | $ | (27 | ) | $ | 76 | $ (103) | |||||||
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Net Gains (Losses)