Exhibit 99.1
Chubb Limited
Pro Forma Segment Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Pro Forma* (excluding purchase accounting adjustments) | ||||||||||||||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 3,752 | $ | 978 | $ | 128 | $ | 2,972 | $ | 321 | $ | — | $ | 8,151 | $ | 549 | $ | 8,700 | ||||||||||||||||||
Net premiums written | 2,928 | 909 | 88 | 2,480 | 295 | — | 6,700 | 516 | 7,216 | |||||||||||||||||||||||||||
Net premiums earned | 3,074 | 1,007 | 64 | 2,166 | 228 | — | 6,539 | 498 | 7,037 | |||||||||||||||||||||||||||
Losses and loss expenses | 1,892 | 767 | 22 | 1,081 | 98 | 17 | 3,877 | 164 | 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 | — | 1,284 | 113 | 1,397 | ||||||||||||||||||||||||||
Administrative expenses | 298 | 83 | (1 | ) | 316 | 15 | 82 | 793 | 82 | 875 | ||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 411 | $ | (63 | ) | $ | 47 | $ | 227 | $ | 62 | $ | (99 | ) | $ | 585 | $ | 8 | $ | 593 | ||||||||||||||||
Loss and loss expense ratio | 61.6 | % | 76.2 | % | 33.3 | % | 49.9 | % | 42.8 | % | 59.3 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.4 | % | 21.9 | % | -6.0 | % | 25.0 | % | 23.4 | % | 19.6 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.6 | % | 8.1 | % | -0.9 | % | 14.6 | % | 6.8 | % | 12.2 | % | ||||||||||||||||||||||||
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Combined ratio | 86.6 | % | 106.2 | % | 26.4 | % | 89.5 | % | 73.0 | % | 91.1 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.2 | % | 82.6 | % | 76.7 | % | 91.6 | % | 75.8 | % | 89.2 | % | ||||||||||||||||||||||||
Gross premiums written C$(1) | $ | 3,743 | $ | 973 | $ | 128 | $ | 2,670 | $ | 313 | $ | 7,827 | $ | 525 | $ | 8,352 | ||||||||||||||||||||
Net premiums written C$(1) | $ | 2,923 | $ | 904 | $ | 88 | $ | 2,219 | $ | 288 | $ | 6,422 | $ | 494 | $ | 6,916 | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 66 | $ | 243 | $ | 1 | $ | 5 | $ | — | $ | — | $ | 315 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (115 | ) | $ | (5 | ) | $ | (33 | ) | $ | (50 | ) | $ | (6 | ) | $ | 17 | $ | (192 | ) | ||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 63.2 | % | 52.6 | % | 83.2 | % | 52.0 | % | 45.6 | % | 57.5 | % |
(1) | In constant dollars. The Q1 2015 results were translated using the comparable current period (2016) local currency exchange rates. See non-GAAP financial measures. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Q1 2015 Pro Forma | Page 1 |
Chubb Limited
Pro Forma Segment Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Pro Forma* (excluding purchase accounting adjustments) | ||||||||||||||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Three months ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 4,048 | $ | 1,872 | $ | 566 | $ | 2,713 | $ | 298 | $ | — | $ | 9,497 | $ | 553 | $ | 10,050 | ||||||||||||||||||
Net premiums written | 3,253 | 1,550 | 379 | 2,136 | 266 | — | 7,584 | 524 | 8,108 | |||||||||||||||||||||||||||
Net premiums earned | 3,114 | 1,160 | 321 | 2,170 | 227 | — | 6,992 | 511 | 7,503 | |||||||||||||||||||||||||||
Losses and loss expenses | 1,808 | 676 | 273 | 1,080 | 73 | 60 | 3,970 | 148 | 4,118 | |||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | — | — | 153 | 153 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||||||||
Policy acquisition costs | 492 | 199 | 23 | 558 | 61 | — | 1,333 | 123 | 1,456 | |||||||||||||||||||||||||||
Administrative expenses | 297 | 102 | 4 | 305 | 15 | 68 | 791 | 83 | 874 | |||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 517 | $ | 183 | $ | 21 | $ | 227 | $ | 78 | $ | (128 | ) | $ | 898 | $ | 10 | $ | 908 | |||||||||||||||||
Loss and loss expense ratio | 58.0 | % | 58.2 | % | 85.3 | % | 49.8 | % | 32.5 | % | 56.8 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.8 | % | 17.2 | % | 7.2 | % | 25.7 | % | 26.3 | % | 19.0 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.6 | % | 8.9 | % | 1.1 | % | 14.0 | % | 6.2 | % | 11.3 | % | ||||||||||||||||||||||||
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Combined ratio | 83.4 | % | 84.3 | % | 93.6 | % | 89.5 | % | 65.0 | % | 87.1 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.1 | % | 77.5 | % | 91.4 | % | 90.7 | % | 80.2 | % | 88.0 | % | ||||||||||||||||||||||||
Gross premiums written C$(1) | $ | 4,038 | $ | 1,868 | $ | 566 | $ | 2,569 | $ | 296 | $ | 9,337 | $ | 537 | $ | 9,874 | ||||||||||||||||||||
Net premiums written C$(1) | $ | 3,242 | $ | 1,546 | $ | 379 | $ | 2,020 | $ | 265 | $ | 7,452 | $ | 510 | $ | 7,962 | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 100 | $ | 95 | $ | 7 | $ | 66 | $ | 6 | $ | — | $ | 274 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (246 | ) | $ | (17 | ) | $ | — | $ | (90 | ) | $ | (41 | ) | $ | 58 | $ | (336 | ) | |||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 62.8 | % | 51.5 | % | 83.1 | % | 50.9 | % | 47.7 | % | 57.7 | % | ||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Six months ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 7,800 | $ | 2,850 | $ | 694 | $ | 5,685 | $ | 619 | $ | — | $ | 17,648 | $ | 1,102 | $ | 18,750 | ||||||||||||||||||
Net premiums written | 6,181 | 2,459 | 467 | 4,616 | 561 | — | 14,284 | 1,040 | 15,324 | |||||||||||||||||||||||||||
Net premiums earned | 6,188 | 2,167 | 385 | 4,336 | 455 | — | 13,531 | 1,009 | 14,540 | |||||||||||||||||||||||||||
Losses and loss expenses | 3,700 | 1,443 | 295 | 2,161 | 171 | 77 | 7,847 | 312 | 8,159 | |||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | — | — | 295 | 295 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | — | — | — | (17 | ) | (17 | ) | |||||||||||||||||||||||||
Policy acquisition costs | 965 | 419 | 19 | 1,100 | 114 | — | 2,617 | 236 | 2,853 | |||||||||||||||||||||||||||
Administrative expenses | 595 | 185 | 3 | 621 | 30 | 150 | 1,584 | 165 | 1,749 | |||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 928 | $ | 120 | $ | 68 | $ | 454 | $ | 140 | $ | (227 | ) | $ | 1,483 | $ | 18 | $ | 1,501 | |||||||||||||||||
Loss and loss expense ratio | 59.8 | % | 66.6 | % | 76.6 | % | 49.9 | % | 37.7 | % | 58.0 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.6 | % | 19.3 | % | 5.0 | % | 25.4 | % | 24.8 | % | 19.3 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.6 | % | 8.6 | % | 0.7 | % | 14.2 | % | 6.5 | % | 11.7 | % | ||||||||||||||||||||||||
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Combined ratio | 85.0 | % | 94.5 | % | 82.3 | % | 89.5 | % | 69.0 | % | 89.0 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.2 | % | 79.9 | % | 88.9 | % | 91.2 | % | 78.0 | % | 88.6 | % | ||||||||||||||||||||||||
Gross premiums written C$(1) | $ | 7,781 | $ | 2,841 | $ | 694 | $ | 5,239 | $ | 609 | $ | 17,164 | $ | 1,062 | $ | 18,226 | ||||||||||||||||||||
Net premiums written C$(1) | $ | 6,165 | $ | 2,450 | $ | 467 | $ | 4,239 | $ | 553 | $ | 13,874 | $ | 1,004 | $ | 14,878 | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 166 | $ | 338 | $ | 8 | $ | 71 | $ | 6 | $ | — | $ | 589 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (361 | ) | $ | (22 | ) | $ | (33 | ) | $ | (140 | ) | $ | (47 | ) | $ | 75 | $ | (528 | ) | ||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 63.0 | % | 52.0 | % | 83.1 | % | 51.5 | % | 46.6 | % | 57.6 | % |
(1) | In constant dollars. The estimated Q2 and six months ended June 30, 2015 constant dollar amounts were translated using the comparable current periods’ (2016) local currency exchange rates. See non-GAAP financial measures. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Q2 2015 Pro Forma | Page 2 |
Chubb Limited
Pro Forma Segment Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Pro Forma* (excluding purchase accounting adjustments) | ||||||||||||||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Three months ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 3,906 | $ | 1,368 | $ | 1,243 | $ | 2,526 | $ | 191 | $ | — | $ | 9,234 | $ | 546 | $ | 9,780 | ||||||||||||||||||
Net premiums written | 3,186 | 1,210 | 737 | 2,057 | 185 | — | 7,375 | 515 | 7,890 | |||||||||||||||||||||||||||
Net premiums earned | 3,156 | 1,147 | 739 | 2,146 | 212 | — | 7,400 | 503 | 7,903 | |||||||||||||||||||||||||||
Losses and loss expenses | 1,798 | 629 | 624 | 948 | 21 | 114 | 4,134 | 165 | 4,299 | |||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | — | — | 89 | 89 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | — | — | — | 49 | 49 | |||||||||||||||||||||||||||
Policy acquisition costs | 517 | 211 | 42 | 563 | 52 | — | 1,385 | 120 | 1,505 | |||||||||||||||||||||||||||
Administrative expenses | 288 | 98 | — | 290 | 13 | 84 | 773 | 83 | 856 | |||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 553 | $ | 209 | $ | 73 | $ | 345 | $ | 126 | $ | (198 | ) | $ | 1,108 | $ | (3 | ) | $ | 1,105 | ||||||||||||||||
Loss and loss expense ratio | 57.0 | % | 54.9 | % | 84.5 | % | 44.2 | % | 9.7 | % | 55.9 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 16.3 | % | 18.4 | % | 5.7 | % | 26.2 | % | 24.3 | % | 18.7 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.2 | % | 8.5 | % | 0.0 | % | 13.5 | % | 6.3 | % | 10.4 | % | ||||||||||||||||||||||||
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Combined ratio | 82.5 | % | 81.8 | % | 90.2 | % | 83.9 | % | 40.3 | % | 85.0 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.4 | % | 77.6 | % | 90.8 | % | 92.7 | % | 75.4 | % | 88.9 | % | ||||||||||||||||||||||||
Gross premiums written C$(1) | $ | 3,906 | $ | 1,368 | $ | 1,243 | $ | 2,437 | $ | 187 | $ | 9,141 | $ | 537 | $ | 9,678 | ||||||||||||||||||||
Net premiums written C$(1) | $ | 3,186 | $ | 1,210 | $ | 737 | $ | 1,976 | $ | 183 | $ | 7,292 | $ | 507 | $ | 7,799 | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 18 | $ | 30 | $ | — | $ | 42 | $ | 11 | $ | — | $ | 101 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (202 | ) | $ | 19 | $ | (5 | ) | $ | (231 | ) | $ | (84 | ) | $ | 114 | $ | (389 | ) | |||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 62.9 | % | 50.7 | % | 85.1 | % | 52.9 | % | 45.3 | % | 59.8 | % | ||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Nine months ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 11,706 | $ | 4,218 | $ | 1,937 | $ | 8,211 | $ | 810 | $ | — | $ | 26,882 | $ | 1,648 | $ | 28,530 | ||||||||||||||||||
Net premiums written | 9,367 | 3,669 | 1,204 | 6,673 | 746 | — | 21,659 | 1,555 | 23,214 | |||||||||||||||||||||||||||
Net premiums earned | 9,344 | 3,314 | 1,124 | 6,482 | 667 | — | 20,931 | 1,512 | 22,443 | |||||||||||||||||||||||||||
Losses and loss expenses | 5,498 | 2,072 | 919 | 3,109 | 192 | 191 | 11,981 | 477 | 12,458 | |||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | — | — | 384 | 384 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | — | — | — | 32 | 32 | |||||||||||||||||||||||||||
Policy acquisition costs | 1,482 | 630 | 61 | 1,663 | 166 | — | 4,002 | 356 | 4,358 | |||||||||||||||||||||||||||
Administrative expenses | 883 | 283 | 3 | 911 | 43 | 234 | 2,357 | 248 | 2,605 | |||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 1,481 | $ | 329 | $ | 141 | $ | 799 | $ | 266 | $ | (425 | ) | $ | 2,591 | $ | 15 | $ | 2,606 | |||||||||||||||||
Loss and loss expense ratio | 58.8 | % | 62.5 | % | 81.8 | % | 48.0 | % | 28.8 | % | 57.2 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.9 | % | 19.1 | % | 5.4 | % | 25.7 | % | 24.6 | % | 19.1 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.5 | % | 8.5 | % | 0.3 | % | 14.0 | % | 6.5 | % | 11.3 | % | ||||||||||||||||||||||||
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Combined ratio | 84.2 | % | 90.1 | % | 87.5 | % | 87.7 | % | 59.9 | % | 87.6 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.2 | % | 79.1 | % | 90.1 | % | 91.7 | % | 77.2 | % | 88.7 | % | ||||||||||||||||||||||||
Gross premiums written C$(1) | $ | 11,687 | $ | 4,209 | $ | 1,937 | $ | 7,676 | $ | 796 | $ | 26,305 | $ | 1,599 | $ | 27,904 | ||||||||||||||||||||
Net premiums written C$(1) | $ | 9,351 | $ | 3,660 | $ | 1,204 | $ | 6,215 | $ | 736 | $ | 21,166 | $ | 1,511 | $ | 22,677 | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 184 | $ | 368 | $ | 8 | $ | 113 | $ | 17 | $ | — | $ | 690 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (563 | ) | $ | (3 | ) | $ | (38 | ) | $ | (371 | ) | $ | (131 | ) | $ | 189 | $ | (917 | ) | ||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 63.0 | % | 51.5 | % | 84.4 | % | 51.9 | % | 46.2 | % | 58.4 | % |
(1) | In constant dollars. The estimated Q3 and Q4 2015 constant dollar amounts were translated using May 2016 local currency exchange rates. These estimated constant dollar amounts will be updated in future filings. See non-GAAP financial measures. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Q3 2015 Pro Forma | Page 3 |
Chubb Limited
Pro Forma Segment Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Pro Forma* (excluding purchase accounting adjustments) | ||||||||||||||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Three months ended December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 4,237 | $ | 1,226 | $ | 270 | $ | 2,515 | $ | 111 | $ | — | $ | 8,359 | $ | 572 | $ | 8,931 | ||||||||||||||||||
Net premiums written | 3,247 | 1,093 | 142 | 2,078 | 111 | — | 6,671 | 538 | 7,209 | |||||||||||||||||||||||||||
Net premiums earned | 3,140 | 1,140 | 240 | 2,084 | 208 | — | 6,812 | 531 | 7,343 | |||||||||||||||||||||||||||
Losses and loss expenses | 1,844 | 597 | 178 | 1,011 | 103 | 102 | 3,835 | 171 | 4,006 | |||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | — | — | 159 | 159 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | — | — | — | (13 | ) | (13 | ) | |||||||||||||||||||||||||
Policy acquisition costs | 498 | 228 | 8 | 547 | 48 | 1 | 1,330 | 138 | 1,468 | |||||||||||||||||||||||||||
Administrative expenses | 304 | 96 | (2 | ) | 287 | 12 | 83 | 780 | 80 | 860 | ||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 494 | $ | 219 | $ | 56 | $ | 239 | $ | 45 | $ | (186 | ) | $ | 867 | $ | (4 | ) | $ | 863 | ||||||||||||||||
Loss and loss expense ratio | 58.7 | % | 52.4 | % | 73.9 | % | 48.5 | % | 49.2 | % | 56.3 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.9 | % | 20.0 | % | 3.4 | % | 26.3 | % | 23.6 | % | 19.5 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.6 | % | 8.5 | % | -0.9 | % | 13.7 | % | 5.8 | % | 11.5 | % | ||||||||||||||||||||||||
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Combined ratio | 84.2 | % | 80.9 | % | 76.4 | % | 88.5 | % | 78.6 | % | 87.3 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.5 | % | 80.9 | % | 79.2 | % | 91.2 | % | 77.8 | % | 88.6 | % | ||||||||||||||||||||||||
Gross premiums written C$ (1) | $ | 4,240 | $ | 1,228 | $ | 270 | $ | 2,508 | $ | 110 | $ | 8,356 | $ | 569 | $ | 8,925 | ||||||||||||||||||||
Net premiums written C$ (1) | $ | 3,250 | $ | 1,095 | $ | 142 | $ | 2,067 | $ | 110 | $ | 6,664 | $ | 534 | $ | 7,198 | ||||||||||||||||||||
Catastrophe reinstatement premiums collected (expensed) - pre-tax | $ | — | $ | — | $ | — | $ | (2 | ) | $ | 1 | $ | — | $ | (1 | ) | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 84 | $ | 15 | $ | 1 | $ | 49 | $ | 9 | $ | — | $ | 158 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (220 | ) | $ | (15 | ) | $ | (7 | ) | $ | (106 | ) | $ | (7 | ) | $ | 102 | $ | (253 | ) | ||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 62.9 | % | 52.4 | % | 75.4 | % | 51.2 | % | 48.4 | % | 57.6 | % | ||||||||||||||||||||||||
North America | North America | North America | Overseas | |||||||||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | Total P&C | Life Insurance | Consolidated | ||||||||||||||||||||||||||||
Twelve months ended December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 15,943 | $ | 5,444 | $ | 2,207 | $ | 10,726 | $ | 921 | $ | — | $ | 35,241 | $ | 2,220 | $ | 37,461 | ||||||||||||||||||
Net premiums written | 12,614 | 4,762 | 1,346 | 8,751 | 857 | �� | — | 28,330 | 2,093 | 30,423 | ||||||||||||||||||||||||||
Net premiums earned | 12,484 | 4,454 | 1,364 | 8,566 | 875 | — | 27,743 | 2,043 | 29,786 | |||||||||||||||||||||||||||
Losses and loss expenses | 7,342 | 2,669 | 1,097 | 4,120 | 295 | 293 | 15,816 | 648 | 16,464 | |||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | — | — | 543 | 543 | |||||||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | — | — | — | — | — | — | — | 19 | 19 | |||||||||||||||||||||||||||
Policy acquisition costs | 1,980 | 858 | 69 | 2,210 | 214 | 1 | 5,332 | 494 | 5,826 | |||||||||||||||||||||||||||
Administrative expenses | 1,187 | 379 | 1 | 1,198 | 55 | 317 | 3,137 | 328 | 3,465 | |||||||||||||||||||||||||||
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Underwriting income (loss) | $ | 1,975 | $ | 548 | $ | 197 | $ | 1,038 | $ | 311 | $ | (611 | ) | $ | 3,458 | $ | 11 | $ | 3,469 | |||||||||||||||||
Loss and loss expense ratio | 58.8 | % | 59.9 | % | 80.4 | % | 48.1 | % | 33.7 | % | 57.0 | % | ||||||||||||||||||||||||
Policy acquisition cost ratio | 15.9 | % | 19.3 | % | 5.1 | % | 25.8 | % | 24.4 | % | 19.2 | % | ||||||||||||||||||||||||
Administrative expense ratio | 9.5 | % | 8.5 | % | 0.0 | % | 14.0 | % | 6.3 | % | 11.3 | % | ||||||||||||||||||||||||
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Combined ratio | 84.2 | % | 87.7 | % | 85.5 | % | 87.9 | % | 64.4 | % | 87.5 | % | ||||||||||||||||||||||||
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Combined ratio excluding catastrophe losses and PPD | 88.3 | % | 79.5 | % | 88.2 | % | 91.5 | % | 77.3 | % | 88.7 | % | ||||||||||||||||||||||||
Gross premiums written C$(1) | $ | 15,927 | $ | 5,437 | $ | 2,207 | $ | 10,184 | $ | 906 | $ | 34,661 | $ | 2,168 | $ | 36,829 | ||||||||||||||||||||
Net premiums written C$(1) | $ | 12,601 | $ | 4,755 | $ | 1,346 | $ | 8,282 | $ | 846 | $ | 27,830 | $ | 2,045 | $ | 29,875 | ||||||||||||||||||||
Catastrophe reinstatement premiums collected (expensed) - pre-tax | $ | — | $ | — | $ | — | $ | (2 | ) | $ | 1 | $ | — | $ | (1 | ) | ||||||||||||||||||||
Catastrophe losses - pre-tax | $ | 268 | $ | 383 | $ | 9 | $ | 162 | $ | 26 | $ | — | $ | 848 | ||||||||||||||||||||||
Prior period development (PPD) - (favorable) unfavorable - pre-tax | $ | (783 | ) | $ | (18 | ) | $ | (45 | ) | $ | (477 | ) | $ | (138 | ) | $ | 291 | $ | (1,170 | ) | ||||||||||||||||
Loss and loss expense ratio excluding catastrophe losses and PPD | 62.9 | % | 51.7 | % | 82.8 | % | 51.8 | % | 46.7 | % | 58.2 | % |
(1) | In constant dollars. The estimated Q3 and Q4 2015 constant dollar amounts were translated using May 2016 local currency exchange rates. These estimated constant dollar amounts will be updated in future filings. See non-GAAP financial measures. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Q4 2015 Pro Forma | Page 4 |
Chubb Limited
Non-GAAP Financial Measures - 1
(in millions of U.S. dollars)
(Unaudited)
Regulation G - Non-GAAP Financial Measures
We provide financial measures such as gross premiums written and net premiums written on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior periods results using the same local currency exchange rates as the comparable current period.
Pro forma measures presented throughout this document are prepared exclusive of purchase accounting (PGAAP) adjustments in order to present the underlying profitability of our insurance business. We believe that excluding these adjustments provides visibility and comparability into our results.
The following table presents the reconciliation of Pro Forma underwriting income for the three months ended March 31, 2015 excluding purchase accounting adjustments, as shown on page 1 of this exhibit, to Pro Forma results calculated in accordance with SEC guidance under Article 11:
As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
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Three months ended March 31, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 4,076 | $ | 3,106 | $ | 34 | $ | 7,216 | $ | 7,216 | ||||||||||||||||||
Net premiums earned | 3,927 | 3,105 | 5 | 7,037 | 7,037 | |||||||||||||||||||||||
Losses and loss expenses | 2,122 | 1,920 | (1 | ) | 4,041 | 4,041 | ||||||||||||||||||||||
Policy benefits | 142 | — | — | 142 | 142 | |||||||||||||||||||||||
(Gains) losses from fair value | (11 | ) | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||
Policy acquisition costs | 707 | 626 | 64 | 1,397 | (543 | ) | 854 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 674 | 674 | ||||||||||||||||||||||
Administrative expenses | 554 | 354 | (33 | ) | 875 | 875 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 413 | $ | 205 | $ | (25 | ) | $ | 593 | $ | 462 | |||||||||||||||||
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(1) | As if acquisition occurred on January 1, 2015. |
(2) | Based on SEC guidance under Article 11. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Reconciliation Non-GAAP 1 | Page 5 |
Chubb Limited
Non-GAAP Financial Measures - 2
(in millions of U.S. dollars)
(Unaudited)
The following tables present the reconciliation of Pro Forma underwriting income for the three and six months ended June 30, 2015 excluding purchase accounting adjustments, as shown on page 2 of this exhibit, to Pro Forma results calculated in accordance with SEC guidance under Article 11:
As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
Three months ended June 30, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 4,784 | $ | 3,309 | $ | 15 | $ | 8,108 | $ | 8,108 | ||||||||||||||||||
Net premiums earned | 4,360 | 3,133 | 10 | 7,503 | 7,503 | |||||||||||||||||||||||
Losses and loss expenses | 2,419 | 1,707 | (8 | ) | 4,118 | 4,118 | ||||||||||||||||||||||
Policy benefits | 153 | — | — | 153 | 153 | |||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | (6 | ) | — | — | (6 | ) | (6 | ) | ||||||||||||||||||||
Policy acquisition costs | 727 | 652 | 77 | 1,456 | (395 | ) | 1,061 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 489 | 489 | ||||||||||||||||||||||
Administrative expenses | 578 | 346 | (50 | ) | 874 | 874 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 489 | $ | 428 | $ | (9 | ) | $ | 908 | $ | 814 | |||||||||||||||||
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As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
Six months ended June 30, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 8,860 | $ | 6,415 | $ | 49 | $ | 15,324 | $ | 15,324 | ||||||||||||||||||
Net premiums earned | 8,287 | 6,238 | 15 | 14,540 | 14,540 | |||||||||||||||||||||||
Losses and loss expenses | 4,541 | 3,627 | (9 | ) | 8,159 | 8,159 | ||||||||||||||||||||||
Policy benefits | 295 | — | — | 295 | 295 | |||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | (17 | ) | — | — | (17 | ) | (17 | ) | ||||||||||||||||||||
Policy acquisition costs | 1,434 | 1,278 | 141 | 2,853 | (938 | ) | 1,915 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 1,163 | 1,163 | ||||||||||||||||||||||
Administrative expenses | 1,132 | 700 | (83 | ) | 1,749 | 1,749 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 902 | $ | 633 | $ | (34 | ) | $ | 1,501 | $ | 1,276 | |||||||||||||||||
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(1) | As if acquisition occurred on January 1, 2015. |
(2) | Based on SEC guidance under Article 11. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Reconciliation Non-GAAP 2 | Page 6 |
Chubb Limited
Non-GAAP Financial Measures - 3
(in millions of U.S. dollars)
(Unaudited)
The following tables present the reconciliation of Pro Forma underwriting income for the three and nine months ended September 30, 2015 excluding purchase accounting adjustments, as shown on page 3 of this exhibit, to Pro Forma results calculated in accordance with SEC guidance under Article 11:
As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
Three months ended September 30, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 4,709 | $ | 3,171 | $ | 10 | $ | 7,890 | $ | 7,890 | ||||||||||||||||||
Net premiums earned | 4,719 | 3,166 | 18 | 7,903 | 7,903 | |||||||||||||||||||||||
Losses and loss expenses | 2,647 | 1,633 | 19 | 4,299 | 4,299 | |||||||||||||||||||||||
Policy benefits | 89 | — | — | 89 | 89 | |||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | 49 | — | — | 49 | 49 | |||||||||||||||||||||||
Policy acquisition costs | 771 | 663 | 71 | 1,505 | (247 | ) | 1,258 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 288 | 288 | ||||||||||||||||||||||
Administrative expenses | 568 | 345 | (57 | ) | 856 | 856 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 595 | $ | 525 | $ | (15 | ) | $ | 1,105 | $ | 1,064 | |||||||||||||||||
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As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
Nine months ended September 30, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 13,569 | $ | 9,586 | $ | 59 | $ | 23,214 | $ | 23,214 | ||||||||||||||||||
Net premiums earned | 13,006 | 9,404 | 33 | 22,443 | 22,443 | |||||||||||||||||||||||
Losses and loss expenses | 7,188 | 5,260 | 10 | 12,458 | 12,458 | |||||||||||||||||||||||
Policy benefits | 384 | — | — | 384 | 384 | |||||||||||||||||||||||
(Gains) losses from fair value changes in separate account assets | 32 | — | — | 32 | 32 | |||||||||||||||||||||||
Policy acquisition costs | 2,205 | 1,941 | 212 | 4,358 | (1,185 | ) | 3,173 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 1,451 | 1,451 | ||||||||||||||||||||||
Administrative expenses | 1,700 | 1,045 | (140 | ) | 2,605 | 2,605 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 1,497 | $ | 1,158 | $ | (49 | ) | $ | 2,606 | $ | 2,340 | |||||||||||||||||
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(1) | As if acquisition occurred on January 1, 2015. |
(2) | Based on SEC guidance under Article 11. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Reconciliation Non-GAAP 3 | Page 7 |
Chubb Limited
Non-GAAP Financial Measures - 4
(in millions of U.S. dollars)
(Unaudited)
The following tables present the reconciliation of Pro Forma underwriting income for the three and twelve months ended December 31, 2015 excluding purchase accounting adjustments, as shown on page 4 of this exhibit, to Pro Forma results calculated in accordance with SEC guidance under Article 11:
As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
Three months ended December 31, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 4,144 | $ | 3,047 | $ | 18 | $ | 7,209 | $ | 7,209 | ||||||||||||||||||
Net premiums earned | 4,207 | 3,114 | 22 | 7,343 | 7,343 | |||||||||||||||||||||||
Losses and loss expenses | 2,305 | 1,693 | 8 | 4,006 | 4,006 | |||||||||||||||||||||||
Policy benefits | 159 | — | — | 159 | 159 | |||||||||||||||||||||||
(Gains) losses from fair value | (13 | ) | — | — | (13 | ) | (13 | ) | ||||||||||||||||||||
Policy acquisition costs | 736 | 652 | 80 | 1,468 | (99 | ) | 1,369 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 99 | 99 | ||||||||||||||||||||||
Administrative expenses | 570 | 334 | (44 | ) | 860 | 860 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 450 | $ | 435 | $ | (22 | ) | $ | 863 | $ | 863 | |||||||||||||||||
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As Reported | PGAAP adjustments (1) | |||||||||||||||||||||||||||
Accounting | Acquisition | UPR | SEC | |||||||||||||||||||||||||
policy | expense | intangible | Pro Forma | |||||||||||||||||||||||||
Legacy ACE | Legacy Chubb | alignment | Pro forma* | elimination | amortization | 2015 (2) | ||||||||||||||||||||||
Twelve months ended December 31, 2015 | ||||||||||||||||||||||||||||
Net premiums written | $ | 17,713 | $ | 12,633 | $ | 77 | $ | 30,423 | $ | 30,423 | ||||||||||||||||||
Net premiums earned | 17,213 | 12,518 | 55 | 29,786 | 29,786 | |||||||||||||||||||||||
Losses and loss expenses | 9,493 | 6,953 | 18 | 16,464 | 16,464 | |||||||||||||||||||||||
Policy benefits | 543 | — | — | 543 | 543 | |||||||||||||||||||||||
(Gains) losses from fair value | 19 | — | — | 19 | 19 | |||||||||||||||||||||||
Policy acquisition costs | 2,941 | 2,593 | 292 | 5,826 | (1,284 | ) | 4,542 | |||||||||||||||||||||
Amortization of acquired UPR intangible | — | — | — | — | 1,550 | 1,550 | ||||||||||||||||||||||
Administrative expenses | 2,270 | 1,379 | (184 | ) | 3,465 | 3,465 | ||||||||||||||||||||||
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Underwriting income (loss) | $ | 1,947 | $ | 1,593 | $ | (71 | ) | $ | 3,469 | $ | 3,203 | |||||||||||||||||
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(1) | As if acquisition occurred on January 1, 2015. |
(2) | Based on SEC guidance under Article 11. |
* | 2015 Pro forma results: Legacy ACE plus Legacy Chubb historical results. For comparative purposes, the company reclassified certain income and expense items in the 2015 reported amounts of Legacy Chubb to be on the same basis as Legacy ACE results. |
Reconciliation Non-GAAP 4 | Page 8 |