☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Switzerland | 98-0091805 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Shares, par value CHF 24.15 per share | CB | New York Stock Exchange | ||||||||||||
Guarantee of Chubb INA Holdings Inc. 0.30% Senior Notes due 2024 | CB/24A | New York Stock Exchange | ||||||||||||
Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2027 | CB/27 | New York Stock Exchange | ||||||||||||
Guarantee of Chubb INA Holdings Inc. 1.55% Senior Notes due 2028 | CB/28 | New York Stock Exchange | ||||||||||||
Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2029 | CB/29A | New York Stock Exchange | ||||||||||||
Guarantee of Chubb INA Holdings Inc. 1.40% Senior Notes due 2031 | CB/31 | New York Stock Exchange | ||||||||||||
Guarantee of Chubb INA Holdings Inc. 2.50% Senior Notes due 2038 | CB/38A | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||
Emerging growth company | ☐ |
Part I. | FINANCIAL INFORMATION | Page | |||||||||
Item 1. | |||||||||||
Note 1. | |||||||||||
Note 2. | |||||||||||
Note 3. | |||||||||||
Note 4. | |||||||||||
Note | |||||||||||
Note 6. | |||||||||||
Note | |||||||||||
Note | |||||||||||
Note | |||||||||||
Note | |||||||||||
Note | |||||||||||
Note | |||||||||||
Note | |||||||||||
Note | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Part II. | OTHER INFORMATION | ||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. |
ITEM 1. Financial Statements |
September 30 | December 31 | ||||||||||
(in millions of U.S. dollars, except share and per share data) | 2020 | 2019 | |||||||||
Assets | |||||||||||
Investments | |||||||||||
Fixed maturities available for sale, at fair value, net of valuation allowance - $34 at September 30, 2020 (amortized cost – $85,201 and $82,580) | $ | 89,852 | $ | 85,488 | |||||||
Fixed maturities held to maturity, at amortized cost, net of valuation allowance - $45 at September 30, 2020 (fair value – $12,473 and $13,005) | 11,651 | 12,581 | |||||||||
Equity securities, at fair value | 3,088 | 812 | |||||||||
Short-term investments, at fair value (amortized cost – $4,662 and $4,291) | 4,660 | 4,291 | |||||||||
Other investments, at fair value | 6,796 | 6,062 | |||||||||
Total investments | 116,047 | 109,234 | |||||||||
Cash | 1,707 | 1,537 | |||||||||
Restricted cash | 166 | 109 | |||||||||
Securities lending collateral | 1,851 | 994 | |||||||||
Accrued investment income | 862 | 867 | |||||||||
Insurance and reinsurance balances receivable | 10,588 | 10,357 | |||||||||
Reinsurance recoverable on losses and loss expenses, net of valuation allowance – $320 and $316 | 15,670 | 15,181 | |||||||||
Reinsurance recoverable on policy benefits | 203 | 197 | |||||||||
Deferred policy acquisition costs | 5,275 | 5,242 | |||||||||
Value of business acquired | 286 | 306 | |||||||||
Goodwill | 15,254 | 15,296 | |||||||||
Other intangible assets | 5,849 | 6,063 | |||||||||
Prepaid reinsurance premiums | 2,760 | 2,647 | |||||||||
Investments in partially-owned insurance companies | 2,534 | 1,332 | |||||||||
Other assets | 8,734 | 7,581 | |||||||||
Total assets | $ | 187,786 | $ | 176,943 | |||||||
Liabilities | |||||||||||
Unpaid losses and loss expenses | $ | 67,905 | $ | 62,690 | |||||||
Unearned premiums | 17,502 | 16,771 | |||||||||
Future policy benefits | 5,955 | 5,814 | |||||||||
Insurance and reinsurance balances payable | 6,420 | 6,184 | |||||||||
Securities lending payable | 1,851 | 994 | |||||||||
Accounts payable, accrued expenses, and other liabilities | 13,074 | 11,773 | |||||||||
Deferred tax liabilities | 815 | 804 | |||||||||
Repurchase agreements | 1,413 | 1,416 | |||||||||
Short-term debt | 1,300 | 1,299 | |||||||||
Long-term debt | 14,830 | 13,559 | |||||||||
Trust preferred securities | 308 | 308 | |||||||||
Total liabilities | 131,373 | 121,612 | |||||||||
Commitments and contingencies (refer to Note 8) | |||||||||||
Shareholders’ equity | |||||||||||
Common Shares (CHF 24.15 par value; 477,605,264 and 479,783,864 shares issued; 451,376,194 and 451,971,567 shares outstanding) | 11,064 | 11,121 | |||||||||
Common Shares in treasury (26,229,070 and 27,812,297 shares) | (3,541) | (3,754) | |||||||||
Additional paid-in capital | 10,115 | 11,203 | |||||||||
Retained earnings | 36,919 | 36,142 | |||||||||
Accumulated other comprehensive income (AOCI) | 1,856 | 619 | |||||||||
Total shareholders’ equity | 56,413 | 55,331 | |||||||||
Total liabilities and shareholders’ equity | $ | 187,786 | $ | 176,943 |
September 30 | December 31 | ||||||
(in millions of U.S. dollars, except share and per share data) | 2019 | 2018 | |||||
Assets | |||||||
Investments | |||||||
Fixed maturities available for sale, at fair value (amortized cost – $82,036 and $79,323) (includes hybrid financial instruments of $5 and $9) | $ | 85,044 | $ | 78,470 | |||
Fixed maturities held to maturity, at amortized cost (fair value – $13,096 and $13,259) | 12,622 | 13,435 | |||||
Equity securities, at fair value and cost | 722 | 770 | |||||
Short-term investments, at fair value (amortized cost – $2,838 and $3,016) | 2,835 | 3,016 | |||||
Other investments, at fair value and cost | 5,955 | 5,277 | |||||
Total investments | 107,178 | 100,968 | |||||
Cash | 1,478 | 1,247 | |||||
Restricted cash | 111 | 93 | |||||
Securities lending collateral | 962 | 1,926 | |||||
Accrued investment income | 857 | 883 | |||||
Insurance and reinsurance balances receivable | 10,403 | 10,075 | |||||
Reinsurance recoverable on losses and loss expenses | 15,527 | 15,993 | |||||
Reinsurance recoverable on policy benefits | 199 | 202 | |||||
Deferred policy acquisition costs | 5,148 | 4,922 | |||||
Value of business acquired | 274 | 295 | |||||
Goodwill | 15,230 | 15,271 | |||||
Other intangible assets | 6,148 | 6,143 | |||||
Prepaid reinsurance premiums | 2,691 | 2,544 | |||||
Investments in partially-owned insurance companies | 1,064 | 678 | |||||
Other assets | 7,878 | 6,531 | |||||
Total assets | $ | 175,148 | $ | 167,771 | |||
Liabilities | |||||||
Unpaid losses and loss expenses | $ | 63,012 | $ | 62,960 | |||
Unearned premiums | 16,571 | 15,532 | |||||
Future policy benefits | 5,738 | 5,506 | |||||
Insurance and reinsurance balances payable | 6,341 | 6,437 | |||||
Securities lending payable | 962 | 1,926 | |||||
Accounts payable, accrued expenses, and other liabilities | 12,167 | 10,472 | |||||
Deferred tax liabilities | 766 | 304 | |||||
Repurchase agreements | 1,416 | 1,418 | |||||
Short-term debt | 10 | 509 | |||||
Long-term debt | 13,285 | 12,087 | |||||
Trust preferred securities | 308 | 308 | |||||
Total liabilities | 120,576 | 117,459 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity | |||||||
Common Shares (CHF 24.15 par value; 479,783,864 shares issued; 453,533,642 and 459,203,378 shares outstanding) | 11,121 | 11,121 | |||||
Common Shares in treasury (26,250,222 and 20,580,486 shares) | (3,504 | ) | (2,618 | ) | |||
Additional paid-in capital | 11,465 | 12,557 | |||||
Retained earnings | 34,969 | 31,700 | |||||
Accumulated other comprehensive income (loss) (AOCI) | 521 | (2,448 | ) | ||||
Total shareholders’ equity | 54,572 | 50,312 | |||||
Total liabilities and shareholders’ equity | $ | 175,148 | $ | 167,771 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except per share data) | 2019 | 2018 | 2019 | 2018 | (in millions of U.S. dollars, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 8,622 | $ | 8,110 | $ | 24,278 | $ | 23,229 | Net premiums written | $ | 9,078 | $ | 8,622 | $ | 25,410 | $ | 24,278 | |||||||||||||||||||||
Increase in unearned premiums | (295 | ) | (202 | ) | (923 | ) | (630 | ) | Increase in unearned premiums | (313) | (295) | (723) | (923) | |||||||||||||||||||||||||
Net premiums earned | 8,327 | 7,908 | 23,355 | 22,599 | Net premiums earned | 8,765 | 8,327 | 24,687 | 23,355 | |||||||||||||||||||||||||||||
Net investment income | 873 | 823 | 2,568 | 2,457 | Net investment income | 840 | 873 | 2,528 | 2,568 | |||||||||||||||||||||||||||||
Net realized gains (losses): | Net realized gains (losses): | |||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment (OTTI) losses gross | (54 | ) | (14 | ) | (81 | ) | (19 | ) | Other-than-temporary impairment (OTTI) losses gross | 0 | (54) | 0 | (81) | |||||||||||||||||||||||||
Portion of OTTI losses recognized in other comprehensive income (OCI) | 30 | 3 | 31 | 3 | Portion of OTTI losses recognized in other comprehensive income (OCI) | 0 | 30 | 0 | 31 | |||||||||||||||||||||||||||||
Net OTTI losses recognized in income | (24 | ) | (11 | ) | (50 | ) | (16 | ) | Net OTTI losses recognized in income | 0 | (24) | 0 | (50) | |||||||||||||||||||||||||
Net realized gains (losses) excluding OTTI losses | (131 | ) | 30 | (425 | ) | 51 | Net realized gains (losses) excluding OTTI losses | (141) | (131) | (1,069) | (425) | |||||||||||||||||||||||||||
Total net realized gains (losses) (includes $(11), $(38), $(43) and $(142) reclassified from AOCI) | (155 | ) | 19 | (475 | ) | 35 | ||||||||||||||||||||||||||||||||
Total net realized gains (losses) (includes $49, $(11), $(303), and $(43) reclassified from AOCI) | Total net realized gains (losses) (includes $49, $(11), $(303), and $(43) reclassified from AOCI) | (141) | (155) | (1,069) | (475) | |||||||||||||||||||||||||||||||||
Total revenues | 9,045 | 8,750 | 25,448 | 25,091 | Total revenues | 9,464 | 9,045 | 26,146 | 25,448 | |||||||||||||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 5,052 | 4,868 | 13,865 | 13,457 | Losses and loss expenses | 5,835 | 5,052 | 16,897 | 13,865 | |||||||||||||||||||||||||||||
Policy benefits | 158 | 127 | 515 | 428 | Policy benefits | 198 | 158 | 550 | 515 | |||||||||||||||||||||||||||||
Policy acquisition costs | 1,603 | 1,504 | 4,611 | 4,432 | Policy acquisition costs | 1,645 | 1,603 | 4,853 | 4,611 | |||||||||||||||||||||||||||||
Administrative expenses | 752 | 719 | 2,220 | 2,158 | Administrative expenses | 733 | 752 | 2,201 | 2,220 | |||||||||||||||||||||||||||||
Interest expense | 138 | 164 | 418 | 488 | Interest expense | 130 | 138 | 390 | 418 | |||||||||||||||||||||||||||||
Other (income) expense | (57 | ) | (145 | ) | (326 | ) | (307 | ) | Other (income) expense | (485) | (57) | (372) | (326) | |||||||||||||||||||||||||
Amortization of purchased intangibles | 76 | 83 | 229 | 253 | Amortization of purchased intangibles | 72 | 76 | 217 | 229 | |||||||||||||||||||||||||||||
Chubb integration expenses | 2 | 16 | 9 | 39 | Chubb integration expenses | 0 | 2 | 0 | 9 | |||||||||||||||||||||||||||||
Total expenses | 7,724 | 7,336 | 21,541 | 20,948 | Total expenses | 8,128 | 7,724 | 24,736 | 21,541 | |||||||||||||||||||||||||||||
Income before income tax | 1,321 | 1,414 | 3,907 | 4,143 | Income before income tax | 1,336 | 1,321 | 1,410 | 3,907 | |||||||||||||||||||||||||||||
Income tax expense (benefit) (includes nil, $(4), $(2) and $(19) on reclassified unrealized gains and losses) | 230 | 183 | 626 | 536 | ||||||||||||||||||||||||||||||||||
Income tax expense (includes $7, NaN, $(35), and $(2) on reclassified unrealized gains and losses) | Income tax expense (includes $7, NaN, $(35), and $(2) on reclassified unrealized gains and losses) | 142 | 230 | 295 | 626 | |||||||||||||||||||||||||||||||||
Net income | $ | 1,091 | $ | 1,231 | $ | 3,281 | $ | 3,607 | Net income | $ | 1,194 | $ | 1,091 | $ | 1,115 | $ | 3,281 | |||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||
Unrealized appreciation (depreciation) | $ | 694 | $ | (251 | ) | $ | 3,791 | $ | (2,063 | ) | ||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | |||||||||||||||||||||||||||||||||||||
Unrealized appreciation | Unrealized appreciation | $ | 687 | $ | 694 | $ | 1,456 | $ | 3,791 | |||||||||||||||||||||||||||||
Reclassification adjustment for net realized (gains) losses included in net income | 11 | 38 | 43 | 142 | Reclassification adjustment for net realized (gains) losses included in net income | (49) | 11 | 303 | 43 | |||||||||||||||||||||||||||||
705 | (213 | ) | 3,834 | (1,921 | ) | 638 | 705 | 1,759 | 3,834 | |||||||||||||||||||||||||||||
Change in: | Change in: | |||||||||||||||||||||||||||||||||||||
Cumulative foreign currency translation adjustment | (193 | ) | (482 | ) | (143 | ) | (659 | ) | Cumulative foreign currency translation adjustment | 246 | (193) | (168) | (143) | |||||||||||||||||||||||||
Postretirement benefit liability adjustment | (17 | ) | (21 | ) | (62 | ) | (61 | ) | Postretirement benefit liability adjustment | (23) | (17) | (59) | (62) | |||||||||||||||||||||||||
Other comprehensive income (loss), before income tax | 495 | (716 | ) | 3,629 | (2,641 | ) | ||||||||||||||||||||||||||||||||
Income tax (expense) benefit related to OCI items | (113 | ) | 77 | (660 | ) | 356 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 382 | (639 | ) | 2,969 | (2,285 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive income, before income tax | Other comprehensive income, before income tax | 861 | 495 | 1,532 | 3,629 | |||||||||||||||||||||||||||||||||
Income tax expense related to OCI items | Income tax expense related to OCI items | (103) | (113) | (295) | (660) | |||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | 758 | 382 | 1,237 | 2,969 | |||||||||||||||||||||||||||||||||
Comprehensive income | $ | 1,473 | $ | 592 | $ | 6,250 | $ | 1,322 | Comprehensive income | $ | 1,952 | $ | 1,473 | $ | 2,352 | $ | 6,250 | |||||||||||||||||||||
Earnings per share | Earnings per share | |||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 2.40 | $ | 2.66 | $ | 7.18 | $ | 7.76 | Basic earnings per share | $ | 2.64 | $ | 2.40 | $ | 2.47 | $ | 7.18 | |||||||||||||||||||||
Diluted earnings per share | $ | 2.38 | $ | 2.64 | $ | 7.13 | $ | 7.71 | Diluted earnings per share | $ | 2.63 | $ | 2.38 | $ | 2.46 | $ | 7.13 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | (in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Common Shares | Common Shares | |||||||||||||||||||||||||||||||||||||
Balance – beginning and end of period | $ | 11,121 | $ | 11,121 | $ | 11,121 | $ | 11,121 | ||||||||||||||||||||||||||||||
Balance – beginning of period | Balance – beginning of period | $ | 11,121 | $ | 11,121 | $ | 11,121 | $ | 11,121 | |||||||||||||||||||||||||||||
Cancellation of treasury shares | Cancellation of treasury shares | (57) | 0 | (57) | 0 | |||||||||||||||||||||||||||||||||
Balance – end of period | Balance – end of period | 11,064 | 11,121 | 11,064 | 11,121 | |||||||||||||||||||||||||||||||||
Common Shares in treasury | Common Shares in treasury | |||||||||||||||||||||||||||||||||||||
Balance – beginning of period | (3,093 | ) | (2,040 | ) | (2,618 | ) | (1,944 | ) | Balance – beginning of period | (3,866) | (3,093) | (3,754) | (2,618) | |||||||||||||||||||||||||
Common Shares repurchased | (478 | ) | (379 | ) | (1,221 | ) | (703 | ) | Common Shares repurchased | 0 | (478) | (326) | (1,221) | |||||||||||||||||||||||||
Net shares redeemed under employee share-based compensation plans | 67 | 47 | 335 | 275 | ||||||||||||||||||||||||||||||||||
Cancellation of treasury shares | Cancellation of treasury shares | 323 | 0 | 323 | 0 | |||||||||||||||||||||||||||||||||
Net shares issued under employee share-based compensation plans | Net shares issued under employee share-based compensation plans | 2 | 67 | 216 | 335 | |||||||||||||||||||||||||||||||||
Balance – end of period | (3,504 | ) | (2,372 | ) | (3,504 | ) | (2,372 | ) | Balance – end of period | (3,541) | (3,504) | (3,541) | (3,504) | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | |||||||||||||||||||||||||||||||||||||
Balance – beginning of period | 11,757 | 13,150 | 12,557 | 13,978 | Balance – beginning of period | 10,416 | 11,757 | 11,203 | 12,557 | |||||||||||||||||||||||||||||
Net shares redeemed under employee share-based compensation plans | 6 | — | (184 | ) | (261 | ) | ||||||||||||||||||||||||||||||||
Net shares issued under employee share-based compensation plans | Net shares issued under employee share-based compensation plans | (6) | 6 | (195) | (184) | |||||||||||||||||||||||||||||||||
Exercise of stock options | (17 | ) | (23 | ) | (65 | ) | (42 | ) | Exercise of stock options | (1) | (17) | (30) | (65) | |||||||||||||||||||||||||
Share-based compensation expense | 60 | 63 | 177 | 186 | Share-based compensation expense | 59 | 60 | 183 | 177 | |||||||||||||||||||||||||||||
Funding of dividends declared to Retained earnings | (341 | ) | (337 | ) | (1,020 | ) | (1,008 | ) | Funding of dividends declared to Retained earnings | (353) | (341) | (1,046) | (1,020) | |||||||||||||||||||||||||
Balance – end of period | 11,465 | 12,853 | 11,465 | 12,853 | Balance – end of period | 10,115 | 11,465 | 10,115 | 11,465 | |||||||||||||||||||||||||||||
Retained earnings | Retained earnings | |||||||||||||||||||||||||||||||||||||
Balance – beginning of period | 33,878 | 30,260 | 31,700 | 27,474 | Balance – beginning of period | 35,991 | 33,878 | 36,142 | 31,700 | |||||||||||||||||||||||||||||
Cumulative effect of adoption of accounting guidance (refer to Note 1) | — | — | (12 | ) | 410 | Cumulative effect of adoption of accounting guidance (refer to Note 1) | 0 | 0 | (72) | (12) | ||||||||||||||||||||||||||||
Balance – beginning of period, as adjusted | 33,878 | 30,260 | 31,688 | 27,884 | Balance – beginning of period, as adjusted | 35,991 | 33,878 | 36,070 | 31,688 | |||||||||||||||||||||||||||||
Net income | 1,091 | 1,231 | 3,281 | 3,607 | Net income | 1,194 | 1,091 | 1,115 | 3,281 | |||||||||||||||||||||||||||||
Cancellation of treasury shares | Cancellation of treasury shares | (266) | 0 | (266) | 0 | |||||||||||||||||||||||||||||||||
Funding of dividends declared from Additional paid-in capital | 341 | 337 | 1,020 | 1,008 | Funding of dividends declared from Additional paid-in capital | 353 | 341 | 1,046 | 1,020 | |||||||||||||||||||||||||||||
Dividends declared on Common Shares | (341 | ) | (337 | ) | (1,020 | ) | (1,008 | ) | Dividends declared on Common Shares | (353) | (341) | (1,046) | (1,020) | |||||||||||||||||||||||||
Balance – end of period | 34,969 | 31,491 | 34,969 | 31,491 | Balance – end of period | 36,919 | 34,969 | 36,919 | 34,969 | |||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||
Net unrealized appreciation on investments | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income | |||||||||||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments | Net unrealized appreciation (depreciation) on investments | |||||||||||||||||||||||||||||||||||||
Balance – beginning of period | 2,033 | (390 | ) | (545 | ) | 1,450 | Balance – beginning of period | 3,424 | 2,033 | 2,543 | (545) | |||||||||||||||||||||||||||
Cumulative effect of adoption of accounting guidance | — | — | — | (417 | ) | |||||||||||||||||||||||||||||||||
Balance – beginning of period, as adjusted | 2,033 | (390 | ) | (545 | ) | 1,033 | ||||||||||||||||||||||||||||||||
Change in period, before reclassification from AOCI, net of income tax benefit (expense) of $(125), $58, $(674) and $358 | 569 | (193 | ) | 3,117 | (1,705 | ) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI, net of income tax benefit (expense) of nil, $(4), $(2) and $(19) | 11 | 34 | 41 | 123 | ||||||||||||||||||||||||||||||||||
Change in period, net of income tax benefit (expense) of $(125), $54, $(676) and $339 | 580 | (159 | ) | 3,158 | (1,582 | ) | ||||||||||||||||||||||||||||||||
Change in period, before reclassification from AOCI, net of income tax expense of $(102), $(125), $(300) and $(674) | Change in period, before reclassification from AOCI, net of income tax expense of $(102), $(125), $(300) and $(674) | 585 | 569 | 1,156 | 3,117 | |||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI, net of income tax (expense) benefit of $7, NaN, $(35) and $(2) | Amounts reclassified from AOCI, net of income tax (expense) benefit of $7, NaN, $(35) and $(2) | (42) | 11 | 268 | 41 | |||||||||||||||||||||||||||||||||
Change in period, net of income tax expense of $(95), $(125), $(335) and $(676) | Change in period, net of income tax expense of $(95), $(125), $(335) and $(676) | 543 | 580 | 1,424 | 3,158 | |||||||||||||||||||||||||||||||||
Balance – end of period | 2,613 | (549 | ) | 2,613 | (549 | ) | Balance – end of period | 3,967 | 2,613 | 3,967 | 2,613 | |||||||||||||||||||||||||||
Cumulative foreign currency translation adjustment | Cumulative foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||
Balance – beginning of period | (1,931 | ) | (1,379 | ) | (1,976 | ) | (1,187 | ) | Balance – beginning of period | (2,313) | (1,931) | (1,939) | (1,976) | |||||||||||||||||||||||||
Change in period, net of income tax benefit of $8, $20, $3 and $5 | (185 | ) | (462 | ) | (140 | ) | (654 | ) | ||||||||||||||||||||||||||||||
Change in period, net of income tax (expense) benefit of $(13), $8, $27 and $3 | Change in period, net of income tax (expense) benefit of $(13), $8, $27 and $3 | 233 | (185) | (141) | (140) | |||||||||||||||||||||||||||||||||
Balance – end of period | (2,116 | ) | (1,841 | ) | (2,116 | ) | (1,841 | ) | Balance – end of period | (2,080) | (2,116) | (2,080) | (2,116) | |||||||||||||||||||||||||
Postretirement benefit liability adjustment | Postretirement benefit liability adjustment | |||||||||||||||||||||||||||||||||||||
Balance – beginning of period | 37 | 249 | 73 | 280 | Balance – beginning of period | (13) | 37 | 15 | 73 | |||||||||||||||||||||||||||||
Change in period, net of income tax benefit of $4, $3, $13 and $12 | (13 | ) | (18 | ) | (49 | ) | (49 | ) | ||||||||||||||||||||||||||||||
Change in period, net of income tax benefit of $5, $4, $13 and $13 | Change in period, net of income tax benefit of $5, $4, $13 and $13 | (18) | (13) | (46) | (49) | |||||||||||||||||||||||||||||||||
Balance – end of period | 24 | 231 | 24 | 231 | Balance – end of period | (31) | 24 | (31) | 24 | |||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 521 | (2,159 | ) | 521 | (2,159 | ) | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income | 1,856 | 521 | 1,856 | 521 | |||||||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 54,572 | $ | 50,934 | $ | 54,572 | $ | 50,934 | Total shareholders’ equity | $ | 56,413 | $ | 54,572 | $ | 56,413 | $ | 54,572 |
Nine Months Ended September 30 | |||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | |||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 1,115 | $ | 3,281 | |||||||
Adjustments to reconcile net income to net cash flows from operating activities | |||||||||||
Net realized (gains) losses | 1,069 | 475 | |||||||||
Amortization of premiums/discounts on fixed maturities | 280 | 294 | |||||||||
Amortization of purchased intangibles | 217 | 229 | |||||||||
Deferred income taxes | (287) | (178) | |||||||||
Unpaid losses and loss expenses | 5,112 | 277 | |||||||||
Unearned premiums | 881 | 1,061 | |||||||||
Future policy benefits | 138 | 148 | |||||||||
Insurance and reinsurance balances payable | 280 | (114) | |||||||||
Accounts payable, accrued expenses, and other liabilities | 190 | (6) | |||||||||
Income taxes payable | (95) | 83 | |||||||||
Insurance and reinsurance balances receivable | (324) | (371) | |||||||||
Reinsurance recoverable | (496) | 426 | |||||||||
Deferred policy acquisition costs | (77) | (266) | |||||||||
Other | (762) | (426) | |||||||||
Net cash flows from operating activities | 7,241 | 4,913 | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of fixed maturities available for sale | (20,793) | (19,778) | |||||||||
Purchases of fixed maturities held to maturity | (42) | (143) | |||||||||
Purchases of equity securities | (3,622) | (466) | |||||||||
Sales of fixed maturities available for sale | 9,537 | 10,430 | |||||||||
Sales of to be announced mortgage-backed securities | 0 | 6 | |||||||||
Sales of equity securities | 1,526 | 577 | |||||||||
Maturities and redemptions of fixed maturities available for sale | 8,709 | 6,390 | |||||||||
Maturities and redemptions of fixed maturities held to maturity | 841 | 814 | |||||||||
Net change in short-term investments | (434) | 202 | |||||||||
Net derivative instruments settlements | (74) | (647) | |||||||||
Private equity contributions | (1,056) | (1,093) | |||||||||
Private equity distributions | 588 | 973 | |||||||||
Net deposit paid on share acquisition | (503) | 0 | |||||||||
Payment for Huatai Group interest | (1,054) | (329) | |||||||||
Other | (352) | (497) | |||||||||
Net cash flows used for investing activities | (6,729) | (3,561) | |||||||||
Cash flows from financing activities | |||||||||||
Dividends paid on Common Shares | (1,035) | (1,014) | |||||||||
Common Shares repurchased | (333) | (1,203) | |||||||||
Proceeds from issuance of long-term debt | 988 | 1,286 | |||||||||
Repayment of long-term debt | 0 | (501) | |||||||||
Proceeds from issuance of repurchase agreements | 1,402 | 2,394 | |||||||||
Repayment of repurchase agreements | (1,402) | (2,396) | |||||||||
Proceeds from share-based compensation plans | 77 | 155 | |||||||||
Policyholder contract deposits | 322 | 376 | |||||||||
Policyholder contract withdrawals | (253) | (221) | |||||||||
Net cash flows used for financing activities | (234) | (1,124) | |||||||||
Effect of foreign currency rate changes on cash and restricted cash | (51) | 21 | |||||||||
Net increase in cash and restricted cash | 227 | 249 | |||||||||
Cash and restricted cash – beginning of period | 1,646 | 1,340 | |||||||||
Cash and restricted cash – end of period | $ | 1,873 | $ | 1,589 | |||||||
Supplemental cash flow information | |||||||||||
Taxes paid | $ | 668 | $ | 733 | |||||||
Interest paid | $ | 323 | $ | 327 |
Nine Months Ended September 30 | |||||||
(in millions of U.S. dollars) | 2019 | 2018 | |||||
Cash flows from operating activities | |||||||
Net income | $ | 3,281 | $ | 3,607 | |||
Adjustments to reconcile net income to net cash flows from operating activities | |||||||
Net realized (gains) losses | 475 | (35 | ) | ||||
Amortization of premiums/discounts on fixed maturities | 294 | 454 | |||||
Amortization of purchased intangibles | 229 | 253 | |||||
Deferred income taxes | (178 | ) | 46 | ||||
Unpaid losses and loss expenses | 277 | 436 | |||||
Unearned premiums | 1,061 | 779 | |||||
Future policy benefits | 148 | 170 | |||||
Insurance and reinsurance balances payable | (114 | ) | 574 | ||||
Accounts payable, accrued expenses, and other liabilities | (6 | ) | (172 | ) | |||
Income taxes payable | 83 | 182 | |||||
Insurance and reinsurance balances receivable | (371 | ) | (1,074 | ) | |||
Reinsurance recoverable | 426 | (219 | ) | ||||
Deferred policy acquisition costs | (266 | ) | (270 | ) | |||
Other | (426 | ) | (834 | ) | |||
Net cash flows from operating activities | 4,913 | 3,897 | |||||
Cash flows from investing activities | |||||||
Purchases of fixed maturities available for sale | (19,778 | ) | (16,788 | ) | |||
Purchases of fixed maturities held to maturity | (143 | ) | (380 | ) | |||
Purchases of equity securities | (466 | ) | (148 | ) | |||
Sales of fixed maturities available for sale | 10,430 | 9,041 | |||||
Sales of to be announced mortgage-backed securities | 6 | — | |||||
Sales of equity securities | 577 | 247 | |||||
Maturities and redemptions of fixed maturities available for sale | 6,390 | 5,482 | |||||
Maturities and redemptions of fixed maturities held to maturity | 814 | 1,001 | |||||
Net change in short-term investments | 202 | 64 | |||||
Net derivative instruments settlements | (647 | ) | (46 | ) | |||
Private equity contributions | (1,093 | ) | (1,112 | ) | |||
Private equity distributions | 973 | 743 | |||||
Other | (826 | ) | (231 | ) | |||
Net cash flows used for investing activities | (3,561 | ) | (2,127 | ) | |||
Cash flows from financing activities | |||||||
Dividends paid on Common Shares | (1,014 | ) | (1,001 | ) | |||
Common Shares repurchased | (1,203 | ) | (732 | ) | |||
Proceeds from issuance of long-term debt | 1,286 | 2,171 | |||||
Repayment of long-term debt | (501 | ) | (2,001 | ) | |||
Proceeds from issuance of repurchase agreements | 2,394 | 1,572 | |||||
Repayment of repurchase agreements | (2,396 | ) | (1,566 | ) | |||
Proceeds from share-based compensation plans | 155 | 86 | |||||
Policyholder contract deposits | 376 | 269 | |||||
Policyholder contract withdrawals | (221 | ) | (222 | ) | |||
Net cash flows used for financing activities | (1,124 | ) | (1,424 | ) | |||
Effect of foreign currency rate changes on cash and restricted cash | 21 | (40 | ) | ||||
Net increase in cash and restricted cash | 249 | 306 | |||||
Cash and restricted cash – beginning of period | 1,340 | 851 | |||||
Cash and restricted cash – end of period | $ | 1,589 | $ | 1,157 | |||
Supplemental cash flow information | |||||||
Taxes paid | $ | 733 | $ | 313 | |||
Interest paid | $ | 327 | $ | 403 |
September 30 | December 31 | ||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | |||||||||
Cash | $ | 1,707 | $ | 1,537 | |||||||
Restricted cash | 166 | 109 | |||||||||
Total cash and restricted cash shown in the Consolidated statements of cash flows | $ | 1,873 | $ | 1,646 |
September 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2019 | 2018 | |||||
Cash | $ | 1,478 | $ | 1,247 | |||
Restricted cash | 111 | 93 | |||||
Total cash and restricted cash shown in the Consolidated statements of cash flows | $ | 1,589 | $ | 1,340 |
September 30, 2019 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 3,438 | $ | 133 | $ | (1 | ) | $ | 3,570 | $ | — | ||||||||
Foreign | 21,974 | 1,171 | (68 | ) | 23,077 | (27 | ) | ||||||||||||
Corporate securities | 30,344 | 1,131 | (108 | ) | 31,367 | (5 | ) | ||||||||||||
Mortgage-backed securities | 18,457 | 570 | (13 | ) | 19,014 | — | |||||||||||||
States, municipalities, and political subdivisions | 7,823 | 205 | (12 | ) | 8,016 | — | |||||||||||||
$ | 82,036 | $ | 3,210 | $ | (202 | ) | $ | 85,044 | $ | (32 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 1,234 | $ | 36 | $ | — | $ | 1,270 | $ | — | |||||||||
Foreign | 1,401 | 85 | (1 | ) | 1,485 | — | |||||||||||||
Corporate securities | 2,391 | 127 | (4 | ) | 2,514 | — | |||||||||||||
Mortgage-backed securities | 2,391 | 83 | — | 2,474 | — | ||||||||||||||
States, municipalities, and political subdivisions | 5,205 | 149 | (1 | ) | 5,353 | — | |||||||||||||
$ | 12,622 | $ | 480 | $ | (6 | ) | $ | 13,096 | $ | — |
December 31, 2018 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Available for sale | |||||||||||||||||||
U.S. Treasury and agency | $ | 4,158 | $ | 30 | $ | (43 | ) | $ | 4,145 | $ | — | ||||||||
Foreign | 21,370 | 395 | (349 | ) | 21,416 | — | |||||||||||||
Corporate securities | 27,183 | 150 | (750 | ) | 26,583 | (6 | ) | ||||||||||||
Mortgage-backed securities | 15,758 | 66 | (284 | ) | 15,540 | (1 | ) | ||||||||||||
States, municipalities, and political subdivisions | 10,854 | 49 | (117 | ) | 10,786 | — | |||||||||||||
$ | 79,323 | $ | 690 | $ | (1,543 | ) | $ | 78,470 | $ | (7 | ) | ||||||||
Held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 1,185 | $ | 8 | $ | (11 | ) | $ | 1,182 | $ | — | ||||||||
Foreign | 1,549 | 11 | (18 | ) | 1,542 | — | |||||||||||||
Corporate securities | 2,601 | 11 | (104 | ) | 2,508 | — | |||||||||||||
Mortgage-backed securities | 2,524 | 5 | (43 | ) | 2,486 | — | |||||||||||||
States, municipalities, and political subdivisions | 5,576 | 16 | (51 | ) | 5,541 | — | |||||||||||||
$ | 13,435 | $ | 51 | $ | (227 | ) | $ | 13,259 | $ | — |
September 30, 2020 | Amortized Cost | Valuation Allowance | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury / Agency | $ | 2,564 | $ | 0 | $ | 227 | $ | 0 | $ | 2,791 | ||||||||||||||||||||||||||||
Non-U.S. | 23,858 | (9) | 1,548 | (115) | 25,282 | |||||||||||||||||||||||||||||||||
Corporate and asset-backed securities | 33,661 | (25) | 1,895 | (233) | 35,298 | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | 18,272 | 0 | 1,078 | (13) | 19,337 | |||||||||||||||||||||||||||||||||
Municipal | 6,846 | 0 | 302 | (4) | 7,144 | |||||||||||||||||||||||||||||||||
$ | 85,201 | $ | (34) | $ | 5,050 | $ | (365) | $ | 89,852 | |||||||||||||||||||||||||||||
Amortized Cost | Valuation Allowance | Net Carrying Value | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||||||||||||||||||||||||
Held to maturity | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury / Agency | $ | 1,240 | $ | 0 | $ | 1,240 | $ | 69 | $ | 0 | $ | 1,309 | ||||||||||||||||||||||||||
Non-U.S. | 1,273 | (7) | 1,266 | 109 | (1) | 1,374 | ||||||||||||||||||||||||||||||||
Corporate and asset-backed securities | 2,204 | (36) | 2,168 | 252 | (6) | 2,414 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,104 | (1) | 2,103 | 152 | (2) | 2,253 | ||||||||||||||||||||||||||||||||
Municipal | 4,875 | (1) | 4,874 | 249 | 0 | 5,123 | ||||||||||||||||||||||||||||||||
$ | 11,696 | $ | (45) | $ | 11,651 | $ | 831 | $ | (9) | $ | 12,473 |
December 31, 2019 | Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | OTTI Recognized in AOCI | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||
U.S. Treasury / Agency | $ | 3,188 | $ | 96 | $ | (1) | $ | 3,283 | $ | 0 | |||||||||||||||||||
Non-U.S. | 22,670 | 1,099 | (62) | 23,707 | (25) | ||||||||||||||||||||||||
Corporate and asset-backed securities | 30,689 | 1,180 | (78) | 31,791 | (5) | ||||||||||||||||||||||||
Mortgage-backed securities | 18,712 | 494 | (14) | 19,192 | 0 | ||||||||||||||||||||||||
Municipal | 7,321 | 205 | (11) | 7,515 | 0 | ||||||||||||||||||||||||
$ | 82,580 | $ | 3,074 | $ | (166) | $ | 85,488 | $ | (30) | ||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||
U.S. Treasury / Agency | $ | 1,318 | $ | 29 | $ | 0 | $ | 1,347 | $ | 0 | |||||||||||||||||||
Non-U.S. | 1,423 | 62 | 0 | 1,485 | 0 | ||||||||||||||||||||||||
Corporate and asset-backed securities | 2,349 | 121 | (2) | 2,468 | 0 | ||||||||||||||||||||||||
Mortgage-backed securities | 2,331 | 65 | 0 | 2,396 | 0 | ||||||||||||||||||||||||
Municipal | 5,160 | 150 | (1) | 5,309 | 0 | ||||||||||||||||||||||||
$ | 12,581 | $ | 427 | $ | (3) | $ | 13,005 | $ | 0 |
September 30, 2020 | |||||||||||
(in millions of U.S. dollars) | Amortized cost | % of Total | |||||||||
AAA | $ | 2,542 | 22 | % | |||||||
AA | 6,239 | 53 | % | ||||||||
A | 2,072 | 18 | % | ||||||||
BBB | 821 | 7 | % | ||||||||
BB | 21 | 0 | % | ||||||||
Other | 1 | 0 | % | ||||||||
Total | $ | 11,696 | 100 | % |
September 30 | December 31 | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Net Carrying Value | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Available for sale | |||||||||||||||||||||||
Due in 1 year or less | $ | 4,703 | $ | 4,703 | $ | 3,951 | $ | 3,973 | |||||||||||||||
Due after 1 year through 5 years | 26,319 | 26,319 | 27,142 | 27,720 | |||||||||||||||||||
Due after 5 years through 10 years | 26,456 | 26,456 | 23,901 | 24,874 | |||||||||||||||||||
Due after 10 years | 13,037 | 13,037 | 8,874 | 9,729 | |||||||||||||||||||
70,515 | 70,515 | 63,868 | 66,296 | ||||||||||||||||||||
Mortgage-backed securities | 19,337 | 19,337 | 18,712 | 19,192 | |||||||||||||||||||
$ | 89,852 | $ | 89,852 | $ | 82,580 | $ | 85,488 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||
Due in 1 year or less | $ | 1,045 | $ | 1,056 | $ | 478 | $ | 479 | |||||||||||||||
Due after 1 year through 5 years | 3,501 | 3,667 | 3,869 | 3,940 | |||||||||||||||||||
Due after 5 years through 10 years | 3,119 | 3,315 | 3,756 | 3,883 | |||||||||||||||||||
Due after 10 years | 1,883 | 2,182 | 2,147 | 2,307 | |||||||||||||||||||
9,548 | 10,220 | 10,250 | 10,609 | ||||||||||||||||||||
Mortgage-backed securities | 2,103 | 2,253 | 2,331 | 2,396 | |||||||||||||||||||
$ | 11,651 | $ | 12,473 | $ | 12,581 | $ | 13,005 |
September 30 | December 31 | ||||||||||||||
2019 | 2018 | ||||||||||||||
(in millions of U.S. dollars) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Available for sale | |||||||||||||||
Due in 1 year or less | $ | 3,869 | $ | 3,889 | $ | 3,569 | $ | 3,568 | |||||||
Due after 1 year through 5 years | 27,168 | 27,728 | 27,134 | 27,005 | |||||||||||
Due after 5 years through 10 years | 23,368 | 24,309 | 24,095 | 23,543 | |||||||||||
Due after 10 years | 9,174 | 10,104 | 8,767 | 8,814 | |||||||||||
63,579 | 66,030 | 63,565 | 62,930 | ||||||||||||
Mortgage-backed securities | 18,457 | 19,014 | 15,758 | 15,540 | |||||||||||
$ | 82,036 | $ | 85,044 | $ | 79,323 | $ | 78,470 | ||||||||
Held to maturity | |||||||||||||||
Due in 1 year or less | $ | 487 | $ | 490 | $ | 536 | $ | 537 | |||||||
Due after 1 year through 5 years | 3,567 | 3,629 | 3,122 | 3,106 | |||||||||||
Due after 5 years through 10 years | 3,822 | 3,959 | 4,468 | 4,407 | |||||||||||
Due after 10 years | 2,355 | 2,544 | 2,785 | 2,723 | |||||||||||
10,231 | 10,622 | 10,911 | 10,773 | ||||||||||||
Mortgage-backed securities | 2,391 | 2,474 | 2,524 | 2,486 | |||||||||||
$ | 12,622 | $ | 13,096 | $ | 13,435 | $ | 13,259 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Fixed maturities: | |||||||||||||||
OTTI on fixed maturities, gross | $ | (54 | ) | $ | (14 | ) | $ | (81 | ) | $ | (19 | ) | |||
OTTI on fixed maturities recognized in OCI (pre-tax) | 30 | 3 | 31 | 3 | |||||||||||
OTTI on fixed maturities, net | (24 | ) | (11 | ) | (50 | ) | (16 | ) | |||||||
Gross realized gains excluding OTTI | 70 | 64 | 153 | 229 | |||||||||||
Gross realized losses excluding OTTI | (57 | ) | (91 | ) | (146 | ) | (355 | ) | |||||||
Total fixed maturities | (11 | ) | (38 | ) | (43 | ) | (142 | ) | |||||||
Equity securities | 3 | 35 | 66 | 22 | |||||||||||
Other investments | (4 | ) | 5 | (18 | ) | 23 | |||||||||
Foreign exchange gains | 84 | 39 | 86 | 102 | |||||||||||
Investment and embedded derivative instruments | (97 | ) | 37 | (408 | ) | 78 | |||||||||
Fair value adjustments on insurance derivative | (106 | ) | 54 | (57 | ) | 133 | |||||||||
S&P futures | (6 | ) | (100 | ) | (89 | ) | (122 | ) | |||||||
Other derivative instruments | (14 | ) | (8 | ) | (8 | ) | 2 | ||||||||
Other | (4 | ) | (5 | ) | (4 | ) | (61 | ) | |||||||
Net realized gains (losses) (pre-tax) | $ | (155 | ) | $ | 19 | $ | (475 | ) | $ | 35 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Balance of credit losses related to securities still held – beginning of period | $ | 30 | $ | 16 | $ | 34 | $ | 22 | |||||||
Additions where no OTTI was previously recorded | 17 | 6 | 28 | 7 | |||||||||||
Additions where an OTTI was previously recorded | 1 | 2 | 4 | 2 | |||||||||||
Reductions for securities sold during the period | (8 | ) | (3 | ) | (26 | ) | (10 | ) | |||||||
Balance of credit losses related to securities still held – end of period | $ | 40 | $ | 21 | $ | 40 | $ | 21 |
Three Months Ended | |||||||||||||||||||||||
September 30 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Equity Securities | Other Investments | Total | Equity Securities | Other Investments | Total | |||||||||||||||||
Net gains (losses) recognized during the period | $ | 3 | $ | (4 | ) | $ | (1 | ) | $ | 35 | $ | 5 | $ | 40 | |||||||||
Less: Net gains (losses) recognized from sales of securities | 24 | (2 | ) | 22 | 48 | — | 48 | ||||||||||||||||
Unrealized gains (losses) recognized for securities still held at reporting date | $ | (21 | ) | $ | (2 | ) | $ | (23 | ) | $ | (13 | ) | $ | 5 | $ | (8 | ) |
Nine Months Ended | |||||||||||||||||||||||
September 30 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Equity Securities | Other Investments | Total | Equity Securities | Other Investments | Total | |||||||||||||||||
Net gains (losses) recognized during the period | $ | 66 | $ | (18 | ) | $ | 48 | $ | 22 | $ | 23 | $ | 45 | ||||||||||
Less: Net gains (losses) recognized from sales of securities | 57 | (4 | ) | 53 | 63 | — | 63 | ||||||||||||||||
Unrealized gains (losses) recognized for securities still held at reporting date | $ | 9 | $ | (14 | ) | $ | (5 | ) | $ | (41 | ) | $ | 23 | $ | (18 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||||||||||||||
September 30, 2020 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Non-U.S. | $ | 2,848 | $ | (89) | $ | 122 | $ | (14) | $ | 2,970 | $ | (103) | |||||||||||||||||||||||
Corporate and asset-backed securities | 6,149 | (145) | 721 | (41) | 6,870 | (186) | |||||||||||||||||||||||||||||
Mortgage-backed securities | 1,481 | (11) | 26 | (2) | 1,507 | (13) | |||||||||||||||||||||||||||||
Municipal | 190 | (2) | 54 | (2) | 244 | (4) | |||||||||||||||||||||||||||||
Total AFS fixed maturities | $ | 10,668 | $ | (247) | $ | 923 | $ | (59) | $ | 11,591 | $ | (306) | |||||||||||||||||||||||
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||||||||||||||
December 31, 2019 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||
U.S. Treasury / Agency | $ | 234 | $ | (1) | $ | 339 | $ | 0 | $ | 573 | $ | (1) | |||||||||||||||||||||||
Non-U.S. | 1,846 | (34) | 802 | (28) | 2,648 | (62) | |||||||||||||||||||||||||||||
Corporate and asset-backed securities | 2,121 | (40) | 988 | (40) | 3,109 | (80) | |||||||||||||||||||||||||||||
Mortgage-backed securities | 1,174 | (6) | 932 | (8) | 2,106 | (14) | |||||||||||||||||||||||||||||
Municipal | 188 | 0 | 276 | (12) | 464 | (12) | |||||||||||||||||||||||||||||
Total fixed maturities | $ | 5,563 | $ | (81) | $ | 3,337 | $ | (88) | $ | 8,900 | $ | (169) | |||||||||||||||||||||||
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
September 30, 2019 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 144 | $ | — | $ | 531 | $ | (1 | ) | $ | 675 | $ | (1 | ) | |||||||||
Foreign | 1,077 | (23 | ) | 1,014 | (46 | ) | 2,091 | (69 | ) | ||||||||||||||
Corporate securities | 2,600 | (62 | ) | 1,095 | (50 | ) | 3,695 | (112 | ) | ||||||||||||||
Mortgage-backed securities | 640 | (2 | ) | 1,228 | (11 | ) | 1,868 | (13 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 650 | (1 | ) | 371 | (12 | ) | 1,021 | (13 | ) | ||||||||||||||
Total fixed maturities | $ | 5,111 | $ | (88 | ) | $ | 4,239 | $ | (120 | ) | $ | 9,350 | $ | (208 | ) |
0 – 12 Months | Over 12 Months | Total | |||||||||||||||||||||
December 31, 2018 | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 523 | $ | (4 | ) | $ | 2,859 | $ | (50 | ) | $ | 3,382 | $ | (54 | ) | ||||||||
Foreign | 6,764 | (208 | ) | 5,349 | (159 | ) | 12,113 | (367 | ) | ||||||||||||||
Corporate securities | 16,538 | (599 | ) | 4,873 | (255 | ) | 21,411 | (854 | ) | ||||||||||||||
Mortgage-backed securities | 6,103 | (98 | ) | 6,913 | (229 | ) | 13,016 | (327 | ) | ||||||||||||||
States, municipalities, and political subdivisions | 5,024 | (44 | ) | 7,768 | (124 | ) | 12,792 | (168 | ) | ||||||||||||||
Total fixed maturities | $ | 34,952 | $ | (953 | ) | $ | 27,762 | $ | (817 | ) | $ | 62,714 | $ | (1,770 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
OTTI on fixed maturities, gross | $ | 0 | $ | (54) | $ | 0 | $ | (81) | |||||||||||||||
OTTI on fixed maturities recognized in OCI (pre-tax) | 0 | 30 | 0 | 31 | |||||||||||||||||||
OTTI on fixed maturities, net | 0 | (24) | 0 | (50) | |||||||||||||||||||
Gross realized gains excluding OTTI | 50 | 70 | 195 | 153 | |||||||||||||||||||
Gross realized losses excluding OTTI | (32) | (57) | (331) | (146) | |||||||||||||||||||
Provision for expected credit losses | 42 | 0 | (4) | 0 | |||||||||||||||||||
Impairment (1) | (11) | 0 | (163) | 0 | |||||||||||||||||||
Total fixed maturities | 49 | (11) | (303) | (43) | |||||||||||||||||||
Equity securities | 0 | 3 | 119 | 66 | |||||||||||||||||||
Other investments | 31 | (4) | (71) | (18) | |||||||||||||||||||
Foreign exchange gains (losses) | (222) | 84 | (351) | 86 | |||||||||||||||||||
Investment and embedded derivative instruments | 9 | (97) | 38 | (408) | |||||||||||||||||||
Fair value adjustments on insurance derivative | 46 | (106) | (426) | (57) | |||||||||||||||||||
S&P futures | (52) | (6) | (30) | (89) | |||||||||||||||||||
Other derivative instruments | 1 | (14) | (2) | (8) | |||||||||||||||||||
Other | (3) | (4) | (43) | (4) | |||||||||||||||||||
Net realized gains (losses) (pre-tax) | $ | (141) | $ | (155) | $ | (1,069) | $ | (475) |
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Equity Securities | Other Investments | Total | Equity Securities | Other Investments | Total | |||||||||||||||||||||||||||||
Net gains (losses) recognized during the period | $ | 0 | $ | 31 | $ | 31 | $ | 3 | $ | (4) | $ | (1) | |||||||||||||||||||||||
Less: Net gains (losses) recognized from sales of securities | 34 | 0 | 34 | 24 | (2) | 22 | |||||||||||||||||||||||||||||
Unrealized gains (losses) recognized for securities still held at reporting date | $ | (34) | $ | 31 | $ | (3) | $ | (21) | $ | (2) | $ | (23) |
Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Equity Securities | Other Investments | Total | Equity Securities | Other Investments | Total | |||||||||||||||||||||||||||||
Net gains (losses) recognized during the period | $ | 119 | $ | (71) | $ | 48 | $ | 66 | $ | (18) | $ | 48 | |||||||||||||||||||||||
Less: Net gains (losses) recognized from sales of securities | 197 | 0 | 197 | 57 | (4) | 53 | |||||||||||||||||||||||||||||
Unrealized gains (losses) recognized for securities still held at reporting date | $ | (78) | $ | (71) | $ | (149) | $ | 9 | $ | (14) | $ | (5) |
Three Months Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
(in millions of U.S. dollars) | 2020 | 2020 | |||||||||
Available for sale | |||||||||||
Valuation allowance for expected credit losses - beginning of period | $ | 69 | $ | 0 | |||||||
Impact of adoption of new accounting guidance | — | 25 | |||||||||
Provision for expected credit loss | 5 | 183 | |||||||||
Initial allowance for purchased securities with credit deterioration | 0 | 5 | |||||||||
Write-offs charged against the expected credit loss | 0 | (5) | |||||||||
Recovery of expected credit loss | (40) | (174) | |||||||||
Valuation allowance for expected credit losses - end of period | $ | 34 | $ | 34 | |||||||
Held to maturity | |||||||||||
Valuation allowance for expected credit losses - beginning of period | $ | 51 | $ | 0 | |||||||
Impact of adoption of new accounting guidance | — | 44 | |||||||||
Provision for expected credit loss | 2 | 9 | |||||||||
Recoveries of amounts previously written off | (8) | (8) | |||||||||
Valuation allowance for expected credit losses - end of period | $ | 45 | $ | 45 | |||||||
September 30 | December 31 | ||||||||||||||||||||||||||||
Expected Liquidation Period of Underlying Assets | 2020 | 2019 | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | |||||||||||||||||||||||||
Financial | 2 to 10 Years | $ | 579 | $ | 293 | $ | 611 | $ | 329 | ||||||||||||||||||||
Real Assets | 2 to 11 Years | 724 | 704 | 712 | 422 | ||||||||||||||||||||||||
Distressed | 2 to 8 Years | 252 | 573 | 263 | 80 | ||||||||||||||||||||||||
Private Credit | 3 to 8 Years | 86 | 272 | 104 | 272 | ||||||||||||||||||||||||
Traditional | 2 to 14 Years | 3,727 | 1,455 | 2,844 | 2,160 | ||||||||||||||||||||||||
Vintage | 1 to 2 Years | 83 | 0 | 116 | 0 | ||||||||||||||||||||||||
Investment funds | Not Applicable | 243 | 0 | 271 | 0 | ||||||||||||||||||||||||
$ | 5,694 | $ | 3,297 | $ | 4,921 | $ | 3,263 |
Investment Category: | Consists of investments in private equity funds: | |||||||
Financial | targeting financial services companies, such as financial institutions and insurance services worldwide | |||||||
Real Assets | targeting investments related to hard, physical assets, such as real estate, infrastructure and natural resources | |||||||
Distressed | targeting distressed corporate debt/credit and equity opportunities in the U.S. | |||||||
Private Credit | targeting privately originated corporate debt investments, including senior secured loans and subordinated bonds | |||||||
Traditional | employing traditional private equity investment strategies, such as buyout and growth equity globally | |||||||
Vintage | funds where the initial fund term has expired |
September 30 | December 31 | ||||||
(in millions of U.S. dollars) | 2019 | 2018 | |||||
Trust funds | $ | 14,325 | $ | 13,988 | |||
Deposits with U.S. regulatory authorities | 2,476 | 2,405 | |||||
Deposits with non-U.S. regulatory authorities | 2,706 | 2,531 | |||||
Assets pledged under repurchase agreements | 1,474 | 1,468 | |||||
Other pledged assets | 447 | 692 | |||||
Total | $ | 21,428 | $ | 21,084 |
September 30 | December 31 | ||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | |||||||||
Trust funds | $ | 12,746 | $ | 14,004 | |||||||
Deposits with U.S. regulatory authorities | 2,448 | 2,466 | |||||||||
Deposits with non-U.S. regulatory authorities | 2,957 | 2,709 | |||||||||
Assets pledged under repurchase agreements | 1,433 | 1,464 | |||||||||
Other pledged assets | 577 | 490 | |||||||||
Total | $ | 20,161 | $ | 21,133 |
September 30, 2020 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturities available for sale | |||||||||||||||||||||||
U.S. Treasury / Agency | $ | 2,264 | $ | 527 | $ | 0 | $ | 2,791 | |||||||||||||||
Non-U.S. | 0 | 24,788 | 494 | 25,282 | |||||||||||||||||||
Corporate and asset-backed securities | 0 | 33,853 | 1,445 | 35,298 | |||||||||||||||||||
Mortgage-backed securities | 0 | 19,276 | 61 | 19,337 | |||||||||||||||||||
Municipal | 0 | 7,144 | 0 | 7,144 | |||||||||||||||||||
2,264 | 85,588 | 2,000 | 89,852 | ||||||||||||||||||||
Equity securities | 3,022 | 0 | 66 | 3,088 | |||||||||||||||||||
Short-term investments | 3,270 | 1,383 | 7 | 4,660 | |||||||||||||||||||
Other investments (1) | 374 | 403 | 10 | 787 | |||||||||||||||||||
Securities lending collateral | 0 | 1,851 | 0 | 1,851 | |||||||||||||||||||
Investment derivative instruments | 24 | 0 | 0 | 24 | |||||||||||||||||||
Other derivative instruments | 3 | 0 | 0 | 3 | |||||||||||||||||||
Separate account assets | 3,535 | 123 | 0 | 3,658 | |||||||||||||||||||
Total assets measured at fair value (1) | $ | 12,492 | $ | 89,348 | $ | 2,083 | $ | 103,923 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Investment derivative instruments | $ | 77 | $ | 0 | $ | 0 | $ | 77 | |||||||||||||||
GLB (2) | 0 | 0 | 882 | 882 | |||||||||||||||||||
Total liabilities measured at fair value | $ | 77 | $ | 0 | $ | 882 | $ | 959 |
December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturities available for sale | |||||||||||||||||||||||
U.S. Treasury / Agency | $ | 2,664 | $ | 619 | $ | 0 | $ | 3,283 | |||||||||||||||
Non-U.S. | 0 | 23,258 | 449 | 23,707 | |||||||||||||||||||
Corporate and asset-backed securities | 0 | 30,340 | 1,451 | 31,791 | |||||||||||||||||||
Mortgage-backed securities | 0 | 19,132 | 60 | 19,192 | |||||||||||||||||||
Municipal | 0 | 7,515 | 0 | 7,515 | |||||||||||||||||||
2,664 | 80,864 | 1,960 | 85,488 | ||||||||||||||||||||
Equity securities | 728 | 15 | 69 | 812 | |||||||||||||||||||
Short-term investments | 2,803 | 1,482 | 6 | 4,291 | |||||||||||||||||||
Other investments (1) | 412 | 377 | 10 | 799 | |||||||||||||||||||
Securities lending collateral | 0 | 994 | 0 | 994 | |||||||||||||||||||
Investment derivative instruments | 24 | 0 | 0 | 24 | |||||||||||||||||||
Other derivative instruments | 2 | 0 | 0 | 2 | |||||||||||||||||||
Separate account assets | 3,437 | 136 | 0 | 3,573 | |||||||||||||||||||
Total assets measured at fair value (1) | $ | 10,070 | $ | 83,868 | $ | 2,045 | $ | 95,983 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Investment derivative instruments | $ | 93 | $ | 0 | $ | 0 | $ | 93 | |||||||||||||||
Other derivative instruments | 13 | 0 | 0 | 13 | |||||||||||||||||||
GLB (2) | 0 | 0 | 456 | 456 | |||||||||||||||||||
Total liabilities measured at fair value | $ | 106 | $ | 0 | $ | 456 | $ | 562 |
(in millions of U.S. dollars, except for percentages) | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges | Weighted Average (1) | ||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
GLB (1) | $ | 882 | $ | 456 | Actuarial model | Lapse rate | 3% – 34% | 4.7 | % | ||||||||||||||||||||||||||
Annuitization rate | 0% – 52% | 4.0 | % |
September 30, 2019 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 2,893 | $ | 677 | $ | — | $ | 3,570 | |||||||
Foreign | — | 22,684 | 393 | 23,077 | |||||||||||
Corporate securities | — | 29,917 | 1,450 | 31,367 | |||||||||||
Mortgage-backed securities | — | 18,937 | 77 | 19,014 | |||||||||||
States, municipalities, and political subdivisions | — | 8,016 | — | 8,016 | |||||||||||
2,893 | 80,231 | 1,920 | 85,044 | ||||||||||||
Equity securities | 662 | 4 | 56 | 722 | |||||||||||
Short-term investments | 1,483 | 1,346 | 6 | 2,835 | |||||||||||
Other investments (1) | 392 | 353 | 10 | 755 | |||||||||||
Securities lending collateral | — | 962 | — | 962 | |||||||||||
Investment derivative instruments | 22 | — | — | 22 | |||||||||||
Other derivative instruments | 7 | — | — | 7 | |||||||||||
Separate account assets | 3,140 | 147 | — | 3,287 | |||||||||||
Total assets measured at fair value (1) | $ | 8,599 | $ | 83,043 | $ | 1,992 | $ | 93,634 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 63 | $ | — | $ | — | $ | 63 | |||||||
GLB (2) | — | — | 509 | 509 | |||||||||||
Total liabilities measured at fair value | $ | 63 | $ | — | $ | 509 | $ | 572 |
December 31, 2018 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Assets: | |||||||||||||||
Fixed maturities available for sale | |||||||||||||||
U.S. Treasury and agency | $ | 3,400 | $ | 745 | $ | — | $ | 4,145 | |||||||
Foreign | — | 21,071 | 345 | 21,416 | |||||||||||
Corporate securities | — | 25,284 | 1,299 | 26,583 | |||||||||||
Mortgage-backed securities | — | 15,479 | 61 | 15,540 | |||||||||||
States, municipalities, and political subdivisions | — | 10,786 | — | 10,786 | |||||||||||
3,400 | 73,365 | 1,705 | 78,470 | ||||||||||||
Equity securities | 713 | — | 57 | 770 | |||||||||||
Short-term investments | 1,575 | 1,440 | 1 | 3,016 | |||||||||||
Other investments (1) | 381 | 303 | 11 | 695 | |||||||||||
Securities lending collateral | — | 1,926 | — | 1,926 | |||||||||||
Investment derivative instruments | 28 | — | — | 28 | |||||||||||
Other derivative instruments | 25 | — | — | 25 | |||||||||||
Separate account assets | 2,686 | 137 | — | 2,823 | |||||||||||
Total assets measured at fair value (1) | $ | 8,808 | $ | 77,171 | $ | 1,774 | $ | 87,753 | |||||||
Liabilities: | |||||||||||||||
Investment derivative instruments | $ | 38 | $ | 115 | $ | — | $ | 153 | |||||||
GLB (2) | — | — | 452 | 452 | |||||||||||
Total liabilities measured at fair value | $ | 38 | $ | 115 | $ | 452 | $ | 605 |
September 30 | December 31 | ||||||||||||||||
Expected Liquidation Period of Underlying Assets | 2019 | 2018 | |||||||||||||||
(in millions of U.S. dollars) | Fair Value | Maximum Future Funding Commitments | Fair Value | Maximum Future Funding Commitments | |||||||||||||
Financial | 2 to 10 Years | $ | 568 | $ | 360 | $ | 596 | $ | 193 | ||||||||
Real Assets | 2 to 11 Years | 771 | 497 | 704 | 362 | ||||||||||||
Distressed | 2 to 7 Years | 264 | 89 | 296 | 105 | ||||||||||||
Private Credit | 3 to 8 Years | 109 | 271 | 147 | 310 | ||||||||||||
Traditional | 2 to 14 Years | 2,767 | 2,224 | 2,362 | 2,735 | ||||||||||||
Vintage | 1 to 2 Years | 134 | 37 | 56 | — | ||||||||||||
Investment funds | Not Applicable | 258 | — | 83 | — | ||||||||||||
$ | 4,871 | $ | 3,478 | $ | 4,244 | $ | 3,705 |
(in millions of U.S. dollars, except for percentages) | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges | |||||||||
September 30, 2019 | December 31, 2018 | ||||||||||||
GLB (1) | $ | 509 | $ | 452 | Actuarial model | Lapse rate | 3% – 32% | ||||||
Annuitization rate | 0% – 42% |
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 (in millions of U.S. dollars) | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | GLB (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | Corporate and asset-backed securities | MBS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 469 | $ | 1,369 | $ | 60 | $ | 64 | $ | 2 | $ | 10 | $ | 928 | |||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | 0 | (1) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Net Unrealized Gains (Losses) in OCI | 21 | 13 | 0 | 0 | (1) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses | 1 | 3 | 0 | 2 | 0 | 0 | (46) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 41 | 194 | 2 | 3 | 7 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (19) | (80) | 0 | (3) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (19) | (54) | (1) | 0 | (1) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – end of period | $ | 494 | $ | 1,445 | $ | 61 | $ | 66 | $ | 7 | $ | 10 | $ | 882 | |||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | 0 | $ | 3 | $ | 0 | $ | 2 | $ | 0 | $ | 0 | $ | (46) | |||||||||||||||||||||||||||||||||||||||||||||
Change in Net Unrealized Gains/Losses included in OCI at the Balance sheet date | $ | 20 | $ | 12 | $ | 0 | $ | 0 | $ | (1) | $ | 0 | $ | 0 |
Assets | Liabilities | ||||||||||||||||||||||||||
Three Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | GLB (1) | ||||||||||||||||||||||
September 30, 2019 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance – beginning of period | $ | 371 | $ | 1,359 | $ | 76 | $ | 56 | $ | 4 | $ | 11 | $ | 403 | |||||||||||||
Transfers into Level 3 | — | 1 | — | — | — | — | — | ||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | ||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange | (8 | ) | (4 | ) | — | (1 | ) | — | — | — | |||||||||||||||||
Net Realized Gains/Losses | — | — | — | (1 | ) | — | — | 106 | |||||||||||||||||||
Purchases | 68 | 176 | 1 | 5 | 2 | — | — | ||||||||||||||||||||
Sales | (35 | ) | (18 | ) | — | (3 | ) | — | — | — | |||||||||||||||||
Settlements | (3 | ) | (64 | ) | — | — | — | (1 | ) | — | |||||||||||||||||
Balance – end of period | $ | 393 | $ | 1,450 | $ | 77 | $ | 56 | $ | 6 | $ | 10 | $ | 509 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | 106 |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Three Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB (2) | |||||||||||||||||||||||||
September 30, 2018 | Foreign | Corporate securities (1) | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 252 | $ | 1,181 | $ | 82 | $ | 59 | $ | 12 | $ | 264 | $ | 2 | $ | 125 | |||||||||||||||
Transfers into Level 3 | 5 | 18 | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (2 | ) | (21 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange | (2 | ) | 7 | — | (1 | ) | — | (4 | ) | — | — | ||||||||||||||||||||
Net Realized Gains/Losses | (2 | ) | (6 | ) | — | 7 | — | — | — | (54 | ) | ||||||||||||||||||||
Purchases | 98 | 98 | 1 | 6 | — | 20 | — | — | |||||||||||||||||||||||
Sales | (22 | ) | (18 | ) | — | (18 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (4 | ) | (85 | ) | (18 | ) | — | (6 | ) | (17 | ) | — | — | ||||||||||||||||||
Balance – end of period | $ | 323 | $ | 1,174 | $ | 65 | $ | 53 | $ | 6 | $ | 263 | $ | 2 | $ | 71 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (6 | ) | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | (54 | ) |
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 (in millions of U.S. dollars) | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | GLB (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | Corporate and asset-backed securities | MBS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 371 | $ | 1,359 | $ | 76 | $ | 56 | $ | 4 | $ | 11 | $ | 403 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Net Unrealized Gains/Losses in OCI, including foreign exchange | (8) | (4) | 0 | (1) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses | 0 | 0 | 0 | (1) | 0 | 0 | 106 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 68 | 176 | 1 | 5 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (35) | (18) | 0 | (3) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (3) | (64) | 0 | 0 | 0 | (1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – end of period | $ | 393 | $ | 1,450 | $ | 77 | $ | 56 | $ | 6 | $ | 10 | $ | 509 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | 0 | $ | 0 | $ | 0 | $ | (1) | $ | 0 | $ | 0 | $ | 106 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | GLB (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 (in millions of U.S. dollars) | Non-U.S. | Corporate and asset-backed securities | MBS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 449 | $ | 1,451 | $ | 60 | $ | 69 | $ | 6 | $ | 10 | $ | 456 | |||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 0 | 92 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (16) | (73) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Net Unrealized Gains (Losses) in OCI, including foreign exchange | 1 | (31) | 0 | 0 | (1) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses | (2) | (23) | 0�� | (1) | 0 | 0 | 426 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 190 | 416 | 2 | 14 | 9 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (81) | (147) | 0 | (16) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (47) | (240) | (1) | 0 | (7) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – end of period | $ | 494 | $ | 1,445 | $ | 61 | $ | 66 | $ | 7 | $ | 10 | $ | 882 | |||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | 0 | $ | (6) | $ | 0 | $ | 1 | $ | 0 | $ | 0 | $ | 426 | |||||||||||||||||||||||||||||||||||||||||||||
Change in Net Unrealized Gains/Losses included in OCI at the Balance sheet date | $ | 0 | $ | (25) | $ | 0 | $ | 0 | $ | (1) | $ | 0 | $ | 0 |
Assets | Liabilities | ||||||||||||||||||||||||||
Nine Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | GLB (1) | ||||||||||||||||||||||
September 30, 2019 | Foreign | Corporate securities | MBS | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||
Balance – beginning of period | $ | 345 | $ | 1,299 | $ | 61 | $ | 57 | $ | 1 | $ | 11 | $ | 452 | |||||||||||||
Transfers into Level 3 | 3 | 16 | — | — | — | — | — | ||||||||||||||||||||
Transfers out of Level 3 | (15 | ) | — | — | — | — | — | — | |||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange | (2 | ) | 1 | — | 1 | — | — | — | |||||||||||||||||||
Net Realized Gains/Losses | (1 | ) | — | — | (4 | ) | — | — | 57 | ||||||||||||||||||
Purchases | 164 | 425 | 19 | 19 | 6 | — | — | ||||||||||||||||||||
Sales | (54 | ) | (91 | ) | (1 | ) | (17 | ) | — | — | — | ||||||||||||||||
Settlements | (47 | ) | (200 | ) | (2 | ) | — | (1 | ) | (1 | ) | — | |||||||||||||||
Balance – end of period | $ | 393 | $ | 1,450 | $ | 77 | $ | 56 | $ | 6 | $ | 10 | $ | 509 | |||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | — | $ | (1 | ) | $ | — | $ | (3 | ) | $ | — | $ | — | $ | 57 |
Assets | Liabilities | ||||||||||||||||||||||||||||||
Nine Months Ended | Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | Other derivative instruments | GLB (2) | |||||||||||||||||||||||||
September 30, 2018 | Foreign | Corporate securities (1) | MBS | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 93 | $ | 1,037 | $ | 78 | $ | 44 | $ | — | $ | 263 | $ | 2 | $ | 204 | |||||||||||||||
Transfers into Level 3 | 12 | 24 | 1 | — | 5 | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | (2 | ) | (31 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Change in Net Unrealized Gains (Losses) included in OCI, including foreign exchange | — | (5 | ) | — | — | — | (2 | ) | — | — | |||||||||||||||||||||
Net Realized Gains/Losses | (2 | ) | (4 | ) | — | 6 | — | 1 | — | (133 | ) | ||||||||||||||||||||
Purchases | 280 | 454 | 5 | 26 | 9 | 50 | — | — | |||||||||||||||||||||||
Sales | (52 | ) | (114 | ) | — | (23 | ) | — | — | — | — | ||||||||||||||||||||
Settlements | (6 | ) | (187 | ) | (19 | ) | — | (8 | ) | (49 | ) | — | — | ||||||||||||||||||
Balance – end of period | $ | 323 | $ | 1,174 | $ | 65 | $ | 53 | $ | 6 | $ | 263 | $ | 2 | $ | 71 | |||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | (1 | ) | $ | (6 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | (133 | ) |
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | Equity securities | Short-term investments | Other investments | GLB (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 (in millions of U.S. dollars) | Non-U.S. | Corporate and asset-backed securities | MBS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – beginning of period | $ | 345 | $ | 1,299 | $ | 61 | $ | 57 | $ | 1 | $ | 11 | $ | 452 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 3 | 16 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (15) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Net Unrealized Gains/Losses in OCI, including foreign exchange | (2) | 1 | 0 | 1 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses | (1) | 0 | 0 | (4) | 0 | 0 | 57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 164 | 425 | 19 | 19 | 6 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (54) | (91) | (1) | (17) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (47) | (200) | (2) | 0 | (1) | (1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – end of period | $ | 393 | $ | 1,450 | $ | 77 | $ | 56 | $ | 6 | $ | 10 | $ | 509 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date | $ | 0 | $ | (1) | $ | 0 | $ | (3) | $ | 0 | $ | 0 | $ | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2020 | Fair Value | Net Carrying Value | |||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | Carrying Value | (in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities held to maturity | Fixed maturities held to maturity | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency | $ | 1,213 | $ | 57 | $ | — | $ | 1,270 | $ | 1,234 | ||||||||||||||||||||||||||||||||||||||
Foreign | — | 1,485 | — | 1,485 | 1,401 | |||||||||||||||||||||||||||||||||||||||||||
Corporate securities | — | 2,482 | 32 | 2,514 | 2,391 | |||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury / Agency | U.S. Treasury / Agency | $ | 1,251 | $ | 58 | $ | 0 | $ | 1,309 | $ | 1,240 | |||||||||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 0 | 1,374 | 0 | 1,374 | 1,266 | ||||||||||||||||||||||||||||||||||||||||||
Corporate and asset-backed securities | Corporate and asset-backed securities | 0 | 2,414 | 0 | 2,414 | 2,168 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | 2,474 | — | 2,474 | 2,391 | Mortgage-backed securities | 0 | 2,253 | 0 | 2,253 | 2,103 | |||||||||||||||||||||||||||||||||||||
States, municipalities, and political subdivisions | — | 5,353 | — | 5,353 | 5,205 | |||||||||||||||||||||||||||||||||||||||||||
Municipal | Municipal | 0 | 5,123 | 0 | 5,123 | 4,874 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,213 | $ | 11,851 | $ | 32 | $ | 13,096 | $ | 12,622 | Total assets | $ | 1,251 | $ | 11,222 | $ | 0 | $ | 12,473 | $ | 11,651 | |||||||||||||||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,416 | $ | — | $ | 1,416 | $ | 1,416 | Repurchase agreements | $ | 0 | $ | 1,413 | $ | 0 | $ | 1,413 | $ | 1,413 | |||||||||||||||||||||||||||
Short-term debt | — | 10 | — | 10 | 10 | Short-term debt | 0 | 1,302 | 0 | 1,302 | 1,300 | |||||||||||||||||||||||||||||||||||||
Long-term debt | — | 14,901 | — | 14,901 | 13,285 | Long-term debt | 0 | 16,995 | 0 | 16,995 | 14,830 | |||||||||||||||||||||||||||||||||||||
Trust preferred securities | — | 457 | — | 457 | 308 | Trust preferred securities | 0 | 462 | 0 | 462 | 308 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 16,784 | $ | — | $ | 16,784 | $ | 15,019 | Total liabilities | $ | 0 | $ | 20,172 | $ | 0 | $ | 20,172 | $ | 17,851 |
December 31, 2019 | Fair Value | Carrying Value | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||||||||||||
U.S. Treasury / Agency | $ | 1,292 | $ | 55 | $ | 0 | $ | 1,347 | $ | 1,318 | |||||||||||||||||||
Non-U.S. | 0 | 1,485 | 0 | 1,485 | 1,423 | ||||||||||||||||||||||||
Corporate and asset-backed securities | 0 | 2,436 | 32 | 2,468 | 2,349 | ||||||||||||||||||||||||
Mortgage-backed securities | 0 | 2,396 | 0 | 2,396 | 2,331 | ||||||||||||||||||||||||
Municipal | 0 | 5,309 | 0 | 5,309 | 5,160 | ||||||||||||||||||||||||
Total assets | $ | 1,292 | $ | 11,681 | $ | 32 | $ | 13,005 | $ | 12,581 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Repurchase agreements | $ | 0 | $ | 1,416 | $ | 0 | $ | 1,416 | $ | 1,416 | |||||||||||||||||||
Short-term debt | 0 | 1,307 | 0 | 1,307 | 1,299 | ||||||||||||||||||||||||
Long-term debt | 0 | 15,048 | 0 | 15,048 | 13,559 | ||||||||||||||||||||||||
Trust preferred securities | 0 | 467 | 0 | 467 | 308 | ||||||||||||||||||||||||
Total liabilities | $ | 0 | $ | 18,238 | $ | 0 | $ | 18,238 | $ | 16,582 |
December 31, 2018 | Fair Value | Carrying Value | |||||||||||||||||
(in millions of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities held to maturity | |||||||||||||||||||
U.S. Treasury and agency | $ | 1,128 | $ | 54 | $ | — | $ | 1,182 | $ | 1,185 | |||||||||
Foreign | — | 1,542 | — | 1,542 | 1,549 | ||||||||||||||
Corporate securities | — | 2,477 | 31 | 2,508 | 2,601 | ||||||||||||||
Mortgage-backed securities | — | 2,486 | — | 2,486 | 2,524 | ||||||||||||||
States, municipalities, and political subdivisions | — | 5,541 | — | 5,541 | 5,576 | ||||||||||||||
Total assets | $ | 1,128 | $ | 12,100 | $ | 31 | $ | 13,259 | $ | 13,435 | |||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | — | $ | 1,418 | $ | — | $ | 1,418 | $ | 1,418 | |||||||||
Short-term debt | — | 516 | — | 516 | 509 | ||||||||||||||
Long-term debt | — | 12,181 | — | 12,181 | 12,087 | ||||||||||||||
Trust preferred securities | — | 409 | — | 409 | 308 | ||||||||||||||
Total liabilities | $ | — | $ | 14,524 | $ | — | $ | 14,524 | $ | 14,322 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(in millions of U.S. dollars) | Net Reinsurance Recoverable (1) | Valuation allowance | Net Reinsurance Recoverable (1) | Valuation allowance | ||||||||||||||||||||||
Reinsurance recoverable on unpaid losses and loss expenses | $ | 14,767 | $ | 255 | $ | 14,181 | $ | 240 | ||||||||||||||||||
Reinsurance recoverable on paid losses and loss expenses | 903 | 65 | 1,000 | 76 | ||||||||||||||||||||||
Reinsurance recoverable on losses and loss expenses | $ | 15,670 | $ | 320 | $ | 15,181 | $ | 316 | ||||||||||||||||||
Reinsurance recoverable on policy benefits | $ | 203 | $ | 4 | $ | 197 | $ | 4 |
Nine Months Ended | |||||
September 30 | |||||
(in millions of U.S. dollars) | 2020 | ||||
Reinsurance recoverable | |||||
Valuation allowance for uncollectible reinsurance - beginning of period | $ | 316 | |||
Provision for uncollectible reinsurance | 21 | ||||
Write-offs charged against the valuation allowance | (19) | ||||
Foreign exchange revaluation | 2 | ||||
Valuation allowance for uncollectible reinsurance - end of period | $ | 320 |
Nine Months Ended September 30 | |||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | |||||||||
Gross unpaid losses and loss expenses – beginning of period | $ | 62,690 | $ | 62,960 | |||||||
Reinsurance recoverable on unpaid losses - beginning of period (1) | (14,181) | (14,689) | |||||||||
Net unpaid losses and loss expenses – beginning of period | 48,509 | 48,271 | |||||||||
Net losses and loss expenses incurred in respect of losses occurring in: | |||||||||||
Current year | 17,109 | 14,484 | |||||||||
Prior years (2) | (212) | (619) | |||||||||
Total | 16,897 | 13,865 | |||||||||
Net losses and loss expenses paid in respect of losses occurring in: | |||||||||||
Current year | 4,766 | 4,920 | |||||||||
Prior years | 7,597 | 8,374 | |||||||||
Total | 12,363 | 13,294 | |||||||||
Foreign currency revaluation and other | 95 | (162) | |||||||||
Net unpaid losses and loss expenses – end of period | 53,138 | 48,680 | |||||||||
Reinsurance recoverable on unpaid losses (1) | 14,767 | 14,332 | |||||||||
Gross unpaid losses and loss expenses – end of period | $ | 67,905 | $ | 63,012 |
Nine Months Ended September 30 | |||||||
(in millions of U.S. dollars) | 2019 | 2018 | |||||
Gross unpaid losses and loss expenses – beginning of period | $ | 62,960 | $ | 63,179 | |||
Reinsurance recoverable on unpaid losses - beginning of period (1) | (14,689 | ) | (14,014 | ) | |||
Net unpaid losses and loss expenses – beginning of period | 48,271 | 49,165 | |||||
Net losses and loss expenses incurred in respect of losses occurring in: | |||||||
Current year | 14,484 | 14,186 | |||||
Prior years (2) | (619 | ) | (729 | ) | |||
Total | 13,865 | 13,457 | |||||
Net losses and loss expenses paid in respect of losses occurring in: | |||||||
Current year | 4,920 | 4,522 | |||||
Prior years | 8,374 | 8,596 | |||||
Total | 13,294 | 13,118 | |||||
Foreign currency revaluation and other | (162 | ) | (440 | ) | |||
Net unpaid losses and loss expenses – end of period | 48,680 | 49,064 | |||||
Reinsurance recoverable on unpaid losses (1) | 14,332 | 13,965 | |||||
Gross unpaid losses and loss expenses – end of period | $ | 63,012 | $ | 63,029 |
(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $23 million and $60 million for the nine months ended September 30, 2020 and 2019, respectively. |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Long-tail | Short-tail | Total | Long-tail | Short-tail | Total | |||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (255) | $ | 55 | $ | (200) | $ | (439) | $ | (12) | $ | (451) | |||||||||||||||||||||||
North America Personal P&C Insurance | 0 | 48 | 48 | 0 | 48 | 48 | |||||||||||||||||||||||||||||
North America Agricultural Insurance | 0 | 18 | 18 | 0 | 4 | 4 | |||||||||||||||||||||||||||||
Overseas General Insurance | (71) | 11 | (60) | (72) | (28) | (100) | |||||||||||||||||||||||||||||
Global Reinsurance | (6) | 0 | (6) | (25) | (4) | (29) | |||||||||||||||||||||||||||||
Corporate | 54 | 0 | 54 | 339 | 0 | 339 | |||||||||||||||||||||||||||||
Total | $ | (278) | $ | 132 | $ | (146) | $ | (197) | $ | 8 | $ | (189) | |||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (197) | $ | 88 | $ | (109) | $ | (468) | $ | 43 | $ | (425) | |||||||||||||||||||||||
North America Personal P&C Insurance | 0 | (62) | (62) | 0 | (88) | (88) | |||||||||||||||||||||||||||||
North America Agricultural Insurance | 0 | 18 | 18 | 0 | (43) | (43) | |||||||||||||||||||||||||||||
Overseas General Insurance | (66) | 41 | (25) | (66) | 17 | (49) | |||||||||||||||||||||||||||||
Global Reinsurance | (25) | 0 | (25) | (59) | 26 | (33) | |||||||||||||||||||||||||||||
Corporate | 36 | 0 | 36 | 79 | 0 | 79 | |||||||||||||||||||||||||||||
Total | $ | (252) | $ | 85 | $ | (167) | $ | (514) | $ | (45) | $ | (559) |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Long-tail | Short-tail | Total | Long-tail | Short-tail | Total | |||||||||||||||||
2019 | |||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (197 | ) | $ | 88 | $ | (109 | ) | $ | (468 | ) | $ | 43 | $ | (425 | ) | |||||||
North America Personal P&C Insurance | — | (62 | ) | (62 | ) | — | (88 | ) | (88 | ) | |||||||||||||
North America Agricultural Insurance | — | 18 | 18 | — | (43 | ) | (43 | ) | |||||||||||||||
Overseas General Insurance | (66 | ) | 41 | (25 | ) | (66 | ) | 17 | (49 | ) | |||||||||||||
Global Reinsurance | (25 | ) | — | (25 | ) | (59 | ) | 26 | (33 | ) | |||||||||||||
Corporate | 36 | — | 36 | 79 | — | 79 | |||||||||||||||||
Total | $ | (252 | ) | $ | 85 | $ | (167 | ) | $ | (514 | ) | $ | (45 | ) | $ | (559 | ) | ||||||
2018 | |||||||||||||||||||||||
North America Commercial P&C Insurance | $ | (170 | ) | $ | (46 | ) | $ | (216 | ) | $ | (266 | ) | $ | (206 | ) | $ | (472 | ) | |||||
North America Personal P&C Insurance | — | 58 | 58 | — | 59 | 59 | |||||||||||||||||
North America Agricultural Insurance | — | (1 | ) | (1 | ) | — | (77 | ) | (77 | ) | |||||||||||||
Overseas General Insurance | (49 | ) | (23 | ) | (72 | ) | (51 | ) | (115 | ) | (166 | ) | |||||||||||
Global Reinsurance | (39 | ) | 15 | (24 | ) | (69 | ) | 15 | (54 | ) | |||||||||||||
Corporate | 12 | — | 12 | 67 | — | 67 | |||||||||||||||||
Total | $ | (246 | ) | $ | 3 | $ | (243 | ) | $ | (319 | ) | $ | (324 | ) | $ | (643 | ) |
•Net favorable development of $94 million in workers' compensation business mainly impacting accident years 2015 and prior, driven by lower than expected paid and reported loss activity, and related improvements in loss development factors; •Net favorable development of $39 million in our foreign casualty business, impacting accident years 2015 and prior, driven by reported loss activity that was generally lower than expected; •Net favorable development of $36 million on large multi-line prospective deals in the 2015 and prior accident years, due to lower than expected reported loss activity. These structured deals typically cover large clients for multiple product lines and with varying loss limitations; this development is net of premium returns of $34 million tied to the loss performance of the particular deals; and •Net favorable development of $32 million in U.S. commercial excess and umbrella portfolios, mainly in accident years 2013 and prior, driven by lower paid and reported loss activity relative to prior expectations as well as an increase in weighting towards experience-based methods, partly offset by modestly adverse development in more recent accident years, mainly in 2018, due to higher than expected large loss activity. •Net adverse development of $88 million in short-tail business, primarily in our property and marine portfolios from: •Net adverse development excluding catastrophes of $116 million, with adverse development of $154 million across our retail, wholesale, and program distribution channels in accident year 2018, primarily due to a higher than expected severity of non-catastrophe claims, partly offset by favorable development of $38 million in 2017 and prior accident years on non-catastrophe claims; and •Net favorable catastrophe development of $27 million. There was $41 million of favorable development on the 2017 and 2018 natural catastrophes, mostly in 2017, partly offset by some adverse development on older catastrophe events. |
• |
•Net favorable development of $294 million in our workers’ compensation lines. This included favorable development of $61 million related to our annual assessment of multi-claimant events including industrial accidents, in the 2018 accident year. Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses. This development in accident year 2018 was partially offset by some higher than expected activity from other claims and from involuntary pools. The remaining overall favorable development was mainly in accident years 2015 and prior, generally driven by lower than expected loss experience and related updates to loss development factors; •Net favorable development of $63 million in U.S. commercial excess and umbrella portfolios due to the same factors experienced for |
• |
•Net favorable development of $26 million in our personal excess lines due to the same factors |
•Net favorable development of $66 million in long-tail business, primarily from: •Net favorable development of $101 million in casualty lines, including favorable development of $123 million in accident years 2015 and prior, due to lower than expected loss emergence mainly across primary lines in Continental Europe, U.K., and Asia Pacific, partially offset by adverse development of $22 million in accident years 2016 through 2018, primarily due to adverse attritional and large loss experience in Continental Europe; and •Net adverse development of $50 million in financial lines, with favorable development of $75 million in accident years 2015 and prior, due to lower than expected loss emergence across most regions in D&O and Professional Indemnity, which was more than offset by adverse development of $125 million in accident years 2016 through 2018, primarily due to adverse large loss experience in D&O in the U.K. and Asia Pacific. •Net adverse development of $41 million in short-tail business, primarily due to net adverse development of $27 million in Surety, driven by adverse large loss experience across Continental Europe and Latin America in accident years 2017 and 2018. |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | |||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||||||||||||||||||||||||
Investment and embedded derivative instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 12 | $ | (73) | $ | 2,550 | $ | 11 | $ | (78) | $ | 2,579 | ||||||||||||||||||||||||||||||||||
Options/Futures contracts on notes, bonds, and equities | OA / (AP) | 12 | (3) | 1,457 | 13 | (15) | 1,615 | ||||||||||||||||||||||||||||||||||||||||
Convertible securities (1) | FM AFS / ES | 9 | 0 | 11 | 4 | 0 | 5 | ||||||||||||||||||||||||||||||||||||||||
$ | 33 | $ | (76) | $ | 4,018 | $ | 28 | $ | (93) | $ | 4,199 | ||||||||||||||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Futures contracts on equities (2) | OA / (AP) | $ | 0 | $ | (1) | $ | 648 | $ | 0 | $ | (13) | $ | 613 | ||||||||||||||||||||||||||||||||||
Other | OA / (AP) | 3 | 0 | 113 | 2 | 0 | 63 | ||||||||||||||||||||||||||||||||||||||||
$ | 3 | $ | (1) | $ | 761 | $ | 2 | $ | (13) | $ | 676 | ||||||||||||||||||||||||||||||||||||
GLB (3) | (AP) / (FPB) | $ | 0 | $ | (1,318) | $ | 2,071 | $ | 0 | $ | (897) | $ | 1,510 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||
Consolidated Balance Sheet Location | Fair Value | Notional Value/ Payment Provision | Fair Value | Notional Value/ Payment Provision | |||||||||||||||||||||
(in millions of U.S. dollars) | Derivative Asset | Derivative (Liability) | Derivative Asset | Derivative (Liability) | |||||||||||||||||||||
Investment and embedded derivative instruments: | |||||||||||||||||||||||||
Foreign currency forward contracts | OA / (AP) | $ | 10 | $ | (59 | ) | $ | 2,888 | $ | 15 | $ | (19 | ) | $ | 2,185 | ||||||||||
Cross-currency swaps | OA / (AP) | — | — | — | — | — | 45 | ||||||||||||||||||
Interest rate swaps | OA / (AP) | — | — | — | — | (115 | ) | 5,250 | |||||||||||||||||
Options/Futures contracts on notes, bonds, and equities | OA / (AP) | 12 | (4 | ) | 853 | 13 | (19 | ) | 1,046 | ||||||||||||||||
Convertible securities (1) | FM AFS / ES | 5 | — | 8 | 9 | — | 11 | ||||||||||||||||||
TBAs | FM AFS | — | — | — | 6 | — | 6 | ||||||||||||||||||
$ | 27 | $ | (63 | ) | $ | 3,749 | $ | 43 | $ | (153 | ) | $ | 8,543 | ||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Futures contracts on equities (2) | OA / (AP) | $ | 6 | $ | — | $ | 582 | $ | 23 | $ | — | $ | 507 | ||||||||||||
Other | OA / (AP) | 1 | — | 207 | 2 | — | 74 | ||||||||||||||||||
$ | 7 | $ | — | $ | 789 | $ | 25 | $ | — | $ | 581 | ||||||||||||||
GLB (3) | (AP) / (FPB) | $ | — | $ | (935 | ) | $ | 1,729 | $ | — | $ | (861 | ) | $ | 1,750 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | (in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Investment and embedded derivative instruments: | Investment and embedded derivative instruments: | |||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | (20 | ) | $ | (2 | ) | $ | (57 | ) | $ | 5 | Foreign currency forward contracts | $ | 0 | $ | (20) | $ | 53 | $ | (57) | ||||||||||||||||||
Interest rate swaps | (55 | ) | 26 | (270 | ) | 26 | Interest rate swaps | 0 | (55) | 0 | (270) | |||||||||||||||||||||||||||
All other futures contracts, options, and equities | (22 | ) | 13 | (83 | ) | 47 | All other futures contracts, options, and equities | 9 | (22) | (15) | (83) | |||||||||||||||||||||||||||
Convertible securities (1) | — | — | 2 | — | Convertible securities (1) | 0 | 0 | 0 | 2 | |||||||||||||||||||||||||||||
Total investment and embedded derivative instruments | $ | (97 | ) | $ | 37 | $ | (408 | ) | $ | 78 | Total investment and embedded derivative instruments | $ | 9 | $ | (97) | $ | 38 | $ | (408) | |||||||||||||||||||
GLB and other derivative instruments: | GLB and other derivative instruments: | |||||||||||||||||||||||||||||||||||||
GLB (2) | $ | (106 | ) | $ | 54 | $ | (57 | ) | $ | 133 | GLB (2) | $ | 46 | $ | (106) | $ | (426) | $ | (57) | |||||||||||||||||||
Futures contracts on equities (3) | (6 | ) | (100 | ) | (89 | ) | (122 | ) | Futures contracts on equities (3) | (52) | (6) | (30) | (89) | |||||||||||||||||||||||||
Other | (14 | ) | (8 | ) | (8 | ) | 2 | Other | 1 | (14) | (2) | (8) | ||||||||||||||||||||||||||
Total GLB and other derivative instruments | $ | (126 | ) | $ | (54 | ) | $ | (154 | ) | $ | 13 | Total GLB and other derivative instruments | $ | (5) | $ | (126) | $ | (458) | $ | (154) | ||||||||||||||||||
$ | (223 | ) | $ | (17 | ) | $ | (562 | ) | $ | 91 | $ | 4 | $ | (223) | $ | (420) | $ | (562) |
(1)Includes embedded derivatives. (2)Excludes foreign exchange gains (losses) related to GLB. (3)Related to GMDB and GLB book of business. |
Remaining contractual maturity | |||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Overnight and Continuous | ||||||||||||||||||||||||||||
Collateral held under securities lending agreements: | |||||||||||||||||||||||||||||
Cash | $ | 615 | $ | 346 | |||||||||||||||||||||||||
U.S. Treasury / Agency | 101 | 6 | |||||||||||||||||||||||||||
Non-U.S. | 1,047 | 595 | |||||||||||||||||||||||||||
Corporate and asset-backed securities | 44 | 5 | |||||||||||||||||||||||||||
Mortgage-backed securities | 0 | 18 | |||||||||||||||||||||||||||
Equity securities | 44 | 24 | |||||||||||||||||||||||||||
$ | 1,851 | $ | 994 | ||||||||||||||||||||||||||
Gross amount of recognized liability for securities lending payable | $ | 1,851 | $ | 994 | |||||||||||||||||||||||||
Remaining contractual maturity | ||||||||
September 30 | December 31 | |||||||
2019 | 2018 | |||||||
(in millions of U.S. dollars) | Overnight and Continuous | |||||||
Collateral held under securities lending agreements: | ||||||||
Cash | $ | 562 | $ | 756 | ||||
U.S. Treasury and agency | 70 | 64 | ||||||
Foreign | 249 | 795 | ||||||
Corporate securities | 17 | 15 | ||||||
Mortgage-backed securities | 18 | 45 | ||||||
Equity securities | 46 | 251 | ||||||
$ | 962 | $ | 1,926 | |||||
Gross amount of recognized liability for securities lending payable | $ | 962 | $ | 1,926 |
Remaining contractual maturity | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | ||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Collateral pledged under repurchase agreements: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 4 | $ | 0 | $ | 0 | $ | 4 | $ | 2 | $ | 0 | $ | 0 | $ | 2 | |||||||||||||||||||||||||||||||
U.S. Treasury / Agency | 4 | 0 | 102 | 106 | 107 | 0 | 0 | 107 | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 390 | 462 | 471 | 1,323 | 399 | 476 | 480 | 1,355 | |||||||||||||||||||||||||||||||||||||||
$ | 398 | $ | 462 | $ | 573 | $ | 1,433 | $ | 508 | $ | 476 | $ | 480 | $ | 1,464 | ||||||||||||||||||||||||||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,413 | $ | 1,416 | |||||||||||||||||||||||||||||||||||||||||||
Difference (1) | $ | 20 | $ | 48 |
Remaining contractual maturity | |||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
30-90 Days | Greater than 90 Days | Total | 30-90 Days | Greater than 90 Days | Total | ||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Collateral pledged under repurchase agreements: | |||||||||||||||||||||||
U.S. Treasury and agency | $ | — | $ | 107 | $ | 107 | $ | — | $ | 259 | $ | 259 | |||||||||||
Mortgage-backed securities | 488 | 879 | 1,367 | 496 | 713 | 1,209 | |||||||||||||||||
$ | 488 | $ | 986 | $ | 1,474 | $ | 496 | $ | 972 | $ | 1,468 | ||||||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,416 | $ | 1,418 | |||||||||||||||||||
Difference (1) | $ | 58 | $ | 50 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
CHF | USD | CHF | USD | CHF | USD | CHF | USD | ||||||||||||||||||||
Total dividend distributions per common share | 0.73 | $ | 0.75 | 0.72 | $ | 0.73 | 2.20 | $ | 2.23 | 2.11 | $ | 2.17 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
CHF | USD | CHF | USD | CHF | USD | CHF | USD | ||||||||||||||||||||||||||||||||||||||||
Total dividend distributions per common share | 0.71 | $ | 0.78 | 0.73 | $ | 0.75 | 2.18 | $ | 2.31 | 2.20 | $ | 2.23 |
Three Months Ended September 30 | Nine Months Ended September 30 | October 1, 2019 through October 30, 2019 | |||||||||||||||||
(in millions of U.S. dollars, except share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||
Number of shares repurchased | 3,079,618 | 2,781,307 | 8,417,838 | 5,225,162 | 700,900 | ||||||||||||||
Cost of shares repurchased | $ | 478 | $ | 379 | $ | 1,221 | $ | 703 | $ | 108 | |||||||||
Repurchase authorization remaining at end of period | $ | 258 | $ | 297 | $ | 258 | $ | 297 | $ | 150 |
Three Months Ended | Nine Months Ended | October 1, 2020 through October 29, 2020 | |||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars, except share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Number of shares repurchased | 0 | 3,079,618 | 2,266,150 | 8,417,838 | 52,500 | ||||||||||||||||||||||||
Cost of shares repurchased | $ | 0 | $ | 478 | $ | 326 | $ | 1,221 | $ | 7 | |||||||||||||||||||
Repurchase authorization remaining at end of period | $ | 1,124 | $ | 258 | $ | 1,124 | $ | 258 | $ | 1,117 |
Pension Benefit Plans | Other Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Three Months Ended September 30 | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Service cost | $ | 0 | $ | 1 | $ | 12 | $ | 3 | $ | 0 | $ | 0 | |||||||||||||||||||||||
Non-service cost: | |||||||||||||||||||||||||||||||||||
Interest cost | 24 | 6 | 30 | 6 | 1 | 1 | |||||||||||||||||||||||||||||
Expected return on plan assets | (56) | (11) | (47) | (11) | (1) | (1) | |||||||||||||||||||||||||||||
Amortization of net actuarial loss | 0 | 0 | 0 | 1 | 0 | 0 | |||||||||||||||||||||||||||||
Amortization of prior service cost | 0 | 1 | 0 | 0 | (20) | (20) | |||||||||||||||||||||||||||||
Settlements | 1 | 0 | 1 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Total non-service (benefit) cost | (31) | (4) | (16) | (4) | (20) | (20) | |||||||||||||||||||||||||||||
Net periodic (benefit) cost | $ | (31) | $ | (3) | $ | (4) | $ | (1) | $ | (20) | $ | (20) |
Pension Benefit Plans | Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefit Plans | Other Postretirement Benefit Plans | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30 | Nine Months Ended September 30 | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 0 | $ | 3 | $ | 37 | $ | 8 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Non-service cost: | Non-service cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 30 | 6 | 26 | 6 | 1 | 1 | Interest cost | 74 | 17 | 89 | 20 | 2 | 3 | |||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (47 | ) | (11 | ) | (53 | ) | (12 | ) | (1 | ) | (2 | ) | Expected return on plan assets | (168) | (32) | (142) | (33) | (3) | (3) | |||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | — | 1 | — | 1 | — | — | Amortization of net actuarial loss | 0 | 1 | 0 | 2 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | — | (20 | ) | (21 | ) | Amortization of prior service cost | 0 | 1 | 0 | 0 | (60) | (60) | |||||||||||||||||||||||||||||||||||||||||||
Curtailments | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | 1 | — | — | — | — | — | Settlements | 3 | 0 | 1 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Total non-service (benefit) cost | (16 | ) | (4 | ) | (27 | ) | (5 | ) | (20 | ) | (23 | ) | Total non-service (benefit) cost | (91) | (13) | (52) | (11) | (61) | (60) | |||||||||||||||||||||||||||||||||||||||
Net periodic (benefit) cost | $ | (4 | ) | $ | (1 | ) | $ | (13 | ) | $ | (2 | ) | $ | (20 | ) | $ | (22 | ) | Net periodic (benefit) cost | $ | (91) | $ | (10) | $ | (15) | $ | (3) | $ | (61) | $ | (60) |
Pension Benefit Plans | Other Postretirement Benefit Plans | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Nine Months Ended September 30 | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Service cost | $ | 37 | $ | 8 | $ | 43 | $ | 9 | $ | — | $ | 1 | |||||||||||
Non-service cost: | |||||||||||||||||||||||
Interest cost | 89 | 20 | 79 | 20 | 3 | 3 | |||||||||||||||||
Expected return on plan assets | (142 | ) | (33 | ) | (159 | ) | (38 | ) | (3 | ) | (4 | ) | |||||||||||
Amortization of net actuarial loss | — | 2 | — | 1 | — | — | |||||||||||||||||
Amortization of prior service cost | — | — | — | — | (60 | ) | (64 | ) | |||||||||||||||
Curtailments | — | — | — | — | — | (2 | ) | ||||||||||||||||
Settlements | 1 | — | 1 | — | — | — | |||||||||||||||||
Total non-service (benefit) cost | (52 | ) | (11 | ) | (79 | ) | (17 | ) | (60 | ) | (67 | ) | |||||||||||
Net periodic (benefit) cost | $ | (15 | ) | $ | (3 | ) | $ | (36 | ) | $ | (8 | ) | $ | (60 | ) | $ | (66 | ) |
Pension Benefit Plans | Other Postretirement Benefit Plans | Pension Benefit Plans | Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | 2019 | 2018 | 2019 | 2018 | Three Months Ended September 30 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||
Service Cost: | ||||||||||||||||||||||||||||||||||||||||||
Service cost: | Service cost: | |||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 2 | $ | 2 | $ | — | $ | — | Losses and loss expenses | $ | 0 | $ | 2 | $ | 0 | $ | 0 | |||||||||||||||||||||||||
Administrative expenses | 13 | 15 | — | 1 | Administrative expenses | 1 | 13 | 0 | 0 | |||||||||||||||||||||||||||||||||
Total service cost | 15 | 17 | — | 1 | Total service cost | 1 | 15 | 0 | 0 | |||||||||||||||||||||||||||||||||
Non-service Cost: | ||||||||||||||||||||||||||||||||||||||||||
Non-service cost: | Non-service cost: | |||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | (1 | ) | (3 | ) | (2 | ) | (3 | ) | Losses and loss expenses | (3) | (1) | (2) | (2) | |||||||||||||||||||||||||||||
Administrative expenses | (19 | ) | (29 | ) | (18 | ) | (20 | ) | Administrative expenses | (32) | (19) | (18) | (18) | |||||||||||||||||||||||||||||
Total non-service (benefit) cost | (20 | ) | (32 | ) | (20 | ) | (23 | ) | Total non-service (benefit) cost | (35) | (20) | (20) | (20) | |||||||||||||||||||||||||||||
Net periodic (benefit) cost | $ | (5 | ) | $ | (15 | ) | $ | (20 | ) | $ | (22 | ) | Net periodic (benefit) cost | $ | (34) | $ | (5) | $ | (20) | $ | (20) |
Pension Benefit Plans | Other Postretirement Benefit Plans | |||||||||||||||
Nine Months Ended September 30 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||
Service Cost: | ||||||||||||||||
Losses and loss expenses | $ | 5 | $ | 5 | $ | — | $ | — | ||||||||
Administrative expenses | 40 | 47 | — | 1 | ||||||||||||
Total service cost | 45 | 52 | — | 1 | ||||||||||||
Non-service Cost: | ||||||||||||||||
Losses and loss expenses | (5 | ) | (8 | ) | (6 | ) | (7 | ) | ||||||||
Administrative expenses | (58 | ) | (88 | ) | (54 | ) | (60 | ) | ||||||||
Total non-service (benefit) cost | (63 | ) | (96 | ) | (60 | ) | (67 | ) | ||||||||
Net periodic (benefit) cost | $ | (18 | ) | $ | (44 | ) | $ | (60 | ) | $ | (66 | ) |
Pension Benefit Plans | Other Postretirement Benefit Plans | |||||||||||||||||||||||||
Nine Months Ended September 30 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
Service cost: | ||||||||||||||||||||||||||
Losses and loss expenses | $ | 0 | $ | 5 | $ | 0 | $ | 0 | ||||||||||||||||||
Administrative expenses | 3 | 40 | 0 | 0 | ||||||||||||||||||||||
Total service cost | 3 | 45 | 0 | 0 | ||||||||||||||||||||||
Non-service cost: | ||||||||||||||||||||||||||
Losses and loss expenses | (9) | (5) | (6) | (6) | ||||||||||||||||||||||
Administrative expenses | (95) | (58) | (55) | (54) | ||||||||||||||||||||||
Total non-service (benefit) cost | (104) | (63) | (61) | (60) | ||||||||||||||||||||||
Net periodic (benefit) cost | $ | (101) | $ | (18) | $ | (61) | $ | (60) |
For the Three Months Ended September 30, 2020 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Segment Measure Reclass | Chubb Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 3,778 | $ | 1,285 | $ | 986 | $ | 2,238 | $ | 181 | $ | 610 | $ | 0 | $ | 0 | $ | 9,078 | |||||||||||||||||||||||||||||||||||
Net premiums earned | 3,456 | 1,231 | 971 | 2,337 | 171 | 599 | 0 | 0 | 8,765 | ||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 2,444 | 961 | 845 | 1,192 | 154 | 183 | 55 | 1 | 5,835 | ||||||||||||||||||||||||||||||||||||||||||||
Policy benefits | 0 | 0 | 0 | 0 | 0 | 174 | 0 | 24 | 198 | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 489 | 248 | 56 | 637 | 40 | 175 | 0 | 0 | 1,645 | ||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 243 | 65 | 5 | 260 | 9 | 80 | 71 | 0 | 733 | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 280 | (43) | 65 | 248 | (32) | (13) | (126) | (25) | 354 | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 510 | 64 | 7 | 130 | 85 | 95 | (19) | (32) | 840 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | 7 | 1 | 0 | 1 | 0 | (23) | (415) | (56) | (485) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization expense of purchased intangibles | 0 | 2 | 7 | 10 | 0 | 1 | 52 | 0 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
Segment income | $ | 783 | $ | 18 | $ | 65 | $ | 367 | $ | 53 | $ | 104 | $ | 218 | $ | (1) | $ | 1,607 | |||||||||||||||||||||||||||||||||||
Net realized gains (losses) | (142) | 1 | (141) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 130 | 0 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 142 | 0 | 142 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (196) | $ | 0 | $ | 1,194 | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2019 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Segment Measure Reclass | Chubb Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 3,452 | $ | 1,251 | $ | 938 | $ | 2,228 | $ | 141 | $ | 612 | $ | 0 | $ | 0 | $ | 8,622 | |||||||||||||||||||||||||||||||||||
Net premiums earned | 3,185 | 1,187 | 941 | 2,256 | 160 | 598 | 0 | 0 | 8,327 | ||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 2,051 | 674 | 880 | 1,154 | 79 | 190 | 38 | (14) | 5,052 | ||||||||||||||||||||||||||||||||||||||||||||
Policy benefits | 0 | 0 | 0 | 0 | 0 | 165 | 0 | (7) | 158 | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 459 | 240 | 56 | 630 | 42 | 176 | 0 | 0 | 1,603 | ||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 256 | 72 | 4 | 257 | 9 | 80 | 74 | 0 | 752 | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 419 | 201 | 1 | 215 | 30 | (13) | (112) | 21 | 762 | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 538 | 66 | 8 | 147 | 71 | 92 | (28) | (21) | 873 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | 5 | 1 | 0 | 2 | 0 | (17) | (34) | (14) | (57) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization expense of purchased intangibles | 0 | 3 | 7 | 11 | 0 | 1 | 54 | 0 | 76 | ||||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) | $ | 952 | $ | 263 | $ | 2 | $ | 349 | $ | 101 | $ | 95 | $ | (160) | $ | 14 | $ | 1,616 | |||||||||||||||||||||||||||||||||||
Net realized gains (losses) including OTTI | (141) | (14) | (155) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 138 | 0 | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chubb integration expenses | 2 | 0 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 230 | 0 | 230 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (671) | $ | 0 | $ | 1,091 | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2019 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2020 (in millions of U.S. dollars) | For the Nine Months Ended September 30, 2020 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Segment Measure Reclass | Chubb Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 3,452 | $ | 1,251 | $ | 938 | $ | 2,228 | $ | 141 | $ | 612 | $ | — | $ | 8,622 | Net premiums written | $ | 10,750 | $ | 3,719 | $ | 1,604 | $ | 6,857 | $ | 606 | $ | 1,874 | $ | 0 | $ | 0 | $ | 25,410 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | 3,185 | 1,187 | 941 | 2,256 | 160 | 598 | — | 8,327 | Net premiums earned | 10,427 | 3,623 | 1,441 | 6,838 | 520 | 1,838 | 0 | 0 | 24,687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 2,051 | 674 | 866 | 1,154 | 79 | 190 | 38 | 5,052 | Losses and loss expenses | 8,123 | 2,406 | 1,223 | 3,935 | 314 | 556 | 342 | (2) | 16,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 158 | — | 158 | Policy benefits | — | 0 | 0 | 0 | 0 | 542 | 0 | 8 | 550 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 459 | 240 | 56 | 630 | 42 | 176 | — | 1,603 | Policy acquisition costs | 1,452 | 724 | 96 | 1,903 | 127 | 551 | 0 | 0 | 4,853 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 256 | 72 | 4 | 257 | 9 | 80 | 74 | 752 | Administrative expenses | 751 | 199 | 12 | 759 | 28 | 238 | 214 | 0 | 2,201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 419 | 201 | 15 | 215 | 30 | (6 | ) | (112 | ) | 762 | Underwriting income (loss) | 101 | 294 | 110 | 241 | 51 | (49) | (556) | (6) | 186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 532 | 66 | 8 | 148 | 55 | 92 | (28 | ) | 873 | Net investment income (loss) | 1,544 | 195 | 23 | 396 | 214 | 285 | (65) | (64) | 2,528 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (1 | ) | 1 | — | 3 | (16 | ) | (10 | ) | (34 | ) | (57 | ) | Other (income) expense | 19 | 4 | 1 | 10 | 1 | (52) | (283) | (72) | (372) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense of purchased intangibles | — | 3 | 7 | 11 | — | 1 | 54 | 76 | Amortization expense of purchased intangibles | 0 | 8 | 20 | 33 | 0 | 3 | 153 | 0 | 217 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) | $ | 952 | $ | 263 | $ | 16 | $ | 349 | $ | 101 | $ | 95 | $ | (160 | ) | $ | 1,616 | Segment income (loss) | $ | 1,626 | $ | 477 | $ | 112 | $ | 594 | $ | 264 | $ | 285 | $ | (491) | $ | 2 | $ | 2,869 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) including OTTI | (155 | ) | (155 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) | Net realized gains (losses) | (1,067) | (2) | (1,069) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 138 | 138 | Interest expense | 390 | 0 | 390 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chubb integration expenses | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 230 | 230 | Income tax expense | 295 | 0 | 295 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (685 | ) | $ | 1,091 | Net income (loss) | $ | (2,243) | $ | 0 | $ | 1,115 |
For the Three Months Ended September 30, 2018 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 3,199 | $ | 1,218 | $ | 884 | $ | 2,081 | $ | 164 | $ | 564 | $ | — | $ | 8,110 | |||||||||||||||
Net premiums earned | 3,019 | 1,167 | 857 | 2,157 | 157 | 551 | — | 7,908 | |||||||||||||||||||||||
Losses and loss expenses | 1,881 | 860 | 719 | 1,114 | 86 | 195 | 13 | 4,868 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 127 | — | 127 | |||||||||||||||||||||||
Policy acquisition costs | 458 | 236 | 49 | 582 | 40 | 139 | — | 1,504 | |||||||||||||||||||||||
Administrative expenses | 251 | 69 | 2 | 252 | 10 | 77 | 58 | 719 | |||||||||||||||||||||||
Underwriting income (loss) | 429 | 2 | 87 | 209 | 21 | 13 | (71 | ) | 690 | ||||||||||||||||||||||
Net investment income (loss) | 503 | 59 | 7 | 155 | 63 | 85 | (49 | ) | 823 | ||||||||||||||||||||||
Other (income) expense | (1 | ) | — | — | (7 | ) | (13 | ) | 20 | (144 | ) | (145 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 4 | 7 | 8 | — | — | 64 | 83 | |||||||||||||||||||||||
Segment income (loss) | $ | 933 | $ | 57 | $ | 87 | $ | 363 | $ | 97 | $ | 78 | $ | (40 | ) | $ | 1,575 | ||||||||||||||
Net realized gains (losses) including OTTI | 19 | 19 | |||||||||||||||||||||||||||||
Interest expense | 164 | 164 | |||||||||||||||||||||||||||||
Chubb integration expenses | 16 | 16 | |||||||||||||||||||||||||||||
Income tax expense | 183 | 183 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (384 | ) | $ | 1,231 |
For the Nine Months Ended September 30, 2019 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | For the Nine Months Ended September 30, 2019 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Segment Measure Reclass | Chubb Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 9,937 | $ | 3,616 | $ | 1,534 | $ | 6,881 | $ | 540 | $ | 1,770 | $ | — | $ | 24,278 | Net premiums written | $ | 9,937 | $ | 3,616 | $ | 1,534 | $ | 6,881 | $ | 540 | $ | 1,770 | $ | 0 | $ | 0 | $ | 24,278 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | 9,660 | 3,509 | 1,374 | 6,595 | 487 | 1,730 | — | 23,355 | Net premiums earned | 9,660 | 3,509 | 1,374 | 6,595 | 487 | 1,730 | 0 | 0 | 23,355 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 6,238 | 2,178 | 1,155 | 3,385 | 245 | 581 | 83 | 13,865 | Losses and loss expenses | 6,238 | 2,178 | 1,163 | 3,385 | 245 | 581 | 83 | (8) | 13,865 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 515 | — | 515 | Policy benefits | 0 | 0 | 0 | 0 | 0 | 495 | 0 | 20 | 515 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 1,377 | 708 | 90 | 1,855 | 127 | 454 | — | 4,611 | Policy acquisition costs | 1,377 | 708 | 90 | 1,855 | 127 | 454 | 0 | 0 | 4,611 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 755 | 211 | 9 | 771 | 26 | 237 | 211 | 2,220 | Administrative expenses | 755 | 211 | 9 | 771 | 26 | 237 | 211 | 0 | 2,220 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 1,290 | 412 | 120 | 584 | 89 | (57 | ) | (294 | ) | 2,144 | Underwriting income (loss) | 1,290 | 412 | 112 | 584 | 89 | (37) | (294) | (12) | 2,144 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 1,563 | 194 | 22 | 443 | 166 | 278 | (98 | ) | 2,568 | Net investment income (loss) | 1,584 | 194 | 22 | 444 | 206 | 278 | (98) | (62) | 2,568 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (4 | ) | 2 | 1 | 10 | (40 | ) | (57 | ) | (238 | ) | (326 | ) | Other (income) expense | 17 | 2 | 1 | 11 | 0 | (37) | (238) | (82) | (326) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense of purchased intangibles | — | 9 | 21 | 34 | — | 2 | 163 | 229 | Amortization expense of purchased intangibles | 0 | 9 | 21 | 34 | 0 | 2 | 163 | 0 | 229 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) | $ | 2,857 | $ | 595 | $ | 120 | $ | 983 | $ | 295 | $ | 276 | $ | (317 | ) | $ | 4,809 | Segment income (loss) | $ | 2,857 | $ | 595 | $ | 112 | $ | 983 | $ | 295 | $ | 276 | $ | (317) | $ | 8 | $ | 4,809 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) including OTTI | (475 | ) | (475 | ) | Net realized gains (losses) including OTTI | (467) | (8) | (475) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 418 | 418 | Interest expense | 418 | 0 | 418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chubb integration expenses | 9 | 9 | Chubb integration expenses | 9 | 0 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 626 | 626 | Income tax expense | 626 | 0 | 626 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (1,845 | ) | $ | 3,281 | Net income (loss) | $ | (1,837) | $ | 0 | $ | 3,281 |
For the Nine Months Ended September 30, 2018 (in millions of U.S. dollars) | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Life Insurance | Corporate | Chubb Consolidated | |||||||||||||||||||||||
Net premiums written | $ | 9,342 | $ | 3,601 | $ | 1,380 | $ | 6,664 | $ | 554 | $ | 1,688 | $ | — | $ | 23,229 | |||||||||||||||
Net premiums earned | 9,325 | 3,463 | 1,251 | 6,425 | 492 | 1,643 | — | 22,599 | |||||||||||||||||||||||
Losses and loss expenses | 5,873 | 2,474 | 955 | 3,263 | 236 | 584 | 72 | 13,457 | |||||||||||||||||||||||
Policy benefits | — | — | — | — | — | 428 | — | 428 | |||||||||||||||||||||||
Policy acquisition costs | 1,378 | 701 | 74 | 1,754 | 120 | 405 | — | 4,432 | |||||||||||||||||||||||
Administrative expenses | 735 | 202 | — | 757 | 29 | 235 | 200 | 2,158 | |||||||||||||||||||||||
Underwriting income (loss) | 1,339 | 86 | 222 | 651 | 107 | (9 | ) | (272 | ) | 2,124 | |||||||||||||||||||||
Net investment income (loss) | 1,516 | 177 | 20 | 461 | 192 | 253 | (162 | ) | 2,457 | ||||||||||||||||||||||
Other (income) expense | (20 | ) | 1 | 1 | (12 | ) | (26 | ) | 24 | (275 | ) | (307 | ) | ||||||||||||||||||
Amortization expense of purchased intangibles | — | 10 | 21 | 29 | — | 1 | 192 | 253 | |||||||||||||||||||||||
Segment income (loss) | $ | 2,875 | $ | 252 | $ | 220 | $ | 1,095 | $ | 325 | $ | 219 | $ | (351 | ) | $ | 4,635 | ||||||||||||||
Net realized gains (losses) including OTTI | 35 | 35 | |||||||||||||||||||||||||||||
Interest expense | 488 | 488 | |||||||||||||||||||||||||||||
Chubb integration expenses | 39 | 39 | |||||||||||||||||||||||||||||
Income tax expense | 536 | 536 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (1,379 | ) | $ | 3,607 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars, except share and per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | 1,194 | $ | 1,091 | $ | 1,115 | $ | 3,281 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic earnings per share: | |||||||||||||||||||||||
Weighted-average shares outstanding | 451,794,046 | 454,975,143 | 451,683,093 | 456,987,560 | |||||||||||||||||||
Denominator for diluted earnings per share: | |||||||||||||||||||||||
Share-based compensation plans | 1,471,434 | 3,175,226 | 1,894,699 | 2,937,026 | |||||||||||||||||||
Weighted-average shares outstanding and assumed conversions | 453,265,480 | 458,150,369 | 453,577,792 | 459,924,586 | |||||||||||||||||||
Basic earnings per share | $ | 2.64 | $ | 2.40 | $ | 2.47 | $ | 7.18 | |||||||||||||||
Diluted earnings per share | $ | 2.63 | $ | 2.38 | $ | 2.46 | $ | 7.13 | |||||||||||||||
Potential anti-dilutive share conversions | 7,053,316 | 575,039 | 6,767,727 | 3,874,310 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars, except share and per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Numerator: | |||||||||||||||
Net income | $ | 1,091 | $ | 1,231 | $ | 3,281 | $ | 3,607 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per share: | |||||||||||||||
Weighted-average shares outstanding | 454,975,143 | 462,981,973 | 456,987,560 | 464,644,013 | |||||||||||
Denominator for diluted earnings per share: | |||||||||||||||
Share-based compensation plans | 3,175,226 | 3,034,525 | 2,937,026 | 3,360,511 | |||||||||||
Weighted-average shares outstanding and assumed conversions | 458,150,369 | 466,016,498 | 459,924,586 | 468,004,524 | |||||||||||
Basic earnings per share | $ | 2.40 | $ | 2.66 | $ | 7.18 | $ | 7.76 | |||||||
Diluted earnings per share | $ | 2.38 | $ | 2.64 | $ | 7.13 | $ | 7.71 | |||||||
Potential anti-dilutive share conversions | 575,039 | 3,763,844 | 3,874,310 | 3,467,000 |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Investments | $ | 0 | $ | 724 | $ | 115,323 | $ | 0 | $ | 116,047 | |||||||||||||||||||
Cash (1) | 31 | 0 | 1,799 | (123) | 1,707 | ||||||||||||||||||||||||
Restricted cash | 0 | 0 | 166 | 0 | 166 | ||||||||||||||||||||||||
Insurance and reinsurance balances receivable | 0 | 0 | 13,684 | (3,096) | 10,588 | ||||||||||||||||||||||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | 25,482 | (9,812) | 15,670 | ||||||||||||||||||||||||
Reinsurance recoverable on policy benefits | 0 | 0 | 298 | (95) | 203 | ||||||||||||||||||||||||
Value of business acquired | 0 | 0 | 286 | 0 | 286 | ||||||||||||||||||||||||
Goodwill and other intangible assets | 0 | 0 | 21,103 | 0 | 21,103 | ||||||||||||||||||||||||
Investments in subsidiaries | 53,715 | 54,125 | 0 | (107,840) | 0 | ||||||||||||||||||||||||
Due from subsidiaries and affiliates, net | 2,991 | 0 | 171 | (3,162) | 0 | ||||||||||||||||||||||||
Other assets | 8 | 391 | 23,459 | (1,842) | 22,016 | ||||||||||||||||||||||||
Total assets | $ | 56,745 | $ | 55,240 | $ | 201,771 | $ | (125,970) | $ | 187,786 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 0 | $ | 0 | $ | 77,467 | $ | (9,562) | $ | 67,905 | |||||||||||||||||||
Unearned premiums | 0 | 0 | 18,695 | (1,193) | 17,502 | ||||||||||||||||||||||||
Future policy benefits | 0 | 0 | 6,050 | (95) | 5,955 | ||||||||||||||||||||||||
Due to subsidiaries and affiliates, net | 0 | 3,162 | 0 | (3,162) | 0 | ||||||||||||||||||||||||
Affiliated notional cash pooling programs (1) | 0 | 123 | 0 | (123) | 0 | ||||||||||||||||||||||||
Repurchase agreements | 0 | 0 | 1,413 | 0 | 1,413 | ||||||||||||||||||||||||
Short-term debt | 0 | 1,300 | 0 | 0 | 1,300 | ||||||||||||||||||||||||
Long-term debt | 0 | 14,830 | 0 | 0 | 14,830 | ||||||||||||||||||||||||
Trust preferred securities | 0 | 308 | 0 | 0 | 308 | ||||||||||||||||||||||||
Other liabilities | 332 | 1,374 | 24,449 | (3,995) | 22,160 | ||||||||||||||||||||||||
Total liabilities | 332 | 21,097 | 128,074 | (18,130) | 131,373 | ||||||||||||||||||||||||
Total shareholders’ equity | 56,413 | 34,143 | 73,697 | (107,840) | 56,413 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 56,745 | $ | 55,240 | $ | 201,771 | $ | (125,970) | $ | 187,786 |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | — | $ | 227 | $ | 106,951 | $ | — | $ | 107,178 | |||||||||
Cash (1) | 2 | — | 2,706 | (1,230 | ) | 1,478 | |||||||||||||
Restricted cash | — | — | 111 | — | 111 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 12,519 | (2,116 | ) | 10,403 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 25,284 | (9,757 | ) | 15,527 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 293 | (94 | ) | 199 | |||||||||||||
Value of business acquired | — | — | 274 | — | 274 | ||||||||||||||
Goodwill and other intangible assets | — | — | 21,378 | — | 21,378 | ||||||||||||||
Investments in subsidiaries | 49,471 | 53,381 | — | (102,852 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 6,068 | — | — | (6,068 | ) | — | |||||||||||||
Other assets | 7 | 486 | 20,011 | (1,904 | ) | 18,600 | |||||||||||||
Total assets | $ | 55,548 | $ | 54,094 | $ | 189,527 | $ | (124,021 | ) | $ | 175,148 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 72,389 | $ | (9,377 | ) | $ | 63,012 | ||||||||
Unearned premiums | — | — | 17,767 | (1,196 | ) | 16,571 | |||||||||||||
Future policy benefits | — | — | 5,832 | (94 | ) | 5,738 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 5,953 | 115 | (6,068 | ) | — | |||||||||||||
Affiliated notional cash pooling programs (1) | 628 | 602 | — | (1,230 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,416 | — | 1,416 | ||||||||||||||
Short-term debt | — | — | 10 | — | 10 | ||||||||||||||
Long-term debt | — | 13,285 | — | — | 13,285 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 348 | 1,814 | 21,278 | (3,204 | ) | 20,236 | |||||||||||||
Total liabilities | 976 | 21,962 | 118,807 | (21,169 | ) | 120,576 | |||||||||||||
Total shareholders’ equity | 54,572 | 32,132 | 70,720 | (102,852 | ) | 54,572 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 55,548 | $ | 54,094 | $ | 189,527 | $ | (124,021 | ) | $ | 175,148 |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Investments | $ | — | $ | 214 | $ | 100,754 | $ | — | $ | 100,968 | |||||||||
Cash (1) | 1 | 2 | 1,896 | (652 | ) | 1,247 | |||||||||||||
Restricted cash | — | — | 93 | — | 93 | ||||||||||||||
Insurance and reinsurance balances receivable | — | — | 11,861 | (1,786 | ) | 10,075 | |||||||||||||
Reinsurance recoverable on losses and loss expenses | — | — | 26,422 | (10,429 | ) | 15,993 | |||||||||||||
Reinsurance recoverable on policy benefits | — | — | 306 | (104 | ) | 202 | |||||||||||||
Value of business acquired | — | — | 295 | — | 295 | ||||||||||||||
Goodwill and other intangible assets | — | — | 21,414 | — | 21,414 | ||||||||||||||
Investments in subsidiaries | 43,531 | 50,209 | — | (93,740 | ) | — | |||||||||||||
Due from subsidiaries and affiliates, net | 7,074 | — | 598 | (7,672 | ) | — | |||||||||||||
Other assets | 3 | 1,007 | 18,102 | (1,628 | ) | 17,484 | |||||||||||||
Total assets | $ | 50,609 | $ | 51,432 | $ | 181,741 | $ | (116,011 | ) | $ | 167,771 | ||||||||
Liabilities | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 72,857 | $ | (9,897 | ) | $ | 62,960 | ||||||||
Unearned premiums | — | — | 16,611 | (1,079 | ) | 15,532 | |||||||||||||
Future policy benefits | — | — | 5,610 | (104 | ) | 5,506 | |||||||||||||
Due to subsidiaries and affiliates, net | — | 7,672 | — | (7,672 | ) | — | |||||||||||||
Affiliated notional cash pooling programs (1) | 35 | 617 | — | (652 | ) | — | |||||||||||||
Repurchase agreements | — | — | 1,418 | — | 1,418 | ||||||||||||||
Short-term debt | — | 500 | 9 | — | 509 | ||||||||||||||
Long-term debt | — | 12,086 | 1 | — | 12,087 | ||||||||||||||
Trust preferred securities | — | 308 | — | — | 308 | ||||||||||||||
Other liabilities | 262 | 2,545 | 19,199 | (2,867 | ) | 19,139 | |||||||||||||
Total liabilities | 297 | 23,728 | 115,705 | (22,271 | ) | 117,459 | |||||||||||||
Total shareholders’ equity | 50,312 | 27,704 | 66,036 | (93,740 | ) | 50,312 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 50,609 | $ | 51,432 | $ | 181,741 | $ | (116,011 | ) | $ | 167,771 |
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Investments | $ | 0 | $ | 1,013 | $ | 108,221 | $ | 0 | $ | 109,234 | |||||||||||||||||||
Cash (1) | 2 | 442 | 1,093 | 0 | 1,537 | ||||||||||||||||||||||||
Restricted cash | 0 | 0 | 109 | 0 | 109 | ||||||||||||||||||||||||
Insurance and reinsurance balances receivable | 0 | 0 | 12,920 | (2,563) | 10,357 | ||||||||||||||||||||||||
Reinsurance recoverable on losses and loss expenses | 0 | 0 | 24,780 | (9,599) | 15,181 | ||||||||||||||||||||||||
Reinsurance recoverable on policy benefits | 0 | 0 | 292 | (95) | 197 | ||||||||||||||||||||||||
Value of business acquired | 0 | 0 | 306 | 0 | 306 | ||||||||||||||||||||||||
Goodwill and other intangible assets | 0 | 0 | 21,359 | 0 | 21,359 | ||||||||||||||||||||||||
Investments in subsidiaries | 50,853 | 52,076 | 0 | (102,929) | 0 | ||||||||||||||||||||||||
Due from subsidiaries and affiliates, net | 4,776 | 0 | 0 | (4,776) | 0 | ||||||||||||||||||||||||
Other assets | 12 | 408 | 20,072 | (1,829) | 18,663 | ||||||||||||||||||||||||
Total assets | $ | 55,643 | $ | 53,939 | $ | 189,152 | $ | (121,791) | $ | 176,943 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 0 | $ | 0 | $ | 71,916 | $ | (9,226) | $ | 62,690 | |||||||||||||||||||
Unearned premiums | 0 | 0 | 17,978 | (1,207) | 16,771 | ||||||||||||||||||||||||
Future policy benefits | 0 | 0 | 5,909 | (95) | 5,814 | ||||||||||||||||||||||||
Due to subsidiaries and affiliates, net | 0 | 4,446 | 330 | (4,776) | 0 | ||||||||||||||||||||||||
Repurchase agreements | 0 | 0 | 1,416 | 0 | 1,416 | ||||||||||||||||||||||||
Short-term debt | 0 | 1,298 | 1 | 0 | 1,299 | ||||||||||||||||||||||||
Long-term debt | 0 | 13,559 | 0 | 0 | 13,559 | ||||||||||||||||||||||||
Trust preferred securities | 0 | 308 | 0 | 0 | 308 | ||||||||||||||||||||||||
Other liabilities | 312 | 1,649 | 21,352 | (3,558) | 19,755 | ||||||||||||||||||||||||
Total liabilities | 312 | 21,260 | 118,902 | (18,862) | 121,612 | ||||||||||||||||||||||||
Total shareholders’ equity | 55,331 | 32,679 | 70,250 | (102,929) | 55,331 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 55,643 | $ | 53,939 | $ | 189,152 | $ | (121,791) | $ | 176,943 |
For the Three Months Ended September 30, 2020 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Net premiums written | $ | 0 | $ | 0 | $ | 9,078 | $ | 0 | $ | 9,078 | |||||||||||||||||||
Net premiums earned | 0 | 0 | 8,765 | 0 | 8,765 | ||||||||||||||||||||||||
Net investment income | 0 | 1 | 839 | 0 | 840 | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | 1,174 | 516 | 0 | (1,690) | 0 | ||||||||||||||||||||||||
Net realized gains (losses) | 3 | (192) | 48 | 0 | (141) | ||||||||||||||||||||||||
Losses and loss expenses | 0 | 0 | 5,835 | 0 | 5,835 | ||||||||||||||||||||||||
Policy benefits | 0 | 0 | 198 | 0 | 198 | ||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | 21 | (33) | 2,390 | 0 | 2,378 | ||||||||||||||||||||||||
Interest (income) expense | (34) | 151 | 13 | 0 | 130 | ||||||||||||||||||||||||
Other (income) expense | (10) | (2) | (473) | 0 | (485) | ||||||||||||||||||||||||
Amortization of purchased intangibles | 0 | 0 | 72 | 0 | 72 | ||||||||||||||||||||||||
Income tax expense (benefit) | 6 | (66) | 202 | 0 | 142 | ||||||||||||||||||||||||
Net income | $ | 1,194 | $ | 275 | $ | 1,415 | $ | (1,690) | $ | 1,194 | |||||||||||||||||||
Comprehensive income | $ | 1,952 | $ | 812 | $ | 2,180 | $ | (2,992) | $ | 1,952 |
For the Three Months Ended September 30, 2019 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Net premiums written | $ | 0 | $ | 0 | $ | 8,622 | $ | 0 | $ | 8,622 | |||||||||||||||||||
Net premiums earned | 0 | 0 | 8,327 | 0 | 8,327 | ||||||||||||||||||||||||
Net investment income | 1 | (3) | 875 | 0 | 873 | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | 1,053 | 824 | 0 | (1,877) | 0 | ||||||||||||||||||||||||
Net realized gains (losses) including OTTI | (4) | 68 | (219) | 0 | (155) | ||||||||||||||||||||||||
Losses and loss expenses | 0 | 0 | 5,052 | 0 | 5,052 | ||||||||||||||||||||||||
Policy benefits | 0 | 0 | 158 | 0 | 158 | ||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | 22 | (5) | 2,338 | 0 | 2,355 | ||||||||||||||||||||||||
Interest (income) expense | (59) | 171 | 26 | 0 | 138 | ||||||||||||||||||||||||
Other (income) expense | (7) | (3) | (47) | 0 | (57) | ||||||||||||||||||||||||
Amortization of purchased intangibles | 0 | 0 | 76 | 0 | 76 | ||||||||||||||||||||||||
Chubb integration expenses | 0 | 0 | 2 | 0 | 2 | ||||||||||||||||||||||||
Income tax expense (benefit) | 3 | (33) | 260 | 0 | 230 | ||||||||||||||||||||||||
Net income | $ | 1,091 | $ | 759 | $ | 1,118 | $ | (1,877) | $ | 1,091 | |||||||||||||||||||
Comprehensive income | $ | 1,473 | $ | 1,138 | $ | 1,517 | $ | (2,655) | $ | 1,473 |
For the Three Months Ended September 30, 2019 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 8,622 | $ | — | $ | 8,622 | |||||||||
Net premiums earned | — | — | 8,327 | — | 8,327 | ||||||||||||||
Net investment income | 1 | (3 | ) | 875 | — | 873 | |||||||||||||
Equity in earnings of subsidiaries | 1,053 | 824 | — | (1,877 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | (4 | ) | 68 | (219 | ) | — | (155 | ) | |||||||||||
Losses and loss expenses | — | — | 5,052 | — | 5,052 | ||||||||||||||
Policy benefits | — | — | 158 | — | 158 | ||||||||||||||
Policy acquisition costs and administrative expenses | 22 | (5 | ) | 2,338 | — | 2,355 | |||||||||||||
Interest (income) expense | (59 | ) | 171 | 26 | — | 138 | |||||||||||||
Other (income) expense | (7 | ) | (3 | ) | (47 | ) | — | (57 | ) | ||||||||||
Amortization of purchased intangibles | — | — | 76 | — | 76 | ||||||||||||||
Chubb integration expenses | — | — | 2 | — | 2 | ||||||||||||||
Income tax expense (benefit) | 3 | (33 | ) | 260 | — | 230 | |||||||||||||
Net income | $ | 1,091 | $ | 759 | $ | 1,118 | $ | (1,877 | ) | $ | 1,091 | ||||||||
Comprehensive income | $ | 1,473 | $ | 1,138 | $ | 1,517 | $ | (2,655 | ) | $ | 1,473 |
For the Three Months Ended September 30, 2018 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net premiums written | $ | — | $ | — | $ | 8,110 | $ | — | $ | 8,110 | |||||||||
Net premiums earned | — | — | 7,908 | — | 7,908 | ||||||||||||||
Net investment income | 2 | 3 | 818 | — | 823 | ||||||||||||||
Equity in earnings of subsidiaries | 1,177 | 709 | — | (1,886 | ) | — | |||||||||||||
Net realized gains (losses) including OTTI | (1 | ) | 18 | 2 | — | 19 | |||||||||||||
Losses and loss expenses | — | — | 4,868 | — | 4,868 | ||||||||||||||
Policy benefits | — | — | 127 | — | 127 | ||||||||||||||
Policy acquisition costs and administrative expenses | 23 | (90 | ) | 2,290 | — | 2,223 | |||||||||||||
Interest (income) expense | (75 | ) | 203 | 36 | — | 164 | |||||||||||||
Other (income) expense | (9 | ) | 12 | (148 | ) | — | (145 | ) | |||||||||||
Amortization of purchased intangibles | — | — | 83 | — | 83 | ||||||||||||||
Chubb integration expenses | 3 | 1 | 12 | — | 16 | ||||||||||||||
Income tax expense (benefit) | 5 | (24 | ) | 202 | — | 183 | |||||||||||||
Net income | $ | 1,231 | $ | 628 | $ | 1,258 | $ | (1,886 | ) | $ | 1,231 | ||||||||
Comprehensive income | $ | 592 | $ | 47 | $ | 640 | $ | (687 | ) | $ | 592 |
For the Nine Months Ended September 30, 2019 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | |||||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2020 | For the Nine Months Ended September 30, 2020 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | (in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||||||||||||
Net premiums written | Net premiums written | $ | 0 | $ | 0 | $ | 25,410 | $ | 0 | $ | 25,410 | |||||||||||||||||||||||||||||||||||||
Net premiums earned | — | — | 23,355 | — | 23,355 | Net premiums earned | 0 | 0 | 24,687 | 0 | 24,687 | |||||||||||||||||||||||||||||||||||||
Net investment income | 3 | (13 | ) | 2,578 | — | 2,568 | Net investment income | (2) | 6 | 2,524 | 0 | 2,528 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 3,147 | 2,345 | — | (5,492 | ) | — | Equity in earnings of subsidiaries | 1,064 | 838 | 0 | (1,902) | 0 | ||||||||||||||||||||||||||||||||||||
Net realized gains (losses) including OTTI | 1 | 34 | (510 | ) | — | (475 | ) | |||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) | Net realized gains (losses) | 5 | (271) | (803) | 0 | (1,069) | ||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | — | — | 13,865 | — | 13,865 | Losses and loss expenses | 0 | 0 | 16,897 | 0 | 16,897 | |||||||||||||||||||||||||||||||||||||
Policy benefits | — | — | 515 | — | 515 | Policy benefits | 0 | 0 | 550 | 0 | 550 | |||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | 64 | (25 | ) | 6,792 | — | 6,831 | Policy acquisition costs and administrative expenses | 66 | (101) | 7,089 | 0 | 7,054 | ||||||||||||||||||||||||||||||||||||
Interest (income) expense | (187 | ) | 536 | 69 | — | 418 | Interest (income) expense | (103) | 448 | 45 | 0 | 390 | ||||||||||||||||||||||||||||||||||||
Other (income) expense | (19 | ) | 1 | (308 | ) | — | (326 | ) | Other (income) expense | (27) | 1 | (346) | 0 | (372) | ||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | — | — | 229 | — | 229 | Amortization of purchased intangibles | 0 | 0 | 217 | 0 | 217 | |||||||||||||||||||||||||||||||||||||
Chubb integration expenses | — | 2 | 7 | — | 9 | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 12 | (120 | ) | 734 | — | 626 | Income tax expense (benefit) | 16 | (125) | 404 | 0 | 295 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 3,281 | $ | 1,972 | $ | 3,520 | $ | (5,492 | ) | $ | 3,281 | Net income | $ | 1,115 | $ | 350 | $ | 1,552 | $ | (1,902) | $ | 1,115 | ||||||||||||||||||||||||||
Comprehensive income | $ | 6,250 | $ | 4,476 | $ | 6,486 | $ | (10,962 | ) | $ | 6,250 | Comprehensive income | $ | 2,352 | $ | 1,484 | $ | 2,840 | $ | (4,324) | $ | 2,352 |
For the Nine Months Ended September 30, 2018 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | |||||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2019 | For the Nine Months Ended September 30, 2019 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | (in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||||||||||||
Net premiums written | Net premiums written | $ | 0 | $ | 0 | $ | 24,278 | $ | 0 | $ | 24,278 | |||||||||||||||||||||||||||||||||||||
Net premiums earned | — | — | 22,599 | — | 22,599 | Net premiums earned | 0 | 0 | 23,355 | 0 | 23,355 | |||||||||||||||||||||||||||||||||||||
Net investment income | 5 | 12 | 2,440 | — | 2,457 | Net investment income | 3 | (13) | 2,578 | 0 | 2,568 | |||||||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 3,440 | 2,048 | — | (5,488 | ) | — | Equity in earnings of subsidiaries | 3,147 | 2,345 | 0 | (5,492) | 0 | ||||||||||||||||||||||||||||||||||||
Net realized gains (losses) including OTTI | (1 | ) | 67 | (31 | ) | — | 35 | Net realized gains (losses) including OTTI | 1 | 34 | (510) | 0 | (475) | |||||||||||||||||||||||||||||||||||
Losses and loss expenses | — | — | 13,457 | — | 13,457 | Losses and loss expenses | 0 | 0 | 13,865 | 0 | 13,865 | |||||||||||||||||||||||||||||||||||||
Policy benefits | — | — | 428 | — | 428 | Policy benefits | 0 | 0 | 515 | 0 | 515 | |||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | 64 | (49 | ) | 6,575 | — | 6,590 | Policy acquisition costs and administrative expenses | 64 | (25) | 6,792 | 0 | 6,831 | ||||||||||||||||||||||||||||||||||||
Interest (income) expense | (231 | ) | 616 | 103 | — | 488 | Interest (income) expense | (187) | 536 | 69 | 0 | 418 | ||||||||||||||||||||||||||||||||||||
Other (income) expense | (18 | ) | 28 | (317 | ) | — | (307 | ) | Other (income) expense | (19) | 1 | (308) | 0 | (326) | ||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | — | — | 253 | — | 253 | Amortization of purchased intangibles | 0 | 0 | 229 | 0 | 229 | |||||||||||||||||||||||||||||||||||||
Chubb integration expenses | 7 | 2 | 30 | — | 39 | Chubb integration expenses | 0 | 2 | 7 | 0 | 9 | |||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 15 | (119 | ) | 640 | — | 536 | Income tax expense (benefit) | 12 | (120) | 734 | 0 | 626 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 3,607 | $ | 1,649 | $ | 3,839 | $ | (5,488 | ) | $ | 3,607 | Net income | $ | 3,281 | $ | 1,972 | $ | 3,520 | $ | (5,492) | $ | 3,281 | ||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 1,322 | $ | (199 | ) | $ | 1,606 | $ | (1,407 | ) | $ | 1,322 | ||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 6,250 | $ | 4,476 | $ | 6,486 | $ | (10,962) | $ | 6,250 |
Nine Months Ended September 30, 2020 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Net cash flows from (used for) operating activities | $ | 980 | $ | (363) | $ | 7,714 | $ | (1,090) | $ | 7,241 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||
Purchases of fixed maturities available for sale | 0 | (38) | (20,755) | 0 | (20,793) | ||||||||||||||||||||||||
Purchases of fixed maturities held to maturity | 0 | 0 | (42) | 0 | (42) | ||||||||||||||||||||||||
Purchases of equity securities | 0 | 0 | (3,622) | 0 | (3,622) | ||||||||||||||||||||||||
Sales of fixed maturities available for sale | 0 | 9 | 9,528 | 0 | 9,537 | ||||||||||||||||||||||||
Sales of equity securities | 0 | 0 | 1,526 | 0 | 1,526 | ||||||||||||||||||||||||
Maturities and redemptions of fixed maturities available for sale | 0 | 35 | 8,674 | 0 | 8,709 | ||||||||||||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | 841 | 0 | 841 | ||||||||||||||||||||||||
Net change in short-term investments | 0 | 256 | (690) | 0 | (434) | ||||||||||||||||||||||||
Net derivative instruments settlements | 0 | 66 | (140) | 0 | (74) | ||||||||||||||||||||||||
Private equity contributions | 0 | 0 | (1,056) | 0 | (1,056) | ||||||||||||||||||||||||
Private equity distributions | 0 | 0 | 588 | 0 | 588 | ||||||||||||||||||||||||
Net deposit paid on share acquisition | 0 | 0 | (503) | 0 | (503) | ||||||||||||||||||||||||
Payment for Huatai Group interest | — | — | (1,054) | — | (1,054) | ||||||||||||||||||||||||
Capital contribution | (1,200) | 0 | 0 | 1,200 | 0 | ||||||||||||||||||||||||
Other | (2) | (3) | (347) | 0 | (352) | ||||||||||||||||||||||||
Net cash flows from (used for) investing activities | (1,202) | 325 | (7,052) | 1,200 | (6,729) | ||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||
Dividends paid on Common Shares | (1,035) | 0 | 0 | 0 | (1,035) | ||||||||||||||||||||||||
Common Shares repurchased | (333) | 0 | 0 | 0 | (333) | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 0 | 988 | 0 | 0 | 988 | ||||||||||||||||||||||||
Proceeds from issuance of repurchase agreements | 0 | 0 | 1,402 | 0 | 1,402 | ||||||||||||||||||||||||
Repayment of repurchase agreements | 0 | 0 | (1,402) | 0 | (1,402) | ||||||||||||||||||||||||
Proceeds from share-based compensation plans | 0 | 0 | 77 | 0 | 77 | ||||||||||||||||||||||||
Dividend to parent company | 0 | 0 | (1,090) | 1,090 | 0 | ||||||||||||||||||||||||
Advances (to) from affiliates | 1,621 | (1,511) | (110) | 0 | 0 | ||||||||||||||||||||||||
Capital contribution | 0 | 0 | 1,200 | (1,200) | 0 | ||||||||||||||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs (1) | 0 | 123 | 0 | (123) | 0 | ||||||||||||||||||||||||
Policyholder contract deposits | 0 | 0 | 322 | 0 | 322 | ||||||||||||||||||||||||
Policyholder contract withdrawals | 0 | 0 | (253) | 0 | (253) | ||||||||||||||||||||||||
Net cash flows from (used for) financing activities | 253 | (400) | 146 | (233) | (234) | ||||||||||||||||||||||||
Effect of foreign currency rate changes on cash and restricted cash | (2) | (4) | (45) | 0 | (51) | ||||||||||||||||||||||||
Net increase (decrease) in cash and restricted cash | 29 | (442) | 763 | (123) | 227 | ||||||||||||||||||||||||
Cash and restricted cash – beginning of period (1) | 2 | 442 | 1,202 | 0 | 1,646 | ||||||||||||||||||||||||
Cash and restricted cash – end of period (1) | $ | 31 | $ | 0 | $ | 1,965 | $ | (123) | $ | 1,873 |
Nine Months Ended September 30, 2019 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 421 | $ | 1,118 | $ | 5,234 | $ | (1,860 | ) | $ | 4,913 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (16 | ) | (19,762 | ) | — | (19,778 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (143 | ) | — | (143 | ) | ||||||||||||
Purchases of equity securities | — | — | (466 | ) | — | (466 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | 1 | 10,435 | — | 10,436 | ||||||||||||||
Sales of equity securities | — | — | 577 | — | 577 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 18 | 6,372 | — | 6,390 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 814 | — | 814 | ||||||||||||||
Net change in short-term investments | — | (5 | ) | 207 | — | 202 | |||||||||||||
Net derivative instruments settlements | — | (55 | ) | (592 | ) | — | (647 | ) | |||||||||||
Private equity contributions | — | — | (1,093 | ) | — | (1,093 | ) | ||||||||||||
Private equity distributions | — | — | 973 | — | 973 | ||||||||||||||
Capital contribution | (1,000 | ) | (110 | ) | — | 1,110 | — | ||||||||||||
Other | — | (10 | ) | (816 | ) | — | (826 | ) | |||||||||||
Net cash flows used for investing activities | (1,000 | ) | (177 | ) | (3,494 | ) | 1,110 | (3,561 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (1,014 | ) | — | — | — | (1,014 | ) | ||||||||||||
Common Shares repurchased | — | — | (1,203 | ) | — | (1,203 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 1,286 | — | — | 1,286 | ||||||||||||||
Repayment of long-term debt | — | (500 | ) | (1 | ) | — | (501 | ) | |||||||||||
Proceeds from issuance of repurchase agreements | — | — | 2,394 | — | 2,394 | ||||||||||||||
Repayment of repurchase agreements | — | — | (2,396 | ) | — | (2,396 | ) | ||||||||||||
Proceeds from share-based compensation plans | — | — | 155 | — | 155 | ||||||||||||||
Dividend to parent company | — | — | (1,860 | ) | 1,860 | — | |||||||||||||
Advances (to) from affiliates | 996 | (1,715 | ) | 719 | — | — | |||||||||||||
Capital contribution | — | — | 1,110 | (1,110 | ) | — | |||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs (1) | 593 | (15 | ) | — | (578 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 376 | — | 376 | ||||||||||||||
Policyholder contract withdrawals | — | — | (221 | ) | — | (221 | ) | ||||||||||||
Net cash flows from (used for) financing activities | 575 | (944 | ) | (927 | ) | 172 | (1,124 | ) | |||||||||||
Effect of foreign currency rate changes on cash and restricted cash | 5 | 1 | 15 | — | 21 | ||||||||||||||
Net increase (decrease) in cash and restricted cash | 1 | (2 | ) | 828 | (578 | ) | 249 | ||||||||||||
Cash and restricted cash – beginning of period (1) | 1 | 2 | 1,989 | (652 | ) | 1,340 | |||||||||||||
Cash and restricted cash – end of period (1) | $ | 2 | $ | — | $ | 2,817 | $ | (1,230 | ) | $ | 1,589 |
(1) | Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various Chubb entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual Chubb accounts are translated daily into a single currency and pooled on a notional basis. Individual Chubb entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2020 and December 31, 2019, |
Nine Months Ended September 30, 2019 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Net cash flows from operating activities | $ | 421 | $ | 1,118 | $ | 5,234 | $ | (1,860) | $ | 4,913 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||
Purchases of fixed maturities available for sale | 0 | (16) | (19,762) | 0 | (19,778) | ||||||||||||||||||||||||
Purchases of fixed maturities held to maturity | 0 | 0 | (143) | 0 | (143) | ||||||||||||||||||||||||
Purchases of equity securities | 0 | 0 | (466) | 0 | (466) | ||||||||||||||||||||||||
Sales of fixed maturities available for sale | 0 | 1 | 10,435 | 0 | 10,436 | ||||||||||||||||||||||||
Sales of equity securities | 0 | 0 | 577 | 0 | 577 | ||||||||||||||||||||||||
Maturities and redemptions of fixed maturities available for sale | 0 | 18 | 6,372 | 0 | 6,390 | ||||||||||||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | 0 | 0 | 814 | 0 | 814 | ||||||||||||||||||||||||
Net change in short-term investments | 0 | (5) | 207 | 0 | 202 | ||||||||||||||||||||||||
Net derivative instruments settlements | 0 | (55) | (592) | 0 | (647) | ||||||||||||||||||||||||
Private equity contributions | 0 | 0 | (1,093) | 0 | (1,093) | ||||||||||||||||||||||||
Private equity distributions | 0 | 0 | 973 | 0 | 973 | ||||||||||||||||||||||||
Payment for Huatai Group interest | 0 | 0 | (329) | 0 | (329) | ||||||||||||||||||||||||
Capital contribution | (1,000) | (110) | 0 | 1,110 | 0 | ||||||||||||||||||||||||
Other | 0 | (10) | (487) | 0 | (497) | ||||||||||||||||||||||||
Net cash flows used for investing activities | (1,000) | (177) | (3,494) | 1,110 | (3,561) | ||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||
Dividends paid on Common Shares | (1,014) | 0 | 0 | 0 | (1,014) | ||||||||||||||||||||||||
Common Shares repurchased | 0 | 0 | (1,203) | 0 | (1,203) | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 0 | 1,286 | 0 | 0 | 1,286 | ||||||||||||||||||||||||
Repayment of long-term debt | 0 | (500) | (1) | 0 | (501) | ||||||||||||||||||||||||
Proceeds from issuance of repurchase agreements | 0 | 0 | 2,394 | 0 | 2,394 | ||||||||||||||||||||||||
Repayment of repurchase agreements | 0 | 0 | (2,396) | 0 | (2,396) | ||||||||||||||||||||||||
Proceeds from share-based compensation plans | 0 | 0 | 155 | 0 | 155 | ||||||||||||||||||||||||
Dividend to parent company | 0 | 0 | (1,860) | 1,860 | 0 | ||||||||||||||||||||||||
Advances (to) from affiliates | 996 | (1,715) | 719 | 0 | 0 | ||||||||||||||||||||||||
Capital contribution | 0 | 0 | 1,110 | (1,110) | 0 | ||||||||||||||||||||||||
Net proceeds from (payments to) affiliated notional cash pooling programs (1) | 593 | (15) | 0 | (578) | 0 | ||||||||||||||||||||||||
Policyholder contract deposits | 0 | 0 | 376 | 0 | 376 | ||||||||||||||||||||||||
Policyholder contract withdrawals | 0 | 0 | (221) | 0 | (221) | ||||||||||||||||||||||||
Net cash flows from (used for) financing activities | 575 | (944) | (927) | 172 | (1,124) | ||||||||||||||||||||||||
Effect of foreign currency rate changes on cash and restricted cash | 5 | 1 | 15 | 0 | 21 | ||||||||||||||||||||||||
Net increase (decrease) in cash and restricted cash | 1 | (2) | 828 | (578) | 249 | ||||||||||||||||||||||||
Cash and restricted cash – beginning of period (1) | 1 | 2 | 1,989 | (652) | 1,340 | ||||||||||||||||||||||||
Cash and restricted cash – end of period (1) | $ | 2 | $ | 0 | $ | 2,817 | $ | (1,230) | $ | 1,589 |
Nine Months Ended September 30, 2018 | Chubb Limited (Parent Guarantor) | Chubb INA Holdings Inc. (Subsidiary Issuer) | Other Chubb Limited Subsidiaries | Consolidating Adjustments and Eliminations | Chubb Limited Consolidated | ||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Net cash flows from operating activities | $ | 237 | $ | 4,701 | $ | 3,797 | $ | (4,838 | ) | $ | 3,897 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Purchases of fixed maturities available for sale | — | (30 | ) | (16,758 | ) | — | (16,788 | ) | |||||||||||
Purchases of fixed maturities held to maturity | — | — | (380 | ) | — | (380 | ) | ||||||||||||
Purchases of equity securities | — | — | (148 | ) | — | (148 | ) | ||||||||||||
Sales of fixed maturities available for sale | — | 6 | 9,035 | — | 9,041 | ||||||||||||||
Sales of equity securities | — | — | 247 | — | 247 | ||||||||||||||
Maturities and redemptions of fixed maturities available for sale | — | 15 | 5,467 | — | 5,482 | ||||||||||||||
Maturities and redemptions of fixed maturities held to maturity | — | — | 1,001 | — | 1,001 | ||||||||||||||
Net change in short-term investments | — | 6 | 58 | — | 64 | ||||||||||||||
Net derivative instruments settlements | — | (7 | ) | (39 | ) | — | (46 | ) | |||||||||||
Private equity contributions | — | — | (1,112 | ) | — | (1,112 | ) | ||||||||||||
Private equity distributions | — | — | 743 | — | 743 | ||||||||||||||
Capital contribution | (1,125 | ) | (3,500 | ) | — | 4,625 | — | ||||||||||||
Other | — | (18 | ) | (213 | ) | — | (231 | ) | |||||||||||
Net cash flows used for investing activities | (1,125 | ) | (3,528 | ) | (2,099 | ) | 4,625 | (2,127 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Dividends paid on Common Shares | (1,001 | ) | — | — | — | (1,001 | ) | ||||||||||||
Common Shares repurchased | — | — | (732 | ) | — | (732 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 2,171 | — | — | 2,171 | ||||||||||||||
Repayment of long-term debt | — | (2,000 | ) | (1 | ) | — | (2,001 | ) | |||||||||||
Proceeds from issuance of repurchase agreements | — | — | 1,572 | — | 1,572 | ||||||||||||||
Repayment of repurchase agreements | — | — | (1,566 | ) | — | (1,566 | ) | ||||||||||||
Proceeds from share-based compensation plans | — | — | 86 | — | 86 | ||||||||||||||
Dividend to parent company | — | — | (4,838 | ) | 4,838 | — | |||||||||||||
Advances (to) from affiliates | 1,722 | (1,310 | ) | (412 | ) | — | — | ||||||||||||
Capital contribution | — | — | 4,625 | (4,625 | ) | — | |||||||||||||
Net proceeds from affiliated notional cash pooling programs (1) | 165 | (34 | ) | — | (131 | ) | — | ||||||||||||
Policyholder contract deposits | — | — | 269 | — | 269 | ||||||||||||||
Policyholder contract withdrawals | — | — | (222 | ) | — | (222 | ) | ||||||||||||
Net cash flows from (used for) financing activities | 886 | (1,173 | ) | (1,219 | ) | 82 | (1,424 | ) | |||||||||||
Effect of foreign currency rate changes on cash and restricted cash | (1 | ) | — | (39 | ) | — | (40 | ) | |||||||||||
Net increase (decrease) in cash and restricted cash | (3 | ) | — | 440 | (131 | ) | 306 | ||||||||||||
Cash and restricted cash – beginning of period (1) | 3 | 1 | 962 | (115 | ) | 851 | |||||||||||||
Cash and restricted cash – end of period (1) | $ | — | $ | 1 | $ | 1,402 | $ | (246 | ) | $ | 1,157 |
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
MD&A Index | Page | ||||
Forward-Looking Statements |
Overview |
Financial Highlights for the Three Months Ended September 30, |
Consolidated Operating Results – Three and Nine Months Ended September 30, |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | (in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||||||||||||||||
Net premiums written (1) | $ | 8,622 | $ | 8,110 | 6.3 | % | $ | 24,278 | $ | 23,229 | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned (1) | 8,327 | 7,908 | 5.3 | % | 23,355 | 22,599 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | Net premiums written | $ | 9,078 | $ | 8,622 | 5.3 | % | $ | 25,410 | $ | 24,278 | 4.7 | % | |||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | Net premiums earned | 8,765 | 8,327 | 5.3 | % | 24,687 | 23,355 | 5.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 873 | 823 | 6.0 | % | 2,568 | 2,457 | 4.5 | % | Net investment income | 840 | 873 | (3.8) | % | 2,528 | 2,568 | (1.6) | % | |||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) | (155 | ) | 19 | NM | (475 | ) | 35 | NM | Net realized gains (losses) | (141) | (155) | (8.8) | % | (1,069) | (475) | 125.1 | % | |||||||||||||||||||||||||||||||||||||||
Total revenues | 9,045 | 8,750 | 3.4 | % | 25,448 | 25,091 | 1.4 | % | Total revenues | 9,464 | 9,045 | 4.6 | % | 26,146 | 25,448 | 2.7 | % | |||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 5,052 | 4,868 | 3.8 | % | 13,865 | 13,457 | 3.0 | % | Losses and loss expenses | 5,835 | 5,052 | 15.5 | % | 16,897 | 13,865 | 21.9 | % | |||||||||||||||||||||||||||||||||||||||
Policy benefits | 158 | 127 | 23.7 | % | 515 | 428 | 20.2 | % | Policy benefits | 198 | 158 | 25.7 | % | 550 | 515 | 6.9 | % | |||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 1,603 | 1,504 | 6.7 | % | 4,611 | 4,432 | 4.1 | % | Policy acquisition costs | 1,645 | 1,603 | 2.6 | % | 4,853 | 4,611 | 5.2 | % | |||||||||||||||||||||||||||||||||||||||
Administrative expenses | 752 | 719 | 4.7 | % | 2,220 | 2,158 | 2.9 | % | Administrative expenses | 733 | 752 | (2.6) | % | 2,201 | 2,220 | (0.9) | % | |||||||||||||||||||||||||||||||||||||||
Interest expense | 138 | 164 | (16.1 | )% | 418 | 488 | (14.5 | )% | Interest expense | 130 | 138 | (5.5) | % | 390 | 418 | (6.5) | % | |||||||||||||||||||||||||||||||||||||||
Other (income) expense | (57 | ) | (145 | ) | (61.0 | )% | (326 | ) | (307 | ) | 6.0 | % | Other (income) expense | (485) | (57) | NM | (372) | (326) | 14.2 | % | ||||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 76 | 83 | (9.3 | )% | 229 | 253 | (9.7 | )% | Amortization of purchased intangibles | 72 | 76 | (4.4) | % | 217 | 229 | (5.0) | % | |||||||||||||||||||||||||||||||||||||||
Chubb integration expenses | 2 | 16 | (89.9 | )% | 9 | 39 | (76.9 | )% | Chubb integration expenses | — | 2 | NM | — | 9 | NM | |||||||||||||||||||||||||||||||||||||||||
Total expenses | 7,724 | 7,336 | 5.3 | % | 21,541 | 20,948 | 2.8 | % | Total expenses | 8,128 | 7,724 | 5.2 | % | 24,736 | 21,541 | 14.8 | % | |||||||||||||||||||||||||||||||||||||||
Income before income tax | 1,321 | 1,414 | (6.6 | )% | 3,907 | 4,143 | (5.7 | )% | Income before income tax | 1,336 | 1,321 | 1.2 | % | 1,410 | 3,907 | (63.9) | % | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 230 | 183 | 25.8 | % | 626 | 536 | 16.8 | % | Income tax expense | 142 | 230 | (38.0) | % | 295 | 626 | (52.8) | % | |||||||||||||||||||||||||||||||||||||||
Net income | $ | 1,091 | $ | 1,231 | (11.4 | )% | $ | 3,281 | $ | 3,607 | (9.1 | )% | Net income | $ | 1,194 | $ | 1,091 | 9.4 | % | $ | 1,115 | $ | 3,281 | (66.0) | % | |||||||||||||||||||||||||||||||
Net premiums written - constant dollars (1) | Net premiums written - constant dollars (1) | 6.0 | % | 5.6 | % |
(1) On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. |
54 Table of Contents |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | % Change Q-19 vs. Q-18 | C$ (1) 2018 | C$ (1) % Change Q-19 vs. Q-18 | 2019 | 2018 | % Change YTD-19 vs. YTD-18 | C$ (1) 2018 | C$ (1) % Change YTD-19 vs. YTD-18 | |||||||||||||||||
Commercial casualty | $ | 1,508 | $ | 1,408 | 7.1 | % | $ | 1,397 | 7.9 | % | $ | 4,180 | $ | 3,911 | 6.9 | % | $ | 3,870 | 8.0 | % | |||||||
Workers' compensation | 462 | 439 | 5.3 | % | 439 | 5.3 | % | 1,537 | 1,515 | 1.5 | % | 1,515 | 1.5 | % | |||||||||||||
Professional liability | 981 | 921 | 6.5 | % | 910 | 7.8 | % | 2,676 | 2,583 | 3.6 | % | 2,544 | 5.2 | % | |||||||||||||
Surety | 168 | 159 | 5.9 | % | 157 | 7.2 | % | 476 | 481 | (0.9 | )% | 470 | 1.4 | % | |||||||||||||
Commercial multiple peril (2) | 252 | 236 | 7.0 | % | 236 | 7.0 | % | 725 | 679 | 6.7 | % | 679 | 6.7 | % | |||||||||||||
Property and other short-tail lines | 1,067 | 911 | 17.1 | % | 893 | 19.4 | % | 3,410 | 3,070 | 11.1 | % | 2,997 | 13.8 | % | |||||||||||||
Total Commercial P&C (3) | 4,438 | 4,074 | 9.0 | % | 4,032 | 10.1 | % | 13,004 | 12,239 | 6.3 | % | 12,075 | 7.7 | % | |||||||||||||
Agriculture | 938 | 884 | 6.2 | % | 884 | 6.2 | % | 1,534 | 1,380 | 11.2 | % | 1,380 | 11.2 | % | |||||||||||||
Personal automobile | 444 | 419 | 5.9 | % | 418 | 5.9 | % | 1,338 | 1,273 | 5.2 | % | 1,259 | 6.2 | % | |||||||||||||
Personal homeowners | 935 | 895 | 4.5 | % | 895 | 4.5 | % | 2,646 | 2,615 | 1.2 | % | 2,607 | 1.5 | % | |||||||||||||
Personal other | 372 | 362 | 2.5 | % | 351 | 5.9 | % | 1,123 | 1,138 | (1.3 | )% | 1,095 | 2.6 | % | |||||||||||||
Total Personal lines | 1,751 | 1,676 | 4.4 | % | 1,664 | 5.2 | % | 5,107 | 5,026 | 1.6 | % | 4,961 | 2.9 | % | |||||||||||||
Total Property and Casualty lines | 7,127 | 6,634 | 7.4 | % | 6,580 | 8.3 | % | 19,645 | 18,645 | 5.4 | % | 18,416 | 6.7 | % | |||||||||||||
Global A&H lines (4) | 1,052 | 1,048 | 0.4 | % | 1,029 | 2.3 | % | 3,255 | 3,236 | 0.6 | % | 3,128 | 4.1 | % | |||||||||||||
Reinsurance lines | 141 | 164 | (14.0 | )% | 162 | (12.8 | )% | 540 | 554 | (2.5 | )% | 546 | (1.1 | )% | |||||||||||||
Life | 302 | 264 | 14.4 | % | 262 | 15.5 | % | 838 | 794 | 5.4 | % | 779 | 7.6 | % | |||||||||||||
Total consolidated | $ | 8,622 | $ | 8,110 | 6.3 | % | $ | 8,033 | 7.3 | % | $ | 24,278 | $ | 23,229 | 4.5 | % | $ | 22,869 | 6.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2020 | 2019 | % Change Q-20 vs. Q-19 | C$ (1) 2019 | C$ (1) % Change Q-20 vs. Q-19 | 2020 | 2019 | % Change YTD-20 vs. YTD-19 | C$ (1) 2019 | C$ (1) % Change YTD-20 vs. YTD-19 | |||||||||||||||||||||||||
Commercial casualty | $ | 1,722 | $ | 1,508 | 14.2 | % | $ | 1,506 | 14.3 | % | $ | 4,541 | $ | 4,180 | 8.6 | % | $ | 4,165 | 9.0 | % | |||||||||||||||
Workers' compensation | 432 | 462 | (6.4) | % | 462 | (6.4) | % | 1,485 | 1,537 | (3.4) | % | 1,537 | (3.4) | % | |||||||||||||||||||||
Professional liability | 1,103 | 981 | 12.5 | % | 981 | 12.5 | % | 3,012 | 2,676 | 12.6 | % | 2,659 | 13.3 | % | |||||||||||||||||||||
Surety | 127 | 168 | (24.0) | % | 162 | (21.4) | % | 394 | 476 | (17.2) | % | 462 | (14.7) | % | |||||||||||||||||||||
Commercial multiple peril (2) | 270 | 252 | 7.0 | % | 252 | 7.0 | % | 778 | 725 | 7.3 | % | 725 | 7.3 | % | |||||||||||||||||||||
Property and other short-tail lines | 1,270 | 1,067 | 19.0 | % | 1,055 | 20.3 | % | 3,948 | 3,410 | 15.8 | % | 3,359 | 17.5 | % | |||||||||||||||||||||
Total Commercial P&C | 4,924 | 4,438 | 11.0 | % | 4,418 | 11.5 | % | 14,158 | 13,004 | 8.9 | % | 12,907 | 9.7 | % | |||||||||||||||||||||
Agriculture | 986 | 938 | 5.0 | % | 938 | 5.0 | % | 1,604 | 1,534 | 4.5 | % | 1,534 | 4.5 | % | |||||||||||||||||||||
Personal automobile | 380 | 444 | (14.5) | % | 421 | (9.9) | % | 1,174 | 1,338 | (12.2) | % | 1,289 | (8.9) | % | |||||||||||||||||||||
Personal homeowners | 955 | 935 | 2.1 | % | 931 | 2.6 | % | 2,708 | 2,646 | 2.3 | % | 2,637 | 2.7 | % | |||||||||||||||||||||
Personal other | 417 | 372 | 12.2 | % | 372 | 11.8 | % | 1,237 | 1,123 | 10.2 | % | 1,109 | 11.5 | % | |||||||||||||||||||||
Total Personal lines | 1,752 | 1,751 | 0.1 | % | 1,724 | 1.5 | % | 5,119 | 5,107 | 0.2 | % | 5,035 | 1.6 | % | |||||||||||||||||||||
Total Property and Casualty lines | 7,662 | 7,127 | 7.5 | % | 7,080 | 8.2 | % | 20,881 | 19,645 | 6.3 | % | 19,476 | 7.2 | % | |||||||||||||||||||||
Global A&H lines (3) | 913 | 1,052 | (13.2) | % | 1,043 | (12.4) | % | 2,931 | 3,255 | (10.0) | % | 3,206 | (8.6) | % | |||||||||||||||||||||
Reinsurance lines | 181 | 141 | 28.4 | % | 143 | 27.2 | % | 606 | 540 | 12.2 | % | 542 | 11.9 | % | |||||||||||||||||||||
Life | 322 | 302 | 6.6 | % | 300 | 7.5 | % | 992 | 838 | 18.4 | % | 830 | 19.6 | % | |||||||||||||||||||||
Total consolidated | $ | 9,078 | $ | 8,622 | 5.3 | % | $ | 8,566 | 6.0 | % | $ | 25,410 | $ | 24,278 | 4.7 | % | $ | 24,054 | 5.6 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Loss and loss expense ratio | 69.2 | % | 63.1 | % | 71.5 | % | 61.5 | % | |||||||||||||||
Policy acquisition cost ratio | 18.0 | % | 18.4 | % | 18.8 | % | 19.2 | % | |||||||||||||||
Administrative expense ratio | 8.0 | % | 8.7 | % | 8.6 | % | 9.2 | % | |||||||||||||||
P&C Combined ratio | 95.2 | % | 90.2 | % | 98.9 | % | 89.9 | % | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Loss and loss expense ratio | 63.1 | % | 63.6 | % | 61.5 | % | 61.4 | % | |||
Policy acquisition cost ratio | 18.4 | % | 18.6 | % | 19.2 | % | 19.2 | % | |||
Administrative expense ratio | 8.7 | % | 8.7 | % | 9.2 | % | 9.2 | % | |||
P&C Combined ratio | 90.2 | % | 90.9 | % | 89.9 | % | 89.8 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Catastrophe losses (1) | $ | 234 | $ | 454 | $ | 759 | $ | 1,045 | |||||||
Favorable prior period development | $ | 167 | $ | 243 | $ | 559 | $ | 643 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Catastrophe losses (excludes reinstatement premiums) (1) | $ | 932 | $ | 234 | $ | 2,950 | $ | 759 | |||||||||||||||
Favorable prior period development | $ | 146 | $ | 167 | $ | 189 | $ | 559 |
Catastrophe Loss Charge by Event | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | North America Commercial P&C Insurance | North America Personal P&C Insurance | North America Agricultural Insurance | Overseas General Insurance | Global Reinsurance | Total excluding RIPs | RIPs collected | Total including RIPs | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Hurricanes/Tropical storms | $ | 318 | $ | 117 | $ | 1 | $ | 51 | $ | 47 | $ | 534 | $ | 4 | $ | 530 | |||||||||||||||||||||||||||||||||||||
U.S. wildfires | 30 | 80 | — | — | — | 110 | — | 110 | |||||||||||||||||||||||||||||||||||||||||||||
Midwest derecho | 53 | 34 | 8 | — | 1 | 96 | — | 96 | |||||||||||||||||||||||||||||||||||||||||||||
International weather-related events | 1 | 3 | — | 28 | — | 32 | — | 32 | |||||||||||||||||||||||||||||||||||||||||||||
Other events | 14 | 23 | 1 | 2 | — | 40 | — | 40 | |||||||||||||||||||||||||||||||||||||||||||||
IBNR | 35 | 32 | — | — | — | 67 | — | 67 | |||||||||||||||||||||||||||||||||||||||||||||
Q1 and Q2 Development | (4) | 16 | — | 14 | 27 | 53 | 3 | 50 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 447 | $ | 305 | $ | 10 | $ | 95 | $ | 75 | $ | 932 | |||||||||||||||||||||||||||||||||||||||||
RIPs collected | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||
Total before income tax | $ | 447 | $ | 305 | $ | 10 | $ | 95 | $ | 68 | $ | 925 | |||||||||||||||||||||||||||||||||||||||||
Income tax benefit | 128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total after income tax | $ | 797 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Loss and loss expense ratio | 69.2 | % | 63.1 | % | 71.5 | % | 61.5 | % | |||||||||||||||
Catastrophe losses | (11.3) | % | (3.0) | % | (12.9) | % | (3.5) | % | |||||||||||||||
Prior period development | 1.8 | % | 2.3 | % | 0.8 | % | 2.6 | % | |||||||||||||||
CAY loss ratio excluding catastrophe losses | 59.7 | % | 62.4 | % | 59.4 | % | 60.6 | % |
Three Months Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Loss and loss expense ratio | 63.1 | % | 63.6 | % | 61.5 | % | 61.4 | % | |||
Catastrophe losses | (3.0 | )% | (6.1 | )% | (3.5 | )% | (5.0 | )% | |||
Prior period development | 2.3 | % | 3.6 | % | 2.6 | % | 3.3 | % | |||
CAY loss ratio excluding catastrophe losses | 62.4 | % | 61.1 | % | 60.6 | % | 59.7 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
CAY Loss and loss expense ratio ex CATs | 59.7 | % | 62.4 | % | 59.4 | % | 60.6 | % | |||||||||||||||
CAY Policy acquisition cost ratio ex CATs | 18.0 | % | 18.4 | % | 18.8 | % | 19.2 | % | |||||||||||||||
CAY Administrative expense ratio ex CATs | 8.0 | % | 8.7 | % | 8.6 | % | 9.2 | % | |||||||||||||||
CAY P&C combined ratio ex CATs | 85.7 | % | 89.5 | % | 86.8 | % | 89.0 | % | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
CAY Loss and loss expense ratio ex CATs | 62.4 | % | 61.1 | % | 60.6 | % | 59.7 | % | |||
CAY Policy acquisition cost ratio ex CATs | 18.4 | % | 18.4 | % | 19.2 | % | 19.1 | % | |||
CAY Administrative expense ratio ex CATs | 8.7 | % | 8.7 | % | 9.2 | % | 9.2 | % | |||
CAY P&C combined ratio ex CATs | 89.5 | % | 88.2 | % | 89.0 | % | 88.0 | % |
Segment Operating Results – Three and Nine Months Ended September 30, |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | (in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 3,452 | $ | 3,199 | 7.9 | % | $ | 9,937 | $ | 9,342 | 6.4 | % | Net premiums written | $ | 3,778 | $ | 3,452 | 9.4 | % | $ | 10,750 | $ | 9,937 | 8.2 | % | |||||||||||||||||||||||||||||||||||||||||
Net premiums earned | 3,185 | 3,019 | 5.5 | % | 9,660 | 9,325 | 3.6 | % | Net premiums earned | 3,456 | 3,185 | 8.5 | % | 10,427 | 9,660 | 7.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 2,051 | 1,881 | 9.0 | % | 6,238 | 5,873 | 6.2 | % | Losses and loss expenses | 2,444 | 2,051 | 19.2 | % | 8,123 | 6,238 | 30.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 459 | 458 | 0.1 | % | 1,377 | 1,378 | (0.1 | )% | Policy acquisition costs | 489 | 459 | 6.6 | % | 1,452 | 1,377 | 5.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 256 | 251 | 2.2 | % | 755 | 735 | 2.7 | % | Administrative expenses | 243 | 256 | (5.2) | % | 751 | 755 | (0.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 419 | 429 | (2.3 | )% | 1,290 | 1,339 | (3.6 | )% | Underwriting income | 280 | 419 | (33.3) | % | 101 | 1,290 | (92.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 532 | 503 | 5.7 | % | 1,563 | 1,516 | 3.1 | % | Net investment income | 510 | 538 | (4.9) | % | 1,544 | 1,584 | (2.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (1 | ) | (1 | ) | — | (4 | ) | (20 | ) | (78.5 | )% | Other (income) expense | 7 | 5 | 55.7 | % | 19 | 17 | 12.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Segment income | $ | 952 | $ | 933 | 1.9 | % | $ | 2,857 | $ | 2,875 | (0.6 | )% | Segment income | $ | 783 | $ | 952 | (17.7) | % | $ | 1,626 | $ | 2,857 | (43.1) | % | |||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 64.4 | % | 62.3 | % | 2.1 | pts | 64.6 | % | 63.0 | % | 1.6 | pts | Loss and loss expense ratio | 70.7 | % | 64.4 | % | 6.3 | pts | 77.9 | % | 64.6 | % | 13.3 | pts | |||||||||||||||||||||||||||||||||||||||||
Policy acquisition cost ratio | 14.4 | % | 15.2 | % | (0.8 | ) | pts | 14.2 | % | 14.7 | % | (0.5 | ) | pts | Policy acquisition cost ratio | 14.2 | % | 14.4 | % | (0.2) | pts | 13.9 | % | 14.2 | % | (0.3) | pts | |||||||||||||||||||||||||||||||||||||||
Administrative expense ratio | 8.1 | % | 8.3 | % | (0.2 | ) | pts | 7.8 | % | 7.9 | % | (0.1 | ) | pts | Administrative expense ratio | 7.0 | % | 8.1 | % | (1.1) | pts | 7.2 | % | 7.8 | % | (0.6) | pts | |||||||||||||||||||||||||||||||||||||||
Combined ratio | 86.9 | % | 85.8 | % | 1.1 | pts | 86.6 | % | 85.6 | % | 1.0 | pt | Combined ratio | 91.9 | % | 86.9 | % | 5.0 | pts | 99.0 | % | 86.6 | % | 12.4 | pts |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net premiums written and earned in the same period | $ | 39 | $ | (8 | ) | $ | 386 | $ | 334 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | (in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Catastrophe losses | $ | 88 | $ | 196 | $ | 319 | $ | 347 | ||||||||||||||||||||||||||||||
Catastrophe losses (excludes reinstatement premiums) | Catastrophe losses (excludes reinstatement premiums) | $ | 447 | $ | 88 | $ | 1,835 | $ | 319 | |||||||||||||||||||||||||||||
Favorable prior period development | $ | 109 | $ | 216 | $ | 425 | $ | 472 | Favorable prior period development | $ | 200 | $ | 109 | $ | 451 | $ | 425 |
•2020: COVID-19 pandemic of $973 million, civil unrest in the U.S., and natural catastrophes including Nashville, Tennessee tornado, Hurricane Laura, Hurricane Sally, Tropical Storm Isaias, Midwest derecho, U.S. wildfires, and other severe weather-related events in the U.S. •2019: Winter-related storms and other severe weather-related events in the U.S., Hurricane Dorian and Tropical Storm Imelda |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Loss and loss expense ratio | 70.7 | % | 64.4 | % | 77.9 | % | 64.6 | % | |||||||||||||||
Catastrophe losses | (12.9) | % | (2.8) | % | (17.6) | % | (3.3) | % | |||||||||||||||
Prior period development | 6.0 | % | 3.9 | % | 4.4 | % | 4.5 | % | |||||||||||||||
CAY loss ratio excluding catastrophe losses | 63.8 | % | 65.5 | % | 64.7 | % | 65.8 | % |
Three Months Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Loss and loss expense ratio | 64.4 | % | 62.3 | % | 64.6 | % | 63.0 | % | |||
Catastrophe losses | (2.8 | )% | (6.5 | )% | (3.3 | )% | (3.7 | )% | |||
Prior period development | 3.9 | % | 7.7 | % | 4.5 | % | 5.2 | % | |||
CAY loss ratio excluding catastrophe losses | 65.5 | % | 63.5 | % | 65.8 | % | 64.5 | % |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | (in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 1,251 | $ | 1,218 | 2.7 | % | $ | 3,616 | $ | 3,601 | 0.4 | % | Net premiums written | $ | 1,285 | $ | 1,251 | 2.8 | % | $ | 3,719 | $ | 3,616 | 2.9 | % | |||||||||||||||||||||||||||||||||||||||||
Net premiums earned | 1,187 | 1,167 | 1.7 | % | 3,509 | 3,463 | 1.3 | % | Net premiums earned | 1,231 | 1,187 | 3.8 | % | 3,623 | 3,509 | 3.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 674 | 860 | (21.6 | )% | 2,178 | 2,474 | (11.9 | )% | Losses and loss expenses | 961 | 674 | 42.5 | % | 2,406 | 2,178 | 10.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 240 | 236 | 1.6 | % | 708 | 701 | 1.0 | % | Policy acquisition costs | 248 | 240 | 3.5 | % | 724 | 708 | 2.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 72 | 69 | 3.8 | % | 211 | 202 | 4.5 | % | Administrative expenses | 65 | 72 | (8.8) | % | 199 | 211 | (5.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 201 | 2 | NM | 412 | 86 | 378.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | Underwriting income (loss) | (43) | 201 | NM | 294 | 412 | (28.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 66 | 59 | 13.1 | % | 194 | 177 | 9.7 | % | Net investment income | 64 | 66 | (2.1) | % | 195 | 194 | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | 1 | — | NM | 2 | 1 | 51.5 | % | Other (income) expense | 1 | 1 | — | 4 | 2 | 118.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 3 | 4 | (11.1 | )% | 9 | 10 | (11.1 | )% | Amortization of purchased intangibles | 2 | 3 | (5.0) | % | 8 | 9 | (5.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income | $ | 263 | $ | 57 | 362.9 | % | $ | 595 | $ | 252 | 136.4 | % | Segment income | $ | 18 | $ | 263 | (93.4) | % | $ | 477 | $ | 595 | (19.9) | % | |||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 56.9 | % | 73.7 | % | (16.8 | ) | pts | 62.1 | % | 71.5 | % | (9.4 | ) | pts | Loss and loss expense ratio | 78.1 | % | 56.9 | % | 21.2 | pts | 66.4 | % | 62.1 | % | 4.3 | pts | |||||||||||||||||||||||||||||||||||||||
Policy acquisition cost ratio | 20.2 | % | 20.2 | % | — | 20.2 | % | 20.2 | % | — | Policy acquisition cost ratio | 20.1 | % | 20.2 | % | (0.1) | pts | 20.0 | % | 20.2 | % | (0.2) | pts | |||||||||||||||||||||||||||||||||||||||||||
Administrative expense ratio | 6.0 | % | 5.9 | % | 0.1 | pts | 6.0 | % | 5.8 | % | 0.2 | pts | Administrative expense ratio | 5.3 | % | 6.0 | % | (0.7) | pts | 5.5 | % | 6.0 | % | (0.5) | pts | |||||||||||||||||||||||||||||||||||||||||
Combined ratio | 83.1 | % | 99.8 | % | (16.7 | ) | pts | 88.3 | % | 97.5 | % | (9.2 | ) | pts | Combined ratio | 103.5 | % | 83.1 | % | 20.4 | pts | 91.9 | % | 88.3 | % | 3.6 | pts |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Catastrophe losses | $ | 83 | $ | 136 | $ | 329 | $ | 521 | |||||||
Favorable (unfavorable) prior period development | $ | 62 | $ | (58 | ) | $ | 88 | $ | (59 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Catastrophe losses (excludes reinstatement premiums) | $ | 305 | $ | 83 | $ | 435 | $ | 329 | |||||||||||||||
Favorable (unfavorable) prior period development | $ | (48) | $ | 62 | $ | (48) | $ | 88 |
•2020: U.S. wildfires, Tropical Storm Isaias, Midwest derecho, Hurricane Sally, Hurricane Laura, and other severe weather-related events in the U.S. •2019: Winter-related storms and other severe weather-related events in the U.S. and Hurricane Dorian |
Three Months Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Loss and loss expense ratio | 56.9 | % | 73.7 | % | 62.1 | % | 71.5 | % | |||
Catastrophe losses | (7.0 | )% | (11.6 | )% | (9.4 | )% | (15.1 | )% | |||
Prior period development | 5.2 | % | (5.0 | )% | 2.5 | % | (1.7 | )% | |||
CAY loss ratio excluding catastrophe losses | 55.1 | % | 57.1 | % | 55.2 | % | 54.7 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Loss and loss expense ratio | 78.1 | % | 56.9 | % | 66.4 | % | 62.1 | % | |||||||||||||||
Catastrophe losses | (24.7) | % | (7.0) | % | (12.0) | % | (9.4) | % | |||||||||||||||
Prior period development | (4.2) | % | 5.2 | % | (1.4) | % | 2.5 | % | |||||||||||||||
CAY loss ratio excluding catastrophe losses | 49.2 | % | 55.1 | % | 53.0 | % | 55.2 | % |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | (in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 938 | $ | 884 | 6.2 | % | $ | 1,534 | $ | 1,380 | 11.2 | % | Net premiums written | $ | 986 | $ | 938 | 5.0 | % | $ | 1,604 | $ | 1,534 | 4.5 | % | |||||||||||||||||||||||||||||||||||||||||
Net premiums earned | 941 | 857 | 9.8 | % | 1,374 | 1,251 | 9.8 | % | Net premiums earned | 971 | 941 | 3.2 | % | 1,441 | 1,374 | 4.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted losses and loss expenses (1) | 880 | 727 | 21.0 | % | 1,163 | 953 | 22.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | Losses and loss expenses | 845 | 880 | (3.9) | % | 1,223 | 1,163 | 5.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 56 | 49 | 14.7 | % | 90 | 74 | 22.3 | % | Policy acquisition costs | 56 | 56 | — | 96 | 90 | 6.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 4 | 2 | 214.0 | % | 9 | — | NM | Administrative expenses | 5 | 4 | 6.9 | % | 12 | 9 | 33.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 1 | 79 | (98.8 | )% | 112 | 224 | (50.3 | )% | Underwriting income | 65 | 1 | NM | 110 | 112 | (1.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 8 | 7 | 19.8 | % | 22 | 20 | 7.3 | % | Net investment income | 7 | 8 | (15.2) | % | 23 | 22 | 5.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | — | — | — | 1 | 1 | — | Other (income) expense | — | — | — | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 7 | 7 | — | 21 | 21 | — | Amortization of purchased intangibles | 7 | 7 | — | 20 | 21 | (2.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment income | $ | 2 | $ | 79 | (97.6 | )% | $ | 112 | $ | 222 | (49.7 | )% | Segment income | $ | 65 | $ | 2 | NM | $ | 112 | $ | 112 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 93.5 | % | 84.9 | % | 8.6 | pts | 84.7 | % | 76.2 | % | 8.5 | pts | Loss and loss expense ratio | 87.1 | % | 93.5 | % | (6.4) | pts | 84.9 | % | 84.7 | % | 0.2 | pts | |||||||||||||||||||||||||||||||||||||||||
Policy acquisition cost ratio | 6.0 | % | 5.7 | % | 0.3 | pts | 6.6 | % | 5.9 | % | 0.7 | pts | Policy acquisition cost ratio | 5.8 | % | 6.0 | % | (0.2) | pts | 6.6 | % | 6.6 | % | — | pts | |||||||||||||||||||||||||||||||||||||||||
Administrative expense ratio | 0.4 | % | 0.1 | % | 0.3 | pts | 0.6 | % | — | 0.6 | pts | Administrative expense ratio | 0.4 | % | 0.4 | % | — | pts | 0.8 | % | 0.6 | % | 0.2 | pts | ||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 99.9 | % | 90.7 | % | 9.2 | pts | 91.9 | % | 82.1 | % | 9.8 | pts | Combined ratio | 93.3 | % | 99.9 | % | (6.6) | pts | 92.3 | % | 91.9 | % | 0.4 | pts |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | (in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Catastrophe losses | $ | 3 | $ | 8 | $ | 7 | $ | 11 | ||||||||||||||||||||||||||||||
Catastrophe losses (excludes reinstatement premiums) | Catastrophe losses (excludes reinstatement premiums) | $ | 10 | $ | 3 | $ | 24 | $ | 7 | |||||||||||||||||||||||||||||
Favorable (unfavorable) prior period development | $ | (18 | ) | $ | 1 | $ | 43 | $ | 77 | Favorable (unfavorable) prior period development | $ | (18) | $ | (18) | $ | (4) | $ | 43 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
Loss and loss expense ratio | 93.5 | % | 84.9 | % | 84.7 | % | 76.2 | % | Loss and loss expense ratio | 87.1 | % | 93.5 | % | 84.9 | % | 84.7 | % | |||||||||||||||||
Catastrophe losses | (0.3 | )% | (0.9 | )% | (0.5 | )% | (0.9 | )% | Catastrophe losses | (1.0) | % | (0.3) | % | (1.7) | % | (0.5) | % | |||||||||||||||||
Prior period development | (1.9 | )% | 0.1 | % | 3.2 | % | 6.5 | % | Prior period development | (1.9) | % | (1.9) | % | (0.2) | % | 3.2 | % | |||||||||||||||||
CAY loss ratio excluding catastrophe losses | 91.3 | % | 84.1 | % | 87.4 | % | 81.8 | % | CAY loss ratio excluding catastrophe losses | 84.2 | % | 91.3 | % | 83.0 | % | 87.4 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | ||||||||||||||||||||||||||||||||
Net premiums written | $ | 2,238 | $ | 2,228 | 0.5 | % | $ | 6,857 | $ | 6,881 | (0.3) | % | ||||||||||||||||||||||||||
Net premiums earned | 2,337 | 2,256 | 3.6 | % | 6,838 | 6,595 | 3.7 | % | ||||||||||||||||||||||||||||||
Losses and loss expenses | 1,192 | 1,154 | 3.4 | % | 3,935 | 3,385 | 16.3 | % | ||||||||||||||||||||||||||||||
Policy acquisition costs | 637 | 630 | 1.2 | % | 1,903 | 1,855 | 2.6 | % | ||||||||||||||||||||||||||||||
Administrative expenses | 260 | 257 | 1.2 | % | 759 | 771 | (1.6) | % | ||||||||||||||||||||||||||||||
Underwriting income | 248 | 215 | 15.2 | % | 241 | 584 | (58.8) | % | ||||||||||||||||||||||||||||||
Net investment income | 130 | 147 | (11.5) | % | 396 | 444 | (10.7) | % | ||||||||||||||||||||||||||||||
Other (income) expense | 1 | 2 | (70.4) | % | 10 | 11 | (10.5) | % | ||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 10 | 11 | — | 33 | 34 | (1.9) | % | |||||||||||||||||||||||||||||||
Segment income | $ | 367 | $ | 349 | 5.1 | % | $ | 594 | $ | 983 | (39.6) | % | ||||||||||||||||||||||||||
Net premiums written - constant dollars (1) | 2.8 | % | 2.7 | % | ||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 51.0 | % | 51.1 | % | (0.1) | pts | 57.6 | % | 51.3 | % | 6.3 | pts | ||||||||||||||||||||||||||
Policy acquisition cost ratio | 27.3 | % | 28.0 | % | (0.7) | pts | 27.8 | % | 28.1 | % | (0.3) | pts | ||||||||||||||||||||||||||
Administrative expense ratio | 11.1 | % | 11.4 | % | (0.3) | pts | 11.1 | % | 11.7 | % | (0.6) | pts | ||||||||||||||||||||||||||
Combined ratio | 89.4 | % | 90.5 | % | (1.1) | pts | 96.5 | % | 91.1 | % | 5.4 | pts |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | |||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | ||||||||||||||||||
Net premiums written | $ | 2,228 | $ | 2,081 | 7.1 | % | $ | 6,881 | $ | 6,664 | 3.3 | % | ||||||||||||
Net premiums written - constant dollars (1) | 10.7 | % | 8.3 | % | ||||||||||||||||||||
Net premiums earned | 2,256 | 2,157 | 4.6 | % | 6,595 | 6,425 | 2.6 | % | ||||||||||||||||
Losses and loss expenses | 1,154 | 1,114 | 3.6 | % | 3,385 | 3,263 | 3.7 | % | ||||||||||||||||
Policy acquisition costs | 630 | 582 | 8.5 | % | 1,855 | 1,754 | 5.8 | % | ||||||||||||||||
Administrative expenses | 257 | 252 | 1.5 | % | 771 | 757 | 1.8 | % | ||||||||||||||||
Underwriting income | 215 | 209 | 3.1 | % | 584 | 651 | (10.3 | )% | ||||||||||||||||
Underwriting income - constant dollars (1) | 9.3 | % | (2.9 | )% | ||||||||||||||||||||
Net investment income | 148 | 155 | (4.9 | )% | 443 | 461 | (4.0 | )% | ||||||||||||||||
Other (income) expense | 3 | (7 | ) | NM | 10 | (12 | ) | NM | ||||||||||||||||
Amortization of purchased intangibles | 11 | 8 | 17.9 | % | 34 | 29 | 14.2 | % | ||||||||||||||||
Segment income | $ | 349 | $ | 363 | (3.7 | )% | $ | 983 | $ | 1,095 | (10.2 | )% | ||||||||||||
Loss and loss expense ratio | 51.1 | % | 51.7 | % | (0.6 | ) | pts | 51.3 | % | 50.8 | % | 0.5 | pts | |||||||||||
Policy acquisition cost ratio | 28.0 | % | 26.9 | % | 1.1 | pts | 28.1 | % | 27.3 | % | 0.8 | pts | ||||||||||||
Administrative expense ratio | 11.4 | % | 11.7 | % | (0.3 | ) | pts | 11.7 | % | 11.8 | % | (0.1 | ) | pts | ||||||||||
Combined ratio | 90.5 | % | 90.3 | % | 0.2 | pts | 91.1 | % | 89.9 | % | 1.2 | pts |
Net Premiums Written by Region | Three months ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2020 | 2020 % of Total | 2019 | 2019 % of Total | C$ (1) 2019 | Q-20 vs. Q-19 | C$ (1) Q-20 vs. Q-19 | ||||||||||||||||||||||||||||||||||
Region | |||||||||||||||||||||||||||||||||||||||||
Europe | $ | 915 | 41 | % | $ | 782 | 35 | % | $ | 793 | 17.1 | % | 15.5 | % | |||||||||||||||||||||||||||
Latin America | 442 | 20 | % | 551 | 25 | % | 484 | (19.7) | % | (8.7) | % | ||||||||||||||||||||||||||||||
Asia | 794 | 35 | % | 798 | 36 | % | 804 | (0.5) | % | (1.2) | % | ||||||||||||||||||||||||||||||
Other (2) | 87 | 4 | % | 97 | 4 | % | 96 | (10.3) | % | (9.7) | % | ||||||||||||||||||||||||||||||
Net premiums written | $ | 2,238 | 100 | % | $ | 2,228 | 100 | % | $ | 2,177 | 0.5 | % | 2.8 | % |
Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2020 | 2020 % of Total | 2019 | 2019 % of Total | C$ (1) 2019 | Y-20 vs. Y-19 | C$ (1) Y-20 vs. Y-19 | ||||||||||||||||||||||||||||||||||
Region | |||||||||||||||||||||||||||||||||||||||||
Europe | $ | 2,994 | 44 | % | $ | 2,698 | 39 | % | $ | 2,678 | 11.0 | % | 11.8 | % | |||||||||||||||||||||||||||
Latin America | 1,414 | 21 | % | 1,657 | 24 | % | 1,496 | (14.6) | % | (5.5) | % | ||||||||||||||||||||||||||||||
Asia | 2,203 | 32 | % | 2,259 | 33 | % | 2,237 | (2.5) | % | (1.5) | % | ||||||||||||||||||||||||||||||
Other (2) | 246 | 3 | % | 267 | 4 | % | 263 | (8.0) | % | (6.6) | % | ||||||||||||||||||||||||||||||
Net premiums written | $ | 6,857 | 100 | % | $ | 6,881 | 100 | % | $ | 6,674 | (0.3) | % | 2.7 | % |
Net Premiums Written by Region | |||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2019 % of Total | 2018 | 2018 % of Total | C$ (1) 2018 | 2019 vs. 2018 | C$ (1) 2019 vs. 2018 | ||||||||||||||||
Region | |||||||||||||||||||||||
Three months ended September 30 | Q-19 vs. Q-18 % Change | ||||||||||||||||||||||
Europe | $ | 782 | 35 | % | $ | 727 | 35 | % | $ | 701 | 7.6 | % | 11.6 | % | |||||||||
Latin America | 551 | 25 | % | 519 | 25 | % | 502 | 6.0 | % | 9.8 | % | ||||||||||||
Asia | 798 | 36 | % | 755 | 36 | % | 733 | 5.8 | % | 8.9 | % | ||||||||||||
Other (2) | 97 | 4 | % | 80 | 4 | % | 77 | 21.8 | % | 25.9 | % | ||||||||||||
Net premiums written | $ | 2,228 | 100 | % | $ | 2,081 | 100 | % | $ | 2,013 | 7.1 | % | 10.7 | % | |||||||||
Nine months ended September 30 | YTD-19 vs. YTD-18 % Change | ||||||||||||||||||||||
Europe | $ | 2,698 | 39 | % | $ | 2,641 | 40 | % | $ | 2,520 | 2.2 | % | 7.1 | % | |||||||||
Latin America | 1,657 | 24 | % | 1,597 | 24 | % | 1,491 | 3.7 | % | 11.1 | % | ||||||||||||
Asia | 2,259 | 33 | % | 2,176 | 33 | % | 2,103 | 3.8 | % | 7.5 | % | ||||||||||||
Other (2) | 267 | 4 | % | 250 | 3 | % | 239 | 6.8 | % | 11.5 | % | ||||||||||||
Net premiums written | $ | 6,881 | 100 | % | $ | 6,664 | 100 | % | $ | 6,353 | 3.3 | % | 8.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Catastrophe losses (excludes reinstatement premiums) | $ | 95 | $ | 35 | $ | 568 | $ | 69 | |||||||||||||||
Favorable prior period development | $ | 60 | $ | 25 | $ | 100 | $ | 49 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Catastrophe losses | $ | 35 | $ | 80 | $ | 69 | $ | 121 | |||||||
Favorable prior period development | $ | 25 | $ | 72 | $ | 49 | $ | 166 |
•2020: COVID-19 pandemic of $373 million, storms in Australia, Australia wildfires, Hurricane Laura, Hurricane Sally, Tropical Storm Isaias, and other weather-related events •2019: Typhoon Faxai, Hurricane Dorian, storms in Australia, and other international weather-related events |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Loss and loss expense ratio | 51.0 | % | 51.1 | % | 57.6 | % | 51.3 | % | ||||||||||||
Catastrophe losses | (4.1) | % | (1.5) | % | (8.5) | % | (1.0) | % | ||||||||||||
Prior period development | 2.6 | % | 1.1 | % | 1.5 | % | 0.7 | % | ||||||||||||
CAY loss ratio excluding catastrophe losses | 49.5 | % | 50.7 | % | 50.6 | % | 51.0 | % |
Three Months Ended | Nine Months Ended | |||||||||
September 30 | September 30 | |||||||||
2019 | 2018 | 2019 | 2018 | |||||||
Loss and loss expense ratio | 51.1 | % | 51.7 | % | 51.3 | % | 50.8 | % | ||
Catastrophe losses | (1.5 | )% | (3.8 | )% | (1.0 | )% | (1.9 | )% | ||
Prior period development | 1.1 | % | 3.4 | % | 0.7 | % | 2.6 | % | ||
CAY loss ratio excluding catastrophe losses | 50.7 | % | 51.3 | % | 51.0 | % | 51.5 | % |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | (in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written | $ | 141 | $ | 164 | (14.0 | )% | $ | 540 | $ | 554 | (2.5 | )% | Net premiums written | $ | 181 | $ | 141 | 28.4 | % | $ | 606 | $ | 540 | 12.2 | % | |||||||||||||||||||||||||||||||||||||
Net premiums earned | 160 | 157 | 1.9 | % | 487 | 492 | (1.1 | )% | Net premiums earned | 171 | 160 | 6.7 | % | 520 | 487 | 6.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | 79 | 86 | (8.0 | )% | 245 | 236 | 3.7 | % | Losses and loss expenses | 154 | 79 | 92.6 | % | 314 | 245 | 28.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs | 42 | 40 | 5.8 | % | 127 | 120 | 6.3 | % | Policy acquisition costs | 40 | 42 | (3.9) | % | 127 | 127 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | 9 | 10 | (17.7 | )% | 26 | 29 | (12.8 | )% | Administrative expenses | 9 | 9 | — | 28 | 26 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 30 | 21 | 44.9 | % | 89 | 107 | (16.6 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | Underwriting income (loss) | (32) | 30 | NM | 51 | 89 | (42.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 55 | 63 | (12.9 | )% | 166 | 192 | (13.3 | )% | Net investment income | 85 | 71 | 18.5 | % | 214 | 206 | 3.3 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (16 | ) | (13 | ) | 25.9 | % | (40 | ) | (26 | ) | 52.6 | % | Other (income) expense | — | — | — | 1 | — | NM | |||||||||||||||||||||||||||||||||||||||||||
Segment income | $ | 101 | $ | 97 | 4.6 | % | $ | 295 | $ | 325 | (9.1 | )% | Segment income | $ | 53 | $ | 101 | (48.2) | % | $ | 264 | $ | 295 | (10.7) | % | |||||||||||||||||||||||||||||||||||||
Net premiums written - constant dollars (1) | Net premiums written - constant dollars (1) | 27.2 | % | 11.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 49.6 | % | 55.0 | % | (5.4 | ) | pts | 50.3 | % | 48.0 | % | 2.3 | pts | Loss and loss expense ratio | 89.6 | % | 49.6 | % | 40.0 | pts | 60.3 | % | 50.3 | % | 10.0 | pts | ||||||||||||||||||||||||||||||||||||
Policy acquisition cost ratio | 26.2 | % | 25.2 | % | 1.0 | pt | 26.1 | % | 24.3 | % | 1.8 | pts | Policy acquisition cost ratio | 23.5 | % | 26.2 | % | (2.7) | pts | 24.5 | % | 26.1 | % | (1.6) | pts | |||||||||||||||||||||||||||||||||||||
Administrative expense ratio | 5.3 | % | 6.5 | % | (1.2 | ) | pts | 5.3 | % | 6.0 | % | (0.7 | ) | pts | Administrative expense ratio | 5.2 | % | 5.3 | % | (0.1) | pts | 5.3 | % | 5.3 | % | — | pts | |||||||||||||||||||||||||||||||||||
Combined ratio | 81.1 | % | 86.7 | % | (5.6 | ) | pts | 81.7 | % | 78.3 | % | 3.4 | pts | Combined ratio | 118.3 | % | 81.1 | % | 37.2 | pts | 90.1 | % | 81.7 | % | 8.4 | pts |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Catastrophe losses (excludes reinstatement premiums) | $ | 75 | $ | 25 | $ | 88 | $ | 35 | |||||||||||||||
Favorable prior period development | $ | 6 | $ | 25 | $ | 29 | $ | 33 | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30 | September 30 | |||||||||||||
(in millions of U.S dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||
Catastrophe losses (1) | $ | 25 | $ | 34 | $ | 35 | $ | 45 | ||||||
Favorable prior period development | $ | 25 | $ | 24 | $ | 33 | $ | 54 |
•2020: COVID-19 pandemic claims of $10 million, Hurricane Laura, Hurricane Sally, Tropical Storm Isaias, and other severe weather-related events in Canada and the U.S. •2019: Hurricane Dorian and various U.S. and Japanese severe weather-related events |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Loss and loss expense ratio | 89.6 | % | 49.6 | % | 60.3 | % | 50.3 | % | ||||||||||||
Catastrophe losses | (42.0) | % | (15.4) | % | (16.3) | % | (7.0) | % | ||||||||||||
Prior period development | 2.1 | % | 15.7 | % | 5.0 | % | 6.7 | % | ||||||||||||
CAY loss ratio excluding catastrophe losses | 49.7 | % | 49.9 | % | 49.0 | % | 50.0 | % |
Three Months Ended | Nine Months Ended | |||||||||
September 30 | September 30 | |||||||||
2019 | 2018 | 2019 | 2018 | |||||||
Loss and loss expense ratio | 49.6 | % | 55.0 | % | 50.3 | % | 48.0 | % | ||
Catastrophe losses | (15.4 | )% | (20.6 | )% | (7.0 | )% | (8.7 | )% | ||
Prior period development | 15.7 | % | 16.8 | % | 6.7 | % | 11.3 | % | ||
CAY loss ratio excluding catastrophe losses | 49.9 | % | 51.2 | % | 50.0 | % | 50.6 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | ||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||
Net premiums written | $ | 610 | $ | 612 | (0.4) | % | $ | 1,874 | $ | 1,770 | 5.9 | % | |||||||||||||||||||||||
Net premiums earned | 599 | 598 | — | 1,838 | 1,730 | 6.2 | % | ||||||||||||||||||||||||||||
Losses and loss expenses | 183 | 190 | 4.7 | % | 556 | 581 | (4.6) | % | |||||||||||||||||||||||||||
Policy benefits | 174 | 165 | 6.1 | % | 542 | 495 | 9.9 | % | |||||||||||||||||||||||||||
Policy acquisition costs | 175 | 176 | (1.3) | % | 551 | 454 | 21.2 | % | |||||||||||||||||||||||||||
Administrative expenses | 80 | 80 | — | 238 | 237 | 0.5 | % | ||||||||||||||||||||||||||||
Net investment income | 95 | 92 | 3.3 | % | 285 | 278 | 2.7 | % | |||||||||||||||||||||||||||
Life Insurance underwriting income | 82 | 79 | 5.4 | % | 236 | 241 | (1.8) | % | |||||||||||||||||||||||||||
Other (income) expense | (23) | (17) | 34.9 | % | (52) | (37) | 40.7 | % | |||||||||||||||||||||||||||
Amortization of purchased intangibles | 1 | 1 | — | 3 | 2 | 50.0 | % | ||||||||||||||||||||||||||||
Segment income | $ | 104 | $ | 95 | 10.0 | % | $ | 285 | $ | 276 | 3.3 | % | |||||||||||||||||||||||
Net premiums written - constant dollars (1) | 0.2 | % | 6.5 | % | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | % Change | September 30 | % Change | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | |||||||||||||||
Net premiums written | $ | 612 | $ | 564 | 8.5 | % | $ | 1,770 | $ | 1,688 | 4.8 | % | |||||||||
Net premiums earned | 598 | 551 | 8.7 | % | 1,730 | 1,643 | 5.3 | % | |||||||||||||
Losses and loss expenses | 190 | 195 | (2.0 | )% | 581 | 584 | (0.5 | )% | |||||||||||||
Policy benefits (1) | 158 | 127 | 23.2 | % | 515 | 428 | 20.2 | % | |||||||||||||
(Gains) losses from fair value changes in separate account assets (1) | 7 | 14 | (46.3 | )% | (20 | ) | 18 | NM | |||||||||||||
Policy acquisition costs | 176 | 139 | 27.2 | % | 454 | 405 | 12.2 | % | |||||||||||||
Administrative expenses | 80 | 77 | 3.8 | % | 237 | 235 | 1.0 | % | |||||||||||||
Net investment income | 92 | 85 | 7.8 | % | 278 | 253 | 10.0 | % | |||||||||||||
Life Insurance underwriting income | 79 | 84 | (6.8 | )% | 241 | 226 | 6.4 | % | |||||||||||||
Other (income) expense (1) | (17 | ) | 6 | NM | (37 | ) | 6 | NM | |||||||||||||
Amortization of purchased intangibles | 1 | — | NM | 2 | 1 | 24.7 | % | ||||||||||||||
Segment income | $ | 95 | $ | 78 | 20.9 | % | $ | 276 | $ | 219 | 25.9 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2020 | 2019 | C$ (1) 2019 | Q-20 vs. Q-19 | C$ (1) Q-20 vs. Q-19 | 2020 | 2019 | C$ (1) 2019 | Y-20 vs. Y-19 | C$ (1) Y-20 vs. Y-19 | |||||||||||||||||||||||||||||||||||||||||||||||||
Deposits collected on Universal life and investment contracts | $ | 363 | $ | 369 | $ | 384 | (1.8) | % | (5.7) | % | $ | 1,115 | $ | 1,059 | $ | 1,081 | 5.3 | % | 3.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | ||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | C$ (1) 2018 | Q-19 vs. Q-18 | C$ (1) Q-19 vs. Q-18 | 2019 | 2018 | C$ (1) 2018 | Y-19 vs. Y-18 | C$ (1) Y-19 vs. Y-18 | |||||||||||||||||||||||||
Deposits collected on Universal life and investment contracts | $ | 369 | $ | 392 | $ | 381 | (5.9 | )% | (3.0 | )% | $ | 1,059 | $ | 1,163 | $ | 1,124 | (9.0 | )% | (5.8 | )% |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | % Change | September 30 | % Change | September 30 | % Change | September 30 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | 2019 | 2018 | Q-19 vs. Q-18 | 2019 | 2018 | YTD-19 vs. YTD-18 | (in millions of U.S. dollars, except for percentages) | 2020 | 2019 | Q-20 vs. Q-19 | 2020 | 2019 | YTD-20 vs. YTD-19 | |||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 38 | $ | 13 | 184.6 | % | $ | 83 | $ | 72 | 14.9 | % | Losses and loss expenses | $ | 55 | $ | 38 | 47.1 | % | $ | 342 | $ | 83 | NM | ||||||||||||||||||||||||||||||||
Administrative expenses | 74 | 58 | 31.5 | % | 211 | 200 | 6.2 | % | Administrative expenses | 71 | 74 | (5.1) | % | 214 | 211 | 1.1 | % | |||||||||||||||||||||||||||||||||||||||
Underwriting loss | 112 | 71 | 59.1 | % | 294 | 272 | 8.1 | % | Underwriting loss | 126 | 112 | 12.2 | % | 556 | 294 | 89.2 | % | |||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (28 | ) | (49 | ) | (42.9 | )% | (98 | ) | (162 | ) | (40.1 | )% | Net investment income (loss) | (19) | (28) | (30.2) | % | (65) | (98) | (32.6) | % | |||||||||||||||||||||||||||||||||||
Interest expense | 138 | 164 | (16.1 | )% | 418 | 488 | (14.5 | )% | Interest expense | 130 | 138 | (5.5) | % | 390 | 418 | (6.5) | % | |||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) | (141 | ) | 27 | NM | (467 | ) | 33 | NM | Net realized gains (losses) | (142) | (141) | 0.9 | % | (1,067) | (467) | 128.2 | % | |||||||||||||||||||||||||||||||||||||||
Other (income) expense | (34 | ) | (144 | ) | (75.6 | )% | (238 | ) | (275 | ) | (13.4 | )% | Other (income) expense | (415) | (34) | NM | (283) | (238) | 18.9 | % | ||||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 54 | 64 | (14.2 | )% | 163 | 192 | (14.3 | )% | Amortization of purchased intangibles | 52 | 54 | (6.6) | % | 153 | 163 | (7.0) | % | |||||||||||||||||||||||||||||||||||||||
Chubb integration expenses | 2 | 16 | (89.9 | )% | 9 | 39 | (76.9 | )% | Chubb integration expenses | — | 2 | NM | — | 9 | NM | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | 230 | 183 | 25.8 | % | 626 | 536 | 16.8 | % | Income tax expense | 142 | 230 | (38.0) | % | 295 | 626 | (52.8) | % | |||||||||||||||||||||||||||||||||||||||
Net loss | $ | (671 | ) | $ | (376 | ) | 78.7 | % | $ | (1,837 | ) | $ | (1,381 | ) | 33.1 | % | Net loss | $ | (196) | $ | (671) | (70.9) | % | $ | (2,243) | $ | (1,837) | 22.1 | % |
Net Realized and Unrealized Gains (Losses) |
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | |||||||||||||||||||||||||||||
Fixed maturities | $ | 49 | $ | 638 | $ | 687 | $ | (11) | $ | 705 | $ | 694 | |||||||||||||||||||||||
Fixed income and equity derivatives | 9 | — | 9 | (97) | — | (97) | |||||||||||||||||||||||||||||
Public equity | |||||||||||||||||||||||||||||||||||
Sales | 34 | — | 34 | 24 | — | 24 | |||||||||||||||||||||||||||||
Mark-to-market | (34) | — | (34) | (21) | — | (21) | |||||||||||||||||||||||||||||
Private equity (less than 3 percent ownership) | |||||||||||||||||||||||||||||||||||
Sales | — | — | — | (2) | — | (2) | |||||||||||||||||||||||||||||
Mark-to-market | 31 | — | 31 | (2) | — | (2) | |||||||||||||||||||||||||||||
Total investment portfolio | 89 | 638 | 727 | (109) | 705 | 596 | |||||||||||||||||||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | (6) | — | (6) | (112) | — | (112) | |||||||||||||||||||||||||||||
Other derivatives | 1 | — | 1 | (14) | — | (14) | |||||||||||||||||||||||||||||
Foreign exchange | (222) | 246 | 24 | 84 | (193) | (109) | |||||||||||||||||||||||||||||
Other | (3) | (23) | (26) | (4) | (17) | (21) | |||||||||||||||||||||||||||||
Net gains (losses), pre-tax | $ | (141) | $ | 861 | $ | 720 | $ | (155) | $ | 495 | $ | 340 |
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | |||||||||||||||||||||||||||||
Fixed maturities | $ | (303) | $ | 1,759 | $ | 1,456 | $ | (43) | $ | 3,834 | $ | 3,791 | |||||||||||||||||||||||
Fixed income and equity derivatives | 38 | — | 38 | (408) | — | (408) | |||||||||||||||||||||||||||||
Public equity | |||||||||||||||||||||||||||||||||||
Sales | 197 | — | 197 | 57 | — | 57 | |||||||||||||||||||||||||||||
Mark-to-market | (78) | — | (78) | 9 | — | 9 | |||||||||||||||||||||||||||||
Private equity (less than 3 percent ownership) | |||||||||||||||||||||||||||||||||||
Sales | — | — | — | (4) | — | (4) | |||||||||||||||||||||||||||||
Mark-to-market | (71) | — | (71) | (14) | — | (14) | |||||||||||||||||||||||||||||
Total investment portfolio | (217) | 1,759 | 1,542 | (403) | 3,834 | 3,431 | |||||||||||||||||||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | (456) | — | (456) | (146) | — | (146) | |||||||||||||||||||||||||||||
Other derivatives | (2) | — | (2) | (8) | — | (8) | |||||||||||||||||||||||||||||
Foreign exchange | (351) | (168) | (519) | 86 | (143) | (57) | |||||||||||||||||||||||||||||
Other | (43) | (59) | (102) | (4) | (62) | (66) | |||||||||||||||||||||||||||||
Net gains (losses), pre-tax | $ | (1,069) | $ | 1,532 | $ | 463 | $ | (475) | $ | 3,629 | $ | 3,154 |
Effective Income Tax Rate |
Non-GAAP Reconciliation |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars, except for percentage points) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Actual level of CATs - pre-tax | $ | 232 | $ | 450 | $ | 757 | $ | 1,041 | |||||||
Less: Expected level of CATs - pre-tax | 336 | 342 | 783 | 772 | |||||||||||
CATs above (below) expected level - pre-tax | $ | (104 | ) | $ | 108 | $ | (26 | ) | $ | 269 | |||||
Adverse (favorable) impact of CATs above (below) an expected level on combined ratio | (1.3 | )% | 1.5 | % | (0.1 | )% | 1.4 | % |
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 | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 2,051 | $ | 674 | $ | 866 | $ | 1,154 | $ | 79 | $ | 38 | $ | 4,862 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | 14 | — | — | — | 14 | |||||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 2,051 | $ | 674 | $ | 880 | $ | 1,154 | $ | 79 | $ | 38 | $ | 4,876 | |||||||||||||
CATs (excludes reinstatement premiums) | (88 | ) | (83 | ) | (3 | ) | (35 | ) | (25 | ) | — | (234 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 109 | 62 | (18 | ) | 25 | 25 | (36 | ) | 167 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 39 | — | — | — | 1 | — | 40 | |||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | 3 | — | — | — | (1 | ) | — | 2 | ||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1 | ) | (1 | ) | — | 1 | — | — | (1 | ) | ||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 150 | 61 | (18 | ) | 26 | 25 | (36 | ) | 208 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 2,113 | $ | 652 | $ | 859 | $ | 1,145 | $ | 79 | $ | 2 | $ | 4,850 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 715 | $ | 312 | $ | 60 | $ | 887 | $ | 51 | $ | 74 | $ | 2,099 | |||||||||||||
Expense adjustments - favorable (unfavorable) | (3 | ) | — | — | — | 1 | — | (2 | ) | |||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 712 | $ | 312 | $ | 60 | $ | 887 | $ | 52 | $ | 74 | $ | 2,097 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 3,185 | $ | 1,187 | $ | 941 | $ | 2,256 | $ | 160 | $ | 7,729 | |||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 39 | — | — | — | 1 | 40 | ||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1 | ) | (1 | ) | — | 1 | — | (1 | ) | |||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 3,223 | $ | 1,186 | $ | 941 | $ | 2,257 | $ | 159 | $ | 7,766 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 64.4 | % | 56.9 | % | 93.5 | % | 51.1 | % | 49.6 | % | 63.1 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 22.5 | % | 26.2 | % | 6.4 | % | 39.4 | % | 31.5 | % | 27.1 | % | |||||||||||||||
P&C Combined ratio | 86.9 | % | 83.1 | % | 99.9 | % | 90.5 | % | 81.1 | % | 90.2 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 65.5 | % | 55.1 | % | 91.3 | % | 50.7 | % | 49.9 | % | 62.4 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 22.1 | % | 26.2 | % | 6.4 | % | 39.3 | % | 32.2 | % | 27.1 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 87.6 | % | 81.3 | % | 97.7 | % | 90.0 | % | 82.1 | % | 89.5 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 90.0 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | 0.2 | % | ||||||||||||||||||||||||||
P&C Combined ratio | 90.2 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | A | $ | 2,444 | $ | 961 | $ | 845 | $ | 1,192 | $ | 154 | $ | 55 | $ | 5,651 | |||||||||||||||||||||||||||||
Catastrophe losses and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses, net of related adjustments | (447) | (305) | (10) | (95) | (68) | — | (925) | |||||||||||||||||||||||||||||||||||||
Reinstatement premiums collected (expensed) on catastrophe losses | — | — | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||
Catastrophe losses, gross of related adjustments | (447) | (305) | (10) | (95) | (75) | — | (932) | |||||||||||||||||||||||||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 200 | (48) | (18) | 60 | 6 | (54) | 146 | |||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 28 | — | — | — | — | — | 28 | |||||||||||||||||||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | (1) | — | — | — | (2) | — | (3) | |||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | — | (8) | — | — | — | — | (8) | |||||||||||||||||||||||||||||||||||||
PPD, gross of related adjustments - favorable (unfavorable) | 227 | (56) | (18) | 60 | 4 | (54) | 163 | |||||||||||||||||||||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 2,224 | $ | 600 | $ | 817 | $ | 1,157 | $ | 83 | $ | 1 | $ | 4,882 | |||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 732 | $ | 313 | $ | 61 | $ | 897 | $ | 49 | $ | 71 | $ | 2,123 | |||||||||||||||||||||||||||||
Expense adjustments - favorable (unfavorable) | 1 | — | — | — | 2 | — | 3 | |||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 733 | $ | 313 | $ | 61 | $ | 897 | $ | 51 | $ | 71 | $ | 2,126 | |||||||||||||||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | E | $ | 3,456 | $ | 1,231 | $ | 971 | $ | 2,337 | $ | 171 | $ | 8,166 | |||||||||||||||||||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (7) | (7) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 28 | — | — | — | — | 28 | ||||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | — | (8) | — | — | — | (8) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 3,484 | $ | 1,223 | $ | 971 | $ | 2,337 | $ | 164 | $ | 8,179 | |||||||||||||||||||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 70.7 | % | 78.1 | % | 87.1 | % | 51.0 | % | 89.6 | % | 69.2 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 21.2 | % | 25.4 | % | 6.2 | % | 38.4 | % | 28.7 | % | 26.0 | % | |||||||||||||||||||||||||||||||
P&C Combined ratio | 91.9 | % | 103.5 | % | 93.3 | % | 89.4 | % | 118.3 | % | 95.2 | % | ||||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 63.8 | % | 49.2 | % | 84.2 | % | 49.5 | % | 49.7 | % | 59.7 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 21.1 | % | 25.6 | % | 6.2 | % | 38.4 | % | 31.1 | % | 26.0 | % | |||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | 84.9 | % | 74.8 | % | 90.4 | % | 87.9 | % | 80.8 | % | 85.7 | % | ||||||||||||||||||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 95.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||||||||||||||||||
P&C Combined ratio | 95.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | $ | 2,051 | $ | 674 | $ | 880 | $ | 1,154 | $ | 79 | $ | 38 | $ | 4,876 | ||||||||||||||||||||||||||||||
Catastrophe losses and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses, net of related adjustments | (88) | (83) | (3) | (35) | (23) | — | (232) | |||||||||||||||||||||||||||||||||||||
Reinstatement premiums collected (expensed) on catastrophe losses | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||
Catastrophe losses, gross of related adjustments | (88) | (83) | (3) | (35) | (25) | — | (234) | |||||||||||||||||||||||||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 109 | 62 | (18) | 25 | 25 | (36) | 167 | |||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 39 | — | — | — | 1 | — | 40 | |||||||||||||||||||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | 3 | — | — | — | (1) | — | 2 | |||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1) | (1) | — | 1 | — | — | (1) | |||||||||||||||||||||||||||||||||||||
PPD, gross of related adjustments - favorable (unfavorable) | 150 | 61 | (18) | 26 | 25 | (36) | 208 | |||||||||||||||||||||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 2,113 | $ | 652 | $ | 859 | $ | 1,145 | $ | 79 | $ | 2 | $ | 4,850 | |||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 715 | $ | 312 | $ | 60 | $ | 887 | $ | 51 | $ | 74 | $ | 2,099 | |||||||||||||||||||||||||||||
Expense adjustments - favorable (unfavorable) | (3) | — | — | — | 1 | — | (2) | |||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 712 | $ | 312 | $ | 60 | $ | 887 | $ | 52 | $ | 74 | $ | 2,097 | |||||||||||||||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | E | $ | 3,185 | $ | 1,187 | $ | 941 | $ | 2,256 | $ | 160 | $ | 7,729 | |||||||||||||||||||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (2) | (2) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 39 | — | — | — | 1 | 40 | ||||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1) | (1) | — | 1 | — | (1) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 3,223 | $ | 1,186 | $ | 941 | $ | 2,257 | $ | 159 | $ | 7,766 | |||||||||||||||||||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 64.4 | % | 56.9 | % | 93.5 | % | 51.1 | % | 49.6 | % | 63.1 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 22.5 | % | 26.2 | % | 6.4 | % | 39.4 | % | 31.5 | % | 27.1 | % | |||||||||||||||||||||||||||||||
P&C Combined ratio | 86.9 | % | 83.1 | % | 99.9 | % | 90.5 | % | 81.1 | % | 90.2 | % | ||||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 65.5 | % | 55.1 | % | 91.3 | % | 50.7 | % | 49.9 | % | 62.4 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 22.1 | % | 26.2 | % | 6.4 | % | 39.3 | % | 32.2 | % | 27.1 | % | |||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | 87.6 | % | 81.3 | % | 97.7 | % | 90.0 | % | 82.1 | % | 89.5 | % | ||||||||||||||||||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 90.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | 0.2 | % | ||||||||||||||||||||||||||||||||||||||||||
P&C Combined ratio | 90.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 1,881 | $ | 860 | $ | 719 | $ | 1,114 | $ | 86 | $ | 13 | $ | 4,673 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | 8 | — | — | — | 8 | |||||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 1,881 | $ | 860 | $ | 727 | $ | 1,114 | $ | 86 | $ | 13 | $ | 4,681 | |||||||||||||
CATs (excludes reinstatement premiums) | (196 | ) | (136 | ) | (8 | ) | (80 | ) | (34 | ) | — | (454 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 216 | (58 | ) | 1 | 72 | 24 | (12 | ) | 243 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 40 | — | — | — | 4 | — | 44 | |||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | 1 | — | — | — | — | — | 1 | |||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | 1 | 1 | — | 2 | — | — | 4 | |||||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 258 | (57 | ) | 1 | 74 | 28 | (12 | ) | 292 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 1,943 | $ | 667 | $ | 720 | $ | 1,108 | $ | 80 | $ | 1 | $ | 4,519 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 709 | $ | 305 | $ | 51 | $ | 834 | $ | 50 | $ | 58 | $ | 2,007 | |||||||||||||
Expense adjustments - favorable (unfavorable) | (1 | ) | — | — | — | — | — | (1 | ) | |||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 708 | $ | 305 | $ | 51 | $ | 834 | $ | 50 | $ | 58 | $ | 2,006 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 3,019 | $ | 1,167 | $ | 857 | $ | 2,157 | $ | 157 | $ | 7,357 | |||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 40 | — | — | — | 4 | 44 | ||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | 1 | 1 | — | 2 | — | 4 | ||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 3,060 | $ | 1,168 | $ | 857 | $ | 2,159 | $ | 157 | $ | 7,401 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 62.3 | % | 73.7 | % | 84.9 | % | 51.7 | % | 55.0 | % | 63.6 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 23.5 | % | 26.1 | % | 5.8 | % | 38.6 | % | 31.7 | % | 27.3 | % | |||||||||||||||
P&C Combined ratio | 85.8 | % | 99.8 | % | 90.7 | % | 90.3 | % | 86.7 | % | 90.9 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 63.5 | % | 57.1 | % | 84.1 | % | 51.3 | % | 51.2 | % | 61.1 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 23.2 | % | 26.1 | % | 5.8 | % | 38.7 | % | 31.6 | % | 27.1 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 86.7 | % | 83.2 | % | 89.9 | % | 90.0 | % | 82.8 | % | 88.2 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 90.8 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | 0.1 | % | ||||||||||||||||||||||||||
P&C Combined ratio | 90.9 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | A | $ | 8,123 | $ | 2,406 | $ | 1,223 | $ | 3,935 | $ | 314 | $ | 342 | $ | 16,343 | |||||||||||||||||||||||||||||
Catastrophe losses and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses, net of related adjustments | (1,838) | (436) | (24) | (584) | (81) | — | (2,963) | |||||||||||||||||||||||||||||||||||||
Reinstatement premiums collected (expensed) on catastrophe losses | (3) | (1) | — | (16) | 7 | — | (13) | |||||||||||||||||||||||||||||||||||||
Catastrophe losses, gross of related adjustments | (1,835) | (435) | (24) | (568) | (88) | — | (2,950) | |||||||||||||||||||||||||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 451 | (48) | (4) | 100 | 29 | (339) | 189 | |||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 32 | — | 3 | — | — | — | 35 | |||||||||||||||||||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | (1) | — | — | — | (2) | — | (3) | |||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | — | (8) | — | — | (1) | — | (9) | |||||||||||||||||||||||||||||||||||||
PPD, gross of related adjustments - favorable (unfavorable) | 482 | (56) | (1) | 100 | 26 | (339) | 212 | |||||||||||||||||||||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 6,770 | $ | 1,915 | $ | 1,198 | $ | 3,467 | $ | 252 | $ | 3 | $ | 13,605 | |||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 2,203 | $ | 923 | $ | 108 | $ | 2,662 | $ | 155 | $ | 214 | $ | 6,265 | |||||||||||||||||||||||||||||
Expense adjustments - favorable (unfavorable) | 1 | — | — | — | 2 | — | 3 | |||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 2,204 | $ | 923 | $ | 108 | $ | 2,662 | $ | 157 | $ | 214 | $ | 6,268 | |||||||||||||||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | E | $ | 10,427 | $ | 3,623 | $ | 1,441 | $ | 6,838 | $ | 520 | $ | 22,849 | |||||||||||||||||||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | 3 | 1 | — | 16 | (7) | 13 | ||||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 32 | — | 3 | — | — | 35 | ||||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | — | (8) | — | — | (1) | (9) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 10,462 | $ | 3,616 | $ | 1,444 | $ | 6,854 | $ | 512 | $ | 22,888 | |||||||||||||||||||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 77.9 | % | 66.4 | % | 84.9 | % | 57.6 | % | 60.3 | % | 71.5 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 21.1 | % | 25.5 | % | 7.4 | % | 38.9 | % | 29.8 | % | 27.4 | % | |||||||||||||||||||||||||||||||
P&C Combined ratio | 99.0 | % | 91.9 | % | 92.3 | % | 96.5 | % | 90.1 | % | 98.9 | % | ||||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 64.7 | % | 53.0 | % | 83.0 | % | 50.6 | % | 49.0 | % | 59.4 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 21.1 | % | 25.5 | % | 7.4 | % | 38.8 | % | 30.7 | % | 27.4 | % | |||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | 85.8 | % | 78.5 | % | 90.4 | % | 89.4 | % | 79.7 | % | 86.8 | % | ||||||||||||||||||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 98.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||||||||||||||||||
P&C Combined ratio | 98.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 6,238 | $ | 2,178 | $ | 1,155 | $ | 3,385 | $ | 245 | $ | 83 | $ | 13,284 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | 8 | — | — | — | 8 | |||||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 6,238 | $ | 2,178 | $ | 1,163 | $ | 3,385 | $ | 245 | $ | 83 | $ | 13,292 | |||||||||||||
CATs (excludes reinstatement premiums) | (319 | ) | (329 | ) | (7 | ) | (69 | ) | (35 | ) | — | (759 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 425 | 88 | 43 | 49 | 33 | (79 | ) | 559 | ||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 38 | — | 32 | — | 1 | — | 71 | |||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | (3 | ) | — | (3 | ) | — | (1 | ) | — | (7 | ) | |||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1 | ) | (4 | ) | — | 1 | — | — | (4 | ) | ||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 459 | 84 | 72 | 50 | 33 | (79 | ) | 619 | ||||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 6,378 | $ | 1,933 | $ | 1,228 | $ | 3,366 | $ | 243 | $ | 4 | $ | 13,152 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 2,132 | $ | 919 | $ | 99 | $ | 2,626 | $ | 153 | $ | 211 | $ | 6,140 | |||||||||||||
Expense adjustments - favorable (unfavorable) | 3 | — | 3 | — | 1 | — | 7 | |||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 2,135 | $ | 919 | $ | 102 | $ | 2,626 | $ | 154 | $ | 211 | $ | 6,147 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 9,660 | $ | 3,509 | $ | 1,374 | $ | 6,595 | $ | 487 | $ | 21,625 | |||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 38 | — | 32 | — | 1 | 71 | ||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1 | ) | (4 | ) | — | 1 | — | (4 | ) | |||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 9,697 | $ | 3,505 | $ | 1,406 | $ | 6,596 | $ | 486 | $ | 21,690 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 64.6 | % | 62.1 | % | 84.7 | % | 51.3 | % | 50.3 | % | 61.5 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 22.0 | % | 26.2 | % | 7.2 | % | 39.8 | % | 31.4 | % | 28.4 | % | |||||||||||||||
P&C Combined ratio | 86.6 | % | 88.3 | % | 91.9 | % | 91.1 | % | 81.7 | % | 89.9 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 65.8 | % | 55.2 | % | 87.4 | % | 51.0 | % | 50.0 | % | 60.6 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 22.0 | % | 26.2 | % | 7.2 | % | 39.8 | % | 31.7 | % | 28.4 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 87.8 | % | 81.4 | % | 94.6 | % | 90.8 | % | 81.7 | % | 89.0 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 89.9 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||
P&C Combined ratio | 89.9 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | A | $ | 6,238 | $ | 2,178 | $ | 1,163 | $ | 3,385 | $ | 245 | $ | 83 | $ | 13,292 | |||||||||||||||||||||||||||||
Catastrophe losses and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses, net of related adjustments | (319) | (329) | (7) | (69) | (33) | — | (757) | |||||||||||||||||||||||||||||||||||||
Reinstatement premiums collected (expensed) on catastrophe losses | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||
Catastrophe losses, gross of related adjustments | (319) | (329) | (7) | (69) | (35) | — | (759) | |||||||||||||||||||||||||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 425 | 88 | 43 | 49 | 33 | (79) | 559 | |||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 38 | — | 32 | — | 1 | — | 71 | |||||||||||||||||||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | (3) | — | (3) | — | (1) | — | (7) | |||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1) | (4) | — | 1 | — | — | (4) | |||||||||||||||||||||||||||||||||||||
PPD, gross of related adjustments - favorable (unfavorable) | 459 | 84 | 72 | 50 | 33 | (79) | 619 | |||||||||||||||||||||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 6,378 | $ | 1,933 | $ | 1,228 | $ | 3,366 | $ | 243 | $ | 4 | $ | 13,152 | |||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 2,132 | $ | 919 | $ | 99 | $ | 2,626 | $ | 153 | $ | 211 | $ | 6,140 | |||||||||||||||||||||||||||||
Expense adjustments - favorable (unfavorable) | 3 | — | 3 | — | 1 | — | 7 | |||||||||||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 2,135 | $ | 919 | $ | 102 | $ | 2,626 | $ | 154 | $ | 211 | $ | 6,147 | |||||||||||||||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | E | $ | 9,660 | $ | 3,509 | $ | 1,374 | $ | 6,595 | $ | 487 | $ | 21,625 | |||||||||||||||||||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (2) | (2) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 38 | — | 32 | — | 1 | 71 | ||||||||||||||||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | (1) | (4) | — | 1 | — | (4) | ||||||||||||||||||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 9,697 | $ | 3,505 | $ | 1,406 | $ | 6,596 | $ | 486 | $ | 21,690 | |||||||||||||||||||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 64.6 | % | 62.1 | % | 84.7 | % | 51.3 | % | 50.3 | % | 61.5 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 22.0 | % | 26.2 | % | 7.2 | % | 39.8 | % | 31.4 | % | 28.4 | % | |||||||||||||||||||||||||||||||
P&C Combined ratio | 86.6 | % | 88.3 | % | 91.9 | % | 91.1 | % | 81.7 | % | 89.9 | % | ||||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 65.8 | % | 55.2 | % | 87.4 | % | 51.0 | % | 50.0 | % | 60.6 | % | |||||||||||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 22.0 | % | 26.2 | % | 7.2 | % | 39.8 | % | 31.7 | % | 28.4 | % | |||||||||||||||||||||||||||||||
CAY P&C Combined ratio ex CATs | 87.8 | % | 81.4 | % | 94.6 | % | 90.8 | % | 81.7 | % | 89.0 | % | ||||||||||||||||||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 89.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||||||||||||||||||
P&C Combined ratio | 89.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
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 | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars except for ratios) | ||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||
Losses and loss expenses | ||||||||||||||||||||||||||||
Losses and loss expenses | $ | 5,873 | $ | 2,474 | $ | 955 | $ | 3,263 | $ | 236 | $ | 72 | $ | 12,873 | ||||||||||||||
Realized (gains) losses on crop derivatives | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||
Adjusted losses and loss expenses | A | $ | 5,873 | $ | 2,474 | $ | 953 | $ | 3,263 | $ | 236 | $ | 72 | $ | 12,871 | |||||||||||||
CATs (excludes reinstatement premiums) | (347 | ) | (521 | ) | (11 | ) | (121 | ) | (45 | ) | — | (1,045 | ) | |||||||||||||||
PPD and related adjustments | ||||||||||||||||||||||||||||
PPD, net of related adjustments - favorable (unfavorable) | 472 | (59 | ) | 77 | 166 | 54 | (67 | ) | 643 | |||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 29 | — | 40 | — | 7 | — | 76 | |||||||||||||||||||||
Expense adjustments - unfavorable (favorable) | 7 | — | (4 | ) | — | (1 | ) | — | 2 | |||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | 5 | 1 | — | 2 | — | — | 8 | |||||||||||||||||||||
PPD - gross of related adjustments - favorable (unfavorable) | 513 | (58 | ) | 113 | 168 | 60 | (67 | ) | 729 | |||||||||||||||||||
CAY loss and loss expense ex CATs | B | $ | 6,039 | $ | 1,895 | $ | 1,055 | $ | 3,310 | $ | 251 | $ | 5 | $ | 12,555 | |||||||||||||
Policy acquisition costs and administrative expenses | ||||||||||||||||||||||||||||
Policy acquisition costs and administrative expenses | C | $ | 2,113 | $ | 903 | $ | 74 | $ | 2,511 | $ | 149 | $ | 200 | $ | 5,950 | |||||||||||||
Expense adjustments - favorable (unfavorable) | (7 | ) | — | 4 | — | 1 | — | (2 | ) | |||||||||||||||||||
Policy acquisition costs and administrative expenses, adjusted | D | $ | 2,106 | $ | 903 | $ | 78 | $ | 2,511 | $ | 150 | $ | 200 | $ | 5,948 | |||||||||||||
Denominator | ||||||||||||||||||||||||||||
Net premiums earned | E | $ | 9,325 | $ | 3,463 | $ | 1,251 | $ | 6,425 | $ | 492 | $ | 20,956 | |||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) | 29 | — | 40 | — | 7 | 76 | ||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) | 5 | 1 | — | 2 | — | 8 | ||||||||||||||||||||||
Net premiums earned excluding adjustments | F | $ | 9,359 | $ | 3,464 | $ | 1,291 | $ | 6,427 | $ | 495 | $ | 21,036 | |||||||||||||||
P&C Combined ratio | ||||||||||||||||||||||||||||
Loss and loss expense ratio | A/E | 63.0 | % | 71.5 | % | 76.2 | % | 50.8 | % | 48.0 | % | 61.4 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio | C/E | 22.6 | % | 26.0 | % | 5.9 | % | 39.1 | % | 30.3 | % | 28.4 | % | |||||||||||||||
P&C Combined ratio | 85.6 | % | 97.5 | % | 82.1 | % | 89.9 | % | 78.3 | % | 89.8 | % | ||||||||||||||||
CAY P&C Combined ratio ex CATs | ||||||||||||||||||||||||||||
Loss and loss expense ratio, adjusted | B/F | 64.5 | % | 54.7 | % | 81.8 | % | 51.5 | % | 50.6 | % | 59.7 | % | |||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted | D/F | 22.5 | % | 26.1 | % | 6.0 | % | 39.1 | % | 30.5 | % | 28.3 | % | |||||||||||||||
CAY P&C Combined ratio ex CATs | 87.0 | % | 80.8 | % | 87.8 | % | 90.6 | % | 81.1 | % | 88.0 | % | ||||||||||||||||
Combined ratio | ||||||||||||||||||||||||||||
Combined ratio | 89.8 | % | ||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives | — | |||||||||||||||||||||||||||
P&C Combined ratio | 89.8 | % | ||||||||||||||||||||||||||
Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. |
Other Income and Expense |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Equity in net income (loss) of partially-owned entities (1) | $ | 479 | $ | 81 | $ | 435 | $ | 353 | |||||||||||||||
Gains (losses) from fair value changes in separate account assets (2) | 24 | (7) | 8 | 20 | |||||||||||||||||||
Federal excise and capital taxes | (4) | (5) | (16) | (17) | |||||||||||||||||||
Other | (14) | (12) | (55) | (30) | |||||||||||||||||||
Total | $ | 485 | $ | 57 | $ | 372 | $ | 326 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Equity in net (income) loss of partially-owned entities | $ | (81 | ) | $ | (178 | ) | $ | (353 | ) | $ | (354 | ) | |||
(Gains) losses from fair value changes in separate account assets (1) | 7 | 14 | (20 | ) | 18 | ||||||||||
Federal excise and capital taxes | 5 | 7 | 17 | 14 | |||||||||||
Other | 12 | 12 | 30 | 15 | |||||||||||
Other (income) expense | $ | (57 | ) | $ | (145 | ) | $ | (326 | ) | $ | (307 | ) |
(2) Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. |
Amortization of purchased intangibles and Other amortization |
Associated with the Chubb Corp Acquisition | |||||||||||||||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Agency distribution relationships and renewal rights | Fair value adjustment on Unpaid losses and loss expenses | Total (1) | Other intangible assets (2) | Total Amortization of purchased intangibles | ||||||||||||||
Fourth quarter of 2019 | $ | 70 | $ | (15 | ) | $ | 55 | $ | 21 | $ | 76 | ||||||||
2020 | 238 | (35 | ) | 203 | 86 | 289 | |||||||||||||
2021 | 215 | (20 | ) | 195 | 85 | 280 | |||||||||||||
2022 | 196 | (15 | ) | 181 | 94 | 275 | |||||||||||||
2023 | 177 | (6 | ) | 171 | 92 | 263 | |||||||||||||
2024 | 159 | (5 | ) | 154 | 86 | 240 | |||||||||||||
Total | $ | 1,055 | $ | (96 | ) | $ | 959 | $ | 464 | $ | 1,423 |
Associated with the Chubb Corp Acquisition | |||||||||||||||||||||||||||||||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Agency distribution relationships and renewal rights | Fair value adjustment on Unpaid losses and loss expenses | Total (1) | Other intangible assets (2) | Total Amortization of purchased intangibles | ||||||||||||||||||||||||||||||
Fourth quarter of 2020 | $ | 60 | $ | (9) | $ | 51 | $ | 22 | $ | 73 | |||||||||||||||||||||||||
2021 | 216 | (20) | 196 | 86 | 282 | ||||||||||||||||||||||||||||||
2022 | 196 | (14) | 182 | 98 | 280 | ||||||||||||||||||||||||||||||
2023 | 177 | (7) | 170 | 93 | 263 | ||||||||||||||||||||||||||||||
2024 | 160 | (5) | 155 | 87 | 242 | ||||||||||||||||||||||||||||||
2025 | 144 | (6) | 138 | 86 | 224 | ||||||||||||||||||||||||||||||
Total | $ | 953 | $ | (61) | $ | 892 | $ | 472 | $ | 1,364 |
For the Years Ending December 31 (in millions of U.S. dollars) | Reduction to deferred tax liability associated with intangible assets | ||||
Fourth quarter of 2020 | $ | 18 | |||
2021 | 67 | ||||
2022 | 65 | ||||
2023 | 60 | ||||
2024 | 55 | ||||
2025 | 51 | ||||
Total | $ | 316 |
For the Years Ending December 31 (in millions of U.S. dollars) | Reduction to deferred tax liability associated with intangible assets | ||
Fourth quarter of 2019 | $ | 20 | |
2020 | 72 | ||
2021 | 67 | ||
2022 | 65 | ||
2023 | 60 | ||
2024 | 55 | ||
Total | $ | 339 |
Amortization (expense) benefit of the fair value adjustment on | |||||||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Acquired invested assets (1) | Assumed long-term debt (2) | |||||||||
Fourth quarter of 2020 | $ | (30) | $ | 6 | |||||||
2021 | (110) | 21 | |||||||||
2022 | (99) | 21 | |||||||||
2023 | — | 21 | |||||||||
2024 | — | 21 | |||||||||
2025 | — | 21 | |||||||||
Total | $ | (239) | $ | 111 |
Amortization (expense) benefit of the fair value adjustment on | |||||||
For the Years Ending December 31 (in millions of U.S. dollars) | Acquired invested assets (1) | Assumed long-term debt (2) | |||||
Fourth quarter of 2019 | $ | (35 | ) | $ | 6 | ||
2020 | (135 | ) | 21 | ||||
2021 | (105 | ) | 21 | ||||
2022 | (92 | ) | 21 | ||||
2023 | — | 21 | |||||
2024 | — | 21 | |||||
Total | $ | (367 | ) | $ | 111 |
(2)Recorded as a reduction to Interest expense in the Consolidated statements of operations. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Fixed maturities (1) | $ | 826 | $ | 862 | $ | 2,487 | $ | 2,533 | ||||||||||||
Short-term investments | 11 | 21 | 39 | 67 | ||||||||||||||||
Other interest income | 4 | 7 | 16 | 19 | ||||||||||||||||
Equity securities | 24 | 6 | 57 | 22 | ||||||||||||||||
Other investments | 18 | 20 | 59 | 57 | ||||||||||||||||
Gross investment income | 883 | 916 | 2,658 | 2,698 | ||||||||||||||||
Investment expenses | (43) | (43) | (130) | (130) | ||||||||||||||||
Net investment income | $ | 840 | $ | 873 | $ | 2,528 | $ | 2,568 | ||||||||||||
(1) Includes amortization expense related to fair value adjustment on acquired invested assets related to the Chubb Corp acquisition | $ | (28) | $ | (37) | $ | (90) | $ | (126) | ||||||||||||
Estimated Interest Expense | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
(in millions of U.S. dollars) | 2019 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||
Fixed interest expense based on outstanding debt | $ | 124 | $ | 123 | $ | 120 | $ | 120 | $ | 487 | |||||||||
Variable interest expense based on expected usage | 21 | 22 | 23 | 19 | 85 | ||||||||||||||
Adjusted interest expense | $ | 145 | $ | 145 | $ | 143 | $ | 139 | $ | 572 | |||||||||
Amortization of the fair value of debt related to the Chubb Corp acquisition | (5 | ) | (5 | ) | (5 | ) | (6 | ) | (21 | ) | |||||||||
Total interest expense, including amortization of the fair value of debt | $ | 140 | $ | 140 | $ | 138 | $ | 133 | $ | 551 |
Actual Interest Expense | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
(in millions of U.S. dollars) | 2018 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||
Fixed interest expense based on outstanding debt | $ | 140 | $ | 131 | $ | 125 | $ | 124 | $ | 520 | |||||||||
Variable interest expense | 29 | 46 | 45 | 34 | 154 | ||||||||||||||
Adjusted interest expense | $ | 169 | $ | 177 | $ | 170 | $ | 158 | $ | 674 | |||||||||
Amortization of the fair value of debt related to the Chubb Corp acquisition | (12 | ) | (10 | ) | (6 | ) | (5 | ) | (33 | ) | |||||||||
Total interest expense, including amortization of the fair value of debt | $ | 157 | $ | 167 | $ | 164 | $ | 153 | $ | 641 |
Three Months Ended | Nine Months Ended | |||||||||||||
September 30 | September 30 | |||||||||||||
(in millions of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||
Fixed maturities (1) | $ | 862 | $ | 779 | $ | 2,533 | $ | 2,329 | ||||||
Short-term investments | 21 | 26 | 67 | 66 | ||||||||||
Other interest income (2) | 7 | 32 | 19 | 98 | ||||||||||
Equity securities | 6 | 7 | 22 | 26 | ||||||||||
Other investments | 20 | 21 | 57 | 64 | ||||||||||
Gross investment income | 916 | 865 | 2,698 | 2,583 | ||||||||||
Investment expenses | (43 | ) | (42 | ) | (130 | ) | (126 | ) | ||||||
Net investment income | $ | 873 | $ | 823 | $ | 2,568 | $ | 2,457 | ||||||
(1) Includes amortization expense related to fair value adjustment on acquired invested assets related to the Chubb Corp acquisition | $ | (37 | ) | $ | (60 | ) | $ | (126 | ) | $ | (193 | ) | ||
(2) Other interest income includes interest earned from operating cash held outside the investment portfolio and also cash held in our global multi-currency notional cash pooling programs. Other interest income fluctuates based on changing interest rates and cash balances. |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||
(in millions of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Total mark-to-market gain on private equity, pre-tax | $ | 436 | $ | 34 | $ | 229 | $ | 227 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31 | June 30 | September 30 | September 30 | ||||||||||||
(in millions of U.S. dollars) | 2019 | 2019 | 2019 | 2019 | |||||||||||
Total mark-to-market on private equity, pre-tax | $ | (47 | ) | $ | 240 | $ | 34 | $ | 227 |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | December 31 | |||||||||||||||
(in millions of U.S. dollars) | 2018 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||
Total mark-to-market on private equity, pre-tax | $ | 74 | $ | 86 | $ | 157 | $ | (19 | ) | $ | 298 |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | |||||||||||||||||
Fixed maturities | $ | (11 | ) | $ | 705 | $ | 694 | $ | (38 | ) | $ | (213 | ) | $ | (251 | ) | |||||||
Fixed income and equity derivatives | (97 | ) | — | (97 | ) | 37 | — | 37 | |||||||||||||||
Public equity | 24 | — | 24 | 48 | — | 48 | |||||||||||||||||
Mark-to-market on public equity | (21 | ) | — | (21 | ) | (13 | ) | — | (13 | ) | |||||||||||||
Private equity | (2 | ) | — | (2 | ) | — | — | — | |||||||||||||||
Mark-to-market on private equity (1) | (2 | ) | — | (2 | ) | 5 | — | 5 | |||||||||||||||
Total investment portfolio (2) | (109 | ) | 705 | 596 | 39 | (213 | ) | (174 | ) | ||||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | (112 | ) | — | (112 | ) | (46 | ) | — | (46 | ) | |||||||||||||
Other derivatives | (14 | ) | — | (14 | ) | (8 | ) | — | (8 | ) | |||||||||||||
Foreign exchange | 84 | (193 | ) | (109 | ) | 39 | (482 | ) | (443 | ) | |||||||||||||
Other | (4 | ) | (17 | ) | (21 | ) | (5 | ) | (21 | ) | (26 | ) | |||||||||||
Net gains (losses), pre-tax | $ | (155 | ) | $ | 495 | $ | 340 | $ | 19 | $ | (716 | ) | $ | (697 | ) |
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Net Impact | |||||||||||||||||
Fixed maturities | $ | (43 | ) | $ | 3,834 | $ | 3,791 | $ | (142 | ) | $ | (1,921 | ) | $ | (2,063 | ) | |||||||
Fixed income and equity derivatives | (408 | ) | — | (408 | ) | 78 | — | 78 | |||||||||||||||
Public equity | 57 | — | 57 | 63 | — | 63 | |||||||||||||||||
Mark-to-market on public equity | 9 | — | 9 | (41 | ) | — | (41 | ) | |||||||||||||||
Private equity | (4 | ) | — | (4 | ) | — | — | — | |||||||||||||||
Mark-to-market on private equity (1) | (14 | ) | — | (14 | ) | 23 | — | 23 | |||||||||||||||
Total investment portfolio (2) | (403 | ) | 3,834 | 3,431 | (19 | ) | (1,921 | ) | (1,940 | ) | |||||||||||||
Variable annuity reinsurance derivative transactions, net of applicable hedges | (146 | ) | — | (146 | ) | 11 | — | 11 | |||||||||||||||
Other derivatives | (8 | ) | — | (8 | ) | 2 | — | 2 | |||||||||||||||
Foreign exchange | 86 | (143 | ) | (57 | ) | 102 | (659 | ) | (557 | ) | |||||||||||||
Other | (4 | ) | (62 | ) | (66 | ) | (61 | ) | (61 | ) | (122 | ) | |||||||||||
Net gains (losses), pre-tax | $ | (475 | ) | $ | 3,629 | $ | 3,154 | $ | 35 | $ | (2,641 | ) | $ | (2,606 | ) |
September 30, 2019 | December 31, 2018 | ||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost/ Amortized Cost | Fair Value | Cost/ Amortized Cost | |||||||||||
Fixed maturities available for sale | $ | 85,044 | $ | 82,036 | $ | 78,470 | $ | 79,323 | |||||||
Fixed maturities held to maturity | 13,096 | 12,622 | 13,259 | 13,435 | |||||||||||
Short-term investments | 2,835 | 2,838 | 3,016 | 3,016 | |||||||||||
100,975 | 97,496 | 94,745 | 95,774 | ||||||||||||
Equity securities | 722 | 722 | 770 | 770 | |||||||||||
Other investments | 5,955 | 5,955 | 5,277 | 5,277 | |||||||||||
Total investments | $ | 107,652 | $ | 104,173 | $ | 100,792 | $ | 101,821 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
(in millions of U.S. dollars) | Fair Value | Cost/ Amortized Cost, Net | Fair Value | Cost/ Amortized Cost | |||||||||||||||||||
Fixed maturities available for sale | $ | 89,852 | $ | 85,167 | $ | 85,488 | $ | 82,580 | |||||||||||||||
Fixed maturities held to maturity | 12,473 | 11,651 | 13,005 | 12,581 | |||||||||||||||||||
Short-term investments | 4,660 | 4,662 | 4,291 | 4,291 | |||||||||||||||||||
106,985 | 101,480 | 102,784 | 99,452 | ||||||||||||||||||||
Equity securities | 3,088 | 3,088 | 812 | 812 | |||||||||||||||||||
Other investments | 6,796 | 6,796 | 6,062 | 6,062 | |||||||||||||||||||
Total investments | $ | 116,869 | $ | 111,364 | $ | 109,658 | $ | 106,326 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Fair Value | % of Total | Fair Value | % of Total | |||||||||||||||||||
U.S. Treasury / Agency | $ | 4,100 | 4 | % | $ | 4,630 | 5 | % | |||||||||||||||
Corporate and asset-backed securities | 37,712 | 35 | % | 34,259 | 33 | % | |||||||||||||||||
Mortgage-backed securities | 21,590 | 20 | % | 21,588 | 21 | % | |||||||||||||||||
Municipal | 12,267 | 12 | % | 12,824 | 12 | % | |||||||||||||||||
Non-U.S. | 26,656 | 25 | % | 25,192 | 25 | % | |||||||||||||||||
Short-term investments | 4,660 | 4 | % | 4,291 | 4 | % | |||||||||||||||||
Total | $ | 106,985 | 100 | % | $ | 102,784 | 100 | % | |||||||||||||||
AAA | $ | 16,177 | 15 | % | $ | 15,714 | 15 | % | |||||||||||||||
AA | 36,759 | 34 | % | 37,504 | 37 | % | |||||||||||||||||
A | 19,359 | 18 | % | 19,236 | 19 | % | |||||||||||||||||
BBB | 17,009 | 16 | % | 13,650 | 13 | % | |||||||||||||||||
BB | 9,609 | 9 | % | 9,474 | 9 | % | |||||||||||||||||
B | 7,466 | 7 | % | 6,897 | 7 | % | |||||||||||||||||
Other | 606 | 1 | % | 309 | — | ||||||||||||||||||
Total | $ | 106,985 | 100 | % | $ | 102,784 | 100 | % |
September 30, 2019 | December 31, 2018 | ||||||||||||
(in millions of U.S. dollars, except for percentages) | Market Value | % of Total | Market Value | % of Total | |||||||||
Treasury / Agency | $ | 4,840 | 5 | % | $ | 5,327 | 6 | % | |||||
Corporate and asset-backed | 33,881 | 34 | % | 29,091 | 31 | % | |||||||
Mortgage-backed | 21,488 | 21 | % | 18,026 | 19 | % | |||||||
Municipal | 13,369 | 13 | % | 16,327 | 17 | % | |||||||
Non-U.S. | 24,562 | 24 | % | 22,958 | 24 | % | |||||||
Short-term investments | 2,835 | 3 | % | 3,016 | 3 | % | |||||||
Total | $ | 100,975 | 100 | % | $ | 94,745 | 100 | % | |||||
AAA | $ | 14,696 | 15 | % | $ | 14,571 | 15 | % | |||||
AA | 37,752 | 37 | % | 36,715 | 39 | % | |||||||
A | 18,977 | 19 | % | 17,253 | 18 | % | |||||||
BBB | 13,228 | 13 | % | 12,035 | 13 | % | |||||||
BB | 9,317 | 9 | % | 8,363 | 9 | % | |||||||
B | 6,739 | 7 | % | 5,596 | 6 | % | |||||||
Other | 266 | — | 212 | — | |||||||||
Total | $ | 100,975 | 100 | % | $ | 94,745 | 100 | % |
(in millions of U.S. dollars) | Fair Value | ||||
Wells Fargo & Co | $ | 762 | |||
Bank of America Corp | 670 | ||||
JP Morgan Chase & Co | 658 | ||||
Comcast Corp | 511 | ||||
Morgan Stanley | 459 | ||||
Citigroup Inc | 441 | ||||
Verizon Communications Inc | 430 | ||||
AT&T Inc | 393 | ||||
Goldman Sachs Group Inc | 377 | ||||
HSBC Holdings Plc | 376 |
(in millions of U.S. dollars) | Market Value | ||
Wells Fargo & Co | $ | 630 | |
JP Morgan Chase & Co | 576 | ||
Bank of America Corp | 558 | ||
Comcast Corp | 459 | ||
HSBC Holdings Plc | 385 | ||
AT&T Inc | 384 | ||
Verizon Communications Inc | 378 | ||
Citigroup Inc | 359 | ||
Morgan Stanley | 337 | ||
Goldman Sachs Group Inc | 337 |
S&P Credit Rating | Market Value | Amortized Cost | |||||||||||||||||||||||||
September 30, 2019 (in millions of U.S. dollars) | AAA | AA | A | BBB | BB and below | Total | Total | ||||||||||||||||||||
Agency residential mortgage-backed (RMBS) | $ | 191 | $ | 17,606 | $ | — | $ | — | $ | — | $ | 17,797 | $ | 17,257 | |||||||||||||
Non-agency RMBS | 132 | 48 | 74 | 17 | 11 | 282 | 280 | ||||||||||||||||||||
Commercial mortgage-backed | 3,031 | 247 | 125 | 6 | — | 3,409 | 3,311 | ||||||||||||||||||||
Total mortgage-backed securities | $ | 3,354 | $ | 17,901 | $ | 199 | $ | 23 | $ | 11 | $ | 21,488 | $ | 20,848 |
S&P Credit Rating | Fair Value | Amortized Cost, Net | |||||||||||||||||||||||||||||||||||||||
September 30, 2020 (in millions of U.S. dollars) | AAA | AA | A | BBB | BB and below | Total | Total | ||||||||||||||||||||||||||||||||||
Agency residential mortgage-backed (RMBS) | $ | 127 | $ | 17,765 | $ | — | $ | — | $ | — | $ | 17,892 | $ | 16,845 | |||||||||||||||||||||||||||
Non-agency RMBS | 147 | 43 | 78 | 16 | 10 | 294 | 290 | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 2,949 | 303 | 137 | 13 | 2 | 3,404 | 3,240 | ||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | $ | 3,223 | $ | 18,111 | $ | 215 | $ | 29 | $ | 12 | $ | 21,590 | $ | 20,375 |
(in millions of U.S. dollars) | Market Value | Amortized Cost | |||||
Republic of Korea | $ | 1,056 | $ | 926 | |||
United Kingdom | 893 | 860 | |||||
Canada | 848 | 833 | |||||
Federative Republic of Brazil | 732 | 709 | |||||
Kingdom of Thailand | 644 | 544 | |||||
Province of Ontario | 632 | 616 | |||||
United Mexican States | 551 | 538 | |||||
Province of Quebec | 496 | 480 | |||||
Commonwealth of Australia | 356 | 301 | |||||
French Republic | 312 | 268 | |||||
Other Non-U.S. Government Securities (1) | 4,851 | 4,628 | |||||
Total | $ | 11,371 | $ | 10,703 |
(in millions of U.S. dollars) | Fair Value | Amortized Cost, Net | |||||||||
Republic of Korea | $ | 1,058 | $ | 935 | |||||||
Canada | 942 | 896 | |||||||||
United Kingdom | 905 | 868 | |||||||||
Province of Ontario | 681 | 637 | |||||||||
Kingdom of Thailand | 612 | 528 | |||||||||
Province of Quebec | 539 | 501 | |||||||||
Federative Republic of Brazil | 512 | 502 | |||||||||
Commonwealth of Australia | 454 | 397 | |||||||||
United Mexican States | 453 | 434 | |||||||||
Socialist Republic of Vietnam | 380 | 264 | |||||||||
Other Non-U.S. Government Securities | 5,486 | 5,188 | |||||||||
Total | $ | 12,022 | $ | 11,150 |
(in millions of U.S. dollars) | Fair Value | Amortized Cost, Net | |||||||||
United Kingdom | $ | 2,288 | $ | 2,179 | |||||||
Canada | 1,833 | 1,744 | |||||||||
France | 1,189 | 1,126 | |||||||||
United States (1) | 1,155 | 1,114 | |||||||||
Australia | 887 | 839 | |||||||||
Netherlands | 617 | 580 | |||||||||
Japan | 581 | 557 | |||||||||
Switzerland | 566 | 527 | |||||||||
Germany | 536 | 511 | |||||||||
China | 443 | 424 | |||||||||
Other Non-U.S. Corporate Securities | 4,539 | 4,364 | |||||||||
Total | $ | 14,634 | $ | 13,965 |
(in millions of U.S. dollars) | Market Value | Amortized Cost | |||||
United Kingdom | $ | 2,148 | $ | 2,061 | |||
Canada | 1,690 | 1,642 | |||||
United States (1) | 1,144 | 1,101 | |||||
France | 1,048 | 998 | |||||
Australia | 826 | 788 | |||||
Netherlands | 654 | 624 | |||||
Japan | 580 | 568 | |||||
Germany | 539 | 514 | |||||
Switzerland | 485 | 463 | |||||
China | 355 | 344 | |||||
Other Non-U.S. Corporate Securities | 3,722 | 3,569 | |||||
Total | $ | 13,191 | $ | 12,672 |
Critical Accounting Estimates |
September 30, 2019 | December 31, 2018 | |||||||||||||||
(in millions of U.S. dollars) | Net Reinsurance Recoverable (1) | Provision for Uncollectible | Net Reinsurance Recoverable (1) | Provision for Uncollectible | ||||||||||||
Reinsurance recoverable on unpaid losses and loss expenses | $ | 14,332 | $ | 250 | $ | 14,689 | $ | 251 | ||||||||
Reinsurance recoverable on paid losses and loss expenses | 1,195 | 70 | 1,304 | 72 | ||||||||||||
Reinsurance recoverable on losses and loss expenses | $ | 15,527 | $ | 320 | $ | 15,993 | $ | 323 | ||||||||
Reinsurance recoverable on policy benefits | $ | 199 | $ | 4 | $ | 202 | $ | 4 |
(in millions of U.S. dollars) | Gross Losses | Reinsurance Recoverable (1) | Net Losses | ||||||||||||||
Balance at December 31, 2019 | $ | 62,690 | $ | 14,181 | $ | 48,509 | |||||||||||
Losses and loss expenses incurred | 20,682 | 3,785 | 16,897 | ||||||||||||||
Losses and loss expenses paid | (15,561) | (3,198) | (12,363) | ||||||||||||||
Other (including foreign exchange translation) | 94 | (1) | 95 | ||||||||||||||
Balance at September 30, 2020 | $ | 67,905 | $ | 14,767 | $ | 53,138 |
(in millions of U.S. dollars) | Gross Losses | Reinsurance Recoverable (1) | Net Losses | ||||||||
Balance at December 31, 2018 | $ | 62,960 | $ | 14,689 | $ | 48,271 | |||||
Losses and loss expenses incurred | 17,802 | 3,937 | 13,865 | ||||||||
Losses and loss expenses paid | (17,529 | ) | (4,235 | ) | (13,294 | ) | |||||
Foreign currency revaluation and other | (221 | ) | (59 | ) | (162 | ) | |||||
Balance at September 30, 2019 | $ | 63,012 | $ | 14,332 | $ | 48,680 |
Catastrophe management |
Modeled Net Probable Maximum Loss (PML) Pre-tax | |||||||||||||||||||||||||||||||||||
Worldwide (1) | U.S. Hurricane (2) | California Earthquake (3) | |||||||||||||||||||||||||||||||||
Annual Aggregate | Annual Aggregate | Single Occurrence | |||||||||||||||||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Chubb | % of Total Shareholders’ Equity | Chubb | % of Total Shareholders’ Equity | Chubb | % of Total Shareholders’ Equity | |||||||||||||||||||||||||||||
1-in-10 | $ | 1,880 | 3.3 | % | $ | 1,096 | 1.9 | % | $ | 141 | 0.2 | % | |||||||||||||||||||||||
1-in-100 | $ | 3,963 | 7.0 | % | $ | 2,720 | 4.8 | % | $ | 1,306 | 2.3 | % | |||||||||||||||||||||||
1-in-250 | $ | 6,577 | 11.7 | % | $ | 4,929 | 8.7 | % | $ | 1,478 | 2.6 | % |
Modeled Net Probable Maximum Loss (PML) | ||||||||||||||||||||
Worldwide (1) | U.S. Hurricane (2) | California Earthquake (3) | ||||||||||||||||||
Annual Aggregate | Annual Aggregate | Single Occurrence | ||||||||||||||||||
(in millions of U.S. dollars, except for percentages) | Chubb | % of Total Shareholders’ Equity | Chubb | % of Total Shareholders’ Equity | Chubb | % of Total Shareholders’ Equity | ||||||||||||||
1-in-10 | $ | 1,866 | 3.4 | % | $ | 1,076 | 2.0 | % | $ | 127 | 0.2 | % | ||||||||
1-in-100 | $ | 3,772 | 6.9 | % | $ | 2,671 | 4.9 | % | $ | 1,340 | 2.5 | % | ||||||||
1-in-250 | $ | 6,140 | 11.3 | % | $ | 4,681 | 8.6 | % | $ | 1,521 | 2.8 | % |
(2) U.S. Hurricane losses include losses from wind and storm-surge and exclude rainfall. (3) California earthquakes include fire-following perils. |
Natural Catastrophe Property Reinsurance Program |
Loss Location | Layer of Loss | Comments | Notes | ||||||||||||||
United States (excluding Alaska and Hawaii) | $0 million – $1.0 billion | Losses retained by Chubb | (a) | ||||||||||||||
United States (excluding Alaska and Hawaii) | $1.0 billion – $ | All natural perils and terrorism | (b) | ||||||||||||||
United States (excluding Alaska and Hawaii) | $ $ | All natural perils and terrorism | (c) | ||||||||||||||
United States (excluding Alaska and Hawaii) | $ $3.5 billion | All natural perils and terrorism | (d) | ||||||||||||||
International (including Alaska and Hawaii) | $0 million – $175 million | Losses retained by Chubb | (a) | ||||||||||||||
International (including Alaska and Hawaii) | $175 million – $1.175 billion | All natural perils and terrorism | (c) | ||||||||||||||
Alaska, Hawaii, and Canada | $1.175 billion – $ | All natural perils and terrorism | (d) |
Liquidity |
Capital Resources |
September 30 | December 31 | ||||||||||
(in millions of U.S. dollars, except for ratios) | 2020 | 2019 | |||||||||
Short-term debt | $ | 1,300 | $ | 1,299 | |||||||
Long-term debt | 14,830 | 13,559 | |||||||||
Total financial debt | 16,130 | 14,858 | |||||||||
Trust preferred securities | 308 | 308 | |||||||||
Total shareholders’ equity | 56,413 | 55,331 | |||||||||
Total capitalization | $ | 72,851 | $ | 70,497 | |||||||
Ratio of financial debt to total capitalization | 22.1 | % | 21.1 | % | |||||||
Ratio of financial debt plus trust preferred securities to total capitalization | 22.5 | % | 21.5 | % |
September 30 | December 31 | ||||||
(in millions of U.S. dollars, except for ratios) | 2019 | 2018 | |||||
Short-term debt | $ | 10 | $ | 509 | |||
Long-term debt | 13,285 | 12,087 | |||||
Total financial debt | 13,295 | 12,596 | |||||
Trust preferred securities | 308 | 308 | |||||
Total shareholders’ equity | 54,572 | 50,312 | |||||
Total capitalization | $ | 68,175 | $ | 63,216 | |||
Ratio of financial debt to total capitalization | 19.5 | % | 19.9 | % | |||
Ratio of financial debt plus trust preferred securities to total capitalization | 20.0 | % | 20.4 | % |
Shareholders of record as of: | Dividends paid as of: | ||||||||||||||||
December | January | ||||||||||||||||
$0.75 (CHF | |||||||||||||||||
$0.75 (CHF | |||||||||||||||||
June 19, 2020 | July 10, 2020 | $0.78 (CHF 0.75) | |||||||||||||||
September 18, 2020 | October 9, 2020 | $0.78 (CHF 0.71) |
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk |
89 •No changes to the benefit ratio used to establish benefit reserves at September 30, 2020. • |
•Our liabilities are sensitive to global equity markets in the following proportions: 75 percent—85 percent U.S. equity, and 15 percent—25 percent international equity. • |
•Our liabilities are also sensitive • |
•The hedge sensitivity is from September 30, 2020 market levels and only applicable to the equity and interest rate sensitivities table below. • |
Sensitivities to equity and interest rate movements | ||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Worldwide Equity Shock | |||||||||||||||||||||||||||||||||||||
Interest Rate Shock | +10% | Flat | -10% | -20% | -30% | -40% | ||||||||||||||||||||||||||||||||
+100 bps | (Increase)/decrease in Gross FVL | $ | 386 | $ | 243 | $ | 80 | $ | (105) | $ | (313) | $ | (545) | |||||||||||||||||||||||||
Increase/(decrease) in hedge value | (65) | — | 65 | 130 | 195 | 259 | ||||||||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | 321 | $ | 243 | $ | 145 | $ | 25 | $ | (118) | $ | (286) | ||||||||||||||||||||||||||
Flat | (Increase)/decrease in Gross FVL | $ | 157 | $ | — | $ | (177) | $ | (375) | $ | (596) | $ | (834) | |||||||||||||||||||||||||
Increase/(decrease) in hedge value | (65) | — | 65 | 130 | 195 | 259 | ||||||||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | 92 | $ | — | $ | (112) | $ | (245) | $ | (401) | $ | (575) | ||||||||||||||||||||||||||
-100 bps | (Increase)/decrease in Gross FVL | $ | (52) | $ | (220) | $ | (406) | $ | (618) | $ | (847) | $ | (1,097) | |||||||||||||||||||||||||
Increase/(decrease) in hedge value | (65) | — | 65 | 130 | 195 | 259 | ||||||||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | (117) | $ | (220) | $ | (341) | $ | (488) | $ | (652) | $ | (838) | ||||||||||||||||||||||||||
Sensitivities to Other Economic Variables | AA-rated Credit Spreads | Interest Rate Volatility | Equity Volatility | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +100 bps | -100 bps | +2% | -2% | +2% | -2% | ||||||||||||||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 87 | $ | (96) | $ | (1) | $ | 1 | $ | (9) | $ | 9 | ||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | 87 | $ | (96) | $ | (1) | $ | 1 | $ | (9) | $ | 9 | ||||||||||||||||||||||||||
Sensitivities to Actuarial Assumptions | Mortality | |||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +20% | +10% | -10% | -20% | ||||||||||||||||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 21 | $ | 11 | $ | (11) | $ | (22) | ||||||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | 21 | $ | 11 | $ | (11) | $ | (22) | ||||||||||||||||||||||||||||||
Lapses | ||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 131 | $ | 68 | $ | (73) | $ | (153) | ||||||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | 131 | $ | 68 | $ | (73) | $ | (153) | ||||||||||||||||||||||||||||||
Annuitization | ||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | (606) | $ | (322) | $ | 372 | $ | 794 | ||||||||||||||||||||||||||||||
Increase/(decrease) in net income | $ | (606) | $ | (322) | $ | 372 | $ | 794 |
Equity Shock | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +20 | % | Flat | -20 | % | -40 | % | -60 | % | -80 | % | ||||||||||||||||||||||||
GMDB net amount at risk | $ | 265 | $ | 272 | $ | 479 | $ | 801 | $ | 803 | $ | 678 | |||||||||||||||||||||||
Claims at 100% immediate mortality | 161 | 186 | 174 | 159 | 142 | 125 |
Equity Shock | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +20 | % | Flat | -20 | % | -40 | % | -60 | % | -80 | % | ||||||||||||||||||||||||
GLB net amount at risk | $ | 1,119 | $ | 1,581 | $ | 2,099 | $ | 2,616 | $ | 3,022 | $ | 3,324 |
Equity Shock | |||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | +20 | % | Flat | -20 | % | -40 | % | -60 | % | -80 | % | ||||||||||||||||||||||||
GMDB net amount at risk | $ | 43 | $ | 51 | $ | 62 | $ | 73 | $ | 83 | $ | 91 | |||||||||||||||||||||||
GLB net amount at risk | 381 | 490 | 626 | 775 | 926 | 993 | |||||||||||||||||||||||||||||
Claims at 100% immediate mortality | 35 | 34 | 34 | 34 | 34 | 34 |
Sensitivities to equity and interest rate movements | ||||||||||||||||||||||||
(in millions of U.S. dollars) | Worldwide Equity Shock | |||||||||||||||||||||||
Interest Rate Shock | +10% | Flat | -10% | -20% | -30% | -40% | ||||||||||||||||||
+100 bps | (Increase)/decrease in Gross FVL | $ | 353 | $ | 216 | $ | 57 | $ | (128 | ) | $ | (338 | ) | $ | (568 | ) | ||||||||
Increase/(decrease) in hedge value | (58 | ) | — | 58 | 115 | 173 | 231 | |||||||||||||||||
Increase/(decrease) in net income | $ | 295 | $ | 216 | $ | 115 | $ | (13 | ) | $ | (165 | ) | $ | (337 | ) | |||||||||
Flat | (Increase)/decrease in Gross FVL | $ | 157 | $ | — | $ | (180 | ) | $ | (386 | ) | $ | (614 | ) | $ | (856 | ) | |||||||
Increase/(decrease) in hedge value | (58 | ) | — | 58 | 115 | 173 | 231 | |||||||||||||||||
Increase/(decrease) in net income | $ | 99 | $ | — | $ | (122 | ) | $ | (271 | ) | $ | (441 | ) | $ | (625 | ) | ||||||||
-100 bps | (Increase)/decrease in Gross FVL | $ | (77 | ) | $ | (248 | ) | $ | (442 | ) | $ | (658 | ) | $ | (891 | ) | $ | (1,130 | ) | |||||
Increase/(decrease) in hedge value | (58 | ) | — | 58 | 115 | 173 | 231 | |||||||||||||||||
Increase/(decrease) in net income | $ | (135 | ) | $ | (248 | ) | $ | (384 | ) | $ | (543 | ) | $ | (718 | ) | $ | (899 | ) | ||||||
Sensitivities to Other Economic Variables | AA-rated Credit Spreads | Interest Rate Volatility | Equity Volatility | |||||||||||||||||||||
(in millions of U.S. dollars) | +100 bps | -100 bps | +2% | -2% | +2% | -2% | ||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 74 | $ | (82 | ) | $ | — | $ | — | $ | (8 | ) | $ | 7 | ||||||||||
Increase/(decrease) in net income | $ | 74 | $ | (82 | ) | $ | — | $ | — | $ | (8 | ) | $ | 7 | ||||||||||
Sensitivities to Actuarial Assumptions | Mortality | |||||||||||||||||||||||
(in millions of U.S. dollars) | +20% | +10% | -10% | -20% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 20 | $ | 10 | $ | (10 | ) | $ | (20 | ) | ||||||||||||||
Increase/(decrease) in net income | $ | 20 | $ | 10 | $ | (10 | ) | $ | (20 | ) | ||||||||||||||
Lapses | ||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | 102 | $ | 53 | $ | (58 | ) | $ | (122 | ) | ||||||||||||||
Increase/(decrease) in net income | $ | 102 | $ | 53 | $ | (58 | ) | $ | (122 | ) | ||||||||||||||
Annuitization | ||||||||||||||||||||||||
(in millions of U.S. dollars) | +50% | +25% | -25% | -50% | ||||||||||||||||||||
(Increase)/decrease in Gross FVL | $ | (534 | ) | $ | (283 | ) | $ | 319 | $ | 602 | ||||||||||||||
Increase/(decrease) in net income | $ | (534 | ) | $ | (283 | ) | $ | 319 | $ | 602 |
ITEM 4. Controls and Procedures |
ITEM 1. Legal Proceedings |
ITEM 1A. Risk Factors |
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (2) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (2) | |||||||||||||||||||
July 1 through July 31 | 2,259 | $ | 126.65 | — | $ | 1.12 | billion | ||||||||||||||||
August 1 through August 31 | 2,649 | $ | 127.23 | — | $ | 1.12 | billion | ||||||||||||||||
September 1 through September 30 | 1,070 | $ | 125.09 | — | $ | 1.12 | billion | ||||||||||||||||
Total | 5,978 | $ | 126.63 | — |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (2) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (3) | |||||||||
July 1 through July 31 | 792,334 | $ | 150.49 | 790,417 | $ | 617 | million | ||||||
August 1 through August 31 | 1,279,697 | $ | 154.63 | 1,270,000 | $ | 420 | million | ||||||
September 1 through September 30 | 1,019,878 | $ | 159.43 | 1,019,201 | $ | 258 | million | ||||||
Total | 3,091,909 | $ | 155.15 | 3,079,618 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Original Number | Date Filed | Filed Herewith | |||||||||||||||||||||||||||
8-K | 3.1 | August 4, 2020 | ||||||||||||||||||||||||||||||
8-K | 3.1 | November 21, 2016 | ||||||||||||||||||||||||||||||
8-K | 4.1 | August 4, 2020 | ||||||||||||||||||||||||||||||
8-K | 3.1 | November 21, 2016 | ||||||||||||||||||||||||||||||
8-K | 4.1 | September 17, 2020 | ||||||||||||||||||||||||||||||
8-K | 4.2 | September 17, 2020 | ||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||
101.1 | The following financial information from Chubb Limited’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 formatted in Inline XBRL: (i) Consolidated Balance Sheets at September 30, 2020, and December 31, 2019; (ii) Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2020 and 2019; (iii) Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2020 and 2019; (iv) Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019; and (v) Notes to Consolidated Financial Statements | X | ||||||||||||||||||||||||||||||
104.1 | The Cover Page Interactive Data File formatted in Inline XBRL (The cover page XBRL tags are embedded in the Inline XBRL document and included in Exhibit 101.1) | |||||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||
Exhibit Number | Exhibit Description | Form | Original Number | Date Filed | Filed Herewith | |||||
8-K | 3.1 | May 18, 2018 | ||||||||
8-K | 3.1 | November 21, 2016 | ||||||||
8-K | 4.1 | May 18, 2018 | ||||||||
8-K | 3.1 | November 21, 2016 | ||||||||
X | ||||||||||
X | ||||||||||
X | ||||||||||
X | ||||||||||
101.1 | The following financial information from Chubb Limited’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 formatted in Inline XBRL: (i) Consolidated Balance Sheets at September 30, 2019, and December 31, 2018; (ii) Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2019 and 2018; (iii) Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2019 and 2018; (iv) Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018; and (v) Notes to Consolidated Financial Statements | X |
CHUBB LIMITED | |||||
(Registrant) | |||||
October 30, 2020 | |||||
/s/ Evan G. Greenberg | |||||
Evan G. Greenberg | |||||
Chairman, President and Chief Executive Officer | |||||
October | /s/ Philip V. Bancroft | ||||
Philip V. Bancroft | |||||
Executive Vice President and Chief Financial Officer |