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Item 2. Management’s Discussion and Analysis

2022-04-29 compared with 2021-10-28 · 324 added, 477 removed, 768 unchanged (51% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and nine months ended September 30, 2021.

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three months ended March 31, 2022.

All comparisons in this discussion are to the corresponding prior year period unless otherwise indicated.

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Catastrophe Management

Natural Catastrophe Property Reinsurance Program

Global Property Catastrophe Reinsurance Program

Capital Resources

32 unchanged sentences

• the effects of public company bankruptcies and accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues;

• acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, or announced acquisitions not closing;

risks and uncertainties relating to our planned purchases of additional interests in Huatai Insurance Group Co., Ltd.

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Chubb Limited, which is headquartered in Zurich, Switzerland, and its direct and indirect subsidiaries (collectively, the Chubb Group of Companies, Chubb, we, us, or our) are a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide.

At September 30, 2021, we had total assets of $199 billion and shareholders’ equity of $59 billion.

At March 31, 2022, we had total assets of $198 billion and shareholders’ equity of $57 billion.

Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda.

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For more information on our segments refer to “Segment Information” under Item 1 in our 2021 Form 10-K.

Consolidated Operating Results – Three and Nine Months Ended September 30, 2021 and 2020

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Consolidated Operating Results – Three Months Ended March 31, 2022 and 2021

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 9,199 $ 8,662 6.2 %

Net premiums written - constant dollars (1)

14.2 % 11.1 %

Net premiums earned 8,746 8,221 6.4 %

Net investment income 822 863 (4.8) %

Net realized gains (losses) (21) (141) (85.2) % 833 (1,069) NM

Net realized gains (losses) 101 887 (88.6) %

Total revenues 9,669 9,971 (3.0) %

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Interest expense 132 122 7.4 %

Other (income) expense (763) (485) 57.3 % (2,030) (372) NM

Other (income) expense (310) (490) (36.7) %

Amortization of purchased intangibles 71 72 (2.0) %

Total expenses 7,340 7,333 0.1 %

Income before income tax 2,051 1,336 53.6 % 7,271 1,410 NM

Income before income tax 2,329 2,638 (11.7) %

Income tax expense 355 338 5.2 %

Net income $ 1,833 $ 1,194 53.5 % $ 6,398 $ 1,115 NM

NM – not meaningful

Net income $ 1,974 $ 2,300 (14.2) %

(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.

Financial Highlights for the Three Months Ended September 30, 2021

Financial Highlights for the Three Months Ended March 31, 2022

• Net income was $2.0 billion compared with $2.3 billion in the prior year period.

Net income in the current quarter was driven by strong underwriting results, including growth in net premiums earned and improvements in our loss and loss expense ratios.

Both commercial P&C and consumer lines grew globally, driven by positive rate increases, higher new business, increased exposure and strong renewal retention.

Returns from our private equity investments contributed to the higher net income.

• Total pre-tax and after-tax catastrophe losses were $1.1 billion (12.2 percentage points of the combined ratio) and $943 million, respectively, compared with $925 million (11.3 percentage points of the combined ratio) and $797 million, respectively, in the prior year period.

• Total pre-tax and after-tax favorable prior period development were $321 million (3.6 percentage points of the combined ratio) and $227 million, respectively, compared with favorable prior period development of $146 million (1.8 percentage points of the combined ratio) and $126 million, respectively, in the prior year period.

Net income in the current quarter was driven by strong underwriting results, including growth in net premiums earned and improvements in our combined ratios.

Net income is lower in the current year from lower year-over-year after-tax net realized gains on equity securities of $257 million and a lower gain of $198 million on our variable annuity reinsurance portfolio.

• Consolidated net premiums written were $9.2 billion, up 6.2 percent, or 8.1 percent in constant dollars, primarily from growth in both commercial lines and consumer lines of 7.9 percent and 2.9 percent, respectively, or 9.4 percent and 5.5 percent in constant dollars, respectively.

• Consolidated net premiums earned were $8.7 billion, up 6.4 percent, or 8.0 percent in constant dollars, primarily from growth in both commercial lines and consumer lines of 9.9 percent and 0.2 percent, respectively, or 11.1 percent and 2.7 percent in constant dollars, respectively.

• Total pre-tax and after-tax catastrophe losses were $333 million (4.0 percentage points of the P&C combined ratio) and $290 million, respectively, compared with $700 million (9.1 percentage points of the P&C combined ratio) and $570 million, respectively, in the prior year period.

• Total pre-tax and after-tax favorable prior period development were $240 million (3.2 percentage points of the P&C combined ratio) and $195 million, respectively, compared with $192 million (2.5 percentage points of the P&C combined ratio) and $156 million, respectively, in the prior year period.

• The P&C combined ratio was 84.3 percent compared with 91.8 percent in the prior year period.

P&C current accident year combined ratio excluding catastrophe losses was 84.8 percent compared with 85.7 percent in the prior year period.

P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.5 percent compared with 85.2 percent in the prior year period.

The current year ratios decreased due to underlying loss ratio improvement and the favorable impact of higher net premiums earned on the expense ratio.

The prior year loss ratio was favorably impacted by COVID-related reduced claim frequency primarily in the automobile portfolios in North America and Latin America of 1.0 percentage point.

• Consolidated net premiums written were $10.5 billion, up 15.8 percent, or 14.2 percent in constant dollars, comprising positive growth in both commercial P&C lines and consumer lines of 22.0 percent and 3.1 percent, respectively.

• Consolidated net premiums earned were $10.0 billion, up 14.1 percent, or 12.6 percent in constant dollars, comprising positive growth in both commercial P&C lines and consumer lines of 21.1 percent and 0.8 percent, respectively.

• Net investment income was $866 million compared with $840 million in the prior year period primarily due to higher income received from our private equity partnerships and increased dividends on public equities.

• Shareholders' equity decreased by $744 million in the quarter, primarily reflecting total capital returned to shareholders in the quarter of $1.9 billion, including share repurchases of $1.5 billion, at an average purchase price of $180.23 per share, and dividends of $346 million, and net unrealized losses on investments of $456 million.

Partially offsetting the decrease was net income of $1.8 billion.

• Net investment income was $822 million compared with $863 million in the prior year period, reflecting lower reinvestment rates on new and reinvested fixed maturities.

• Operating cash flow was $2.4 billion for the quarter compared with $2.1 billion in the prior year period.

• Shareholders' equity decreased by $3.0 billion in the quarter, as net income of $2.0 billion was more than offset by net unrealized losses on investments of $3.8 billion after-tax from rising interest rates.

In addition, shareholders' equity reflected total capital returned to shareholders in the quarter of $1.3 billion, including share repurchases of $1.0 billion, at an average purchase price of $205.53 per share, and dividends of $340 million.

Net Premiums Written Three Months Ended

September 30 % Change Nine Months Ended

September 30 %

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

2021 2020 YTD-21 vs.

Commercial casualty $ 1,837 $ 1,649 11.4 % 12.8 %

Workers' compensation 603 563 7.2 % 7.2 %

Professional liability 1,328 1,103 20.4 % 18.2 % 3,681 3,012 22.2 % 19.6 %

Financial lines 1,182 1,090 8.5 % 10.1 %

Surety 153 158 (3.1) % (1.7) %

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(2) For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in Global A&H lines above.

The increase in consolidated net premiums written for the three and nine months ended September 30, 2021 reflects growth across most lines of business, comprising commercial lines growth of 22.0 percent and consumer lines growth of 3.1 percent, driven by higher new business, positive rate increases, increased exposure, and strong renewal retention.

• Commercial casualty grew globally, driven by higher new business and positive rate increases, primarily across North America, Europe, and Asia.

Additionally, there was increased exposure primarily on in-force policies following the adverse impact of prior year exposure adjustments resulting from the COVID-19 pandemic.

• Workers' compensation growth was due to increased exposure primarily on in-force policies following the adverse impact of prior year exposure adjustments resulting from the COVID-19 pandemic.

• Professional liability grew globally, reflecting higher new business, improved retention and positive rate increases in North America, Asia, and Europe.

• Commercial multiple peril increased due to higher new and renewal business, including exposure increases, in North America.

• Property and other short-tail lines grew due to higher new business, improved retention and positive rate increases in Asia, North America, and Europe.

• Personal lines increased globally primarily reflecting new business and positive rate increases in homeowners' lines in North America and Latin America, and growth in specialty lines in Europe and Asia.

Growth was partially offset by declines in automobile lines in North America primarily due to the unfavorable impact of automobile return premiums.

Latin America also had declines in automobile lines for the nine months ended September 30, 2021 as a result of continued reduced exposures from the impact of the COVID-19 pandemic, but began to experience modest growth for the three months ended September 30, 2021.

• Global A&H lines began to experience modest growth for the three months ended September 30, 2021, but was unfavorably impacted from less travel volume and reduced consumer activity in Asia and Latin America for the nine

months ended September 30, 2021.

Our North American Combined Insurance supplemental A&H business decreased due to the adverse impact of the COVID-19 pandemic on face-to-face and worksite sales.

• Growth in our international life operations, principally from new business in Asia and Latin America, was partially offset by declines in our life reinsurance business that has not written new business since 2007.

The increase in consolidated net premiums written for the three months ended March 31, 2022 reflects growth across most lines of business.

Commercial lines growth was 7.9 percent and consumer lines growth was 2.9 percent, or 9.4 percent and 5.5 percent, respectively, on a constant dollar basis, driven by higher new business, positive rate increases, and strong renewal retention.

Agriculture growth was impacted by $161 million of return of premium to the U.S.

government under the profit-sharing agreement reflecting the profitable 2021 crop year.

Commercial lines growth excluding Agriculture increased 10.3 percent, or 11.9 percent in constant dollars.

• Commercial casualty grew primarily in North America, Europe and Asia, driven by higher new business, strong retention and positive rate increases.

• Workers' compensation growth was due to higher renewal business, including exposure increases, in North America.

• Financial lines grew in North America, Asia, and Europe, reflecting higher new business, strong retention and positive rate increases.

• Commercial multiple peril increased due to higher renewal business, including exposure and rate increases, in North America.

• Property and other short-tail lines grew due to higher new business, strong retention, and positive rate increases in North America, Europe, Latin America and Asia.

• Agriculture decreased due to return of premium to the U.S.

government noted above.

Excluding this return of premium, there was underlying growth in crop insurance and Chubb Agribusiness, reflecting higher commodity prices and volatility factors, which improved pricing, and policy count growth.

• Personal lines increased due to new business and strong renewal retention, from both rate and exposure increases, mainly in homeowners;

partially offset by cancellations in parts of California exposed to wildfires.

In addition, the prior year included the unfavorable impact of reinstatement premiums related to 2021 winter storm losses and automobile return premiums.

This prior year impact and adverse impact of the cancellations noted above, contributed 1.8 percentage points to the year-over-year growth.

• Global A&H lines increased on a constant-dollar basis as lines in Latin America, Europe, and Asia began to recover from less travel volume and reduced consumer activity in the prior year.

Our North American Combined Insurance supplemental A&H business decreased due to the continued impact of the COVID-19 pandemic on face-to-face and worksite sales.

• The increase in reinsurance was due to continued growth in the portfolio reflecting the impact of new treaties bound in the current quarter and in 2021, as well as favorable premium adjustments.

• International life operations declined, as new business in Asia was offset by a decline Latin America.

For additional information on net premiums written, refer to the segment results discussions.

2 unchanged sentences

Net premiums earned for long-duration contracts, typically traditional life contracts, generally are recognized as earned when due from policyholders.

For the three months ended September 30, 2021, net premiums earned increased $1,235 million, or 14.1 percent, comprising 21.1 percent positive growth in commercial P&C lines and 0.8 percent positive growth in consumer lines.

For the nine months ended September 30, 2021, net premiums earned increased $2,347 million or 9.5 percent, comprising 15.0 percent positive growth in commercial P&C lines and 0.1 percent positive growth in consumer lines.

For the three months ended March 31, 2022, net premiums earned increased $525 million, or 6.4 percent, comprising 9.9 percent positive growth in commercial lines and 0.2 percent positive growth in consumer lines.

Partially offsetting the increase in net premiums earned is the return of premium under the profit-sharing agreement related to the profitable 2021 crop year as described above.

Catastrophe Losses and Prior Period Development

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Refer to the Non-GAAP Reconciliation section for further information on reinstatement premiums on catastrophe losses and adjustments to prior period development.

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

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Favorable prior period development $ 240 $ 192

Catastrophe losses through September 30, 2021 and 2020 were primarily from the following events:

Hurricane Ida losses of $806 million, winter storm losses in the U.S., flooding in Europe, and other severe weather-related events in the U.S.

Catastrophe losses through March 31, 2022 and 2021 were primarily from the following events:

Australia storms, Colorado wildfires, and other severe weather-related events in the U.S.

and internationally.

COVID-19 pandemic claims of $1,378 million, severe weather-related events in the U.S.

and internationally, and civil unrest-related losses in the U.S.

Winter storm losses in the U.S.

and other severe weather-related events in the U.S.

and internationally.

Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years.

Pre-tax net favorable PPD for the three months ended September 30, 2021 was $321 million, including adverse development of $33 million related to legacy environmental exposures.

Excluding the adverse development, we had favorable development of $354 million with 30 percent in long-tail lines, principally from accident years 2017 and prior, and 70 percent in short-tail lines, primarily in homeowners and property lines.

Pre-tax net favorable PPD for the nine months ended September 30, 2021 was $781 million, including adverse development of $33 million related to legacy environmental exposures and $68 million for molestation claims.

Excluding the adverse development, we had favorable development of $882 million with 27 percent in long-tail lines, principally from accident years 2017 and prior, and 73 percent in short-tail lines, primarily in homeowners, accident and health, property, and surety lines.

Pre-tax net adverse PPD for the three months ended September 30, 2020 was $146 million, including adverse development of $35 million related to legacy environmental exposures.

The remaining favorable development of $181 million comprises $312

million of favorable development from long-tail lines, principally from accident years 2016 and prior, and adverse development of $131 million in short-tail lines.

Pre-tax net favorable prior period development for the nine months ended September 30, 2020 was $189 million, including adverse development of $259 million for U.S.

child molestation claims, predominately reviver statute-related and $35 million adverse development related to legacy environmental exposures.

The remaining favorable development of $483 million principally comprises favorable development from long-tail lines, principally from accident years 2016 and prior.

Pre-tax net favorable PPD for the three months ended March 31, 2022 was $240 million, with five percent in long-tail lines, principally from accident years 2018 and prior, and 95 percent in short-tail lines, primarily in A&H, property, and surety lines.

Pre-tax net favorable PPD for the three months ended March 31, 2021 was $192 million, with 19 percent in long-tail lines, principally from accident years 2017 and prior, and 81 percent in short-tail lines, primarily in A&H, surety, and property lines.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

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A P&C combined ratio under 100 percent indicates underwriting income, and a combined ratio exceeding 100 percent indicates underwriting loss.

Three Months Ended Nine Months Ended

September 30 September 30

2021 2020 2021 2020

Three Months Ended

Loss and loss expense ratio

6 unchanged sentences

P&C Combined ratio 84.3 % 91.8 %

The decrease in the loss and loss expense ratio for the three and nine months ended September 30, 2021 was primarily due to higher favorable prior period development.

The CAY loss ratio excluding catastrophe losses increased 0.4 percentage points for the three months ended September 30, 2021.

The prior year loss ratio was favorably impacted by a COVID-related reduced claim frequency benefit of 1.0 percentage point primarily in the automobile portfolios in North America and Latin America.

Excluding this prior year benefit, the CAY loss ratio excluding catastrophe losses decreased 0.6 percentage points reflecting underlying loss ratio improvement.

The CAY loss ratio excluding catastrophe losses decreased 0.7 percentage points for the nine months ended September 30, 2021 reflecting underlying loss ratio improvement.

The prior year loss ratio was favorably impacted by a COVID-related reduced claim frequency benefit of 0.3 percentage point.

Excluding this prior year benefit, the CAY loss ratio excluding catastrophe losses decreased 1.0 percentage point reflecting underlying loss ratio improvement.

The policy acquisition cost ratio decreased 0.9 percentage points and 0.5 percentage points for the three and nine months ended September 30, 2021, respectively, primarily due to a change in the mix of business, including less premiums earned from consumer A&H lines that have a higher acquisition cost ratio and higher premiums earned from commercial P&C lines that have a lower acquisition cost ratio.

The administrative expense ratio decreased 0.3 percentage points and 0.4 percentage points for the three and nine months ended September 30, 2021, respectively, primarily due to the favorable impact of higher net premiums earned.

The loss and loss expense ratio and the CAY loss ratio excluding catastrophe losses decreased 7.2 percentage points and 0.9 percentage points, respectively, for the three months ended March 31, 2022, reflecting underlying loss ratio improvement, including earned rate exceeding loss cost trends.

The loss and loss expense ratio for the three months ended March 31, 2022 also benefited from lower catastrophe losses and higher favorable prior period development.

The policy acquisition cost ratio and administrative expense ratio were relatively flat for the three months ended March 31, 2022.

Policy benefits

1 unchanged sentence

Refer to the Life Insurance segment operating results section for further discussion.

For the three months ended September 30, 2021 and 2020, Policy benefits were $151 million and $198 million, respectively, which included separate account liabilities (gains) losses of $(24) million and $24 million, respectively.

For the three months ended March 31, 2022 and 2021, Policy benefits were $145 million and $167 million, respectively, which included (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account reporting under GAAP of $(31) million and $4 million, respectively.

The offsetting movements of these liabilities are recorded in Other (income) expense on the Consolidated statements of operations.

Excluding the separate account gains and losses, Policy benefits were $175 million and $174 million for the three months ended September 30, 2021 and 2020, respectively, reflecting growth in our International Life operations, offset by a decline in our Combined Insurance North America supplemental accident and health business and our life reinsurance business.

For the nine months ended September 30, 2021 and 2020, Policy benefits were $503 million and $550 million, which included separate account liabilities (gains) losses of $(5) million and $8 million, respectively.

Excluding the separate account gains and losses, Policy benefits were $508 million and $542 million for the nine months ended September 30, 2021 and 2020, respectively, reflecting growth in our International Life operations, offset by a decline in our Combined Insurance North America supplemental accident and health business and our life reinsurance business.

Excluding the separate account gains and losses, Policy benefits were $176 million and $163 million for the three months ended March 31, 2022 and 2021, respectively.

Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Amortization of purchased intangibles, and Income tax expense.

Segment Operating Results – Three and Nine Months Ended September 30, 2021 and 2020

Segment Operating Results – Three Months Ended March 31, 2022 and 2021

We operate through six business segments:

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This segment includes our North America Major Accounts and Specialty Insurance division (large corporate accounts and wholesale business), and the North America Commercial Insurance division (principally middle market and small commercial accounts).

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 4,039 $ 3,664 10.2 %

3 unchanged sentences

Administrative expenses 265 254 4.0 %

Underwriting income 390 280 39.9 % 1,379 101 NM

Underwriting income 779 346 125.0 %

Net investment income 489 540 (9.4) %

2 unchanged sentences

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 62.3 % 63.8 % (1.5) pts 63.1 % 64.7 % (1.6) pts

Catastrophe losses 11.9 % 12.9 % (1.0) pts 8.7 % 17.6 % (8.9) pts

Prior period development (4.5) % (6.0) % 1.5 pts (4.1) % (4.4) % 0.3 pts

Loss and loss expense ratio 69.7 % 70.7 % (1.0) pts 67.7 % 77.9 % (10.2) pts

Policy acquisition cost ratio 13.5 % 14.2 % (0.7) pts 13.5 % 13.9 % (0.4) pts

Administrative expense ratio 6.9 % 7.0 % (0.1) pts 6.7 % 7.2 % (0.5) pts

Combined ratio 90.1 % 91.9 % (1.8) pts 87.9 % 99.0 % (11.1) pts

NM - not meaningful

Catastrophe Losses and Prior Period Development Three Months Ended Nine Months Ended

September 30 September 30

CAY loss ratio excluding catastrophe losses 61.5 % 63.4 % (1.9) pts

Catastrophe losses 2.0 % 9.9 % (7.9) pts

Prior period development (2.8) % (3.6) % 0.8 pts

Loss and loss expense ratio 60.7 % 69.7 % (9.0) pts

Policy acquisition cost ratio 13.9 % 14.0 % (0.1) pts

Administrative expense ratio 6.5 % 6.9 % (0.4) pts

Combined ratio 81.1 % 90.6 % (9.5) pts

Catastrophe Losses and Prior Period Development Three Months Ended

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 108 $ 127

Catastrophe losses through September 30, 2021 and 2020 were primarily from the following events:

Hurricane Ida losses of $391 million, winter storm losses and other severe weather-related events in the U.S.

COVID-19 pandemic claims 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.

Catastrophe losses through March 31, 2022 and 2021 were primarily from winter storm losses and other severe weather-related events in the U.S.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Net premiums written increased $591 million, or 15.6 percent, and $1,568 million, or 14.6 percent, for the three and nine months ended September 30, 2021, respectively, comprising:

• Commercial P&C lines:

Positive growth of 16.6 percent and 15.9 percent, respectively, reflecting strong new business written, positive rate increases, and strong premium retention across a number of retail and wholesale lines, including financial lines, primary and excess casualty, and property.

Net premiums written increased $375 million, or 10.2 percent, for the three months ended March 31, 2022, comprising:

• Commercial lines:

Positive growth of 10.5 percent reflecting strong premium retention, including rate and exposure increases, and new business across a number of retail and wholesale lines, including property, financial lines, primary and excess casualty, workers' compensation and commercial multiple peril.

• Consumer lines:

Negative growth of 3.9 percent and 10.9 percent, respectively, principally from exposure declines in A&H.

Net premiums earned increased $498 million, or 14.4 percent, and $1,004 million, or 9.6 percent for the three and nine months ended September 30, 2021, respectively, reflecting the growth in net premiums written described above.

Positive growth of 4.4 percent due to recovery in A&H lines from exposure declines in the prior year and strong new business.

Net premiums earned increased $440 million, or 12.0 percent for the three months ended March 31, 2022, reflecting the growth in net premiums written described above.

Combined Ratio

The loss and loss expense ratio and the CAY loss ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2021, due to underlying loss ratio improvement.

The loss and loss expense ratio for the nine months ended September 30, 2021 was also impacted by lower catastrophe losses compared to the prior year which included significant losses related to the COVID-19 pandemic and the favorable impact of lower year-over-year large structured transactions written.

The policy acquisition cost ratio decreased 0.7 percentage point and 0.4 percentage point for the three and nine months ended September 30, 2021, respectively, reflecting lower commissions and a change in mix of business towards lines that have a lower acquisition cost ratio.

The decrease in the policy acquisition ratio for the nine months ended, September 30, 2021 was partially offset by the impact of lower year-over-year structured transactions noted above.

The administrative expense ratio decreased 0.1 percentage point and 0.5 percentage point for the three and nine months ended September 30, 2021, respectively, primarily due to the favorable impact of higher net premiums earned, partially offset by increased spending to support growth.

The loss and loss expense ratio and the CAY loss ratio excluding catastrophe losses decreased for the three months ended March 31, 2022, primarily reflecting underlying loss ratio improvement, including earned rate exceeding loss cost trends.

The loss and loss expense ratio was also impacted by lower catastrophe losses, partially offset by lower favorable prior period development.

The administrative expense ratio decreased for the three months ended March 31, 2022, primarily due to the favorable impact of growth in net premiums earned, partially offset by higher employee-related benefit expenses.

North America Personal P&C Insurance

The North America Personal P&C Insurance segment comprises operations that provide high net worth personal lines products, including homeowners and complementary products such as valuable articles, excess liability, automobile, and recreational marine insurance and services in the U.S.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 1,180 $ 1,098 7.4 %

3 unchanged sentences

Administrative expenses 69 60 15.6 %

Underwriting income 71 (43) NM 365 294 24.2 %

Underwriting income 205 58 255.4 %

Net investment income 59 65 (8.3) %

Other (income) expense 1 1 — (3) 4 NM

Other (income) expense 1 1 —

Amortization of purchased intangibles 2 3 (5.2) %

Segment income $ 128 $ 18 NM $ 549 $ 477 15.1 %

Segment income $ 261 $ 119 119.7 %

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 50.7 % 49.2 % 1.5 pts 52.5 % 53.0 % (0.5) pts

Catastrophe losses 31.9 % 24.7 % 7.2 pts 18.9 % 12.0 % 6.9 pts

Prior period development (14.6) % 4.2 % (18.8) pts (7.3) % 1.4 % (8.7) pts

Loss and loss expense ratio 68.0 % 78.1 % (10.1) pts 64.1 % 66.4 % (2.3) pts

Policy acquisition cost ratio 20.4 % 20.1 % 0.3 pts 20.4 % 20.0 % 0.4 pts

Administrative expense ratio 5.9 % 5.3 % 0.6 pts 5.5 % 5.5 % — pts

Combined ratio 94.3 % 103.5 % (9.2) pts 90.0 % 91.9 % (1.9) pts

NM - not meaningful

CAY loss ratio excluding catastrophe losses 53.3 % 53.2 % 0.1 pts

Catastrophe losses 8.0 % 19.3 % (11.3) pts

Prior period development (4.1) % (3.3) % (0.8) pts

Loss and loss expense ratio 57.2 % 69.2 % (12.0) pts

Policy acquisition cost ratio 20.8 % 20.9 % (0.1) pts

Administrative expense ratio 5.5 % 5.0 % 0.5 pts

Combined ratio 83.5 % 95.1 % (11.6) pts

Catastrophe Losses and Prior Period Development

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

1 unchanged sentence

Catastrophe losses $ 100 $ 240

Favorable (unfavorable) prior period development $ 182 $ (48) $ 266 $ (48)

Catastrophe losses through September 30, 2021 and 2020 were primarily from the following events:

Hurricane Ida losses of $281 million, winter storm losses and other severe weather-related events in the U.S.

wildfires, Tropical Storm Isaias, Midwest derecho, Hurricane Sally, Hurricane Laura, and other severe weather-related events in the U.S.

Favorable prior period development $ 51 $ 40

Catastrophe losses through March 31, 2022 and 2021 were primarily from the following events:

Colorado wildfires and severe weather-related events in the U.S.

Winter storm losses and other severe weather-related events in the U.S.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Net premiums written increased $15 million, or 1.2 percent, and $42 million, or 1.1 percent for the three and nine months ended September 30, 2021, respectively, primarily driven by new business and strong renewal retention, from both rate and exposure increases in homeowners.

Partially offsetting the increase were cancellations in parts of California exposed to wildfires, and the unfavorable impact of automobile return premiums.

Net premiums earned increased $13 million, or 1.0 percent, and $29 million, or 0.8 percent for the three and nine months ended September 30, 2021, respectively, reflecting the growth in net premiums written described above.

Net premiums written increased $82 million, or 7.4 percent for the three months ended March 31, 2022, primarily driven by new business and strong renewal retention, from both rate and exposure increases, mainly in homeowners;

partially offset by cancellations in parts of California exposed to wildfires.

In addition, the prior year included the unfavorable impact of reinstatement premiums related to 2021 winter storm losses and automobile return premiums.

This prior year impact and adverse impact of the cancellations noted above, contributed 1.8 percentage points to the year-over-year growth.

Net premiums earned increased $63 million, or 5.3 percent for the three months ended March 31, 2022, reflecting the growth in net premiums written.

Combined Ratio

The loss and loss expense ratio decreased for the three and nine months ended September 30, 2021, reflecting higher favorable prior period development, partially offset by higher catastrophe losses.

The CAY loss ratio excluding catastrophe losses increased for the three months ended September 30, 2021 and decreased for the nine months ended September 30, 2021.

The prior year loss ratio was favorably impacted by a COVID-related reduced claim frequency benefit of 3.3 percentage points and 1.1 percentage points, respectively, in the automobile portfolio.

Excluding this prior year benefit, the CAY loss ratio excluding catastrophe losses decreased reflecting underlying loss ratio improvement in homeowners.

The policy acquisition cost ratio increased 0.3 percentage point and 0.4 percentage point for the three and nine months ended September 30, 2021, respectively, primarily due to lower ceded commissions.

The nine months ended September 30, 2021 was also impacted by a favorable commission accrual adjustment in the prior year.

The administrative expense ratio increased 0.6 percentage point for the three months ended September 30, 2021 primarily due to increased spending to support growth and was flat for the nine months ended September 30, 2021.

The loss and loss expense ratio decreased for the three months ended March 31, 2022, due to lower catastrophe losses and higher favorable prior period development.

The CAY loss ratio excluding catastrophe losses increased primarily due to slightly higher losses in automobile, offset by earned rate exceeding loss cost trends in homeowners.

The administrative expense ratio increased for the three months ended March 31, 2022, primarily due to increased spending to support growth and higher employee-related benefit expenses.

North America Agricultural Insurance

2 unchanged sentences

(Rain and Hail) as well as farm and ranch and specialty P&C commercial insurance products and services through our Chubb Agribusiness unit.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 62 $ 183 (65.9) %

Net premiums earned 1,338 971 37.9 % 1,858 1,441 29.0 %

Losses and loss expenses 1,138 845 34.6 % 1,554 1,223 27.0 %

Net premiums earned (29) 110 NM

Losses and loss expenses (92) 85 NM

Policy acquisition costs 12 12 —

Administrative expenses 4 5 4.1 % 10 12 (11.9) %

Underwriting income 135 65 107.3 % 194 110 76.0 %

Administrative expenses (1) 3 NM

Underwriting income 52 10 NM

Net investment income 7 7 —

Other (income) expense — — — — 1 NM

Amortization of purchased intangibles 7 7 —

Segment income $ 134 $ 65 107.5 % $ 195 $ 112 74.1 %

Segment income $ 52 $ 10 NM

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 84.0 % 84.2 % (0.2) pts 82.3 % 83.0 % (0.7) pts

Catastrophe losses 0.6 % 1.0 % (0.4) pts 1.1 % 1.7 % (0.6) pts

Prior period development 0.4 % 1.9 % (1.5) pts 0.2 % 0.2 % — pts

Loss and loss expense ratio 85.0 % 87.1 % (2.1) pts 83.6 % 84.9 % (1.3) pts

Policy acquisition cost ratio 4.6 % 5.8 % (1.2) pts 5.4 % 6.6 % (1.2) pts

Administrative expense ratio 0.3 % 0.4 % (0.1) pts 0.6 % 0.8 % (0.2) pts

Combined ratio 89.9 % 93.3 % (3.4) pts 89.6 % 92.3 % (2.7) pts

CAY loss ratio excluding catastrophe losses 70.6 % 71.2 % 0.6 pts

Catastrophe losses NM 7.4 % NM

Prior period development NM (1.1) % NM

Loss and loss expense ratio NM 77.5 % NM

Policy acquisition cost ratio NM 10.7 % NM

Administrative expense ratio NM 2.7 % NM

Combined ratio NM 90.9 % NM

NM - not meaningful

Catastrophe Losses and Prior Period Development Three Months Ended Nine Months Ended

September 30 September 30

Catastrophe Losses and Prior Period Development Three Months Ended

(in millions of U.S.

1 unchanged sentence

Catastrophe losses $ — $ 8

Unfavorable prior period development $ (7) $ (18) $ (5) $ (4)

Catastrophe losses through September 30, 2021 and 2020 were primarily from winter storm losses and other severe weather-related events in the U.S.

Favorable prior period development $ 26 $ 2

Catastrophe losses through March 31, 2021 were primarily from winter storm losses and other severe weather-related events in the U.S.

in Chubb Agribusiness.

Net premiums written increased $429 million, or 43.6 percent, and $506 million, or 31.6 percent for the three and nine months ended September 30, 2021, respectively, due mainly to an increase in MPCI, reflecting higher commodity prices and volatility factors, both of which impact pricing, as well as higher reported acreage from policyholders and policy count growth.

In addition, our Chubb Agribusiness unit contributed to the net premiums written increase with strong new business growth.

Net premiums earned increased $367 million, or 37.9 percent, and $417 million, or 29.0 percent for the three and nine months ended September 30, 2021, respectively, reflecting the growth in net premiums written described above.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Net premiums written decreased $121 million, or 65.9 percent, for the three months ended March 31, 2022, primarily due to $161 million of return of premium to the U.S.

government as part of the profit-sharing agreement reflecting the profitable 2021 crop year in our MPCI business.

Under the profit-sharing agreement, we return additional premiums to the government because of the lower losses experienced in certain states in 2021.

Excluding this return of premium, net premiums written increased 22 percent due mainly to an increase in MPCI, primarily reflecting higher commodity prices and volatility factors, both of which impact pricing, as well as higher reported acreage from policyholders and policy count growth.

In addition, our Chubb Agribusiness unit contributed to growth with strong renewal retention, including rate increases, and new business.

Net premiums earned decreased $139 million for the three months ended March 31, 2022, due to the factors described above.

Combined Ratio

The loss and loss expense ratio and the CAY loss ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2021, primarily due to higher net premiums earned from MPCI, partially offset by the unfavorable impact of a commodity hedge loss in the current period.

The policy acquisition cost ratio decreased 1.2 percentage points for both the three and nine months ended September 30, 2021, primarily due to the favorable impact of higher net premiums earned.

The policy acquisition cost ratio for the nine months ended September 30, 2021 also benefited from a lower year-over-year amount of supplemental commissions in our Chubb Agribusiness unit.

The administrative expense ratio decreased 0.1 percentage point and 0.2 percentage point for the three and nine months ended September 30, 2021, respectively, primarily due to the favorable impact of higher net premiums earned.

The combined ratio for the three months ended March 31, 2022 was impacted by higher favorable prior period development, including the return of premium to the U.S.

government under the profit-sharing agreement related to the profitable 2021 crop year described above.

This return of premium resulted in a reduction to net premiums earned of $161 million and a corresponding reduction to incurred losses, with no net impact to underwriting income.

The CAY loss and loss expense ratio decreased 0.6 percentage point for the three months ended March 31, 2022, primarily due to the favorable year-over-year impact of the commodity hedge gain of 1.9 percentage points, partially offset by higher premiums earned from MPCI, which have a higher loss ratio.

The CAY policy acquisition cost ratio decreased 0.9 percentage point for the three months ended March 31, 2022, primarily due to higher premiums earned from MPCI, which have a lower acquisition cost ratio.

The CAY administrative expense ratio decreased 3.7 percentage points for the three months ended March 31, 2022, primarily due to higher Administrative and Operating (A&O) reimbursements on the MPCI business, as well as expense management.

Overseas General Insurance

4 unchanged sentences

Chubb provides funds at Lloyd's to support underwriting by Syndicate 2488 which is managed by Chubb Underwriting Agencies Limited.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 3,079 $ 2,890 6.5 %

10 unchanged sentences

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 49.8 % 49.5 % 0.3 pts 50.1 % 50.6 % (0.5) pts

Catastrophe losses 7.0 % 4.1 % 2.9 pts 3.6 % 8.5 % (4.9) pts

Prior period development (1.0) % (2.6) % 1.6 pts (2.7) % (1.5) % (1.2) pts

Loss and loss expense ratio 55.8 % 51.0 % 4.8 pts 51.0 % 57.6 % (6.6) pts

Policy acquisition cost ratio 26.4 % 27.3 % (0.9) pts 26.8 % 27.8 % (1.0) pts

Administrative expense ratio 10.0 % 11.1 % (1.1) pts 10.5 % 11.1 % (0.6) pts

Combined ratio 92.2 % 89.4 % 2.8 pts 88.3 % 96.5 % (8.2) pts

CAY loss ratio excluding catastrophe losses 49.4 % 49.9 % (0.5) pts

Catastrophe losses 5.8 % 2.1 % 3.7 pts

Prior period development (2.3) % (1.0) % (1.3) pts

Loss and loss expense ratio 52.9 % 51.0 % 1.9 pts

Policy acquisition cost ratio 25.8 % 27.0 % (1.2) pts

Administrative expense ratio 10.2 % 10.7 % (0.5) pts

Combined ratio 88.9 % 88.7 % 0.2 pts

Catastrophe Losses and Prior Period Development

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 60 $ 25

Catastrophe losses through September 30, 2021 and 2020 were primarily from the following events:

Flooding in Europe, Hurricane Ida, winter storm losses and international weather-related events

COVID-19 pandemic claims of $373 million, storms in Australia, Australia wildfires, Hurricane Laura, Hurricane Sally, Tropical Storm Isaias, and other international weather-related events

Catastrophe losses through March 31, 2022 and 2021 were primarily from the following events:

Australia storms and international weather-related events.

Winter storm losses in the U.S.

and international weather-related events.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Net Premiums Written by Region

Three months ended September 30

Three months ended March 31

(in millions of U.S.

2 unchanged sentences

% of Total C$

2021 Q-22 vs.

Q-21 C$ Q-22 vs.

1 unchanged sentence

Latin America 605 19 % 537 19 % 512 12.8 % 18.1 %

Asia 862 33 % 794 35 % 819 8.5 % 5.1 %

60 2 % 47 2 % 48 29.7 % 25.9 %

Net premiums written $ 2,596 100 % $ 2,238 100 % $ 2,333 15.9 % 11.2 %

Nine months ended September 30

(in millions of U.S.

dollars, except for percentages) 2021 2021

% of Total 2020 2020

% of Total C$

Y-20 C$ Y-21 vs.

Europe, Middle East and Africa $ 3,912 49 % $ 3,111 45 % $ 3,309 25.7 % 18.2 %

Latin America 1,489 18 % 1,414 21 % 1,439 5.3 % 3.5 %

Asia 2,448 31 % 2,203 32 % 2,320 11.1 % 5.5 %

Asia Pacific ex Japan 668 22 % 637 22 % 605 4.9 % 10.4 %

Japan 115 4 % 124 4 % 113 (7.4) % 1.6 %

37 1 % 41 1 % 40 (10.7) % (7.8) %

1 unchanged sentence

(1) Includes the international supplemental A&H business of Combined Insurance and other international operations.

Overall, net premiums written increased for the three and nine months ended September 30, 2021, reflecting growth in commercial P&C lines of 20.6.

percent and 23.8 percent, or 16.0 percent and 17.8 percent on a constant-dollar basis, respectively, and growth in consumer lines of 9.2 percent and 6.4 percent, or 4.5 percent and 1.3 percent on a constant-dollar basis, respectively.

Growth in Europe, Middle East and Africa of 17.1 percent and 18.2 percent on a constant-dollar basis for the three and nine months ended September 30, 2021, respectively, was primarily driven by higher new business, higher retention and positive rate increases in commercial P&C lines, including commercial casualty, professional liability and property.

Latin America increased 7.8 percent on a constant-dollar basis for the three months ended September 30, 2021 driven by higher new business in homeowners and A&H.

The prior year included the adverse impact of restrictions resulting from the COVID-19 pandemic in automobile and A&H.

Latin America increased 3.5 percent on a constant-dollar basis for the nine months ended September 30, 2021 due to growth in commercial P&C lines.

Asia growth of 5.1 percent and 5.5 percent on a constant-dollar basis for the three and nine months ended September 30, 2021, respectively, was primarily driven by higher new business, higher retention and positive rate increases in commercial P&C lines, including professional liability and property.

Net premiums earned increased $327 million and $883 million, or $237 million and $542 million on a constant-dollar basis, for the three and nine months ended September 30, 2021, respectively, reflecting the increase in commercial P&C net premiums written described above.

Net premiums written increased $189 million, or $327 million on a constant-dollar basis, for the three months ended March 31, 2022, reflecting an increase in commercial lines of 8.6 percent, or 13.6 percent on a constant-dollar basis, and growth in consumer lines of 3.0 percent, or 9.0 percent on a constant-dollar basis.

Growth in Europe, Middle East, and Africa for the three months ended March 31, 2022 was primarily driven by higher new business and positive rate increases in commercial lines, including commercial casualty, property, and financial lines.

Consumer lines increased primarily due to A&H, reflecting increased travel volume.

Additionally, A&H in the prior year was adversely impacted by restrictions resulting from the COVID-19 pandemic.

Latin America increased for the three months ended March 31, 2022 driven by growth in consumer lines, including automobile in personal and travel in A&H.

Commercial lines also grew due to exposure increases and new business in commercial lines, primarily property.

Asia Pacific ex Japan increased for the three months ended March 31, 2022 driven by higher new business, higher retention and positive rate increases in commercial lines, including financial lines, property and casualty, and growth in consumer lines, primarily specialty in personal and travel in A&H.

Japan increased for the three months ended March 31, 2022 primarily from new business in A&H.

Net premiums earned increased $150 million, or $261 million on a constant-dollar basis, for the three months ended March 31, 2022, reflecting the increase in net premiums written described above.

Combined Ratio

The loss and loss expense ratio increased for the three months ended September 30, 2021, primarily due to higher catastrophe losses and lower favorable prior period development.

The loss and loss expense ratio decreased for the nine months ended September 30, 2021, primarily from lower catastrophe losses and higher favorable prior period development.

The CAY loss ratio excluding catastrophe losses increased for the three months ended September 30, 2021 and decreased for the nine months ended September 30, 2021.

The prior year loss ratio was favorably impacted by a COVID-related reduced claim frequency benefit of 1.7 percentage points and 0.6 percentage point for the three and nine months ended September 30, 2020, respectively, primarily in the automobile portfolio in Latin America.

Excluding this prior year benefit, the CAY loss ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2021, reflecting underlying loss ratio improvement, partially offset by lower premiums earned from A&H lines which have a lower loss ratio.

The policy acquisition cost ratio decreased 0.9 percentage point and 1.0 percentage point for the three and nine months ended September 30, 2021, respectively, primarily due to a change in the mix of business, including less premiums earned from A&H lines that have a higher acquisition cost ratio and higher premiums earned from commercial P&C lines that have a lower acquisition cost ratio .

The administrative expense ratio decreased 1.1 percentage points and 0.6 percentage point for the three and nine months ended September 30, 2021, respectively, primarily due to the favorable impact of higher net premiums earned.

The loss and loss expense ratio increased for the three months ended March 31, 2022, primarily due to higher catastrophe losses, partially offset by higher favorable prior period development.

The CAY loss ratio excluding catastrophe losses decreased for the three months ended March 31, 2022, primarily reflecting underlying loss ratio improvement, including earned rate exceeding loss cost trends.

The policy acquisition cost ratio decreased for the three months ended March 31, 2022, primarily due to a change in the mix of business, including less premiums earned from consumer lines that have a higher acquisition cost ratio and higher premiums earned from commercial lines that have a lower acquisition cost ratio.

The administrative expense ratio decreased for the three months ended March 31, 2022, primarily due to the favorable impact of higher net premiums earned, partially offset by increased investment to support growth.

Global Reinsurance

1 unchanged sentence

Global Reinsurance markets its reinsurance products worldwide primarily through reinsurance brokers under the Chubb Tempest Re brand name and provides a broad range of traditional and non-traditional reinsurance coverage to a diverse array of primary P&C companies.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 253 $ 207 22.0 %

4 unchanged sentences

Administrative expenses 9 8 5.3 %

Underwriting income (loss) (45) (32) 45.0 % (13) 51 NM

Underwriting income 49 7 NM

Net investment income 85 70 20.7 %

Other (income) expense — — — — 1 NM

Segment income $ 134 $ 77 74.9 %

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 52.0 % 49.7 % 2.3 pts 50.5 % 49.0 % 1.5 pts

Catastrophe losses 41.7 % 42.0 % (0.3) pts 24.2 % 16.3 % 7.9 pts

Prior period development (2.5) % (2.1) % (0.4) pts (2.3) % (5.0) % 2.7 pts

Loss and loss expense ratio 91.2 % 89.6 % 1.6 pts 72.4 % 60.3 % 12.1 pts

Policy acquisition cost ratio 26.0 % 23.5 % 2.5 pts 25.2 % 24.5 % 0.7 pts

Administrative expense ratio 4.2 % 5.2 % (1.0) pts 4.6 % 5.3 % (0.7) pts

Combined ratio 121.4 % 118.3 % 3.1 pts 102.2 % 90.1 % 12.1 pts

CAY loss ratio excluding catastrophe losses 49.9 % 48.3 % 1.6 pts

Catastrophe losses 0.4 % 23.8 % (23.4) pts

Prior period development (1.5) % (5.2) % 3.7 pts

Loss and loss expense ratio 48.8 % 66.9 % (18.1) pts

Policy acquisition cost ratio 26.5 % 24.9 % 1.6 pts

Administrative expense ratio 3.7 % 4.6 % (0.9) pts

Combined ratio 79.0 % 96.4 % (17.4) pts

NM - not meaningful

Catastrophe Losses and Prior Period Development

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S dollars) 2022 2021

1 unchanged sentence

Favorable prior period development $ 3 $ 7

Catastrophe losses through September 30, 2021 and 2020 were primarily from the following events:

Severe weather-related events in the U.S.

and Canada, including Hurricane Ida and winter storms

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.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Net premiums written increased $40 million and $96 million for the three and nine months ended September 30, 2021, respectively, primarily from new business written and positive rate increases.

Net premiums earned increased $40 million and $63 million for the three and nine months ended September 30, 2021, respectively, primarily reflecting the increase in net premiums written described above.

Catastrophe losses through March 31, 2021 were primarily from winter storm losses in the U.S.

Net premiums written increased $46 million for the three months ended March 31, 2022, primarily due to continued growth in the portfolio reflecting the impact of new treaties bound in the current quarter and in 2021, as well as favorable premium adjustments.

Net premiums earned increased $55 million for the three months ended March 31, 2022, primarily reflecting the increase in net premiums written described above.

Combined Ratio

The loss and loss expense ratio increased 1.6 percentage points for the three months ended September 30, 2021, primarily due to a shift in the mix of business towards lines which have a higher loss ratio, and increased 12.1 percentage points for the nine months ended September 30, 2021, primarily due to higher catastrophe losses and lower favorable prior period development.

The CAY loss ratio excluding catastrophe losses increased 2.3 percentage points and 1.5 percentage points, for the three and nine months ended September 30, 2021, respectively, also primarily due to a shift in the mix of business towards lines which have a higher loss ratio.

The policy acquisition cost ratio increased 2.5 percentage points and 0.7 percentage points for the three and nine months ended September 30, 2021, respectively, primarily due to favorable expense adjustments in the prior year.

Additionally, the increase for the three months ended September 30, 2020 was also due to a shift in mix of business towards lines that have higher acquisition costs.

The administrative expense ratio decreased 1.0 percentage point and 0.7 percentage points for the three and nine months ended September 30, 2021, respectively, primarily from the favorable impact of higher net premiums earned.

The loss and loss expense ratio decreased for the three months ended March 31, 2022, primarily due to lower catastrophe losses.

The CAY loss ratio excluding catastrophe losses increased for the three months ended March 31, 2022, primarily due to a shift in the mix of business.

The policy acquisition cost ratio increased for the three months ended March 31, 2022, primarily due to a shift in the mix of business.

The administrative expense ratio decreased for the three months ended March 31, 2022, primarily from the favorable impact of higher net premiums earned.

Life Insurance

The Life Insurance segment comprises Chubb's international life operations, Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance.

The Life Insurance segment comprises our international life operations, Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance.

We assess the performance of our life business based on Life Insurance underwriting income, which includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Net premiums written $ 586 $ 620 (5.5) %

10 unchanged sentences

Segment income $ 115 $ 104 10.0 %

Net premiums written was relatively flat and decreased slightly for the three and nine months ended September 30, 2021, respectively, including growth of 14.8 percent and 12.0 percent, respectively, in our International Life operations, principally in Asia, from new business in Taiwan, Vietnam and Thailand, and in Latin America.

This growth was offset by a decline in our North America Combined Insurance business of 7.3 percent and 7.5 percent for the three and nine months ended September 30, 2021, respectively, due to the adverse impact of the COVID-19 pandemic on face-to-face and worksite sales, and a decline in our life reinsurance business which continues to decline as no new business is currently being written.

Net premiums written decreased $34 million, or $21 million on a constant-dollar basis for the three months ended March 31, 2022.

For our International life operations, net premiums written decreased 4.5 percent as growth in Asia from new business in Taiwan and Vietnam was offset by a decline in Latin America from lower business in Chile.

Net premiums written also reflects a decline in our North American Combined Insurance business of 7.4 percent.

The following table presents deposits collected on universal life and investment contracts:

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2021 2020 C$ 2020 Q-21 vs.

2021 2020 C$ 2020 Y-21 vs.

dollars, except for percentages) 2022 2021 C$

2021 Q-22 vs.

Deposits collected on universal life and investment contracts $ 557 $ 551 $ 555 0.9 % 0.3 %

1 unchanged sentence

New life deposits are an important component of production, and although they do not significantly affect current period income from operations, they are key to our efforts to grow our business.

Life deposits collected increased $295 million and $699 million for the three and nine months ended September 30, 2021, respectively, primarily due to successful sales in broker and bank channels in Taiwan.

Life deposits collected increased $6 million for the three months ended March 31, 2022, primarily in Taiwan.

Life Insurance underwriting income and Segment income

Life Insurance underwriting income increased $5 million for the three months ended September 30, 2021, primarily due to higher net investment income.

Life Insurance underwriting income was relatively flat for the nine months ended September 30, 2021.

Segment income was relatively flat for the three months ended September 30, 2021.

Segment income increased $25 million for the nine months ended September 30, 2021, primarily due to our share of net income from our investment in Huatai, our partially-owned insurance entity in China.

Corporate results primarily include the results of our non-insurance companies, income and expenses not attributable to reportable segments and loss and loss expenses of asbestos and environmental (A&E) liabilities and certain other non-A&E run-off exposures.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Life Insurance underwriting income increased $18 million for the three months ended March 31, 2022, primarily reflecting lower year-over-year COVID-related losses.

Segment income increased $11 million for the three months ended March 31, 2022, primarily due to the increase in underwriting income described above, partially offset by lower income from our investment in Huatai, our partially-owned insurance entity in China.

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2022 2021 Q-22 vs.

Q-20 2021 2020 YTD-21 vs.

Losses and loss expenses $ 10 $ 9 0.1 %

3 unchanged sentences

Interest expense 132 122 7.4 %

Net realized gains (losses) (11) (142) (92.2) % 841 (1,067) NM

Other (income) expense (722) (415) 73.2 % (1,845) (283) NM

Net realized gains (losses) 100 888 (88.8) %

Other (income) expense (259) (415) (37.5) %

Amortization of purchased intangibles 46 49 (7.6) %

Income tax expense 355 338 5.2 %

Net income (loss) $ 170 $ (196) NM $ 858 $ (2,243) NM

Net income (loss) $ (272) $ 697 NM

NM - not meaningful

Losses and loss expenses for the three months ended September 30, 2021 and 2020 were primarily from adverse development relating to our Brandywine environmental exposures of $33 million and $35 million, respectively.

Losses and loss expenses for the nine months ended September 30, 2020, also includes $254 million for U.S.

child molestation claims, predominantly reviver statute-related.

Administrative expenses increased $28 million and $44 million for the three and nine months ended September 30, 2021, respectively, primarily due to higher employee-related expenses and increased spending to support digital growth initiatives.

Administrative expenses increased $12 million for the three months ended March 31, 2022, primarily due to higher employee-related expenses and increased investment to support growth.

Refer to the respective sections that follow for a discussion of Net realized gains (losses), Net investment income (loss), Amortization of purchased intangibles, and Income tax expense (benefit).

9 unchanged sentences

reported as separate components of Accumulated other comprehensive income in Shareholders’ equity in the Consolidated balance sheets.

The following tables presents our net realized and unrealized gains (losses):

Three Months Ended September 30

(in millions of U.S.

Fixed maturities $ (10) $ (554) $ (564) $ 49 $ 638 $ 687

Fixed income and equity derivatives (9) — (9) 9 — 9

Public equity

Sales 19 — 19 34 — 34

Mark-to-market (61) — (61) (34) — (34)

Private equity (less than 3 percent ownership)

Mark-to-market 11 — 11 31 — 31

Total investment portfolio (50) (554) (604) 89 638 727

Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges (63) — (63) (6) — (6)

Other derivatives (10) — (10) 1 — 1

Foreign exchange 106 (414) (308) (222) 246 24

Other (4) 4 — (3) (23) (26)

Net gains (losses), pre-tax $ (21) $ (964) $ (985) $ (141) $ 861 $ 720

Nine Months Ended September 30

The following table presents our net realized and unrealized gains (losses):

Three Months Ended March 31

(in millions of U.S.

10 unchanged sentences

Foreign exchange 75 67 142 76 22 98

Other (5) (33) (38) (43) (59) (102)

(74) 19 (55) (1) (28) (29)

Net gains (losses), pre-tax $ 101 $ (4,566) $ (4,465) $ 887 $ (2,323) $ (1,436)

Pre-tax net losses of $604 million in our investment portfolio for the three months ended September 30, 2021 were principally the result of an increase in interest rates.

Pre-tax net losses of $1,556 million in our investment portfolio for the nine months ended September 30, 2021 were principally the result of an increase in interest rates, partially offset by positive equity returns.

(1) Other realized losses include impairment of assets related to Chubb's Russian entities.

Pre-tax net losses of $4,630 million in our investment portfolio for the three months ended March 31, 2022 were principally the result of an increase in interest rates.

The variable annuity reinsurance derivative transactions consist of changes in the fair value of GLB liabilities and gains or losses on other derivative instruments we maintain that decrease in fair value when the S&P 500 index increases.

The variable annuity reinsurance derivative transactions resulted in realized losses of $63 million for the three months ended September 30, 2021, reflecting a net loss of $59 million, primarily from an increase in the fair value of the GLB liabilities due to underperformance in certain equity markets, partially offset by an increase in interests rates, and a net realized loss of $4 million related to these other derivatives.

For the nine months ended September 30, 2021, the variable annuity reinsurance derivative transactions resulted in net realized gains of $140 million reflecting a net gain of $252 million, principally related to a decrease in the fair value of the GLB liabilities due to higher interest rates and higher global equity markets, partially offset by a net realized loss of $112 million related to these other derivatives.

For the three months ended September 30, 2020, the variable annuity reinsurance derivative transactions resulted in realized losses of $6 million, reflecting a net decrease in the fair value of the GLB liabilities of $46 million due to higher equity markets, particularly in the U.S., and a net realized loss of $52 million related to these other derivatives.

For the nine months ended September 30, 2020, the variable annuity reinsurance derivative transactions resulted in realized losses of $456 million reflecting a net increase in the fair value of the GLB liabilities of $426 million due to lower interest rates and lower international equity markets and a net realized loss of $30 million related to these other derivatives.

The variable annuity reinsurance derivative transactions resulted in realized gains of $77 million for the three months ended March 31, 2022, reflecting a net gain of $35 million, primarily from a decrease in the fair value of the GLB liabilities due to higher interest rates, partially offset by lower global equity markets, and a net realized gain of $42 million related to these derivative instruments.

For the three months ended March 31, 2021, the variable annuity reinsurance derivative transactions resulted in realized gains of $275 million, reflecting a net decrease in the fair value of the GLB liabilities of $319 million due to higher interest rates and higher global equity markets, partially offset by a net realized loss of $44 million related to these derivative instruments.

Effective Income Tax Rate

Our effective tax rate (ETR) reflects a mix of income or losses in jurisdictions with a wide range of tax rates, permanent differences between U.S.

GAAP and local tax laws, and the impact of discrete items.

A change in the geographic mix of earnings could impact our effective tax rate.

For the three and nine months ended September 30, 2021 our ETR was 10.7 percent and 12.0 percent, respectively.

This compares to an ETR of 10.7 percent and 20.9 percent for the three and nine months ended September 30, 2020, respectively.

The ETR for each period in both years was impacted by our mix of earnings among various jurisdictions and discrete tax benefits.

Our effective tax rate (ETR) for the three months ended March 31, 2022 was 15.2 percent compared to 12.8 percent in the prior year period.

Our ETR reflects a mix of income or losses in jurisdictions with a wide range of tax rates, permanent differences between GAAP and local tax laws, and the impact of discrete items.

The ETR in the current year period was impacted by our mix of earnings among various jurisdictions and discrete tax benefits.

Non-GAAP Reconciliation

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These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition.

However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

However, they should not be viewed as a substitute for measures determined in accordance with GAAP.

Book value per common share is shareholders’ equity divided by the shares outstanding.

Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding.

We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.

The calculation of tangible book value per share does not consider the embedded goodwill attributable to our investments in partially-owned insurance companies until we attain majority ownership and consolidate .

We believe that book value comparisons to less acquisitive peer companies are more meaningful when adjusted for goodwill and other intangible assets.

The calculation of tangible book value per share does not consider the embedded goodwill attributable to our investments in partially-owned insurance companies until we consolidate .

We provide financial measures, including net premiums written, net premiums earned, and underwriting income on a constant-dollar basis.

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This measure is commonly reported among our peer companies and allows for a better comparison.

Reference to the year-over-year improvement of 0.6 percentage point and 1.0 percentage point in the P&C CAY excluding catastrophe loss ratio for the three and nine months ended September 30, 2021, respectively, is calculated by adjusting the prior year ratio to exclude the COVID-related reduced claim frequency impact.

We believe this information is meaningful to evaluate trends in the underlying business on a comparable basis.

Reinstatement premiums are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences.

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Three Months Ended

September 30, 2021

March 31, 2022

(in millions of U.S.

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Net premiums earned E $ 4,114 $ 1,247 $ (29) $ 2,628 $ 235 $ 8,195

Reinstatement premiums (collected) expensed on catastrophe losses — — — — (12) (12)

Net premiums earned adjustments on PPD - unfavorable (favorable) — — 159 — — 159

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Three Months Ended

September 30, 2020

(in millions of U.S.

dollars except for ratios)

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

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 %

impact of gains and losses on crop derivatives —

P&C Combined ratio 95.2 %

The ratios above are calculated using whole U.S.

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, 2021

(in millions of U.S.

dollars except for ratios)

Losses and loss expenses A $ 7,740 $ 2,341 $ 1,554 $ 3,936 $ 422 $ 141 $ 16,134

Catastrophe losses and related adjustments

Catastrophe losses, net of related adjustments (999) (698) (20) (278) (131) — (2,126)

Reinstatement premiums collected (expensed) on catastrophe losses — (16) — — 18 — 2

Catastrophe losses, gross of related adjustments (999) (682) (20) (278) (149) — (2,128)

PPD and related adjustments

PPD, net of related adjustments - favorable (unfavorable) 440 266 (5) 209 11 (140) 781

Net premiums earned adjustments on PPD - unfavorable (favorable) 67 — (2) — — — 65

Expense adjustments - unfavorable (favorable) 6 — — — — — 6

PPD reinstatement premiums - unfavorable (favorable) 6 (1) — 7 4 — 16

PPD, gross of related adjustments - favorable (unfavorable) 519 265 (7) 216 15 (140) 868

CAY loss and loss expense ex CATs B $ 7,260 $ 1,924 $ 1,527 $ 3,874 $ 288 $ 1 $ 14,874

Policy acquisition costs and administrative expenses

Policy acquisition costs and administrative expenses C $ 2,312 $ 946 $ 110 $ 2,881 $ 174 $ 258 $ 6,681

Expense adjustments - favorable (unfavorable) (6) — — — — — (6)

Policy acquisition costs and administrative expenses, adjusted D $ 2,306 $ 946 $ 110 $ 2,881 $ 174 $ 258 $ 6,675

Net premiums earned E $ 11,431 $ 3,652 $ 1,858 $ 7,721 $ 583 $ 25,245

Reinstatement premiums (collected) expensed on catastrophe losses — 16 — — (18) (2)

Net premiums earned adjustments on PPD - unfavorable (favorable) 67 — (2) — — 65

PPD reinstatement premiums - unfavorable (favorable) 6 (1) — 7 4 16

Net premiums earned excluding adjustments F $ 11,504 $ 3,667 $ 1,856 $ 7,728 $ 569 $ 25,324

P&C Combined ratio

Loss and loss expense ratio A/E 67.7 % 64.1 % 83.6 % 51.0 % 72.4 % 63.9 %

Policy acquisition cost and administrative expense ratio C/E 20.2 % 25.9 % 6.0 % 37.3 % 29.8 % 26.5 %

P&C Combined ratio 87.9 % 90.0 % 89.6 % 88.3 % 102.2 % 90.4 %

CAY P&C Combined ratio ex CATs

Loss and loss expense ratio, adjusted B/F 63.1 % 52.5 % 82.3 % 50.1 % 50.5 % 58.7 %

Policy acquisition cost and administrative expense ratio, adjusted D/F 20.1 % 25.8 % 5.9 % 37.3 % 30.5 % 26.4 %

CAY P&C Combined ratio ex CATs 83.2 % 78.3 % 88.2 % 87.4 % 81.0 % 85.1 %

Combined ratio

Combined ratio 90.4 %

impact of gains and losses on crop derivatives —

P&C Combined ratio 90.4 %

The ratios above are calculated using whole U.S.

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

March 31, 2021

(in millions of U.S.

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Amortization of Purchased Intangibles and Other Amortization

Amortization expense of purchased intangibles was $71 million and $216 million for the three and nine months ended September 30, 2021, respectively, and principally relates to the Chubb Corp acquisition.

The following table presents, as of September 30, 2021, the estimated pre-tax amortization expense (benefit) of purchased intangibles, at current foreign currency exchange rates, for the fourth quarter of 2021 and the next five years:

Amortization expense related to purchased intangibles was $71 million and $72 million for the three months ended March 31, 2022 and 2021, respectively, and principally relates to the Chubb Corp acquisition.

The following table presents, as of March 31, 2022, the estimated pre-tax amortization expense (benefit) of purchased intangibles, at current foreign currency exchange rates, for the second through fourth quarters of 2022 and for the next five years:

Associated with the Chubb Corp Acquisition

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Amortization of purchased intangibles

Second quarter of 2022 $ 49 $ (4) $ 45 $ 25 $ 70

Third quarter of 2022 49 (4) 45 25 70

Fourth quarter of 2022 49 (4) 45 25 70

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(2) Recorded in applicable segment(s) that acquired the intangible assets.

Reduction of deferred tax liability associated with intangible assets related to Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expense)

At September 30, 2021, the deferred tax liability associated with Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expense) was $1,242 million.

The following table presents, as of September 30, 2021, the expected reduction of the deferred tax liability associated with Other intangible assets (which reduces as agency distribution relationships and renewal rights, and other intangible assets amortize), at current foreign currency exchange rates, for the fourth quarter of 2021 and for the next five years:

Reduction of deferred tax liability associated with Other intangible assets

At March 31, 2022, the deferred tax liability associated with Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expense) was $1,200 million.

The following table presents as of March 31, 2022, the expected reduction to the deferred tax liability associated with the amortization of Other intangible assets, at current foreign currency exchange rates, for the second through fourth quarters of 2022 and for the next five years:

For the Years Ending December 31

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dollars) Reduction to deferred tax liability associated with intangible assets

Second quarter of 2022 $ 16

Third quarter of 2022 16

Fourth quarter of 2022 17

Amortization of the fair value adjustment on acquired invested assets and assumed long-term debt

The following table presents at September 30, 2021, the expected amortization expense of the fair value adjustment on acquired invested assets, at current foreign currency exchange rates, and the expected amortization benefit from the fair value adjustment on assumed long-term debt for the fourth quarter of 2021 and for the next five years:

The following table presents at March 31, 2022, the expected amortization expense of the fair value adjustment on acquired invested assets related to the Chubb Corp acquisition, at current foreign currency exchange rates, and the expected amortization benefit from the fair value adjustment on assumed long-term debt for the second through fourth quarters of 2022 and for the next five years:

Amortization (expense) benefit of the fair value adjustment on

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Assumed long-term debt (2)

Second quarter of 2022 $ (19) $ 5

Third quarter of 2022 (17) 5

Fourth quarter of 2022 (16) 6

2022 (115) 21

Total $ (111) $ 121

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(2) Recorded as a reduction to Interest expense in the Consolidated statements of operations.

The estimate of amortization expense of the fair value adjustment on acquired invested assets could vary materially based on current market conditions, bond calls, overall duration of the acquired investment portfolio, and foreign exchange.

The estimate of amortization expense of the fair value adjustment on acquired invested assets could vary based on current market conditions, bond calls, overall duration of the acquired investment portfolio, and foreign exchange.

Net Investment Income

Three Months Ended

September 30 Nine Months Ended

(in millions of U.S.

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Fixed maturities (1)

$ 804 $ 826 $ 2,480 $ 2,487

Short-term investments 9 9

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Gross investment income (1)

912 883 2,753 2,658

Investment expenses (46) (47)

Net investment income (1)

$ 866 $ 840 $ 2,613 $ 2,528

(1) Includes amortization expense related to fair value adjustment of acquired invested assets related to the Chubb Corp acquisition

(1) Includes amortization expense related to fair value adjustment of acquired invested assets

related to the Chubb Corp acquisition

$ (16) $ (26)

Net investment income is influenced by a number of factors including the amounts and timing of inward and outward cash flows, the level of interest rates, and changes in overall asset allocation.

Net investment income increased 3.1 percent and 3.4 percent for the three and nine months ended September 30, 2021, respectively, primarily due to higher income from our private equity partnerships and increased dividends on public equities which resulted from a higher allocation to public equity securities.

Investment income for the year was tempered by lower reinvestment rates on new and reinvested assets.

Net investment income decreased 4.8 percent for the three months ended March 31, 2022, primarily due to lower reinvestment rates on new and reinvested fixed maturities.

For private equities where we own less than three percent, investment income is included within Net investment income in the table above.

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Three Months Ended

September 30 Nine Months Ended

(in millions of U.S.

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Total mark-to-market gain on private equity, pre-tax $ 310 $ 438

Our investment portfolio is invested primarily in publicly traded, investment grade, fixed income securities with an average credit quality of A as rated by the independent investment rating services Standard and Poor’s (S&P)/Moody’s Investors Service (Moody’s) at September 30, 2021.

Our investment portfolio is invested primarily in publicly traded, investment grade, fixed income securities with an average credit quality of A/A as rated by the independent investment rating services Standard and Poor’s (S&P)/Moody’s Investors Service (Moody’s) at March 31, 2022.

The portfolio is externally managed by independent, professional investment managers and is broadly diversified across geographies, sectors, and issuers.

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We also have well-established, strict contractual investment rules requiring managers to maintain highly diversified exposures to individual issuers and closely monitor investment manager compliance with portfolio guidelines.

The average duration of our fixed income securities, including the effect of options and swaps, was 4.1 years and 4.0 years at September 30, 2021 and December 31, 2020, respectively.

We estimate that a 100 basis point (bps) increase in interest rates would reduce the valuation of our fixed income portfolio by approximately $4.4 billion at September 30, 2021.

The average duration of our fixed income securities, including the effect of options and swaps, was 4.2 years and 4.1 years at March 31, 2022 and December 31, 2021, respectively.

We estimate that a 100 basis point (bps) increase in interest rates would reduce the valuation of our fixed income portfolio by approximately $4.3 billion at March 31, 2022.

The following table shows the fair value and cost/amortized cost, net of valuation allowance, of our invested assets:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions of U.S.

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Total investments $ 118,317 $ 120,268 $ 122,852 $ 119,695

The fair value of our total investments increased $3.2 billion during the nine months ended September 30, 2021 due to strong operating cash flow and positive equity market returns.

This increase was partially offset by unrealized losses on fixed maturities, payment of dividends on our Common Shares, and share repurchases.

The following tables present the fair value of our fixed maturities and short-term investments at September 30, 2021 and December 31, 2020.

The fair value of our total investments decreased $4.5 billion during the three months ended March 31, 2022 due to unrealized losses on fixed maturities and share repurchases, partially offset by strong operating cash flows.

The following tables present the fair value of our fixed income securities at March 31, 2022 and December 31, 2021.

The first table lists investments according to type and second according to S&P credit rating:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions of U.S.

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Corporate and asset-backed securities

The following table presents our 10 largest global exposures to corporate bonds by fair value at September 30, 2021:

The following table presents our 10 largest global exposures to corporate bonds by fair value at March 31, 2022:

(in millions of U.S.

dollars) Fair Value

Wells Fargo & Co $ 725

Bank of America Corp $ 650

JP Morgan Chase & Co 571

Wells Fargo & Co 527

Comcast Corp 453

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Citigroup Inc 384

HSBC Holdings Plc 383

Goldman Sachs Group Inc 365

Anheuser-Busch InBev SA/NV 315

Mortgage-backed securities

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Value Amortized Cost, Net

September 30, 2021

March 31, 2022

(in millions of U.S.

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fixed income portfolio by country/sovereign for non-U.S.

government securities at September 30, 2021:

government securities at March 31, 2022:

(in millions of U.S.

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Republic of Korea 903 895

United Kingdom 698 688

Province of Ontario 633 654

Kingdom of Thailand 555 506

United Mexican States 552 556

Federative Republic of Brazil 586 598

Province of Quebec 454 438

United Mexican States 571 595

Kingdom of Thailand 510 498

United Kingdom 487 497

Socialist Republic of Vietnam 470 343

Commonwealth of Australia 455 486

Province of Quebec 395 405

Other Non-U.S.

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fixed income portfolio by country/sovereign for non-U.S.

corporate securities at September 30, 2021:

corporate securities at March 31, 2022:

(in millions of U.S.

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Canada 1,860 1,909

France 1,296 1,245

United States (1)

France 1,220 1,244

Australia 961 993

Japan 763 787

Switzerland 607 579

Germany 578 594

Switzerland 552 566

Netherlands 527 530

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Also, issuers of below-investment grade securities usually have higher levels of debt and are more sensitive to adverse economic conditions, such as recession or increasing interest rates, than investment grade issuers.

At September 30, 2021, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 15 percent of our fixed income portfolio.

Our below-investment grade and non-rated portfolio includes over 1,500 issuers, with the greatest single exposure being $160 million.

At March 31, 2022, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 16 percent of our fixed income portfolio.

Our below-investment grade and non-rated portfolio includes 1,700 issuers, with the greatest single exposure being $143 million.

We manage high-yield bonds as a distinct and separate asset class from investment grade bonds.

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We monitor position limits daily through an internal compliance system.

Derivative and structured securities (e.g., credit default swaps and collateralized loan obligations) are not permitted in the high-yield portfolio.

Derivative and structured securities (e.g., credit default swaps and collateralized debt obligations) are not permitted in the high-yield portfolio.

Critical Accounting Estimates

As of September 30, 2021, there were no material changes to our critical accounting estimates.

As of March 31, 2022, there were no material changes to our critical accounting estimates.

For a full discussion of our critical accounting estimates, refer to Item 7 in our 2021 Form 10-K.

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Other (including foreign exchange translation) (51) (64) 13

Balance at September 30, 2021 $ 72,631 $ 15,550 $ 57,081

Balance at March 31, 2022 $ 73,844 $ 16,646 $ 57,198

(1) Net of valuation allowance for uncollectible reinsurance.

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Asbestos and Environmental (A&E)

During the three months ende d September 30, 2021, we increased environmental net loss reserves for Brandywine managed operations by $33 million.

There was no significant A&E reserve activity during the three months ende d March 31, 2022.

A&E reserves are included in Corporate.

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Catastrophe Management

We actively monitor and manage our catastrophe risk accumulation around the world, including setting risk limits based on probable maximum loss (PML) and purchasing catastrophe reinsurance.

The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at September 30, 2021, for Worldwide, U.S.

hurricane and California earthquake events, based on our in-force portfolio at July 1, 2021 and reflecting the April 1, 2021 reinsurance program (see Natural Catastrophe Property Reinsurance Program section) as well as inuring reinsurance protection coverages.

According to the model, for the 1-in-100 return period scenario, there is a one percent chance that our pre-tax annual aggregate losses incurred in any year from U.S.

hurricane events could be in excess of $2,717 million (or 4.6 percent of our total shareholders’ equity at September 30, 2021).

These estimates assume that reinsurance recoverable is fully collectible.

We actively monitor and manage our catastrophe risk accumulation around the world from natural perils, including setting risk limits based on probable maximum loss (PML), and purchasing catastrophe reinsurance, to ensure sufficient liquidity and capital to meet the expectations of regulators, rating agencies and policyholders, and to provide shareholders with an appropriate risk-adjusted return.

Chubb uses internal and external data together with sophisticated analytical, catastrophe loss and risk modeling techniques to ensure an appropriate understanding of risk, including diversification and correlation effects, across different product lines and territories.

The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at March 31, 2022, and does not represent our expected catastrophe losses for any one year.

Modeled Net Probable Maximum Loss (PML) Pre-tax

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1-in-250 $ 7,417 13.1 % $ 5,393 9.5 % $ 1,487 2.6 %

(1) Worldwide losses are comprised of losses arising only from hurricanes, typhoons, convective storms and earthquakes and do not include “non-modeled” perils such as wildfire and flood.

(1) Worldwide aggregate is comprised of losses arising from tropical cyclones, convective storms, earthquakes, U.S.

wildfires and inland floods, and excludes "non-modeled" perils such as man-made and other catastrophe risks including pandemic.

hurricane losses include losses from wind and storm-surge and exclude rainfall.

(3) California earthquakes include fire-following perils.

(3) California earthquakes include the fire-following sub-peril.

The PML for worldwide and key U.S.

peril regions are based on our in-force portfolio at January 1, 2022, and reflect the April 1, 2022 reinsurance program (see Global Property Catastrophe Reinsurance Program section) as well as inuring reinsurance protection coverages.

These estimates assume that reinsurance recoverable is fully collectible.

According to the model, for the 1-in-100 return period scenario, there is a one percent chance that our pre-tax annual aggregate losses incurred in any year from U.S.

hurricane events could be in excess of $2,889 million (or 5.1 percent of our total shareholders’ equity at March 31, 2022).

Effective December 31, 2021, our worldwide PMLs include losses from U.S.

wildfire and U.S.

inland flood.

The above estimates of Chubb’s loss profile are inherently uncertain for many reasons, including the following:

• While the use of third-party catastrophe modeling packages to simulate potential hurricane and earthquake losses is prevalent within the insurance industry, the models are reliant upon significant meteorology, seismology, and engineering assumptions to estimate catastrophe losses.

• While the use of third-party modeling packages to simulate potential catastrophe losses is prevalent within the insurance industry, the models are reliant upon significant meteorology, seismology, and engineering assumptions to estimate catastrophe losses.

In particular, modeled catastrophe events are not always a representation of actual events and ensuing additional loss potential;

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• The potential effects of climate change add to modeling complexity;

• Changing climate conditions could impact our exposure to natural catastrophe risks, including U.S.

Published studies by leading government, academic and professional organizations predict an increase in the expected annual frequency of Atlantic-basin hurricanes and sea level rise through the end of the century over observed historical averages.

These studies contemplate expected multi-decadal impacts of climate change on sea surface temperatures, sea levels and other factors contributing to the frequency and intensity of hurricanes.

Based on preliminary stress tests conducted against the Chubb portfolio at January 1, 2021, the impacts of climate change are not expected to materially impact our reported U.S.

hurricane PML over the next 12 months.

These tests reflect current exposures only and exclude potential mitigating factors, such as changes to building codes, public or private risk mitigation, regulation and public policy.

Natural Catastrophe Property Reinsurance Program

• Changing climate conditions could impact our exposure to natural catastrophe risks.

Published studies by leading government, academic and professional organizations combined with extensive research by Chubb climate scientists reveal the potential for increases in the frequency and severity of key natural perils such as tropical cyclones, inland flood, and wildfire.

To understand the potential impacts on the Chubb portfolio, we have conducted stress tests on our peak exposure zone, namely in the U.S., using parameters outlined by the Intergovernmental Panel on Climate Change (IPCC) Climate Change 2021 report.

These parameters consider the impacts of climate change and the resulting climate peril impacts over a timescale relevant to our business.

The tests are conducted by adjusting our baseline view of risk for the perils of hurricane, inland flood, and wildfire in the U.S.

to reflect increases in frequency and severity across the modeled domains for each of these perils.

Based on these tests against the Chubb portfolio we do not expect material impacts to our baseline PMLs from climate change through December 31, 2022.

These tests reflect current exposures only and exclude potentially mitigating factors such as changes to building codes, public or private risk mitigation, regulation and public policy.

Refer to Item 7 in our 2021 Form 10-K for more information on man-made and other catastrophes.

Global Property Catastrophe Reinsurance Program

Chubb’s core property catastrophe reinsurance program provides protection against natural catastrophes impacting its primary property operations (i.e., excluding our Global Reinsurance and Life Insurance segments).

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In addition, prior to each renewal date, we consider how much, if any, coverage we intend to buy and we may make material changes to the current structure in light of various factors, including modeled PML assessment at various return periods, reinsurance pricing, our risk tolerance and exposures, and various other structuring considerations.

Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2021 through March 31, 2022, with an additional $100 million of limit for international loss occurrences compared to the expiring program.

Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2022, through March 31, 2023, with no material changes in coverage from the expiring program.

The program consists of three layers in excess of losses retained by Chubb on a per occurrence basis.

In addition, Chubb also renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2021 through March 31, 2022 with the same limits and retention and percentage placed except that the majority of terrorism coverage is on an aggregate basis above our retentions without a reinstatement.

In addition, Chubb renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2022, through March 31, 2023 with the same limits and retention and percentage placed except that the majority of terrorism coverage is on an aggregate basis above our retentions without a reinstatement.

Loss Location Layer of Loss Comments Notes

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(b) These coverages are partially placed with Reinsurers.

(c) These coverages are both part of the same Second layer within the Global Catastrophe Program and are fully placed with Reinsurers.

(d) These coverages are both part of the same Third layer within the Global Catastrophe Program and are fully placed with Reinsurers.

(c) These coverages are both part of the same Second layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(d) These coverages are both part of the same Third layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

We anticipate that positive cash flows from operations (underwriting activities and investment income) should be sufficient to cover cash outflows under most loss scenarios for the near term.

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Should the need arise, we generally have access to capital markets and to credit facilities with letter of credit capacity of $3.7 billion with a sub-limit of $1.9 billion for revolving credit.

At September 30, 2021, our usage under these facilities was $1.4 billion in letters of credit.

At March 31, 2022, our usage under these facilities was $1.3 billion in letters of credit.

Our access to credit under these facilities is dependent on the ability of the banks that are a party to the facilities to meet their funding commitments.

The facilities require that we maintain certain financial covenants, all of which we met at September 30, 2021.

The facilities require that we maintain certain financial covenants, all of which we met at March 31, 2022.

Should the existing credit providers on these facilities experience financial difficulty, we may be required to replace credit sources, possibly in a difficult market.

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The payment of dividends or other statutorily permissible distributions from our operating companies are subject to the laws and regulations applicable to each jurisdiction, as well as the need to maintain capital levels adequate to support the insurance and reinsurance operations, including financial strength ratings issued by independent rating agencies.

During the nine months ended September 30, 2021, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows.

During the three months ended March 31, 2022, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows.

We assess which subsidiaries to draw dividends from based on a number of factors.

Considerations such as regulatory and legal restrictions as well as the subsidiary’s financial condition are paramount to the dividend decision.

Chubb Limited received dividends of $3.1 billion and $800 million from its Bermuda subsidiaries during the nine months ended September 30, 2021 and 2020, respectively.

Chubb Limited received cash dividends of $21 million and $110 million and non-cash dividends of $536 million and $734 million from a Swiss subsidiary during the nine months ended September 30, 2021 and 2020, respectively.

The payment of any dividends from CGM or its subsidiaries is subject to applicable U.K.

insurance laws and regulations.

In addition, the release of funds by Syndicate 2488 to subsidiaries of CGM is subject to regulations promulgated by the Society of Lloyd’s.

Chubb Limited received dividends of $1.0 billion and $740 million from its Bermuda subsidiaries during the three months ended March 31, 2022 and 2021, respectively.

insurance subsidiaries of Chubb INA Holdings Inc.

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These laws and regulations sometimes include restrictions that limit the amount of dividends payable without prior approval of regulatory insurance authorities.

Chubb Limited received no dividends from CGM or Chubb INA during the nine months ended September 30, 2021 and 2020.

Chubb Limited received no dividends from Chubb INA during the three months ended March 31, 2022 and 2021.

Debt issued by Chubb INA is serviced by statutorily permissible distributions by Chubb INA’s insurance subsidiaries to Chubb INA as well as other group resources.

Chubb INA received $910 million and $180 million from its subsidiaries during the nine months ended September 30, 2021 and 2020, respectively.

Chubb INA received no dividends from its subsidiaries during the three months ended March 31, 2022 and 2021.

Our sources of liquidity include cash from operations, routine sales of investments, and financing arrangements.

The following is a discussion of our cash flows for the nine months ended September 30, 2021 and 2020.

Operating cash flows were $8.5 billion in the nine months ended September 30, 2021, compared to $7.2 billion in the prior year period.

The increase of $1.3 billion is due to higher premiums collected reflecting premium growth, principally in our commercial lines, partially offset by higher taxes paid.

Cash used for investing was $3.8 billion in the nine months ended September 30, 2021, compared to $6.7 billion in the prior year period, a decrease of $2,978 million.

Cash used for investing in the current year included lower net purchases of equity securities of $2.0 billion and lower cash used related to acquisitions of Huatai Group ownership interest of $1.3 billion, partially offset by higher private equity contributions, net of distributions received, of $513 million.

Cash used for financing was $4.8 billion in the nine months ended September 30, 2021, compared to $234 million in the prior year period, an increase of $4.6 billion principally from more shares repurchased in the current year.

The prior year included $988 million of net proceeds from the issuance of long-term debt.

The following is a discussion of our cash flows for the three months ended March 31, 2022 and 2021.

Operating cash flows were $2.4 billion in the three months ended March 31, 2022, compared to $2.1 billion in the prior year period.

The increase of $335 million is due to higher premiums collected reflecting premium growth, principally in our commercial lines, and lower taxes paid, partially offset by higher losses paid.

Cash used for investing was $995 million in the three months ended March 31, 2022, compared to $1.3 billion in the prior year period, a decrease of $257 million.

Cash used for investing in the current year included higher net sales of equity securities of $730 million, partially offset by higher private equity contributions, net of distributions received, of $241 million, and higher net purchases of fixed maturities of $95 million.

In addition, cash used related to acquisitions of Huatai Group ownership interest was $113 million in 2022 compared to $65 million in 2021.

Cash used for financing was $1.3 billion in the three months ended March 31, 2022, compared to $812 million in the prior year period, an increase of $490 million, principally from more shares repurchased in the current year.

Both internal and external forces influence our financial condition, results of operations, and cash flows.

Claim settlements, premium levels, and investment returns may be impacted by changing rates of inflation and other economic conditions.

In many cases, significant periods of time, ranging up to several years or more, may lapse between the occurrence of an insured loss, the reporting of the loss to us, and the settlement of the liability for that loss.

cases, significant periods of time, ranging up to several years or more, may lapse between the occurrence of an insured loss, the reporting of the loss to us, and the settlement of the liability for that loss.

We use repurchase agreements as a low-cost funding alternative.

At September 30, 2021, there were $1.4 billion in repurchase agreements outstanding with various maturities over the next eight months.

At March 31, 2022, there were $1.4 billion in repurchase agreements outstanding with various maturities over the next seven months.

Capital Resources

Capital resources consist of funds deployed or available to be deployed to support our business operations.

September 30 December 31

March 31 December 31

(in millions of U.S.

dollars, except for ratios) 2022 2021

Short-term debt $ 1,474 $ 999

Long-term debt 14,585 15,169

Total financial debt 16,059 16,168

Trust preferred securities 308 308

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Ratio of financial debt plus trust preferred securities to total capitalization 22.4 % 21.6 %

The ratios of financial debt to total capitalization in the table above are higher at March 31, 2022 compared to December 31, 2021 from the decline in shareholders' equity, principally reflecting net unrealized depreciation on investments in the current period compared to net unrealized appreciation in 2021.

Repurchase agreements are excluded from the table above and are disclosed separately from short-term debt in the Consolidated balance sheets.

The repurchase agreements are collateralized borrowings where we maintain the right and ability to redeem the collateral on short notice, unlike short-term debt which comprises the current maturities of our long-term debt instruments.

For the nine months ended September 30, 2021, we repurchased $3.96 billion of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorizations.

At September 30, 2021, there were 43,144,862 Common Shares in treasury with a weighted average cost of $153.47 per share, and $3.55 billion in share repurchase authorization remained through June 30, 2022.

For the period October 1, 2021 through October 27, 2021, we repurchased 167,700 Common Shares for a total of $29 million in a series of open market transactions.

At October 27, 2021, $3.52 billion in share repurchase authorization remained.

For the three months ended March 31, 2022, we repurchased $1.0 billion of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorization.

At March 31, 2022, there were 35,880,387 Common Shares in treasury with a weighted-average cost of $158.85 per share, and $1.6 billion in share repurchase authorization remained through June 30, 2022.

For the period April 1, 2022 through April 28, 2022, we repurchased 115,000 Common Shares for a total of $24 million in a series of open market transactions.

At April 28, 2022, $1.6 billion in share repurchase authorization remained.

We generally maintain the ability to issue certain classes of debt and equity securities via a Securities and Exchange Commission (SEC) shelf registration statement which is renewed every three years.

This allows us capital market access for refinancing as well as for unforeseen or opportunistic capital needs.

On October 6, 2021, we filed a new shelf registration statement which allows us to issue an unlimited amount of certain classes of debt and equity from time to time, replacing the shelf registration statement that was filed in October 2018.

This new shelf registration statement expires in October 2024.

We have paid dividends each quarter since we became a public company in 1993.

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The Board determines the record and payment dates at which the annual dividend may be paid until the date of the 2022 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

The four quarterly installments each of $0.80 per share were distributed by the Board as expected.

The annual dividend approved in May 2021 represented a $0.08 per share increase ($0.02 per quarter) over the prior year dividend.

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March 18, 2022 April 8, 2022 $0.80 (CHF 0.74)

June 18, 2021 July 9, 2021 $0.80 (CHF 0.71)

September 17, 2021 October 8, 2021 $0.80 (CHF 0.73)

Information provided in connection with outstanding debt of subsidiaries

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(Subsidiary Issuer)

September 30 December 31 September 30 December 31

March 31 December 31 March 31 December 31

(in millions of U.S.

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Cash 142 1 31 580

Due from parent guarantor/subsidiary issuer, net — 479 143 —

Due from subsidiaries that are not issuers or guarantors, net 2,022 3,043 — —

Due from parent guarantor/subsidiary issuer 2 2 732 348

Due from subsidiaries that are not issuers or guarantors 1,825 1,805 567 526

Other assets 8 16 2,197 1,667

Total assets $ 1,977 $ 1,824 $ 3,677 $ 3,270

Due to parent guarantor/subsidiary issuer, net $ 143 $ — $ — $ 479

Due to subsidiaries that are not issuers or guarantors, net — — 1,886 2,529

Due to parent guarantor/subsidiary issuer $ 732 $ 348 $ 2 $ 2

Due to subsidiaries that are not issuers or guarantors 325 241 2,130 1,647

Affiliated notional cash pooling programs — 8 — —

Short-term debt — — 1,474 999

Long-term debt — — 14,585 15,169

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The following table presents the condensed statements of operations and comprehensive income of Chubb Limited and Chubb INA Holdings Inc., excluding equity in earnings from non-guarantor subsidiaries:

Nine Months Ended September 30, 2021 Chubb Limited

Three Months Ended March 31, 2022 Chubb Limited

(Parent Guarantor) Chubb INA Holdings Inc.

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(in millions of U.S.

Net investment income $ 3 $ 1

Net investment income (loss) $ 2 $ (1)

Net realized gains (loss) 24 96

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis