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Item 1. Financial Statements

2022-07-29 compared with 2022-04-29 · 337 added, 135 removed, 1032 unchanged (31% of the section changed)

2 unchanged sentences

Chubb Limited and Subsidiaries

March 31 December 31

June 30 December 31

(in millions of U.S.

55 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

4 unchanged sentences

Net investment income 888 884 1,710 1,747

Net realized gains (losses) (includes $( 136 ) and $ 24 reclassified from AOCI)

Net realized gains (losses) (includes $( 442 ), $ 12 , $( 578 ), and $ 36

reclassified from AOCI)

( 504 ) ( 33 ) ( 403 ) 854

Total revenues 9,941 9,664 19,610 19,635

6 unchanged sentences

Amortization of purchased intangibles 71 73 142 145

Cigna integration expenses 3 — 3 —

Total expenses 8,433 7,082 15,773 14,415

1 unchanged sentence

Income tax expense (includes $( 77 ), $( 6 ), $( 99 ), and $( 2 ) on unrealized gains and losses reclassified from AOCI)

293 317 648 655

Net income $ 1,215 $ 2,265 $ 3,189 $ 4,565

Other comprehensive loss

Unrealized depreciation $ ( 4,788 ) $ ( 2,293 )

Other comprehensive income (loss)

Unrealized appreciation (depreciation) $ ( 4,786 ) $ 706 $ ( 9,574 ) $ ( 1,587 )

Reclassification adjustment for net realized (gains) losses included in net income

442 ( 12 ) 578 ( 36 )

( 4,344 ) 694 ( 8,996 ) ( 1,623 )

Cumulative foreign currency translation adjustment ( 777 ) 308 ( 710 ) 330

Postretirement benefit liability adjustment 5 ( 9 ) 24 ( 37 )

Other comprehensive loss, before income tax ( 4,566 ) ( 2,323 )

Income tax benefit related to OCI items 812 412

Other comprehensive loss ( 3,754 ) ( 1,911 )

Other comprehensive income (loss), before income tax ( 5,116 ) 993 ( 9,682 ) ( 1,330 )

Income tax (expense) benefit related to OCI items 245 ( 129 ) 1,057 283

Other comprehensive income (loss) ( 4,871 ) 864 ( 8,625 ) ( 1,047 )

Comprehensive income (loss) $ ( 3,656 ) $ 3,129 $ ( 5,436 ) $ 3,518

5 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

28 unchanged sentences

Change in period, before reclassification from AOCI, net of income tax

benefit of $ 834 and $ 401

(expense) benefit of $ 292 , $( 107 ), $ 1,126 , and $ 294

( 4,494 ) 599 ( 8,448 ) ( 1,293 )

Amounts reclassified from AOCI, net of income tax (expense) benefit of $( 22 ) and $ 4

Change in period, net of income tax benefit of $ 812 and $ 405

Amounts reclassified from AOCI, net of income tax expense of $( 77 ),

$( 6 ), $( 99 ), and $( 2 )

365 ( 18 ) 479 ( 38 )

Change in period, net of income tax (expense) benefit of $ 215 , $( 113 ),

$ 1,027 , and $ 292

( 4,129 ) 581 ( 7,969 ) ( 1,331 )

Balance – end of period ( 5,713 ) 3,342 ( 5,713 ) 3,342

1 unchanged sentence

Balance – beginning of period ( 2,075 ) ( 1,613 ) ( 2,146 ) ( 1,637 )

Change in period, net of income tax benefit of $ 4 and $ 2

Change in period, net of income tax (expense) benefit of $ 31 , $( 18 ),

$ 35 , and $( 16 )

( 746 ) 290 ( 675 ) 314

Balance – end of period ( 2,821 ) ( 1,323 ) ( 2,821 ) ( 1,323 )

1 unchanged sentence

Balance – beginning of period 255 ( 190 ) 240 ( 167 )

Change in period, net of income tax (expense) benefit of $( 4 ) and $ 5

Change in period, net of income tax (expense) benefit of $( 1 ), $ 2 ,

$( 5 ), and $ 7

4 ( 7 ) 19 ( 30 )

Balance – end of period 259 ( 197 ) 259 ( 197 )

4 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Six Months Ended

(in millions of U.S.

33 unchanged sentences

Other ( 253 ) ( 106 )

Net cash flows used for investing activities ( 995 ) ( 1,252 )

Net cash flows from (used for) investing activities 1,125 ( 2,025 )

Cash flows from financing activities

33 unchanged sentences

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated balance sheets that total to the amounts shown in the Consolidated statements of cash flows:

March 31 December 31

June 30 December 31

(in millions of U.S.

dollars) 2022 2021

Cash $ 1,734 $ 1,659

$ 7,122 $ 1,659

Restricted cash 117 152

Total cash and restricted cash shown in the Consolidated statements of cash flows $ 7,239 $ 1,811

During the three months ended March 31, 2022, Goodwill increased $ 31 million, primarily reflecting the impact of foreign exchange.

(1) O n July 1, 2022, we paid $ 5.36 billion for the acquisition of Cigna's life and non-life insurance companies in six Asia-Pacific markets.

Refer to Note 2 for additional information .

During the six months ended June 30, 2022, Goodwill decreased $ 168 million, primarily reflecting the impact of foreign exchange.

d) Accounting guidance not yet adopted

8 unchanged sentences

Cigna’s Life and Accident and Health (A&H) Insurance Business in Asia-Pacific Markets

On October 7, 2021, we entered into a definitive agreeme nt to acquire the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna in six Asia-Pacific markets, for approximately $ 5.72 billion in cash, subject to certain post-closing purchase adjustments.

The transaction is expected to be completed in 2022.

The timing of completion is subject to required regulatory approvals a nd customary closing conditions.

On July 1, 2022 , we completed the acquisition of the life and non-life insurance companies that house the personal accident, supplemental health, and life insurance business of Cigna in six Asia-Pacific markets.

Chubb paid $ 5.36 billion in cash for the operations, which include Cigna's accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia.

The reduction in the final purchase price from the original agreement reflects the impacts of rising interest rates and foreign exchange rates on acquired book value and other minor adjustments.

This complementary strategic acquisition expands our presence and advances our long-term growth opportunity in the Asia-Pacific region.

Effective July 1, 2022, the results of operations of this acquired business will be reported primarily in our Life Insurance segment and, to a lesser extent, our Overseas General Insurance segment.

Chubb maintains a direct investment in Huatai Insurance Group Co., Ltd.

5 unchanged sentences

Huatai Group's insurance operations have more than 600 branches and approximately 19 million customers in China.

As of March 31, 2022, Chubb's aggregate ownership interest in Huatai Group was approximately 47.3 percent.

As of June 30, 2022, Chubb's aggregate ownership interest in Huatai Group was approximately 47.3 percent.

Chubb applies the equity method of accounting to its investment in Huatai Group by recording its share of net income or loss in Other (income) expense in the Consolidated statements of operations.

5 unchanged sentences

As Chubb’s ownership interest increases, we will continue to evaluate the appropriateness of consolidation accounting in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation , and other applicable regulations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

a) Fixed maturities

March 31, 2022 Amortized

June 30, 2022 Amortized

Cost Valuation Allowance Gross

19 unchanged sentences

$ 9,566 $ ( 34 ) $ 9,532 $ 18 $ ( 217 ) $ 9,333

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

December 31, 2021 Amortized

20 unchanged sentences

$ 10,153 $ ( 35 ) $ 10,118 $ 533 $ ( 4 ) $ 10,647

The following table presents the amortized cost of our HTM securities according to S&P rating:

March 31, 2022 December 31, 2021

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents the amortized cost of our held to maturity securities according to S&P rating:

June 30, 2022 December 31, 2021

(in millions of U.S.

7 unchanged sentences

Total $ 9,566 100 % $ 10,153 100 %

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents fixed maturities by contractual maturity:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions of U.S.

18 unchanged sentences

b) Gross unrealized loss

Fixed maturities in an unrealized loss position at March 31, 2022 and December 31, 2021 comprised both investment grade and below investment grade securities for which fair value declined, principally due to rising interest rates since the date of purchase.

Fixed maturities in an unrealized loss position at June 30, 2022 and December 31, 2021 comprised both investment grade and below investment grade securities for which fair value declined, principally due to rising interest rates since the date of purchase.

Refer to Note 3 in the 2021 Form 10-K for further information on factors considered in the evaluation of expected credit losses.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following tables present, for Available for Sale (AFS) fixed maturities in an unrealized loss position (including securities on loan) that are not deemed to have expected credit losses, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position:

0 – 12 Months Over 12 Months Total

March 31, 2022 Fair Value Gross

June 30, 2022 Fair Value Gross

Loss Fair Value Gross

7 unchanged sentences

Total AFS fixed maturities $ 62,944 $ ( 5,004 ) $ 5,372 $ ( 737 ) $ 68,316 $ ( 5,741 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

0 – 12 Months Over 12 Months Total

9 unchanged sentences

Total AFS fixed maturities $ 25,041 $ ( 465 ) $ 2,159 $ ( 104 ) $ 27,200 $ ( 569 )

During the three months ended June 30, 2022, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 485 million necessary due to limitations on the utilization of these losses.

As part of evaluating whether it was more likely than not that we could realize these losses, we considered realized gains, carryback capacity and available tax planning strategies.

The following table presents a roll-forward of valuation allowance for expected credit losses on fixed maturities:

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

dollars) 2022 2021 2022 2021

Available for sale

Valuation allowance for expected credit losses - beginning of period $ 27 $ 15 $ 14 $ 20

Provision for expected credit loss 61 1 78 5

Recovery of expected credit loss ( 10 ) ( 5 ) ( 14 ) ( 14 )

Valuation allowance for expected credit losses - end of period $ 78 $ 11 $ 78 $ 11

Held to maturity

Valuation allowance for expected credit losses - beginning of period $ 34 $ 43 $ 35 $ 44

Provision for expected credit loss 1 — 1 —

Recovery of expected credit loss ( 1 ) ( 6 ) ( 2 ) ( 7 )

Valuation allowance for expected credit losses - end of period $ 34 $ 37 $ 34 $ 37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

c) Net realized gains (losses)

The following table presents the components of Net realized gains (losses):

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

5 unchanged sentences

Impairment (1)

( 53 ) ( 1 ) ( 89 ) ( 1 )

Total fixed maturities ( 442 ) 12 ( 578 ) 36

6 unchanged sentences

Other derivative instruments 9 3 10 2

— — ( 74 ) ( 1 )

Net realized gains (losses) (pre-tax) $ ( 504 ) $ ( 33 ) $ ( 403 ) $ 854

5 unchanged sentences

dollars) Equity Securities Other Investments Total Equity Securities Other Investments Total

Net gains recognized during the period $ 56 $ 55 $ 111 $ 367 $ 38 $ 405

Net gains (losses) recognized during the period $ ( 263 ) $ 4 $ ( 259 ) $ 150 $ 62 $ 212

Net gains recognized from sales of securities 163 — 163 45 — 45

Unrealized gains (losses) recognized for securities still held at reporting date $ ( 426 ) $ 4 $ ( 422 ) $ 105 $ 62 $ 167

Six Months Ended

(in millions of U.S.

dollars) Equity Securities Other Investments Total Equity Securities Other Investments Total

Net gains (losses) recognized during the period $ ( 207 ) $ 59 $ ( 148 ) $ 517 $ 100 $ 617

Net gains recognized from sales of securities 418 — 418 90 — 90

Unrealized gains (losses) recognized for securities still held at reporting date $ ( 625 ) $ 59 $ ( 566 ) $ 427 $ 100 $ 527

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents a roll-forward of valuation allowance for expected credit losses on fixed maturities:

Three Months Ended

(in millions of U.S.

dollars) 2022 2021

Available for sale

Valuation allowance for expected credit losses - beginning of period $ 14 $ 20

Provision for expected credit loss 17 4

Recovery of expected credit loss ( 4 ) ( 9 )

Valuation allowance for expected credit losses - end of period $ 27 $ 15

Held to maturity

Valuation allowance for expected credit losses - beginning of period $ 35 $ 44

Recovery of expected credit loss ( 1 ) ( 1 )

Valuation allowance for expected credit losses - end of period $ 34 $ 43

d) Alternative investments

1 unchanged sentence

The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:

Period of Underlying Assets March 31, 2022 December 31, 2021

Period of Underlying Assets June 30, 2022 December 31, 2021

(in millions of U.S.

28 unchanged sentences

Vintage funds where the initial fund term has expired

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Investment funds employ various investment strategies, such as long/short equity and arbitrage/distressed.

13 unchanged sentences

We have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions.

Included in restricted assets at March 31, 2022 and December 31, 2021 are investments, primarily fixed maturities, totaling $ 15,954 million and $ 17,092 million, respectively, and cash of $ 180 million and $ 152 million, respectively.

Included in restricted assets at June

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

30, 2022 and December 31, 2021 are investments, primarily fixed maturities, totaling $ 17,392 million and $ 17,092 million, respectively, and cash of $ 117 million and $ 152 million, respectively.

The following table presents the components of restricted assets:

March 31 December 31

June 30 December 31

(in millions of U.S.

20 unchanged sentences

We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

We use pricing services to obtain fair value measurements for the majority of our investment securities.

15 unchanged sentences

Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant.

Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing) and may require the use of models to be priced.

Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing) and may

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

require the use of models to be priced.

The lack of market based inputs may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur.

18 unchanged sentences

Excluded from the valuation hierarchy is the corresponding liability related to Chubb’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the Consolidated balance sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Investment derivative instruments

15 unchanged sentences

Separate account assets are recorded in Other assets in the Consolidated balance sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Guaranteed living benefits

5 unchanged sentences

Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy

March 31, 2022 Level 1 Level 2 Level 3 Total

June 30, 2022 Level 1 Level 2 Level 3 Total

(in millions of U.S.

17 unchanged sentences

Investment derivative instruments $ 163 $ — $ — $ 163

Other derivative instruments 63 — — 63

Total liabilities measured at fair value $ 163 $ — $ 832 $ 995

(1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 10,947 million, policy loans of $ 244 million and other investments of $ 51 million at March 31, 2022 measured using NAV as a practical expedient.

(1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 11,238 million, policy loans of $ 245 million and other investments of $ 50 million at June 30, 2022 measured using NAV as a practical expedient.

(2) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

32 unchanged sentences

Unobservable Inputs Ranges Weighted Average (1)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

$ 832 $ 745 Actuarial model Lapse rate 3 % – 31 %

12 unchanged sentences

The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities.

For the three months ended March 31, 2022 and 2021, no material refinements were made to the model.

For the three and six months ended June 30, 2022 and 2021, no material refinements were made to the model.

For detailed information on our lapse and annuitization rate assumptions, refer to Note 4 to the Consolidated Financial Statements of our 2021 Form 10-K.

2 unchanged sentences

Three Months Ended

March 31, 2022

June 30, 2022

(in millions of U.S.

16 unchanged sentences

(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

Assets Liabilities

Three Months Ended

June 30, 2021

(in millions of U.S.

dollars) Available-for-Sale Debt Securities Equity

securities Short-term investments Other

investments GLB (1)

Corporate and asset-

backed securities Mortgage-backed securities

Balance, beginning of period $ 650 $ 1,612 $ 51 $ 75 $ 1 $ 10 $ 760

Transfers into Level 3 — 29 — — — — —

Transfers out of Level 3 ( 10 ) ( 3 ) — — — — —

Change in Net Unrealized Gains/Losses in OCI 5 6 — — — — —

Net Realized Gains/Losses 3 6 — 5 — — 8

Purchases 54 240 1 4 2 — —

Sales ( 9 ) ( 50 ) ( 1 ) ( 6 ) — — —

Settlements ( 51 ) ( 152 ) ( 4 ) — — — —

Other — — — — — — ( 8 )

Balance, end of period $ 642 $ 1,688 $ 47 $ 78 $ 3 $ 10 $ 760

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet date $ — $ 6 $ — $ 4 $ — $ — $ 8

Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet date $ 7 $ 6 $ — $ — $ — $ — $ —

(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

1 unchanged sentence

Assets Liabilities

Three Months Ended

March 31, 2021

Six Months Ended

June 30, 2022

(in millions of U.S.

dollars) Available-for-Sale Debt Securities Equity

securities Short-term investments GLB (1)

Corporate and asset-

backed securities Mortgage-backed securities

Balance, beginning of period $ 633 $ 2,049 $ 26 $ 77 $ 7 $ 745

Transfers into Level 3 23 39 — 1 — —

Transfers out of Level 3 ( 23 ) ( 93 ) ( 5 ) — — —

Change in Net Unrealized Gains/Losses in OCI ( 54 ) ( 52 ) — — — —

Net Realized Gains/Losses ( 2 ) — — 4 — 108

Purchases 69 494 — 3 7 —

Sales ( 25 ) ( 51 ) — ( 4 ) — —

Settlements ( 72 ) ( 125 ) ( 2 ) — ( 5 ) —

Other — — — — — ( 21 )

Balance, end of period $ 549 $ 2,261 $ 19 $ 81 $ 9 $ 832

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet date $ ( 2 ) $ ( 1 ) $ — $ 3 $ — $ 108

Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet date $ ( 54 ) $ ( 52 ) $ — $ — $ — $ —

(1) Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

Assets Liabilities

Six Months Ended

June 30, 2021

(in millions of U.S.

dollars) Available-for-Sale Debt Securities Equity

securities Short-term investments Other

4 unchanged sentences

Transfers into Level 3 — 46 — — — — —

Transfers out of Level 3 ( 10 ) ( 3 ) — — — — —

Change in Net Unrealized Gains/Losses in OCI 13 12 — — — — —

16 unchanged sentences

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:

March 31, 2022 Fair Value Net Carrying

June 30, 2022 Fair Value Net Carrying

(in millions of U.S.

28 unchanged sentences

Reinsurance recoverable on ceded reinsurance

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions of U.S.

9 unchanged sentences

Chubb Limited and Subsidiaries

The increase in reinsurance recoverable on losses and loss expenses was primarily due to unfavorable prior period development in certain lines and higher underlying ceded exposures due to premium growth.

The increase in reinsurance recoverable on losses and loss expenses was primarily due to prior period development in certain lines and higher underlying ceded exposures due to premium growth.

The following table presents a roll-forward of valuation allowance for uncollectible reinsurance related to Reinsurance recoverable on loss and loss expenses:

Three Months Ended

Six Months Ended

(in millions of U.S.

8 unchanged sentences

The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:

Three Months Ended

Six Months Ended

(in millions of U.S.

19 unchanged sentences

(1) Net of valuation allowance for uncollectible reinsurance.

(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $ 165 million and $ 4 million for the three months ended March 31, 2022 and 2021, respectively.

Gross and net unpaid losses and loss expenses increased $ 901 million and $ 439 million, respectively, for the three months ended March 31, 2022, driven by an increase in underlying exposure due to premium growth, partially offset by catastrophe loss payments, favorable prior period development, and crop activity.

(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $ 164 million and $ 27 million for the six months ended June 30, 2022 and 2021, respectively.

Gross and net unpaid losses and loss expenses increased $ 1,149 million and $ 760 million, respectively, for the six months ended June 30, 2022, driven by an increase in underlying exposure due to premium growth, partially offset by catastrophe loss payments, favorable prior period development, and favorable foreign exchange movement.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

5 unchanged sentences

The following table summarizes (favorable) and adverse PPD by segment:

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

(in millions of U.S.

dollars) Long-tail Short-tail Total

dollars) Long-tail Short-tail Total Long-tail Short-tail Total

North America Commercial P&C Insurance $ ( 266 ) $ ( 21 ) $ ( 287 ) $ ( 286 ) $ ( 109 ) $ ( 395 )

15 unchanged sentences

North America Commercial P&C Insurance

For the three months ended March 31, 2022, net favorable PPD was $ 108 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

For the three months ended June 30, 2022, net favorable PPD was $ 287 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net favorable development of $ 266 million in long-tail business, primarily from:

• Net favorable development of $ 38 million in workers’ compensation, mainly in accident years 2017 and prior, which were impacted by lower than expected loss emergence and related updates to loss development patterns;

• Net favorable development of $ 38 million in personal casualty business, mainly in accident years 2020 and 2021, which had lower than expected reported loss emergence and lower than expected loss frequency;

• Net adverse development of $ 60 million in excess and umbrella portfolios, in accident years 2019 and prior, driven by higher than expected loss emergence.

• Net favorable development of $ 286 million in workers’ compensation lines.

This included favorable development of $ 59 million related to our annual assessment of multi-claimant events, including industrial accidents, in the 2021 accident year.

Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses.

The remaining overall favorable development was mainly in accident years 2017 and prior, driven by lower than expected loss experience and related updates to loss development factors;

• Net favorable development of $ 132 million in primary general liability portfolios, driven by lower than expected paid and reported case incurred activity in accident years 2017 and prior;

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

• Net favorable development of $ 88 million in short-tail business, primarily from:

• Net favorable development of $ 76 million in A&H, in accident years 2020 and 2021, driven by lower than expected loss emergence;

• Net favorable development of $ 38 million in surety, mainly in accident year 2020, driven by lower than expected loss emergence;

• Net adverse development of $ 21 million in small commercial property lines, mainly in accident year 2021, driven by higher than expected loss emergence.

For the three months ended March 31, 2021, net favorable PPD was $ 127 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net adverse development of $ 123 million in commercial automobile liability, including $ 90 million in our high deductible and excess automobile liability portfolios, driven by adverse reported loss experience, mainly impacting accident years 2018 through 2021.

For the six months ended June 30, 2022, net favorable PPD was $ 395 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net favorable development of $ 286 million in long-tail business, primarily from:

• Net favorable development of $ 51 million in financial lines (errors & omissions and third-party cyber risk), in accident years 2016 and 2017, from lower than expected loss emergence, partly offset by higher than expected development in accident year 2019;

• Net favorable development of $ 35 million in voluntary environmental lines, in accident years 2017 and prior, from lower than expected loss emergence, partly offset by higher than expected development in accident year 2019;

• Net adverse development of $ 57 million in excess and umbrella portfolios, with accident years 2015 through 2019 continuing to experience higher than expected loss development, partly offset by favorable development in accident years 2014 and prior.

• Net favorable development of $ 81 million in short-tail business, primarily from:

• Net favorable development of $ 49 million in surety, mainly in accident years 2018 and 2019, driven by lower than expected loss emergence;

• Net favorable development of $ 48 million in A&H, in accident years 2019 and 2020, where loss emergence was lower than expected;

• Net favorable development of $ 25 million in property and marine coverages in accident year 2020, driven by lower than expected non-catastrophe loss development;

• Net adverse development of $ 41 million in first-party cyber risk, in accident years 2019 and 2020, which experienced higher than expected loss development as well as heightened frequency and severity.

North America Personal P&C Insurance

For the three months ended March 31, 2022, net favorable PPD was $ 51 million, in accident year 2021, which experienced better than expected loss emergence in homeowners.

For the three months ended March 31, 2021, net favorable PPD was $ 40 million, in accident year 2020, which experienced better than expected non-catastrophe loss emergence in homeowners and valuables.

North America Agricultural Insurance

For the three months ended March 31, 2022, net favorable PPD was $ 26 million, mainly due to better than expected crop yield results related to the 2021 crop year.

• Net favorable development of $ 328 million in workers’ compensation lines, mainly due to the same factors experienced for the three months ended June 30, 2022, as described above;

• Net favorable development of $ 136 million in primary general liability portfolios, mainly due to the same factors experienced for the three months ended June 30, 2022, as described above;

• Net adverse development of $ 116 million in commercial automobile liability, mainly due to the same factors experienced for the three months ended June 30, 2022, as described above.

• Net favorable development of $ 109 million in short-tail business, primarily from net favorable development of $ 78 million in A&H, in accident years 2020 and 2021, driven by lower than expected loss emergence.

For the three months ended June 30, 2021, net favorable PPD was $ 156 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net favorable development of $ 96 million in long-tail business, primarily from:

• Net favorable development of $ 137 million in workers’ compensation lines.

This included favorable development of $ 36 million related to our annual assessment of multi-claimant events, including industrial accidents, in the 2020 accident year.

Consistent with prior years, we reviewed these potential exposures after the close of the accident year to allow for late reporting or identification of significant losses.

The remaining overall favorable development was mainly in accident years 2016 and prior, driven by lower than expected loss experience and related updates to loss development factors;

• Net favorable development of $ 45 million in general liability portfolios, driven by lower than expected paid and reported case incurred activity in accident years 2017 and prior, partly offset by higher than expected reported case incurred activity in accident years 2018 and 2019;

• Net adverse development of $ 76 million in commercial automobile liability, driven by adverse reported loss experience, mainly impacting accident years 2017 and 2019.

• Net favorable development of $ 60 million in short-tail business, primarily from net favorable development of $ 41 million in surety, $ 35 million of which was due to lower than expected COVID-19 claim activity in accident year 2020.

The remaining favorable development is predominantly driven by automobile, which experienced lower than expected claim development related to physical damage coverages in the 2020 accident year.

For the six months ended June 30, 2021, net favorable PPD was $ 283 million, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net favorable development of $ 142 million in long-tail business, primarily from:

• Net favorable development of $ 158 million in workers’ compensation lines, mainly due to the same factors experienced for the three months ended June 30, 2021, as described above;

• Net adverse development of $ 74 million in commercial automobile liability, due to the same factors experienced for the three months ended June 30, 2021.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

• Net favorable development of $ 141 million in short-tail business, primarily from net favorable development of $ 89 million in surety, mainly in accident years 2018 through 2020, driven by lower than expected loss emergence.

Overseas General Insurance

For the three months ended March 31, 2022, net favorable PPD was $ 60 million, across short-tail lines, mainly in accident years 2020 and 2021, primarily from:

• Net favorable development of $ 24 million in property lines driven by favorable loss emergence in Continental Europe;

• Net favorable development of $ 22 million in A&H lines driven by favorable loss developments across all regions.

For the three months ended March 31, 2021, net favorable PPD was $ 25 million, which reflects favorable loss experience across several lines, mainly in accident year 2020, none of which were significant individually or in the aggregate.

For the three months ended June 30, 2022, net favorable PPD was $ 173 million across short-tail lines, which was the net result of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net favorable development of $ 53 million in A&H lines driven by favorable loss developments across all regions in accident years 2019 through 2021;

• Net favorable development of $ 44 million in property lines mainly due to favorable loss development across most regions, favorable catastrophe development in accident years 2019 through 2021, specific case reductions, and salvage and subrogation recoveries in accident year 2018 and prior;

• Net favorable development of $ 41 million in personal lines mainly due to favorable loss frequency in Latin America and Asia Pacific automobile in accident years 2020 and 2021, UK and Asia Pacific high net worth homeowners in accident year 2021 and Asia Pacific and Continental Europe cell phones in accident year 2021.

For the six months ended June 30, 2022, net favorable PPD was $ 233 million across a number of short-tail lines, which was the net of several underlying favorable and adverse movements, and was driven by the following principal changes:

• Net favorable development of $ 75 million in A&H lines, net favorable development of $ 67 million in property lines, and net favorable development of $ 53 million in personal lines, mainly due to the same factors experienced for the three months ended June 30, 2022.

• Net favorable development of $ 161 million in short-tail business, primarily from:

• Net favorable development of $ 50 million, in property lines in accident years 2019 and 2020, including a $ 21 million favorable reduction in COVID-19 estimates in accident year 2020.

The remaining favorable development was across most regions in accident years 2019 and 2020;

• Net favorable development of $ 49 million, in A&H lines, mainly due to favorable loss development across all regions in accident years 2019 and 2020;

• Net favorable development of $ 31 million in marine lines in accident years 2018 through 2020, driven by favorable loss development, specific claim reductions, and salvage and subrogation recoveries in Continental Europe and Asia Pacific.

For the six months ended June 30, 2021, net favorable PPD in short-tail business was $ 186 million principally comprising favorable development of $ 58 million in property lines, and $ 55 million in A&H lines, due to the same factors experienced for the three months ended June 30, 2021.

Global Reinsurance

For the three and six months ended June 30, 2022, net adverse PPD was $ 25 million and $ 22 million, respectively, driven by adverse development of $ 32 million in property lines, mainly in accident years 2020 and 2021.

The adverse development was driven by higher costs due to the current economic environment and increased litigation costs.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the three and six months ended June 30, 2022, net adverse PPD was $ 191 million and $ 199 million, respectively, driven by adverse development of $ 155 million for molestation claims, primarily from updated modeling and specific account reviews.

The remainder of the adverse development was driven by increased claim costs on non-A&E runoff workers’ compensation exposures, and charges relating to run-off operating expenses incurred.

For the three and six months ended June 30, 2021, net adverse PPD was $ 88 million and $ 97 million, respectively, driven by adverse development of $ 68 million for molestation claims.

The remainder of the adverse development was driven by increased claim costs on non-A&E runoff workers’ compensation exposures, and charges relating to run-off operating expenses incurred.

Commitments, contingencies, and guarantees

23 unchanged sentences

The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Balance Sheet

19 unchanged sentences

The concept of a notional value does not apply to the GLB reinsurance contracts.

At March 31, 2022 and December 31, 2021, net derivative liabilities of $ 107 million and $ 123 million, respectively, included in the table above were subject to a master netting agreement.

At June 30, 2022 and December 31, 2021, net derivative assets of $ 46 million and net derivative liabilities of $ 123 million, respectively, included in the table above were subject to a master netting agreement.

The remaining derivatives included in the table above were not subject to a master netting agreement.

The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

4 unchanged sentences

Convertible securities (1)

( 1 ) 1 ( 2 ) 1

Total investment and embedded derivative instruments $ ( 81 ) $ ( 91 ) $ ( 34 ) $ 18

2 unchanged sentences

Futures contracts on equities (2)

144 ( 64 ) 186 ( 108 )

Other 9 3 10 2

Total GLB and other derivative instruments $ 10 $ ( 69 ) $ 88 $ 205

$ ( 71 ) $ ( 160 ) $ 54 $ 223

(1) Includes embedded derivatives.

49 unchanged sentences

Remaining contractual maturity

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions of U.S.

8 unchanged sentences

Gross amount of recognized liability for securities lending payable $ 1,658 $ 1,831

At March 31, 2022 and December 31, 2021, our repurchase agreement obligations of $ 1,406 million were fully collateralized.

At June 30, 2022 and December 31, 2021, our repurchase agreement obligations of $ 3,411 million and $ 1,406 million, respectively, were fully collateralized.

In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations.

2 unchanged sentences

Remaining contractual maturity

March 31, 2022 December 31, 2021

Up to 30 Days 30-90 Days Greater than

June 30, 2022 December 31, 2021

30-90 Days Greater than

90 Days Total 30-90 Days Greater than

4 unchanged sentences

Treasury / Agency 104 — 104 103 — 103

Corporate securities 8 — 8 — — $ —

Mortgage-backed securities 1,521 1,904 3,425 — 1,288 1,288

12 unchanged sentences

d) Fixed maturities

At March 31, 2022, we have commitments to purchase fixed income securities of $ 622 million over the next several years.

At June 30, 2022, and December 31, 2021, commitments to purchase fixed income securities over the next several years were $ 632 million and $ 771 million, respectively.

e) Other investments

At March 31, 2022, included in Other investments in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 10.7 billion.

At June 30, 2022, included in Other investments in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 10.9 billion.

In connection with these investments, we have commitments that may require funding of up to $ 7.4 billion over the next several years.

1 unchanged sentence

f) Income taxes

At March 31, 2022, $ 64 million of unrecognized tax benefits remain out standing.

At June 30, 2022, $ 58 million of unrecognized tax benefits remain out standing.

It is reasonably possible that, over the next twelve months, the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations by taxing authorities, settlements and the lapses of statutes of limitations.

7 unchanged sentences

h) Lease commitments

At March 31, 2022, and December 31, 2021, the right-of-use asset was $ 437 million and $ 445 million, respectively, recorded within Other assets and the lease liability was $ 470 million and $ 484 million, respectively, recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheets.

At June 30, 2022, and December 31, 2021, the right-of-use asset was $ 433 million and $ 445 million, respectively, recorded within Other assets and the lease liability was $ 461 million and $ 484 million, respectively, recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheets.

These leases consist principally of real estate operating leases that are amortized on a straight-line basis over the term of the lease, which expire at various dates.

4 unchanged sentences

Under Swiss corporate law, dividends, including distributions from legal reserves or through a reduction in par value (par value reduction), must be stated in Swiss francs though dividend payments are made by Chubb in U.S.

At March 31, 2022, our Common Shares had a par value of CHF 24.15 per share.

At our May 2021 and 2020 annual general meeting, our shareholders approved annual dividends for the following year of up to $ 3.20 per share and $ 3.12 per share, respectively, which were paid in four quarterly installments of $ 0.80 per share and $ 0.78 per share, respectively, at dates determined by the Board of Directors (Board) after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

Dividend distributions per Common Share for the three months ended March 31, 2022 and 2021 were $ 0.80 (CHF 0.74 ) and $ 0.78 (CHF 0.70 ), respectively.

At June 30, 2022, our Common Shares had a par value of CHF 24.15 per share.

At our May 2022 annual general meeting, our shareholders approved an annual dividend for the following year of up to $ 3.32 per share, expected to be paid in four quarterly installments of $ 0.83 per share after the general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment.

The Board of Directors (Board) will determine the record and payment dates at which the annual dividend may be paid until the date of the 2023 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

At our May 2021 and 2020 annual general meetings, our shareholders approved annual dividends for the following year of up to $ 3.20 per share and $ 3.12 per share, respectively, which were paid in four quarterly installments of $ 0.80 per share and $ 0.78 per share, respectively, at dates determined by the Board after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S.

dollars (USD):

Three Months Ended Six Months Ended

June 30 June 30

2022 2021 2022 2021

CHF USD CHF USD CHF USD CHF USD

Total dividend distributions per common share 0.80 $ 0.83 0.71 $ 0.80 1.54 $ 1.63 1.41 $ 1.58

Increases in Common Shares in treasury are due to open market repurchases of Common Shares and the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock and the forfeiture of unvested restricted stock.

2 unchanged sentences

The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on January 17, 2022.

During the three months ended March 31, 2022, 4,869,900 shares were repurchased, 14,465,400 shares were canceled, and 1,972,615 net shares were issued under employee share-based compensation plans.

At March 31, 2022, 35,880,387 Common Shares remain in treasury.

During the six months ended June 30, 2022, 10,346,200 shares were repurchased, 14,465,400 shares were canceled, and 2,247,675 net shares were issued under employee share-based compensation plans.

At June 30, 2022, 41,081,627 Common Shares remain in treasury.

Chubb Limited securities repurchase authorizations

3 unchanged sentences

• One-time incremental share repurchase program of $ 5.0 billion of Chubb Common Shares from July 19, 2021 through June 30, 2022;

• $ 2.5 billion of Chubb Common Shares from May 19, 2022 through June 30, 2023.

The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:

Three Months Ended April 1, 2022 through April 28, 2022

Three Months Ended Six Months Ended July 1, 2022 through July 28, 2022

June 30 June 30

(in millions of U.S.

3 unchanged sentences

Repurchase authorization remaining at end of period (1)

$ 2,500 $ 65 $ 2,500 $ 65 $ 2,220

(1) As of June 30, 2022, $ 522 million expired under the July 2021 $ 5.0 billion share repurchase authorization.

Share-based compensation

4 unchanged sentences

The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The Amended 2016 LTIP also permits grants of service-based restricted stock and restricted stock units as well as performance-based restricted stock awards.

5 unchanged sentences

Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Postretirement benefits

3 unchanged sentences

2022 2021 2022 2021

Three Months Ended March 31 U.S.

Three Months Ended June 30 U.S.

Plans Non-U.S.

10 unchanged sentences

Net periodic benefit cost (benefit) $ ( 49 ) $ ( 4 ) $ ( 46 ) $ ( 5 ) $ — $ ( 6 )

Pension Benefit Plans Other Postretirement

Benefit Plans

2022 2021 2022 2021

Six Months Ended June 30 U.S.

Plans Non-U.S.

(in millions of U.S.

Service cost $ — $ 2 $ — $ 2 $ — $ —

Non-service cost (benefit):

Interest cost 43 12 35 9 1 —

Expected return on plan assets ( 142 ) ( 22 ) ( 127 ) ( 22 ) ( 1 ) —

Amortization of net actuarial loss — — — 2 — —

Amortization of prior service cost — — — — — ( 26 )

Settlements — — — — — —

Total non-service cost (benefit) ( 99 ) ( 10 ) ( 92 ) ( 11 ) — ( 26 )

Net periodic benefit cost (benefit) $ ( 99 ) $ ( 8 ) $ ( 92 ) $ ( 9 ) $ — $ ( 26 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The line items in which the service cost and non-service cost (benefit) components of net periodic benefit cost (benefit) are included in the Consolidated statements of operations were as follows:

1 unchanged sentence

Benefit Plans

Three Months Ended March 31 2022 2021 2022 2021

Three Months Ended June 30 2022 2021 2022 2021

(in millions of U.S.

8 unchanged sentences

Net periodic benefit cost (benefit) $ ( 53 ) $ ( 51 ) $ — $ ( 6 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Pension Benefit Plans Other Postretirement

Benefit Plans

Six Months Ended June 30 2022 2021 2022 2021

(in millions of U.S.

Service cost:

Losses and loss expenses $ — $ — $ — $ —

Administrative expenses 2 2 — —

Total service cost 2 2 — —

Non-service cost (benefit):

Losses and loss expenses ( 10 ) ( 9 ) — ( 3 )

Administrative expenses ( 99 ) ( 94 ) — ( 23 )

Total non-service cost (benefit) ( 109 ) ( 103 ) — ( 26 )

Net periodic benefit cost (benefit) $ ( 107 ) $ ( 101 ) $ — $ ( 26 )

Other income and expense

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

dollars) 2022 2021 2022 2021

Equity in net income of partially-owned entities (1)

Equity in net income (loss) of partially-owned entities (1)

$ ( 71 ) $ 774 $ 290 $ 1,271

Gains (losses) from fair value changes in separate account assets (2)

( 18 ) 15 ( 49 ) 19

Federal excise and capital taxes ( 5 ) ( 5 ) ( 9 ) ( 10 )

1 unchanged sentence

Total $ ( 101 ) $ 777 $ 209 $ 1,267

(1) Equity in net income of partially-owned entities includes $ 40 million and $ 49 million attributable to our investments in Huatai (Huatai Group, Huatai P&C, and Huatai Life) for the three months ended March 31, 2022 and 2021, respectively.

(1) Equity in net income (loss) of partially-owned entities principally comprises market-to-market gain (loss) on private equities where we own more than three percent of $( 134 ) million and $ 121 million for the three and six months ended June 30, 2022, respectively, and $ 674 million and $ 1,074 million, respectively, for the prior year periods.

This line item also includes net income of $ 15 million and $ 55 million attributable to our investments in Huatai (Huatai Group, Huatai P&C, and Huatai Life) for the three and six months ended June 30, 2022, respectively, compared to $ 49 million and $ 98 million, respectively, for the prior year periods.

(2) Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Other income and expense includes equity in net income of partially-owned entities, which includes our share of net income or loss, both underlying operating income and mark-to-market movement, related to partially-owned investment companies (private equity) and partially-owned insurance companies.

13 unchanged sentences

We continue to evaluate our segments as our business continues to evolve and may further refine our segments and segment income (loss) measures.

Revenue and expenses managed at the corporate level, including net realized gains (losses), interest expense, Cigna integration expenses, and income tax are reported within Corporate.

Cigna integration expenses are one-time costs that are directly attributable to third-party consulting fees and other professional and legal fees related to the acquisition of Cigna's life and non-life insurance companies in six Asia-Pacific markets.

These items are not allocated to the segment level as they are one-time in nature and are not related to the ongoing business activities of the segment.

The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs, and therefore are excluded from our definition of segment income (loss).

Certain items are presented in a different manner for segment reporting purposes than in the Consolidated Financial Statements.

12 unchanged sentences

For the Three Months Ended

March 31, 2022

June 30, 2022

(in millions of U.S.

12 unchanged sentences

purchased intangibles — 3 6 14 — 3 45 — 71

Segment income $ 1,262 $ 261 $ 52 $ 422 $ 134 $ 115 $ 115 $ ( 1 ) $ 2,360

Segment income (loss) $ 1,502 $ 227 $ 63 $ 642 $ 91 $ 101 $ ( 468 ) $ ( 9 ) $ 2,149

Net realized gains (losses) ( 513 ) 9 ( 504 )

Interest expense 134 — 134

Cigna integration expenses 3 — 3

Income tax expense 293 — 293

1 unchanged sentence

For the Three Months Ended

March 31, 2021

June 30, 2021

(in millions of U.S.

16 unchanged sentences

Income tax expense 317 — 317

Net income (loss) $ ( 9 ) $ — $ 2,265

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Six Months Ended

June 30, 2022

(in millions of U.S.

dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global

Reinsurance Life Insurance Corporate Segment Measure Reclass Chubb Consolidated

Net premiums written $ 8,704 $ 2,606 $ 800 $ 5,719 $ 515 $ 1,157 $ — $ — $ 19,501

Net premiums earned 8,362 2,518 544 5,324 457 1,098 — — 18,303

Losses and loss expenses 4,943 1,486 386 2,613 254 302 201 10 10,195

Policy benefits — — — — — 353 — ( 49 ) 304

Policy acquisition costs 1,118 518 43 1,376 119 302 — — 3,476

Administrative expenses 542 142 1 547 19 172 173 — 1,596

Underwriting income (loss) 1,759 372 114 788 65 ( 31 ) ( 374 ) 39 2,732

Net investment income (loss) 1,011 123 14 309 161 212 ( 9 ) ( 111 ) 1,710

Other (income) expense 6 2 — 5 1 ( 40 ) ( 121 ) ( 62 ) ( 209 )

Amortization expense of

purchased intangibles — 5 13 28 — 5 91 — 142

Segment income (loss) $ 2,764 $ 488 $ 115 $ 1,064 $ 225 $ 216 $ ( 353 ) $ ( 10 ) $ 4,509

Net realized gains (losses) ( 413 ) 10 ( 403 )

Interest expense 266 — 266

Cigna integration expenses 3 — 3

Income tax expense 648 — 648

Net income (loss) $ ( 1,683 ) $ — $ 3,189

For the Six Months Ended

June 30, 2021

(in millions of U.S.

dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global

Reinsurance Life Insurance Corporate Segment Measure Reclass Chubb

Net premiums written $ 7,949 $ 2,461 $ 695 $ 5,387 $ 481 $ 1,235 $ — $ — $ 18,208

Net premiums earned 7,477 2,408 520 5,057 372 1,200 — — 17,034

Losses and loss expenses 4,986 1,495 416 2,449 230 383 98 2 10,059

Policy benefits — — — — — 333 — 19 352

Policy acquisition costs 1,003 492 39 1,367 92 370 — — 3,363

Administrative expenses 499 127 6 545 18 165 159 — 1,519

Underwriting income (loss) 989 294 59 696 32 ( 51 ) ( 257 ) ( 21 ) 1,741

Net investment income (loss) 1,075 129 15 290 151 199 ( 32 ) ( 80 ) 1,747

Other (income) expense 16 ( 4 ) — 3 — ( 60 ) ( 1,123 ) ( 99 ) ( 1,267 )

Amortization expense of

purchased intangibles — 6 13 25 — 2 99 — 145

Segment income $ 2,048 $ 421 $ 61 $ 958 $ 183 $ 206 $ 735 $ ( 2 ) $ 4,610

Net realized gains (losses) 852 2 854

Interest expense 244 — 244

Income tax expense 655 — 655

Net income $ 688 $ — $ 4,565

4 unchanged sentences

Earnings per share

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

14 unchanged sentences

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 1. Financial Statements