What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-07-28 compared with 2023-05-02 · 382 added, 225 removed, 1488 unchanged (29% of the section changed)

2 unchanged sentences

Chubb Limited and Subsidiaries

March 31 December 31

June 30 December 31

(in millions of U.S.

3 unchanged sentences

$ 96,789 $ 85,220

Fixed maturities held to maturity, at amortized cost, net of valuation allowance - $ 33 and $ 34

(fair value – $ 8,109 and $ 8,439 )

Fixed maturities held to maturity, at amortized cost, net of valuation allowance - nil and $ 34

(fair value – nil and $ 8,439 )

Equity securities, at fair value 1,043 827

37 unchanged sentences

Shareholders’ equity

Common Shares (CHF 24.15 par value;

Common Shares (CHF 0.50 and 24.15 par value;

431,451,586 and 446,376,614 shares issued;

410,691,354 and 414,594,856 shares outstanding)

10,346 10,346

Common Shares in treasury ( 20,760,232 and 31,781,758 shares)

8 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

2023 2022 2023 2022

(in millions of U.S.

dollars, except per share data) As Adjusted

dollars, except per share data) As Adjusted As Adjusted

Net premiums written $ 11,951 $ 10,293 $ 22,661 $ 19,482

6 unchanged sentences

Losses and loss expenses 5,683 5,206 10,831 9,770

Policy benefits (includes remeasurement gains (losses) of $ 1 and $( 5 ))

Policy benefits (includes remeasurement losses of $ 5 , nil , $ 4 , and $ 6 )

830 361 1,627 734

Policy acquisition costs 2,016 1,726 3,964 3,445

24 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

2023 2022 2023 2022

(in millions of U.S.

dollars) As Adjusted

dollars) As Adjusted As Adjusted

Common Shares

Balance – beginning of period $ 10,346 $ 10,666 $ 10,346 $ 10,985

Par value reduction ( 9,759 ) — ( 9,759 ) —

Cancellation of treasury shares ( 346 ) — ( 346 ) ( 319 )

8 unchanged sentences

Balance – beginning of period 6,680 7,988 7,166 8,478

Net shares issued under employee share-based compensation plans ( 211 ) ( 199 )

Net shares redeemed (issued) under employee share-based

compensation plans 5 4 ( 206 ) ( 195 )

Exercise of stock options — ( 6 ) ( 13 ) ( 27 )

Share-based compensation expense 73 69 155 139

Par value reduction 9,759 — 9,759 —

Funding of dividends declared to Retained earnings ( 354 ) ( 348 ) ( 698 ) ( 688 )

15 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Six Months Ended

(in millions of U.S.

35 unchanged sentences

Other ( 340 ) ( 253 )

Net cash flows used for investing activities ( 570 ) ( 995 )

Net cash flows from (used for) investing activities ( 2,262 ) 1,125

Cash flows from financing activities

18 unchanged sentences

See accompanying notes to the Consolidated Financial Statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Chubb Limited and Subsidiaries

General and significant accounting policies

14 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.

40 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

March 31, 2022

Three Months Ended Six Months Ended

June 30, 2022 June 30, 2022

(in millions of U.S.

dollars) As Previously Reported LDTI Adoption Adjustment As

Consolidated statement of operations and comprehensive income

Adjusted As Previously Reported LDTI Adoption Adjustment As

Consolidated statements of operations and comprehensive income

Net premiums written $ 10,302 $ ( 9 ) $ 10,293 $ 19,501 $ ( 19 ) $ 19,482

13 unchanged sentences

Comprehensive income ( 3,656 ) 583 ( 3,073 ) ( 5,436 ) 987 ( 4,449 )

Three Months Ended

March 31, 2022

Six Months Ended

(in millions of U.S.

76 unchanged sentences

Chubb financed the transaction through a combination of available cash and $ 2.0 billion in repurchase agreements that expired at the end of 2022.

The following table summarizes Chubb's best estimate of fair value of the assets acquired and liabilities assumed at July 1, 2022.

These estimates remain preliminary and are subject to adjustment.

While they are not expected to be materially different than those shown, any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition as a measurement period adjustment.

Direct costs related to the acquisition were expensed as incurred.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Preliminary estimate of assets acquired and liabilities assumed from Cigna's business in Asia July 1

The following table summarizes the fair value of the assets acquired and liabilities assumed at July 1, 2022.

Assets acquired and liabilities assumed from Cigna's business in Asia July 1

(in millions of U.S.

18 unchanged sentences

Total $ 11,214

Direct costs related to the acquisition were expensed as incurred.

Cigna integration expenses were $ 22 million for the three months ended March 31, 2023, and include one-time costs that are directly attributable to third-party consulting fees, employee-related retention costs, and other professional and legal fees related to the acquisition.

The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of Cigna's business in Asia that occurred on July 1, 2022, had instead occurred on January 1, 2021.

1 unchanged sentence

Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets and recognition of interest expense associated with the repurchase agreement transactions used to effect the acquisition.

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

3 unchanged sentences

Net income $ 1,276 $ 3,335

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

(Huatai Group).

Huatai Group is the parent company of, and owns 100 percent of, Huatai Property & Casualty Insurance Co., Ltd.

(Huatai P&C), 80 percent of Huatai Life Insurance Co., Ltd.

(Huatai Life), and 82 percent of Huatai Asset Management Co., Ltd.

(collectively, Huatai).

Chubb also holds a direct 20 percent interest in Huatai Life.

Huatai Group's insurance operations have more than 700 branches and approximately 19 million customers in China.

Huatai Insurance Group Co., Ltd.

(Huatai Group) is a Chinese financial services holding company, and the parent company of, among others, Huatai Property & Casualty Insurance Co., Ltd.

(Huatai P&C), Huatai Life Insurance Co., Ltd.

(Huatai Life), and Huatai Asset Management Co., Ltd., of which Huatai Group owns 100 percent, 80 percent, and 82 percent, respectively (collectively, Huatai).

As of June 30, 2023, Chubb's aggregate ownership interest in Huatai Group was approximately 64.2 percent.

Chubb applied th e 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

On Ja nuary 4, 2023, we completed transactions that increased our ownership interest in Huatai Group from 47.3 percent to approximately 64.2 percent.

At March 31, 2023, we have agreements in place to acquire approximately 22 percent of incremental ownership interests, pending completion of certain closing conditions.

On July 1, 2023, Chubb completed the acquisition of an additional 5.4 percent of ownership interest in Huatai Group, increasing its aggregate ownership interest to approximately 69.6 percent.

Effective July 1, 2023, and starting with our third quarter 2023 reporting, Chubb will apply consolidation accounting to its investment in Huatai Group.

Chubb has agreements in place to acquire approximately 16.6 percent of incremental ownership interests, pending completion of certain closing conditions.

Of those incremental ownership interests, approximately 3 percent also require regulatory approval.

We have paid deposits of $ 567 million for the approximately 22 percent of ownership interests and, at March 31, 2023, the remaining aggregate purchase price to be paid upon closing is approximately $ 0.8 billion, based on current exchange rates.

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

We have paid deposits of $ 464 million for the approximately 16.6 percent of ownership interests, and the remaining aggregate purchase price to be paid upon closing is approximately $ 0.5 billion, based on current exchange rates.

Refer to Note 2 to the Consolidated Financial Statements in our 2022 Form 10-K for additional information.

a) Fixed maturities

March 31, 2023 Amortized

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

a) Transfers of securities

In June 2023, we determined that we no longer have the intent to hold securities in our held to maturity (HTM) portfolio until maturity.

As a result, our entire HTM securities portfolio was transferred to the available for sale (AFS) portfolio.

This decision allowed us to increase our flexibility to execute on our investment strategy and take advantage of the continuing higher reinvestment environment while not making any major change to our current asset allocation.

At the time of the transfer on June 30, 2023, these securities had a carrying value of $ 8.2 billion and a fair value of $ 7.8 billion, resulting in an increase to Unrealized depreciation in OCI of $ 428 million, after-tax.

This transfer represents a non-cash transaction and does not impact the Consolidated Statements of Cash Flows.

b) Fixed maturities

June 30, 2023 Amortized

Cost Valuation Allowance Gross

9 unchanged sentences

$ 104,224 $ ( 193 ) $ 382 $ ( 7,624 ) $ 96,789

Cost Valuation Allowance Net Carrying Value Gross

Appreciation Gross

Depreciation Fair Value

Held to maturity

Treasury / Agency $ 1,371 $ — $ 1,371 $ 4 $ ( 35 ) $ 1,340

1,110 ( 4 ) 1,106 — ( 70 ) 1,036

Corporate and asset-backed securities 1,699 ( 28 ) 1,671 2 ( 97 ) 1,576

Mortgage-backed securities 1,373 ( 1 ) 1,372 — ( 90 ) 1,282

Municipal 2,905 — 2,905 2 ( 32 ) 2,875

$ 8,458 $ ( 33 ) $ 8,425 $ 8 $ ( 324 ) $ 8,109

December 31, 2022 Amortized

10 unchanged sentences

$ 93,355 $ ( 169 ) $ 174 $ ( 8,140 ) $ 85,220

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

December 31, 2022 Amortized

Cost Valuation Allowance Net Carrying Value Gross

1 unchanged sentence

Depreciation Fair Value

(in millions of U.S.

Held to maturity

5 unchanged sentences

$ 8,882 $ ( 34 ) $ 8,848 $ 3 $ ( 412 ) $ 8,439

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:

March 31, 2023 December 31, 2022

December 31, 2022

(in millions of U.S.

dollars, except for percentages) Amortized cost % of Total Amortized cost % of Total

dollars, except for percentages) Amortized cost % of Total

AAA $ 1,612 18 %

AA 5,023 57 %

A 1,594 19 % 1,634 18 %

BBB 579 7 % 593 7 %

BB 20 — % 20 — %

Total $ 8,882 100 %

The following table presents fixed maturities by contractual maturity:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

(in millions of U.S.

17 unchanged sentences

Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.

c) Gross unrealized loss

Fixed maturities in an unrealized loss position at June 30, 2023, and December 31, 2022, 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 1 e) in the 2022 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

b) Gross unrealized loss

Fixed maturities in an unrealized loss position at March 31, 2023, and December 31, 2022, 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 1 e) in the 2022 Form 10-K for further information on factors considered in the evaluation of expected credit losses.

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:

The following tables present, for 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, 2023 Fair Value Gross

June 30, 2023 Fair Value Gross

Loss Fair Value Gross

18 unchanged sentences

Total AFS fixed maturities $ 57,189 $ ( 4,115 ) $ 14,991 $ ( 2,291 ) $ 72,180 $ ( 6,406 )

At March 31, 2023, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 646 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

At June 30, 2023, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 768 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 ability 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

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

8 unchanged sentences

Valuation allowance for expected credit losses - beginning of period $ 33 $ 34 $ 34 $ 35

Provision for expected credit loss — 1 — 1

Recovery of expected credit loss ( 33 ) ( 1 ) ( 34 ) ( 2 )

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

c) Net realized gains (losses)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

d) 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.

15 unchanged sentences

(1) Relates to certain securities we intended to sell and securities written to market entering default.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Realized gains and losses from Equity securities and Other investments from the table above include sales of securities and unrealized gains and losses from fair value changes as follows:

5 unchanged sentences

Unrealized gains (losses) recognized for securities still held at reporting date $ 26 $ 20 $ 46 $ ( 426 ) $ 4 $ ( 422 )

d) Alternative investments

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 $ 39 $ 35 $ 74 $ ( 207 ) $ 59 $ ( 148 )

Net gains (losses) recognized from sales of securities ( 3 ) — ( 3 ) 418 — 418

Unrealized gains (losses) recognized for securities still held at reporting date $ 42 $ 35 $ 77 $ ( 625 ) $ 59 $ ( 566 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

e) Alternative investments

Alternative investments include partially-owned investment companies, investment funds, and limited partnerships measured at fair value using net asset value (NAV) as a practical expedient.

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, 2023 December 31, 2022

Period of Underlying Assets June 30, 2023 December 31, 2022

(in millions of U.S.

19 unchanged sentences

Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets.

Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.

Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without consent from the general partner of the individual funds.

Investment Category:

6 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.

6 unchanged sentences

Chubb can redeem its investment funds without consent from the investment fund managers.

e) Restricted assets

f) Restricted assets

Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations.

4 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, 2023 and December 31, 2022 are investments, primarily fixed maturities, totaling $ 16,021 million and $ 15,721 million, respectively, and cash of $ 94 million and $ 115 million, respectively.

Included in restricted assets at June

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

30, 2023, and December 31, 2022, are investments, primarily fixed maturities, totaling $ 15,982 million and $ 15,721 million, respectively, and cash of $ 90 million and $ 115 million, respectively.

The following table presents the components of restricted assets:

March 31 December 31

June 30 December 31

(in millions of U.S.

21 unchanged sentences

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

Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

market information that would allow them to make a fair value estimate.

Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate.

Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP.

13 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.

20 unchanged sentences

Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices.

The fair value of cross-currency swaps and interest rate swaps is based on

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

market valuations and is classified within Level 2.

The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2.

Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

10 unchanged sentences

Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Separate account assets

3 unchanged sentences

Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the Consolidated balance sheets.

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, 2023 Level 1 Level 2 Level 3 Total

June 30, 2023 Level 1 Level 2 Level 3 Total

(in millions of U.S.

22 unchanged sentences

Total liabilities measured at fair value $ 190 $ 51 $ 722 $ 963

(1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 12,805 million, policy loans of $ 358 million, and other investments of $ 47 million at March 31, 2023, measured using NAV as a practical expedient.

(1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 13,288 million, policy loans of $ 389 million, and other investments of $ 47 million at June 30, 2023, measured using NAV as a practical expedient.

(2) Refer to Note 11 for additional information on Market risk benefits.

31 unchanged sentences

The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3).

Excluded from the following tables is the reconciliation of Market risk benefits, refer to Note 11 for additional information:

Three Months Ended

March 31, 2023

June 30, 2023

(in millions of U.S.

4 unchanged sentences

Balance, beginning of period $ 561 $ 2,544 $ 10 $ 88 $ 7

Transfers into Level 3 21 3 — — —

Transfers out of Level 3 — ( 2 ) — — —

8 unchanged sentences

Three Months Ended

March 31, 2022

June 30, 2022

(in millions of U.S.

7 unchanged sentences

Change in Net Unrealized Gains/Losses in OCI ( 41 ) ( 30 ) — — —

Purchases 26 179 — — 5

Sales ( 19 ) ( 24 ) — ( 1 ) —

Settlements ( 40 ) ( 60 ) ( 1 ) — —

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

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

Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet date $ ( 41 ) $ ( 30 ) $ — $ — $ —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Six Months Ended

June 30, 2023

(in millions of U.S.

dollars) Available-for-Sale Debt Securities Equity

securities Short-term investments

Corporate and asset-

backed securities Mortgage-backed securities

Balance, beginning of period $ 564 $ 2,449 $ 11 $ 90 $ 3

Transfers into Level 3 21 3 — — —

Transfers out of Level 3 — ( 13 ) — — —

Change in Net Unrealized Gains/Losses in OCI 11 2 — — ( 1 )

Net Realized Gains/Losses ( 1 ) ( 3 ) — ( 6 ) —

5 unchanged sentences

Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet date $ 9 $ ( 2 ) $ — $ — $ —

Excluded from the tables above is the reconciliation of Market risk benefits, which are presented in Note 11 Market risk benefits.

Refer to Note 11 for additional information.

Six Months Ended

June 30, 2022

(in millions of U.S.

dollars) Available-for-Sale Debt Securities Equity

securities Short-term investments

Corporate and asset-

backed securities Mortgage-backed securities

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

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 —

Purchases 69 494 — 3 7

Sales ( 25 ) ( 51 ) — ( 4 ) —

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

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

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

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

b) Financial instruments disclosed, but not measured, at fair value

6 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, 2023 Fair Value Net Carrying

June 30, 2023 Fair Value Net Carrying

(in millions of U.S.

dollars) Level 1 Level 2 Level 3 Total

Fixed maturities held to maturity

Treasury / Agency $ 1,267 $ 73 $ — $ 1,340 $ 1,371

— 1,036 — 1,036 1,106

Corporate and asset-backed securities — 1,576 — 1,576 1,671

Mortgage-backed securities — 1,282 — 1,282 1,372

Municipal — 2,875 — 2,875 2,905

Total assets $ 1,267 $ 6,842 $ — $ 8,109 $ 8,425

Repurchase agreements $ — $ 1,518 $ — $ 1,518 $ 1,518

Short-term debt — 686 — 686 699

Long-term debt — 12,133 — 12,133 13,782

19 unchanged sentences

Reinsurance recoverable on ceded reinsurance

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

(in millions of U.S.

7 unchanged sentences

(1) Net of valuation allowance for uncollectible reinsurance.

The decrease in reinsurance recoverable on losses and loss expenses was primarily due to a seasonal decrease in crop recoverables, and collections.

The decrease in reinsurance recoverable on losses and loss expenses was primarily due to a seasonal decrease in crop insurance recoverables.

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.

7 unchanged sentences

Deferred acquisition costs

Deferred acquisition costs comprise capitalized costs on short-duration contracts of $ 3,010 million and $ 2,808 million and long-duration contracts of $ 3,286 million and $ 2,974 million at March 31, 2023, and March 31, 2022, respectively.

Deferred acquisition costs comprise capitalized costs on short-duration contracts of $ 3,201 million and $ 2,876 million and long-duration contracts of $ 3,465 million and $ 2,929 million at June 30, 2023, and June 30, 2022, respectively.

The assumptions used to amortize DAC were consistent with the assumptions used to estimate the liability for future policy benefits for nonparticipating traditional and limited-payment contracts.

The following tables present a roll-forward of deferred acquisitions costs on long-duration contracts included in the Life Insurance segment:

Three Months ended March 31, 2023

Six Months Ended June 30, 2023

(in millions of U.S.

9 unchanged sentences

Chubb Limited and Subsidiaries

Three Months ended March 31, 2022

Six Months Ended June 30, 2022

(in millions of U.S.

13 unchanged sentences

Foreign exchange revaluation and other 10 4 — 139 — ( 59 ) 94

Balance at March 31, 2023 $ 6,936 $ 2,227 $ 134 $ 4,602 $ 371 $ 1,905 $ 16,175

Value of business acquired (VOBA) represents the fair value of the future profits of in-force long duration contracts, and is amortized in relation to the profit emergence of the underlying contracts, in a manner similar to deferred acquisition costs.

Balance at June 30, 2023 $ 6,955 $ 2,234 $ 134 $ 4,744 $ 371 $ 1,884 $ 16,322

Value of business acquired (VOBA) represents the fair value of the future profits of in-force long duration contracts from businesses acquired, principally Cigna's Asian business, and is amortized in relation to the profit emergence of the underlying contracts.

The VOBA calculation is based on many factors including mortality, morbidity, persistency, investment yields, expenses, and the discount rate, with the discount rate being the most significant factor.

The following table presents a roll-forward of VOBA:

Three Months Ended

Six Months Ended

(in millions of U.S.

5 unchanged sentences

(1) Recognized in Policy acquisition costs in the Consolidated statements of operations.

During the three months ended March 31, 2023, amortization of VOBA associated with the acquisition of Cigna’s business in Asia was $ 78 million pre-tax.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

2 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.

dollars) 2023 2022

dollars) As Adjusted

Gross unpaid losses and loss expenses – beginning of period $ 75,747 $ 72,330

17 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, earned premiums, and development on international A&H lines totaling $( 8 ) million and $ 159 million for the three months ended March 31, 2023 and 2022, respectively.

Gross unpaid losses and loss expenses decreased $ 330 million for the three months ended March 31, 2023, principally reflecting underlying exposure growth that was more than offset by the favorable impact of foreign currency movement, a large payment related to the Boy Scouts of America agreement, and a non-recurring transaction in the quarter.

In addition, there was an increase in net unpaid losses and loss expenses of $ 236 million reflecting the factors noted above as well as higher collections in the quarter.

(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, earned premiums, and development on international A&H lines totaling $ 0 million and $ 134 million for the six months ended June 30, 2023 and 2022, respectively.

Gross and net unpaid losses and loss expenses increased $ 733 million and $ 1.2 billion for the six months ended June 30, 2023, respectively, principally reflecting underlying exposure growth and the unfavorable impact of foreign currency movement.

This increase was partially offset by large payments related to the Boy Scouts of America and favorable prior period development.

The increase in net unpaid losses also reflected seasonality in our crop insurance business.

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 $ ( 139 ) $ ( 7 ) $ ( 146 ) $ ( 130 ) $ ( 88 ) $ ( 218 )

15 unchanged sentences

North America Commercial P&C Insurance .

Net favorable development for the three months ended March 31, 2023, was $ 72 million favorable with $ 81 million favorable in short-tail lines and $ 9 million adverse in long-tail lines.

The short tail development was primarily in surety and A&H, partially offset by adverse development in property and marine due to the net impact of positive development from Hurricane Ian and negative development from Winter Storm Elliott.

The long tail development was the net of favorable developments in specialty casualty and workers comp due to lower than expected paid and reported loss activity offset by adverse development in general liability and certain financial lines due to higher than expected development.

Net favorable development for the three months ended March 31, 2022, included favorable development in A&H lines of $ 76 million, which experienced lower than expected loss emergence.

The favorable development was partially offset by adverse development in commercial umbrella and excess portfolios of $ 60 million driven by higher than expected loss emergence.

Net favorable development for the three and six months ended June 30, 2023 included $ 264 million and $ 308 million, respectively, from workers' compensation lines due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents.

The favorable development was partially offset by net adverse development of $ 119 million and $ 125 million, respectively, in commercial auto liability due to adverse reported loss experience.

Net favorable development for the three and six months ended June 30, 2022 included $ 286 million and $ 328 million, respectively, from workers' compensation lines due to lower-than-expected loss experience, related updates to loss development factors, and our annual assessment of multi-claimant events, including industrial accidents.

Favorable development also included $ 132 million and $ 136 million, respectively, in primary general liability portfolios, due to lower-than-expected paid and reported case incurred activity.

The favorable development was partially offset by net adverse development of $ 123 million and $ 116 million, respectively, in commercial auto liability due to adverse reported loss experience.

Development for the six months ended June 30, 2022 also included favorable development of $ 78 million in A&H due to lower-than-expected loss emergence.

North America Personal P&C Insurance .

Net adverse development for the three months ended March 31, 2023, was $ 17 million with no individually significant movements.

Net favorable development for the three months ended March 31, 2022, included favorable development in the homeowners line of business from a reserve release due to lower than expected paid and reported loss activity attributable to the indirect effects of COVID related economic slowdown.

Overseas General Insurance .

Net favorable development for the three months ended March 31, 2023, included $ 85 million in property lines, driven by favorable catastrophe development of $ 43 million, and non-catastrophe loss emergence in Continental Europe and the U.K.

Net favorable development for the three months ended March 31, 2022, included favorable development in property and A&H lines of business.

Net favorable development for the three and six months ended June 30, 2023 had no individually significant movements.

Net favorable development for the six months ended June 30, 2022 included favorable development in the homeowners line of business driven by lower-than-expected paid and reported loss activity.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Molestation claims

In the first quarter of 2023, the District Court issued an order approving the Boy Scouts of America (BSA) bankruptcy plan in full.

There are no changes to the terms of the agreement which are consistent with the 2022 10-K disclosure.

We paid $ 800 million per the agreement, with $ 300 million paid in 2022, $ 200 million paid during the first quarter of 2023, and the remaining $ 300 million paid in April 2023.

Refer to the 2022 10-K for additional information on molestation claim s.

F uture policy benefits

Overseas General Insurance .

Net favorable development for the three months ended June 30, 2023 included $ 61 million in short-tail property and casualty and A&H due to favorable claim development.

Net favorable development for the six months ended June 30, 2023 was $ 204 million and included $ 110 million of favorable catastrophe development and non-catastrophe property loss emergence.

Net favorable development for the three and six months ended June 30, 2022 included $ 173 million and $ 233 million primarily due to favorable loss development in A&H and property lines, as well as reduced loss frequency in personal lines.

Net adverse development for the three and six months ended June 30, 2023 was $ 60 million and $ 70 million, respectively, driven primarily by adverse development for molestation claims.

Net adverse development for the three and six months ended June 30, 2022 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.

Future policy benefits

The following tables present a roll-forward of the liability for future policy benefits included in the Life Insurance segment:

Present Value of Expected Net Premiums Three Months Ended

March 31, 2023

Present Value of Expected Net Premiums Six Months Ended June 30, 2023

(in millions of U.S.

9 unchanged sentences

( 86 ) ( 171 ) ( 654 ) ( 10 ) ( 921 )

Derecognition (lapses) ( 2 ) 1 ( 54 ) ( 1 ) ( 56 )

Other (including foreign exchange) 17 23 118 ( 1 ) 157

5 unchanged sentences

Chubb Limited and Subsidiaries

Present Value of Expected Future Policy Benefits Three Months Ended

March 31, 2023

Present Value of Expected Future Policy Benefits Six Months Ended June 30, 2023

(in millions of U.S.

8 unchanged sentences

Benefits payments ( 84 ) ( 130 ) ( 708 ) ( 5 ) ( 927 )

Derecognition (lapses) ( 2 ) 1 ( 56 ) ( 1 ) ( 58 )

Other (including foreign exchange) 71 400 ( 178 ) 6 299

2 unchanged sentences

Balance – end of period $ 1,531 $ 6,678 $ 13,603 $ 255 $ 22,067

March 31, 2023

June 30, 2023

Liability for Future Policy Benefits Life Insurance Overseas General Insurance Chubb Consolidated

(in millions of U.S.

dollars) Term Life Whole Life A&H Other A&H Total

dollars, except for years) Term Life Whole Life A&H Other A&H Total

Net liability for future policy benefits $ 667 $ 4,309 $ 4,093 $ 218 $ 751 $ 10,038

6 unchanged sentences

Chubb Limited and Subsidiaries

Present Value of Expected Net Premiums Three Months Ended

March 31, 2022

Present Value of Expected Net Premiums Six Months Ended June 30, 2022

(in millions of U.S.

14 unchanged sentences

(1) Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit.

Present Value of Expected Future Policy Benefits Three Months Ended

March 31, 2022

Present Value of Expected Future Policy Benefits Six Months Ended June 30, 2022

(in millions of U.S.

14 unchanged sentences

Chubb Limited and Subsidiaries

March 31, 2022

June 30, 2022

Liability for Future Policy Benefits Life Insurance Overseas General Insurance Chubb Consolidated

8 unchanged sentences

The following table presents the amount of undiscounted expected gross premiums and expected future policy benefit payments included in the Life Insurance segment:

March 31 March 31

June 30 June 30

(in millions of U.S.

20 unchanged sentences

Gross Premiums or Assessments Interest Accretion

Three Months Ended Three Months Ended

March 31 March 31

Six Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

10 unchanged sentences

Interest Accretion Rate Current Discount Rate

Three Months Ended Three Months Ended

March 31 March 31

June 30 June 30

2023 2022 2023 2022

4 unchanged sentences

Other 3.8 % 3.3 % 5.1 % 4.4 %

P olicyholders' account balances

Policyholders' account balances

The following tables present a roll-forward of policyholders' account balances:

Three Months Ended

March 31, 2023

Six Months Ended June 30, 2023

(in millions of U.S.

11 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

March 31, 2022

Six Months Ended June 30, 2022

(in millions of U.S.

19 unchanged sentences

Universal Life

March 31, 2023

June 30, 2023

(in millions of U.S.

4 unchanged sentences

471 50 — — 521

453 56 — — 509

Greater than 4.00 %

Total $ 495 $ 50 $ 382 $ 874 $ 1,801

March 31, 2022

June 30, 2022

(in millions of U.S.

4 unchanged sentences

236 211 37 — 484

238 210 35 — 483

Greater than 4.00 %

Total $ 271 $ 211 $ 447 $ 730 $ 1,659

2 unchanged sentences

Other policyholders' account balances

March 31, 2023

June 30, 2023

(in millions of U.S.

2 unchanged sentences

$ 430 $ 550 $ 189 $ 235 $ 1,404

$ 154 $ 547 $ 188 $ 543 $ 1,432

Greater than 4.00 %

Total $ 440 $ 550 $ 189 $ 235 $ 1,414

March 31, 2022

June 30, 2022

(in millions of U.S.

2 unchanged sentences

$ 120 $ 521 $ 209 $ 236 $ 1,086

$ — $ 530 $ 219 $ 369 $ 1,118

Greater than 4.00 %

Total $ 124 $ 521 $ 209 $ 236 $ 1,090

4 unchanged sentences

The following table presents a roll-forward of MRB:

Three Months Ended

Six Months Ended

(in millions of U.S.

11 unchanged sentences

Net amount at risk $ 2,048 $ 2,667

Excluded from the table above are MRB gains (losses) of $( 89 ) million and $ 26 million for the three months ended March 31, 2023 and 2022, respectively, reported in the Consolidated statements of operations, relating to the market risk benefits' economic hedge and other net cash flows.

Excluded from the table above are MRB gains (losses) of $( 192 ) million and $ 158 million for the six months ended June 30, 2023 and 2022, respectively, reported in the Consolidated statements of operations, relating to the market risk benefits' economic hedge and other net cash flows.

There is no reinsurance recoverable associated with our liability for MRB.

1 unchanged sentence

All reinsurance treaties contain claim limits, which are also factored into the valuation model.

Valuation Technique Significant Unobservable Inputs March 31, 2023 March 31, 2022

Valuation Technique Significant Unobservable Inputs June 30, 2023 June 30, 2022

Ranges Weighted Average (1)

5 unchanged sentences

(1) The weighted-average lapse and annuitization rates are determined by weighting each treaty's rates by the MRB contract's fair value.

The most significant policyholder behavior assumptions include lapse rates for MRBs and the annuitization rates which is applicable to GLB only.

The most significant policyholder behavior assumptions include lapse rates for MRBs, and GLB annuitization rates.

Assumptions regarding lapse rates and GLB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable.

22 unchanged sentences

The following table presents the aggregate fair value of Separate account assets, by major security type:

March 31 December 31

June 30 December 31

(in millions of U.S.

5 unchanged sentences

The following table presents a roll-forward of separate account liabilities:

Three Months Ended

Six Months Ended

(in millions of U.S.

27 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, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Balance Sheet

20 unchanged sentences

(2) Related to MRB book of business.

At March 31, 2023, and December 31, 2022, net derivative liabilities of $ 214 million and $ 60 million, respectively, included in the table above were subject to a master netting agreement.

At June 30, 2023, and December 31, 2022, net derivative liabilities of $ 139 million and $ 60 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.

6 unchanged sentences

In September 2022, Chubb entered into certain cross-currency swaps designated as fair value hedges.

The objective of these cross-currency swaps is to hedge the foreign currency risk on € 1.5 billion, or approximately $ 1.6 billion at March 31, 2023, of our euro denominated debt, by converting cash flows back into the U.S.

The objective of these cross-currency swaps is to hedge the foreign currency risk on € 1.5 billion, or approximately $ 1.6 billion at June 30, 2023, of our euro denominated debt, by converting cash flows back into the U.S.

These fair value hedges are carried at fair value.

1 unchanged sentence

The remaining change in fair value is recorded in Other comprehensive income (OCI), with an immaterial amount recorded in Interest expense.

For the three months ended March 31, 2023, we recognized a net loss of $ 17 million, comprising $ 20 million of net realized gains, $ 4 million of interest expense, and a remaining change in fair value of $ 33 million pre-tax of other comprehensive loss recorded within OCI.

The following table presents pre-tax gains (losses) recognized in OCI and reclassified into earnings for fair value hedges:

Three Months Ended

Six Months Ended

(in millions of U.S.

dollars) 2023

Gain recognized in OCI $ 57 $ 40

Net realized gains reclassified from OCI 11 31

Interest expense reclassified from OCI ( 4 ) ( 8 )

OCI gain/(loss) after reclassifications $ 50 $ 17

(ii) Cross-currency swaps - net investment hedges

5 unchanged sentences

The mark-to-market adjustments for foreign currency changes will remain until the underlying hedge subsidiary is deconsolidated or if hedge accounting is discontinued.

For the three months ended March 31, 2023, we recognized a net loss of $ 23 million, comprising $ 26 million pre-tax of cumulative translation losses recorded in OCI, and $ 3 million of interest income.

The following table presents pre-tax gains (losses) recognized in OCI and reclassified into earnings for net investment hedges:

Three Months Ended

Six Months Ended

(in millions of U.S.

dollars) 2023

Gain recognized in OCI $ 35 $ 12

Interest income reclassified from OCI 4 7

OCI gain/(loss) after reclassifications $ 31 $ 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

3 unchanged sentences

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 ) 1 ( 2 )

Total investment and embedded derivative instruments $ ( 55 ) $ ( 81 ) $ ( 101 ) $ ( 34 )

1 unchanged sentence

Futures contracts on equities (2)

$ ( 75 ) $ 144 $ ( 132 ) $ 186

Other 2 9 1 10

48 unchanged sentences

Remaining contractual maturity

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

(in millions of U.S.

4 unchanged sentences

Corporate and asset-backed securities 28 27

Municipal 4 —

$ 1,525 $ 1,523

2 unchanged sentences

Chubb Limited and Subsidiaries

At March 31, 2023, and December 31, 2022, our repurchase agreement obligations of $ 1,420 million and $ 1,419 million, respectively, were fully collateralized.

At June 30, 2023, and December 31, 2022, our repurchase agreement obligations of $ 1,518 million and $ 1,419 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, 2023 December 31, 2022

Up to 30 Days 30-90 Days Total Up to 30 Days 30-90 Days Total

June 30, 2023 December 31, 2022

Up to 30 Days 30-90 Days Greater than

90 Days Total Up to 30 Days 30-90 Days Total

(in millions of U.S.

14 unchanged sentences

e) Fixed maturities

At March 31, 2023, and December 31, 2022, commitments to purchase fixed income securities over the next several years were $ 810 million and $ 770 million, respectively.

At June 30, 2023, and December 31, 2022, commitments to purchase fixed income securities over the next several years were $ 892 million and $ 770 million, respectively.

f) Other investments

At March 31, 2023, included in Other investments in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 12.4 billion.

At June 30, 2023, included in Other investments in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 12.9 billion.

In connection with these investments, we have commitments that may require funding of up to $ 6.2 billion over the next several years.

1 unchanged sentence

g) Income taxes

At March 31, 2023, $ 66 million of unrecognized tax benefits remain out standing.

At June 30, 2023, $ 61 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.

3 unchanged sentences

These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in our loss and loss expense reserves.

In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies.

In addition to claims litigation, we are subject to lawsuits and

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures.

regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies.

This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures.

In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations.

i) Lease commitments

At March 31, 2023, and December 31, 2022, the right-of-use asset was $ 571 million and $ 607 million, respectively, recorded within Other assets , and the lease liability was $ 595 million and $ 633 million, respectively, recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheets.

At June 30, 2023, and December 31, 2022, the right-of-use asset was $ 543 million and $ 607 million, respectively, recorded within Other assets , and the lease liability was $ 575 million and $ 633 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, 2023, our Common Shares had a par value of CHF 24.15 per share.

At our May 2022 and 2021 annual general meetings, our shareholders approved annual dividends for the following year of up to $ 3.32 per share and $ 3.20 per share, respectively, which were paid in four quarterly installments of $ 0.83 per share and $ 0.80 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, 2023 and 2022, were $ 0.83 (CHF 0.77 ) and $ 0.80 (CHF 0.74 ), respectively.

At our May 2023 annual general meeting, our shareholders approved the reduction of share capital by reducing par value from CHF 24.15 per share to CHF 0.50 per share and thereby increasing capital contribution reserves.

The par value reduction did not change our number of Common Shares issued.

At June 30, 2023, our Common Shares had a par value of CHF 0.50 per share.

At our May 2023 annual general meeting, our shareholders approved an annual dividend for the following year of up to $ 3.44 per share, expected to be paid in four quarterly installments of $ 0.86 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 2024 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

At our May 2022 and 2021 annual general meetings, our shareholders approved annual dividends for the following year of up to $ 3.32 per share and $ 3.20 per share, respectively, which were paid in four quarterly installments of $ 0.83 per share and $ 0.80 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

2023 2022 2023 2022

CHF USD CHF USD CHF USD CHF USD

Total dividend distributions per common share 0.77 $ 0.86 0.80 $ 0.83 1.54 $ 1.69 1.54 $ 1.63

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.

4 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 August 4, 2022.

During the three months ended March 31, 2023, 2,010,400 shares were repurchased and 1,574,224 net shares were issued under employee share-based compensation plans.

At March 31, 2023, 32,217,934 Common Shares remain in treasury.

At our May 2023 annual general meeting, held on May 17, 2023, our shareholders approved the cancellation of 14,925,028 shares purchased under our share repurchase programs during 2022.

The capital reduction was subject to publication requirements and became effective in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

accordance with Swiss law on May 22, 2023.

During the six months ended June 30, 2023, 5,684,700 shares were repurchased, 14,925,028 shares were canceled, and 1,781,198 net shares were issued under employee share-based compensation plans.

At June 30, 2023, 20,760,232 Common Shares remain in treasury.

Chubb Limited securities repurchase authorizations

2 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

• $ 5.0 billion of Chubb Common Shares effective July 1, 2023 with no expiration date.

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, 2023

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

3 unchanged sentences

Repurchase authorization remaining at end of period (1)

$ — $ 2,500 $ — $ 2,500

(1) As of June 30, 2023, $ 474 million expired under the May 2022 $ 2.5 billion share repurchase authorization.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

1 unchanged sentence

The following table presents changes in accumulated other comprehensive income (loss):

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

2023 2022 2023 2022

(in millions of U.S.

dollars) As Adjusted

dollars) As Adjusted As Adjusted

Accumulated other comprehensive income (loss) (AOCI)

27 unchanged sentences

Change in period, before tax 50 — 17 —

Income tax benefit 7 —

Income tax expense ( 11 ) — ( 4 ) —

Balance – end of period, net of tax ( 53 ) — ( 53 ) —

2 unchanged sentences

Change in period, before tax ( 2 ) 5 ( 2 ) 24

Income tax expense ( 1 ) ( 4 )

Income tax (expense) benefit 1 ( 1 ) — ( 5 )

Balance – end of period, net of tax 223 259 223 259

3 unchanged sentences

The following table presents reclassifications from accumulated other comprehensive income (loss) to the Consolidated statements of operations:

Three Months Ended Consolidated Statement of Operations Location

Three Months Ended Six Months Ended Consolidated Statement of Operations Location

June 30 June 30

(in millions of U.S.

33 unchanged sentences

2023 2022 2023 2022

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) $ ( 22 ) $ ( 2 ) $ ( 49 ) $ ( 4 ) $ — $ —

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:

Pension Benefit Plans Other Postretirement Benefit Plans

2023 2022 2023 2022

Six Months Ended June 30 U.S.

Plans Non-U.S.

(in millions of U.S.

Service cost:

$ — $ 4 $ — $ 2 $ — $ —

Non-service cost (benefit):

Interest cost 68 18 43 12 1 1

Expected return on plan assets ( 112 ) ( 25 ) ( 142 ) ( 22 ) ( 2 ) ( 1 )

Amortization of net actuarial loss — — — — — —

Amortization of prior service cost — — — — — —

Settlements — — — — — —

Total non-service cost (benefit) ( 44 ) ( 7 ) ( 99 ) ( 10 ) ( 1 ) —

Net periodic benefit cost (benefit) $ ( 44 ) $ ( 3 ) $ ( 99 ) $ ( 8 ) $ ( 1 ) $ —

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 cost (benefit) are included in the Consolidated statements of operations were as follows:

Pension Benefit Plans Other Postretirement

Benefit Plans

Three Months Ended March 31 2023 2022 2023 2022

Three Months Ended June 30 2023 2022 2023 2022

(in millions of U.S.

8 unchanged sentences

Net periodic benefit cost (benefit) $ ( 24 ) $ ( 53 ) $ — $ —

Pension Benefit Plans Other Postretirement

Benefit Plans

Six Months Ended June 30 2023 2022 2023 2022

(in millions of U.S.

Service cost:

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

Administrative expenses 4 2 — —

Total service cost 4 2 — —

Non-service cost (benefit):

Losses and loss expenses ( 5 ) ( 10 ) — —

Administrative expenses ( 46 ) ( 99 ) ( 1 ) —

Total non-service cost (benefit) ( 51 ) ( 109 ) ( 1 ) —

Net periodic benefit cost (benefit) $ ( 47 ) $ ( 107 ) $ ( 1 ) $ —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

1 unchanged sentence

Other income and expense

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

dollars) 2023 2022 2023 2022

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

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

$ 120 $ ( 72 ) $ 460 $ 291

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

3 unchanged sentences

Total $ 100 $ ( 101 ) $ 396 $ 211

(1) Equity in net income of partially-owned entities includes mark-to-market gains on private equities where we own more than three percent of $ 242 million and $ 255 million for the three months ended March 31, 2023 and 2022, respectively.

This line item also includes net income of $ 14 million and $ 42 million attributable to our investments in Huatai for the three months ended March 31, 2023 and 2022, respectively.

(1) Equity in net income (loss) of partially-owned entities includes mark-to-market gains (losses) on private equities where we own more than three percent of $( 3 ) million and $ 239 million for the three and six months ended June 30, 2023, respectively, and $( 134 ) million and $ 121 million, respectively, for the prior year periods.

This line item also includes net income of $ 22 million and $ 36 million attributable to our investments in Huatai for the three and six months ended June 30, 2023, respectively, compared to $ 15 million and $ 55 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.

9 unchanged sentences

All business segments have established relationships with reinsurance intermediaries.

Segment results for the three months ended March 31, 2023, include the results of Cigna's business in Asia, which are principally assigned to our Life Insurance segment and, to a lesser extent, our Overseas General Insurance segment according to the nature of the business written.

Segment results for the three and six months ended June 30, 2023, include the results of Cigna's business in Asia, which are principally assigned to our Life Insurance segment and, to a lesser extent, our Overseas General Insurance segment according to the nature of the business written.

Management uses underwriting income (loss) as the basis for segment performance for its P&C operations.

5 unchanged sentences

Revenue and expenses managed at the corporate level, including net realized gains (losses), market risk benefits 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, employee-related retention costs, and other professional and legal fees related to the acquisition of Cigna's A&H and Life insurance companies in several Asian markets.

Cigna integration expenses are one-time costs that are directly attributable to third-party consulting fees, employee-related retention costs, and other professional and legal fees primarily related to the acquisition of Cigna's business in Asia.

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.

3 unchanged sentences

• Losses and loss expenses include realized gains and losses on crop derivatives.

These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results.

We view gains and losses on these derivatives as part of the results of

These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to losses and loss expenses.

commodity pricing impacts underwriting results.

We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to losses and loss expenses.

• Policy benefits include fair value changes on separate accounts that do not qualify for separate accounting under GAAP.

3 unchanged sentences

We view investment income from these equity-method private equity partnerships as net investment income for segment reporting purposes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following tables present the Statement of Operations by segment:

For the Three Months Ended

March 31, 2023

June 30, 2023

(in millions of U.S.

12 unchanged sentences

purchased intangibles — 3 7 15 — 2 43 — 70

Segment income $ 1,423 $ 160 $ 11 $ 625 $ 111 $ 244 $ 75 $ 1 $ 2,650

Segment income (loss) $ 1,526 $ 234 $ 96 $ 661 $ 120 $ 254 $ ( 210 ) $ ( 5 ) $ 2,676

Net realized gains (losses) ( 309 ) 5 ( 304 )

4 unchanged sentences

Net income (loss) $ ( 1,098 ) $ — $ 1,793

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Three Months Ended

March 31, 2022 (As Adjusted)

June 30, 2022 (As Adjusted)

(in millions of U.S.

12 unchanged sentences

purchased intangibles — 3 6 14 — 3 45 — 71

Segment income $ 1,262 $ 261 $ 52 $ 422 $ 134 $ 121 $ 115 $ ( 1 ) $ 2,366

Segment income (loss) $ 1,502 $ 227 $ 63 $ 642 $ 91 $ 106 $ ( 468 ) $ ( 9 ) $ 2,154

Net realized gains (losses) ( 512 ) 9 ( 503 )

1 unchanged sentence

Interest expense 134 — 134

Cigna integration expenses 3 — 3

Income tax expense 291 — 291

Net income (loss) $ ( 1,441 ) $ — $ 1,190

For the Six Months Ended

June 30, 2023

(in millions of U.S.

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

Reinsurance Life Insurance Corporate Segment Measure Reclass Chubb Consolidated

Net premiums written $ 9,443 $ 2,877 $ 1,060 $ 6,148 $ 570 $ 2,563 $ — $ — $ 22,661

Net premiums earned 8,975 2,677 794 5,694 481 2,520 — — 21,141

Losses and loss expenses 5,600 1,734 647 2,504 203 67 72 4 10,831

Policy benefits — — — 247 — 1,417 — ( 37 ) 1,627

Policy acquisition costs 1,227 549 52 1,459 127 550 — — 3,964

Administrative expenses 611 163 6 572 18 337 192 — 1,899

Underwriting income (loss) 1,537 231 89 912 133 149 ( 264 ) 33 2,820

Net investment income 1,424 168 31 388 97 314 14 ( 184 ) 2,252

Other (income) expense 12 — — ( 19 ) ( 1 ) ( 41 ) ( 200 ) ( 147 ) ( 396 )

Amortization expense of

purchased intangibles — 5 13 33 — 6 85 — 142

Segment income (loss) $ 2,949 $ 394 $ 107 $ 1,286 $ 231 $ 498 $ ( 135 ) $ ( 4 ) $ 5,326

Net realized gains (losses) ( 385 ) 4 ( 381 )

Market risk benefits gains (losses) ( 122 ) — ( 122 )

Interest expense 325 — 325

Cigna integration expenses 37 — 37

Income tax expense 776 — 776

Net income (loss) $ ( 1,780 ) $ — $ 3,685

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Six Months Ended

June 30, 2022 (As Adjusted)

(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 $ 8,704 $ 2,606 $ 800 $ 5,719 $ 515 $ 1,138 $ — $ — $ 19,482

Net premiums earned 8,362 2,518 544 5,324 457 1,081 — — 18,286

Losses and loss expenses 4,943 1,486 386 2,439 254 51 201 10 9,770

Policy benefits — — — 174 — 609 — ( 49 ) 734

Policy acquisition costs 1,118 518 43 1,376 119 271 — — 3,445

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

Underwriting income (loss) 1,759 372 114 788 65 ( 22 ) ( 374 ) 39 2,741

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

Other (income) expense 6 2 — 5 1 ( 42 ) ( 121 ) ( 62 ) ( 211 )

Amortization expense of

purchased intangibles — 5 13 28 — 5 91 — 142

Segment income (loss) $ 2,764 $ 488 $ 115 $ 1,064 $ 225 $ 227 $ ( 353 ) $ ( 10 ) $ 4,520

Net realized gains (losses) ( 490 ) 10 ( 480 )

Market risk benefits gains (losses) 16 — 16

Interest expense 266 — 266

Cigna integration expenses 3 — 3

Income tax expense 644 — 644

Net income (loss) $ ( 1,740 ) $ — $ 3,143

Underwriting assets are reviewed in total by management for purposes of decision-making.

1 unchanged sentence

Earnings per share

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

2023 2022 2023 2022

(in millions of U.S.

dollars, except share and per share data) As Adjusted

dollars, except share and per share data) As Adjusted As Adjusted

Net income $ 1,793 $ 1,190 $ 3,685 $ 3,143

9 unchanged sentences

Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods.

These securities consisted of stock options in which the underlying exercise prices were greater than the average market prices of our Common Shares.

These securities consisted of stock options in which the underlying exercise prices

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

were greater than the average market prices of our Common Shares.

Refer to Note 12 to the Consolidated Financial Statements of our 2022 Form 10-K for additional information on stock options.

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