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Item 1. Financial Statements

2023-11-01 compared with 2023-07-28 · 490 added, 243 removed, 1627 unchanged (31% of the section changed)

2 unchanged sentences

Chubb Limited and Subsidiaries

June 30 December 31

September 30, 2023 December 31, 2022

(in millions of U.S.

dollars, except share and per share data) As Adjusted

Short-term investments, at fair value (amortized cost – $ 5,455 and $ 4,962 )

$ 5,454 $ 4,960

Fixed maturities available for sale, at fair value, net of valuation allowance - $ 158 and $ 169

3 unchanged sentences

(fair value – nil and $ 8,439 )

Private debt held-for-investment, at amortized cost 2,401 —

Equity securities, at fair value 3,395 827

Short-term investments, at fair value (amortized cost – $ 4,099 and $ 4,962 )

Other investments, at fair value 14,707 13,696

Total investments 116,636 113,551

Cash 2,285 2,012

Restricted cash 90 115

Private equities 13,362 12,355

Other investments 5,583 1,341

Total investments (refer to Note 3 for balances associated with variable interest entities (VIEs)) 129,961 113,551

Cash, including restricted cash $ 192 and $ 115 (refer to Note 3 for balances associated with VIEs)

Securities lending collateral 1,469 1,523

24 unchanged sentences

Deferred tax liabilities 759 377

Repurchase agreements 1,518 1,419

Repurchase agreements (refer to Note 3 for balances associated with VIEs) 2,617 1,419

Short-term debt 700 475

12 unchanged sentences

Accumulated other comprehensive income (loss) (AOCI) ( 11,518 ) ( 10,185 )

Total Chubb shareholders’ equity 52,373 50,519

Noncontrolling interests (refer to Note 3 for balances associated with VIEs) 5,131 —

Total shareholders' equity 57,504 50,519

3 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

9 unchanged sentences

Losses and loss expenses 7,106 7,063 17,937 16,833

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

Policy benefits (includes remeasurement gains of $ 25 , $ 17 , $ 21 , and $ 11 )

938 707 2,565 1,441

9 unchanged sentences

Net income $ 2,040 $ 792 $ 5,725 $ 3,935

Net loss attributable to noncontrolling interests ( 3 ) — ( 3 ) —

Net income attributable to Chubb $ 2,043 $ 792 $ 5,728 $ 3,935

Other comprehensive income (loss)

Unrealized appreciation (depreciation) $ ( 1,194 ) $ ( 4,344 ) $ 592 $ ( 8,996 )

Unrealized depreciation $ ( 2,170 ) $ ( 3,045 ) $ ( 1,578 ) $ ( 12,041 )

Current discount rate on future policy benefits 683 479 497 1,546

2 unchanged sentences

Other, including postretirement benefit liability adjustment 37 ( 59 ) 52 ( 35 )

Other comprehensive income (loss), before income tax ( 955 ) ( 4,446 ) 467 ( 8,554 )

Other comprehensive loss, before income tax ( 1,772 ) ( 3,559 ) ( 1,305 ) ( 12,113 )

Income tax (expense) benefit related to OCI items — 109 ( 104 ) 1,071

Other comprehensive income (loss) ( 927 ) ( 4,263 ) 363 ( 7,592 )

Other comprehensive loss ( 1,772 ) ( 3,450 ) ( 1,409 ) ( 11,042 )

Comprehensive income (loss) 268 ( 2,658 ) 4,316 ( 7,107 )

Comprehensive loss attributable to noncontrolling interests ( 79 ) — ( 79 ) —

Comprehensive income (loss) attributable to Chubb $ 347 $ ( 2,658 ) $ 4,395 $ ( 7,107 )

Earnings per share

Basic earnings per share $ 4.35 $ 2.82 $ 8.92 $ 7.42

Diluted earnings per share $ 4.32 $ 2.80 $ 8.84 $ 7.35

Basic earnings per share attributable to Chubb $ 4.99 $ 1.90 $ 13.90 $ 9.34

Diluted earnings per share attributable to Chubb $ 4.95 $ 1.89 $ 13.79 $ 9.26

See accompanying notes to the Consolidated Financial Statements

1 unchanged sentence

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

23 unchanged sentences

Balance – beginning of period 49,467 48,355 48,305 47,403

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

Net income attributable to Chubb 2,043 792 5,728 3,935

Cancellation of treasury shares — ( 2,153 ) ( 2,523 ) ( 4,344 )

4 unchanged sentences

Balance – beginning of period ( 9,822 ) ( 8,666 ) ( 10,185 ) ( 1,074 )

Other comprehensive income (loss) ( 927 ) ( 4,263 ) 363 ( 7,592 )

Other comprehensive loss ( 1,696 ) ( 3,450 ) ( 1,333 ) ( 11,042 )

Balance – end of period ( 11,518 ) ( 12,116 ) ( 11,518 ) ( 12,116 )

Total Chubb shareholders’ equity $ 52,373 $ 47,675 $ 52,373 $ 47,675

Noncontrolling interests

Balance – beginning of period $ — $ — $ — $ —

Consolidation of Huatai Group 5,210 — 5,210 —

Net loss attributable to noncontrolling interests ( 3 ) — ( 3 ) —

Other comprehensive loss attributable to noncontrolling interests ( 76 ) — ( 76 ) —

Balance – end of period $ 5,131 $ — $ 5,131 $ —

Total shareholders' equity $ 57,504 $ 47,675 $ 57,504 $ 47,675

2 unchanged sentences

Chubb Limited and Subsidiaries

Six Months Ended

Nine Months Ended

(in millions of U.S.

32 unchanged sentences

Private equity distributions 938 649

Acquisition of subsidiaries ( 23 ) —

Payment for Huatai Group interest ( 229 ) ( 113 )

Acquisition of subsidiaries (net of cash acquired) 216 ( 5,095 )

Other ( 553 ) ( 414 )

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

Net cash flows used for investing activities ( 5,434 ) ( 5,202 )

Cash flows from financing activities

27 unchanged sentences

Refer to Note 18 for additional information.

The interim unaudited consolidated financial statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results and financial position for such periods.

The interim unaudited consolidated financial statements include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), over which Chubb exercises control, including Huatai Group, our majority-owned subsidiary, and minority-owned entities such as variable interest entities (VIEs) in which Chubb is considered the primary beneficiary.

Noncontrolling interests on the consolidated financial statements represent the portion of majority-owned subsidiaries and VIEs in which we do not have direct equity ownership.

These interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results and financial position for such periods.

All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

On July 1, 2023, Chubb increased its investment in Huatai Group from approximately 64.2 percent to approximately 69.6 percent.

Accordingly, Chubb discontinued the equity method of accounting for its investment in Huatai Group and applied consolidation accounting.

Business activity for, and the financial position of, Huatai Group is reported at 100 percent on the Consolidated Financial Statements starting when Chubb obtained control of Huatai Group on July 1, 2023.

The relevant amounts attributable to shareholders other than Chubb (representing approximately 30.4 percent of Huatai Group) are reflected under Noncontrolling interests, Net income (loss) attributable to noncontrolling interests, and Comprehensive income (loss) attributable to noncontrolling interests in the Consolidated Financial Statements.

Refer to Note 2 for additional information.

Huatai Group's life and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment.

Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate.

The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2022 Form 10-K.

b) Restricted cash

Restricted cash in the Consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage.

Amounts include deposits with U.S.

regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements.

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:

June 30 December 31

(in millions of U.S.

dollars) 2023 2022

Cash $ 2,285 $ 2,012

Restricted cash 90 115

Total cash and restricted cash shown in the Consolidated statements of cash flows $ 2,375 $ 2,127

b) Accounting policies adopted upon consolidation of Huatai Group

The following accounting policies have been adopted or updated upon the consolidation of Huatai Group and its subsidiaries (collectively, Huatai) in the third quarter of 2023:

Asset management and performance fee revenue and expenses

Huatai's asset management companies recognize revenue and expenses unrelated to Chubb's core insurance operations from the management of third-party assets.

These revenues include fixed-rate management fees, which are recognized in the period in which the services are performed, and asset performance fees, which are recognized to the extent it is probable that a significant reversal will not occur.

These fees and expenses are included in Other (income) expense on the Consolidated statements of operations.

Refer to Note 17 for additional information.

Private debt held-for-investment, at amortized cost

Private debt held-for-investment are investments related principally to the funding of public and private projects that are mostly infrastructure related, and were acquired as part of Huatai’s investment portfolio upon consolidation.

They have stated interest rates and maturity dates with fixed or determinable payments.

Private debt held-for-investment are carried at amortized cost, net of a valuation allowance for credit losses.

Interest income is recorded when earned.

Other investments

Chubb consolidates entities in which it has a controlling interest or is a primary beneficiary of a VIE.

Huatai’s asset management businesses create investment entities known as sponsored investment products which include mutual funds with primary holdings in fixed maturities.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Other investments principally comprised these fixed maturities.

These securities are reported at fair value with changes in fair value reported through the Consolidated statements of operations within Net realized gains (losses) as required under investment company accounting standard s.

Consolidation of variable interest entities (VIEs)

Chubb consolidates entities in which it has a controlling interest or is a primary beneficiary of a VIE.

Huatai's asset management businesses create investment entities known as sponsored investment products which include mutual funds with primary holdings in fixed maturities.

These entities are created for varied purposes during the ordinary course of business, such as to obtain returns from investments, and to collect management fees for the assets managed on behalf of the third party investors.

While many investors may not be related parties, Huatai invests in these funds at various ownership percentages.

We determined that we are the primary beneficiary of these VIEs and generally consolidate when we hold an economic interest of 10 percent or more.

The consolidation of VIEs records 100 percent of the underlying assets and liabilities of the mutual funds within the Consolidated balance sheets.

The relevant amounts attributable to investors other than Chubb are reflected as Noncontrolling interests.

Where Huatai's ownership in these sponsored investment products is less than 10 percent, we generally would not expect to be the primary beneficiary of these VIEs.

Refer to Note 3 g) for additional information .

c) Accounting guidance adopted in 2023

10 unchanged sentences

We also adopted the required disclosures in Note 6 Deferred acquisition costs, Note 9 Future policy benefits, Note 10 Policyholders’ account balances, Note 11 Market risk benefits, and Note 12 Separate accounts.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The impact of adoption of the new guidance on our historical financial statements is as follows:

17 unchanged sentences

Accumulated other comprehensive income (loss) ( 10,193 ) 8 ( 10,185 )

Excluded from the table above is the reclassification of separate accounts assets, separate account liabilities, and Policyholders' account balances as separate line items on the consolidated balance sheets.

Excluded from the table above is the reclassification of Separate account assets, Separate account liabilities, and Policyholders' account balances as separate line items on the Consolidated balance sheets.

Separate accounts assets were previously classified in Other assets, and Separate account liabilities and Policyholders' account balances were previously classified in Accounts payable, accrued expenses, and other liabilities.

1 unchanged sentence

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30, 2022 June 30, 2022

Three Months Ended Nine Months Ended

September 30, 2022 September 30, 2022

(in millions of U.S.

16 unchanged sentences

Income tax benefit related to OCI items 165 ( 56 ) 109 1,222 ( 151 ) 1,071

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

Six Months Ended

Comprehensive income (loss) ( 3,093 ) 435 ( 2,658 ) ( 8,529 ) 1,422 ( 7,107 )

Nine Months Ended

September 30,2022

(in millions of U.S.

66 unchanged sentences

Refer to Note 11 for additional information.

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), Huatai Asset Management Co., Ltd., and Huatai Baoxing Fund Management Co., Ltd., of which Huatai Group owns 100 percent, 80 percent, 82 percent, and 85 percent, respectively (collectively, Huatai).

On July 1, 2023, Chubb increased its investment in Huatai Group from approximately 64.2 percent to approximately 69.6 percent.

Chubb paid $ 318 million for the incremental 5.4 percent ownership interest.

On October 1, 2023, we closed on an incremental ownership interest of approximately 2.5 percent for $ 146 million, which was previously paid as a deposit.

Chubb has agreements in place to acquire approximately 14.1 percent of incremental ownership interests, pending completion of certain closing conditions, of which approximately 3 percent also requires regulatory approval.

We have paid deposits of $ 416 million for the approximately 14.1 percent of ownership interests, and the remaining aggregate purchase price to be paid upon closing is approximately $ 433 million, based on current exchange rates.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Upon discontinuation of the equity method of accounting, Chubb remeasured the 64.2 percent equity method investment to its fair value of $ 4.1 billion as of July 1, 2023, resulting in a one-time realized gain of $ 744 million after-tax, reflecting the remeasurement of the previously held equity interest's historical carrying value to fair value.

There was also a net realized and unrealized loss of $ 17 million after-tax reflecting the write-off of AOCI loss balances accumulated while under the equity method of $ 611 million with an offset to realized loss of $ 628 million.

The acquisition of a controlling majority interest in Huatai Group generated $ 3,394 million of Goodwill, attributable to expected growth and profitability, and $ 1,655 million of Other intangible assets.

None of the goodwill is expected to be deductible for income tax purposes.

Additionally, the acquisition of a controlling majority interest in Huatai Group generated $ 309 million of Value of business acquired (VOBA).

Chubb financed the transaction through available cash on hand.

Direct costs related to the acquisition were expensed as incurred.

These include one-time costs that are directly attributable to third-party consulting fees and other professional and legal fees related to the acquisition.

The following table summarizes Chubb's best estimate of fair value of the assets acquired and liabilities assumed on July 1, 2023.

The fair value of assets and liabilities are preliminary and may change with offsetting adjustments to goodwill.

Chubb may make further adjustments to its purchase price allocation and the fair value of noncontrolling interest through the end of the permissible one-year measurement period.

Preliminary estimate of Huatai Group assets and liabilities consolidated

(in millions of U.S.

dollars) 2023

Investments and Cash $ 13,346

Accrued investment income 60

Insurance and reinsurance balances receivable 277

Reinsurance recoverable on losses and loss expenses 581

Reinsurance recoverable on future policy benefits 27

Value of business acquired 309

Goodwill and intangible assets 5,049

Other assets 748

Total assets $ 20,397

Unpaid losses and loss expenses $ 831

Unearned premiums 800

Future policy benefits 2,287

Policyholders' account balances 4,014

Insurance and reinsurance balances payable 644

Accounts payable, accrued expenses, and other liabilities 702

Deferred tax liabilities 232

Repurchase agreements 1,269

Total liabilities $ 10,779

Net acquired assets, including goodwill, attributable to Chubb 4,408

Net acquired assets, attributable to noncontrolling interests 5,210

Net acquired assets, including goodwill $ 9,618

The following table summarizes the results of the acquired Huatai Group operations that have been included within our Consolidated statements of operations for the three and nine months ended September 30, 2023:

(in millions of U.S.

Total revenues $ 389

Net loss attributable to Chubb

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The preliminary purchase price allocation to intangible assets recorded in connection with the Huatai Group acquisition and their related useful lives at July 1, 2023, are as follows:

(in millions of U.S.

dollars) Amount Weighted-average useful life

Definite life

Agency distribution relationships $ 332 20 years

Asset management customer contracts 94 16 years

Unearned premium reserves (UPR) intangible asset 95 3 years

Land use rights 569 31 years

Technology 45 6 years

Indefinite life

Trademarks 398 Indefinite

Asset management mutual funds 122 Indefinite

Total identified intangible assets $ 1,655

The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of a controlling majority interest in Huatai Group that occurred on July 1, 2023, had instead occurred on January 1, 2022.

The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition of a controlling majority interest been consummated on January 1, 2022, nor is it necessarily indicative of future operating results.

Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets.

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

dollars) 2023 2022 2023 2022

Net premiums earned $ 12,674 $ 11,952 $ 34,605 $ 30,996

Total revenues $ 13,755 $ 12,612 $ 37,589 $ 33,019

$ 1,905 $ 787 $ 5,595 $ 3,975

Net income attributable to Chubb

$ 1,912 $ 777 $ 5,587 $ 3,935

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

33 unchanged sentences

Total $ 11,214

The following table summarizes the results of the acquired Cigna business in Asia that have been included within our Consolidated statements of operations for the three and nine months ended September 30, 2022:

(in millions of U.S.

Total revenues $ 681

Net income $ 17

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 Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

3 unchanged sentences

Net income $ 837 $ 4,172

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 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 $ 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

a) Transfers of securities

5 unchanged sentences

b) Fixed maturities

June 30, 2023 Amortized

September 30, 2023 Amortized

Cost Valuation Allowance Gross

43 unchanged sentences

The following table presents fixed maturities by contractual maturity:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

(in millions of U.S.

18 unchanged sentences

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.

Fixed maturities in an unrealized loss position at September 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.

3 unchanged sentences

0 – 12 Months Over 12 Months Total

June 30, 2023 Fair Value Gross

September 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 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.

At September 30, 2023, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 1,108 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 Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

4 unchanged sentences

Write-offs charged against the expected credit loss ( 1 ) — ( 5 ) —

Foreign currency revaluation — ( 2 ) — ( 2 )

Recovery of expected credit loss ( 68 ) ( 20 ) ( 178 ) ( 34 )

9 unchanged sentences

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

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

8 unchanged sentences

Equity securities ( 100 ) ( 80 ) ( 61 ) ( 287 )

Other investments 20 4 35 59

Private equities 40 ( 42 ) 75 17

Foreign exchange ( 67 ) 202 ( 122 ) 546

1 unchanged sentence

Other derivative instruments ( 7 ) ( 19 ) ( 6 ) ( 9 )

Other ( 6 ) — ( 13 ) ( 74 )

92 ( 40 ) 79 ( 114 )

Net realized gains (losses) (pre-tax) $ ( 103 ) $ ( 456 ) $ ( 484 ) $ ( 936 )

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

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:

(2) The three and nine months ended September 30, 2023 Includes a one-time realized gain of $ 116 million as a result of the consolidation of Huatai Group.

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

Three Months Ended

(in millions of U.S.

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

dollars) Other Investments Equity Securities Private Equities Total Equity Securities Private Equities Total

Net gains (losses) recognized during the period $ ( 1 ) $ ( 100 ) $ 40 $ ( 61 ) $ ( 80 ) $ ( 42 ) $ ( 122 )

1 unchanged sentence

Unrealized gains (losses) recognized for securities still held at reporting date $ ( 1 ) $ ( 55 ) $ 40 $ ( 16 ) $ ( 68 ) $ ( 42 ) $ ( 110 )

Six Months Ended

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Nine Months Ended

(in millions of U.S.

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

dollars) Other Investments Equity Securities Private Equities Total Equity Securities Private Equities Total

Net gains (losses) recognized during the period $ ( 1 ) $ ( 61 ) $ 75 $ 13 $ ( 287 ) $ 17 $ ( 270 )

1 unchanged sentence

Unrealized gains (losses) recognized for securities still held at reporting date $ ( 1 ) $ ( 13 ) $ 75 $ 61 $ ( 693 ) $ 17 $ ( 676 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

e) 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 June 30, 2023 December 31, 2022

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

(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 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.

Included in restricted assets at September 30, 2023, and December 31, 2022, are investments, primarily fixed maturities, totaling $ 17,505 million and $ 15,721 million, respectively, and cash of $ 192 million and $ 115 million, respectively.

The following table presents the components of restricted assets:

June 30 December 31

September 30 December 31

(in millions of U.S.

8 unchanged sentences

Total $ 17,697 $ 15,836

g) Variable interest entities (VIEs)

Consolidated VIEs

Certain subsidiaries of Huatai Group are the investment manager of, and maintain investments in, sponsored investment products that are considered Variable Interest entities (VIEs).

Refer to Note 1 for further information on our consolidation criteria.

The assets of these VIEs are not available to our creditors, and the investors in these VIEs have no recourse to Chubb in excess of the assets contained within the VIEs.

Our economic exposures are limited to our investments based on our ownership interest in these VIEs.

Our total exposure to these sponsored investment products represents the value of our economic ownership interest.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents the balances related to these sponsored investment products accounted for as VIEs that were recorded on our Consolidated balance sheets, including our net interest in these sponsored investment products:

(in millions of U.S.

dollars) 2023

Short-term investments

Equity securities

Private equities

Other investments

Total investments of consolidated VIEs

Total assets of consolidated VIEs

Other liabilities

Repurchase agreements

Total liabilities of consolidated VIEs

Noncontrolling interests

Chubb's net interest in consolidated VIEs

The carrying value of assets and liabilities on the Consolidated balance sheets relating to nonconsolidated sponsored investment products where we are not the primary beneficiary is immaterial.

Fair value measurements

15 unchanged sentences

The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Fixed maturities

10 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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 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.

10 unchanged sentences

Short-term investments for which pricing is unobservable are classified within Level 3.

Private equities

Fair values for the majority of Private equities including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective NAV and are excluded from the fair value hierarchy table below.

Other investments

Fair values for the majority of Other investments including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective NAV and are excluded from the fair value hierarchy table below.

Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP.

These assets comprise mutual funds, classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets.

Other investments also include equity securities, classified within Level 1 and fixed maturities, classified within Level 2, held in rabbi trusts maintained by Chubb for deferred compensation plans and supplemental retirement plans and are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities.

Other investments principally include fixed maturities carried at fair value with changes in fair value recorded through the Consolidated statements of operations.

These fixed maturities principally relate to the acquired Huatai investment portfolio and are classified within Level 2.

Also included are life insurance policies collateralizing investments held in rabbi trusts maintained by Chubb for deferred compensation plans and supplemental retirement plans.

These policies are carried at cash surrender value and are classified in the valuation hierarchy within Level 2.

Securities lending collateral

5 unchanged sentences

Investment 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

Derivatives designated as hedging instruments

9 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

June 30, 2023 Level 1 Level 2 Level 3 Total

September 30, 2023 Level 1 Level 2 Level 3 Total

(in millions of U.S.

22 unchanged sentences

Total liabilities measured at fair value $ 168 $ 72 $ 770 $ 1,010

(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.

(1) Excluded from the table above are policy loans of $ 603 million, and other investments of $ 47 million at September 30, 2023, measured using NAV as a practical expedient.

(2) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 13,362 million at September 30, 2023, measured using NAV as a practical expedient.

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

25 unchanged sentences

Total liabilities measured at fair value $ 139 $ 53 $ 800 $ 992

(1) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 12,355 million, policy loans of $ 343 million and other investments of $ 47 million at December 31, 2022, measured using NAV as a practical expedient.

(1) Excluded from the table above are policy loans of $ 343 million and other investments of $ 47 million at December 31, 2022, measured using NAV as a practical expedient.

(2) Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $ 12,355 million at December 31, 2022, measured using NAV as a practical expedient.

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

5 unchanged sentences

Three Months Ended

June 30, 2023

September 30, 2023

(in millions of U.S.

15 unchanged sentences

Three Months Ended

June 30, 2022

September 30, 2022

(in millions of U.S.

7 unchanged sentences

Change in Net Unrealized Gains/Losses in OCI ( 34 ) ( 16 ) — — —

Net Realized Gains/Losses ( 4 ) ( 9 ) — 3 ( 1 )

Purchases 39 164 4 3 1

6 unchanged sentences

Chubb Limited and Subsidiaries

Six Months Ended

June 30, 2023

Nine Months Ended

September 30, 2023

(in millions of U.S.

14 unchanged sentences

Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet date $ 1 $ 2 $ — $ — $ —

Six Months Ended

June 30, 2022

Nine Months Ended

September 30, 2022

(in millions of U.S.

22 unchanged sentences

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

June 30, 2023 Fair Value Net Carrying

September 30, 2023 Fair Value Net Carrying

(in millions of U.S.

dollars) Level 1 Level 2 Level 3 Total

Private debt held-for-investment $ — $ — $ 2,389 $ 2,389 $ 2,401

Total assets $ — $ — $ 2,389 $ 2,389 $ 2,401

Repurchase agreements $ — $ 2,617 $ — $ 2,617 $ 2,617

3 unchanged sentences

Total liabilities $ — $ 15,294 $ — $ 15,294 $ 17,361

Private debt held-for-investment is related to Huatai and its consolidation.

The fair value of Private debt held-for-investment is derived using a discounted cash flow approach, which includes an evaluation of forecasted contractual cash flows and yield curve information, among other loan characteristics and assumptions.

These assumptions are derived from internal and third party sources.

Since the valuation is derived from model-based techniques, Private debt held-for-investment is classified within Level 3 of the valuation hierarchy.

December 31, 2022 Fair Value Net Carrying

16 unchanged sentences

Reinsurance recoverable on ceded reinsurance

June 30, 2023 December 31, 2022

September 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 insurance recoverables.

The increase in reinsurance recoverable on losses and loss expenses was primarily due to the consolidation of Huatai and unfavorable prior period development on ceded reserves.

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

Six Months Ended

Nine Months Ended

(in millions of U.S.

7 unchanged sentences

Deferred acquisition costs

Deferred acquisition costs comprise capitalized costs on short-duration contracts of $ 3,201 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.

Deferred acquisition costs comprise capitalized costs on short-duration contracts of $ 3,283 million and $ 2,809 million and long-duration contracts of $ 3,573 million and $ 2,979 million at September 30, 2023, and September 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:

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

(in millions of U.S.

9 unchanged sentences

Chubb Limited and Subsidiaries

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

(in millions of U.S.

7 unchanged sentences

Total deferred acquisition costs on long-duration contracts $ 2,979

Goodwill and Value of business acquired

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Goodwill, Value of business acquired, and Other intangible assets

The following table presents a roll-forward of Goodwill by segment:

2 unchanged sentences

Balance at December 31, 2022 $ 6,945 $ 2,230 $ 134 $ 4,605 $ 371 $ 1,943 $ 16,228

Consolidation of Huatai Group (1)

— — — 562 — 2,832 3,394

Foreign exchange revaluation and other — — — 44 — ( 112 ) ( 68 )

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

Balance at September 30, 2023 $ 6,945 $ 2,230 $ 134 $ 5,211 $ 371 $ 4,663 $ 19,554

(1) Includes $ 1.0 billion attributable to noncontrolling interests.

Value of business acquired

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.

1 unchanged sentence

The following table presents a roll-forward of VOBA:

Six Months Ended

Nine Months Ended

(in millions of U.S.

1 unchanged sentence

Balance, beginning of period $ 3,702

Consolidation of Huatai Group 309

Amortization of VOBA (1)

2 unchanged sentences

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

The following table presents, as of September 30, 2023, the expected estimated pre-tax amortization expense related to VOBA at current foreign currency rates, for the fourth quarter of 2023 and for the next five years:

For the Years Ending December 31

(in millions of U.S.

dollars) Total amortization of VOBA

Fourth quarter of 2023 $ 67

Total $ 1,115

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Other intangible assets

Other intangible assets that are subject to amortization principally relate to agency distribution relationships, renewal rights, and patents.

Other intangible assets that are not subject to amortization principally relate to trademarks.

For other intangible assets related to the consolidation of Huatai, refer to Note 2.

(in millions of U.S.

dollars) September 30

2023 December 31

Subject to amortization $ 3,350 $ 2,459

Not subject to amortization 3,494 2,982

Total $ 6,844 $ 5,441

The following table presents, as of September 30, 2023, the expected pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the fourth quarter of 2023 and for the next five years:

For the Years Ending December 31

(in millions of U.S.

dollars) Total amortization of purchased intangibles Amortization of Huatai UPR intangible asset (1)

Amortization of Huatai land use rights (2)

Total amortization

Fourth quarter of 2023 $ 84 $ 16 $ 3 $ 103

2024 312 30 12 354

2025 286 16 12 314

2026 269 7 12 288

2027 249 3 13 265

2028 240 — 13 253

Total $ 1,440 $ 72 $ 65 $ 1,577

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

(2) Recognized in Other (income) expense in the Consolidated statements of operations .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Unpaid losses and loss expenses

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

Six Months Ended

Nine Months Ended

(in millions of U.S.

13 unchanged sentences

Total 15,011 13,728

Consolidation of Huatai Group 405 —

Foreign currency revaluation and other ( 95 ) ( 1,280 )

4 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 $ 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.

(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 $ 71 million and $ 213 million for the nine months ended September 30, 2023 and 2022, respectively.

Gross and net unpaid losses and loss expenses increased $ 4.0 billion and $ 3.2 billion for the nine months ended September 30, 2023, respectively, principally reflecting underlying exposure growth and the consolidation of Huatai.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

5 unchanged sentences

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

Three Months Ended June 30 Six Months Ended June 30

Three Months Ended September 30 Nine Months Ended September 30

(in millions of U.S.

17 unchanged sentences

North America Commercial P&C Insurance .

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 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.

Net favorable development for the three months ended September 30, 2023 included $ 71 million in workers' compensation lines, mainly due to lower than expected loss experience, and $ 188 million in commercial property and marine lines, mainly due to net lower than expected development impacting the most recent accident years.

The favorable development was partially offset by adverse development of $ 222 million in commercial excess and umbrella lines, driven by higher than expected loss development, principally related to automobile exposures.

Net favorable development for the nine months ended September 30, 2023 included $ 379 million in workers' compensation lines, $ 113 million in commercial property and marine lines, and $ 101 million in surety, all mainly driven by lower than expected development.

These favorable movements were partially offset by adverse development of $ 227 million in commercial excess and umbrella lines and $ 125 million in commercial auto liability, both driven by higher than expected loss experience.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Net favorable development for the three months ended September 30, 2022 included $ 164 million from lower than expected loss experience in workers’ compensation lines and $ 66 million, net of premium adjustments, from lower claims activity in large multi-line loss sensitive accounts.

The favorable development was partially offset by net adverse development of $ 58 million from higher than expected claims severity in commercial auto liability, and $ 71 million in commercial umbrella/excess portfolios.

Net favorable development on our short-tail businesses primarily included $ 132 million in property and marine portfolios, where paid and reported loss activity for the most recent accident years was lower than expected.

Net favorable development for the nine months ended September 30, 2022 also included favorable development in workers’ compensation lines due to updates to loss development factors and our annual assessment of multi-claimant events, including industrial accidents.

North America Personal P&C Insurance .

Net favorable development for the three and nine months ended September 30, 2023 included $ 263 million and $ 244 million, respectively, in homeowners and valuables lines, mainly due to lower than expected loss experience in accident year 2022.

The favorable development was partially offset by net adverse development of $ 145 million in the three months ended September 30, 2023 in personal excess liability due to adverse development on reported losses.

Net favorable development for the three and nine months ended September 30, 2022 included favorable development in the homeowners and valuables lines of business, driven by lower than expected claims reserve development.

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.

Net favorable development for the three months ended September 30, 2023 included favorable loss emergence in financial lines of $ 77 million primarily in accident years 2019 and prior of partially offset by net adverse development of $ 51 million in political risks.

Net favorable development for the nine months ended September 30, 2023, also included net favorable development of $ 147 million in property and marine lines, and $ 45 million in A&H lines.

Net favorable development for the three months ended September 30, 2022, included lower than expected paid and reported loss activity of $ 82 million in casualty lines, including primary and excess lines in Continental Europe, the U.K., and Asia Pacific, and $ 34 million in environmental lines.

The favorable development was partially offset by net adverse development of $ 114 million in financial lines, including Directors and Officers (D&O) due to a combination of higher than expected development on specific claims and increased expected future development in the U.K., Continental Europe, Asia Pacific, and London wholesale business.

Net favorable development for the nine months ended September 30, 2022, also included net favorable development of $ 75 million in A&H lines, $ 67 million in property lines, and $ 53 million in personal lines.

Net adverse development for the three months ended September 30, 2023 and 2022, included adverse development for environmental liabilities.

Net adverse development for the nine months ended September 30, 2023 and 2022 also included adverse development for molestation claims of $ 49 million and $ 155 million, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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 Six Months Ended June 30, 2023

Present Value of Expected Net Premiums Nine Months Ended September 30, 2023

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 901 2,400 9,478 45 12,824

Consolidation of Huatai Group 3 1,690 145 12 1,850

Issuances 90 274 1,066 5 1,435

7 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

Present Value of Expected Future Policy Benefits Nine Months Ended September 30, 2023

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 1,576 6,281 14,060 253 22,170

Consolidation of Huatai Group 17 3,659 163 298 4,137

Issuances 90 276 1,065 5 1,436

5 unchanged sentences

Balance – end of period $ 1,558 $ 9,928 $ 13,319 $ 721 $ 25,526

June 30, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

September 30, 2023

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

7 unchanged sentences

Weighted-average duration (years) 10.2 26.5 10.3 15.1 4.9 18.7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

Present Value of Expected Net Premiums Nine Months Ended September 30, 2022

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 366 1,252 2,174 28 3,820

Acquisition of Cigna 445 1,078 8,191 23 9,737

Issuances 95 155 348 3 601

7 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 Six Months Ended June 30, 2022

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Present Value of Expected Future Policy Benefits Nine Months Ended September 30, 2022

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 821 3,844 4,422 133 9,220

Acquisition of Cigna 668 2,267 10,542 106 13,583

Issuances 100 155 348 3 606

5 unchanged sentences

Balance – end of period $ 1,321 $ 5,723 $ 13,644 $ 125 $ 20,813

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

June 30, 2022

September 30, 2022

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

7 unchanged sentences

Weighted-average duration (years) 9.0 24.7 11.0 13.5 5.1 16.2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

June 30 June 30

September 30 September 30

(in millions of U.S.

16 unchanged sentences

Discounted expected future gross premiums $ 92 $ 92

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents the amount of revenue and interest recognized in the statement of operations:

Gross Premiums or Assessments Interest Accretion

Six Months Ended Six Months Ended

June 30 June 30

Nine Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

8 unchanged sentences

Total $ 4,769 $ 3,144 $ 221 $ 153

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents the weighted-average interest rates:

Interest Accretion Rate Current Discount Rate

June 30 June 30

September 30 September 30

2023 2022 2023 2022

6 unchanged sentences

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

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

(in millions of U.S.

1 unchanged sentence

Balance – beginning of period $ 1,719 $ 1,421 $ 3,140

Consolidation of Huatai Group 602 3,412 4,014

Premiums received 275 228 503

6 unchanged sentences

Balance, end of period $ 2,383 $ 4,795 $ 7,178

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

(in millions of U.S.

1 unchanged sentence

Balance – beginning of period $ 1,612 $ 1,154 $ 2,766

Acquisition of Cigna 10 345 355

Premiums received 292 55 347

7 unchanged sentences

(1) Contracts included in the policyholder account balances are generally charged a premium and/or monthly assessments on the basis of the account balance .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

(in millions of U.S.

7 unchanged sentences

Universal Life

June 30, 2023

September 30, 2023

(in millions of U.S.

6 unchanged sentences

Total $ 496 $ 377 $ 614 $ 896 $ 2,383

June 30, 2022

September 30, 2022

(in millions of U.S.

6 unchanged sentences

Total $ 490 $ 394 $ 287 $ 505 $ 1,676

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Other policyholders' account balances

June 30, 2023

September 30, 2023

(in millions of U.S.

2 unchanged sentences

$ 1,328 $ — $ 1,719 $ 799 $ 3,846

2.01 % – 4.00 %

112 487 27 — 626

Greater than 4.00 %

323 — — — 323

Total $ 1,763 $ 487 $ 1,746 $ 799 $ 4,795

June 30, 2022

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

September 30, 2022

(in millions of U.S.

2 unchanged sentences

$ 411 $ — $ 191 $ 424 $ 1,026

2.01 % – 4.00 %

Greater than 4.00 %

306 — — — 306

Total $ 717 $ — $ 191 $ 424 $ 1,332

4 unchanged sentences

The following table presents a roll-forward of MRB:

Six Months Ended

Nine Months Ended

(in millions of U.S.

5 unchanged sentences

Effect of changes in volatilities 51 14

Effect of changes in future expected policyholder behavior 89 40

Effect of timing and all other 19 ( 29 )

4 unchanged sentences

Net amount at risk $ 2,138 $ 2,885

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.

Excluded from the table above are MRB gains (losses) of $( 181 ) million and $ 186 million for the nine months ended September 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.

For MRB reinsurance, Chubb estimates fair value using an internal valuation model which includes a number of factors including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality.

In the third quarter of 2023, we completed a review of policyholder behavior related to annuitizations, partial withdrawals, lapses, and mortality for our variable annuity reinsurance business.

• As annuitization and partial withdrawal experience continued to emerge, we refined our assumptions for an additional year of data.

The annuitization assumption updates included treaty-based and age-based behavior, as well as a refresh of our annuitization rates which depend on the value of the guarantees.

These refinements resulted in a net increase of approximately $ 92 million to the MRB fair value, recognized as a Market risk benefits loss.

• We also refined our lapse and mortality assumptions based on additional emerging experience.

The changes had an insignificant impact on the MRB fair value.

For MRB, Chubb estimates fair value using an internal valuation model which includes a number of factors including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality.

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

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

Valuation Technique Significant Unobservable Inputs September 30, 2023

September 30, 2022

Ranges Weighted Average (1)

7 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

A lapse rate is the percentage of in-force policies surrendered in a given calendar year.

6 unchanged sentences

All GLB reinsurance treaties include claim limits to protect Chubb in the event that actual annuitization behavior is significantly higher than expected.

In general, Chubb assumes that GLB annuitization rates will be

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

higher for policies with more valuable guarantees (policies with guaranteed values far in excess of their account values).

In general, Chubb assumes that GLB annuitization rates will be higher for policies with more valuable guarantees (policies with guaranteed values far in excess of their account values).

Chubb also assumes that GLB annuitization rates increase as policyholders get older.

9 unchanged sentences

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

June 30 December 31

September 30 December 31

(in millions of U.S.

4 unchanged sentences

Total $ 5,306 $ 5,190

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

Six Months Ended

Nine Months Ended

(in millions of U.S.

1 unchanged sentence

Balance – beginning of period $ 5,190 $ 5,560

Acquisition of Cigna — 301

Premiums and deposits 724 1,147

8 unchanged sentences

(1) Cash surrender value represents the amount of the contract holder's account balances distributable at the balance sheet date less certain surrender charges.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Commitments, contingencies, and guarantees

11 unchanged sentences

We also consider economic hedging for planned cross border transactions.

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:

June 30, 2023 December 31, 2022

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

September 30, 2023 December 31, 2022

Balance Sheet

20 unchanged sentences

(2) Related to MRB book of business.

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.

At September 30, 2023, and December 31, 2022, net derivative liabilities of $ 97 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

b) Hedge accounting

3 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 June 30, 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 September 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.

2 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions of U.S.

dollars) 2023

Gain recognized in OCI $ 57 $ 40

Net realized gains reclassified from OCI 11 31

Gain/(loss) recognized in OCI $ ( 17 ) $ ( 94 ) $ 23 $ ( 94 )

Net realized gain/(loss) reclassified from OCI ( 51 ) ( 32 ) ( 20 ) ( 32 )

Interest expense reclassified from OCI ( 4 ) — ( 12 ) —

9 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions of U.S.

dollars) 2023

Gain recognized in OCI $ 35 $ 12

Gain/(loss) recognized in OCI $ ( 20 ) $ 64 $ ( 8 ) $ 64

Interest income reclassified from OCI 3 — 10 —

5 unchanged sentences

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

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

59 unchanged sentences

Remaining contractual maturity

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

(in millions of U.S.

5 unchanged sentences

Municipal 6 —

Equity securities 18 —

$ 1,469 $ 1,523

2 unchanged sentences

Chubb Limited and Subsidiaries

At June 30, 2023, and December 31, 2022, our repurchase agreement obligations of $ 1,518 million and $ 1,419 million, respectively, were fully collateralized.

At September 30, 2023, and December 31, 2022, our repurchase agreement obligations of $ 2,617 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

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Up to 30 Days 30-90 Days Greater than

3 unchanged sentences

Cash $ — $ — $ 46 $ 46 $ 12 $ — $ 12

1,138 — — $ 1,138 — — $ —

Treasury / Agency — 103 — 103 — 101 101

11 unchanged sentences

e) Fixed maturities

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 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.

At September 30, 2023, and December 31, 2022, commitments to purchase fixed income securities over the next several years were $ 1,075 million and $ 770 million, respectively.

f) Private equities

At September 30, 2023, included in Private equities in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 13.1 billion.

In connection with these investments, we have commitments that may require funding of up to $ 6.3 billion over the next several years.

1 unchanged sentence

g) Income taxes

At June 30, 2023, $ 61 million of unrecognized tax benefits remain out standing.

At September 30, 2023, $ 67 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.

10 unchanged sentences

i) Lease commitments

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.

At September 30, 2023, and December 31, 2022, the right-of-use asset was $ 549 million and $ 607 million, respectively, recorded within Other assets , and the lease liability was $ 577 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 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 September 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.

3 unchanged sentences

dollars (USD):

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

8 unchanged sentences

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

The capital reduction was subject to publication requirements and became effective in accordance with Swiss law on May 22, 2023.

During the nine months ended September 30, 2023, 8,634,600 shares were

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.

repurchased, 14,925,028 shares were canceled, and 2,024,083 net shares were issued under employee share-based compensation plans.

At September 30, 2023, 23,467,247 Common Shares remain in treasury.

Chubb Limited securities repurchase authorizations

4 unchanged sentences

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 Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

3 unchanged sentences

Repurchase authorization remaining at end of period $ 4,398 $ 1,816 $ 4,398 $ 1,816

$ — $ 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)

Chubb Limited and Subsidiaries

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

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

8 unchanged sentences

Income tax (expense) benefit 29 147 ( 93 ) 1,174

Total other comprehensive loss ( 2,141 ) ( 2,898 ) ( 1,671 ) ( 10,867 )

Noncontrolling interests, net of tax 3 — 3 —

Balance – end of period, net of tax ( 8,953 ) ( 8,611 ) ( 8,953 ) ( 8,611 )

2 unchanged sentences

Change in period, before tax 683 479 497 1,546

Income tax (expense) benefit ( 7 ) ( 62 ) 14 ( 95 )

Income tax expense ( 35 ) ( 57 ) ( 21 ) ( 152 )

Total other comprehensive income 648 422 476 1,394

Noncontrolling interests, net of tax ( 3 ) — ( 3 ) —

Balance – end of period, net of tax 404 ( 5 ) 404 ( 5 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

(in millions of U.S.

dollars) As Adjusted As Adjusted

Accumulated other comprehensive income (loss) (AOCI) - continued

Instrument-specific credit risk on market risk benefits

1 unchanged sentence

Change in period, before and net of tax ( 5 ) 8 3 48

Total other comprehensive income (loss) ( 5 ) 8 3 48

Noncontrolling interests, net of tax — — — —

Balance – end of period, net of tax ( 21 ) ( 9 ) ( 21 ) ( 9 )

5 unchanged sentences

Income tax benefit 13 7 21 42

Total other comprehensive loss ( 304 ) ( 935 ) ( 258 ) ( 1,589 )

Noncontrolling interests, net of tax ( 76 ) — ( 76 ) —

Balance – end of period, net of tax ( 3,148 ) ( 3,703 ) ( 3,148 ) ( 3,703 )

4 unchanged sentences

Change in period, before tax 38 ( 62 ) 55 ( 62 )

Income tax expense ( 11 ) — ( 4 ) —

Income tax (expense) benefit ( 7 ) 13 ( 11 ) 13

Total other comprehensive income (loss) 31 ( 49 ) 44 ( 49 )

Noncontrolling interests, net of tax — — — —

Balance – end of period, net of tax ( 22 ) ( 49 ) ( 22 ) ( 49 )

2 unchanged sentences

Change in period, before tax ( 1 ) 3 ( 3 ) 27

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

Income tax expense — ( 1 ) — ( 6 )

Total other comprehensive income (loss) ( 1 ) 2 ( 3 ) 21

Noncontrolling interests, net of tax — — — —

Balance – end of period, net of tax 222 261 222 261

3 unchanged sentences

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

Three Months Ended Six Months Ended Consolidated Statement of Operations Location

June 30 June 30

Three Months Ended Nine Months Ended Consolidated Statement of Operations Location

September 30 September 30

(in millions of U.S.

10 unchanged sentences

Cross-currency swaps ( 4 ) — ( 12 ) — Interest expense

Income tax expense ( 2 ) — ( 5 ) — Income tax expense

Income tax benefit 12 7 7 7 Income tax expense

$ ( 43 ) $ ( 25 ) $ ( 25 ) $ ( 25 ) Net income

20 unchanged sentences

2023 2022 2023 2022

Three Months Ended June 30 U.S.

Three Months Ended September 30 U.S.

Plans Non-U.S.

12 unchanged sentences

2023 2022 2023 2022

Six Months Ended June 30 U.S.

Nine Months Ended September 30 U.S.

Plans Non-U.S.

16 unchanged sentences

Benefit Plans

Three Months Ended June 30 2023 2022 2023 2022

Three Months Ended September 30 2023 2022 2023 2022

(in millions of U.S.

10 unchanged sentences

Benefit Plans

Six Months Ended June 30 2023 2022 2023 2022

Nine Months Ended September 30 2023 2022 2023 2022

(in millions of U.S.

11 unchanged sentences

Other income and expense

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

1 unchanged sentence

Equity in net income (loss) of partially-owned entities $ 150 $ ( 111 ) $ 610 $ 180

$ 120 $ ( 72 ) $ 460 $ 291

Gains (losses) from fair value changes in separate account assets (1)

( 19 ) ( 67 ) ( 56 ) ( 116 )

Asset management and performance fee revenue

Asset management and performance fee expense

( 33 ) — ( 33 ) —

Federal excise and capital taxes ( 6 ) ( 6 ) ( 17 ) ( 15 )

1 unchanged sentence

Total $ 154 $ ( 202 ) $ 550 $ 9

(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.

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

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.

Equity in net income of partially-owned entities 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) where we own more than three percent, and partially-owned insurance companies.

This line item includes mark-to-market gains (losses) on private equities of $ 51 million and $ 290 million for the three and nine months ended September 30, 2023, respectively, and $( 190 ) million and $( 69 ) million, respectively, for the prior year periods.

Other income and expense includes net income attributable to our investment in Huatai under the equity method of accounting comprising income of $ 36 million through June 30, 2023, and $ 28 million and $ 83 million for the three and nine months ended September 30, 2022, respectively.

Effective July 1, 2023, we discontinued the equity method of accounting and include the results of operations of Huatai in our consolidated results.

Also included in Other income and expense are gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations.

Asset management and performance fee revenue and expense primarily relate to the management of third-party assets by Huatai's asset management business, which is unrelated to Huatai Group's core insurance operations.

These revenues and expenses are recognized in the period in which the services are performed.

Certain federal excise and capital taxes incurred as a result of capital management initiatives are included in Other income and expense as these are considered capital transactions and are excluded from underwriting results.

4 unchanged sentences

These segments distribute their products through various forms of brokers, agencies, and direct marketing programs.

All business segments have established relationships with reinsurance intermediaries.

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.

All business segments have established relationships with reinsurance intermediar ies.

Commencing in the third quarter of 2023, the results of Huatai Group's life and asset management business are included in the Life Insurance segment, and the results of Huatai Group's P&C business are included in the Overseas General Insurance segment.

Results for Huatai Group’s non-insurance operations, comprising real estate and holding company activity, are included in Corporate.

Commencing in the third quarter of 2022, the results of Cigna's business in Asia are included in our Life Insurance segment and , to a lesser extent, 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.

4 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), market risk benefits gains (losses), interest expense, Cigna integration expenses, and income tax are reported within Corporate.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Revenue and expenses managed at the corporate level, including Net realized gains (losses), Market risk benefits gains (losses), Interest expense, Cigna integration expenses, Income tax, and Net income (loss) attributable to noncontrolling interests 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 primarily related to the acquisition of Cigna's business in Asia.

4 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

commodity pricing impacts underwriting results.

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

6 unchanged sentences

For the Three Months Ended

June 30, 2023

September 30, 2023

(in millions of U.S.

19 unchanged sentences

Net income (loss) ( 867 ) — 2,040

Net loss attributable to noncontrolling interests

( 3 ) — ( 3 )

Net income (loss) attributable to Chubb $ ( 864 ) $ — $ 2,043

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

1 unchanged sentence

For the Three Months Ended

June 30, 2022 (As Adjusted)

September 30, 2022 (As Adjusted)

(in millions of U.S.

8 unchanged sentences

Underwriting income (loss) 392 132 158 316 ( 123 ) 111 ( 165 ) 86 907

Net investment income (loss) 522 64 7 162 76 109 ( 4 ) ( 48 ) 888

Net investment income

589 76 9 151 71 147 5 ( 69 ) 979

Other (income) expense 6 1 1 ( 2 ) — 4 194 ( 2 ) 202

8 unchanged sentences

Net income (loss) $ ( 1,204 ) $ — $ 792

For the Six Months Ended

June 30, 2023

For the Nine Months Ended

September 30, 2023

(in millions of U.S.

19 unchanged sentences

Net income (loss) $ ( 2,647 ) $ — $ 5,725

Net loss attributable to noncontrolling interests

( 3 ) — ( 3 )

Net income (loss) attributable to Chubb $ ( 2,644 ) $ — $ 5,728

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Six Months Ended

June 30, 2022 (As Adjusted)

For the Nine Months Ended

September 30, 2022 (As Adjusted)

(in millions of U.S.

22 unchanged sentences

Earnings per share

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

2 unchanged sentences

Net income $ 2,040 $ 792 $ 5,725 $ 3,935

Denominator for basic earnings per share:

Net loss attributable to noncontrolling interests ( 3 ) — ( 3 ) —

Net income attributable to Chubb $ 2,043 $ 792 $ 5,728 $ 3,935

Denominator for basic earnings per share attributable to Chubb:

Weighted-average shares outstanding 409,505,454 416,542,101 412,076,470 421,290,032

Denominator for diluted earnings per share:

Denominator for diluted earnings per share attributable to Chubb:

Share-based compensation plans 3,100,505 3,076,855 3,288,940 3,733,449

1 unchanged sentence

412,605,959 419,618,956 415,365,410 425,023,481

Basic earnings per share $ 4.35 $ 2.82 $ 8.92 $ 7.42

Diluted earnings per share $ 4.32 $ 2.80 $ 8.84 $ 7.35

Basic earnings per share attributable to Chubb $ 4.99 $ 1.90 $ 13.90 $ 9.34

Diluted earnings per share attributable to Chubb $ 4.95 $ 1.89 $ 13.79 $ 9.26

Potential anti-dilutive share conversions 2,562,206 1,693,502 2,330,821 1,377,784

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

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.

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