What changed in this filing

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Item 1. Financial Statements

2024-04-26 compared with 2023-11-01 · 377 added, 896 removed, 1221 unchanged (51% of the section changed)

2 unchanged sentences

Chubb Limited and Subsidiaries

September 30, 2023 December 31, 2022

March 31 December 31

(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 )

dollars, except share and per share data) 2024 2023

Short-term investments, at fair value (amortized cost – $ 5,108 and $ 4,551 ) (includes variable interest entities (VIE) balances of $ 65 and $ 217 )

$ 5,107 $ 4,551

2 unchanged sentences

108,289 106,571

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

(fair value – nil and $ 8,439 )

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

Equity securities, at fair value 3,395 827

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)

Private debt held-for-investment, at amortized cost, net of valuation allowance - $ 5 and $ 4

Equity securities, at fair value (includes VIE balances of $ 1,163 and $ 1,078 )

Private equities (includes VIE balances of $ 22 and $ 21 )

14,281 14,078

Other investments (includes VIE balances of $ 4,408 and $ 3,773 )

Total investments 140,370 136,735

Cash, including restricted cash $ 143 and $ 172 (includes VIE balances of $ 127 and $ 117 )

Securities lending collateral 1,708 1,299

9 unchanged sentences

Other intangible assets 6,709 6,775

Deferred tax assets 1,761 1,741

Prepaid reinsurance premiums 3,241 3,221

Investments in partially-owned insurance companies 188 2,507

Separate account assets 5,864 5,573

Other assets 7,591 7,546

Other assets (includes VIE balances of $ 14 and $ 33 )

Total assets $ 234,867 $ 230,682

7 unchanged sentences

Securities lending payable 1,708 1,299

Accounts payable, accrued expenses, and other liabilities 8,422 7,148

Accounts payable, accrued expenses, and other liabilities (includes VIE balances of $ 68 and $ 18 )

Deferred tax liabilities 1,543 1,555

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

Repurchase agreements (includes VIE balances of $ 1,229 and $ 1,009 )

Short-term debt 2,265 1,460

4 unchanged sentences

Shareholders’ equity

Common Shares (CHF 0.50 and 24.15 par value;

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

Common Shares (CHF 0.50 par value;

431,451,586 shares issued;

406,033,066 and 405,269,637 shares outstanding)

5 unchanged sentences

Total Chubb shareholders’ equity 60,535 59,507

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

Noncontrolling interests (includes VIE balances of $ 2,943 and $ 2,705 )

Total shareholders' equity 64,431 63,691

3 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

Three Months Ended

(in millions of U.S.

dollars, except per share data) As Adjusted As Adjusted

dollars, except per share data) 2024 2023

Net premiums written $ 12,221 $ 10,710

6 unchanged sentences

Losses and loss expenses 5,727 5,148

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

938 707 2,565 1,441

Policy benefits (includes remeasurement gains (losses) of $( 19 ) and $ 1 )

Policy acquisition costs 2,207 1,948

8 unchanged sentences

Net income $ 2,294 $ 1,892

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

Net income attributable to noncontrolling interests 151 —

Net income attributable to Chubb $ 2,143 $ 1,892

Other comprehensive income (loss)

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

Unrealized appreciation (depreciation) $ ( 677 ) $ 1,786

Current discount rate on future policy benefits ( 53 ) ( 151 )

2 unchanged sentences

Other, including postretirement benefit liability adjustment 31 ( 33 )

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

Other comprehensive income (loss), before income tax ( 614 ) 1,422

Income tax (expense) benefit related to OCI items 9 ( 132 )

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 )

Other comprehensive income (loss) ( 605 ) 1,290

Comprehensive income 1,689 3,182

Comprehensive income attributable to noncontrolling interests 123 —

Comprehensive income attributable to Chubb $ 1,566 $ 3,182

Earnings per share

4 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

Three Months Ended

(in millions of U.S.

dollars) As Adjusted As Adjusted

dollars) 2024 2023

Common Shares

Balance – beginning of period $ 241 $ 10,666 $ 10,346 $ 10,985

Par value reduction — — ( 9,759 ) —

Cancellation of treasury shares — ( 320 ) ( 346 ) ( 639 )

Balance – end of period 241 10,346 241 10,346

Balance – beginning and end of period $ 241 $ 10,346

Common Shares in treasury

1 unchanged sentence

Common Shares repurchased ( 316 ) ( 428 )

Cancellation of treasury shares — 2,473 2,869 4,983

Net shares issued under employee share-based compensation plans 255 200

2 unchanged sentences

Balance – beginning of period 15,665 7,166

Net shares redeemed (issued) under employee share-based

compensation plans 3 10 ( 203 ) ( 185 )

Net shares issued under employee share-based compensation plans ( 159 ) ( 211 )

Exercise of stock options ( 19 ) ( 13 )

Share-based compensation expense 82 82

Par value reduction — — 9,759 —

Net decrease due to acquisitions ( 31 ) —

Funding of dividends declared to Retained earnings ( 350 ) ( 344 )

3 unchanged sentences

Net income attributable to Chubb 2,143 1,892

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

Funding of dividends declared from Additional paid-in capital 350 344

3 unchanged sentences

Balance – beginning of period ( 6,809 ) ( 10,185 )

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

Other comprehensive income (loss) ( 577 ) 1,290

Balance – end of period ( 7,386 ) ( 8,895 )

2 unchanged sentences

Balance – beginning of period $ 4,184 $ —

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

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

Net decrease due to acquisitions ( 411 ) —

Net income attributable to noncontrolling interests 151 —

Other comprehensive loss attributable to noncontrolling interests ( 28 ) —

4 unchanged sentences

Chubb Limited and Subsidiaries

Nine Months Ended

Three Months Ended

(in millions of U.S.

dollars) As Adjusted

dollars) 2024 2023

Cash flows from operating activities

12 unchanged sentences

Accounts payable, accrued expenses, and other liabilities ( 267 ) ( 390 )

Income taxes payable ( 6 ) ( 108 )

Income taxes 257 128

Insurance and reinsurance balances receivable ( 586 ) ( 402 )

1 unchanged sentence

Deferred policy acquisition costs ( 390 ) ( 254 )

Other 796 ( 95 )

Net purchases of investments by consolidated investment products ( 404 ) —

Net cash flows from operating activities 3,220 2,251

11 unchanged sentences

Private equity distributions 177 273

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

Acquisition of subsidiaries ( 236 ) ( 23 )

Other ( 382 ) ( 172 )

3 unchanged sentences

Common Shares repurchased ( 404 ) ( 545 )

Proceeds from issuance of long-term debt 996 —

Proceeds from issuance of repurchase agreements 1,062 1,308

4 unchanged sentences

Policyholder contract withdrawals ( 245 ) ( 101 )

Tax withholding payments for share-based compensation plans ( 100 ) ( 100 )

Third-party capital invested into consolidated investment products 509 —

Third-party capital distributed by consolidated investment products ( 413 ) —

Other ( 109 ) ( 109 )

Net cash flows used for financing activities ( 3,325 ) ( 2,730 )

Net cash flows from (used for) financing activities 562 ( 1,424 )

Effect of foreign currency rate changes on cash and restricted cash ( 6 ) ( 2 )

17 unchanged sentences

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.

These interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.

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.

On July 1, 2023, Chubb discontinued equity method accounting for its investment in Huatai Group upon obtaining a controlling interest and applied consolidation accounting.

Therefore, effective July 1, 2023, business activity for, and the financial position of, Huatai Group is reported at 100 percent on the Consolidated Financial Statements.

At March 31, 2024, and December 31, 2023, our aggregate ownership interest in Huatai Group was approximately 85.5 percent and 76.5 percent, respectively.

The relevant amounts attributable to shareholders other than Chubb are reflected in the Consolidated Financial Statements under the captions Noncontrolling interests, Net income (loss) attributable to noncontrolling interests, and Comprehensive income (loss) attributable to noncontrolling interests.

Refer to Note 2 for additional information on the acquisition of Huatai Group.

Huatai Group's life insurance 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.

1 unchanged sentence

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 Form 10-K.

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

Targeted Improvements to the Accounting for Long-Duration Contracts

Effective January 1, 2023, we adopted new guidance on the accounting for long-duration contracts (LDTI).

The new accounting guidance requires more frequent updating of assumptions and a standardized discount rate for the future policy benefit liability, a requirement to use the fair value measurement model for policies with market risk benefits, simplified amortization of deferred acquisition costs, and enhanced disclosures.

With the exception of market risk benefits, we adopted this guidance on a modified retrospective basis.

Under the modified retrospective basis, the liability for future policy benefits is updated to remove any amounts related to changes to the original discount rate at January 1, 2021 (the transition date) in AOCI and future cash flow assumptions are applied to contracts in force.

The liability for future policy benefits prior to the transition date continues to use the original discount rate (interest accretion rate).

The guidance for long-duration contracts applicable to market risk benefits, primarily assumed reinsurance programs involving minimum benefit guarantees under variable annuity contracts, was adopted on a retrospective transition approach.

Under the retrospective transition approach, we calculated the fair value of market risk benefits which were previously accounted for under an insurance accounting model and recognized an adjustment to retained earnings as of January 1, 2021.

On January 1, 2021, we recognized a cumulative effect adjustment and increased beginning retained earnings by $ 52 million, and decreased AOCI by $ 1.8 billion.

Results for the prior reporting periods in this report are presented in accordance with the new guidance.

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:

December 31, 2022

(in millions of U.S.

dollars) As Previously Reported LDTI Adoption Adjustment As

Consolidated balance sheet

Reinsurance recoverable on losses and loss expenses $ 18,901 $ ( 42 ) $ 18,859

Reinsurance recoverable on policy benefits 303 ( 1 ) 302

Deferred policy acquisition costs 5,788 243 6,031

Value of business acquired 3,596 106 3,702

Prepaid reinsurance premiums 3,140 ( 4 ) 3,136

Investments in partially-owned insurance companies 2,877 ( 370 ) 2,507

Unpaid losses and loss expenses 76,323 ( 576 ) 75,747

Unearned premiums 20,360 ( 647 ) 19,713

Future policy benefits 10,120 356 10,476

Market risk benefits — 800 800

Insurance and reinsurance balances payable 7,795 ( 15 ) 7,780

Deferred tax liabilities 292 85 377

Retained Earnings 48,334 ( 29 ) 48,305

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

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Three Months Ended Nine Months Ended

September 30, 2022 September 30, 2022

(in millions of U.S.

dollars) As Previously Reported LDTI Adoption Adjustment As

Adjusted As Previously Reported LDTI Adoption Adjustment As

Consolidated statements of operations and comprehensive income

Net premiums written $ 12,020 $ ( 8 ) $ 12,012 $ 31,521 $ ( 27 ) $ 31,494

Net premiums earned 11,535 ( 5 ) 11,530 29,838 ( 22 ) 29,816

Net realized gains (losses) ( 384 ) ( 72 ) ( 456 ) ( 787 ) ( 149 ) ( 936 )

Market risk benefits gains (losses) — 69 69 — 85 85

Losses and loss expenses 7,279 ( 216 ) 7,063 17,474 ( 641 ) 16,833

Policy benefits 486 221 707 790 651 1,441

Policy acquisition costs 1,975 ( 5 ) 1,970 5,451 ( 36 ) 5,415

Other (income) expense 188 14 202 ( 21 ) 12 ( 9 )

Income tax expense 265 ( 2 ) 263 913 ( 6 ) 907

Net Income 812 ( 20 ) 792 4,001 ( 66 ) 3,935

Other comprehensive income

Change in current discount rate on future policy benefits — 479 479 — 1,546 1,546

Change in instrument-specific credit risk on market risk benefits — 8 8 — 48 48

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

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.

dollars) As Previously Reported LDTI Adoption Adjustment As

Consolidated statement of cash flows

Net cash flows from operating activities $ 8,592 $ 8 $ 8,600

Net cash flows used for financing activities ( 2,722 ) ( 8 ) ( 2,730 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following table presents a reconciliation of the pre-adoption December 31, 2020, to the post adoption January 1, 2021, balance of future policy benefits:

Life Insurance Overseas General Insurance Offsetting Equity Line Classification

(in millions of U.S.

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

Future policy benefits

Balance – December 31, 2020 (1)

$ 391 $ 2,578 $ 2,270 $ 72 $ 754 $ 6,065

Effect of change in current discount rate 63 1,189 299 17 19 1,587 AOCI

Balance – January 1, 2021 $ 454 $ 3,767 $ 2,569 $ 89 $ 773 $ 7,652

(1) Includes future policy benefits previously included within Unpaid losses on the pre-adoption Consolidated balance sheets, primarily certain international A&H business, and excludes deferred profit liability and certain guaranteed minimum death benefits reclassified to Market risk benefits on the post adoption period balance sheets.

The following table presents a reconciliation of the pre-adoption December 31, 2020, to the post adoption January 1, 2021, balance of market risk benefits:

(in millions of U.S.

dollars) Offsetting Equity Line Classification

Market risk benefits

Balance – December 31, 2020 $ 1,138

Cumulative effect of changes in instrument-specific credit risk between original contract issuance date and transition date (1)

Other fair value adjustments ( 59 ) Retained Earnings

Balance – January 1, 2021 $ 1,163

(1) Includes $ 77 million of instrument-specific credit risk allocated from retained earnings to AOCI.

Significant accounting policies

The following accounting policies have been updated to reflect the adoption of LDTI.

Refer to Note 1 in the 2022 Form 10-K for a complete description of our accounting policies.

Deferred policy acquisition costs (DAC)

Policy acquisition costs on long-duration contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability.

Deferred policy acquisition costs are amortized on a constant level basis over the expected term of the related contracts to approximate straight-line amortization.

The constant level basis used for amortization is the face amount in force and is projected using the same assumptions used in estimating the liability for future policy benefits.

If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time.

Unexpected changes in the in-force portfolio, due to variances in mortality and lapse experience, are recognized over the contract term.

Changes in future mortality and lapse assumptions are also recognized prospectively over the remaining expected contract term.

Future policy benefits

For traditional and limited-payment contracts, contracts are grouped into cohorts by contract type and issue year to determine a liability for future policy benefits.

The future policy benefit liability (FPBL) is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, and is accrued as premium revenue is recognized.

The valuation of this liability requires management to make estimates and assumptions regarding expenses, mortality, and persistency.

Estimates are primarily based on historical experience.

Actual results could differ materially from these estimates.

The liability is adjusted for differences between actual and expected experience.

With the exception of the expense assumption, we review our future cash flow assumptions at least annually to determine if the net premium ratio (NPR), the mechanism used to record the liability as premium is earned, used to calculate the liability should be changed at that time.

We have elected to use expense assumptions that are locked in at contract inception and are not subsequently reviewed or updated.

Each quarter, we update the cash flows expected over the entire life of each cohort for actual historical experience and projected future cash

During the three months ended March 31, 2024, Goodwill increased $ 10 million, primarily reflecting the impact of foreign exchange.

c) New Accounting Pronouncements

Accounting guidance not yet adopted

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (FASB) issued guidance that requires expanded reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker.

The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024.

Retrospective application is required.

We are currently evaluating the impact of this disclosure-only requirement.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued guidance that requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid.

The guidance is effective for annual periods beginning after December 15, 2024.

Prospective application is required, with retrospective application permitted.

We are currently evaluating the impact of this disclosure-only requirement.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

These updated cash flows are used to calculate the revised NPR, which is used to derive an updated FPBL as of the beginning of the current reporting period, discounted at the original contract issuance discount rate.

This amount is then compared to the carrying amount of the liability as of that same date, but before the updating of cash flow assumptions, to determine the current period change in FPBL.

This current period change in the liability is the liability remeasurement gain or loss and is recorded in Policy benefits in the Consolidated statements of operations.

In subsequent periods, the revised NPR is used to measure the FPBL until future revisions become required.

For traditional and limited-payment contracts, the discount rate assumption based on an upper-medium grade fixed-income instrument yield.

An equivalent rate is derived based on A-credit-rated fixed-income instruments with similar duration to the liability.

The discount rate assumption is updated quarterly and used to remeasure the liability at each reporting date, with the resulting change reflected in Other comprehensive income.

For liability cash flows that are projected beyond the duration of market-observable A-credit-rated fixed-income instruments, we use the last market-observable yield level, as the basis for a linear interpolation to determine yield assumptions for durations that do not have market-observable yields.

Deferred profit liability

For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (DPL) and recorded as a component of Future policy benefits in the Consolidated balance sheets.

Net premiums are measured using actual cash flows and future cash flow assumptions consistent with those used in the measurement of the liability for future policy benefits and remeasured quarterly.

The DPL is amortized in proportion to the discounted in-force policies.

Interest is accreted on the balance of the DPL using the discount rate consistent with the interest accretion on the FPBL.

The recalculated DPL, including adjusted amortization through the current period, is compared to the current carrying amount and the difference is recognized as an adjustment to Policy benefits in the Consolidated statements of operations as a remeasurement gain or loss.

Market risk benefits

Chubb reinsures various death and living benefit guarantees associated with variable annuities issued primarily in the United States, which are referred to as market risk benefits.

These reinsurance contracts provide both protection to the ceding entity from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk.

Market risk benefits are measured at fair value using a valuation model based on current net exposures, market data, our experience, and other factors.

Changes in fair value are recognized in Market risk benefits gains (losses) in the Consolidated statements of operations, except the change in fair value due to a change in the instrument-specific credit risk, which is recognized in other comprehensive income.

Refer to Note 11 for additional information.

Huatai Insurance Group Co., Ltd.

2 unchanged sentences

(Huatai Life), Huatai Asset Management Co., Ltd., and Huatai Baoxing Fund Management Co., Ltd., of which Huatai Group owns 100 percent, 80 percent, 91 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.

On July 1, 2023, Chubb increased ownership interest from approximately 64.2 percent to approximately 69.6 percent.

At that time, Chubb discontinued the equity method of accounting and applied consolidation accounting.

Refer to Note 2 to the Consolidated Financial Statements in our 2023 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

In the first quarter of 2024, we closed on incremental ownership interests of approximately 9.0 percent for $ 555 million, $ 319 million of which was previously paid prior to 2024, and $ 236 million was paid in 2024.

Our aggregate ownership interest in Huatai Group was approximately 85.5 percent as of March 31, 2024.

Chubb has outstanding agreements for approximately 0.6 percent of incremental ownership interests, pending completion of certain closing conditions.

We have paid deposits of $ 12 million related to these outstanding agreements, with approximately $ 24 million remaining to be paid upon closing, based on current exchange rates.

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.

1 unchanged sentence

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

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

Chubb paid approximately $ 5.4 billion in cash for the operations, which include Cigna's accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia, collectively referred to as Cigna's business in Asia.

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

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

Refer to the 2022 Form 10-K for additional information on this acquisition.

The acquisition of Cigna's business in Asia generated $ 1,177 million of goodwill, attributable to expected growth and profitability, and $ 309 million of other intangible assets.

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

Additionally, the acquisition of Cigna's business in Asia generated $ 3,633 million of value of business acquired (VOBA).

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

Direct costs related to the acquisition were expensed as incurred.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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.

dollars) 2022

Investments and Cash $ 5,274

Accrued investment income 33

Insurance and reinsurance balances receivable 52

Reinsurance recoverable on losses and loss expenses 3

Reinsurance recoverable on future policy benefits 85

Value of business acquired 3,633

Goodwill and intangible assets 1,486

Other assets 648

Total assets $ 11,214

Unpaid losses and loss expenses $ 12

Unearned premiums 60

Future policy benefits 3,856

Insurance and reinsurance balances payable 115

Accounts payable, accrued expenses, and other liabilities 926

Deferred tax liabilities 886

Total liabilities $ 5,855

Net acquired assets, including goodwill 5,359

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.

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 been consummated on January 1, 2021, 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 and recognition of interest expense associated with the repurchase agreement transactions used to effect the acquisition.

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

3 unchanged sentences

Net income $ 1,900

Net income attributable to Chubb $ 1,890

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

September 30, 2023 Amortized

a) Fixed maturities

March 31, 2024 Amortized

Cost Valuation Allowance Gross

21 unchanged sentences

$ 111,128 $ ( 156 ) $ 1,148 $ ( 5,549 ) $ 106,571

December 31, 2022 Amortized

Cost Valuation Allowance Net Carrying Value Gross

Appreciation Gross

Depreciation Fair Value

(in millions of U.S.

Held to maturity

Treasury / Agency $ 1,417 $ — $ 1,417 $ 1 $ ( 48 ) $ 1,370

1,140 ( 4 ) 1,136 — ( 82 ) 1,054

Corporate and asset-backed securities 1,733 ( 28 ) 1,705 1 ( 126 ) 1,580

Mortgage-backed securities 1,456 ( 1 ) 1,455 — ( 104 ) 1,351

Municipal 3,136 ( 1 ) 3,135 1 ( 52 ) 3,084

$ 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:

December 31, 2022

(in millions of U.S.

dollars, except for percentages) Amortized cost % of Total

AAA $ 1,612 18 %

AA 5,023 57 %

Total $ 8,882 100 %

The following table presents fixed maturities by contractual maturity:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions of U.S.

8 unchanged sentences

$ 108,289 $ 108,289 $ 106,571 $ 106,571

Held to maturity

Due in 1 year or less $ — $ — $ 1,015 $ 1,003

Due after 1 year through 5 years — — 3,658 3,531

Due after 5 years through 10 years — — 1,460 1,423

Due after 10 years — — 1,260 1,131

— — 7,393 7,088

Mortgage-backed securities — — 1,455 1,351

$ — $ — $ 8,848 $ 8,439

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 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.

b) Gross unrealized loss

Fixed maturities in an unrealized loss position at March 31, 2024, and December 31, 2023, 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 f) in the 2023 Form 10-K for further information on factors considered in the evaluation of expected credit losses.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following tables present, for 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 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 continuously been in an unrealized loss position:

0 – 12 Months Over 12 Months Total

September 30, 2023 Fair Value Gross

March 31, 2024 Fair Value Gross

Loss Fair Value Gross

18 unchanged sentences

Total AFS fixed maturities $ 8,569 $ ( 176 ) $ 53,950 $ ( 4,129 ) $ 62,519 $ ( 4,305 )

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.

At March 31, 2024, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 543 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

4 unchanged sentences

Write-offs charged against the expected credit loss ( 5 ) ( 2 )

Foreign currency revaluation — ( 2 ) — ( 2 )

Recovery of expected credit loss ( 67 ) ( 58 )

2 unchanged sentences

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

Provision for expected credit loss — — — 1

Recovery of expected credit loss — ( 1 )

Valuation allowance for expected credit losses - end of period $ — $ 33

Private debt held-for-investment

Valuation allowance for expected credit losses - beginning of period $ 4 $ —

Provision for expected credit loss 1 —

Valuation allowance for expected credit losses - end of period $ 5 $ —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

d) Net realized gains (losses)

c) Net realized gains (losses)

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

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

3 unchanged sentences

Gross realized losses ( 141 ) ( 159 )

Other investments - Fixed maturities 168 —

Net (provision for) recovery of expected credit losses 40 2

3 unchanged sentences

Equity securities 3 11

Private equities 40 ( 42 ) 75 17

Private equities (less than 3 percent ownership) 31 15

Foreign exchange ( 131 ) 131

1 unchanged sentence

Other derivative instruments ( 2 ) ( 1 )

92 ( 40 ) 79 ( 114 )

Other ( 8 ) ( 7 )

Net realized gains (losses) (pre-tax) $ ( 101 ) $ ( 77 )

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

(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:

1 unchanged sentence

(in millions of U.S.

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

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

Net gains (losses) recognized during the period $ 3 $ 168 $ 31 $ 202 $ 11 $ 15 $ 26

3 unchanged sentences

Chubb Limited and Subsidiaries

Nine Months Ended

(in millions of U.S.

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 )

Net gains (losses) recognized from sales of securities — ( 48 ) — ( 48 ) 406 — 406

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

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 September 30, 2023 December 31, 2022

d) Private equities

Private equities include 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 for private equities:

Period of Underlying Assets March 31, 2024 December 31, 2023

(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 consent from the general partner of the individual funds.

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.

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.

f) Restricted assets

e) 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 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.

Included in restricted assets at March

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

31, 2024, and December 31, 2023, are investments, primarily fixed maturities, totaling $ 18,568 million and $ 18,242 million, respectively, and cash of $ 143 million and $ 172 million, respectively.

The following table presents the components of restricted assets:

September 30 December 31

March 31 December 31

(in millions of U.S.

8 unchanged sentences

Total $ 18,711 $ 18,414

g) Variable interest entities (VIEs)

f) 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.

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

We have determined that we are the primary beneficiary and consolidate these investment products if we hold at least 10 percent ownership.

Refer to Note 1 g) of our 2023 Form 10-K 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.

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

Unconsolidated VIEs

We do not consolidate sponsored investment products where we have determined that we are not the primary beneficiary.

The carrying value of these investments at March 31, 2024, and December 31, 2023, was $ 140 million and $ 153 million, respectively, and our maximum risk of loss approximates the carrying amount.

These investments are classified within Equity securities.

Fair value measurements

12 unchanged sentences

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.

We do not adjust prices obtained from pricing services.

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.

Based on our understanding of the market inputs used

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

by the pricing services, all applicable investments have been valued in accordance with U.S.

We do not adjust prices obtained from pricing services.

Fixed maturities

24 unchanged sentences

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.

Fair values for 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

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

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

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.

6 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Investment derivatives

2 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

3 unchanged sentences

Other derivative instruments

We maintain positions in exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in market risk benefits (MRB) reserves and our MRB reinsurance business.

We maintain positions in exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected market risk benefits (MRB) claims, and therefore, an increase in MRB reserves.

Our positions in exchange-traded equity futures contracts are classified within Level 1.

11 unchanged sentences

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

September 30, 2023 Level 1 Level 2 Level 3 Total

March 31, 2024 Level 1 Level 2 Level 3 Total

(in millions of U.S.

22 unchanged sentences

Total liabilities measured at fair value $ 166 $ 116 $ 611 $ 893

(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.

(1) Excluded from the table above are other investments of $ 736 million, principally policy loans at March 31, 2024, measured using NAV as a practical expedient.

(2) Excluded from the table above are Private equities of $ 14,281 million at March 31, 2024, measured using NAV as a practical expedient.

(3) Refer to Note 10 for additional information on Market risk benefits.

15 unchanged sentences

Securities lending collateral — 1,299 — 1,299

Investment derivative instruments 82 — — 82

Investment derivatives 54 — — 54

Derivatives designated as hedging instruments — 136 — 136

Other derivative instruments 33 — — 33

Separate account assets 5,482 91 — 5,573

3 unchanged sentences

Derivatives designated as hedging instruments — 128 — 128

Other derivative instruments 37 5 — 42

Market risk benefits (3)

Total liabilities measured at fair value $ 173 $ 133 $ 771 $ 1,077

(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.

(1) Excluded from the table above are other investments of $ 702 million, principally policy loans at December 31, 2023, measured using NAV as a practical expedient.

(2) Excluded from the table above are Private equities of $ 14,078 million at December 31, 2023, measured using NAV as a practical expedient.

(3) Refer to Note 10 for additional information on Market risk benefits.

3 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

September 30, 2023

March 31, 2024

(in millions of U.S.

15 unchanged sentences

Three Months Ended

September 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 $ 549 $ 2,261 $ 19 $ 81 $ 9

Transfers into Level 3 — 2 — — —

Transfers out of Level 3 — ( 4 ) — — —

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

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

Purchases 39 164 4 3 1

Sales ( 19 ) ( 8 ) — ( 4 ) —

Settlements ( 25 ) ( 94 ) ( 4 ) — ( 6 )

Balance, end of period $ 506 $ 2,296 $ 19 $ 83 $ 3

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

Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet date $ ( 35 ) $ ( 19 ) $ — $ — $ —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Nine Months Ended

September 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 ( 22 ) ( 23 ) — — —

Change in Net Unrealized Gains/Losses in OCI 5 8 — — ( 1 )

Net Realized Gains/Losses ( 3 ) ( 7 ) — ( 6 ) —

Purchases 151 481 16 15 3

Sales ( 52 ) ( 70 ) — ( 14 ) ( 3 )

Settlements ( 31 ) ( 272 ) ( 2 ) — —

Balance, end of period $ 633 $ 2,569 $ 25 $ 85 $ 2

Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet date $ ( 1 ) $ ( 6 ) $ — $ ( 6 ) $ —

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

Nine Months Ended

September 30, 2022

March 31, 2023

(in millions of U.S.

4 unchanged sentences

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

Transfers into Level 3 23 41 — 1 —

Transfers out of Level 3 — ( 11 ) — — —

7 unchanged sentences

Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ ( 6 ) $ ( 5 ) $ — $ — $ ( 1 )

Excluded from the tables above is the reconciliation of Market risk benefits, which are presented in Note 10 Market risk benefits.

Refer to Note 10 for additional information.

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

2 unchanged sentences

The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values.

Refer to the 2022 Form 10-K for information on the fair value methods and assumptions for investments in partially-owned insurance companies, short-term and long-term debt, repurchase agreements, and trust-preferred securities.

Refer to the 2023 Form 10-K for information on the fair value methods and assumptions for private debt held-for-investment, short-term and long-term debt, repurchase agreements, and trust-preferred securities.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

1 unchanged sentence

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

September 30, 2023 Fair Value Net Carrying

March 31, 2024 Fair Value Net Carrying

(in millions of U.S.

7 unchanged sentences

Total liabilities $ — $ 17,545 $ — $ 17,545 $ 18,844

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, 2023 Fair Value Net Carrying

1 unchanged sentence

dollars) Level 1 Level 2 Level 3 Total

Fixed maturities held to maturity

Treasury / Agency $ 1,299 $ 71 $ — $ 1,370 $ 1,417

— 1,054 — 1,054 1,136

Corporate and asset-backed securities — 1,580 — 1,580 1,705

Mortgage-backed securities — 1,351 — 1,351 1,455

Municipal — 3,084 — 3,084 3,135

Private debt held-for-investment $ — $ — $ 2,560 $ 2,560 $ 2,553

Total assets $ — $ — $ 2,560 $ 2,560 $ 2,553

4 unchanged sentences

Total liabilities $ — $ 16,553 $ — $ 16,553 $ 17,636

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Reinsurance recoverable on ceded reinsurance

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions of U.S.

7 unchanged sentences

(1) Net of valuation allowance for uncollectible reinsurance.

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:

Nine Months Ended

The decrease in Reinsurance recoverable on losses and loss expenses was primarily due to a seasonal decrease in crop recoverables and a commutation in connection with a large structured transaction during the quarter.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

Three Months Ended

(in millions of U.S.

3 unchanged sentences

Write-offs charged against the valuation allowance — ( 5 )

Foreign exchange revaluation — ( 3 )

Valuation allowance for uncollectible reinsurance - end of period $ 375 $ 351

For additional information, refer to Note 1 d) to the Consolidated Financial Statements of our 2022 Form 10-K.

For additional information, refer to Note 1 e) to the Consolidated Financial Statements of our 2023 Form 10-K.

Deferred acquisition costs

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.

Deferred acquisition costs comprise capitalized costs on short-duration contracts of $ 3,510 million and $ 3,003 million and long-duration contracts of $ 4,027 million and $ 3,293 million at March 31, 2024, and 2023, respectively.

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

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

(in millions of U.S.

7 unchanged sentences

Total deferred acquisition costs on long-duration contracts $ 4,027

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

(in millions of U.S.

9 unchanged sentences

Chubb Limited and Subsidiaries

Goodwill, Value of business acquired, and Other intangible assets

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

(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 Chubb Consolidated

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 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.

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:

Nine Months Ended

(in millions of U.S.

dollars) 2023

Balance, beginning of period $ 3,702

Consolidation of Huatai Group 309

Amortization of VOBA (1)

Foreign exchange revaluation and other ( 101 )

Balance, end of period $ 3,675

(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:

Nine Months Ended

Three Months Ended

(in millions of U.S.

dollars) As Adjusted

dollars) 2024 2023

Gross unpaid losses and loss expenses – beginning of period $ 80,122 $ 75,747

11 unchanged sentences

Total 4,822 4,716

Consolidation of Huatai Group 405 —

Foreign currency revaluation and other 35 ( 196 )

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 $ 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.

(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, earned premiums, and A&H long-duration lines totaling $ 46 million and $( 8 ) million for the three months ended March 31, 2024 and 2023, respectively.

Net unpaid losses and loss expenses increased $ 940 million for the three months ended March 31, 2024, principally reflecting underlying exposure growth and the impact of a reinsurance commutation in connection with a large structured transaction during the quarter, partially offset by the impact of favorable prior period development and crop activity.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

5 unchanged sentences

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

Three Months Ended September 30 Nine Months Ended September 30

Three Months Ended March 31

(in millions of U.S.

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

dollars) Long-tail Short-tail Total

North America Commercial P&C Insurance $ 96 $ ( 144 ) $ ( 48 )

15 unchanged sentences

North America Commercial P&C Insurance .

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.

Net favorable development for the three months ended March 31, 2024, included $ 74 million in surety lines and $ 62 million in property and marine lines due to lower-than-expected loss development.

The favorable development was partially offset by net adverse development of $ 102 million in commercial excess and umbrella lines, driven by higher-than-expected loss development.

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.

Overseas General Insurance.

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.

Net favorable development for the three months ended March 31, 2024, was $ 89 million, which included $ 58 million in property lines driven by favorable development across all regions, primarily in accident years 2020 through 2023.

Net favorable development for the three months ended March 31, 2023 included $ 85 million in property lines, driven by lower-than-expected catastrophe loss development activity of $ 43 million in accident year 2022, and non-catastrophe loss emergence in Continental Europe and the U.K.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

2 unchanged sentences

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 Nine Months Ended September 30, 2023

Present Value of Expected Net Premiums Three Months Ended March 31, 2024

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 1,997 4,037 10,764 64 16,862

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

Issuances 65 295 697 2 1,059

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 Nine Months Ended September 30, 2023

Present Value of Expected Future Policy Benefits Three Months Ended March 31, 2024

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 2,760 10,104 15,135 492 28,491

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

Issuances 65 295 697 2 1,059

7 unchanged sentences

Chubb Limited and Subsidiaries

September 30, 2023

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

Liability for Future Policy Benefits, Life Insurance Segment March 31, 2024

(in millions of U.S.

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

dollars) Term Life Whole Life A&H Other Total

Net liability for future policy benefits $ 692 $ 6,505 $ 4,207 $ 471 $ 11,875

Deferred profit liability 254 904 174 19 1,351

Net liability for future policy benefits, per consolidated balance sheet 947 6,702 4,072 670 718 13,109

Net liability for future policy benefits, before reinsurance recoverable 946 7,409 4,381 490 13,226

Reinsurance recoverable on future policy benefits 107 45 113 1 266

1 unchanged sentence

Weighted average duration (years) 10.2 25.6 10.1 15.1 19.3

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

Present Value of Expected Net Premiums Three Months Ended March 31, 2023

(in millions of U.S.

3 unchanged sentences

Effect of changes in cash flow assumptions 17 ( 1 ) ( 786 ) 1 ( 769 )

Effect of actuarial variances from expected experience ( 31 ) 12 ( 120 ) — ( 139 )

Effect of actual variances from expected experience ( 6 ) ( 8 ) ( 89 ) ( 1 ) ( 104 )

Adjusted beginning of period balance 1,878 2,352 10,383 43 14,656

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

Issuances 36 69 288 1 394

9 unchanged sentences

Chubb Limited and Subsidiaries

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

Present Value of Expected Future Policy Benefits Three Months Ended March 31, 2023

(in millions of U.S.

3 unchanged sentences

Effect of changes in cash flow assumptions 20 ( 1 ) ( 798 ) 3 ( 776 )

Effect of actuarial variances from expected experience ( 32 ) 14 ( 126 ) — ( 144 )

Effect of actual variances from expected experience ( 3 ) ( 7 ) ( 87 ) ( 1 ) ( 98 )

Adjusted beginning of period balance 2,464 5,866 14,970 282 23,582

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

Issuances 36 69 288 1 394

Interest accrual 32 52 156 2 242

Benefits payments ( 82 ) ( 151 ) ( 469 ) ( 2 ) ( 704 )

Benefit payments ( 46 ) ( 65 ) ( 362 ) ( 3 ) ( 476 )

Other (including foreign exchange) 72 28 ( 153 ) ( 14 ) ( 67 )

2 unchanged sentences

Balance – end of period $ 2,440 $ 5,908 $ 14,436 $ 268 $ 23,052

September 30, 2022

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

Liability for Future Policy Benefits, Life Insurance Segment March 31, 2023

(in millions of U.S.

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

dollars) Term Life Whole Life A&H Other Total

Net liability for future policy benefits $ 555 $ 3,551 $ 4,369 $ 229 $ 8,704

Deferred profit liability 223 581 135 13 952

Net liability for future policy benefits, per consolidated balance sheet 740 4,004 4,335 92 735 9,906

Net liability for future policy benefits, before reinsurance recoverable 778 4,132 4,504 242 9,656

Reinsurance recoverable on future policy benefits 105 33 112 — 250

1 unchanged sentence

Weighted average duration (years) 9.4 25.3 10.7 14.5 17.7

The following table presents a reconciliation of the roll-forwards above to the Future policy benefits liability presented in the Consolidated balance sheets.

(in millions of U.S.

dollars) 2024 2023

Net liability for future policy benefits, Life Insurance segment

$ 11,875 $ 8,704

Deferred profit liability 1,351 952

Liability for future policy benefits, per consolidated balance sheet $ 14,375 $ 10,782

(1) Other business principally comprises certain Overseas General Insurance accident and health (A&H) policies and certain Chubb Life Re business.

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:

September 30 September 30

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

March 31 March 31

(in millions of U.S.

16 unchanged sentences

Discounted expected future gross premiums $ 83 $ 87

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

The following table presents the amount of revenue and interest recognized in the Consolidated statement of operations for the Life Insurance segment:

Gross Premiums or Assessments Interest Accretion

Nine Months Ended Nine Months Ended

September 30 September 30

Three Months Ended Three Months Ended

March 31 March 31

(in millions of U.S.

5 unchanged sentences

Other 20 17 3 2

Overseas General Insurance

A&H 1,175 1,075 — —

Total $ 1,470 $ 1,140 $ 86 $ 71

1 unchanged sentence

Chubb Limited and Subsidiaries

The following table presents the weighted-average interest rates:

The following table presents the weighted-average interest rates for the Life Insurance segment:

Interest Accretion Rate Current Discount Rate

September 30 September 30

March 31 March 31

2024 2023 2024 2023

4 unchanged sentences

Other 2.6 % 3.8 % 3.8 % 4.8 %

Policyholders' account balances, Separate accounts, and Unearned revenue liabilities

Policyholders' account balances

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

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

(in millions of U.S.

dollars) Universal Life Other Total

dollars) Universal Life Annuities (2)

Balance – beginning of period $ 1,876 $ 2,411 $ 2,502 $ 6,789

Consolidation of Huatai Group 602 3,412 4,014

Premiums received 72 131 131 334

3 unchanged sentences

Benefit payments (4)

( 54 ) ( 59 ) ( 3 ) ( 116 )

Interest credited 13 16 14 43

1 unchanged sentence

Balance – end of period $ 1,840 $ 2,484 $ 2,556 $ 6,880

Nine Months Ended September 30, 2022

Unearned revenue liability 680

Policyholders' account liability, per consolidated balance sheet $ 7,560

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

(2) Relates to Huatai Life.

(3) Other primarily comprises policyholder account balances related to investment linked products including endowment and investment contracts, none of which bear significant insurance risk.

(4) Includes benefit payments upon maturity as well as death benefits.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Three Months Ended March 31, 2023

(in millions of U.S.

dollars) Universal Life Other Total

dollars) Universal Life Other (2)

Balance – beginning of period $ 1,199 $ 1,374 $ 2,573

Acquisition of Cigna 10 345 355

Premiums received 50 18 68

3 unchanged sentences

Benefit payments (3)

( 4 ) ( 6 ) ( 10 )

Interest credited 8 8 16

1 unchanged sentence

Balance – end of period $ 1,208 $ 1,385 $ 2,593

Unearned revenue liability 585

Policyholders' account liability, per consolidated balance sheet $ 3,178

(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

(2) Other primarily comprises policyholder account balances related to investment linked products including endowment and investment contracts, none of which bear significant insurance risk.

(3) Includes benefit payments upon maturity as well as death benefits.

(in millions of U.S.

dollars, except for percentages) Universal Life Other Universal Life Other

dollars, except for percentages) Universal Life Annuities Other Universal Life Other

Weighted-average crediting rate 2.9 % 2.6 % 2.5 % 2.6 % 3.0 %

5 unchanged sentences

Universal Life

September 30, 2023

March 31, 2024

(in millions of U.S.

6 unchanged sentences

Total $ 563 $ 461 $ 767 $ 49 $ 1,840

September 30, 2022

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

March 31, 2023

(in millions of U.S.

6 unchanged sentences

Total $ 544 $ 345 $ 312 $ 7 $ 1,208

Other policyholders' account balances

September 30, 2023

March 31, 2024

(in millions of U.S.

5 unchanged sentences

Greater than 4.00 %

323 — — — 323

Total $ 859 $ — $ 1,624 $ 1 $ 2,484

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

September 30, 2022

Other policyholders' account balances

March 31, 2024

(in millions of U.S.

3 unchanged sentences

2.01 % – 4.00 %

378 613 — — 991

Greater than 4.00 %

Total $ 1,167 $ 613 $ 243 $ 533 $ 2,556

March 31, 2023

(in millions of U.S.

dollars) At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total

Guaranteed minimum crediting rates

$ 446 $ — $ 212 $ 295 $ 953

2.01 % – 4.00 %

384 43 — — 427

Greater than 4.00 %

Total $ 835 $ 43 $ 212 $ 295 $ 1,385

1 unchanged sentence

Chubb Limited and Subsidiaries

Separate accounts

Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb.

The assets that support variable contracts are measured at fair value and are reported as Separate account assets and corresponding liabilities are reported within Separate account liabilities on the Consolidated balance sheets.

Policy charges assessed against the policyholders for mortality, administration, and other services are included in Net premiums earned on the Consolidated statements of operations.

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

March 31 March 31

(in millions of U.S.

dollars) 2024 2023

Cash and cash equivalents $ 76 $ 116

Mutual funds 5,699 5,082

Fixed maturities 89 102

Total $ 5,864 $ 5,300

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

Three Months Ended

(in millions of U.S.

dollars) 2024 2023

Balance – beginning of period $ 5,573 $ 5,190

Premiums and deposits 264 266

Policy charges ( 43 ) ( 35 )

Surrenders and withdrawals ( 210 ) ( 111 )

Benefit payments ( 105 ) ( 99 )

Investment performance 375 110

Other (including foreign exchange) 10 ( 21 )

Balance – end of period $ 5,864 $ 5,300

Cash surrender value (1)

$ 5,655 $ 5,030

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

Unearned revenue liabilities

Unearned revenue liabilities represent policy charges for services to be provided in future periods.

The charges are reflected as deferred revenue and are generally amortized over the expected life of the contract using the same methodology, factors, and assumptions used to amortize deferred acquisition costs.

Unearned revenue liabilities pertaining to both policyholders' account balances and separate accounts are recorded in Policyholders' account balances in the Consolidated balance sheets.

The following table presents a roll-forward of unearned revenue liabilities:

Three Months Ended March 31

(in millions of U.S.

dollars) 2024

Balance – beginning of period $ 673 $ 567

Deferred revenue

( 18 ) ( 14 )

Other (including foreign exchange)

Balance – end of period $ 680 $ 585

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Market risk benefits

1 unchanged sentence

The following table presents a roll-forward of MRB:

Nine Months Ended

Three Months Ended

(in millions of U.S.

5 unchanged sentences

Effect of changes in volatilities ( 20 ) 57

Effect of changes in future expected policyholder behavior 89 40

Actual policyholder behavior different from expected behavior 30 ( 2 )

Effect of timing and all other ( 31 ) ( 16 )

4 unchanged sentences

Net amount at risk (1)

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.

$ 1,683 $ 2,296

(1) The net amount at risk is defined as the present value of future claim payments assuming policy account values and guaranteed values are fixed at the valuation date, and reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty.

No withdrawals, lapses, and mortality improvements are assumed in the projection.

GLB-related risks contain conservative mortality and annuitization assumptions.

Excluded from the table above are MRB gains (losses) of $( 134 ) million and $( 89 ) million for the three months ended March 31, 2024 and 2023, 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.

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 September 30, 2023

September 30, 2022

Valuation Technique Significant Unobservable Inputs March 31, 2024

March 31, 2023

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.

All else equal, as lapse rates increase, ultimate claim payments will decrease.

In general, the base lapse function assumes low lapse rates during the surrender charge period, followed by a "spike" lapse rate in the year immediately following the surrender charge period, and then reverting to an ultimate lapse rate, typically over a 2-year period.

This base rate is adjusted downward for policies with more valuable guarantees (policies with guaranteed values far in excess of their account values).

Partial withdrawals and the impact of older policyholders with tax-qualified contracts (due to required minimum distributions) are also reflected in our modeling.

The GLB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GLB.

All else equal, as GLB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits.

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 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.

In addition, it is also assumed that GLB annuitization rates are higher in the first year immediately following the waiting period (the first year the policies are eligible to annuitize using the GLB) in comparison to all subsequent years.

Chubb does not yet have fully credible annuitization experience for all clients.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants.

1 unchanged sentence

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

Separate accounts

Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb.

Policy charges assessed against the policyholders for mortality, administration, and other services are included in Net premiums earned on the Consolidated statements of operations.

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

September 30 December 31

(in millions of U.S.

dollars) 2023 2022

Cash and cash equivalents $ 88 $ 141

Mutual funds 5,129 4,960

Fixed maturities 89 89

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:

Nine Months Ended

(in millions of U.S.

dollars) 2023 2022

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

Acquisition of Cigna — 301

Premiums and deposits 724 1,147

Policy charges ( 103 ) ( 93 )

Surrenders and withdrawals ( 407 ) ( 304 )

Benefit payments ( 291 ) ( 289 )

Investment performance 382 ( 978 )

Other (including foreign exchange) ( 189 ) ( 453 )

Balance – end of period $ 5,306 $ 4,891

Cash surrender value (1)

$ 5,285 $ 4,771

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

For detailed information on our lapse and annuitization rate assumptions, refer to Note 11 to the Consolidated Financial Statements of our 2023 Form 10-K.

On March 7, 2024, Chubb INA Holdings LLC (Chubb INA) issued $ 1.0 billion of 5.0 percent senior notes due March 2034.

These senior unsecured notes are guaranteed on a senior basis by Chubb Limited and they rank equally with all of Chubb INA's other senior obligations.

They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt.

These senior notes are redeemable at any time at Chubb INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable comparable government bond rate plus 0.15 percent).

The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.

These notes do not have the benefit of any sinking fund.

Commitments, contingencies, and guarantees

1 unchanged sentence

Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market.

Chubb also maintains positions in convertible securities that contain embedded derivatives, and exchange-traded equity futures contracts on equity market indices to limit equity exposure in the MRB book of business.

Investment derivative instruments and derivatives designated as hedges for accounting purposes are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP);

Investment derivative instruments, futures contracts on equities, and derivatives designated as hedges for accounting purposes are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP);

convertible bonds are recorded in Fixed maturities available-for-sale (FM AFS);

9 unchanged sentences

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

March 31, 2024 December 31, 2023

Balance Sheet

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(2) Related to MRB book of business.

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.

At March 31, 2024, and December 31, 2023, net derivative liabilities of $ 104 million and $ 115 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.

2 unchanged sentences

These derivatives comprise cross-currency swaps, which are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date.

These hedges have been and are expected to be highly effective.

(i) Cross-currency swaps - fair value hedges

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 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.

The hedges are expected to be highly effective, with gains or losses on the fair value hedges offsetting the foreign currency remeasurement on the hedged euro denominated senior notes within Net realized gains (losses).

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

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

Chubb holds 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, 2024, of our euro denominated debt, by converting cash flows back into the U.S.

These hedges are carried at fair value, with changes in fair value recorded in Other comprehensive income (OCI).

The gains or losses on the fair value hedges offsetting the foreign currency remeasurement on the hedged euro denominated senior notes are reclassified from OCI into Net realized gains (losses), and an additional portion is reclassified into Interest expense, as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

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Three Months Ended

Nine Months Ended

(in millions of U.S.

(pre-tax, in millions of U.S.

dollars) 2024

4 unchanged sentences

(ii) Cross-currency swaps - net investment hedges

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

Chubb holds certain cross-currency swaps designated as net investment hedges.

The objective of these cross-currency swaps is to hedge the foreign currency exposure in the net investments of certain foreign subsidiaries by converting cash flows from U.S.

1 unchanged sentence

The hedged risk is designated as the foreign currency exposure arising between the functional currency of the foreign subsidiary and the functional currency of its parent entity.

These net investment hedges are carried at fair value, with changes in fair value recorded in Cumulative translation adjustments (CTA) within OCI, and an immaterial amount recorded to Interest expense.

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

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

These net investment hedges are carried at fair value, with changes in fair value recorded in Cumulative translation adjustments (CTA) within OCI, and a portion is reclassified to Interest expense as follows:

Three Months Ended

Nine Months Ended

(in millions of U.S.

(pre-tax, in millions of U.S.

dollars) 2024

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c) Derivative instruments not designated as hedges

Derivative instruments which are not designated as hedges are carried at fair value with changes in fair value recorded in Net realized gains (losses) or, for futures contracts on equities, Market risk benefits gains (losses) in the Consolidated statements of operations.

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

Three Months Ended Nine Months Ended

September 30 September 30

Derivative instruments which are not designated as hedges are carried at fair value with changes in fair value recorded in Net realized gains (losses) or, for futures contracts on equities, related to the MRB book of business, in Market risk benefits gains (losses) in the Consolidated statements of operations.

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

Three Months Ended

(in millions of U.S.

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Convertible securities (1)

( 3 ) — ( 2 ) ( 2 )

Total investment and embedded derivative instruments $ ( 43 ) $ ( 46 )

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Remaining contractual maturity

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions of U.S.

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Chubb Limited and Subsidiaries

At September 30, 2023, and December 31, 2022, our repurchase agreement obligations of $ 2,617 million and $ 1,419 million, respectively, were fully collateralized.

At March 31, 2024, and December 31, 2023, our repurchase agreement obligations of $ 3,022 million and $ 2,833 million, respectively, were fully collateralized.

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

The fair value of the underlying securities sold remains in Fixed maturities available for sale, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.

The fair value of the underlying securities sold remains in Fixed maturities available-for-sale or Other investments, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.

The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:

Remaining contractual maturity

September 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

March 31, 2024 December 31, 2023

Up to 30 Days 30-90 Days Total Up to 30 Days 30-90 Days Greater than

90 Days Total

(in millions of U.S.

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e) Fixed maturities

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.

At March 31, 2024, and December 31, 2023, commitments to purchase fixed income securities over the next several years were $ 1.0 billion for both periods.

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.

Private equities in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 14.0 billion at March 31, 2024.

In connection with these investments, we have commitments that may require funding of up to $ 5.9 billion over the next several years.

At December 31, 2022, these investments had a carrying value of $ 12.0 billion with commitments that may have required funding of up to $ 7.4 billion.

At December 31, 2023, these investments had a carrying value of $ 13.9 billion with commitments that could have required funding of up to $ 6.2 billion.

g) Income taxes

At September 30, 2023, $ 67 million of unrecognized tax benefits remain out standing.

At March 31, 2024, $ 73 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.

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Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

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.

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.

1 unchanged sentence

i) Lease commitments

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.

At March 31, 2024, and December 31, 2023, the right-of-use asset was $ 762 million and $ 784 million, respectively, recorded within Other assets , and the lease liability was $ 818 million and $ 832 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.

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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 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.

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 Nine Months Ended

September 30 September 30

2023 2022 2023 2022

CHF USD CHF USD CHF USD CHF USD

Total dividend distributions per common share 0.75 $ 0.86 0.78 $ 0.83 2.29 $ 2.55 2.32 $ 2.46

At March 31, 2024, our Common Shares had a par value of CHF 0.50 per share.

At our May 2023 and 2022 annual general meetings, our shareholders approved annual dividends for the following year of up to $ 3.44 per share and $ 3.32 per share, respectively, which were paid in four quarterly installments of $ 0.86 per share and $ 0.83 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, 2024 and 2023, were $ 0.86 (CHF 0.75 ) and $ 0.83 (CHF 0.77 ), respectively.

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.

Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, purchases under the Employee Stock Purchase Plan (ESPP), and share cancellations.

At the Chubb Limited Extraordinary General Meeting of Shareholders, held on November 3, 2021, shareholders approved the cancellation of 14,465,400 shares repurchased under our share repurchase program during the first six months of 2021.

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

At our May 2022 annual general meeting, held on May 19, 2022, our shareholders approved the cancellation of 13,179,100 shares purchased under our share repurchase program during the last six months of 2021.

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.

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 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

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.

During the three months ended March 31, 2024, 1,220,121 shares were repurchased and 1,983,550 net shares were issued under employee share-based compensation plans.

At March 31, 2024, 25,418,520 Common Shares remain in treasury.

Chubb Limited securities repurchase authorizations

The Board has authorized share repurchase programs as follows:

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

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

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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 Nine Months Ended

September 30 September 30

Three Months Ended April 1,2024

April 25, 2024

(in millions of U.S.

3 unchanged sentences

Repurchase authorization remaining at end of period $ 3,373 $ 1,193 $ 3,312

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 Nine Months Ended

September 30 September 30

2023 2022 2023 2022

Three Months Ended

(in millions of U.S.

dollars) As Adjusted As Adjusted

dollars) 2024 2023

Accumulated other comprehensive income (loss) (AOCI)

5 unchanged sentences

Income tax (expense) benefit 42 ( 166 )

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

Total other comprehensive income (loss) ( 635 ) 1,620

Noncontrolling interests, net of tax 13 —

3 unchanged sentences

Change in period, before tax ( 53 ) ( 151 )

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

Total other comprehensive income 648 422 476 1,394

Income tax (expense) benefit ( 20 ) 21

Total other comprehensive loss ( 73 ) ( 130 )

Noncontrolling interests, net of tax ( 33 ) —

Balance – end of period, net of tax 11 ( 205 )

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

9 unchanged sentences

Change in period, before tax 80 ( 177 )

Income tax benefit 13 7 21 42

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

Income tax (expense) benefit ( 7 ) 7

Total other comprehensive income (loss) 73 ( 170 )

Noncontrolling interests, net of tax ( 8 ) —

Balance – end of period, net of tax ( 2,864 ) ( 3,136 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Three Months Ended

(in millions of U.S.

dollars) 2024 2023

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

Fair value hedging instruments

10 unchanged sentences

Change in period, before tax ( 2 ) —

Income tax expense — ( 1 ) — ( 6 )

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

Income tax (expense) benefit 1 ( 1 )

Total other comprehensive loss ( 1 ) ( 1 )

Noncontrolling interests, net of tax — —

Balance – end of period, net of tax 296 224

Accumulated other comprehensive income (loss) $ ( 11,518 ) $ ( 12,116 ) $ ( 11,518 ) $ ( 12,116 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Accumulated other comprehensive loss $ ( 7,386 ) $ ( 8,895 )

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

Three Months Ended Nine Months Ended Consolidated Statement of Operations Location

September 30 September 30

Three Months Ended Consolidated Statement of Operations Location

(in millions of U.S.

10 unchanged sentences

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

Income tax benefit 12 7 7 7 Income tax expense

Income tax (expense) benefit 9 ( 3 ) Income tax expense

$ ( 32 ) $ 13 Net income

Total amounts reclassified from AOCI $ ( 137 ) $ ( 147 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Share-based compensation

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

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

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

Under the Chubb Deferred Stock Unit Plan, a sub-plan of the Amended 2016 LTIP, eligible participants may defer vested performance stock units and restricted stock units to the extent such awards are U.S.-allocated compensation.

Chubb generally grants service-based restricted stock and restricted stock units with a 4 -year vesting period, based on a graded vesting schedule.

The performance-based restricted stock awards granted comprise target awards and premium awards that cliff vest at the end of a 3 -year performance period based on both tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies.

Premium awards are subject to an additional vesting provision based on total shareholder return compared to our peer group.

The restricted stock is principally granted at market close price on the grant date.

On February 23, 2023, Chubb granted 785,319 service-based restricted stock awards, 315,545 service-based restricted stock units, and 407,825 performance-based stock awards to employees and officers with a grant date fair value of $ 208.60 each.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Performance shares and performance stock units granted comprise both target and premium awards that cliff vest at the end of a 3 -year performance period based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies.

Premium awards are subject to an additional vesting provision based on total shareholder return compared to the peer group.

Stock and unit awards are principally granted at market close price on the grant date.

On February 26, 2024, Chubb granted 685,665 service-based restricted stock, 290,085 service-based restricted stock units, 107,644 performance shares, and 277,883 performance stock units to employees and officers with a grant date fair value of $ 254.84 each.

Each service-based restricted stock unit and performance stock unit represents our obligation to deliver to the holder one Common Share upon vesting (or the end of the deferral period, if the unit is under the Chubb Deferred Stock Unit Plan).

Postretirement benefits

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2024 2023 2024 2023

Three Months Ended September 30 U.S.

Plans Non-U.S.

(in millions of U.S.

Service cost $ — $ 2 $ — $ 1 $ — $ —

Non-service cost (benefit):

Interest cost 35 9 21 5 1 —

Expected return on plan assets ( 56 ) ( 13 ) ( 70 ) ( 11 ) — —

Amortization of net actuarial loss — — — — ( 1 ) —

Amortization of prior service cost — — — — ( 1 ) —

Settlements 3 — — — — —

Total non-service cost (benefit) ( 18 ) ( 4 ) ( 49 ) ( 6 ) ( 1 ) —

Net periodic benefit cost (benefit) $ ( 18 ) $ ( 2 ) $ ( 49 ) $ ( 5 ) $ ( 1 ) $ —

Pension Benefit Plans Other Postretirement Benefit Plans

2023 2022 2023 2022

Nine Months Ended September 30 U.S.

Three Months Ended March 31 U.S.

Plans Non-U.S.

2 unchanged sentences

Service cost $ — $ 2 $ — $ 2 $ — $ —

$ — $ 6 $ — $ 3 $ — $ —

Non-service cost (benefit):

1 unchanged sentence

Expected return on plan assets ( 61 ) ( 13 ) ( 56 ) ( 12 ) ( 1 ) ( 1 )

Amortization of net actuarial loss — — — — ( 1 ) —

Amortization of net actuarial (gain) loss — 1 — — ( 1 ) —

Amortization of prior service cost — — — — — —

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Benefit Plans

Three Months Ended September 30 2023 2022 2023 2022

(in millions of U.S.

Service cost:

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

Administrative expenses 2 1 — —

Total service cost 2 1 — —

Non-service cost (benefit):

Losses and loss expenses ( 1 ) ( 5 ) — —

Administrative expenses ( 21 ) ( 50 ) ( 1 ) —

Total non-service cost (benefit) ( 22 ) ( 55 ) ( 1 ) —

Net periodic benefit cost (benefit) $ ( 20 ) $ ( 54 ) $ ( 1 ) $ —

Pension Benefit Plans Other Postretirement

Benefit Plans

Nine Months Ended September 30 2023 2022 2023 2022

Three Months Ended March 31 2024 2023 2024 2023

(in millions of U.S.

8 unchanged sentences

Net periodic benefit cost (benefit) $ ( 29 ) $ ( 23 ) $ ( 1 ) $ ( 1 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Other income and expense

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

2 unchanged sentences

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

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

Asset management and performance fee revenue 53 —

Asset management and performance fee expense ( 33 ) —

( 33 ) — ( 33 ) —

Federal excise and capital taxes ( 4 ) ( 5 )

1 unchanged sentence

Total $ 191 $ 296

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

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

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.

This line item includes mark-to-market gains (losses) on private equities of $ 103 million and $ 242 million for the three months ended March 31, 2024 and 2023, respectively.

In addition, this line item includes net income attributable to our investment in Huatai under the equity method of accounting comprising income of $ 14 million through March 31, 2023.

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.

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 U.S.

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.

These revenues and expenses are recognized in the period in which the services are performed and, for certain asset performance fees, to the extent it is probable that a significant reversal will not occur.

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.

Bad debt expense for uncollectible premiums is also included in Other income and expense.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Segment information

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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.

P&C underwriting income (loss) excludes the Life Insurance segment and is calculated by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned.

Effective July 1, 2023, the results of Huatai's life and asset management businesses, included within the Life Insurance segment, and the results of Huatai's P&C insurance business, included within Overseas General Insurance, are presented gross within Underwriting income (loss), Net investment income (loss), and Other income (expense) as required under consolidation accounting.

Huatai's results prior to July 1, 2023 were included net within Other (income) expense based on our ownership interest as required under equity method accounting.

Management uses Underwriting income (loss) as the basis for segment performance.

Chubb calculates Underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned.

Segment income (loss) includes Underwriting income (loss), Net investment income (loss), and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable.

2 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.

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.

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 expense, 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.

6 unchanged sentences

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.

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

These gains and losses have been reclassified from Other (income) expense.

2 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

September 30, 2023

March 31, 2024

(in millions of U.S.

20 unchanged sentences

Net loss attributable to noncontrolling interests 151 — 151

( 3 ) — ( 3 )

Net income (loss) attributable to Chubb $ ( 874 ) $ — $ 2,143

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Three Months Ended

September 30, 2022 (As Adjusted)

March 31, 2023

(in millions of U.S.

13 unchanged sentences

purchased intangibles — 2 6 18 — 4 42 — 72

Segment income (loss) $ 975 $ 205 $ 159 $ 457 $ ( 52 ) $ 252 $ ( 400 ) $ 19 $ 1,615

Net realized gains (losses) ( 437 ) ( 19 ) ( 456 )

Market risk benefits gains (losses) 69 — 69

Interest expense 150 — 150

Cigna integration expenses 23 — 23

Income tax expense 263 — 263

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

For the Nine Months Ended

September 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 $ 14,575 $ 4,404 $ 2,581 $ 9,359 $ 831 $ 4,015 $ — $ — $ 35,765

Net premiums earned 13,710 4,084 2,334 9,005 720 3,962 — — 33,815

Losses and loss expenses 8,625 2,634 2,003 4,139 319 87 133 ( 3 ) 17,937

Policy benefits — — — 338 — 2,283 — ( 56 ) 2,565

Policy acquisition costs 1,867 836 128 2,286 196 829 — — 6,142

Administrative expenses 934 247 9 899 27 553 290 — 2,959

Underwriting income (loss) 2,284 367 194 1,343 178 210 ( 423 ) 59 4,212

Net investment income 2,204 262 43 636 144 525 28 ( 276 ) 3,566

Other (income) expense 18 2 — ( 29 ) ( 1 ) ( 69 ) ( 251 ) ( 220 ) ( 550 )

Amortization expense of

purchased intangibles — 8 19 52 — 18 129 — 226

Segment income (loss) $ 4,470 $ 619 $ 218 $ 1,956 $ 323 $ 786 $ ( 273 ) $ 3 $ 8,102

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

Net realized gains (losses) ( 76 ) ( 1 ) ( 77 )

4 unchanged sentences

Net income (loss) $ ( 682 ) $ — $ 1,892

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 Nine Months Ended

September 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 $ 13,426 $ 3,998 $ 2,523 $ 8,364 $ 780 $ 2,403 $ — $ — $ 31,494

Net premiums earned 12,645 3,852 2,217 8,065 712 2,325 — — 29,816

Losses and loss expenses 7,979 2,343 1,830 3,772 565 78 275 ( 9 ) 16,833

Policy benefits — — — 282 — 1,275 — ( 116 ) 1,441

Policy acquisition costs 1,701 792 111 2,096 178 537 — — 5,415

Administrative expenses 814 213 4 811 27 346 264 — 2,479

Underwriting income (loss) 2,151 504 272 1,104 ( 58 ) 89 ( 539 ) 125 3,648

Net investment income (loss) 1,600 199 23 460 232 359 ( 4 ) ( 180 ) 2,689

Other (income) expense 12 3 1 3 1 ( 38 ) 73 ( 64 ) ( 9 )

Amortization expense of

purchased intangibles — 7 20 40 — 7 137 — 211

Segment income (loss) $ 3,739 $ 693 $ 274 $ 1,521 $ 173 $ 479 $ ( 753 ) $ 9 $ 6,135

Net realized gains (losses) ( 927 ) ( 9 ) ( 936 )

Market risk benefits gains (losses) 85 — 85

Interest expense 416 — 416

Cigna integration expenses 26 — 26

Income tax expense 907 — 907

Net income (loss) $ ( 2,944 ) $ — $ 3,935

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

Other than Unpaid losses and loss expenses, Future policy benefits, Reinsurance recoverables, DAC, VOBA, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.

Other than certain insurance related balances, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.

Earnings per share

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

Three Months Ended

(in millions of U.S.

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

dollars, except share and per share data) 2024 2023

Net income $ 2,294 $ 1,892

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

Net income attributable to noncontrolling interests 151 —

Net income attributable to Chubb $ 2,143 $ 1,892

8 unchanged sentences

Potential anti-dilutive share conversions 1,005,420 1,731,523

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

2 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements