What changed in this filing

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Item 1. Financial Statements

2024-07-26 compared with 2024-04-26 · 383 added, 163 removed, 1435 unchanged (28% of the section changed)

2 unchanged sentences

Chubb Limited and Subsidiaries

March 31 December 31

June 30 December 31

(in millions of U.S.

46 unchanged sentences

Common Shares (CHF 0.50 par value;

431,451,586 shares issued;

419,625,986 and 431,451,586 shares issued;

404,073,495 and 405,269,637 shares outstanding)

11 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

8 unchanged sentences

Losses and loss expenses 6,431 5,683 12,158 10,831

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

Policy benefits (includes remeasurement losses of $ 3 , $ 5 , $ 22 and $ 4 )

1,219 830 2,399 1,627

Policy acquisition costs 2,226 2,016 4,433 3,964

8 unchanged sentences

Net income $ 2,216 $ 1,793 $ 4,510 $ 3,685

Net income attributable to noncontrolling interests 151 —

Net income (loss) attributable to noncontrolling interests ( 14 ) — 137 —

Net income attributable to Chubb $ 2,230 $ 1,793 $ 4,373 $ 3,685

9 unchanged sentences

Comprehensive income 1,255 866 2,944 4,048

Comprehensive income attributable to noncontrolling interests 123 —

Comprehensive income (loss) attributable to noncontrolling interests ( 57 ) — 66 —

Comprehensive income attributable to Chubb $ 1,312 $ 866 $ 2,878 $ 4,048

5 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

1 unchanged sentence

Common Shares

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

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

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

Cancellation of treasury shares ( 6 ) ( 346 ) ( 6 ) ( 346 )

Balance – end of period 235 241 235 241

Common Shares in treasury

1 unchanged sentence

Common Shares repurchased ( 570 ) ( 724 ) ( 886 ) ( 1,152 )

Cancellation of treasury shares 2,527 2,869 2,527 2,869

Net shares issued under employee share-based compensation plans 23 22 278 222

2 unchanged sentences

Balance – beginning of period 15,188 6,680 15,665 7,166

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

Net shares redeemed (issued) under employee share-based

compensation plans 17 5 ( 142 ) ( 206 )

Exercise of stock options — — ( 19 ) ( 13 )

Share-based compensation expense 90 73 172 155

Par value reduction — 9,759 — 9,759

Net decrease due to acquisitions — — ( 31 ) —

4 unchanged sentences

Net income attributable to Chubb 2,230 1,793 4,373 3,685

Cancellation of treasury shares ( 2,521 ) ( 2,523 ) ( 2,521 ) ( 2,523 )

Funding of dividends declared from Additional paid-in capital 369 354 719 698

9 unchanged sentences

Net decrease due to acquisitions ( 296 ) — ( 707 ) —

Net income attributable to noncontrolling interests 151 —

Net income (loss) attributable to noncontrolling interests ( 14 ) — 137 —

Other comprehensive loss attributable to noncontrolling interests ( 43 ) — ( 71 ) —

Other ( 6 ) — ( 6 ) —

Balance – end of period $ 3,537 $ — $ 3,537 $ —

3 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended

Six Months Ended

(in millions of U.S.

18 unchanged sentences

Deferred policy acquisition costs ( 796 ) ( 546 )

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

Net sales (purchases) of investments by consolidated investment products 109 —

Net cash flows from operating activities 7,299 4,766

27 unchanged sentences

Other ( 193 ) ( 153 )

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

Net cash flows used for financing activities ( 1,184 ) ( 2,312 )

Effect of foreign currency rate changes on cash and restricted cash ( 102 ) 56

Net increase in cash and restricted cash 30 255

Net increase (decrease) in cash and restricted cash ( 53 ) 248

Cash and restricted cash – beginning of period 2,621 2,127

20 unchanged sentences

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.

At June 30, 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.

4 unchanged sentences

These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our 2023 Form 10-K.

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

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.

Chubb INA's $ 700 million of 3.35 percent senior notes due May 2024 was paid upon maturity.

c) New Accounting Pronouncements

5 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Improvements to Income Tax Disclosures

3 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

On May 31, 2024, we acquired the business of Healthy Paws Pet Insurance LLC, a managing general agent specializing in pet insurance, from Aon plc for approximately $ 300 million in cash.

We recognized goodwill of $ 256 million and intangible assets of $ 39 million from this acquisition.

Chubb has been the exclusive underwriter of Healthy Paws since 2013.

The transaction positions Chubb to expand in a niche market with substantial growth potential.

This business is assigned to the North America Commercial Insurance segment.

Huatai Insurance Group Co., Ltd.

6 unchanged sentences

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.

Our aggregate ownership interest in Huatai Group was approximately 85.5 percent as of June 30, 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 acquisition of a controlling majority interest in Huatai Group on July 1, 2023, generated $ 3,458 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 generated $ 309 million of Value of business acquired (VOBA).

Chubb financed the transaction through available cash on hand.

Direct costs related to the acquisition are immaterial, and 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 the fair value of the assets acquired and liabilities assumed on July 1, 2023.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Huatai Group assets and liabilities consolidated July 1

(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 5,113

Other assets 748

Total assets $ 20,461

Unpaid losses and loss expenses $ 831

Unearned premiums 800

Future policy benefits 2,351

Policyholders' account balances 4,014

Insurance and reinsurance balances payable 644

Accounts payable, accrued expenses, and other liabilities 682

Deferred tax liabilities 232

Repurchase agreements 1,269

Total liabilities $ 10,823

Net acquired assets, including goodwill, attributable to Chubb 4,428

Net acquired assets, attributable to noncontrolling interests 5,210

Net acquired assets, including goodwill $ 9,638

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

Three Months Ended Six Months Ended

(in millions of U.S.

7 unchanged sentences

a) Fixed maturities

March 31, 2024 Amortized

June 30, 2024 Amortized

Cost Valuation Allowance Gross

22 unchanged sentences

The following table presents fixed maturities by contractual maturity:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions of U.S.

10 unchanged sentences

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.

Fixed maturities in an unrealized loss position at June 30, 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.

3 unchanged sentences

0 – 12 Months Over 12 Months Total

March 31, 2024 Fair Value Gross

June 30, 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 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.

At June 30, 2024, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 610 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.

2 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

13 unchanged sentences

Provision for expected credit loss 1 — 2 —

Recovery of expected credit loss ( 1 ) — ( 1 ) —

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

3 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

16 unchanged sentences

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

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:

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

Three Months Ended

4 unchanged sentences

Unrealized gains (losses) recognized for securities still held at reporting date $ 7 $ 132 $ 49 $ 188 $ 26 $ 20 $ 46

Six Months Ended

(in millions of U.S.

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

Net gains (losses) recognized during the period $ 24 $ 300 $ 80 $ 404 $ 39 $ 35 $ 74

Net gains (losses) recognized from sales of securities 11 — — 11 ( 3 ) — ( 3 )

Unrealized gains (losses) recognized for securities still held at reporting date $ 13 $ 300 $ 80 $ 393 $ 42 $ 35 $ 77

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

3 unchanged sentences

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

Period of Underlying Assets June 30, 2024 December 31, 2023

(in millions of U.S.

43 unchanged sentences

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

Included in restricted assets at March

Included in restricted assets at June

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

2 unchanged sentences

The following table presents the components of restricted assets:

March 31 December 31

June 30 December 31

(in millions of U.S.

18 unchanged sentences

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.

The carrying value of these investments at June 30, 2024, and December 31, 2023, was $ 215 million and $ 153 million, respectively, and our maximum risk of loss approximates the carrying amount.

These investments are classified within Equity securities on the Consolidated balance sheets.

Fair value measurements

46 unchanged sentences

Other investments

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.

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

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

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

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

Other investments principally include fixed maturities carried at fair value with changes in fair value recorded through Net realized gains (losses) on the Consolidated statements of operations.

These fixed maturities principally relate to the Huatai investment portfolio, including those portfolios supporting certain participating policies, and are classified within Level 2.

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

8 unchanged sentences

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

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

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

Derivatives designated as hedging instruments

7 unchanged sentences

Accordingly, these are classified within Level 2.

Other derivative instruments based on unobservable inputs are classified within Level 3.

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

Chubb also maintains positions in convertible securities that contain embedded derivatives.

Convertible securities are recorded in either Fixed maturities available-for-sale (FM AFS) or Equity securities (ES) and are classified as either Level 1 of Level 2 depending on the underlying investment.

Separate account assets

6 unchanged sentences

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

March 31, 2024 Level 1 Level 2 Level 3 Total

June 30, 2024 Level 1 Level 2 Level 3 Total

(in millions of U.S.

22 unchanged sentences

Total liabilities measured at fair value $ 171 $ 101 $ 576 $ 848

(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.

(1) Excluded from the table above are other investments of $ 1,029 million, principally policy loans, measured using NAV as a practical expedient.

(2) Excluded from the table above are Private equities of $ 14,365 million, measured using NAV as a practical expedient.

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

25 unchanged sentences

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

(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.

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

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

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

4 unchanged sentences

Three Months Ended

March 31, 2024

June 30, 2024

(in millions of U.S.

15 unchanged sentences

Three Months Ended

March 31, 2023

June 30, 2023

(in millions of U.S.

4 unchanged sentences

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

Transfers into Level 3 21 3 — — —

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

7 unchanged sentences

Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ 15 $ 3 $ — $ — $ 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Six Months Ended

June 30, 2024

(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 $ 692 $ 2,622 $ 7 $ 87 $ 3

Transfers into Level 3 1 5 — — —

Transfers out of Level 3 ( 6 ) ( 3 ) — — —

Change in Net Unrealized Gains (Losses) in OCI 8 10 — — ( 1 )

Net Realized Gains (Losses) ( 4 ) ( 5 ) — ( 1 ) —

Purchases 155 469 15 19 16

Sales ( 51 ) ( 107 ) — ( 5 ) —

Settlements ( 163 ) ( 282 ) ( 2 ) — ( 6 )

Balance, end of period $ 632 $ 2,709 $ 20 $ 100 $ 12

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

Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ 3 $ 5 $ — $ — $ ( 1 )

Six Months Ended

June 30, 2023

(in millions of U.S.

dollars) Available-for-Sale Debt Securities Equity

securities Short-term investments

Corporate and asset-

backed securities Mortgage-backed securities

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

Transfers into Level 3 21 3 — — —

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

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

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

Purchases 105 323 — 11 3

Sales ( 35 ) ( 30 ) — ( 9 ) ( 2 )

Settlements ( 16 ) ( 207 ) ( 1 ) — —

Balance, end of period $ 649 $ 2,524 $ 10 $ 86 $ 3

Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date $ — $ ( 2 ) $ — $ ( 6 ) $ —

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

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

8 unchanged sentences

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

March 31, 2024 Fair Value Net Carrying

June 30, 2024 Fair Value Net Carrying

(in millions of U.S.

18 unchanged sentences

Reinsurance recoverable on ceded reinsurance

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions of U.S.

7 unchanged sentences

(1) Net of valuation allowance for uncollectible reinsurance.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

1 unchanged sentence

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

Six Months Ended

(in millions of U.S.

3 unchanged sentences

Write-offs charged against the valuation allowance ( 3 ) ( 6 )

Foreign exchange revaluation ( 1 ) 1

Valuation allowance for uncollectible reinsurance - end of period $ 381 $ 361

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 $ 3,510 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:

Three Months Ended March 31, 2024

Deferred policy acquisition costs

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

Six Months Ended June 30, 2024

(in millions of U.S.

6 unchanged sentences

Overseas General Insurance segment excluded from table 592

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

Three Months Ended March 31, 2023

Total deferred policy acquisition costs on long-duration contracts $ 4,166

Deferred policy acquisition costs on short-duration contracts 3,646

Total deferred policy acquisition costs $ 7,812

Six Months Ended June 30, 2023

(in millions of U.S.

6 unchanged sentences

Overseas General Insurance segment excluded from table 651

Total deferred acquisition costs on long-duration contracts $ 3,293

Total deferred policy acquisition costs on long-duration contracts $ 3,479

Deferred policy acquisition costs on short-duration contracts 3,187

Total deferred policy acquisition costs $ 6,666

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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, 2023 $ 6,946 $ 2,231 $ 134 $ 5,262 $ 371 $ 4,742 $ 19,686

Acquisition of Healthy Paws 256 — — — — — 256

Measurement-period adjustments — — — — — 65 65

Foreign exchange revaluation and other ( 10 ) ( 4 ) — ( 90 ) — ( 70 ) ( 174 )

Balance at June 30, 2024 (1)

$ 7,192 $ 2,227 $ 134 $ 5,172 $ 371 $ 4,737 $ 19,833

(1) Includes $ 500 million attributable to noncontrolling interests.

Unpaid losses and loss expenses

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

Three Months Ended

Six Months Ended

(in millions of U.S.

19 unchanged sentences

(1) Net of valuation allowance for uncollectible reinsurance.

(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, 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.

(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 $ 47 million and nil for the six months ended June 30, 2024 and 2023, respectively.

Net unpaid losses and loss expenses increased $ 2,544 million for the six months ended June 30, 2024, principally reflecting underlying exposure growth and the impact of a reinsurance commutation in connection with a large structured transaction during the first quarter, partially offset by the impact of favorable prior period development.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

5 unchanged sentences

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

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

(in millions of U.S.

dollars) Long-tail Short-tail Total

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

North America Commercial P&C Insurance $ ( 142 ) $ ( 2 ) $ ( 144 ) $ ( 46 ) $ ( 146 ) $ ( 192 )

15 unchanged sentences

North America Commercial P&C Insurance .

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.

Net favorable development for the three and six months ended June 30, 2024, included $ 288 million and $ 338 million, respectively, from workers' compensation due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents.

The favorable development was partially offset by net adverse development of $ 117 million and $ 167 million, respectively, in commercial auto liability mainly due to higher-than-expected loss development and severity trend.

Development for the six months ended June 30, 2024, included $ 144 million of favorable development in surety, property and marine lines, partially offset by net adverse development of $ 97 million in commercial excess and umbrella lines.

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

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

Overseas General Insurance.

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.

Net favorable development for the three months ended June 30, 2024 included favorable claim development, mainly in marine and property lines.

Net favorable development for the six months ended June 30, 2024 included favorable development of $ 85 million in property and $ 73 million in marine.

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

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

Net adverse development for the three and six months ended June 30, 2024 and 2023 was driven primarily by molestation-related claims development.

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 Three Months Ended March 31, 2024

Present Value of Expected Net Premiums Six Months Ended June 30, 2024

(in millions of U.S.

14 unchanged sentences

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

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

Present Value of Expected Future Policy Benefits Six Months Ended June 30, 2024

(in millions of U.S.

14 unchanged sentences

Chubb Limited and Subsidiaries

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

Liability for Future Policy Benefits, Life Insurance Segment June 30, 2024

(in millions of U.S.

6 unchanged sentences

Weighted average duration (years) 10.2 25.0 10.0 16.3 19.1

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

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

(in millions of U.S.

16 unchanged sentences

Chubb Limited and Subsidiaries

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

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

(in millions of U.S.

12 unchanged sentences

Balance – end of period $ 2,538 $ 6,364 $ 14,038 $ 257 $ 23,197

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

Liability for Future Policy Benefits, Life Insurance Segment June 30, 2023

(in millions of U.S.

10 unchanged sentences

Net liability for future policy benefits, Life Insurance segment $ 11,870 $ 8,845

$ 11,875 $ 8,704

Deferred profit liability 1,452 1,044

4 unchanged sentences

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

June 30 June 30

(in millions of U.S.

18 unchanged sentences

Gross Premiums or Assessments Interest Accretion

Three Months Ended Three Months Ended

March 31 March 31

Six Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

10 unchanged sentences

Interest Accretion Rate Current Discount Rate

March 31 March 31

June 30 June 30

2024 2023 2024 2023

7 unchanged sentences

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

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

(in millions of U.S.

14 unchanged sentences

(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.

(3) 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.

1 unchanged sentence

Chubb Limited and Subsidiaries

Three Months Ended March 31, 2023

Six Months Ended June 30, 2023

(in millions of U.S.

13 unchanged sentences

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

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

(2) 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.

8 unchanged sentences

Universal Life

March 31, 2024

June 30, 2024

(in millions of U.S.

8 unchanged sentences

Chubb Limited and Subsidiaries

March 31, 2023

June 30, 2023

(in millions of U.S.

6 unchanged sentences

Total $ 541 $ 328 $ 342 $ 8 $ 1,219

March 31, 2024

June 30, 2024

(in millions of U.S.

7 unchanged sentences

Other policyholders' account balances

March 31, 2024

June 30, 2024

(in millions of U.S.

6 unchanged sentences

Total $ 955 $ 618 $ 227 $ 513 $ 2,313

March 31, 2023

June 30, 2023

(in millions of U.S.

13 unchanged sentences

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

March 31 March 31

June 30 June 30

(in millions of U.S.

5 unchanged sentences

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

Three Months Ended

Six Months Ended

(in millions of U.S.

16 unchanged sentences

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

Three Months Ended March 31

Six Months Ended

(in millions of U.S.

2 unchanged sentences

Deferred revenue 69 63

( 18 ) ( 14 )

Amortization ( 36 ) ( 29 )

Other (including foreign exchange) ( 31 ) 7

5 unchanged sentences

The following table presents a roll-forward of MRB:

Three Months Ended

Six Months Ended

(in millions of U.S.

16 unchanged sentences

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.

Excluded from the table above are MRB gains (losses) of $( 191 ) million and $( 192 ) million for the six months ended June 30, 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.

1 unchanged sentence

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

Valuation Technique Significant Unobservable Inputs March 31, 2024

March 31, 2023

Valuation Technique Significant Unobservable Inputs June 30, 2024

June 30, 2023

Ranges Weighted Average (1)

17 unchanged sentences

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.

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

2 unchanged sentences

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 market risk benefit (MRB) book of business.

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);

and convertible equity securities are recorded in Equity securities (ES) in the Consolidated balance sheets.

Derivative instruments are principally recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP) in the Consolidated balance sheets.

Convertible securities are recorded in either Fixed maturities available-for-sale (FM AFS) or Equity securities (ES), depending on the underlying investment.

These are the most numerous and frequent derivative transactions.

4 unchanged sentences

We also consider economic hedging for planned cross border transactions.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Balance Sheet

20 unchanged sentences

(2) Related to MRB book of business.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

At June 30, 2024, and December 31, 2023, net derivative liabilities of $ 103 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.

5 unchanged sentences

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.

The objective of these cross-currency swaps is to hedge the foreign currency risk on € 1.5 billion, or approximately $ 1.6 billion at June 30, 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)

Chubb Limited and Subsidiaries

Three Months Ended

Six Months Ended

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

12 unchanged sentences

Three Months Ended

Six Months Ended

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

8 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

58 unchanged sentences

Remaining contractual maturity

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions of U.S.

10 unchanged sentences

Chubb Limited and Subsidiaries

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

At June 30, 2024, and December 31, 2023, our repurchase agreement obligations of $ 3,149 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.

2 unchanged sentences

Remaining contractual maturity

March 31, 2024 December 31, 2023

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

June 30, 2024 December 31, 2023

Up to 30 Days 30-90 Days Greater than

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

90 Days Total

16 unchanged sentences

e) Fixed maturities

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.

At June 30, 2024, and December 31, 2023, commitments to purchase fixed income securities over the next several years were $ 1.2 billion and $ 1.0 billion, respectively.

f) Private equities

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.

Private equities in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 14.1 billion at June 30, 2024.

In connection with these investments, we have commitments that may require funding of up to $ 6.8 billion over the next several years.

1 unchanged sentence

g) Income taxes

At March 31, 2024, $ 73 million of unrecognized tax benefits remain out standing.

At June 30, 2024, $ 72 million of unrecognized tax benefits remain out standing.

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

10 unchanged sentences

i) Lease commitments

At 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.

At June 30, 2024, and December 31, 2023, the right-of-use asset was $ 743 million and $ 784 million, respectively, recorded within Other assets , and the lease liability was $ 801 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.

4 unchanged sentences

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

At March 31, 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.

At June 30, 2024, our Common Shares had a par value of CHF 0.50 per share.

At our May 2024 annual general meeting, our shareholders approved an annual dividend for the following year of up to $ 3.64 per share, expected to be paid in four quarterly installments of $ 0.91 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 2025 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

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 after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

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

dollars (USD):

Three Months Ended Six Months Ended

June 30 June 30

2024 2023 2024 2023

CHF USD CHF USD CHF USD CHF USD

Total dividend distributions per common share 0.82 $ 0.91 0.77 $ 0.86 1.57 $ 1.77 1.54 $ 1.69

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

2 unchanged sentences

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

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.

At our May 2024 annual general meeting, held on May 16, 2024, our shareholders approved the cancellation of 11,825,600 shares purchased under our share repurchase programs during 2023.

The capital reduction was subject to publication requirements and became effective in accordance with Swiss law on May 21, 2024.

During the six months ended June 30, 2024, 3,474,357 shares were repurchased, 11,825,600 shares were canceled, and 2,278,215 net shares were issued under employee share-based compensation plans.

At June 30, 2024, 15,552,491 Common Shares remain in treasury.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Chubb Limited securities repurchase authorizations

3 unchanged sentences

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

Three Months Ended April 1,2024

April 25, 2024

Three Months Ended Six Months Ended July 1, 2024

July 25, 2024

June 30 June 30

(in millions of U.S.

3 unchanged sentences

Repurchase authorization remaining at end of period $ 2,808 $ — $ 2,808 $ — $ 2,764

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

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

14 unchanged sentences

Income tax (expense) benefit ( 2 ) ( 7 ) ( 22 ) 14

Total other comprehensive loss ( 73 ) ( 130 )

Total other comprehensive income (loss) 51 ( 42 ) ( 22 ) ( 172 )

Noncontrolling interests, net of tax ( 4 ) — ( 37 ) —

2 unchanged sentences

Balance – beginning of period, net of tax ( 17 ) ( 27 ) ( 22 ) ( 24 )

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

Total other comprehensive income (loss) 5 ( 3 )

Change in period, before tax 5 11 10 8

Income tax expense ( 1 ) — ( 1 ) —

Total other comprehensive income 4 11 9 8

Noncontrolling interests, net of tax — — — —

Balance – end of period, net of tax ( 13 ) ( 16 ) ( 13 ) ( 16 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

dollars) 2024 2023 2024 2023

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

Cumulative foreign currency translation adjustment

3 unchanged sentences

Change in period, before tax ( 530 ) 215 ( 450 ) 38

Income tax (expense) benefit ( 7 ) 7

Income tax benefit 19 1 12 8

Total other comprehensive income (loss) ( 511 ) 216 ( 438 ) 46

1 unchanged sentence

Balance – end of period, net of tax ( 3,342 ) ( 2,920 ) ( 3,342 ) ( 2,920 )

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 1 ( 2 ) ( 1 ) ( 2 )

Income tax (expense) benefit 1 ( 1 )

Total other comprehensive loss ( 1 ) ( 1 )

Income tax benefit — 1 1 —

Total other comprehensive income (loss) 1 ( 1 ) — ( 2 )

Noncontrolling interests, net of tax — — — —

1 unchanged sentence

Accumulated other comprehensive loss $ ( 8,304 ) $ ( 9,822 ) $ ( 8,304 ) $ ( 9,822 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

Three Months Ended Consolidated Statement of Operations Location

Three Months Ended Six Months Ended Consolidated Statement of Operations Location

June 30 June 30

(in millions of U.S.

13 unchanged sentences

Total amounts reclassified from AOCI $ 7 $ ( 82 ) $ ( 130 ) $ ( 229 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Share-based compensation

12 unchanged sentences

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).

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Postretirement benefits

3 unchanged sentences

2024 2023 2024 2023

Three Months Ended March 31 U.S.

Three Months Ended June 30 U.S.

Plans Non-U.S.

10 unchanged sentences

Net periodic benefit cost (benefit) $ ( 28 ) $ — $ ( 22 ) $ ( 2 ) $ ( 1 ) $ —

Pension Benefit Plans Other Postretirement Benefit Plans

2024 2023 2024 2023

Six Months Ended June 30 U.S.

Plans Non-U.S.

(in millions of U.S.

Service cost:

$ — $ 5 $ — $ 4 $ — $ —

Non-service cost (benefit):

Interest cost 67 18 68 18 1 1

Expected return on plan assets ( 122 ) ( 25 ) ( 112 ) ( 25 ) ( 2 ) ( 2 )

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

Amortization of prior service cost — — — — — —

Settlements — — — — — —

Total non-service cost (benefit) ( 56 ) ( 6 ) ( 44 ) ( 7 ) ( 2 ) ( 1 )

Net periodic benefit cost (benefit) $ ( 56 ) $ ( 1 ) $ ( 44 ) $ ( 3 ) $ ( 2 ) $ ( 1 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

3 unchanged sentences

Benefit Plans

Three Months Ended March 31 2024 2023 2024 2023

Three Months Ended June 30 2024 2023 2024 2023

(in millions of U.S.

8 unchanged sentences

Net periodic benefit cost (benefit) $ ( 28 ) $ ( 24 ) $ ( 1 ) $ —

Pension Benefit Plans Other Postretirement

Benefit Plans

Six Months Ended June 30 2024 2023 2024 2023

(in millions of U.S.

Service cost:

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

Administrative expenses 5 4 — —

Total service cost 5 4 — —

Non-service cost (benefit):

Losses and loss expenses ( 6 ) ( 5 ) — —

Administrative expenses ( 56 ) ( 46 ) ( 2 ) ( 1 )

Total non-service cost (benefit) ( 62 ) ( 51 ) ( 2 ) ( 1 )

Net periodic benefit cost (benefit) $ ( 57 ) $ ( 47 ) $ ( 2 ) $ ( 1 )

Other income and expense

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

2 unchanged sentences

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

11 ( 12 ) 21 ( 37 )

Asset management and performance fee revenue 57 — 110 —

3 unchanged sentences

Total $ 110 $ 100 $ 301 $ 396

(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 $ 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.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

percent, and partially-owned insurance companies.

This line item includes mark-to-market gains (losses) on private equities of $ 4 million and $ 107 million for the three and six months ended June 30, 2024, respectively, and $( 3 ) million and $ 239 million, respectively, for the prior year periods.

In addition, this line item includes net income attributable to our investment in Huatai under the equity method of accounting comprising income of $ 22 million and $ 36 million for the three and six months ended June 30, 2023, respectively.

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

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

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 treatment under U.S.

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

3 unchanged sentences

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

20 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

1 unchanged sentence

We view gains and losses from fair value changes in both separate account assets and liabilities as part of the results of our underwriting operations, and therefore these gains and losses are reclassified to Policy benefits.

Policy benefits also include the impact of realized gains and losses on investment portfolios supporting certain participating policies.

These realized gains and losses have been reclassified from net realized gains (losses) to policy benefits.

This presentation better reflects the economics of the participating policies by connecting the investment performance that is shared with policyholders to the liability.

• Net investment income includes investment income reclassified from Other (income) expense related to partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of three percent.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following tables present the Statement of Operations by segment:

For the Three Months Ended

March 31, 2024

June 30, 2024

(in millions of U.S.

21 unchanged sentences

Net income (loss) attributable to Chubb $ ( 943 ) $ — $ 2,230

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Three Months Ended

March 31, 2023

June 30, 2023

(in millions of U.S.

20 unchanged sentences

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

For the Six Months Ended

June 30, 2024

(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 $ 10,190 $ 3,232 $ 1,007 $ 7,169 $ 770 $ 3,213 $ — $ — $ 25,581

Net premiums earned 9,780 2,983 754 6,545 634 3,179 — — 23,875

Losses and loss expenses 6,249 1,775 592 3,097 292 54 103 ( 4 ) 12,158

Policy benefits — — — 192 — 2,101 — 106 2,399

Policy acquisition costs 1,348 599 66 1,665 161 594 — — 4,433

Administrative expenses 655 174 5 679 20 425 206 — 2,164

Underwriting income (loss) 1,528 435 91 912 161 5 ( 309 ) ( 102 ) 2,721

Net investment income 1,689 210 42 550 115 488 ( 58 ) ( 177 ) 2,859

Other (income) expense 22 ( 1 ) — 9 — ( 72 ) ( 61 ) ( 198 ) ( 301 )

Amortization expense of

purchased intangibles — 4 13 40 — 21 82 — 160

Segment income (loss) $ 3,195 $ 642 $ 120 $ 1,413 $ 276 $ 544 $ ( 388 ) $ ( 81 ) $ 5,721

Net realized gains (losses) ( 78 ) 81 3

Market risk benefits gains (losses) ( 8 ) — ( 8 )

Interest expense 360 — 360

Cigna integration expenses 14 — 14

Income tax expense 832 — 832

Net income (loss) $ ( 1,680 ) $ — $ 4,510

Net income attributable to noncontrolling interests 137 — 137

Net income (loss) attributable to Chubb $ ( 1,817 ) $ — $ 4,373

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Six Months Ended

June 30, 2023

(in millions of U.S.

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

Reinsurance Life Insurance Corporate Segment Measure Reclass Chubb Consolidated

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

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

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

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

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

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

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

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

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

Amortization expense of

purchased intangibles — 5 13 33 — 6 85 — 142

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

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

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

Interest expense 325 — 325

Cigna integration expenses 37 — 37

Income tax expense 776 — 776

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

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

1 unchanged sentence

Earnings per share

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

1 unchanged sentence

Net income $ 2,216 $ 1,793 $ 4,510 $ 3,685

Net income attributable to noncontrolling interests 151 —

Net income (loss) attributable to noncontrolling interests ( 14 ) — 137 —

Net income attributable to Chubb $ 2,230 $ 1,793 $ 4,373 $ 3,685

8 unchanged sentences

Potential anti-dilutive share conversions 1,348,531 3,143,311 939,842 2,190,304

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