What changed in this filing

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Item 1. Financial Statements

2024-10-30 compared with 2024-07-26 · 244 added, 201 removed, 1617 unchanged (22% of the section changed)

2 unchanged sentences

Chubb Limited and Subsidiaries

June 30 December 31

September 30 December 31

(in millions of U.S.

60 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

8 unchanged sentences

Losses and loss expenses 7,383 7,106 19,541 17,937

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

Policy benefits (includes remeasurement gains of $ 26 , $ 25 , $ 4 and $ 21 )

1,099 938 3,498 2,565

4 unchanged sentences

Amortization of purchased intangibles 81 84 241 226

Cigna integration expenses 7 15 14 37

Integration expenses 7 14 21 51

Total expenses 11,855 11,400 33,242 29,829

11 unchanged sentences

Other comprehensive income (loss), before income tax 3,205 ( 1,772 ) 1,601 ( 1,305 )

Income tax (expense) benefit related to OCI items 29 28 38 ( 104 )

Income tax expense related to OCI items ( 150 ) — ( 112 ) ( 104 )

Other comprehensive income (loss) 3,055 ( 1,772 ) 1,489 ( 1,409 )

8 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

35 unchanged sentences

Balance – beginning of period $ 3,537 $ — $ 4,184 $ —

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

Net increase (decrease) due to consolidation, deconsolidation,

and other transactions 639 5,210 ( 68 ) 5,210

Net income (loss) attributable to noncontrolling interests 166 ( 3 ) 303 ( 3 )

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

Other comprehensive income (loss) attributable to

noncontrolling interests 21 ( 76 ) ( 50 ) ( 76 )

Other — — ( 6 ) —

4 unchanged sentences

Chubb Limited and Subsidiaries

Six Months Ended

Nine Months Ended

(in millions of U.S.

19 unchanged sentences

Net sales (purchases) of investments by consolidated investment products ( 124 ) —

Other 170 796

Net cash flows from operating activities 11,617 9,446

11 unchanged sentences

Private equity distributions 1,044 938

Acquisition of subsidiaries ( 538 ) ( 252 )

Acquisition of subsidiaries (net of cash acquired) ( 538 ) 216

Other ( 978 ) ( 553 )

15 unchanged sentences

Effect of foreign currency rate changes on cash and restricted cash ( 49 ) ( 36 )

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

Net increase in cash and restricted cash 57 651

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 June 30, 2024, and December 31, 2023, our aggregate ownership interest in Huatai Group was approximately 85.5 percent and 76.5 percent, respectively.

At September 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.

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

b) New Accounting Pronouncements

Accounting guidance not yet adopted

4 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.

10 unchanged sentences

Refer to Note 2 to the Consolidated Financial Statements in our 2023 Form 10-K for additional information.

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 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.

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 paid prior to 2024, and $ 236 million of which was paid in 2024.

Our aggregate ownership interest in Huatai Group was approximately 85.5 percent as of September 30, 2024.

In the fourth quarter of 2024, we entered into an agreement to purchase approximately 1.0 percent of incremental ownership interests.

Chubb has total outstanding agreements for approximately 1.6 percent of incremental ownership interests, pending completion of certain closing conditions.

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.

4 unchanged sentences

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

The following table summarizes the fair value of the assets acquired and liabilities assumed on July 1, 2023.

Huatai Group assets and liabilities consolidated July 1

22 unchanged sentences

Net acquired assets, including goodwill $ 9,638

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

(in millions of U.S.

Total revenues $ 389

Net loss attributable to Chubb

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 Six Months Ended

Three Months Ended Nine Months Ended

(in millions of U.S.

7 unchanged sentences

a) Fixed maturities

June 30, 2024 Amortized

September 30, 2024 Amortized

Cost Valuation Allowance Gross

22 unchanged sentences

The following table presents fixed maturities by contractual maturity:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(in millions of U.S.

9 unchanged sentences

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

b) Gross unrealized loss

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

b) Gross unrealized loss

Fixed maturities in an unrealized loss position at September 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.

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

June 30, 2024 Fair Value Gross

September 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 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.

At September 30, 2024, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 157 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 Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

19 unchanged sentences

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

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

13 unchanged sentences

Other derivative instruments ( 2 ) ( 7 ) ( 7 ) ( 6 )

Other 1 ( 6 ) ( 7 ) ( 13 )

( 1 ) 92 ( 8 ) 79

Net realized gains (losses) (pre-tax) $ 198 $ ( 103 ) $ 201 $ ( 484 )

(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 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:

1 unchanged sentence

(in millions of U.S.

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

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

Net gains (losses) recognized during the period $ 123 $ 152 $ ( 41 ) $ 234 $ ( 100 ) $ ( 1 ) $ 40 $ ( 61 )

1 unchanged sentence

Unrealized gains (losses) recognized for securities still held at reporting date $ 129 $ 150 $ ( 41 ) $ 238 $ ( 55 ) $ ( 1 ) $ 40 $ ( 16 )

Six Months Ended

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Nine Months Ended

(in millions of U.S.

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

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

Net gains (losses) recognized during the period $ 147 $ 452 $ 39 $ 638 $ ( 61 ) $ ( 1 ) $ 75 $ 13

1 unchanged sentence

Unrealized gains (losses) recognized for securities still held at reporting date $ 142 $ 450 $ 39 $ 631 $ ( 13 ) $ ( 1 ) $ 75 $ 61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

d) Private equities

1 unchanged sentence

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 June 30, 2024 December 31, 2023

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

(in millions of U.S.

28 unchanged sentences

Vintage funds where the initial fund term has expired

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

13 unchanged sentences

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

Included in restricted assets at June

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

30, 2024, and December 31, 2023, are investments, primarily fixed maturities, totaling $ 18,370 million and $ 18,242 million, respectively, and cash of $ 168 million and $ 172 million, respectively.

Included in restricted assets at September 30, 2024, and December 31, 2023, are investments, primarily fixed maturities, totaling $ 19,536 million and $ 18,242 million, respectively, and cash of $ 153 million and $ 172 million, respectively.

The following table presents the components of restricted assets:

June 30 December 31

September 30 December 31

(in millions of U.S.

1 unchanged sentence

Trust funds $ 9,137 $ 8,482

Assets pledged under repurchase agreements 3,273 2,924

Deposits with U.S.

1 unchanged sentence

Deposits with non-U.S.

regulatory authorities 4,160 3,584

Assets pledged under repurchase agreements 3,289 2,924

Other pledged assets 203 880

regulatory authorities and other 4,714 4,464

Total $ 19,689 $ 18,414

1 unchanged sentence

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.

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

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

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

The carrying value of these investments at September 30, 2024, and December 31, 2023, was $ 110 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.

2 unchanged sentences

Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance.

The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs.

The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs.

The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.

8 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

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.

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

We do not adjust prices obtained from pricing services.

27 unchanged sentences

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Other investments

8 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

5 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.

Other derivative instruments

5 unchanged sentences

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.

Convertible securities are recorded in either Fixed maturities available-for-sale (FM AFS) or Equity securities (ES) and are classified as either Level 1 or 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

June 30, 2024 Level 1 Level 2 Level 3 Total

September 30, 2024 Level 1 Level 2 Level 3 Total

(in millions of U.S.

13 unchanged sentences

Derivatives designated as hedging instruments — 150 — 150

Other derivative instruments 1 — — 1

Separate account assets 5,919 77 — 5,996

43 unchanged sentences

Three Months Ended

June 30, 2024

September 30, 2024

(in millions of U.S.

4 unchanged sentences

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

Transfers into Level 3 — 4 — — —

Transfers out of Level 3 ( 1 ) — ( 14 ) — —

8 unchanged sentences

Three Months Ended

June 30, 2023

September 30, 2023

(in millions of U.S.

4 unchanged sentences

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

Transfers into Level 3 21 3 — — —

Transfers out of Level 3 ( 22 ) ( 10 ) — — —

9 unchanged sentences

Chubb Limited and Subsidiaries

Six Months Ended

June 30, 2024

Nine Months Ended

September 30, 2024

(in millions of U.S.

14 unchanged sentences

Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ 14 $ 17 $ — $ — $ ( 2 )

Six Months Ended

June 30, 2023

Nine Months Ended

September 30, 2023

(in millions of U.S.

24 unchanged sentences

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

June 30, 2024 Fair Value Net Carrying

September 30, 2024 Fair Value Net Carrying

(in millions of U.S.

18 unchanged sentences

Reinsurance recoverable on ceded reinsurance

June 30, 2024 December 31, 2023

September 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 first 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:

Six Months Ended

Nine Months Ended

(in millions of U.S.

7 unchanged sentences

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

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

Nine Months Ended September 30, 2024

(in millions of U.S.

9 unchanged sentences

Total deferred policy acquisition costs $ 8,249

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

(in millions of U.S.

17 unchanged sentences

Measurement-period adjustments — — — — — 65 65

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

Balance at June 30, 2024 (1)

Foreign exchange revaluation ( 2 ) ( 1 ) — ( 43 ) — 29 ( 17 )

Balance at September 30, 2024 (1)

$ 7,200 $ 2,230 $ 134 $ 5,219 $ 371 $ 4,836 $ 19,990

2 unchanged sentences

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

Six Months Ended

Nine Months Ended

(in millions of U.S.

1 unchanged sentence

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

Reinsurance recoverable on unpaid losses – beginning of period (1)

Reinsurance recoverable on unpaid losses and loss expenses – beginning of period (1)

( 17,884 ) ( 17,086 )

9 unchanged sentences

Total 15,079 15,011

Consolidation of Huatai Group — 405

Foreign currency revaluation and other ( 5 ) ( 95 )

Net unpaid losses and loss expenses – end of period 66,695 61,897

Reinsurance recoverable on unpaid losses (1)

Reinsurance recoverable on unpaid losses and loss expenses (1)

17,631 17,808

1 unchanged sentence

(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 $ 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.

(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 $ 118 million and $ 71 million for the nine months ended September 30, 2024 and 2023, respectively.

Net unpaid losses and loss expenses increased $ 4,457 million for the nine months ended September 30, 2024, principally reflecting underlying exposure growth, net catastrophe losses, 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.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

5 unchanged sentences

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

Three Months Ended June 30 Six Months Ended June 30

Three Months Ended September 30 Nine Months Ended September 30

(in millions of U.S.

17 unchanged sentences

North America Commercial P&C Insurance .

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

Net favorable development for the three and nine months ended September 30, 2024, included $ 164 million and $ 310 million, respectively, from short-tail lines, primarily property and marine, driven by lower-than-expected loss development in the most recent accident years.

The nine months ended September 30, 2024, also included favorable development from surety lines, due to lower-than-expected loss development.

Long-tail lines experienced adverse development of $ 125 million and $ 79 million for the three and nine months ended September 30, 2024, respectively, which was the net of adverse development in casualty lines, predominantly commercial excess and umbrella and commercial auto liability, due to higher-than-expected loss development, partially offset by favorable development in workers' compensation due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents.

Net favorable development for the three and nine months ended September 30, 2023, included $ 191 million and $ 279 million, respectively, from short-tail lines, primarily property and marine lines, mainly due to net lower-than-expected loss development impacting the most recent accident years.

Development for the nine months ended September 30, 2023, also included favorable development in surety lines, due to lower-than-expected loss development.

Net adverse development of $ 107 million for the three months ended September 30, 2023, from long-tail lines included adverse development in casualty lines, predominantly commercial excess and umbrella lines, driven by higher-than-expected loss development, principally related to automobile exposures, partially offset by favorable development in workers' compensation due to lower-than-expected loss experience.

Long-tail lines experienced net favorable development of $ 23 million for the nine months ended September 30, 2023, driven by workers’ compensation lines due to lower-than-expected loss development and our annual assessment of multi-claimant events, including industrial accidents, partially offset by adverse development in commercial excess and umbrella lines and commercial auto liability, both driven by higher-than-expected loss experience.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

North America Personal P&C Insurance .

Net favorable development for the three and nine months ended September 30, 2024 and 2023, was predominantly in homeowners, mainly due to lower-than-expected loss experience in the most recent accident years.

Overseas General Insurance.

Net favorable development for the three months ended September 30, 2024, included $ 61 million from long-tail lines, primarily financial lines due to favorable loss emergence in accident years 2019 and 2020.

Net favorable development for the nine months ended September 30, 2024, included $ 184 million from short-tail lines, primarily property and marine lines.

Net favorable development for the three and nine months ended September 30, 2023, included $ 52 million from long-tail lines, primarily financial lines due to favorable loss emergence in accident years 2019 and prior, partially offset by net adverse development in political risks.

Net favorable development for the nine months ended September 30, 2023, included $ 201 million from short-tail lines, primarily property and marine, and A&H lines.

Net adverse development for the three months ended September 30, 2024 and 2023, included adverse development resulting from our annual review of environmental liabilities.

Net adverse development for the nine months ended September 30, 2024 and 2023, also included adverse development for molestation-related claims development.

Future policy benefits

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

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Present Value of Expected Future Policy Benefits Nine Months Ended September 30, 2024

(in millions of U.S.

12 unchanged sentences

Balance – end of period $ 2,309 $ 11,909 $ 16,219 $ 619 $ 31,056

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

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

(in millions of U.S.

6 unchanged sentences

Weighted average duration (years) 10.2 27.8 9.8 17.6 21.1

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 1,888 2,478 10,275 44 14,685

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

Issuances 90 223 1,026 5 1,344

7 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

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

(in millions of U.S.

5 unchanged sentences

Adjusted beginning of period balance 2,467 6,004 14,838 282 23,591

Consolidation of Huatai Group 17 3,659 163 233 4,072

Issuances 90 223 1,026 5 1,344

5 unchanged sentences

Balance – end of period $ 2,586 $ 9,606 $ 13,625 $ 660 $ 26,477

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

(in millions of U.S.

16 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:

June 30 June 30

September 30 September 30

(in millions of U.S.

16 unchanged sentences

Discounted expected future gross premiums $ 177 $ 92

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

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

Gross Premiums or Assessments Interest Accretion

Six Months Ended Six Months Ended

June 30 June 30

Nine Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

10 unchanged sentences

Interest Accretion Rate Current Discount Rate

June 30 June 30

September 30 September 30

2024 2023 2024 2023

7 unchanged sentences

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

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

(in millions of U.S.

18 unchanged sentences

Chubb Limited and Subsidiaries

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

(in millions of U.S.

dollars) Universal Life Other (2)

dollars) Universal Life Annuities (2)

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

Consolidation of Huatai Group 602 2,325 1,087 4,014

Premiums received 174 79 165 418

10 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) Relates to Huatai Life.

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

1 unchanged sentence

(in millions of U.S.

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

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

Weighted-average crediting rate 2.7 % 1.6 % 2.7 % 3.1 % 2.7 % 1.2 %

5 unchanged sentences

Universal Life

June 30, 2024

September 30, 2024

(in millions of U.S.

8 unchanged sentences

Chubb Limited and Subsidiaries

June 30, 2023

September 30, 2023

(in millions of U.S.

6 unchanged sentences

Total $ 522 $ 330 $ 589 $ 344 $ 1,785

June 30, 2024

September 30, 2024

(in millions of U.S.

6 unchanged sentences

Total $ 916 $ — $ 1,645 $ 47 $ 2,608

Other policyholders' account balances

June 30, 2024

September 30, 2023

(in millions of U.S.

6 unchanged sentences

Total $ 797 $ — $ 1,543 $ — $ 2,340

June 30, 2023

Other policyholders' account balances

September 30, 2024

(in millions of U.S.

8 unchanged sentences

Chubb Limited and Subsidiaries

September 30, 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

$ 738 $ — $ 230 $ 545 $ 1,513

2.01 % – 4.00 %

373 531 27 — 931

Greater than 4.00 %

Total $ 1,116 $ 531 $ 257 $ 545 $ 2,449

Separate accounts

3 unchanged sentences

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

June 30 June 30

September 30 September 30

(in millions of U.S.

5 unchanged sentences

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

Six Months Ended

Nine Months Ended

(in millions of U.S.

10 unchanged sentences

$ 5,790 $ 5,285

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

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

Unearned revenue liabilities

1 unchanged sentence

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.

Unearned revenue liabilities pertaining to both policyholders' account

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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:

Six Months Ended

Nine Months Ended

(in millions of U.S.

10 unchanged sentences

The following table presents a roll-forward of MRB:

Six Months Ended

Nine Months Ended

(in millions of U.S.

6 unchanged sentences

Actual policyholder behavior different from expected behavior 55 16

Effect of changes in future expected policyholder behavior 87 89

Effect of timing and all other ( 34 ) 3

8 unchanged sentences

GLB-related risks contain conservative mortality and annuitization assumptions.

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.

Excluded from the table above are MRB losses of $ 258 million and $ 181 million for the nine months ended September 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.

In the third quarter of 2024, we completed a review of policyholder behavior related to annuitizations, partial withdrawals, lapses, and mortality for our variable annuity reinsurance business.

These refinements resulted in a net increase of approximately $ 87 million to the MRB fair value, recognized as a Market risk benefits loss.

• We refreshed our partial withdrawal and annuitization assumptions to include an additional year of experience.

The annuitization updates included treaty-based and age-based behavior.

• We updated the lapse assumptions to include an additional year of experience and refined the lapse rates for policies with guaranteed values far in excess of their account values.

• We updated the mortality assumptions to include an additional year of experience.

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

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

Valuation Technique Significant Unobservable Inputs June 30, 2024

June 30, 2023

Valuation Technique Significant Unobservable Inputs September 30, 2024

September 30, 2023

Ranges Weighted Average (1)

5 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

4 unchanged sentences

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

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.

2 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 and July 31, 2024, Chubb INA Holdings LLC (Chubb INA) issued $ 1.0 billion and $ 600 million, respectively, of 5.00 percent senior notes due March 2034.

The 5.00 percent senior notes due March 2034 constitute a single series of notes with an aggregate principal amount of $ 1.6 billion.

On July 31, 2024, Chubb INA issued $ 700 million of 4.65 percent senior notes due August 2029.

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

10 unchanged sentences

We also consider economic hedging for planned cross border transactions.

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:

June 30, 2024 December 31, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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

September 30, 2024 December 31, 2023

Balance Sheet

20 unchanged sentences

(2) Related to MRB book of business.

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.

At September 30, 2024, and December 31, 2023, net derivative liabilities of $ 139 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 June 30, 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 $ 1.7 billion at September 30, 2024, of 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

Nine Months Ended

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

7 unchanged sentences

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.

dollar to the British pound sterling, Japanese yen, and Swiss franc.

dollar to the British pound sterling, Japanese yen, Swiss franc, and Chinese yuan renminbi.

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.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine 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 Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

4 unchanged sentences

Convertible securities (1)

2 ( 3 ) 4 ( 2 )

Total investment and embedded derivative instruments $ 66 $ 9 $ 6 $ ( 92 )

35 unchanged sentences

Chubb purchases convertible securities for their total return and not specifically for the conversion feature.

By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities.

By acquiring to be announced mortgage-backed securities (TBAs), we make a commitment to purchase a future issuance of mortgage-backed securities.

For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the Consolidated Financial Statements.

14 unchanged sentences

Remaining contractual maturity

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(in millions of U.S.

10 unchanged sentences

Chubb Limited and Subsidiaries

At June 30, 2024, and December 31, 2023, our repurchase agreement obligations of $ 3,149 million and $ 2,833 million, respectively, were fully collateralized.

At September 30, 2024, and December 31, 2023, our repurchase agreement obligations of $ 3,048 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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Up to 30 Days 30-90 Days Greater than

18 unchanged sentences

e) Fixed maturities

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.

At September 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 $ 14.1 billion at June 30, 2024.

Private equities in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $ 14.2 billion at September 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 June 30, 2024, $ 72 million of unrecognized tax benefits remain out standing.

At September 30, 2024, $ 83 million of unrecognized tax benefits remain out standing.

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

10 unchanged sentences

i) Lease commitments

At June 30, 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.

At September 30, 2024, and December 31, 2023, the right-of-use asset was $ 748 million and $ 784 million, respectively, recorded within Other assets , and the lease liability was $ 817 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 June 30, 2024, our Common Shares had a par value of CHF 0.50 per share.

At September 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.

3 unchanged sentences

dollars (USD):

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

2024 2023 2024 2023

7 unchanged sentences

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.

During the nine months ended September 30, 2024, 4,915,964 shares were repurchased, 11,825,600 shares were canceled, and 2,679,748 net shares were issued under employee share-based compensation plans.

At September 30, 2024, 16,592,565 Common Shares remain in treasury.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

5 unchanged sentences

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

Three Months Ended Six Months Ended July 1, 2024

July 25, 2024

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

4 unchanged sentences

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

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

20 unchanged sentences

Change in period, before tax ( 8 ) ( 5 ) 2 3

Income tax expense ( 1 ) — ( 1 ) —

Total other comprehensive income 4 11 9 8

Income tax benefit 1 — — —

Total other comprehensive income (loss) ( 7 ) ( 5 ) 2 3

Noncontrolling interests, net of tax — — — —

2 unchanged sentences

Chubb Limited and Subsidiaries

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

23 unchanged sentences

Income tax benefit — — 1 —

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

Total other comprehensive loss ( 1 ) ( 1 ) ( 1 ) ( 3 )

Noncontrolling interests, net of tax — — — —

4 unchanged sentences

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

Three Months Ended Six Months Ended Consolidated Statement of Operations Location

June 30 June 30

Three Months Ended Nine Months Ended Consolidated Statement of Operations Location

September 30 September 30

(in millions of U.S.

34 unchanged sentences

2024 2023 2024 2023

Three Months Ended June 30 U.S.

Three Months Ended September 30 U.S.

Plans Non-U.S.

12 unchanged sentences

2024 2023 2024 2023

Six Months Ended June 30 U.S.

Nine Months Ended September 30 U.S.

Plans Non-U.S.

16 unchanged sentences

Benefit Plans

Three Months Ended June 30 2024 2023 2024 2023

Three Months Ended September 30 2024 2023 2024 2023

(in millions of U.S.

10 unchanged sentences

Benefit Plans

Six Months Ended June 30 2024 2023 2024 2023

Nine Months Ended September 30 2024 2023 2024 2023

(in millions of U.S.

9 unchanged sentences

Other income and expense

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

13 unchanged sentences

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.

This line item includes mark-to-market gains (losses) on private equities of $ 211 million and $ 318 million for the three and nine months ended September 30, 2024, respectively, and $ 51 million and $ 290 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.

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

18 unchanged sentences

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

Revenue and expenses managed at the corporate level, including Net realized gains (losses), Market risk benefits gains (losses), Interest expense, Cigna integration expenses, 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.

Revenue and expenses managed at the corporate level, including Net realized gains (losses), Market risk benefits gains (losses), Interest expense, Integration expenses, Income tax expense, and Net income (loss) attributable to noncontrolling interests are reported within Corporate.

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

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

17 unchanged sentences

For the Three Months Ended

June 30, 2024

September 30, 2024

(in millions of U.S.

16 unchanged sentences

Interest expense 192 — 192

Cigna integration expenses 7 — 7

Integration expenses 7 — 7

Income tax expense 504 — 504

Net income (loss) $ ( 782 ) $ — $ 2,490

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

Net income attributable to noncontrolling interests 166 — 166

Net income (loss) attributable to Chubb $ ( 948 ) $ — $ 2,324

2 unchanged sentences

For the Three Months Ended

June 30, 2023

September 30, 2023

(in millions of U.S.

13 unchanged sentences

purchased intangibles — 3 6 19 — 12 44 — 84

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

Segment income (loss) $ 1,521 $ 225 $ 111 $ 670 $ 92 $ 288 $ ( 138 ) $ 7 $ 2,776

Net realized gains (losses) ( 96 ) ( 7 ) ( 103 )

1 unchanged sentence

Interest expense 174 — 174

Cigna integration expenses 15 — 15

Integration expenses 14 — 14

Income tax expense 413 — 413

Net income (loss) $ ( 867 ) $ — $ 2,040

For the Six Months Ended

June 30, 2024

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

For the Nine Months Ended

September 30, 2024

(in millions of U.S.

16 unchanged sentences

Interest expense 552 — 552

Cigna integration expenses 14 — 14

Integration expenses 21 — 21

Income tax expense 1,336 — 1,336

4 unchanged sentences

Chubb Limited and Subsidiaries

For the Six Months Ended

June 30, 2023

For the Nine Months Ended

September 30, 2023

(in millions of U.S.

16 unchanged sentences

Interest expense 499 — 499

Cigna integration expenses 37 — 37

Integration expenses 51 — 51

Income tax expense 1,189 — 1,189

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

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

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

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Earnings per share

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

12 unchanged sentences

Potential anti-dilutive share conversions 1,330,590 2,562,206 1,080,371 2,330,821

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