Chubb Ltd 10-Q

ITEM 1. Financial Statements CONSOLIDATED BALANCE SHEETS (Unaudited) Chubb Limited and Subsidiaries September 30 December 31 (in millions of U.S. dollars, except share and per share data) 2024 2023 Assets Investments Short-term investments, at fair value (amortized cost – $ 4,378 and $ 4,551 ) (includes variable interest entities (VIE) balances of $ 196 and $ 217 ) $ 4,375 $ 4,551 Fixed maturities available-for-sale, at fair value, net of valuation allowance - $ 75 and $ 156 (amortized cost – $ 119,441 and $ 111,128 ) 117,265 106,571 Private debt held-for-investment, at amortized cost, net of valuation allowance - $ 5 and $ 4 2,619 2,553 Equity securities, at fair value (includes VIE balances of $ 1,362 and $ 1,078 ) 4,404 3,455 Private equities (includes VIE balances of $ 22 and $ 21 ) 14,405 14,078 Other investments (includes VIE balances of $ 4,243 and $ 3,773 ) 8,155 5,527 Total investments 151,223 136,735 Cash, including restricted cash $ 153 and $ 172 (includes VIE balances of $ 142 and $ 117 ) 2,678 2,621 Securities lending collateral 1,927 1,299 Accrued investment income 1,165 1,086 Insurance and reinsurance balances receivable, net of valuation allowance - $ 58 and $ 53 15,709 13,379 Reinsurance recoverable on losses and loss expenses, net of valuation allowance - $ 388 and $ 367 19,606 19,952 Reinsurance recoverable on policy benefits 292 280 Deferred policy acquisition costs 8,249 7,152 Value of business acquired 3,452 3,674 Goodwill 19,990 19,686 Other intangible assets 6,594 6,775 Deferred tax assets 1,567 1,741 Prepaid reinsurance premiums 3,648 3,221 Separate account assets 5,996 5,573 Other assets (includes VIE balances of $ 19 and $ 33 ) 8,461 7,508 Total assets $ 250,557 $ 230,682 Liabilities Unpaid losses and loss expenses $ 84,326 $ 80,122 Unearned premiums 24,498 22,051 Future policy benefits 16,003 13,888 Market risk benefits 748 771 Policyholders' account balances 8,136 7,462 Separate account liabilities 5,996 5,573 Insurance and reinsurance balances payable 8,696 8,302 Securities lending payable 1,927 1,299 Accounts payable, accrued expenses, and other liabilities (includes VIE balances of $ 137 and $ 18 ) 8,967 8,332 Deferred tax liabilities 1,652 1,555 Repurchase agreements (includes VIE balances of $ 810 and $ 1,009 ) 3,048 2,833 Short-term debt 1,571 1,460 Long-term debt 14,560 13,035 Trust preferred securities 309 308 Total liabilities 180,437 166,991 Commitments and contingencies (refer to Note 13) Shareholders’ equity Common Shares (CHF 0.50 par value; 419,625,986 and 431,451,586 shares issued; 403,033,421 and 405,269,637 shares outstanding) 235 241 Common Shares in treasury ( 16,592,565 and 26,181,949 shares) ( 2,837 ) ( 4,400 ) Additional paid-in capital 14,643 15,665 Retained earnings 58,986 54,810 Accumulated other comprehensive income (loss) (AOCI) ( 5,270 ) ( 6,809 ) Total Chubb shareholders’ equity 65,757 59,507 Noncontrolling interests (includes VIE balances of $ 3,445 and $ 2,705 ) 4,363 4,184 Total shareholders' equity 70,120 63,691 Total liabilities and shareholders’ equity $ 250,557 $ 230,682 See accompanying notes to the Consolidated Financial Statements 3 Table of Contents CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Chubb Limited and Subsidiaries Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars, except per share data) 2024 2023 2024 2023 Revenues Net premiums written $ 13,829 $ 13,104 $ 39,410 $ 35,765 Increase in unearned premiums ( 456 ) ( 430 ) ( 2,162 ) ( 1,950 ) Net premiums earned 13,373 12,674 37,248 33,815 Net investment income 1,508 1,314 4,367 3,566 Net realized gains (losses) 198 ( 103 ) 201 ( 484 ) Market risk benefits gains (losses) ( 230 ) ( 32 ) ( 238 ) ( 154 ) Total revenues 14,849 13,853 41,578 36,743 Expenses Losses and loss expenses 7,383 7,106 19,541 17,937 Policy benefits (includes remeasurement gains of $ 26 , $ 25 , $ 4 and $ 21 ) 1,099 938 3,498 2,565 Policy acquisition costs 2,324 2,178 6,757 6,142 Administrative expenses 1,094 1,060 3,258 2,959 Interest expense 192 174 552 499 Other (income) expense ( 325 ) ( 154 ) ( 626 ) ( 550 ) Amortization of purchased intangibles 81 84 241 226 Integration expenses 7 14 21 51 Total expenses 11,855 11,400 33,242 29,829 Income before income tax 2,994 2,453 8,336 6,914 Income tax expense 504 413 1,336 1,189 Net income $ 2,490 $ 2,040 $ 7,000 $ 5,725 Net income (loss) attributable to noncontrolling interests 166 ( 3 ) 303 ( 3 ) Net income attributable to Chubb $ 2,324 $ 2,043 $ 6,697 $ 5,728 Other comprehensive income (loss) Change in: Unrealized appreciation (depreciation) $ 3,459 $ ( 2,170 ) $ 2,293 $ ( 1,578 ) Current discount rate on future policy benefits ( 672 ) 683 ( 672 ) 497 Instrument-specific credit risk on market risk benefits ( 8 ) ( 5 ) 2 3 Cumulative foreign currency translation adjustment 445 ( 317 ) ( 5 ) ( 279 ) Other, including postretirement benefit liability adjustment ( 19 ) 37 ( 17 ) 52 Other comprehensive income (loss), before income tax 3,205 ( 1,772 ) 1,601 ( 1,305 ) Income tax expense related to OCI items ( 150 ) — ( 112 ) ( 104 ) Other comprehensive income (loss) 3,055 ( 1,772 ) 1,489 ( 1,409 ) Comprehensive income 5,545 268 8,489 4,316 Comprehensive income (loss) attributable to noncontrolling interests 187 ( 79 ) 253 ( 79 ) Comprehensive income attributable to Chubb $ 5,358 $ 347 $ 8,236 $ 4,395 Earnings per share Basic earnings per share attributable to Chubb $ 5.75 $ 4.99 $ 16.55 $ 13.90 Diluted earnings per share attributable to Chubb $ 5.70 $ 4.95 $ 16.38 $ 13.79 See accompanying notes to the Consolidated Financial Statements 4 Table of Contents CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) Chubb Limited and Subsidiaries Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Common Shares Balance – beginning of period $ 235 $ 241 $ 241 $ 10,346 Par value reduction — — — ( 9,759 ) Cancellation of treasury shares — — ( 6 ) ( 346 ) Balance – end of period 235 241 235 241 Common Shares in treasury Balance – beginning of period ( 2,481 ) ( 3,174 ) ( 4,400 ) ( 5,113 ) Common Shares repurchased ( 413 ) ( 606 ) ( 1,299 ) ( 1,758 ) Cancellation of treasury shares — — 2,527 2,869 Net shares issued under employee share-based compensation plans 57 33 335 255 Balance – end of period ( 2,837 ) ( 3,747 ) ( 2,837 ) ( 3,747 ) Additional paid-in capital Balance – beginning of period 14,926 16,163 15,665 7,166 Net shares redeemed (issued) under employee share-based compensation plans 3 3 ( 139 ) ( 203 ) Exercise of stock options ( 3 ) ( 2 ) ( 22 ) ( 15 ) Share-based compensation expense 86 75 258 230 Par value reduction — — — 9,759 Net decrease due to acquisitions — — ( 31 ) — Funding of dividends declared to Retained earnings ( 369 ) ( 352 ) ( 1,088 ) ( 1,050 ) Balance – end of period 14,643 15,887 14,643 15,887 Retained earnings Balance – beginning of period 56,662 49,467 54,810 48,305 Net income attributable to Chubb 2,324 2,043 6,697 5,728 Cancellation of treasury shares — — ( 2,521 ) ( 2,523 ) Funding of dividends declared from Additional paid-in capital 369 352 1,088 1,050 Dividends declared on Common Shares ( 369 ) ( 352 ) ( 1,088 ) ( 1,050 ) Balance – end of period 58,986 51,510 58,986 51,510 Accumulated other comprehensive income (loss) (AOCI) Balance – beginning of period ( 8,304 ) ( 9,822 ) ( 6,809 ) ( 10,185 ) Other comprehensive income (loss) 3,034 ( 1,696 ) 1,539 ( 1,333 ) Balance – end of period ( 5,270 ) ( 11,518 ) ( 5,270 ) ( 11,518 ) Total Chubb shareholders’ equity $ 65,757 $ 52,373 $ 65,757 $ 52,373 Noncontrolling interests Balance – beginning of period $ 3,537 $ — $ 4,184 $ — 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 income (loss) attributable to noncontrolling interests 21 ( 76 ) ( 50 ) ( 76 ) Other — — ( 6 ) — Balance – end of period $ 4,363 $ 5,131 $ 4,363 $ 5,131 Total shareholders' equity $ 70,120 $ 57,504 $ 70,120 $ 57,504 See accompanying notes to the Consolidated Financial Statements 5 Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Chubb Limited and Subsidiaries Nine Months Ended September 30 (in millions of U.S. dollars) 2024 2023 Cash flows from operating activities Net income $ 7,000 $ 5,725 Adjustments to reconcile net income to net cash flows from operating activities Net realized (gains) losses ( 201 ) 484 Market risk benefits (gains) losses 238 154 Amortization of premiums (discounts) on fixed maturities ( 271 ) ( 80 ) Amortization of purchased intangibles 241 226 Equity in net income of partially-owned entities ( 621 ) ( 610 ) Deferred income taxes 150 39 Unpaid losses and loss expenses 4,242 3,270 Unearned premiums 2,563 2,085 Future policy benefits 1,399 570 Insurance and reinsurance balances payable 433 23 Accounts payable, accrued expenses, and other liabilities ( 175 ) ( 392 ) Income taxes ( 129 ) ( 6 ) Insurance and reinsurance balances receivable ( 2,468 ) ( 1,618 ) Reinsurance recoverable 312 ( 388 ) Deferred policy acquisition costs ( 1,142 ) ( 832 ) Net sales (purchases) of investments by consolidated investment products ( 124 ) — Other 170 796 Net cash flows from operating activities 11,617 9,446 Cash flows from investing activities Purchases of fixed maturities available-for-sale ( 26,192 ) ( 21,613 ) Purchases of fixed maturities held-to-maturity — ( 208 ) Purchases of equity securities ( 2,608 ) ( 968 ) Sales of fixed maturities available-for-sale 8,829 11,293 Sales of equity securities 1,956 531 Maturities and redemptions of fixed maturities available-for-sale 7,735 5,107 Maturities and redemptions of fixed maturities held-to-maturity — 708 Net change in short-term investments 158 484 Net derivative instruments settlements ( 122 ) ( 56 ) Private equity contributions ( 733 ) ( 1,313 ) Private equity distributions 1,044 938 Acquisition of subsidiaries (net of cash acquired) ( 538 ) 216 Other ( 978 ) ( 553 ) Net cash flows used for investing activities ( 11,449 ) ( 5,434 ) Cash flows from financing activities Dividends paid on Common Shares ( 1,069 ) ( 1,044 ) Common Shares repurchased ( 1,351 ) ( 1,848 ) Proceeds from issuance of long-term debt 2,297 — Proceeds from issuance of repurchase agreements 3,950 3,778 Repayment of long-term debt ( 700 ) ( 475 ) Repayment of repurchase agreements ( 3,838 ) ( 3,832 ) Proceeds from share-based compensation plans 302 140 Policyholder contract deposits 818 415 Policyholder contract withdrawals ( 534 ) ( 269 ) Third-party capital invested into consolidated investment products 1,409 — Third-party capital distributed by consolidated investment products ( 1,118 ) — Other ( 228 ) ( 190 ) Net cash flows used for financing activities ( 62 ) ( 3,325 ) Effect of foreign currency rate changes on cash and restricted cash ( 49 ) ( 36 ) Net increase in cash and restricted cash 57 651 Cash and restricted cash – beginning of period 2,621 2,127 Cash and restricted cash – end of period $ 2,678 $ 2,778 Supplemental cash flow information Taxes paid $ 1,307 $ 1,101 Interest paid $ 415 $ 345 See accompanying notes to the Consolidated Financial Statements 6 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Chubb Limited and Subsidiaries 1. General and significant accounting policies a) Basis of presentation Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 18 for additional information. The interim unaudited Consolidated Financial Statements include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), over which Chubb exercises control, including Huatai Group, our majority-owned subsidiary, and minority-owned entities such as variable interest entities (VIEs) in which Chubb is considered the primary beneficiary. Noncontrolling interests on the Consolidated Financial Statements represent the portion of majority-owned subsidiaries and VIEs in which we do not have direct equity ownership. These interim unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated. On July 1, 2023, Chubb discontinued equity method accounting for its investment in Huatai Group upon obtaining a controlling interest and applied consolidation accounting. Therefore, effective July 1, 2023, business activity for, and the financial position of, Huatai Group is reported at 100 percent on the Consolidated Financial Statements. At 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. Refer to Note 2 for additional information on the acquisition of Huatai Group. Huatai Group's life insurance and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment. Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate. The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our 2023 Form 10-K. b) New Accounting Pronouncements Accounting guidance not yet adopted Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued guidance that requires expanded reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Retrospective application is required. We are currently evaluating the impact of this disclosure-only requirement. Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance that requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. We are currently evaluating the impact of this disclosure-only requirement. 7 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 2. Acquisitions Healthy Paws 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 $ 44 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 Group Huatai Insurance Group Co., Ltd. (Huatai Group) is a Chinese financial services holding company and the parent company of, among others, Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), Huatai Life Insurance Co., Ltd. (Huatai Life), Huatai Asset Management Co., Ltd., and Huatai Baoxing Fund Management Co., Ltd., of which Huatai Group owns 100 percent, 80 percent, 91 percent, and 85 percent, respectively (collectively, Huatai). On July 1, 2023, Chubb increased ownership interest from approximately 64.2 percent to approximately 69.6 percent. At that time, Chubb discontinued the equity method of accounting and applied consolidation accounting. Refer to Note 2 to the Consolidated Financial Statements in our 2023 Form 10-K for additional information. 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. 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. 8 Table of Contents 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 (in millions of U.S. dollars) 2023 Assets 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 Liabilities 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 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. dollars) Total revenues $ 389 Net loss $ ( 11 ) Net loss attributable to Chubb $ ( 9 ) The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of a controlling majority interest in Huatai Group that occurred on July 1, 2023, had instead occurred on January 1, 2022. The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition of a controlling majority interest been consummated on January 1, 2022, nor is it necessarily indicative of future operating results. Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets. Three Months Ended Nine Months Ended Pro forma: September 30 September 30 (in millions of U.S. dollars) 2023 2023 Net premiums earned $ 12,674 $ 34,605 Total revenues $ 13,755 $ 37,589 Net income $ 1,905 $ 5,595 Net income attributable to Chubb $ 1,912 $ 5,587 9 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 3. Investments a) Fixed maturities September 30, 2024 Amortized Cost Valuation Allowance Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value (in millions of U.S. dollars) Available-for-sale U.S. Treasury / Agency $ 2,709 $ — $ 18 $ ( 98 ) $ 2,629 Non-U.S. 37,560 ( 23 ) 895 ( 931 ) 37,501 Corporate and asset-backed securities 47,588 ( 52 ) 736 ( 1,579 ) 46,693 Mortgage-backed securities 29,517 — 341 ( 1,384 ) 28,474 Municipal 2,067 — 18 ( 117 ) 1,968 $ 119,441 $ ( 75 ) $ 2,008 $ ( 4,109 ) $ 117,265 December 31, 2023 Amortized Cost Valuation Allowance Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value (in millions of U.S. dollars) Available-for-sale U.S. Treasury / Agency $ 3,721 $ — $ 13 $ ( 144 ) $ 3,590 Non-U.S. 35,918 ( 49 ) 592 ( 1,297 ) 35,164 Corporate and asset-backed securities 44,695 ( 104 ) 390 ( 2,151 ) 42,830 Mortgage-backed securities 23,720 ( 3 ) 143 ( 1,802 ) 22,058 Municipal 3,074 — 10 ( 155 ) 2,929 $ 111,128 $ ( 156 ) $ 1,148 $ ( 5,549 ) $ 106,571 The following table presents fixed maturities by contractual maturity: September 30, 2024 December 31, 2023 (in millions of U.S. dollars) Net Carrying Value Fair Value Net Carrying Value Fair Value Available-for-sale Due in 1 year or less $ 4,536 $ 4,536 $ 4,729 $ 4,729 Due after 1 year through 5 years 35,739 35,739 33,573 33,573 Due after 5 years through 10 years 28,913 28,913 28,480 28,480 Due after 10 years 19,603 19,603 17,731 17,731 88,791 88,791 84,513 84,513 Mortgage-backed securities 28,474 28,474 22,058 22,058 $ 117,265 $ 117,265 $ 106,571 $ 106,571 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. 10 Table of Contents 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 September 30, 2024 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury / Agency $ — $ — $ 1,677 $ ( 98 ) $ 1,677 $ ( 98 ) Non-U.S. 1,706 ( 26 ) 13,628 ( 734 ) 15,334 ( 760 ) Corporate and asset-backed securities 1,511 ( 13 ) 15,280 ( 959 ) 16,791 ( 972 ) Mortgage-backed securities 664 ( 5 ) 13,684 ( 1,366 ) 14,348 ( 1,371 ) Municipal 35 ( 1 ) 1,188 ( 114 ) 1,223 ( 115 ) Total AFS fixed maturities $ 3,916 $ ( 45 ) $ 45,457 $ ( 3,271 ) $ 49,373 $ ( 3,316 ) 0 – 12 Months Over 12 Months Total December 31, 2023 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury / Agency $ 463 $ ( 9 ) $ 2,504 $ ( 135 ) $ 2,967 $ ( 144 ) Non-U.S. 2,464 ( 43 ) 15,971 ( 957 ) 18,435 ( 1,000 ) Corporate and asset-backed securities 2,866 ( 51 ) 20,334 ( 1,194 ) 23,200 ( 1,245 ) Mortgage-backed securities 1,659 ( 58 ) 13,831 ( 1,706 ) 15,490 ( 1,764 ) Municipal 1,117 ( 15 ) 1,310 ( 137 ) 2,427 ( 152 ) Total AFS fixed maturities $ 8,569 $ ( 176 ) $ 53,950 $ ( 4,129 ) $ 62,519 $ ( 4,305 ) 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. 11 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following table presents a roll-forward of valuation allowance for expected credit losses on fixed maturities: Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Available-for-sale Valuation allowance for expected credit losses - beginning of period $ 122 $ 193 $ 156 $ 169 Provision for expected credit loss 23 34 95 172 Write-offs charged against the expected credit loss ( 1 ) ( 1 ) ( 6 ) ( 5 ) Recovery of expected credit loss ( 69 ) ( 68 ) ( 170 ) ( 178 ) Valuation allowance for expected credit losses - end of period $ 75 $ 158 $ 75 $ 158 Held-to-maturity Valuation allowance for expected credit losses - beginning of period $ — $ — $ — $ 34 Recovery of expected credit loss — — — ( 34 ) Valuation allowance for expected credit losses - end of period $ — $ — $ — $ — Private debt held-for-investment Valuation allowance for expected credit losses - beginning of period $ 5 $ — $ 4 $ — Provision for expected credit loss — — 2 — Recovery of expected credit loss — — ( 1 ) — Valuation allowance for expected credit losses - end of period $ 5 $ — $ 5 $ — 12 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries c) Net realized gains (losses) The following table presents the components of net realized gains (losses): Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Fixed maturities: Gross realized gains $ 21 $ 97 $ 73 $ 116 Gross realized losses ( 91 ) ( 184 ) ( 338 ) ( 456 ) Other investments - Fixed maturities 152 ( 1 ) 452 ( 1 ) Net (provision for) recovery of expected credit losses 48 34 80 44 Impairment (1) ( 19 ) ( 16 ) ( 81 ) ( 60 ) Total fixed maturities 111 ( 70 ) 186 ( 357 ) Equity securities 123 ( 100 ) 147 ( 61 ) Private equities (less than 3 percent ownership) ( 41 ) 40 39 75 Foreign exchange ( 58 ) ( 67 ) ( 162 ) ( 122 ) Investment and embedded derivative instruments 66 9 6 ( 92 ) Other derivative instruments ( 2 ) ( 7 ) ( 7 ) ( 6 ) Other (2) ( 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: Three Months Ended September 30 2024 2023 (in millions of U.S. 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 ) Less: Net gains (losses) recognized from sales of securities ( 6 ) 2 — ( 4 ) ( 45 ) — — ( 45 ) Unrealized gains (losses) recognized for securities still held at reporting date $ 129 $ 150 $ ( 41 ) $ 238 $ ( 55 ) $ ( 1 ) $ 40 $ ( 16 ) 13 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Nine Months Ended September 30 2024 2023 (in millions of U.S. 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 Less: Net gains (losses) recognized from sales of securities 5 2 — 7 ( 48 ) — — ( 48 ) Unrealized gains (losses) recognized for securities still held at reporting date $ 142 $ 450 $ 39 $ 631 $ ( 13 ) $ ( 1 ) $ 75 $ 61 d) Private equities Private equities include investment funds and limited partnerships measured at fair value using net asset value (NAV) as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments for private equities: Expected Liquidation Period of Underlying Assets September 30, 2024 December 31, 2023 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 2 to 10 Years $ 1,247 $ 316 $ 1,241 $ 364 Real assets 2 to 13 Years 2,006 588 2,137 445 Distressed 2 to 8 Years 1,257 822 1,206 936 Private credit 3 to 8 Years 316 288 331 298 Traditional 2 to 14 Years 9,307 4,767 8,873 4,167 Vintage 1 to 3 Years 59 — 72 — Investment funds Not Applicable 213 — 218 — $ 14,405 $ 6,781 $ 14,078 $ 6,210 Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds. Investment Category: Consists of investments in private equity funds: Financial targeting financial services companies, such as financial institutions and insurance services worldwide Real assets targeting investments related to hard physical assets, such as real estate, infrastructure, and natural resources Distressed targeting distressed corporate debt/credit and equity opportunities in the U.S. Private credit targeting privately originated corporate debt investments, including senior secured loans and subordinated bonds Traditional employing traditional private equity investment strategies, such as buyout and growth equity globally Vintage funds where the initial fund term has expired 14 Table of Contents 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. Included in this category are investments for which Chubb has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If Chubb wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when Chubb cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, Chubb must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds are up to 270 days. Chubb can redeem its investment funds without consent from the investment fund managers. e) Restricted assets Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. 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: September 30 December 31 (in millions of U.S. dollars) 2024 2023 Trust funds $ 9,137 $ 8,482 Assets pledged under repurchase agreements 3,273 2,924 Deposits with U.S. regulatory authorities 2,565 2,544 Deposits with non-U.S. regulatory authorities and other 4,714 4,464 Total $ 19,689 $ 18,414 f) Variable interest entities (VIEs) Consolidated VIEs Certain subsidiaries of Huatai Group are the investment manager of, and maintain investments in, sponsored investment products that are considered VIEs. We have determined that we are the primary beneficiary and consolidate these investment products if we hold at least 10 percent ownership. Refer to Note 1 g) of our 2023 Form 10-K for further information on our consolidation criteria. The assets of these VIEs are not available to our creditors, and the investors in these VIEs have no recourse to Chubb in excess of the assets contained within the VIEs. Our economic exposures are limited to our investments based on our ownership interest in these VIEs. Our total exposure to these consolidated investment products represents the value of our economic ownership interest. Unconsolidated VIEs We do not consolidate sponsored investment products where we have determined that we are not the primary beneficiary. The carrying value of these investments at 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. 4. Fair value measurements a) Fair value hierarchy 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 15 Table of Contents 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. The three levels of the hierarchy are as follows: • Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and • Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants would use in pricing an asset or liability. We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement. We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with U.S. GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy. Fixed maturities We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications or pricing models, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market-based inputs (i.e., stale pricing) and may require the use of models to be priced. The lack of market-based inputs may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a single broker quote (typically from a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in Level 3. Equity securities Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3. Short-term investments Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity, and as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3. Private equities 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. 16 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Other investments Certain of our long-duration contracts are supported by assets that do not qualify for separate account treatment under U.S. GAAP. 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. These policies are carried at cash surrender value and are classified in the valuation hierarchy within Level 2. Securities lending collateral The underlying assets included in Securities lending collateral in the Consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. 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. Investment derivatives Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2. 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 Certain of our derivatives are cross-currency swaps designated as fair value and net investment hedging instruments. The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2. 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 We maintain positions in exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected market risk benefits (MRB) claims, and therefore, an increase in MRB reserves. Our positions in exchange-traded equity futures contracts are classified within Level 1. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. 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 or Level 2 depending on the underlying investment. Separate account assets Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. Separate account assets principally comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the Consolidated balance sheets. 17 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Financial instruments measured at fair value on a recurring basis, by valuation hierarchy September 30, 2024 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available-for-sale U.S. Treasury / Agency $ 1,979 $ 650 $ — $ 2,629 Non-U.S. — 36,862 639 37,501 Corporate and asset-backed securities — 43,915 2,778 46,693 Mortgage-backed securities — 28,428 46 28,474 Municipal — 1,968 — 1,968 1,979 111,823 3,463 117,265 Equity securities 4,286 — 118 4,404 Short-term investments 2,491 1,869 15 4,375 Other investments (1) 616 6,424 — 7,040 Securities lending collateral — 1,927 — 1,927 Investment derivatives 42 — — 42 Derivatives designated as hedging instruments — 150 — 150 Separate account assets 5,919 77 — 5,996 Total assets measured at fair value (1)(2) $ 15,333 $ 122,270 $ 3,596 $ 141,199 Liabilities: Investment derivatives $ 127 $ — $ — $ 127 Derivatives designated as hedging instruments — 174 — 174 Other derivative instruments 25 5 — 30 Market risk benefits (3) — — 748 748 Total liabilities measured at fair value $ 152 $ 179 $ 748 $ 1,079 (1) Excluded from the table above are other investments of $ 1,115 million, principally policy loans, measured using NAV as a practical expedient. (2) Excluded from the table above are private equities of $ 14,405 million, measured using NAV as a practical expedient. (3) Refer to Note 11 for additional information on Market risk benefits. 18 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries December 31, 2023 Level 1 Level 2 Level 3 Total (in millions of U.S. dollars) Assets: Fixed maturities available-for-sale U.S. Treasury / Agency $ 2,911 $ 679 $ — $ 3,590 Non-U.S. — 34,472 692 35,164 Corporate and asset-backed securities — 40,208 2,622 42,830 Mortgage-backed securities — 22,051 7 22,058 Municipal — 2,929 — 2,929 2,911 100,339 3,321 106,571 Equity securities 3,368 — 87 3,455 Short-term investments 1,915 2,633 3 4,551 Other investments (1) 589 4,236 — 4,825 Securities lending collateral — 1,299 — 1,299 Investment derivatives 54 — — 54 Derivatives designated as hedging instruments — 136 — 136 Separate account assets 5,482 91 — 5,573 Total assets measured at fair value (1)(2) $ 14,319 $ 108,734 $ 3,411 $ 126,464 Liabilities: Investment derivatives $ 136 $ — $ — $ 136 Derivatives designated as hedging instruments — 128 — 128 Other derivative instruments 37 5 — 42 Market risk benefits (3) — — 771 771 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, 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. 19 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Level 3 financial instruments The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3). Three Months Ended September 30, 2024 (in millions of U.S. dollars) Available-for-Sale Debt Securities Equity securities Short-term investments Non-U.S. Corporate and asset- backed securities Mortgage-backed securities Balance, beginning of period $ 632 $ 2,709 $ 20 $ 100 $ 12 Transfers out of Level 3 ( 1 ) — ( 14 ) — — Change in Net Unrealized Gains (Losses) in OCI 10 16 — — ( 1 ) Net Realized Gains (Losses) ( 1 ) ( 10 ) — 7 — Purchases 59 316 40 17 6 Sales ( 18 ) ( 69 ) — ( 6 ) ( 1 ) Settlements ( 42 ) ( 184 ) — — ( 1 ) Balance, end of period $ 639 $ 2,778 $ 46 $ 118 $ 15 Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date $ — $ ( 8 ) $ — $ 6 $ — Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ 11 $ 12 $ — $ — $ ( 1 ) Three Months Ended September 30, 2023 (in millions of U.S. dollars) Available-for-Sale Debt Securities Equity securities Short-term investments Non-U.S. Corporate and asset- backed securities Mortgage-backed securities Balance, beginning of period $ 649 $ 2,524 $ 10 $ 86 $ 3 Transfers out of Level 3 ( 22 ) ( 10 ) — — — Change in Net Unrealized Gains (Losses) in OCI ( 6 ) 6 — — — Net Realized Gains (Losses) ( 2 ) ( 4 ) — — — Purchases 46 158 16 4 — Sales ( 17 ) ( 40 ) — ( 5 ) ( 1 ) Settlements ( 15 ) ( 65 ) ( 1 ) — — Balance, end of period $ 633 $ 2,569 $ 25 $ 85 $ 2 Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date $ ( 1 ) $ ( 4 ) $ — $ — $ — Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ ( 8 ) $ 4 $ — $ — $ — 20 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Nine Months Ended September 30, 2024 (in millions of U.S. dollars) Available-for-Sale Debt Securities Equity securities Short-term investments Non-U.S. 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 ( 7 ) ( 3 ) ( 14 ) — — Change in Net Unrealized Gains (Losses) in OCI 18 26 — — ( 2 ) Net Realized Gains (Losses) ( 5 ) ( 15 ) — 6 — Purchases 214 785 55 36 22 Sales ( 69 ) ( 176 ) — ( 11 ) ( 1 ) Settlements ( 205 ) ( 466 ) ( 2 ) — ( 7 ) Balance, end of period $ 639 $ 2,778 $ 46 $ 118 $ 15 Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date $ ( 1 ) $ ( 10 ) $ — $ 5 $ — Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ 14 $ 17 $ — $ — $ ( 2 ) Nine Months Ended September 30, 2023 (in millions of U.S. dollars) Available-for-Sale Debt Securities Equity securities Short-term investments Non-U.S. Corporate and asset- backed securities Mortgage-backed securities Balance, beginning of period $ 564 $ 2,449 $ 11 $ 90 $ 3 Transfers into Level 3 21 3 — — — Transfers out of Level 3 ( 22 ) ( 23 ) — — — Change in Net Unrealized Gains (Losses) in OCI 5 8 — — ( 1 ) Net Realized Gains (Losses) ( 3 ) ( 7 ) — ( 6 ) — Purchases 151 481 16 15 3 Sales ( 52 ) ( 70 ) — ( 14 ) ( 3 ) Settlements ( 31 ) ( 272 ) ( 2 ) — — Balance, end of period $ 633 $ 2,569 $ 25 $ 85 $ 2 Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date $ ( 1 ) $ ( 6 ) $ — $ ( 6 ) $ — Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date $ 1 $ 2 $ — $ — $ — Excluded from the tables above is the reconciliation of Market risk benefits, which are presented in Note 11 Market risk benefits. Refer to Note 11 for additional information. b) Financial instruments disclosed, but not measured, at fair value Chubb uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below. The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values. Refer to the 2023 Form 10-K for information on the fair value methods and assumptions for private debt held-for-investment, short-term and long-term debt, repurchase agreements, and trust-preferred securities. 21 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value: September 30, 2024 Fair Value Net Carrying Value (in millions of U.S. dollars) Level 1 Level 2 Level 3 Total Assets: Private debt held-for-investment $ — $ — $ 2,650 $ 2,650 $ 2,619 Total assets $ — $ — $ 2,650 $ 2,650 $ 2,619 Liabilities: Repurchase agreements $ — $ 3,048 $ — $ 3,048 $ 3,048 Short-term debt — 1,560 — 1,560 1,571 Long-term debt — 13,645 — 13,645 14,560 Trust preferred securities — 377 — 377 309 Total liabilities $ — $ 18,630 $ — $ 18,630 $ 19,488 December 31, 2023 Fair Value Net Carrying Value (in millions of U.S. dollars) Level 1 Level 2 Level 3 Total Assets: Private debt held-for-investment $ — $ — $ 2,560 $ 2,560 $ 2,553 Total assets $ — $ — $ 2,560 $ 2,560 $ 2,553 Liabilities: Repurchase agreements $ — $ 2,833 $ — $ 2,833 $ 2,833 Short-term debt — 1,431 — 1,431 1,460 Long-term debt — 11,924 — 11,924 13,035 Trust preferred securities — 365 — 365 308 Total liabilities $ — $ 16,553 $ — $ 16,553 $ 17,636 5. Reinsurance Reinsurance recoverable on ceded reinsurance September 30, 2024 December 31, 2023 (in millions of U.S. dollars) Net Reinsurance Recoverable (1) Valuation allowance Net Reinsurance Recoverable (1) Valuation allowance Reinsurance recoverable on unpaid losses and loss expenses $ 17,631 $ 307 $ 17,884 $ 285 Reinsurance recoverable on paid losses and loss expenses 1,975 81 2,068 82 Reinsurance recoverable on losses and loss expenses $ 19,606 $ 388 $ 19,952 $ 367 Reinsurance recoverable on policy benefits $ 292 $ — $ 280 $ — (1) Net of valuation allowance for uncollectible reinsurance. 22 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following table presents a roll-forward of valuation allowance for uncollectible reinsurance related to Reinsurance recoverable on losses and loss expenses: Nine Months Ended September 30 (in millions of U.S. dollars) 2024 2023 Valuation allowance for uncollectible reinsurance - beginning of period $ 367 $ 351 Provision for uncollectible reinsurance 24 27 Write-offs charged against the valuation allowance ( 4 ) ( 8 ) Foreign exchange revaluation 1 — Valuation allowance for uncollectible reinsurance - end of period $ 388 $ 370 For additional information, refer to Note 1 e) to the Consolidated Financial Statements of our 2023 Form 10-K. 6. Deferred policy acquisition costs 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. dollars) Term Life Universal Life Whole Life A&H Other Total Balance – beginning of period $ 402 $ 674 $ 534 $ 1,301 $ 274 $ 3,185 Capitalizations 149 109 276 467 53 1,054 Amortization expense ( 89 ) ( 60 ) ( 27 ) ( 132 ) ( 20 ) ( 328 ) Other (including foreign exchange) ( 1 ) ( 2 ) 2 ( 8 ) ( 3 ) ( 12 ) Balance – end of period $ 461 $ 721 $ 785 $ 1,628 $ 304 $ 3,899 Overseas General Insurance segment excluded from table 615 Total deferred policy acquisition costs on long-duration contracts $ 4,514 Deferred policy acquisition costs on short-duration contracts 3,735 Total deferred policy acquisition costs $ 8,249 Nine Months Ended September 30, 2023 (in millions of U.S. dollars) Term Life Universal Life Whole Life A&H Other Total Balance – beginning of period $ 324 $ 639 $ 392 $ 891 $ 268 $ 2,514 Capitalizations 131 85 103 396 27 742 Amortization expense ( 76 ) ( 55 ) ( 18 ) ( 98 ) ( 19 ) ( 266 ) Other (including foreign exchange) ( 2 ) ( 18 ) 3 ( 19 ) ( 2 ) ( 38 ) Balance – end of period $ 377 $ 651 $ 480 $ 1,170 $ 274 $ 2,952 Overseas General Insurance segment excluded from table 621 Total deferred policy acquisition costs on long-duration contracts $ 3,573 Deferred policy acquisition costs on short-duration contracts 3,283 Total deferred policy acquisition costs $ 6,856 23 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 7. Goodwill 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 ( 2 ) ( 1 ) — ( 43 ) — 29 ( 17 ) Balance at September 30, 2024 (1) $ 7,200 $ 2,230 $ 134 $ 5,219 $ 371 $ 4,836 $ 19,990 (1) Includes $ 509 million attributable to noncontrolling interests. 8. Unpaid losses and loss expenses The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses: Nine Months Ended September 30 (in millions of U.S. dollars) 2024 2023 Gross unpaid losses and loss expenses – beginning of period $ 80,122 $ 75,747 Reinsurance recoverable on unpaid losses and loss expenses – beginning of period (1) ( 17,884 ) ( 17,086 ) Net unpaid losses and loss expenses – beginning of period 62,238 58,661 Net losses and loss expenses incurred in respect of losses occurring in: Current year 20,302 18,604 Prior years (2) ( 761 ) ( 667 ) Total 19,541 17,937 Net losses and loss expenses paid in respect of losses occurring in: Current year 5,005 4,853 Prior years 10,074 10,158 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 and loss expenses (1) 17,631 17,808 Gross unpaid losses and loss expenses – end of period $ 84,326 $ 79,705 (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 $ 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. 24 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Prior Period Development Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. Long-tail lines include lines such as workers' compensation, general liability, and financial lines; while short-tail lines include lines such as most property lines, energy, personal accident, and agriculture. The following table summarizes (favorable) and adverse PPD by segment: Three Months Ended September 30 Nine Months Ended September 30 (in millions of U.S. dollars) Long-tail Short-tail Total Long-tail Short-tail Total 2024 North America Commercial P&C Insurance $ 125 $ ( 164 ) $ ( 39 ) $ 79 $ ( 310 ) $ ( 231 ) North America Personal P&C Insurance — ( 189 ) ( 189 ) — ( 305 ) ( 305 ) North America Agricultural Insurance — ( 6 ) ( 6 ) — ( 34 ) ( 34 ) Overseas General Insurance ( 61 ) 1 ( 60 ) ( 26 ) ( 184 ) ( 210 ) Global Reinsurance ( 5 ) — ( 5 ) — ( 20 ) ( 20 ) Corporate 55 — 55 157 — 157 Total $ 114 $ ( 358 ) $ ( 244 ) $ 210 $ ( 853 ) $ ( 643 ) 2023 North America Commercial P&C Insurance $ 107 $ ( 191 ) $ ( 84 ) $ ( 23 ) $ ( 279 ) $ ( 302 ) North America Personal P&C Insurance — ( 119 ) ( 119 ) — ( 135 ) ( 135 ) North America Agricultural Insurance — ( 9 ) ( 9 ) — ( 12 ) ( 12 ) Overseas General Insurance ( 52 ) 3 ( 49 ) ( 52 ) ( 201 ) ( 253 ) Global Reinsurance — — — 7 ( 32 ) ( 25 ) Corporate 61 — 61 131 — 131 Total $ 116 $ ( 316 ) $ ( 200 ) $ 63 $ ( 659 ) $ ( 596 ) Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate. North America Commercial P&C Insurance . 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. 25 Table of Contents 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. Corporate. 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. 9. 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 Nine Months Ended September 30, 2024 (in millions of U.S. dollars) Term Life Whole Life A&H Other Total Balance – beginning of period $ 1,590 $ 3,950 $ 10,432 $ 64 $ 16,036 Beginning balance at original discount rate 1,992 3,945 10,692 64 16,693 Effect of changes in cash flow assumptions ( 140 ) 160 394 ( 4 ) 410 Effect of actual variances from expected experience 6 9 ( 126 ) ( 1 ) ( 112 ) Adjusted beginning of period balance 1,858 4,114 10,960 59 16,991 Issuances 161 942 1,717 53 2,873 Interest accrual 45 91 424 3 563 Net premiums collected (1) ( 183 ) ( 852 ) ( 1,105 ) ( 27 ) ( 2,167 ) Other (including foreign exchange) ( 10 ) 14 ( 158 ) 14 ( 140 ) Ending balance at original discount rate 1,871 4,309 11,838 102 18,120 Effect of changes in discount rate assumptions ( 287 ) 94 136 1 ( 56 ) Balance – end of period $ 1,584 $ 4,403 $ 11,974 $ 103 $ 18,064 (1) Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit. 26 Table of Contents 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. dollars) Term Life Whole Life A&H Other Total Balance – beginning of period $ 2,254 $ 10,063 $ 14,650 $ 495 $ 27,462 Beginning balance at original discount rate 2,749 9,991 15,071 492 28,303 Effect of changes in cash flow assumptions ( 137 ) 181 348 ( 5 ) 387 Effect of actual variances from expected experience 13 21 ( 127 ) — ( 93 ) Adjusted beginning of period balance 2,625 10,193 15,292 487 28,597 Issuances 161 942 1,717 53 2,873 Interest accrual 59 240 519 11 829 Benefits payments ( 173 ) ( 260 ) ( 1,186 ) ( 14 ) ( 1,633 ) Other (including foreign exchange) 27 55 ( 188 ) 41 ( 65 ) Ending balance at original discount rate 2,699 11,170 16,154 578 30,601 Effect of changes in discount rate assumptions ( 390 ) 739 65 41 455 Balance – end of period $ 2,309 $ 11,909 $ 16,219 $ 619 $ 31,056 Liability for Future Policy Benefits, Life Insurance Segment September 30, 2024 (in millions of U.S. dollars) Term Life Whole Life A&H Other Total Net liability for future policy benefits $ 725 $ 7,506 $ 4,245 $ 516 $ 12,992 Deferred profit liability 276 1,120 194 32 1,622 Net liability for future policy benefits, before reinsurance recoverable 1,001 8,626 4,439 548 14,614 Less: Reinsurance recoverable on future policy benefits 109 45 112 — 266 Net liability for future policy benefits, after reinsurance recoverable $ 892 $ 8,581 $ 4,327 $ 548 $ 14,348 Weighted average duration (years) 10.2 27.8 9.8 17.6 21.1 27 Table of Contents 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. dollars) Term Life Whole Life A&H Other Total Balance – beginning of period $ 1,806 $ 2,308 $ 10,711 $ 42 $ 14,867 Beginning balance at original discount rate 1,867 2,361 11,258 43 15,529 Effect of changes in cash flow assumptions 36 40 ( 813 ) 2 ( 735 ) Effect of actual variances from expected experience ( 15 ) 77 ( 170 ) ( 1 ) ( 109 ) 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 Interest accrual 45 62 421 1 529 Net premiums collected (1) ( 127 ) ( 376 ) ( 998 ) ( 15 ) ( 1,516 ) Other (including foreign exchange) 78 ( 72 ) ( 592 ) ( 1 ) ( 587 ) Ending balance at original discount rate 1,977 4,005 10,277 46 16,305 Effect of changes in discount rate assumptions ( 69 ) ( 62 ) ( 496 ) ( 1 ) ( 628 ) Balance – end of period $ 1,908 $ 3,943 $ 9,781 $ 45 $ 15,677 (1) Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit. Present Value of Expected Future Policy Benefits Nine Months Ended September 30, 2023 (in millions of U.S. dollars) Term Life Whole Life A&H Other Total Balance – beginning of period $ 2,321 $ 5,696 $ 15,038 $ 269 $ 23,324 Beginning balance at original discount rate 2,447 5,874 15,855 280 24,456 Effect of changes in cash flow assumptions 32 44 ( 849 ) 3 ( 770 ) Effect of actual variances from expected experience ( 12 ) 86 ( 168 ) ( 1 ) ( 95 ) 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 Interest accrual 54 176 514 6 750 Benefit payments ( 120 ) ( 212 ) ( 1,064 ) ( 9 ) ( 1,405 ) Other (including foreign exchange) 227 30 ( 1,062 ) 154 ( 651 ) Ending balance at original discount rate 2,735 9,880 14,415 671 27,701 Effect of changes in discount rate assumptions ( 149 ) ( 274 ) ( 790 ) ( 11 ) ( 1,224 ) Balance – end of period $ 2,586 $ 9,606 $ 13,625 $ 660 $ 26,477 28 Table of Contents 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. dollars) Term Life Whole Life A&H Other Total Net liability for future policy benefits $ 678 $ 5,663 $ 3,844 $ 615 $ 10,800 Deferred profit liability 244 709 156 14 1,123 Net liability for future policy benefits, before reinsurance recoverable 922 6,372 4,000 629 11,923 Less: Reinsurance recoverable on future policy benefits 111 47 103 21 282 Net liability for future policy benefits, after reinsurance recoverable $ 811 $ 6,325 $ 3,897 $ 608 $ 11,641 Weighted average duration (years) 10.2 26.5 10.3 15.1 19.6 The following table presents a reconciliation of the roll-forwards above to the Future policy benefits liability presented in the Consolidated balance sheets. September 30 (in millions of U.S. dollars) 2024 2023 Net liability for future policy benefits, Life Insurance segment $ 12,992 $ 10,800 Other (1) 1,389 1,186 Deferred profit liability 1,622 1,123 Liability for future policy benefits, per consolidated balance sheet $ 16,003 $ 13,109 (1) Other business principally comprises certain Overseas General Insurance accident and health (A&H) policies and certain Chubb Life Re business. 29 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 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: September 30 September 30 (in millions of U.S. dollars) 2024 2023 Term Life Undiscounted expected future benefit payments $ 4,188 $ 4,043 Undiscounted expected future gross premiums 6,669 6,588 Discounted expected future benefit payments 2,309 2,586 Discounted expected future gross premiums 4,504 3,741 Whole Life Undiscounted expected future benefit payments 28,111 23,454 Undiscounted expected future gross premiums 10,363 9,478 Discounted expected future benefit payments 11,909 9,606 Discounted expected future gross premiums 8,404 7,654 A&H Undiscounted expected future benefit payments 27,423 23,914 Undiscounted expected future gross premiums 40,183 35,029 Discounted expected future benefit payments 16,219 13,625 Discounted expected future gross premiums 23,655 21,241 Other Undiscounted expected future benefit payments 1,046 774 Undiscounted expected future gross premiums 200 104 Discounted expected future benefit payments 619 660 Discounted expected future gross premiums $ 177 $ 92 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 Nine Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Life Insurance Term Life $ 509 $ 484 $ 14 $ 9 Whole Life 1,504 864 149 114 A&H 2,250 2,182 95 93 Other 42 28 8 5 Total $ 4,305 $ 3,558 $ 266 $ 221 30 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following table presents the weighted-average interest rates for the Life Insurance segment: Interest Accretion Rate Current Discount Rate September 30 September 30 2024 2023 2024 2023 Life Insurance Term Life 3.0 % 2.9 % 5.2 % 6.0 % Whole Life 3.2 % 3.2 % 4.1 % 4.7 % A&H 3.8 % 3.7 % 5.8 % 6.7 % Other 2.7 % 2.6 % 3.8 % 4.3 % 10. Policyholders' account balances, Separate accounts, and Unearned revenue liabilities Policyholders' account balances The following tables present a roll-forward of policyholders' account balances: Nine Months Ended September 30, 2024 (in millions of U.S. dollars) Universal Life Annuities (2) Other (3) Total Balance – beginning of period $ 1,876 $ 2,411 $ 2,502 $ 6,789 Premiums received 204 294 320 818 Policy charges (1) ( 98 ) — ( 7 ) ( 105 ) Surrenders and withdrawals ( 95 ) ( 30 ) ( 202 ) ( 327 ) Benefit payments (4) ( 59 ) ( 116 ) ( 40 ) ( 215 ) Interest credited 38 29 41 108 Other (including foreign exchange) 3 20 ( 223 ) ( 200 ) Balance – end of period $ 1,869 $ 2,608 $ 2,391 $ 6,868 Unearned revenue liability 712 Other 556 Policyholders' account liability, per consolidated balance sheet $ 8,136 (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. (4) Includes benefit payments upon maturity as well as death benefits. 31 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Nine Months Ended September 30, 2023 (in millions of U.S. dollars) Universal Life Annuities (2) Other (3) Total 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 Policy charges (1) ( 96 ) — ( 8 ) ( 104 ) Surrenders and withdrawals ( 62 ) ( 8 ) ( 113 ) ( 183 ) Benefit payments (4) ( 6 ) ( 38 ) ( 43 ) ( 87 ) Interest credited 30 16 22 68 Other (including foreign exchange) ( 56 ) ( 34 ) ( 35 ) ( 125 ) Balance – end of period $ 1,785 $ 2,340 $ 2,449 $ 6,574 Unearned revenue liability 604 Policyholders' account liability, per consolidated balance sheet $ 7,178 (1) Contracts included in the policyholder account balances are generally charged a premium and/or monthly assessments on the basis of the account balance. (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. (4) Includes benefit payments upon maturity as well as death benefits. September 30 2024 2023 (in millions of U.S. 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 % Net amount at risk (1) $ 12,648 $ — $ 440 $ 11,705 $ — $ 576 Cash Surrender Value $ 1,699 $ 1,691 $ 2,091 $ 1,573 $ 1,474 $ 2,173 (1) For those guarantees of benefits that are payable in the event of death, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The following tables present the balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimum: Universal Life September 30, 2024 (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 Up to 2.00 % $ 464 $ — $ 47 $ 92 $ 603 2.01 % – 4.00 % 249 371 633 — 1,253 Greater than 4.00 % 13 — — — 13 Total $ 726 $ 371 $ 680 $ 92 $ 1,869 32 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) 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 Up to 2.00 % $ 421 $ — $ 30 $ 11 $ 462 2.01 % – 4.00 % 80 330 559 333 1,302 Greater than 4.00 % 21 — — — 21 Total $ 522 $ 330 $ 589 $ 344 $ 1,785 Annuities September 30, 2024 (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 Up to 2.00 % $ 72 $ — $ 1,645 $ 47 $ 1,764 2.01 % – 4.00 % 844 — — — 844 Greater than 4.00 % — — — — — Total $ 916 $ — $ 1,645 $ 47 $ 2,608 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 Up to 2.00 % $ 693 $ — $ 1,543 $ — $ 2,236 2.01 % – 4.00 % 104 — — — 104 Greater than 4.00 % — — — — — Total $ 797 $ — $ 1,543 $ — $ 2,340 Other policyholders' account balances September 30, 2024 (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 Up to 2.00 % $ 349 $ 2 $ 214 $ 459 $ 1,024 2.01 % – 4.00 % 1,317 50 — — 1,367 Greater than 4.00 % — — — — — Total $ 1,666 $ 52 $ 214 $ 459 $ 2,391 33 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) 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 Up to 2.00 % $ 738 $ — $ 230 $ 545 $ 1,513 2.01 % – 4.00 % 373 531 27 — 931 Greater than 4.00 % 5 — — — 5 Total $ 1,116 $ 531 $ 257 $ 545 $ 2,449 Separate accounts Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. The assets that support variable contracts are measured at fair value and are reported as Separate account assets and corresponding liabilities are reported within Separate account liabilities on the Consolidated balance sheets. Policy charges assessed against the policyholders for mortality, administration, and other services are included in Net premiums earned on the Consolidated statements of operations. The following table presents the aggregate fair value of Separate account assets, by major security type: September 30 September 30 (in millions of U.S. dollars) 2024 2023 Cash and cash equivalents $ 75 $ 88 Mutual funds 5,844 5,129 Fixed maturities 77 89 Total $ 5,996 $ 5,306 The following table presents a roll-forward of separate account liabilities: Nine Months Ended September 30 (in millions of U.S. dollars) 2024 2023 Balance – beginning of period $ 5,573 $ 5,190 Premiums and deposits 945 724 Policy charges ( 118 ) ( 103 ) Surrenders and withdrawals ( 666 ) ( 407 ) Benefit payments ( 320 ) ( 291 ) Investment performance 625 382 Other (including foreign exchange) ( 43 ) ( 189 ) Balance – end of period $ 5,996 $ 5,306 Cash surrender value (1) $ 5,790 $ 5,285 (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 Unearned revenue liabilities represent policy charges for services to be provided in future periods. The charges are reflected as deferred revenue and are generally amortized over the expected life of the contract using the same methodology, factors, and assumptions used to amortize deferred acquisition costs. Unearned revenue liabilities pertaining to both policyholders' account 34 Table of Contents 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: Nine Months Ended September 30 (in millions of U.S. dollars) 2024 2023 Balance – beginning of period $ 673 $ 567 Deferred revenue 106 96 Amortization ( 54 ) ( 44 ) Other (including foreign exchange) ( 13 ) ( 15 ) Balance – end of period $ 712 $ 604 35 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 11. Market risk benefits Our reinsurance programs covering variable annuity guarantees, comprising guaranteed living benefits (GLB) and guaranteed minimum death benefits (GMDB), meet the definition of Market risk benefits (MRB). The following table presents a roll-forward of MRB: Nine Months Ended September 30 (in millions of U.S. dollars) 2024 2023 Balance – beginning of period $ 771 $ 800 Balance, beginning of period, before effect of changes in the instrument-specific credit risk 749 776 Interest rate changes 10 ( 117 ) Effect of changes in equity markets ( 147 ) ( 69 ) Effect of changes in volatilities 9 51 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 Balance, end of period, before effect of changes in the instrument-specific credit risk $ 729 $ 749 Effect of changes in the instrument-specific credit risk 19 21 Balance – end of period $ 748 $ 770 Weighted-average age of policyholders (years) 74 73 Net amount at risk (1) $ 1,595 $ 2,138 (1) The net amount at risk is defined as the present value of future claim payments assuming policy account values and guaranteed values are fixed at the valuation date, and reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty. No withdrawals, lapses, and mortality improvements are assumed in the projection. GLB-related risks contain conservative mortality and annuitization assumptions. Excluded from the table above are MRB 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 September 30, 2024 September 30, 2023 Ranges Weighted Average (1) Ranges Weighted Average (1) MRB (1) Actuarial model Lapse rate 0.5 % – 27.3 % 3.4 % 0.5 % – 30 % 4.0 % Annuitization rate 0 % – 100 % 4.6 % 0 % – 100 % 4.8 % (1) The weighted-average lapse and annuitization rates are determined by weighting each treaty's rates by the MRB contract's fair value. 36 Table of Contents 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. Assumptions regarding lapse rates and GLB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable. A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease. The GLB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GLB. All else equal, as GLB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits. The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established by blending the experience with data received from other ceding companies. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. 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. 12. Debt 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. 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. 13. Commitments, contingencies, and guarantees a) Derivative instruments Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. Chubb also maintains positions in convertible securities that contain embedded derivatives, and exchange-traded equity futures contracts on equity market indices to limit equity exposure in the market risk benefit (MRB) book of business. 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. In addition, Chubb, from time to time, purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities. As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities, and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. Some of Chubb's derivatives satisfy hedge accounting requirements, as discussed below. We also consider economic hedging for planned cross border transactions. 37 Table of Contents 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 Consolidated Balance Sheet Location Fair Value Notional Value/ Payment Provision Fair Value Notional Value/ Payment Provision (in millions of U.S. dollars) Derivative Asset Derivative (Liability) Derivative Asset Derivative (Liability) Investment and embedded derivatives not designated as hedging instruments: Foreign currency forward contracts OA / (AP) $ 38 $ ( 125 ) $ 4,399 $ 27 $ ( 94 ) $ 3,662 Options/Futures contracts on notes and bonds OA / (AP) 4 ( 2 ) 1,602 27 ( 42 ) 2,062 Convertible securities (1) FM AFS / ES 61 — 65 56 — 64 $ 103 $ ( 127 ) $ 6,066 $ 110 $ ( 136 ) $ 5,788 Other derivative instruments: Futures contracts on equities (2) OA / (AP) $ — $ ( 25 ) $ 967 $ — $ ( 37 ) $ 1,157 Other OA / (AP) — ( 5 ) 355 — ( 5 ) 217 $ — $ ( 30 ) $ 1,322 $ — $ ( 42 ) $ 1,374 Derivatives designated as hedging instruments: Cross-currency swaps - fair value hedges OA / (AP) $ 130 $ — $ 1,652 $ 126 $ — $ 1,631 Cross-currency swaps - net investment hedges OA / (AP) 20 ( 174 ) 2,969 10 ( 128 ) 1,619 $ 150 $ ( 174 ) $ 4,621 $ 136 $ ( 128 ) $ 3,250 (1) Includes fair value of embedded derivatives. (2) Related to MRB book of business. 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. b) Hedge accounting We designate certain derivatives as fair value hedges and net investment hedges for accounting purposes to hedge for foreign currency exposure associated with portions of our euro denominated debt and the net investment in certain foreign subsidiaries, respectively. These derivatives comprise cross-currency swaps, which are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date. These hedges have been and are expected to be highly effective. (i) Cross-currency swaps - fair value hedges 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 $ 1.7 billion at September 30, 2024, of euro denominated debt by converting cash flows back into the U.S. dollar. 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: 38 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Three Months Ended Nine Months Ended September 30 September 30 (pre-tax, in millions of U.S. dollars) 2024 2023 2024 2023 Gain (loss) recognized in OCI $ 42 $ ( 17 ) $ ( 12 ) $ 23 Net realized gain (loss) reclassified from OCI 63 ( 51 ) 14 ( 20 ) Interest expense reclassified from OCI ( 3 ) ( 4 ) ( 11 ) ( 12 ) OCI gain (loss) after reclassifications $ ( 18 ) $ 38 $ ( 15 ) $ 55 (ii) Cross-currency swaps - net investment hedges Chubb holds certain cross-currency swaps designated as net investment hedges. The objective of these cross-currency swaps is to hedge the foreign currency exposure in the net investments of certain foreign subsidiaries by converting cash flows from U.S. 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. The mark-to-market adjustments for foreign currency changes will remain until the underlying hedge subsidiary is deconsolidated or if hedge accounting is discontinued. These net investment hedges are carried at fair value, with changes in fair value recorded in Cumulative translation adjustments (CTA) within OCI, and a portion is reclassified to Interest expense as follows: Three Months Ended Nine Months Ended September 30 September 30 (pre-tax, in millions of U.S. dollars) 2024 2023 2024 2023 Gain (loss) recognized in OCI $ ( 98 ) $ ( 20 ) $ ( 25 ) $ ( 8 ) Interest income reclassified from OCI 5 3 11 10 OCI gain (loss) after reclassifications $ ( 103 ) $ ( 23 ) $ ( 36 ) $ ( 18 ) 39 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries c) Derivative instruments not designated as hedges Derivative instruments which are not designated as hedges are carried at fair value with changes in fair value recorded in Net realized gains (losses) or, for futures contracts on equities, related to the MRB book of business, in Market risk benefits gains (losses) in the Consolidated statements of operations. The following table presents net gains (losses) related to derivative instrument activity in the Consolidated statements of operations: Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Investment and embedded derivative instruments: Foreign currency forward contracts $ 52 $ ( 17 ) $ ( 28 ) $ ( 95 ) All other futures contracts, options, and equities 12 29 30 5 Convertible securities (1) 2 ( 3 ) 4 ( 2 ) Total investment and embedded derivative instruments $ 66 $ 9 $ 6 $ ( 92 ) Other derivative instruments: Futures contracts on equities (2) $ ( 41 ) $ 52 $ ( 157 ) $ ( 80 ) Other ( 2 ) ( 7 ) ( 7 ) ( 6 ) Total other derivative instruments $ ( 43 ) $ 45 $ ( 164 ) $ ( 86 ) $ 23 $ 54 $ ( 158 ) $ ( 178 ) (1) Includes embedded derivatives. (2) Related to MRB book of business. (i) Foreign currency exposure management A foreign currency forward contract (forward) is an agreement between participants to exchange specific currencies at a future date. Chubb uses forwards to minimize the effect of fluctuating foreign currencies as discussed above. (ii) Duration management and market exposure Futures Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds, and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed. Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in market risk benefit reserves. Options An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in our investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above. The price of an option is influenced by the underlying security, level of interest rates, expected volatility, time to expiration, and supply and demand. The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by 40 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines. Other Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business. The economic benefit provided by these derivatives is similar to purchased reinsurance. For example, Chubb may, from time to time, enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices. (iii) Convertible security investments A convertible security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available-for-sale or as an equity security. Chubb purchases convertible securities for their total return and not specifically for the conversion feature. (iv) TBA 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. Chubb purchases TBAs, from time to time, both for their total return and for the flexibility they provide related to our mortgage-backed security strategy. (v) Futures contracts on equities Under the MRB program, as the assuming entity, Chubb is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. We may recognize a loss for changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining U.S. and/or international equity markets). To mitigate adverse changes in the capital markets, we maintain positions in exchange-traded equity futures contracts, as noted under section "(ii) Futures" above. These futures increase in fair value when the S&P 500 index decreases (and decrease in fair value when the S&P 500 index increases). The net impact of gains or losses related to changes in fair value of the MRB liability and the exchange-traded equity futures are included in Market risk benefits gains (losses) in the Consolidated statements of operations. d) Securities lending and secured borrowings Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the Consolidated balance sheets. The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements: Remaining contractual maturity September 30, 2024 December 31, 2023 (in millions of U.S. dollars) Overnight and Continuous Collateral held under securities lending agreements: Cash $ 784 $ 555 U.S. Treasury / Agency 361 33 Non-U.S. 680 621 Corporate and asset-backed securities 64 57 Municipal 3 6 Equity securities 35 27 $ 1,927 $ 1,299 Gross amount of recognized liability for securities lending payable $ 1,927 $ 1,299 41 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 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. The fair value of the underlying securities sold remains in Fixed maturities available-for-sale or Other investments, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets. The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements: Remaining contractual maturity September 30, 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 (in millions of U.S. dollars) Collateral pledged under repurchase agreements: Cash $ — $ — $ — $ — $ — $ 33 $ 1 $ 34 Non-U.S. 1,768 — — 1,768 1,355 — — 1,355 U.S. Treasury / Agency — 100 — 100 — 105 — 105 Mortgage-backed securities 469 459 477 1,405 — 913 517 1,430 $ 2,237 $ 559 $ 477 $ 3,273 $ 1,355 $ 1,051 $ 518 $ 2,924 Gross amount of recognized liabilities for repurchase agreements $ 3,048 $ 2,833 Difference (1) $ 225 $ 91 (1) Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability. Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction. e) Fixed maturities 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 $ 14.2 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. At December 31, 2023, these investments had a carrying value of $ 13.9 billion with commitments that could have required funding of up to $ 6.2 billion. g) Income taxes At September 30, 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. With few exceptions, Chubb is no longer subject to income tax examinations for years before 2012 . h) Legal proceedings Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of 42 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations. i) Lease commitments At 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. 14. Shareholders’ equity All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing the Consolidated Financial Statements. 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. dollars. 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. 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 Nine Months Ended September 30 September 30 2024 2023 2024 2023 CHF USD CHF USD CHF USD CHF USD Total dividend distributions per common share 0.78 $ 0.91 0.75 $ 0.86 2.35 $ 2.68 2.29 $ 2.55 Increases in Common Shares in treasury are due to open market repurchases of Common Shares and the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock and the forfeiture of unvested restricted stock. Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, purchases under the Employee Stock Purchase Plan (ESPP), and share cancellations. At our May 2023 annual general meeting, held on May 17, 2023, our shareholders approved the cancellation of 14,925,028 shares purchased under our share repurchase programs during 2022. The capital reduction was subject to publication requirements and became effective in accordance with Swiss law on May 22, 2023. 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 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. 43 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Chubb Limited securities repurchase authorizations The Board has authorized share repurchase programs as follows: • $ 2.5 billion of Chubb Common Shares from May 19, 2022 through June 30, 2023; and • $ 5.0 billion of Chubb Common Shares effective July 1, 2023 with no expiration date. The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations: Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars, except share data) 2024 2023 2024 2023 Number of shares repurchased 1,441,607 2,949,900 4,915,964 8,634,600 Cost of shares repurchased $ 413 $ 606 $ 1,299 $ 1,758 Repurchase authorization remaining at end of period $ 2,400 $ 4,398 $ 2,400 $ 4,398 The following table presents changes in accumulated other comprehensive income (loss): Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Accumulated other comprehensive income (loss) (AOCI) Net unrealized appreciation (depreciation) on investments Balance – beginning of period, net of tax $ ( 5,301 ) $ ( 6,809 ) $ ( 4,177 ) $ ( 7,279 ) Change in period, before reclassification from AOCI (before tax) 3,419 ( 2,240 ) 2,139 ( 1,935 ) Amounts reclassified from AOCI (before tax) 40 70 154 357 Change in period, before tax 3,459 ( 2,170 ) 2,293 ( 1,578 ) Income tax (expense) benefit ( 198 ) 29 ( 149 ) ( 93 ) Total other comprehensive income (loss) 3,261 ( 2,141 ) 2,144 ( 1,671 ) Noncontrolling interests, net of tax 2 3 9 3 Balance – end of period, net of tax ( 2,042 ) ( 8,953 ) ( 2,042 ) ( 8,953 ) Current discount rate on liability for future policy benefits Balance – beginning of period, net of tax 66 ( 247 ) 51 ( 75 ) Change in period, before tax ( 672 ) 683 ( 672 ) 497 Income tax (expense) benefit 36 ( 35 ) 14 ( 21 ) Total other comprehensive income (loss) ( 636 ) 648 ( 658 ) 476 Noncontrolling interests, net of tax ( 43 ) ( 3 ) ( 80 ) ( 3 ) Balance – end of period, net of tax ( 527 ) 404 ( 527 ) 404 Instrument-specific credit risk on market risk benefits Balance – beginning of period, net of tax ( 13 ) ( 16 ) ( 22 ) ( 24 ) Change in period, before tax ( 8 ) ( 5 ) 2 3 Income tax benefit 1 — — — Total other comprehensive income (loss) ( 7 ) ( 5 ) 2 3 Noncontrolling interests, net of tax — — — — Balance – end of period, net of tax ( 20 ) ( 21 ) ( 20 ) ( 21 ) 44 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Accumulated other comprehensive income (loss) (AOCI) - continued Cumulative foreign currency translation adjustment Balance – beginning of period, net of tax ( 3,342 ) ( 2,920 ) ( 2,945 ) ( 2,966 ) Change in period, before reclassification from AOCI (before tax) 450 ( 314 ) 6 ( 269 ) Amounts reclassified from AOCI (before tax) ( 5 ) ( 3 ) ( 11 ) ( 10 ) Change in period, before tax 445 ( 317 ) ( 5 ) ( 279 ) Income tax benefit 7 13 19 21 Total other comprehensive income (loss) 452 ( 304 ) 14 ( 258 ) Noncontrolling interests, net of tax 62 ( 76 ) 21 ( 76 ) Balance – end of period, net of tax ( 2,952 ) ( 3,148 ) ( 2,952 ) ( 3,148 ) Fair value hedging instruments Balance – beginning of period, net of tax ( 11 ) ( 53 ) ( 13 ) ( 66 ) Change in period, before reclassification from AOCI (before tax) 42 ( 17 ) ( 12 ) 23 Amounts reclassified from AOCI (before tax) ( 60 ) 55 ( 3 ) 32 Change in period, before tax ( 18 ) 38 ( 15 ) 55 Income tax (expense) benefit 4 ( 7 ) 3 ( 11 ) Total other comprehensive income (loss) ( 14 ) 31 ( 12 ) 44 Noncontrolling interests, net of tax — — — — Balance – end of period, net of tax ( 25 ) ( 22 ) ( 25 ) ( 22 ) Postretirement benefit liability adjustment Balance – beginning of period, net of tax 297 223 297 225 Change in period, before tax ( 1 ) ( 1 ) ( 2 ) ( 3 ) Income tax benefit — — 1 — Total other comprehensive loss ( 1 ) ( 1 ) ( 1 ) ( 3 ) Noncontrolling interests, net of tax — — — — Balance – end of period, net of tax 296 222 296 222 Accumulated other comprehensive loss $ ( 5,270 ) $ ( 11,518 ) $ ( 5,270 ) $ ( 11,518 ) 45 Table of Contents 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 Nine Months Ended Consolidated Statement of Operations Location September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Fixed maturities available-for-sale $ ( 40 ) $ ( 70 ) $ ( 154 ) $ ( 357 ) Net realized gains (losses) Income tax benefit 17 25 41 59 Income tax expense $ ( 23 ) $ ( 45 ) $ ( 113 ) $ ( 298 ) Net income Cumulative foreign currency translation adjustment Cross-currency swaps $ 5 $ 3 $ 11 $ 10 Interest expense Income tax expense ( 1 ) ( 1 ) ( 2 ) ( 2 ) Income tax expense $ 4 $ 2 $ 9 $ 8 Net income Net gains (losses) of fair value hedging instruments Cross-currency swaps $ 63 $ ( 51 ) $ 14 $ ( 20 ) Net realized gains (losses) Cross-currency swaps ( 3 ) ( 4 ) ( 11 ) ( 12 ) Interest expense Income tax (expense) benefit ( 12 ) 12 — 7 Income tax expense $ 48 $ ( 43 ) $ 3 $ ( 25 ) Net income Total amounts reclassified from AOCI $ 29 $ ( 86 ) $ ( 101 ) $ ( 315 ) 15. Share-based compensation The Chubb Limited 2016 Long-Term Incentive Plan, as amended and restated (the Amended 2016 LTIP), permits grants of both incentive and non-qualified stock options principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3 -year vesting period and a 10 -year term. Stock options typically vest in equal annual installments over the respective vesting period, which is also the requisite service period. On February 26, 2024, Chubb granted 1,359,237 stock options with a weighted-average grant date fair value of $ 64.15 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model. The Amended 2016 LTIP also permits grants of service-based restricted stock and restricted stock units as well as performance shares and performance stock units. Under the Chubb Deferred Stock Unit Plan, a sub-plan of the Amended 2016 LTIP, eligible participants may defer vested performance stock units and restricted stock units to the extent such awards are U.S.-allocated compensation. Chubb generally grants service-based restricted stock and restricted stock units with a 4 -year vesting period, based on a graded vesting schedule. Performance shares and performance stock units granted comprise both target and premium awards that cliff vest at the end of a 3 -year performance period based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies. Premium awards are subject to an additional vesting provision based on total shareholder return compared to the peer group. Stock and unit awards are principally granted at market close price on the grant date. On February 26, 2024, Chubb granted 685,665 service-based restricted stock, 290,085 service-based restricted stock units, 101,514 performance shares, and 284,013 performance stock units to employees and officers with a grant date fair value of $ 254.84 each. Each service-based restricted stock unit and performance stock unit represents our obligation to deliver to the holder one Common Share upon vesting (or the end of the deferral period, if the unit is under the Chubb Deferred Stock Unit Plan). 46 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 16. Postretirement benefits The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows: Pension Benefit Plans Other Postretirement Benefit Plans 2024 2023 2024 2023 Three Months Ended September 30 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions of U.S. dollars) Service cost $ — $ 2 $ — $ 2 $ — $ — Non-service cost (benefit): Interest cost 33 9 35 9 — 1 Expected return on plan assets ( 61 ) ( 13 ) ( 56 ) ( 13 ) — — Amortization of net actuarial (gain) loss — — — — ( 1 ) ( 1 ) Amortization of prior service cost — — — — — ( 1 ) Settlements 1 — 3 — — — Total non-service cost (benefit) ( 27 ) ( 4 ) ( 18 ) ( 4 ) ( 1 ) ( 1 ) Net periodic benefit cost (benefit) $ ( 27 ) $ ( 2 ) $ ( 18 ) $ ( 2 ) $ ( 1 ) $ ( 1 ) Pension Benefit Plans Other Postretirement Benefit Plans 2024 2023 2024 2023 Nine Months Ended September 30 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions of U.S. dollars) Service cost: $ — $ 7 $ — $ 6 $ — $ — Non-service cost (benefit): Interest cost 100 27 103 27 1 2 Expected return on plan assets ( 183 ) ( 38 ) ( 168 ) ( 38 ) ( 2 ) ( 2 ) Amortization of net actuarial (gain) loss ( 1 ) 1 — — ( 2 ) ( 1 ) Amortization of prior service cost — — — — — ( 1 ) Settlements 1 — 3 — — — Total non-service cost (benefit) ( 83 ) ( 10 ) ( 62 ) ( 11 ) ( 3 ) ( 2 ) Net periodic benefit cost (benefit) $ ( 83 ) $ ( 3 ) $ ( 62 ) $ ( 5 ) $ ( 3 ) $ ( 2 ) 47 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The line items in which the service cost and non-service cost (benefit) components of net periodic cost (benefit) are included in the Consolidated statements of operations were as follows: Pension Benefit Plans Other Postretirement Benefit Plans Three Months Ended September 30 2024 2023 2024 2023 (in millions of U.S. dollars) Service cost: Losses and loss expenses $ — $ — $ — $ — Administrative expenses 2 2 — — Total service cost 2 2 — — Non-service cost (benefit): Losses and loss expenses ( 3 ) ( 1 ) — — Administrative expenses ( 28 ) ( 21 ) ( 1 ) ( 1 ) Total non-service cost (benefit) ( 31 ) ( 22 ) ( 1 ) ( 1 ) Net periodic benefit cost (benefit) $ ( 29 ) $ ( 20 ) $ ( 1 ) $ ( 1 ) Pension Benefit Plans Other Postretirement Benefit Plans Nine Months Ended September 30 2024 2023 2024 2023 (in millions of U.S. dollars) Service cost: Losses and loss expenses $ — $ — $ — $ — Administrative expenses 7 6 — — Total service cost 7 6 — — Non-service cost (benefit): Losses and loss expenses ( 9 ) ( 6 ) — — Administrative expenses ( 84 ) ( 67 ) ( 3 ) ( 2 ) Total non-service cost (benefit) ( 93 ) ( 73 ) ( 3 ) ( 2 ) Net periodic benefit cost (benefit) $ ( 86 ) $ ( 67 ) $ ( 3 ) $ ( 2 ) 17. Other income and expense Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Equity in net income (loss) of partially-owned entities $ 343 $ 150 $ 621 $ 610 Gains (losses) from fair value changes in separate account assets (1) ( 30 ) ( 19 ) ( 9 ) ( 56 ) Asset management and performance fee revenue 53 55 163 55 Asset management and performance fee expense ( 34 ) ( 33 ) ( 102 ) ( 33 ) Federal excise and capital taxes ( 7 ) ( 6 ) ( 16 ) ( 17 ) Other — 7 ( 31 ) ( 9 ) Total $ 325 $ 154 $ 626 $ 550 (1) Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account treatment under U.S. GAAP. 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 48 Table of Contents 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 $ 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. 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. GAAP. The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations. Asset management and performance fee revenue and expense primarily relate to the management of third-party assets by Huatai's asset management business, which is unrelated to Huatai Group's core insurance operations. These revenues and expenses are recognized in the period in which the services are performed and, for certain asset performance fees, to the extent it is probable that a significant reversal will not occur. Certain federal excise and capital taxes incurred as a result of capital management initiatives are included in Other income and expense as these are considered capital transactions and are excluded from underwriting results. Bad debt expense for uncollectible premiums is also included in Other income and expense. 18. Segment information Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insuran ce, Overseas General Insurance, Global Reinsurance, and Life Insurance. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediar ies. Effective July 1, 2023, the results of Huatai's life and asset management businesses, included within the Life Insurance segment, and the results of Huatai's P&C insurance business, included within Overseas General Insurance, are presented gross within Underwriting income (loss), Net investment income (loss), and Other income (expense) as required under consolidation accounting. Huatai's results prior to July 1, 2023 were included net within Other (income) expense based on our ownership interest as required under equity method accounting. Management uses Underwriting income (loss) as the basis for segment performance. Chubb calculates Underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. Segment income (loss) includes Underwriting income (loss), Net investment income (loss), and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable. Our main measure of segment performance is Segment income (loss), which also includes Amortization of purchased intangibles acquired by the segment. We determined that this definition of Segment income (loss) is appropriate and aligns with how the business is managed. 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, 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. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs, and therefore are excluded from our definition of Segment income (loss). Certain items are presented in a different manner for segment reporting purposes than in the Consolidated Financial Statements. These items are reconciled to the consolidated presentation in the Segment measure reclass column below and include: • Losses and loss expenses include realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore, realized gains (losses) from these derivatives are reclassified to losses and loss expenses. 49 Table of Contents 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. GAAP. These gains and losses have been reclassified from Other (income) expense. 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. The following tables present the Statement of Operations by segment: For the Three Months Ended September 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 $ 5,500 $ 1,679 $ 1,379 $ 3,367 $ 352 $ 1,552 $ — $ — $ 13,829 Net premiums earned 5,110 1,577 1,419 3,421 316 1,530 — — 13,373 Losses and loss expenses 3,391 879 1,193 1,631 200 32 58 ( 1 ) 7,383 Policy benefits — — — 120 — 989 — ( 10 ) 1,099 Policy acquisition costs 689 315 88 852 89 291 — — 2,324 Administrative expenses 338 88 2 340 9 213 104 — 1,094 Underwriting income (loss) 692 295 136 478 18 5 ( 162 ) 11 1,473 Net investment income 931 112 20 286 64 250 ( 28 ) ( 127 ) 1,508 Other (income) expense 6 1 1 5 — ( 39 ) ( 202 ) ( 97 ) ( 325 ) Amortization expense of purchased intangibles 2 3 5 21 — 10 40 — 81 Segment income (loss) $ 1,615 $ 403 $ 150 $ 738 $ 82 $ 284 $ ( 28 ) $ ( 19 ) $ 3,225 Net realized gains (losses) 179 19 198 Market risk benefits gains (losses) ( 230 ) — ( 230 ) Interest expense 192 — 192 Integration expenses 7 — 7 Income tax expense 504 — 504 Net income (loss) $ ( 782 ) $ — $ 2,490 Net income attributable to noncontrolling interests 166 — 166 Net income (loss) attributable to Chubb $ ( 948 ) $ — $ 2,324 50 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries For the Three Months Ended September 30, 2023 (in millions of U.S. dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Segment Measure Reclass Chubb Consolidated Net premiums written $ 5,132 $ 1,527 $ 1,521 $ 3,211 $ 261 $ 1,452 $ — $ — $ 13,104 Net premiums earned 4,735 1,407 1,540 3,311 239 1,442 — — 12,674 Losses and loss expenses 3,025 900 1,356 1,635 116 20 61 ( 7 ) 7,106 Policy benefits — — — 91 — 866 — ( 19 ) 938 Policy acquisition costs 640 287 76 827 69 279 — — 2,178 Administrative expenses 323 84 3 327 9 216 98 — 1,060 Underwriting income (loss) 747 136 105 431 45 61 ( 159 ) 26 1,392 Net investment income 780 94 12 248 47 211 14 ( 92 ) 1,314 Other (income) expense 6 2 — ( 10 ) — ( 28 ) ( 51 ) ( 73 ) ( 154 ) Amortization expense of purchased intangibles — 3 6 19 — 12 44 — 84 Segment income (loss) $ 1,521 $ 225 $ 111 $ 670 $ 92 $ 288 $ ( 138 ) $ 7 $ 2,776 Net realized gains (losses) ( 96 ) ( 7 ) ( 103 ) Market risk benefits gains (losses) ( 32 ) — ( 32 ) Interest expense 174 — 174 Integration expenses 14 — 14 Income tax expense 413 — 413 Net income (loss) $ ( 867 ) $ — $ 2,040 Net loss attributable to noncontrolling interests ( 3 ) — ( 3 ) Net income (loss) attributable to Chubb $ ( 864 ) $ — $ 2,043 51 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries For the Nine Months Ended September 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 $ 15,690 $ 4,911 $ 2,386 $ 10,536 $ 1,122 $ 4,765 $ — $ — $ 39,410 Net premiums earned 14,890 4,560 2,173 9,966 950 4,709 — — 37,248 Losses and loss expenses 9,640 2,654 1,785 4,728 492 86 161 ( 5 ) 19,541 Policy benefits — — — 312 — 3,090 — 96 3,498 Policy acquisition costs 2,037 914 154 2,517 250 885 — — 6,757 Administrative expenses 993 262 7 1,019 29 638 310 — 3,258 Underwriting income (loss) 2,220 730 227 1,390 179 10 ( 471 ) ( 91 ) 4,194 Net investment income 2,620 322 62 836 179 738 ( 86 ) ( 304 ) 4,367 Other (income) expense 28 — 1 14 — ( 111 ) ( 263 ) ( 295 ) ( 626 ) Amortization expense of purchased intangibles 2 7 18 61 — 31 122 — 241 Segment income (loss) $ 4,810 $ 1,045 $ 270 $ 2,151 $ 358 $ 828 $ ( 416 ) $ ( 100 ) $ 8,946 Net realized gains (losses) 101 100 201 Market risk benefits gains (losses) ( 238 ) — ( 238 ) Interest expense 552 — 552 Integration expenses 21 — 21 Income tax expense 1,336 — 1,336 Net income (loss) $ ( 2,462 ) $ — $ 7,000 Net income attributable to noncontrolling interests 303 — 303 Net income (loss) attributable to Chubb $ ( 2,765 ) $ — $ 6,697 52 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries For the Nine Months Ended September 30, 2023 (in millions of U.S. dollars) North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Life Insurance Corporate Segment Measure Reclass Chubb Consolidated Net premiums written $ 14,575 $ 4,404 $ 2,581 $ 9,359 $ 831 $ 4,015 $ — $ — $ 35,765 Net premiums earned 13,710 4,084 2,334 9,005 720 3,962 — — 33,815 Losses and loss expenses 8,625 2,634 2,003 4,139 319 87 133 ( 3 ) 17,937 Policy benefits — — — 338 — 2,283 — ( 56 ) 2,565 Policy acquisition costs 1,867 836 128 2,286 196 829 — — 6,142 Administrative expenses 934 247 9 899 27 553 290 — 2,959 Underwriting income (loss) 2,284 367 194 1,343 178 210 ( 423 ) 59 4,212 Net investment income 2,204 262 43 636 144 525 28 ( 276 ) 3,566 Other (income) expense 18 2 — ( 29 ) ( 1 ) ( 69 ) ( 251 ) ( 220 ) ( 550 ) Amortization expense of purchased intangibles — 8 19 52 — 18 129 — 226 Segment income (loss) $ 4,470 $ 619 $ 218 $ 1,956 $ 323 $ 786 $ ( 273 ) $ 3 $ 8,102 Net realized gains (losses) ( 481 ) ( 3 ) ( 484 ) Market risk benefits gains (losses) ( 154 ) — ( 154 ) Interest expense 499 — 499 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. 53 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 19. Earnings per share Three Months Ended Nine Months Ended September 30 September 30 (in millions of U.S. dollars, except share and per share data) 2024 2023 2024 2023 Numerator: Net income $ 2,490 $ 2,040 $ 7,000 $ 5,725 Net income (loss) attributable to noncontrolling interests 166 ( 3 ) 303 ( 3 ) Net income attributable to Chubb $ 2,324 $ 2,043 $ 6,697 $ 5,728 Denominator: Denominator for basic earnings per share attributable to Chubb: Weighted-average shares outstanding 403,831,412 409,505,454 404,700,118 412,076,470 Denominator for diluted earnings per share attributable to Chubb: Share-based compensation plans 4,047,315 3,100,505 4,191,655 3,288,940 Weighted-average shares outstanding and assumed conversions 407,878,727 412,605,959 408,891,773 415,365,410 Basic earnings per share attributable to Chubb $ 5.75 $ 4.99 $ 16.55 $ 13.90 Diluted earnings per share attributable to Chubb $ 5.70 $ 4.95 $ 16.38 $ 13.79 Potential anti-dilutive share conversions 1,330,590 2,562,206 1,080,371 2,330,821 Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods. These securities consisted of stock options in which the underlying exercise prices were greater than the average market prices of our Common Shares. Refer to Note 16 to the Consolidated Financial Statements of our 2023 Form 10-K for additional information on stock options. 54 Table of Contents