Chubb Ltd - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - Chubb Ltd	d28302dex991.htm
8-K - 8-K - Chubb Ltd	d28302d8k.htm

Exhibit 99.2

LOGO

Chubb Limited

Financial Supplement

for the Quarter and Year Ended December 31, 2020

Investor Contact

Karen Beyer: (212) 827-4445

email: investorrelations@chubb.com

This report is for informational purposes only. It should be read in conjunction with documents filed by Chubb Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this financial supplement reflect Chubb Limited’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from such statements. For example, forward-looking statements related to financial performance, including exposures, reserves and recoverables, could be affected by the frequency and severity of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, currency exchange fluctuations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.

Our forward-looking statements could also be affected by, among other things, competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war, and such other factors identified in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Chubb Limited

Financial Supplement Table of Contents


		Page
I.	Financial Highlights
	- Consolidated Financial Highlights		1

II.	Consolidated Results
	- Consolidated Statement of Operations		2
	- P&C Results—Consecutive Quarters		3
	- Global P&C Results—Consecutive Quarters		4
	- Summary Consolidated Balance Sheets		5
	- Line of Business		6
	- Consolidated Results by Segment		7 - 10

III.	Segment Results
	- North America Commercial P&C Insurance		11
	- North America Personal P&C Insurance		12
	- North America Agricultural Insurance		13
	- Overseas General Insurance		14
	- Global Reinsurance		15
	- Life Insurance		16
	- Corporate		17

IV.	Balance Sheet Details
	- Loss Reserve Rollforward		18
	- Reinsurance Recoverable Analysis		19
	- Investment Portfolio		20 - 23
	- Net Realized and Unrealized Gains (Losses)		24 - 25
	- Debt and Capital		26
	- Computation of Basic and Diluted Earnings Per Share		27
	- Book Value and Book Value per Common Share		28

V.	Other Disclosures
	- Non-GAAP Financial Measures		29 - 35
	- Glossary		36

Chubb Limited

Consolidated Financial Highlights

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.


	Three months ended December 31									Constant $			Constant $			Year ended December 31									Constant $		Constant $
	2020			2019			% Change			2019			% Change			2020			2019			% Change			2019		% Change
Gross premiums written	$	10,249		$	9,934			3.2	%	$	9,969			2.8	%	$	41,261		$	40,124			2.8	%	$	39,899		3.4	%
Net premiums written	$	8,410		$	7,997			5.2	%	$	8,018			4.9	%	$	33,820		$	32,275			4.8	%	$	32,072		5.5	%
P&C net premiums written	$	7,770		$	7,375			5.4	%	$	7,397			5.0	%	$	31,306		$	29,883			4.8	%	$	29,692		5.4	%
P&C net premiums written adjusted for COVID-19 exposures ⁽¹⁾																							5.5	%				6.1	%
Net premiums earned	$	8,430		$	7,935			6.2	%	$	7,959			5.9	%	$	33,117		$	31,290			5.8	%	$	31,104		6.5	%
Net investment income	$	847		$	858			-1.2	%	$	858			-1.3	%	$	3,375		$	3,426			-1.5	%	$	3,415		-1.2	%
Adjusted net investment income	$	924		$	917			0.9	%	$	917			0.8	%	$	3,606		$	3,673			-1.8	%	$	3,662		-1.5	%
P&C underwriting income	$	969		$	533			81.8	%	$	533			81.6	%	$	1,210		$	2,726			-55.6	%	$	2,704		-55.3	%
P&C CAY underwriting income ex Cats	$	1,059		$	730			45.0	%	$	732			44.7	%	$	4,074		$	3,121			30.5	%	$	3,101		31.4	%
Agriculture CAY underwriting income (loss) ex Cats	$	34		$	(59	)		NM		$	(59	)		NM		$	172		$	17			NM		$	17		NM
Core operating income	$	1,440		$	1,040			38.4	%	$	1,040			38.4	%	$	3,313		$	4,641			-28.6	%	$	4,615		-28.2	%
Net income	$	2,418		$	1,173			106.2	%							$	3,533		$	4,454			-20.7	%
Operating cash flow	$	2,544		$	1,429											$	9,785		$	6,342
P&C combined ratio
Loss and loss expense ratio		59.6	%		64.0	%											68.5	%		62.1	%
Policy acquisition cost and administrative expense ratio		28.0	%		28.7	%											27.6	%		28.5	%

Combined ratio		87.6	%		92.7	%											96.1	%		90.6	%
P&C Current Accident Year (CAY) combined ratio ex Catastrophe losses (Cats)
CAY loss and loss expense ratio ex Cats		58.5	%		61.3	%											59.2	%		60.8	%
CAY policy acquisition cost and administrative expense ratio ex Cats		27.9	%		28.7	%											27.5	%		28.4	%

CAY combined ratio ex Cats		86.4	%		90.0	%											86.7	%		89.2	%
Global P&C CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		57.0	%		58.1	%											57.6	%		58.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		29.1	%		30.5	%											28.9	%		30.0	%

CAY combined ratio ex Cats		86.1	%		88.6	%											86.5	%		88.6	%
ROE		16.7	%		8.5	%											6.2	%		8.4	%
Core operating return on equity (ROE)		10.7	%		7.9	%											6.2	%		9.0	%
Core operating return on tangible equity (ROTE)		17.1	%		12.8	%											9.8	%		14.6	%
Effective tax rate		12.1	%		12.6	%											15.1	%		15.1	%
Core operating effective tax rate		15.2	%		14.2	%											15.8	%		14.9	%
Earnings per share
Net income	$	5.34		$	2.57			107.8	%							$	7.79		$	9.71			-19.8	%
Core operating income	$	3.18		$	2.28			39.5	%							$	7.31		$	10.11			-27.7	%
Weighted average basic common shares outstanding		451.4			452.7												451.6			455.9
Weighted average diluted common shares outstanding		453.3			455.9												453.4			458.9

	December 31 2020			September 30 2020			% Change 4Q-20 vs. 3Q-20			December 31 2019			% Change 4Q-20 vs. 4Q-19
Book value per common share	$	131.88		$	124.98			5.5	%	$	122.42			7.7	%
Tangible book value per common share	$	87.69		$	81.11			8.1	%	$	78.14			12.2	%

(1)	Full year 2020 net premiums written were adversely impacted by COVID-19 including $184 million of exposure adjustments on in-force policies and $29 million of return premiums in North America Personal P&C Insurance.


Financial Highlights		Page 1

Chubb Limited

Statement of Operations—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Consolidated Statements of Operations


	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			Full Year 2020			Full Year 2019
Gross premiums written	$	10,249		$	11,220		$	10,040		$	9,752		$	9,934		$	41,261		$	40,124
Net premiums written		8,410			9,078			8,355			7,977			7,997			33,820			32,275
Net premiums earned		8,430			8,765			8,128			7,794			7,935			33,117			31,290
Adjusted losses and loss expenses ⁽¹⁾		4,810			5,834			6,578			4,487			4,865			21,709			18,738
Realized (gains) losses on crop derivatives		(3	)		(1	)		1			2			—			(1	)		8

Losses and loss expenses		4,813			5,835			6,577			4,485			4,865			21,710			18,730
Adjusted policy benefits ⁽²⁾		184			174			183			185			201			726			696
Gains (losses) from fair value changes in separate account liabilities		(50	)		(24	)		(40	)		56			(24	)		(58	)		(44	)

Policy benefits		234			198			223			129			225			784			740
Policy acquisition costs		1,694			1,645			1,593			1,615			1,542			6,547			6,153
Administrative expenses		778			733			727			741			810			2,979			3,030
Adjusted net investment income ⁽³⁾		924			900			865			917			917			3,606			3,673
Other (income) expense from private equity partnerships		(51	)		(32	)		(8	)		(24	)		(24	)		(115	)		(86	)
Amortization expense of fair value adjustment on acquired invested assets		(26	)		(28	)		(30	)		(32	)		(35	)		(116	)		(161	)

Net investment income		847			840			827			861			858			3,375			3,426
Adjusted realized gains (losses) ⁽⁴⁾		568			(142	)		31			(956	)		(55	)		(499	)		(522	)
Realized gains (losses) on crop derivatives		3			1			(1	)		(2	)		—			1			(8	)

Net realized gains (losses)		571			(141	)		30			(958	)		(55	)		(498	)		(530	)
Adjusted interest expense ⁽⁵⁾		131			135			134			137			140			537			573
Amortization benefit of fair value adjustment on acquired long term debt		(5	)		(5	)		(6	)		(5	)		(6	)		(21	)		(21	)

Interest expense		126			130			128			132			134			516			552
Gains (losses) from fair value changes in separate account assets		50			24			40			(56	)		24			58			44
Net realized gains (losses) related to unconsolidated entities		506			422			(100	)		(7	)		227			821			483
Other income (expense) from private equity partnerships		51			32			8			24			24			115			86
Other income (expense)—operating		15			7			(6	)		(16	)		(5	)		—			(17	)

Other income (expense)		622			485			(58	)		(55	)		270			994			596
Amortization expense of purchased intangibles		73			72			72			73			76			290			305
Chubb integration expenses		—			—			—			—			14			—			23
Income tax expense (benefit)		334			142			(62	)		215			169			629			795

Net income (loss)	$	2,418		$	1,194		$	(331	)	$	252		$	1,173		$	3,533		$	4,454

(1)	Adjusted losses and loss expenses used throughout this report includes realized gains and losses on crop derivatives.

(2)	Adjusted policy benefits used throughout this report excludes gains and losses from fair value changes in separate account liabilities.

(3)	Adjusted net investment income used throughout this report excludes Amortization expense of fair value adjustment on acquired invested assets and includes income from private equity partnerships where we hold more than three percent ownership.

(4)	Adjusted realized gains (losses) used throughout this report excludes realized gains and losses on crop derivatives.

(5)	Adjusted interest expense used throughout this report excludes Amortization benefit of fair value adjustment on acquired long term debt.


Statement of Operations		Page 2

Chubb Limited

P&C Underwriting Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Chubb Limited P&C Underwriting Results


	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			Full Year 2020			Full Year 2019
P&C underwriting income (loss) (Including Corporate and excluding Life Insurance)
Gross premiums written	$	9,571		$	10,575		$	9,387		$	9,069		$	9,282		$	38,602		$	37,607
Net premiums written		7,770			8,468			7,736			7,332			7,375			31,306			29,883
Net premiums earned		7,786			8,166			7,520			7,163			7,322			30,635			28,947
Adjusted losses and loss expenses		4,642			5,651			6,407			4,285			4,689			20,985			17,981
Policy acquisition costs		1,479			1,470			1,397			1,435			1,376			5,781			5,533
Administrative expenses		696			653			645			665			724			2,659			2,707

P&C underwriting income (loss)	$	969		$	392		$	(929	)	$	778		$	533		$	1,210		$	2,726

P&C CAY underwriting income ex Cats	$	1,059		$	1,171		$	947		$	897		$	730		$	4,074		$	3,121
% Change versus prior year period
Net premiums written		5.4	%		5.7	%		-0.4	%		8.9	%		9.0	%		4.8	%		5.6	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾								2.1	%								5.5	%
Net premiums earned		6.3	%		5.7	%		2.7	%		8.9	%		6.3	%		5.8	%		4.0	%
Net premiums written constant $		5.0	%		6.4	%		1.4	%		9.3	%		9.8	%		5.4	%		7.0	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾								3.9	%								6.1	%
Net premiums earned constant $		6.0	%		6.3	%		4.6	%		9.3	%		7.1	%		6.5	%		5.4	%
P&C combined ratio
Loss and loss expense ratio		59.6	%		69.2	%		85.2	%		59.8	%		64.0	%		68.5	%		62.1	%
Policy acquisition cost ratio		19.0	%		18.0	%		18.5	%		20.0	%		18.8	%		18.9	%		19.1	%
Administrative expense ratio		9.0	%		8.0	%		8.6	%		9.3	%		9.9	%		8.7	%		9.4	%

Combined ratio		87.6	%		95.2	%		112.3	%		89.1	%		92.7	%		96.1	%		90.6	%

CAY P&C combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		58.5	%		59.7	%		60.4	%		58.2	%		61.3	%		59.2	%		60.8	%
CAY policy acquisition cost and administrative expense ratio ex Cats		27.9	%		26.0	%		27.0	%		29.3	%		28.7	%		27.5	%		28.4	%

CAY combined ratio ex Cats		86.4	%		85.7	%		87.4	%		87.5	%		90.0	%		86.7	%		89.2	%

Other ratios
Net premiums written/gross premiums written		81	%		80	%		82	%		81	%		79	%		81	%		79	%
Expense ratio		28.0	%		26.0	%		27.1	%		29.3	%		28.7	%		27.6	%		28.5	%
Expense ratio excluding A&H		26.0	%		24.0	%		25.2	%		27.5	%		26.6	%		25.6	%		26.4	%
Catastrophe reinstatement premiums (expensed) collected—pre-tax	$	3		$	7		$	(20	)	$	—		$	(14	)	$	(10	)	$	(12	)
Catastrophe losses—pre-tax	$	299		$	932		$	1,781		$	237		$	416		$	3,249		$	1,175
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(206	)	$	(146	)	$	75		$	(118	)	$	(233	)	$	(395	)	$	(792	)
Impact of catastrophe losses ex COVID-19 on P&C combined ratio—Unfavorable		3.8	%		11.3	%		5.8	%		3.1	%		5.9	%		6.1	%		4.1	%
Impact of COVID-19 catastrophe losses on P&C combined ratio—Unfavorable		0.0	%		0.0	%		18.1	%		0.2	%		0.0	%		4.5	%		0.0	%
Impact of catastrophe losses on P&C combined ratio—Unfavorable		3.8	%		11.3	%		23.9	%		3.3	%		5.9	%		10.6	%		4.1	%
Impact of PPD on P&C combined ratio—Unfavorable (favorable)		-2.6	%		-1.8	%		1.0	%		-1.7	%		-3.2	%		-1.2	%		-2.7	%
Impact of Cats and PPD on P&C combined ratio—Unfavorable		1.2	%		9.5	%		24.9	%		1.6	%		2.7	%		9.4	%		1.4	%

(1)	Full year 2020 net premiums written were adversely impacted by COVID-19 including $184 million of exposure adjustments on in-force policies and $29 million of return premiums in North America Personal P&C Insurance.


P&C Results		Page 3

Chubb Limited

Global P&C Underwriting Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global P&C includes the company’s North America Commercial P&C Insurance segment (refer to page 11), North America Personal P&C Insurance segment (refer to page 12), Overseas General Insurance segment (refer to page 14), Global Reinsurance segment (refer to page 15), and Corporate (refer to page 17). Global P&C excludes the North America Agricultural Insurance and Life Insurance segments.

Global P&C (Including Corporate and excluding Agriculture)


	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			Full Year 2020			Full Year 2019
Global P&C underwriting income (loss)
Gross premiums written	$	9,259		$	9,243		$	8,735		$	8,849		$	9,000		$	36,086		$	35,192
Net premiums written		7,528			7,482			7,275			7,175			7,099			29,460			28,073
Net premiums earned		7,405			7,195			7,144			7,069			6,901			28,813			27,152
Adjusted losses and loss expenses		4,321			4,806			6,094			4,220			4,236			19,441			16,365
Policy acquisition costs		1,452			1,414			1,368			1,424			1,382			5,658			5,449
Administrative expenses		699			648			642			661			727			2,650			2,701

Global P&C underwriting income (loss)	$	933		$	327		$	(960	)	$	764		$	556		$	1,064		$	2,637

Global P&C CAY underwriting income ex Cats	$	1,025		$	1,078		$	910		$	889		$	789		$	3,902		$	3,104
% Change versus prior year period
Net premiums written		6.0	%		5.8	%		-0.3	%		8.6	%		8.0	%		4.9	%		5.0	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾								2.3	%								5.7	%
Net premiums earned		7.3	%		6.0	%		2.9	%		8.4	%		5.0	%		6.1	%		3.3	%
Net premiums written constant $		5.7	%		6.6	%		1.6	%		9.1	%		8.9	%		5.7	%		6.6	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾								4.2	%								6.4	%
Net premiums earned constant $		6.9	%		6.7	%		4.9	%		8.8	%		5.8	%		6.8	%		4.9	%
Combined ratio
Loss and loss expense ratio		58.4	%		66.8	%		85.3	%		59.7	%		61.4	%		67.5	%		60.3	%
Policy acquisition cost ratio		19.6	%		19.7	%		19.1	%		20.2	%		20.0	%		19.6	%		20.1	%
Administrative expense ratio		9.4	%		9.0	%		9.0	%		9.3	%		10.5	%		9.2	%		9.9	%

Combined ratio		87.4	%		95.5	%		113.4	%		89.2	%		91.9	%		96.3	%		90.3	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		57.0	%		56.4	%		59.3	%		57.9	%		58.1	%		57.6	%		58.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		29.1	%		28.6	%		28.0	%		29.5	%		30.5	%		28.9	%		30.0	%

CAY combined ratio ex Cats		86.1	%		85.0	%		87.3	%		87.4	%		88.6	%		86.5	%		88.6	%

Other ratios
Net premiums written/gross premiums written		81	%		81	%		83	%		81	%		79	%		82	%		80	%
Expense ratio		29.0	%		28.7	%		28.1	%		29.5	%		30.5	%		28.8	%		30.0	%
Expense ratio excluding A&H		27.2	%		26.7	%		26.2	%		27.7	%		28.6	%		26.9	%		28.0	%
Catastrophe reinstatement premiums (expensed) collected—pre-tax	$	4		$	7		$	(20	)	$	—		$	(14	)	$	(9	)	$	(12	)
Catastrophe losses—pre-tax	$	288		$	922		$	1,775		$	229		$	415		$	3,214		$	1,167
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(192	)	$	(164	)	$	75		$	(104	)	$	(196	)	$	(385	)	$	(712	)

(1)	Full year 2020 net premiums written were adversely impacted by COVID-19 including $184 million of exposure adjustments on in-force policies and $29 million of return premiums in North America Personal P&C Insurance.


Global P&C		Page 4

Chubb Limited

Summary Consolidated Balance Sheets

(in millions of U.S. dollars, except per share data)

(Unaudited)


	December 31 2020			September 30 2020			June 30 2020			March 31 2020			December 31 2019
Assets
Fixed maturities available for sale, at fair value	$	90,699		$	89,852		$	86,712		$	81,523		$	85,488
Fixed maturities held to maturity, at amortized cost		11,653			11,651			11,845			12,022			12,581
Equity securities, at fair value		4,027			3,088			2,394			2,068			812
Short-term investments, at fair value		4,345			4,660			4,003			3,586			4,291
Other investments		7,945			6,796			5,923			6,075			6,062

		118,669			116,047			110,877			105,274			109,234
Cash		1,747			1,707			1,557			1,512			1,537
Securities lending collateral		1,844			1,851			1,832			1,342			994
Insurance and reinsurance balances receivable		10,480			10,588			10,853			10,058			10,357
Reinsurance recoverable on losses and loss expenses		15,592			15,670			15,207			14,898			15,181
Deferred policy acquisition costs		5,402			5,275			5,243			5,162			5,242
Value of business acquired		263			286			290			289			306
Prepaid reinsurance premiums		2,769			2,760			2,725			2,570			2,647
Goodwill and other intangible assets		21,211			21,103			21,093			20,873			21,359
Investments in partially-owned insurance companies		2,813			2,534			1,364			1,346			1,332
Other assets		9,984			9,965			10,433			9,793			8,754

Total assets	$	190,774		$	187,786		$	181,474		$	173,117		$	176,943

Liabilities
Unpaid losses and loss expenses	$	67,811		$	67,905		$	65,699		$	62,214		$	62,690
Unearned premiums		17,652			17,502			17,081			16,459			16,771
Future policy benefits		5,713			5,519			5,451			5,326			5,373
Insurance and reinsurance balances payable		6,708			6,420			6,249			6,084			6,184
Securities lending payable		1,844			1,851			1,832			1,342			994
Accounts payable, accrued expenses, and other liabilities		15,457			14,923			14,442			13,913			13,630
Deferred tax liabilities		892			815			696			473			804
Short-term and long-term debt		14,948			16,130			14,956			14,810			14,858
Trust preferred securities		308			308			308			308			308

Total liabilities		131,333			131,373			126,714			120,929			121,612
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		56,572			54,557			53,662			54,281			54,712
Accumulated other comprehensive income (loss) (AOCI)		2,869			1,856			1,098			(2,093	)		619

Total shareholders’ equity		59,441			56,413			54,760			52,188			55,331

Total liabilities and shareholders’ equity	$	190,774		$	187,786		$	181,474		$	173,117		$	176,943

Book value per common share	$	131.88		$	124.98		$	121.32		$	115.62		$	122.42
% change over prior quarter		5.5	%		3.0	%		4.9	%		-5.6	%		1.7	%
Tangible book value per common share	$	87.69		$	81.11		$	77.49		$	72.27		$	78.14
% change over prior quarter		8.1	%		4.7	%		7.2	%		-7.5	%		2.5	%


Consol Bal Sheet		Page 5

Chubb Limited

Consolidated Net Premiums Written by Line of Business

(in millions of U.S. dollars)

(Unaudited)


	4Q-20		4Q-19		% Change			Constant $ % Change			Full Year 2020		Full Year 2019		% Change			Constant $ % Change			C$ adjusted for COVID-19 exposures % Change ⁽¹⁾
Net premiums written
Commercial multiple peril⁽²⁾	$	269	$	258		4.4	%		4.4	%	$	1,047	$	983		6.6	%		6.6	%		7.1	%
Commercial casualty		1,636		1,474		11.0	%		10.2	%		6,177		5,654		9.2	%		9.3	%		10.4	%
Workers’ compensation		530		561		-5.6	%		-5.6	%		2,015		2,098		-4.0	%		-4.0	%		1.8	%
Professional liability		1,189		1,021		16.5	%		15.8	%		4,201		3,697		13.6	%		14.0	%		14.0	%
Surety		137		163		-16.2	%		-14.2	%		531		639		-16.9	%		-14.5	%		-14.5	%
Property and other short-tail lines		1,283		1,058		21.3	%		20.6	%		5,231		4,468		17.1	%		18.3	%		18.3	%

Total Commercial P&C		5,044		4,535		11.2	%		10.8	%		19,202		17,539		9.5	%		10.0	%		11.0	%
Agriculture		242		276		-12.2	%		-12.2	%		1,846		1,810		2.0	%		2.0	%		2.0	%
Personal automobile		376		448		-15.9	%		-13.2	%		1,550		1,786		-13.2	%		-10.0	%		-8.3	%
Personal homeowners		919		867		6.0	%		6.1	%		3,627		3,513		3.2	%		3.5	%		3.5	%
Personal other		419		391		7.4	%		5.0	%		1,656		1,514		9.4	%		9.8	%		9.8	%

Total Personal lines		1,714		1,706		0.5	%		0.9	%		6,833		6,813		0.3	%		1.5	%		1.9	%
Total Property and Casualty lines		7,000		6,517		7.4	%		7.2	%		27,881		26,162		6.6	%		7.2	%		8.0	%
Global A&H lines ⁽³⁾		928		1,060		-12.4	%		-13.0	%		3,859		4,315		-10.6	%		-9.7	%		-9.7	%
Reinsurance lines		125		109		14.4	%		12.9	%		731		649		12.6	%		12.1	%		12.1	%
Life		357		311		14.5	%		15.0	%		1,349		1,149		17.4	%		18.4	%		18.4	%

Total consolidated	$	8,410	$	7,997		5.2	%		4.9	%	$	33,820	$	32,275		4.8	%		5.5	%		6.1	%

(1)	Full year 2020 net premiums written were adversely impacted by COVID-19 including $184 million of exposure adjustments on in-force policies and $29 million of return premiums in North America Personal P&C Insurance.

(2)	Commercial multiple peril represents retail package business (property and general liability).

(3)

For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in Global A&H lines above.


Line of Business		Page 6

Chubb Limited

Consolidated Results—Three months ended December 31, 2020

(in millions of U.S. dollars, except ratios)

(Unaudited)


Q4 2020	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	3,724		$	1,201		$	242		$	2,478		$	125		$	—		$	7,770		$	640		$	8,410
Net premiums earned		3,537			1,243			381			2,447			178			—			7,786			644			8,430
Adjusted losses and loss expenses		2,006			781			321			1,320			121			93			4,642			168			4,810
Adjusted policy benefits		—			—			—			—			—			—			—			184			184
Policy acquisition costs		490			250			27			665			47			—			1,479			215			1,694
Administrative expenses		255			71			(3	)		275			9			89			696			82			778

Underwriting income (loss)		786			141			36			187			1			(182	)		969			(5	)		964
Adjusted net investment income		517			65			7			138			93			4			824			100			924
Other income (expense)—operating		(4	)		(1	)		—			(3	)		(1	)		2			(7	)		22			15
Amortization expense of purchased intangibles		—			(3	)		(7	)		(12	)		—			(50	)		(72	)		(1	)		(73	)

Segment income (loss)	$	1,299		$	202		$	36		$	310		$	93		$	(226	)	$	1,714		$	116		$	1,830

Adjusted interest expense																	(131	)								(131	)
Income tax expense																	(259	)								(259	)

Core operating income (loss)																	(616	)								1,440
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $3 million tax benefit																	(18	)								(18	)
Adjusted net realized gains (losses), net of $78 million tax⁽¹⁾																	996									996

Net income																$	362								$	2,418

Combined ratio		77.8	%*		88.6	%		90.5	%		92.4	%*		99.6	%					87.6	%
CAY combined ratio ex Cats		83.9	%		79.3	%		91.1	%		89.5	%		81.3	%					86.4	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.

While there was no change to the previously reported aggregate P&C COVID-19 incurred loss charge from June 30, 2020, there was a reallocation of losses between divisions resulting in a decrease of 1.4 percentage points to the combined ratio for North America Commercial P&C Insurance and an increase of 2.0 percentage points to the combined ratio for Overseas General Insurance.


Consol Results—QTD 2020		Page 7

Chubb Limited

Consolidated Results—Full Year 2020

(in millions of U.S. dollars, except ratios)

(Unaudited)


Full Year 2020	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	14,474		$	4,920		$	1,846		$	9,335		$	731		$	—		$	31,306		$	2,514		$	33,820
Net premiums earned		13,964			4,866			1,822			9,285			698			—			30,635			2,482			33,117
Adjusted losses and loss expenses		10,129			3,187			1,544			5,255			435			435			20,985			724			21,709
Adjusted policy benefits		—			—			—			—			—			—			—			726			726
Policy acquisition costs		1,942			974			123			2,568			174			—			5,781			766			6,547
Administrative expenses		1,006			270			9			1,034			37			303			2,659			320			2,979

Underwriting income (loss)		887			435			146			428			52			(738	)		1,210			(54	)		1,156
Adjusted net investment income		2,061			260			30			534			307			29			3,221			385			3,606
Other income (expense)—operating		(23	)		(5	)		(1	)		(13	)		(2	)		(30	)		(74	)		74			—
Amortization expense of purchased intangibles		—			(11	)		(27	)		(45	)		—			(203	)		(286	)		(4	)		(290	)

Segment income (loss)	$	2,925		$	679		$	148		$	904		$	357		$	(942	)	$	4,071		$	401		$	4,472

Adjusted interest expense																	(537	)								(537	)
Income tax expense																	(622	)								(622	)

Core operating income (loss)																	(2,101	)								3,313
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $17 million tax benefit																	(78	)								(78	)
Adjusted net realized gains (losses), net of $24 million tax⁽¹⁾																	298									298

Net income (loss)																$	(1,881	)							$	3,533

Combined ratio		93.7	%		91.1	%		92.0	%		95.4	%		92.5	%					96.1	%
CAY combined ratio ex Cats		85.3	%		78.7	%		90.5	%		89.4	%		80.1	%					86.7	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—FY 2020		Page 8

Chubb Limited

Consolidated Results—Three months ended December 31, 2019

(in millions of U.S. dollars, except ratios)

(Unaudited)


Q4 2019	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	3,438		$	1,171		$	276		$	2,381		$	109		$	—		$	7,375		$	622		$	7,997
Net premiums earned		3,262			1,185			421			2,287			167			—			7,322			613			7,935
Adjusted losses and loss expenses		1,968			865			453			1,221			107			75			4,689			176			4,865
Adjusted policy benefits		—			—			—			—			—			—			—			201			201
Policy acquisition costs		454			240			(6	)		646			42			—			1,376			166			1,542
Administrative expenses		273			75			(3	)		262			9			108			724			86			810

Underwriting income (loss)		567			5			(23	)		158			9			(183	)		533			(16	)		517
Adjusted net investment income		525			64			8			144			73			8			822			95			917
Other income (expense)—operating		(7	)		(1	)		—			(1	)		(1	)		(6	)		(16	)		11			(5	)
Amortization expense of purchased intangibles		—			(3	)		(7	)		(11	)		—			(55	)		(76	)		—			(76	)

Segment income (loss)	$	1,085		$	65		$	(22	)	$	290		$	81		$	(236	)	$	1,263		$	90		$	1,353

Adjusted interest expense																	(140	)								(140	)
Income tax expense																	(173	)								(173	)

Core operating income (loss)																	(549	)								1,040
Chubb integration expenses, net of $2 million tax benefit																	(12	)								(12	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $4 million tax benefit																	(25	)								(25	)
Adjusted net realized gains (losses), net of $2 million tax ⁽¹⁾																	170									170

Net income (loss)																$	(416	)							$	1,173

Combined ratio		82.6	%		99.6	%		105.4	%		93.1	%		94.6	%					92.7	%
CAY combined ratio ex Cats		86.4	%		81.4	%		113.9	%		91.2	%		83.3	%					90.0	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—QTD 2019		Page 9

Chubb Limited

Consolidated Results—Full Year 2019

(in millions of U.S. dollars, except ratios)

(Unaudited)


Full Year 2019	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	13,375		$	4,787		$	1,810		$	9,262		$	649		$	—		$	29,883		$	2,392		$	32,275
Net premiums earned		12,922			4,694			1,795			8,882			654			—			28,947			2,343			31,290
Adjusted losses and loss expenses		8,206			3,043			1,616			4,606			352			158			17,981			757			18,738
Adjusted policy benefits		—			—			—			—			—			—			—			696			696
Policy acquisition costs		1,831			948			84			2,501			169			—			5,533			620			6,153
Administrative expenses		1,028			286			6			1,033			35			319			2,707			323			3,030

Underwriting income (loss)		1,857			417			89			742			98			(477	)		2,726			(53	)		2,673
Adjusted net investment income		2,109			258			30			588			279			36			3,300			373			3,673
Other income (expense)—operating		(24	)		(3	)		(1	)		(12	)		(1	)		(24	)		(65	)		48			(17	)
Amortization expense of purchased intangibles		—			(12	)		(28	)		(45	)		—			(218	)		(303	)		(2	)		(305	)

Segment income (loss)	$	3,942		$	660		$	90		$	1,273		$	376		$	(683	)	$	5,658		$	366		$	6,024

Adjusted interest expense																	(573	)								(573	)
Income tax expense																	(810	)								(810	)

Core operating income (loss)																	(2,066	)								4,641
Chubb integration expenses, net of $4 million tax benefit																	(19	)								(19	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $26 million tax benefit																	(114	)								(114	)
Adjusted net realized gains (losses), net of $15 million tax ⁽¹⁾																	(54	)								(54	)

Net income (loss)																$	(2,253	)							$	4,454

Combined ratio		85.6	%		91.1	%		95.1	%		91.6	%		85.0	%					90.6	%
CAY combined ratio ex Cats		87.4	%		81.4	%		99.1	%		90.9	%		82.1	%					89.2	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—FY 2019		Page 10

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Commercial P&C Insurance


																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written	$	4,780		$	4,841		$	4,401		$	4,211		$	4,576		$	18,233		$	17,604
Net premiums written		3,724			3,778			3,720			3,252			3,438			14,474			13,375
Net premiums earned		3,537			3,456			3,595			3,376			3,262			13,964			12,922
Losses and loss expenses		2,006			2,444			3,498			2,181			1,968			10,129			8,206
Policy acquisition costs		490			489			471			492			454			1,942			1,831
Administrative expenses		255			243			249			259			273			1,006			1,028

Underwriting income (loss)		786			280			(623	)		444			567			887			1,857
Adjusted net investment income		517			510			509			525			525			2,061			2,109
Other income (expense)—operating		(4	)		(7	)		(6	)		(6	)		(7	)		(23	)		(24	)

Segment income (loss)	$	1,299		$	783		$	(120	)	$	963		$	1,085		$	2,925		$	3,942

CAY underwriting income ex Cats	$	568		$	527		$	504		$	457		$	445		$	2,056		$	1,629
Combined ratio
Loss and loss expense ratio		56.7	%*		70.7	%		97.3	%		64.6	%		60.3	%		72.5	%		63.5	%
Policy acquisition cost ratio		13.9	%		14.2	%		13.1	%		14.6	%		13.9	%		14.0	%		14.2	%
Administrative expense ratio		7.2	%		7.0	%		6.9	%		7.6	%		8.4	%		7.2	%		7.9	%

Combined ratio		77.8	%		91.9	%		117.3	%		86.8	%		82.6	%		93.7	%		85.6	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		62.8	%		63.8	%		66.1	%		64.2	%		64.0	%		64.2	%		65.3	%
CAY policy acquisition cost and administrative expense ratio ex Cats		21.1	%		21.1	%		19.9	%		22.3	%		22.4	%		21.1	%		22.1	%

CAY combined ratio ex Cats		83.9	%		84.9	%		86.0	%		86.5	%		86.4	%		85.3	%		87.4	%

Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	—		$	(3	)	$	—		$	—		$	(3	)	$	—
Catastrophe losses—pre-tax	$	33		$	447		$	1,270		$	118		$	102		$	1,868		$	421
Favorable prior period development (PPD)—pre-tax	$	(251	)	$	(200	)	$	(146	)	$	(105	)	$	(224	)	$	(702	)	$	(649	)
% Change versus prior year period
Net premiums written		8.3	%		9.4	%		5.3	%		10.2	%		9.4	%		8.2	%		7.1	%
Net premiums written—Commercial		10.0	%		11.2	%		6.9	%		10.6	%					9.6	%
Net premiums written—Consumer		-19.1	%		-18.1	%		-20.3	%		3.8	%					-13.8	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾								9.8	%								9.4	%
Net premiums earned		8.4	%		8.5	%		6.1	%		9.4	%		6.0	%		8.1	%		4.2	%
Other ratios
Net premiums written/gross premiums written		78	%		78	%		85	%		77	%		75	%		79	%		76	%
Production by Size—Net premiums written ⁽²⁾
Major Accounts & Specialty	$	2,229		$	2,294		$	2,350		$	1,874		$	2,049		$	8,747		$	7,991
Commercial		1,495			1,484			1,370			1,378			1,389			5,727			5,384

Total	$	3,724		$	3,778		$	3,720		$	3,252		$	3,438		$	14,474		$	13,375

While there was no change to the previously reported aggregate P&C COVID-19 incurred loss charge from June 30, 2020, there was a reallocation of losses between divisions resulting in a decrease of 1.4 percentage points to the loss ratio for North America Commercial P&C Insurance and an increase of 2.0 percentage points to the loss ratio for Overseas General Insurance.

(1)	Full year 2020 net premiums written were adversely impacted by COVID-19 including $160 million recorded in Q2 2020 of exposure adjustments on in-force policies.

(2)

Major Accounts & Specialty: large corporate accounts and wholesale business. Commercial: principally middle market and small commercial accounts. Certain 2019 businesses, previously reported within Commercial, are now reported within Major Accounts & Specialty to align with 2020 reporting. The reclassifications are immaterial and have no impact to total reported North America Commercial P&C Insurance segment net premiums written.


NA Commercial		Page 11

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Personal P&C Insurance


																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written	$	1,348		$	1,448		$	1,511		$	1,265		$	1,349		$	5,572		$	5,461
Net premiums written		1,201			1,285			1,327			1,107			1,171			4,920			4,787
Net premiums earned		1,243			1,231			1,192			1,200			1,185			4,866			4,694
Losses and loss expenses		781			961			762			683			865			3,187			3,043
Policy acquisition costs		250			248			231			245			240			974			948
Administrative expenses		71			65			66			68			75			270			286

Underwriting income (loss)		141			(43	)		133			204			5			435			417
Net investment income		65			64			65			66			64			260			258
Other income (expense)—operating		(1	)		(1	)		(1	)		(2	)		(1	)		(5	)		(3	)
Amortization expense of purchased intangibles		(3	)		(2	)		(3	)		(3	)		(3	)		(11	)		(12	)

Segment income	$	202		$	18		$	194		$	265		$	65		$	679		$	660

CAY underwriting income ex Cats	$	254		$	310		$	242		$	226		$	223		$	1,032		$	876
Combined ratio
Loss and loss expense ratio		62.8	%		78.1	%		63.8	%		57.0	%		73.0	%		65.5	%		64.8	%
Policy acquisition cost ratio		20.1	%		20.1	%		19.4	%		20.4	%		20.3	%		20.0	%		20.2	%
Administrative expense ratio		5.7	%		5.3	%		5.6	%		5.6	%		6.3	%		5.6	%		6.1	%

Combined ratio		88.6	%		103.5	%		88.8	%		83.0	%		99.6	%		91.1	%		91.1	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		53.4	%		49.2	%		54.7	%		55.1	%		55.1	%		53.1	%		55.1	%
CAY policy acquisition cost and administrative expense ratio ex Cats		25.9	%		25.6	%		24.9	%		26.1	%		26.3	%		25.6	%		26.3	%

CAY combined ratio ex Cats		79.3	%		74.8	%		79.6	%		81.2	%		81.4	%		78.7	%		81.4	%

Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	—		$	(1	)	$	—		$	(11	)	$	(1	)	$	(11	)
Catastrophe losses—pre-tax	$	98		$	305		$	109		$	21		$	214		$	533		$	543
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	15		$	48		$	(1	)	$	1		$	(7	)	$	63		$	(95	)
% Change versus prior year period
Net premiums written		2.5	%		2.8	%		1.4	%		4.8	%		9.2	%		2.8	%		2.4	%
Net premiums earned		4.9	%		3.8	%		2.1	%		3.9	%		4.8	%		3.7	%		2.2	%
Other ratios
Net premiums written/gross premiums written		89	%		89	%		88	%		88	%		87	%		88	%		88	%


NA Personal		Page 12

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Agricultural Insurance


																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written	$	312		$	1,332		$	652		$	220		$	282		$	2,516		$	2,415
Net premiums written		242			986			461			157			276			1,846			1,810
Net premiums earned		381			971			376			94			421			1,822			1,795
Adjusted losses and loss expenses ⁽¹⁾		321			845			313			65			453			1,544			1,616
Policy acquisition costs		27			56			29			11			(6	)		123			84
Administrative expenses		(3	)		5			3			4			(3	)		9			6

Underwriting income (loss)		36			65			31			14			(23	)		146			89
Net investment income		7			7			7			9			8			30			30
Other income (expense)—operating		—			—			(1	)		—			—			(1	)		(1	)
Amortization expense of purchased intangibles		(7	)		(7	)		(6	)		(7	)		(7	)		(27	)		(28	)

Segment income (loss)	$	36		$	65		$	31		$	16		$	(22	)	$	148		$	90

CAY underwriting income (loss) ex Cats	$	34		$	93		$	37		$	8		$	(59	)	$	172		$	17
Combined ratio
Loss and loss expense ratio		84.1	%		87.1	%		83.1	%		69.6	%		107.6	%		84.7	%		90.1	%
Policy acquisition cost ratio		7.0	%		5.8	%		7.8	%		11.1	%		-1.5	%		6.8	%		4.7	%
Administrative expense ratio		-0.6	%		0.4	%		0.9	%		4.1	%		-0.7	%		0.5	%		0.3	%

Combined ratio		90.5	%		93.3	%		91.8	%		84.8	%		105.4	%		92.0	%		95.1	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		86.3	%		84.2	%		81.5	%		76.2	%		113.6	%		83.7	%		93.5	%
CAY policy acquisition cost and administrative expense ratio ex Cats		4.8	%		6.2	%		8.7	%		14.7	%		0.3	%		6.8	%		5.6	%

CAY combined ratio ex Cats		91.1	%		90.4	%		90.2	%		90.9	%		113.9	%		90.5	%		99.1	%

Catastrophe reinstatement premiums expensed—pre-tax	$	(1	)	$	—		$	—		$	—		$	—		$	(1	)	$	—
Catastrophe losses—pre-tax	$	11		$	10		$	6		$	8		$	1		$	35		$	8
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(14	)	$	18		$	—		$	(14	)	$	(37	)	$	(10	)	$	(80	)
% Change versus prior year period
Net premiums written		-12.2	%		5.0	%		-1.1	%		21.2	%		40.4	%		2.0	%		14.8	%
Net premiums earned		-9.4	%		3.2	%		-0.5	%		71.8	%		32.4	%		1.5	%		14.4	%
Other ratios
Net premiums written/gross premiums written		78	%		74	%		71	%		71	%		98	%		73	%		75	%

(1)	Includes Realized gains (losses) on crop derivatives


NA Agriculture		Page 13

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Overseas General Insurance


																		Full Year			Full Year
			4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written			$	3,001		$	2,756		$	2,561		$	3,131		$	2,964		$	11,449		$	11,408
Net premiums written				2,478			2,238			2,021			2,598			2,381			9,335			9,262
Net premiums earned				2,447			2,337			2,194			2,307			2,287			9,285			8,882
Losses and loss expenses				1,320			1,192			1,485			1,258			1,221			5,255			4,606
Policy acquisition costs				665			637			624			642			646			2,568			2,501
Administrative expenses				275			260			241			258			262			1,034			1,033

Underwriting income (loss)				187			248			(156	)		149			158			428			742
Adjusted net investment income				138			130			121			145			144			534			588
Other income (expense)—operating				(3	)		(1	)		(5	)		(4	)		(1	)		(13	)		(12	)
Amortization expense of purchased intangibles				(12	)		(10	)		(11	)		(12	)		(11	)		(45	)		(45	)

Segment income (loss)			$	310		$	367		$	(51	)	$	278		$	290		$	904		$	1,273

CAY underwriting income ex Cats			$	258		$	283		$	207		$	235		$	202		$	983		$	806
Combined ratio
Loss and loss expense ratio				53.9	%*		51.0	%		67.7	%		54.5	%		53.3	%		56.6	%		51.9	%
Policy acquisition cost ratio				27.2	%		27.3	%		28.4	%		27.8	%		28.3	%		27.7	%		28.1	%
Administrative expense ratio				11.3	%		11.1	%		11.0	%		11.2	%		11.5	%		11.1	%		11.6	%

Combined ratio				92.4	%		89.4	%		107.1	%		93.5	%		93.1	%		95.4	%		91.6	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats				51.0	%		49.5	%		51.6	%		50.8	%		51.5	%		50.7	%		51.2	%
CAY policy acquisition cost and administrative expense ratio ex Cats				38.5	%		38.4	%		39.1	%		39.0	%		39.7	%		38.7	%		39.7	%

CAY combined ratio ex Cats				89.5	%		87.9	%		90.7	%		89.8	%		91.2	%		89.4	%		90.9	%

Catastrophe reinstatement premiums (expensed) collected—pre-tax			$	1		$	—		$	(16	)	$	—		$	(4	)	$	(15	)	$	(4	)
Catastrophe losses—pre-tax			$	122		$	95		$	383		$	90		$	83		$	690		$	152
Favorable prior period development (PPD)—pre-tax			$	(50	)	$	(60	)	$	(36	)	$	(4	)	$	(43	)	$	(150	)	$	(92	)
% Change versus prior year period
Net premiums written				4.1	%		0.5	%		-10.5	%		8.5	%		6.3	%		0.8	%		4.0	%
Net premiums written—Commercial				14.2	%		10.4	%		-1.6	%		12.1	%					9.1	%
Net premiums written—Consumer				-8.0	%		-10.9	%		-19.6	%		3.8	%					-8.9	%
Net premiums written adjusted for COVID-19 exposures⁽¹⁾										-9.4	%								1.1	%
Net premiums earned				7.0	%		3.6	%		-1.5	%		9.2	%		4.6	%		4.5	%		3.1	%
Net premiums written constant $				3.3	%		2.8	%		-5.1	%		9.7	%		8.8	%		2.9	%		8.4	%
Net premiums written adjusted for COVID-19 exposures⁽¹⁾										-4.0	%								3.2	%
Net premiums earned constant $				6.0	%		5.7	%		4.2	%		10.5	%		6.9	%		6.6	%		7.6	%
Other ratios
Net premiums written/gross premiums written				83	%		81	%		79	%		83	%		80	%		82	%		81	%

Production by Region—Net premiums written									Constant $			Full Year			Full Year						Constant $
Production by Region—Net premiums written	4Q-20		4Q-19			% Change			% Change			2020			2019			% Change			% Change
Europe	$	1,105	$	933			18.4	%		13.0	%	$	4,099		$	3,631			12.9	%		12.1	%
Latin America		514		620			-17.1	%		-9.8	%		1,928			2,277			-15.3	%		-6.7	%
Asia		762		762			0.0	%		-3.0	%		2,965			3,021			-1.9	%		-1.9	%
Other⁽²⁾		97		66			48.6	%		47.1	%		343			333			3.2	%		4.2	%

Total	$	2,478	$	2,381			4.1	%		3.3	%	$	9,335		$	9,262			0.8	%		2.9	%

While there was no change to the previously reported aggregate P&C COVID-19 incurred loss charge from June 30, 2020, there was a reallocation of losses between divisions resulting in a decrease of 1.4 percentage points to the loss ratio for North America Commercial P&C Insurance and an increase of 2.0 percentage points to the loss ratio for Overseas General Insurance.

(1)	Full year 2020 net premiums written were adversely impacted by COVID-19 including $24 million recorded in Q2 2020 of exposure adjustments on in-force policies.

(2)	Primarily includes Eurasia and Africa, and the company’s international supplemental A&H business of Combined Insurance.


Overseas General Insurance		Page 14

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global Reinsurance


																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written	$	130		$	198		$	262		$	242		$	111		$	832		$	719
Net premiums written		125			181			207			218			109			731			649
Net premiums earned		178			171			163			186			167			698			654
Losses and loss expenses		121			154			73			87			107			435			352
Policy acquisition costs		47			40			42			45			42			174			169
Administrative expenses		9			9			9			10			9			37			35

Underwriting income (loss)		1			(32	)		39			44			9			52			98
Adjusted net investment income		93			85			60			69			73			307			279
Other income (expense)—operating		(1	)		—			(1	)		—			(1	)		(2	)		(1	)

Segment income	$	93		$	53		$	98		$	113		$	81		$	357		$	376

CAY underwriting income ex Cats	$	33		$	30		$	36		$	37		$	28		$	136		$	117
Combined ratio
Loss and loss expense ratio		68.3	%		89.6	%		45.5	%		46.5	%		64.2	%		62.3	%		53.9	%
Policy acquisition cost ratio		25.9	%		23.5	%		25.5	%		24.5	%		24.7	%		24.9	%		25.7	%
Administrative expense ratio		5.4	%		5.2	%		5.6	%		5.1	%		5.7	%		5.3	%		5.4	%

Combined ratio		99.6	%		118.3	%		76.6	%		76.1	%		94.6	%		92.5	%		85.0	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		49.3	%		49.7	%		46.8	%		50.4	%		52.5	%		49.1	%		50.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		32.0	%		31.1	%		31.4	%		29.6	%		30.8	%		31.0	%		31.5	%

CAY combined ratio ex Cats		81.3	%		80.8	%		78.2	%		80.0	%		83.3	%		80.1	%		82.1	%

Catastrophe reinstatement premiums collected—pre-tax	$	3		$	7		$	—		$	—		$	1		$	10		$	3
Catastrophe losses—pre-tax	$	35		$	75		$	13		$	—		$	16		$	123		$	51
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	—		$	(6	)	$	(16	)	$	(7	)	$	4		$	(29	)	$	(29	)
% Change versus prior year period
Net premiums written as reported		14.4	%		28.4	%		4.6	%		8.4	%		-6.0	%		12.6	%		-3.2	%
Net premiums earned as reported		6.5	%		6.7	%		2.9	%		10.4	%		-5.8	%		6.7	%		-2.3	%
Net premiums written constant $		12.9	%		27.2	%		4.9	%		7.9	%		-4.8	%		12.1	%		-1.7	%
Net premiums earned constant $		5.1	%		5.4	%		4.0	%		10.2	%		-5.0	%		6.2	%		-0.8	%
Other ratios
Net premiums written/gross premiums written		96	%		91	%		79	%		90	%		99	%		88	%		90	%


Global Reinsurance		Page 15

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Life Insurance


																		Full Year			Full Year
			4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written			$	678		$	645		$	653		$	683		$	652		$	2,659		$	2,517
Net premiums written				640			610			619			645			622			2,514			2,392
Net premiums earned				644			599			608			631			613			2,482			2,343
Losses and loss expenses				168			183			171			202			176			724			757
Adjusted policy benefits				184			174			183			185			201			726			696
Policy acquisition costs				215			175			196			180			166			766			620
Administrative expenses				82			80			82			76			86			320			323
Net investment income				100			95			95			95			95			385			373

Life Insurance underwriting income⁽¹⁾				95			82			71			83			79			331			320
Other income (expense)—operating				22			23			17			12			11			74			48
Amortization expense of purchased intangibles				(1	)		(1	)		(1	)		(1	)		—			(4	)		(2	)

Segment income			$	116		$	104		$	87		$	94		$	90		$	401		$	366

% Change versus prior year period
Net premiums written				3.0	%		-0.4	%		7.0	%		11.4	%		6.9	%		5.1	%		5.3	%
Net premiums earned				5.0	%		0.0	%		6.5	%		12.6	%		6.6	%		5.9	%		5.6	%
Net premiums written constant $				3.1	%		0.2	%		8.5	%		11.3	%		6.8	%		5.6	%		6.4	%
Net premiums earned constant $				5.2	%		0.7	%		8.0	%		12.5	%		6.5	%		6.5	%		6.6	%
(1) We assess the performance of our Life Insurance business based on Life Insurance underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets. International life insurance net premiums written and deposits breakdown (excludes Combined North America and Life reinsurance businesses):
									Constant $			Full Year			Full Year						Constant $
	4Q-20		4Q-19			% Change			% Change			2020			2019			% Change			% Change
International life insurance net premiums written	$	333	$	266			25.1	%		25.8	%	$	1,198		$	981			22.1	%		23.4	%
International life insurance deposits ⁽²⁾		444		404			9.8	%		5.0	%		1,559			1,463			6.5	%		3.7	%

Total international life insurance net premiums written and deposits	$	777	$	670			15.9	%		13.0	%	$	2,757		$	2,444			12.8	%		11.4	%

International life insurance segment income	$	32	$	36			-9.2	%		-7.0	%	$	166		$	152			9.4	%		10.8	%

(2)	Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.


Life Insurance		Page 16

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Corporate


																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Gross premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net premiums written		—			—			—			—			—			—			—
Net premiums earned		—			—			—			—			—			—			—
Losses and loss expenses		93			55			276			11			75			435			158
Policy acquisition costs		—			—			—			—			—			—			—
Administrative expenses		89			71			77			66			108			303			319

Underwriting loss		(182	)		(126	)		(353	)		(77	)		(183	)		(738	)		(477	)
Adjusted net investment income		4			9			8			8			8			29			36
Other income (expense)—operating		2			(7	)		(9	)		(16	)		(6	)		(30	)		(24	)
Adjusted interest expense		(131	)		(135	)		(134	)		(137	)		(140	)		(537	)		(573	)
Amortization expense of purchased intangibles		(50	)		(52	)		(51	)		(50	)		(55	)		(203	)		(218	)
Income tax (expense) benefit		(259	)		(172	)		46			(237	)		(173	)		(622	)		(810	)

Core operating loss		(616	)		(483	)		(493	)		(509	)		(549	)		(2,101	)		(2,066	)
Chubb integration expenses, net of tax		—			—			—			—			(12	)		—			(19	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(18	)		(19	)		(19	)		(22	)		(25	)		(78	)		(114	)
Adjusted net realized gains (losses), net of tax⁽¹⁾		996			306			(58	)		(946	)		170			298			(54	)

Net income (loss)	$	362		$	(196	)	$	(570	)	$	(1,477	)	$	(416	)	$	(1,881	)	$	(2,253	)

Unfavorable prior period development (PPD)—pre-tax	$	94		$	54		$	274		$	11		$	74		$	433		$	153

(1)	Includes Net realized gains (losses) related to unconsolidated entities


Corporate		Page 17

Chubb Limited

Loss Reserve Rollforward

(in millions of U.S. dollars, except ratios)

(Unaudited)


	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2018	$	62,960		$	14,689		$	48,271
Losses and loss expenses incurred		5,261			1,163			4,098
Losses and loss expenses paid		(5,197	)		(1,178	)		(4,019	)		98	%
Other (incl. foreign exch. revaluation)		119			33			86

Balance at March 31, 2019	$	63,143		$	14,707		$	48,436
Losses and loss expenses incurred		5,758			1,043			4,715
Losses and loss expenses paid		(5,581	)		(1,489	)		(4,092	)		87	%
Other (incl. foreign exch. revaluation)		(115	)		(28	)		(87	)

Balance at June 30, 2019	$	63,205		$	14,233		$	48,972
Losses and loss expenses incurred		6,783			1,731			5,052
Losses and loss expenses paid		(6,751	)		(1,568	)		(5,183	)		103	%
Other (incl. foreign exch. revaluation)		(225	)		(64	)		(161	)

Balance at September 30, 2019	$	63,012		$	14,332		$	48,680
Losses and loss expenses incurred		5,855			990			4,865
Losses and loss expenses paid		(6,382	)		(1,203	)		(5,179	)		106	%
Other (incl. foreign exch. revaluation)		205			62			143

Balance at December 31, 2019	$	62,690		$	14,181		$	48,509
Losses and loss expenses incurred		5,569			1,084			4,485
Losses and loss expenses paid		(5,345	)		(1,090	)		(4,255	)		95	%
Other (incl. foreign exch. revaluation)		(700	)		(135	)		(565	)

Balance at March 31, 2020	$	62,214		$	14,040		$	48,174
Losses and loss expenses incurred		7,825			1,248			6,577
Losses and loss expenses paid		(4,874	)		(1,024	)		(3,850	)		59	%⁽¹⁾
Other (incl. foreign exch. revaluation)		534			97			437

Balance at June 30, 2020	$	65,699		$	14,361		$	51,338
Losses and loss expenses incurred		7,288			1,453			5,835
Losses and loss expenses paid		(5,342	)		(1,084	)		(4,258	)		73	%
Other (incl. foreign exch. revaluation)		260			37			223

Balance at September 30, 2020	$	67,905		$	14,767		$	53,138
Losses and loss expenses incurred		6,029			1,216			4,813
Losses and loss expenses paid		(6,492	)		(1,421	)		(5,071	)		105	%
Other (incl. foreign exch. revaluation)		369			85			284

Balance at December 31, 2020	$	67,811		$	14,647		$	53,164
Add net recoverable on paid losses		—			945			(945	)

Balance including net recoverable on paid losses	$	67,811		$	15,592		$	52,219

(1)	The losses and loss expenses incurred increased $2.1 billion in Q2 2020, principally reflecting the significant catastrophe events in the period, principally COVID-19, and resulting in the 59% net paid to incurred ratio for Q2 2020.


Loss Reserve Rollforward		Page 18

Chubb Limited

Reinsurance Recoverable Analysis

(in millions of U.S. dollars)

(Unaudited)

Net Reinsurance Recoverable by Division


	December 31			September 30			June 30			March 31			December 31
	2020			2020			2020			2020			2019
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	789		$	784		$	736		$	748		$	887
Brandywine and Other Run-off		213			184			173			177			189

Total	$	1,002		$	968		$	909		$	925		$	1,076

Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	13,629		$	13,707		$	13,315		$	13,088		$	13,223
Brandywine and Other Run-off		1,275			1,315			1,286			1,190			1,198

Total	$	14,904		$	15,022		$	14,601		$	14,278		$	14,421

Gross reinsurance recoverable
Active operations	$	14,418		$	14,491		$	14,051		$	13,836		$	14,110
Brandywine and Other Run-off		1,488			1,499			1,459			1,367			1,387

Total	$	15,906		$	15,990		$	15,510		$	15,203		$	15,497

Provision for uncollectible reinsurance ⁽¹⁾
Active operations	$	(178	)	$	(185	)	$	(177	)	$	(176	)	$	(180	)
Brandywine and Other Run-off		(136	)		(135	)		(126	)		(129	)		(136	)

Total	$	(314	)	$	(320	)	$	(303	)	$	(305	)	$	(316	)

Net reinsurance recoverable
Active operations	$	14,240		$	14,306		$	13,874		$	13,660		$	13,930
Brandywine and Other Run-off		1,352			1,364			1,333			1,238			1,251

Total	$	15,592		$	15,670		$	15,207		$	14,898		$	15,181

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $3.5 billion.


Reinsurance Recoverable		Page 19

Chubb Limited

Investment Portfolio

(in millions of U.S. dollars)

(Unaudited)


	December 31					September 30					June 30					March 31					December 31
	2020					2020					2020					2020					2019
Market Value
Fixed maturities available for sale	$	90,699				$	89,852				$	86,712				$	81,523				$	85,488
Fixed maturities held to maturity		12,510					12,473					12,620					12,468					13,005
Short-term investments		4,345					4,660					4,003					3,586					4,291

Total fixed maturities	$	107,554				$	106,985				$	103,335				$	97,577				$	102,784

Asset Allocation by Market Value
U.S. Treasury / Agency	$	4,122		4	%	$	4,100		4	%	$	4,190		4	%	$	4,296		4	%	$	4,630		5	%
Corporate and asset-backed securities		38,769		36	%		37,712		35	%		36,345		35	%		32,990		33	%		34,259		33	%
Mortgage-backed securities		20,616		19	%		21,590		20	%		20,529		20	%		20,252		21	%		21,588		21	%
Municipal		11,943		11	%		12,267		12	%		12,291		12	%		12,266		13	%		12,824		12	%
Non-U.S.		27,759		26	%		26,656		25	%		25,977		25	%		24,187		25	%		25,192		25	%
Short-term investments		4,345		4	%		4,660		4	%		4,003		4	%		3,586		4	%		4,291		4	%

Total fixed maturities	$	107,554		100	%	$	106,985		100	%	$	103,335		100	%	$	97,577		100	%	$	102,784		100	%

Credit Quality by Market Value
AAA	$	15,622		15	%	$	16,177		15	%	$	15,411		15	%	$	14,577		15	%	$	15,714		15	%
AA		36,125		33	%		36,759		34	%		35,600		35	%		35,437		36	%		37,504		37	%
A		19,712		18	%		19,359		18	%		19,703		19	%		18,375		19	%		19,236		19	%
BBB		17,542		16	%		17,009		16	%		15,690		15	%		13,617		14	%		13,650		13	%
BB		9,699		9	%		9,609		9	%		9,302		9	%		8,661		9	%		9,474		9	%
B		8,267		8	%		7,466		7	%		7,124		7	%		6,487		7	%		6,897		7	%
Other		587		1	%		606		1	%		505		0	%		423		0	%		309		0	%

Total fixed maturities	$	107,554		100	%	$	106,985		100	%	$	103,335		100	%	$	97,577		100	%	$	102,784		100	%

Cost/Amortized Cost, net
Fixed maturities available for sale ⁽¹⁾	$	85,168				$	85,167				$	82,671				$	80,776				$	82,580
Fixed maturities held to maturity ⁽¹⁾		11,653					11,651					11,845					12,022					12,581
Short-term investments⁽¹⁾		4,349					4,662					4,002					3,582					4,291

Subtotal fixed maturities		101,170					101,480					98,518					96,380					99,452
Equity securities		4,027					3,088					2,394					2,068					812
Other investments		7,945					6,796					5,923					6,075					6,062

Total investment portfolio	$	113,142				$	111,364				$	106,835				$	104,523				$	106,326

Avg. duration of fixed maturities		4.0 years					4.0 years					4.0 years					3.9 years					3.8 years
Avg. market yield of fixed maturities		1.7	%				1.9	%				2.2	%				3.0	%				2.7	%
Avg. credit quality		A/Aa					A/Aa					A/Aa					A/Aa					A/Aa
Avg. yield on invested assets⁽²⁾		3.3	%				3.3	%				3.3	%				3.5	%				3.5	%

(1)	Net of valuation allowance for expected credit losses.

(2)	Calculated using adjusted net investment income.


Investments		Page 20

Chubb Limited

Investment Portfolio—2

(in millions of U.S. dollars)

(Unaudited)

Mortgage-backed Fixed Income Portfolio


Mortgage-backed securities	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

Market Value at December 31, 2020
Agency residential mortgage-backed securities (RMBS)	$	126	$	16,886	$	—	$	—	$	—	$	17,012
Non-agency RMBS		123		39		84		20		10		276
Commercial mortgage-backed securities		2,878		284		151		12		3		3,328

Total mortgage-backed securities at market value	$	3,127	$	17,209	$	235	$	32	$	13	$	20,616


U.S. Corporate and Asset-backed Fixed Income Portfolios

Market Value at December 31, 2020			S&P Credit Rating
			Investment Grade
			AAA		AA		A		BBB		Total

Asset-backed			$	3,454	$	504	$	34	$	35	$	4,027
Banks				—		12		1,942		2,187		4,141
Basic Materials				—		—		78		260		338
Communications				—		223		459		1,436		2,118
Consumer, Cyclical				—		282		507		782		1,571
Consumer, Non-Cyclical				55		552		1,678		2,008		4,293
Diversified Financial Services				7		230		415		429		1,081
Energy				—		92		210		718		1,020
Industrial				—		13		951		955		1,919
Utilities				—		3		1,134		469		1,606
All Others				253		481		1,630		1,183		3,547

Total			$	3,769	$	2,392	$	9,038	$	10,462	$	25,661


Market Value at December 31, 2020					S&P Credit Rating
					Below Investment Grade
					BB		B		CCC		Total

Asset-backed					$	7	$	19	$	3	$	29
Banks						—		—		—		—
Basic Materials						317		262		1		580
Communications						937		831		67		1,835
Consumer, Cyclical						1,010		1,094		140		2,244
Consumer, Non-Cyclical						1,323		1,513		77		2,913
Diversified Financial Services						214		108		7		329
Energy						817		355		24		1,196
Industrial						794		867		18		1,679
Utilities						400		43		2		445
All Others						862		953		43		1,858

Total					$	6,681	$	6,045	$	382	$	13,108


Investments 2		Page 21

Chubb Limited

Investment Portfolio—3

(in millions of U.S. dollars)

(Unaudited)

Non-U.S. Fixed Income Portfolio

December 31, 2020


Non-U.S. Government Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

Republic of Korea	$	—	$	1,085	$	—	$	—	$	—	$	1,085
Canada		992		—		—		—		—		992
United Kingdom		—		907		—		—		—		907
Province of Ontario		—		—		728		—		—		728
Kingdom of Thailand		—		—		637		—		—		637
United Mexican States		—		—		—		558		—		558
Province of Quebec		—		530		—		—		—		530
Federative Republic of Brazil		—		—		—		—		509		509
Commonwealth of Australia		470		—		1		—		—		471
Socialist Republic of Vietnam		—		—		—		—		394		394
Other Non-U.S. Government Securities		569		2,017		1,213		941		1,004		5,744

Total	$	2,031	$	4,539	$	2,579	$	1,499	$	1,907	$	12,555


Non-U.S. Corporate Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

United Kingdom	$	68	$	40	$	840	$	999	$	475	$	2,422
Canada		103		244		467		605		415		1,834
United States ⁽¹⁾		—		—		209		298		733		1,240
France		9		48		680		382		64		1,183
Australia		107		204		327		254		24		916
Netherlands		54		98		218		147		117		634
Germany		117		43		118		285		62		625
Japan		—		7		528		67		—		602
Switzerland		54		7		270		196		33		560
China		—		—		283		97		79		459
Other Non-U.S. Corporate Securities		372		399		1,052		1,754		1,152		4,729

Total	$	884	$	1,090	$	4,992	$	5,084	$	3,154	$	15,204

(1)	Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.


Investments 3		Page 22

Chubb Limited

Investment Portfolio—4

(in millions of U.S. dollars)

(Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures


	December 31, 2020	Market Value		Rating
1	Wells Fargo & Co	$	764		BBB+
2	Bank of America Corp		689		A-
3	JP Morgan Chase & Co		646		A-
4	Comcast Corp		528		A-
5	Morgan Stanley		466		BBB+
6	Citigroup Inc		443		BBB+
7	Verizon Communications Inc		418		BBB+
8	AT&T Inc		415		BBB
9	Goldman Sachs Group Inc		405		BBB+
10	HSBC Holdings Plc		387		A-


Investments 4		Page 23

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Three months ended December 31, 2020
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax

Fixed income investments ⁽¹⁾	$	65		$	(8	)	$	57		$	845		$	(127	)	$	718		$	910		$	(135	)	$	775
Public equity:
Realized gains (losses) on sales		258			(52	)		206			—			—			—			258			(52	)		206
Mark-to-market		209			(30	)		179			—			—			—			209			(30	)		179
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		485			(18	)		467			—			—			—			485			(18	)		467

Total investment portfolio		1,017			(108	)		909			845			(127	)		718			1,862			(235	)		1,627
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		146			—			146			—			—			—			146			—			146
Foreign exchange		(132	)		37			(95	)		474			(31	)		443			342			6			348
Partially-owned entities ⁽³⁾		60			(10	)		50			(12	)		—			(12	)		48			(10	)		38
Other		(17	)		3			(14	)		(173	)		37			(136	)		(190	)		40			(150	)

Net gains (losses)	$	1,074		$	(78	)	$	996		$	1,134		$	(121	)	$	1,013		$	2,208		$	(199	)	$	2,009


(1) The quarter includes pre-tax realized gains on fixed income derivatives of $43 million, a net reduction of the valuation allowance of expected credit losses of $15 million, and impairments of $7 million for fixed maturities during the quarter. (2) The quarter includes $78 million of losses on applicable hedges. These losses are both pre-tax and after-tax. (3) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.

	Three months ended December 31, 2019
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax

Fixed income investments ⁽⁴⁾	$	4		$	(2	)	$	2		$	(96	)	$	29		$	(67	)	$	(92	)	$	27		$	(65	)
Public equity ⁽⁴⁾:
Realized gains (losses) on sales		(18	)		4			(14	)		—			—			—			(18	)		4			(14	)
Mark-to-market		37			(7	)		30			—			—			—			37			(7	)		30
Private equity:
Realized gains (losses) on sales		(1	)		—			(1	)		—			—			—			(1	)		—			(1	)
Mark-to-market		222			(10	)		212			—			—			—			222			(10	)		212

Total investment portfolio		244			(15	)		229			(96	)		29			(67	)		148			14			162
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁵⁾		4			—			4			—			—			—			4			—			4
Foreign exchange		(79	)		13			(66	)		156			21			177			77			34			111
Partially-owned entities ⁽⁶⁾		4			—			4			(3	)		—			(3	)		1			—			1
Other		(1	)		—			(1	)		(14	)		5			(9	)		(15	)		5			(10	)

Net gains (losses)	$	172		$	(2	)	$	170		$	43		$	55		$	98		$	215		$	53		$	268

(4)	The quarter includes pre-tax realized losses on derivatives of: $8 million in fixed income and $19 million in public equity. Other-than-temporary impairments for the quarter in realized losses were $8 million pre-tax for fixed maturities.

(5)	The quarter includes $49 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.


Net Gains (Losses)		Page 24

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Year ended December 31, 2020
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax

Fixed income investments ⁽¹⁾	$	(242	)	$	24		$	(218	)	$	2,604		$	(462	)	$	2,142		$	2,362		$	(438	)	$	1,924
Public equity ⁽¹⁾:
Realized gains (losses) on sales		497			(96	)		401			—			—			—			497			(96	)		401
Mark-to-market		131			(22	)		109			—			—			—			131			(22	)		109
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		714			(24	)		690			—			—			—			714			(24	)		690

Total investment portfolio		1,100			(118	)		982			2,604			(462	)		2,142			3,704			(580	)		3,124
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(310	)		—			(310	)		—			—			—			(310	)		—			(310	)
Foreign exchange		(483	)		92			(391	)		306			(4	)		302			(177	)		88			(89	)
Partially-owned entities ⁽³⁾		75			(10	)		65			(12	)		—			(12	)		63			(10	)		53
Other		(60	)		12			(48	)		(232	)		50			(182	)		(292	)		62			(230	)

Net gains (losses)	$	322		$	(24	)	$	298		$	2,666		$	(416	)	$	2,250		$	2,988		$	(440	)	$	2,548

(1)

Full year includes pre-tax realized gains on equity derivatives of $42 million, realized gains on fixed income derivatives of $39 million, a net reduction of the valuation allowance of expected credit losses of $11 million, and impairments of $170 million related to certain securities the company intended to sell and securities written to market entering default.

(2)	Full year includes $108 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.


	Year ended December 31, 2019
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax

Fixed income investments ⁽⁴⁾	$	(413	)	$	8		$	(405	)	$	3,738		$	(647	)	$	3,091		$	3,325		$	(639	)	$	2,686
Public equity ⁽⁴⁾:
Realized gains (losses) on sales		5			(1	)		4			—			—			—			5			(1	)		4
Mark-to-market		46			(10	)		36			—			—			—			46			(10	)		36
Private equity:
Realized gains (losses) on sales		(5	)		—			(5	)		—			—			—			(5	)		—			(5	)
Mark-to-market		449			(10	)		439			—			—			—			449			(10	)		439

Total investment portfolio		82			(13	)		69			3,738			(647	)		3,091			3,820			(660	)		3,160
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁵⁾		(142	)		—			(142	)		—			—			—			(142	)		—			(142	)
Foreign exchange		7			(1	)		6			13			24			37			20			23			43
Partially-owned entities ⁽⁶⁾		19			(1	)		18			(3	)		—			(3	)		16			(1	)		15
Other		(5	)		—			(5	)		(76	)		18			(58	)		(81	)		18			(63	)

Net gains (losses)	$	(39	)	$	(15	)	$	(54	)	$	3,672		$	(605	)	$	3,067		$	3,633		$	(620	)	$	3,013

(4)	Full year includes pre-tax realized losses on derivatives of: $382 million in fixed income and $53 million in public equity. Full year other-than-temporary impairments in realized losses were $58 million pre-tax for fixed maturities.

(5)	Full year includes $138 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.


Net Gains (Losses) 2		Page 25

Chubb Limited

Debt and Capital

(in millions of U.S. dollars, except ratios)

(Unaudited)


	December 31 2020			September 30 2020			June 30 2020			March 31 2020			December 31 2019			December 31 2018
Financial Debt:
Total short-term debt ⁽¹⁾	$	—		$	1,300		$	1,300		$	1,300		$	1,299		$	509
Total long-term debt		14,948			14,830			13,656			13,510			13,559			12,087

Total financial debt	$	14,948		$	16,130		$	14,956		$	14,810		$	14,858		$	12,596
Hybrid debt:
Total trust preferred securities		308			308			308			308			308			308

Total	$	15,256		$	16,438		$	15,264		$	15,118		$	15,166		$	12,904

Capitalization:
Shareholders’ equity	$	59,441		$	56,413		$	54,760		$	52,197		$	55,331		$	50,312
Hybrid debt		308			308			308			308			308			308
Financial debt		14,948			16,130			14,956			14,810			14,858			12,596

Total capitalization	$	74,697		$	72,851		$	70,024		$	67,315		$	70,497		$	63,216

Leverage ratios (based on total capital):
Hybrid debt		0.4	%		0.4	%		0.4	%		0.5	%		0.4	%		0.5	%
Financial debt		20.0	%		22.1	%		21.4	%		22.0	%		21.1	%		19.9	%

Total hybrid & financial debt		20.4	%		22.5	%		21.8	%		22.5	%		21.5	%		20.4	%

Note: As of December 31, 2020, there was $1.7 billion usage of credit facilities on total capacity of $4.0 billion.

(1)	During Q4 2020, the $1.3 billion 2.3% senior notes matured and were fully paid.


Debt and Capital		Page 26

Chubb Limited

Computation of Basic and Diluted Earnings Per Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)


	Three months ended December 31						Year ended December 31
	2020			2019			2020			2019
Numerator
Core operating income to common shares	$	1,440		$	1,040		$	3,313		$	4,641
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax		(21	)		(29	)		(95	)		(140	)
Tax benefit on amortization adjustment		3			4			17			26
Chubb integration expenses, pre-tax		—			(14	)		—			(23	)
Tax benefit on Chubb integration expenses		—			2			—			4
Adjusted net realized gains (losses), pre-tax		1,074			172			322			(39	)
Tax (expense) benefit on adjusted net realized gains (losses)		(78	)		(2	)		(24	)		(15	)

Net income	$	2,418		$	1,173		$	3,533		$	4,454

Rollforward of Common Shares Outstanding
Shares—beginning of period		451,376,194			453,533,642			451,971,567			459,203,378
Repurchase of shares		(1,318,000	)		(2,024,400	)		(3,584,150	)		(10,442,238	)
Shares issued, excluding option exercises		172,744			120,831			1,186,575			1,267,773
Issued for option exercises		501,687			341,494			1,158,633			1,942,654

Shares—end of period		450,732,625			451,971,567			450,732,625			451,971,567

Denominator
Weighted average shares outstanding ⁽¹⁾		451,380,981			452,714,275			451,602,820			455,910,463
Effect of other dilutive securities		1,901,816			3,222,730			1,838,692			3,004,200

Adj. wtd. avg. shares outstanding and assumed conversions		453,282,797			455,937,005			453,441,512			458,914,663

Basic earnings per share
Core operating income	$	3.19		$	2.30		$	7.34		$	10.18
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(0.04	)		(0.06	)		(0.17	)		(0.25	)
Chubb integration expenses, net of tax		—			(0.02	)		—			(0.04	)
Adjusted net realized gains (losses), net of tax		2.21			0.37			0.65			(0.12	)

Net income	$	5.36		$	2.59		$	7.82		$	9.77

Diluted earnings per share
Core operating income	$	3.18		$	2.28		$	7.31		$	10.11
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(0.04	)		(0.06	)		(0.17	)		(0.25	)
Chubb integration expenses, net of tax		—			(0.02	)		—			(0.04	)
Adjusted net realized gains (losses), net of tax		2.20			0.37			0.65			(0.11	)

Net income	$	5.34		$	2.57		$	7.79		$	9.71

(1)	Includes unvested restricted stock units that are not included in common shares outstanding as the shares are not issued until time of vesting, but are eligible to receive dividends (participating securities).


Earnings per share		Page 27

Chubb Limited

Book Value and Book Value per Common Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)

Reconciliation of Book Value per Common Share


	December 31			September 30			June 30			March 31			December 31
	2020			2020			2020			2020			2019
Shareholders’ equity	$	59,441		$	56,413		$	54,760		$	52,188		$	55,331
Less: goodwill and other intangible assets, net of tax		19,916			19,802			19,783			19,569			20,012

Numerator for tangible book value per share	$	39,525		$	36,611		$	34,977		$	32,619		$	35,319

Book value—% change over prior quarter		5.4	%		3.0	%		4.9	%		-5.7	%		1.4	%
Tangible book value—% change over prior quarter		8.0	%		4.7	%		7.2	%		-7.6	%		2.2	%
Denominator		450,732,625			451,376,194			451,360,023			451,367,782			451,971,567

Book value per common share	$	131.88		$	124.98		$	121.32		$	115.62		$	122.42
Tangible book value per common share	$	87.69		$	81.11		$	77.49		$	72.27		$	78.14
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter ⁽¹⁾	$	56,413		$	54,760		$	52,188		$	55,259		$	54,572
Core operating income (loss)		1,440			907			(254	)		1,220			1,040
Amortization of fair value adjustment of acquired invested assets and long-term debt		(18	)		(19	)		(19	)		(22	)		(25	)
Chubb integration expenses		—			—			—			—			(12	)
Adjusted net realized gains (losses) ⁽²⁾		996			306			(58	)		(946	)		170
Net unrealized gains (losses) on investments		706			543			2,757			(1,876	)		(70	)
Repurchase of shares		(190	)		—			—			(326	)		(310	)
Dividend declared on common shares		(352	)		(353	)		(353	)		(340	)		(340	)
Cumulative translation gains (losses)		443			233			451			(825	)		177
Postretirement benefit liability		(136	)		(18	)		(17	)		(11	)		(9	)
Other⁽³⁾		139			54			65			55			138

	$	59,441		$	56,413		$	54,760		$	52,188		$	55,331

(1)	January 1, 2020 included a $72 million after-tax reduction to beginning equity principally related to the adoption of the current expected credit loss accounting guidance.

(2)	Includes net realized gains (losses) related to unconsolidated entities.

(3)	Other primarily includes proceeds from exercise of stock options and stock compensation, offset by the value of any share cancellations for restricted stock vesting taxes.


Reconciliation Book Value		Page 28

Chubb Limited

Non-GAAP Financial Measures

(Unaudited)

Regulation G—Non-GAAP Financial Measures

In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

Underwriting income (loss) is calculated by subtracting adjusted losses and loss expenses, adjusted policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income (loss) and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, Chubb integration expense, income tax expense and adjusted net realized gains (losses).

CAY underwriting income excluding catastrophe losses (Cats) is underwriting income (loss) adjusted to exclude Cats and prior period development (PPD). We believe it is useful to exclude Cats, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

Adjusted 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 adjusted losses and loss expenses.

Adjusted policy benefits includes gains and losses from fair value changes in separate account assets, as well as the offsetting movement in separate account liabilities, for purposes of reporting Life Insurance underwriting income. The gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP 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 adjusted policy benefits.

Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from the acquisition of The Chubb Corporation (Chubb Corp) and including investment income from partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of three percent that are accounted for under the equity method. The mark-to-market movement on these private equity partnerships are included in adjusted net realized gains (losses) as described below. We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.

Adjusted net realized gains (losses), net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives.

Adjusted interest expense is interest expense excluding the amortization of the fair value adjustment on acquired long-term debt, related to the Chubb Corp acquisition due to the size and complexity of this acquisition.

Other income (expense)—operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities, other income (expense) from private equity partnerships, and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from core operating income (loss) in order to enhance the understanding of our results of underwriting operations as they are heavily influenced by, and fluctuate in part according to, market conditions. Other income (expense) from private equity partnerships and net realized gains and losses related to unconsolidated entities are recorded to Other income (expense) in our income statement on a GAAP basis.

P&C underwriting income and P&C combined ratio exclude the Life Insurance segment. P&C loss and loss expense ratio and P&C combined ratio include adjusted losses and loss expenses in the ratio numerator. P&C expense ratio and P&C combined ratio include policy acquisition costs and administrative expenses in the ratio numerator. A reconciliation of combined ratio to P&C combined ratio is provided on pages 32-35.

CAY P&C combined ratio excluding catastrophe losses excludes Cats and PPD from the P&C combined ratio. We exclude Cats as they are not predictable as to timing and amount and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. The combined ratio numerator is adjusted to exclude Cats, net premiums earned adjustments on PPD, prior period expense adjustments and reinstatement premiums on PPD, and the denominator is adjusted to exclude net premiums earned adjustments on PPD and reinstatement premiums on Cats and PPD. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net premiums earned when calculating the ratios. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our P&C business that may be obscured by these items. This measure is commonly reported among our peer companies and allows for a better comparison.

Expense ratio excluding accident and health (A&H) excludes the impact of our A&H business from our expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.

Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life Insurance and North America Agricultural Insurance segments. The agriculture insurance business is a different business in that it is a public sector and private sector partnership in which insurance rates, premium growth, and risk-sharing is not market-driven like the remainder of the company’s P&C insurance business. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Core operating income (loss), net of tax, excludes from net income, the after-tax impact of adjusted net realized gains (losses), Chubb integration expenses, and the amortization of fair value adjustment of acquired invested assets and long-term debt related to the Chubb Corp acquisition. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) because the amount of these gains (losses) are heavily influenced by, and fluctuate in part according to the availability of market opportunities. We exclude the amortization of the fair value adjustments related to purchased invested assets and long-term debt and Chubb integration expenses due to the size and complexity of this acquisition. These integration expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. References to core operating income measures mean net of tax, whether or not noted.

Core operating effective tax rate is income tax expense (benefit) excluding tax expense (benefit) on adjusted net realized gains (losses), tax benefit on amortization of fair value of acquired invested assets and debt, and tax benefit on Chubb integration expenses, divided by income excluding adjusted net realized gains (losses) before tax, amortization of fair value of acquired invested assets and debt before tax, and Chubb integration expenses before tax. We believe the use of this measure is meaningful to show the tax on the underlying performance of our insurance business, by excluding the tax on adjusted net realized gains (losses), the tax on amortization of the fair value adjustments related to purchased invested assets and long-term debt and the tax on Chubb integration expenses. Refer to the definition of core operating income (loss), net of tax above for more information on these adjustments.

Book value per common share, is shareholders’ equity divided by the shares outstanding. Tangible book value per common share, is shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Book value per common share excluding mark-to-market, excludes unrealized investment gains (losses). Tangible book value per common share excluding mark-to-market, excludes goodwill and other intangible assets, net of tax, as well as unrealized investment gains (losses), net of tax. We exclude unrealized investment gains (losses) because the amount of these gains (losses) is heavily influenced by changes in market conditions, including interest rate changes, and we believe that excluding these gains and losses would highlight the underlying growth in book value and tangible book value.

International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because new life deposits are an important component of production and key to our efforts to grow our business.


Reconciliation Non-GAAP		Page 29

Chubb Limited

Non-GAAP Financial Measures—2

(in millions of U.S. dollars, except per share data and ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

Core operating effective tax rate

The following table presents the reconciliation of effective tax rate to the Core operating effective tax rate:


																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Tax expense (benefit), as reported	$	334		$	142		$	(62	)	$	215		$	169		$	629		$	795
Less: tax benefit on amortization of fair value of acquired invested assets and debt		(3	)		(4	)		(5	)		(5	)		(4	)		(17	)		(26	)
Less: tax benefit on Chubb integration expenses		—			—			—			—			(2	)		—			(4	)
Less: tax expense (benefit) on adjusted net realized gains (losses)		78			(26	)		(11	)		(17	)		2			24			15

Tax expense (benefit), adjusted	$	259		$	172		$	(46	)	$	237		$	173		$	622		$	810

Income (loss) before tax, as reported	$	2,752		$	1,336		$	(393	)	$	467		$	1,342		$	4,162		$	5,249
Less: amortization of fair value of acquired invested assets and debt		(21	)		(23	)		(24	)		(27	)		(29	)		(95	)		(140	)
Less: Chubb integration expenses		—			—			—			—			(14	)		—			(23	)
Less: adjusted realized gains (losses)		568			(142	)		31			(956	)		(55	)		(499	)		(522	)
Less: realized gains (losses) related to unconsolidated entities		506			422			(100	)		(7	)		227			821			483

Core operating income (loss) before tax	$	1,699		$	1,079		$	(300	)	$	1,457		$	1,213		$	3,935		$	5,451

Effective tax rate		12.1	%		10.7	%		15.8	%		46.0	%		12.6	%		15.1	%		15.1	%
Adjustment for tax impact of amortization of fair value of acquired invested assets and debt		0.0	%		0.0	%		-0.4	%		0.0	%		0.0	%		0.1	%		0.1	%
Adjustment for tax impact of Chubb integration expenses		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Adjustment for tax impact of adjusted net realized gains (losses)		3.1	%		5.3	%		-0.1	%		-29.7	%		1.6	%		0.6	%		-0.3	%

Core operating effective tax rate		15.2	%		16.0	%		15.3	%		16.3	%		14.2	%		15.8	%		14.9	%


Core operating income The following table presents the reconciliation of Net income (loss) to Core operating income (loss):
																Full Year			Full Year
	4Q-20			3Q-20			2Q-20			1Q-20			4Q-19			2020			2019
Net income (loss), as reported	$	2,418		$	1,194		$	(331	)	$	252		$	1,173		$	3,533		$	4,454
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax		(21	)		(23	)		(24	)		(27	)		(29	)		(95	)		(140	)
Tax benefit on amortization adjustment		3			4			5			5			4			17			26
Chubb integration expenses, pre-tax		—			—			—			—			(14	)		—			(23	)
Tax benefit on Chubb integration expenses		—			—			—			—			2			—			4
Adjusted realized gains (losses), pre-tax		568			(142	)		31			(956	)		(55	)		(499	)		(522	)
Net realized gains (losses) related to unconsolidated entities, pre-tax ⁽¹⁾		506			422			(100	)		(7	)		227			821			483
Tax (expense) benefit on adjusted net realized gains (losses)		(78	)		26			11			17			(2	)		(24	)		(15	)

Core operating income (loss)	$	1,440		$	907		$	(254	)	$	1,220		$	1,040		$	3,313		$	4,641

Catastrophe losses—after-tax	$	271		$	797		$	1,510		$	199		$	353		$	2,777		$	966
Unfavorable (favorable) prior period development (PPD)—after-tax	$	(189	)	$	(126	)	$	52		$	(94	)	$	(199	)	$	(357	)	$	(624	)
Core operating income (loss) per share	$	3.18		$	2.00		$	(0.56	)	$	2.68		$	2.28		$	7.31		$	10.11
Impact of Cats on Core operating income per share—Unfavorable	$	(0.60	)	$	(1.76	)	$	(3.35	)	$	(0.44	)	$	(0.77	)	$	(6.12	)	$	(2.11	)
Impact of PPD on Core operating income per share—Favorable (unfavorable)	$	0.42		$	0.28		$	(0.11	)	$	0.21		$	0.43		$	0.79		$	1.36
Impact of Cats and PPD on Core operating income per share —Unfavorable	$	(0.18	)	$	(1.48	)	$	(3.46	)	$	(0.23	)	$	(0.34	)	$	(5.33	)	$	(0.75	)

(1)	Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


Reconciliation Non-GAAP 2		Page 30

Chubb Limited

Non-GAAP Financial Measures—3

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

Core operating ROE

Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized non-GAAP financial measures. The numerator includes core operating income (loss), net of tax. The denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. For the ROTE calculation, the denominator is also adjusted to exclude goodwill and other intangible assets, net of tax. These measures enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity and tangible equity excluding the effect of unrealized gains and losses on our investments.


	4Q-20			4Q-19			Full Year 2020			Full Year 2019
Net income	$	2,418		$	1,173		$	3,533		$	4,454
Core operating income	$	1,440		$	1,040		$	3,313		$	4,641
Equity—beginning of period, as reported ⁽¹⁾	$	56,413		$	54,572		$	55,259		$	50,300
Less: unrealized gains (losses) on investments, net of deferred tax		3,967			2,613			2,543			(545	)

Equity—beginning of period, as adjusted	$	52,446		$	51,959		$	52,716		$	50,845

Less: goodwill and other intangible assets, net of tax	$	19,802		$	20,010		$	20,012		$	20,054

Equity—beginning of period, as adjusted ex goodwill and other intangible assets	$	32,644		$	31,949		$	32,704		$	30,791

Equity—end of period, as reported	$	59,441		$	55,331		$	59,441		$	55,331
Less: unrealized gains (losses) on investments, net of deferred tax		4,673			2,543			4,673			2,543

Equity—end of period, as adjusted	$	54,768		$	52,788		$	54,768		$	52,788

Less: goodwill and other intangible assets, net of tax		19,916			20,012			19,916			20,012

Equity—end of period, as adjusted ex goodwill and other intangible assets	$	34,852		$	32,776		$	34,852		$	32,776

Weighted average equity, as reported	$	57,927		$	54,952		$	57,350		$	52,816
Weighted average equity, as adjusted	$	53,607		$	52,374		$	53,742		$	51,817
Weighted average equity, as adjusted ex goodwill and other intangible assets	$	33,748		$	32,363		$	33,778		$	31,784
ROE		16.7	%		8.5	%		6.2	%		8.4	%
Core operating ROE		10.7	%		7.9	%		6.2	%		9.0	%
Core operating ROTE		17.1	%		12.8	%		9.8	%		14.6	%
Private equities realized gains, after-tax ⁽²⁾	$	467		$	211		$	690		$	434
Impact of Private equities if included in Core operating ROE—Favorable ⁽²⁾		3.5 pts			1.7 pts			1.3 pts			0.8 pt

Reconciliation of Book Value and Tangible Book Value per Share, excluding mark-to-market
	December 31			September 30			December 31			QTD			Full Year
	2020			2020			2019			% Change			% Change
Book value	$	59,441		$	56,413		$	55,331
Less: unrealized gains (losses) on investments, net of deferred tax		4,673			3,967			2,543

Book value excluding mark-to-market		54,768			52,446			52,788
Less: goodwill and other intangible assets, net of tax		19,916			19,802			20,012

Tangible book value excluding mark-to-market	$	34,852		$	32,644		$	32,776

Denominator		450,732,625			451,376,194			451,971,567

Book value per share excluding mark-to-market	$	121.51		$	116.19		$	116.80			4.6	%		4.0	%
Tangible book value per share excluding mark-to-market	$	77.32		$	72.32		$	72.52			6.9	%		6.6	%

(1)	January 1, 2020 included a $72 million after-tax reduction to beginning equity principally related to the adoption of the current expected credit loss accounting guidance.

(2)	We record the change in the fair value mark and gains (losses) on sales of private equity funds as realized gains (losses) instead of investment income.


Reconciliation Non-GAAP 3		Page 31

Chubb Limited

Non-GAAP Financial Measures—4

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio

The P&C combined ratio includes the impact of 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 will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.

The following tables present the calculation of combined ratio, as reported, for each segment to P&C combined ratio, adjusted for catastrophe losses (Cats) and prior period development (PPD).


Q4 2020		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	2,006		$	781		$	324		$	1,320		$	121		$	93		$	4,645
Realized (gains) losses on crop derivatives			—			—			(3	)		—			—			—			(3	)

Adjusted losses and loss expenses	A	$	2,006		$	781		$	321		$	1,320		$	121		$	93		$	4,642

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(33	)		(98	)		(12	)		(121	)		(32	)		—			(296	)
Reinstatement premiums collected (expensed) on catastrophe losses			—			—			(1	)		1			3			—			3

Catastrophe losses, gross of related adjustments			(33	)		(98	)		(11	)		(122	)		(35	)		—			(299	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			251			(15	)		14			50			—			(94	)		206
Expense adjustments—unfavorable (favorable)			—			—			6			—			—			—			6
PPD reinstatement premiums—unfavorable (favorable)			—			(10	)		—			—			—			—			(10	)

PPD, gross of related adjustments—favorable (unfavorable)			251			(25	)		20			50			—			(94	)		202

CAY loss and loss expense ex Cats	B	$	2,224		$	658		$	330		$	1,248		$	86		$	(1	)	$	4,545

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	745		$	321		$	24		$	940		$	56		$	89		$	2,175
Expense adjustments—favorable (unfavorable)			—			—			(6	)		—			—			—			(6	)

Policy acquisition costs and administrative expenses, adjusted	D	$	745		$	321		$	18		$	940		$	56		$	89		$	2,169

Denominator
Net premiums earned	E	$	3,537		$	1,243		$	381		$	2,447		$	178					$	7,786
Reinstatement premiums (collected) expensed on catastrophe losses			—			—			1			(1	)		(3	)					(3	)
PPD reinstatement premiums—unfavorable (favorable)			—			(10	)		—			—			—						(10	)

Net premiums earned excluding adjustments	F	$	3,537		$	1,233		$	382		$	2,446		$	175					$	7,773

P&C combined ratio
Loss and loss expense ratio	A/E		56.7	%		62.8	%		84.1	%		53.9	%		68.3	%					59.6	%
Policy acquisition cost and administrative expense ratio	C/E		21.1	%		25.8	%		6.4	%		38.5	%		31.3	%					28.0	%

P&C combined ratio			77.8	%		88.6	%		90.5	%		92.4	%		99.6	%					87.6	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		62.8	%		53.4	%		86.3	%		51.0	%		49.3	%					58.5	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.1	%		25.9	%		4.8	%		38.5	%		32.0	%					27.9	%

CAY P&C combined ratio ex Cats			83.9	%		79.3	%		91.1	%		89.5	%		81.3	%					86.4	%

Combined ratio
Combined ratio																					87.6	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					87.6	%

Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.


Reconciliation Non-GAAP 4		Page 32

Chubb Limited

Non-GAAP Financial Measures—5

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


Full Year 2020		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	10,129		$	3,187		$	1,545		$	5,255		$	435		$	435		$	20,986
Realized (gains) losses on crop derivatives			—			—			(1	)		—			—			—			(1	)

Adjusted losses and loss expenses	A	$	10,129		$	3,187		$	1,544		$	5,255		$	435		$	435		$	20,985

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(1,871	)		(534	)		(36	)		(705	)		(113	)		—			(3,259	)
Reinstatement premiums collected (expensed) on catastrophe losses			(3	)		(1	)		(1	)		(15	)		10			—			(10	)

Catastrophe losses, gross of related adjustments			(1,868	)		(533	)		(35	)		(690	)		(123	)		—			(3,249	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			702			(63	)		10			150			29			(433	)		395
Net premiums earned adjustments on PPD—unfavorable (favorable)			32			—			3			—			—			—			35
Expense adjustments—unfavorable (favorable)			(1	)		—			6			—			(2	)		—			3
PPD reinstatement premiums—unfavorable (favorable)			—			(18	)		—			—			(1	)		—			(19	)

PPD, gross of related adjustments—favorable (unfavorable)			733			(81	)		19			150			26			(433	)		414

CAY loss and loss expense ex Cats	B	$	8,994		$	2,573		$	1,528		$	4,715		$	338		$	2		$	18,150

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	2,948		$	1,244		$	132		$	3,602		$	211		$	303		$	8,440
Expense adjustments—favorable (unfavorable)			1			—			(6	)		—			2			—			(3	)

Policy acquisition costs and administrative expenses, adjusted	D	$	2,949		$	1,244		$	126		$	3,602		$	213		$	303		$	8,437

Denominator
Net premiums earned	E	$	13,964		$	4,866		$	1,822		$	9,285		$	698					$	30,635
Reinstatement premiums (collected) expensed on catastrophe losses			3			1			1			15			(10	)					10
Net premiums earned adjustments on PPD—unfavorable (favorable)			32			—			3			—			—						35
PPD reinstatement premiums—unfavorable (favorable)			—			(18	)		—			—			(1	)					(19	)

Net premiums earned excluding adjustments	F	$	13,999		$	4,849		$	1,826		$	9,300		$	687					$	30,661

P&C combined ratio
Loss and loss expense ratio	A/E		72.5	%		65.5	%		84.7	%		56.6	%		62.3	%					68.5	%
Policy acquisition cost and administrative expense ratio	C/E		21.2	%		25.6	%		7.3	%		38.8	%		30.2	%					27.6	%

P&C combined ratio			93.7	%		91.1	%		92.0	%		95.4	%		92.5	%					96.1	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		64.2	%		53.1	%		83.7	%		50.7	%		49.1	%					59.2	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.1	%		25.6	%		6.8	%		38.7	%		31.0	%					27.5	%

CAY P&C combined ratio ex Cats			85.3	%		78.7	%		90.5	%		89.4	%		80.1	%					86.7	%

Combined ratio
Combined ratio																					96.1	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					96.1	%


Reconciliation Non-GAAP 5		Page 33

Chubb Limited

Non-GAAP Financial Measures—6

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


Q4 2019		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	1,968		$	865		$	453		$	1,221		$	107		$	75		$	4,689
Realized (gains) losses on crop derivatives			—			—			—			—			—			—			—

Adjusted losses and loss expenses	A	$	1,968		$	865		$	453		$	1,221		$	107		$	75		$	4,689

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(102	)		(225	)		(1	)		(87	)		(15	)		—			(430	)
Reinstatement premiums collected (expensed) on catastrophe losses			—			(11	)		—			(4	)		1			—			(14	)

Catastrophe losses, gross of related adjustments			(102	)		(214	)		(1	)		(83	)		(16	)		—			(416	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			224			7			37			43			(4	)		(74	)		233
Net premiums earned adjustments on PPD—unfavorable (favorable)			—			—			4			—			—			—			4
Expense adjustments—unfavorable (favorable)			—			—			(10	)		—			—			—			(10	)
PPD reinstatement premiums—unfavorable (favorable)			—			—			—			—			(1	)		—			(1	)

PPD, gross of related adjustments—favorable (unfavorable)			224			7			31			43			(5	)		(74	)		226

CAY loss and loss expense ex Cats	B	$	2,090		$	658		$	483		$	1,181		$	86		$	1		$	4,499

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	727		$	315		$	(9	)	$	908		$	51		$	108		$	2,100
Expense adjustments—favorable (unfavorable)			—			—			10			—			—			—			10

Policy acquisition costs and administrative expenses, adjusted	D	$	727		$	315		$	1		$	908		$	51		$	108		$	2,110

Denominator
Net premiums earned	E	$	3,262		$	1,185		$	421		$	2,287		$	167					$	7,322
Reinstatement premiums (collected) expensed on catastrophe losses			—			11			—			4			(1	)					14
Net premiums earned adjustments on PPD—unfavorable (favorable)			—			—			4			—			—						4
PPD reinstatement premiums—unfavorable (favorable)			—			—			—			—			(1	)					(1	)

Net premiums earned excluding adjustments	F	$	3,262		$	1,196		$	425		$	2,291		$	165					$	7,339

P&C combined ratio
Loss and loss expense ratio	A/E		60.3	%		73.0	%		107.6	%		53.3	%		64.2	%					64.0	%
Policy acquisition cost and administrative expense ratio	C/E		22.3	%		26.6	%		-2.2	%		39.8	%		30.4	%					28.7	%

P&C combined ratio			82.6	%		99.6	%		105.4	%		93.1	%		94.6	%					92.7	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		64.0	%		55.1	%		113.6	%		51.5	%		52.5	%					61.3	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		22.4	%		26.3	%		0.3	%		39.7	%		30.8	%					28.7	%

CAY P&C combined ratio ex Cats			86.4	%		81.4	%		113.9	%		91.2	%		83.3	%					90.0	%

Combined ratio
Combined ratio																					92.7	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					92.7	%


Reconciliation Non-GAAP 6		Page 34

Chubb Limited

Non-GAAP Financial Measures—7

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


Full Year 2019		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	8,206		$	3,043		$	1,608		$	4,606		$	352		$	158		$	17,973
Realized (gains) losses on crop derivatives			—			—			8			—			—			—			8

Adjusted losses and loss expenses	A	$	8,206		$	3,043		$	1,616		$	4,606		$	352		$	158		$	17,981

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(421	)		(554	)		(8	)		(156	)		(48	)		—			(1,187	)
Reinstatement premiums collected (expensed) on catastrophe losses			—			(11	)		—			(4	)		3			—			(12	)

Catastrophe losses, gross of related adjustments			(421	)		(543	)		(8	)		(152	)		(51	)		—			(1,175	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			649			95			80			92			29			(153	)		792
Net premiums earned adjustments on PPD—unfavorable (favorable)			38			—			36			—			1			—			75
Expense adjustments—unfavorable (favorable)			(3	)		—			(13	)		—			(1	)		—			(17	)
PPD reinstatement premiums—unfavorable (favorable)			(1	)		(4	)		—			1			(1	)		—			(5	)

PPD, gross of related adjustments—favorable (unfavorable)			683			91			103			93			28			(153	)		845

CAY loss and loss expense ex Cats	B	$	8,468		$	2,591		$	1,711		$	4,547		$	329		$	5		$	17,651

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	2,859		$	1,234		$	90		$	3,534		$	204		$	319		$	8,240
Expense adjustments—favorable (unfavorable)			3			—			13			—			1			—			17

Policy acquisition costs and administrative expenses, adjusted	D	$	2,862		$	1,234		$	103		$	3,534		$	205		$	319		$	8,257

Denominator
Net premiums earned	E	$	12,922		$	4,694		$	1,795		$	8,882		$	654					$	28,947
Reinstatement premiums (collected) expensed on catastrophe losses			—			11			—			4			(3	)					12
Net premiums earned adjustments on PPD—unfavorable (favorable)			38			—			36			—			1						75
PPD reinstatement premiums—unfavorable (favorable)			(1	)		(4	)		—			1			(1	)					(5	)

Net premiums earned excluding adjustments	F	$	12,959		$	4,701		$	1,831		$	8,887		$	651					$	29,029

P&C combined ratio
Loss and loss expense ratio	A/E		63.5	%		64.8	%		90.1	%		51.9	%		53.9	%					62.1	%
Policy acquisition cost and administrative expense ratio	C/E		22.1	%		26.3	%		5.0	%		39.7	%		31.1	%					28.5	%

P&C combined ratio			85.6	%		91.1	%		95.1	%		91.6	%		85.0	%					90.6	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		65.3	%		55.1	%		93.5	%		51.2	%		50.6	%					60.8	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		22.1	%		26.3	%		5.6	%		39.7	%		31.5	%					28.4	%

CAY P&C combined ratio ex Cats			87.4	%		81.4	%		99.1	%		90.9	%		82.1	%					89.2	%

Combined ratio
Combined ratio																					90.6	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					90.6	%


Reconciliation Non-GAAP 7		Page 35

Chubb Limited

Glossary

Chubb Limited Consolidated comprises all segments including Corporate.

P&C combined ratio: The sum of the loss and loss expense ratio, policy acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives.

Book value per common share: Shareholders’ equity divided by the shares outstanding.

Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding.

Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

Average yield on invested assets: Adjusted net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

Total capitalization: The sum of the short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

Chubb integration expenses: Chubb integration expenses comprise legal and professional fees and all other costs directly related to the integration activities of the Chubb Corp acquisition. Chubb integration expenses are incurred by the overall company and are therefore included in Corporate. These costs are not related to the on-going business activities of the segments and are therefore excluded from our definition of segment income.

Catastrophe losses (Cats): We generally define catastrophe loss events consistent with the definition of the Property Claims Service (PCS) for events in the U.S. and Canada. PCS defines a catastrophe as an event that causes damage of $25 million or more in insured losses and affects a significant number of insureds, including from pandemics such as COVID-19. For events outside of the U.S. and Canada, we generally use a similar definition. Catastrophe loss events are events that occurred in the current calendar year only. Changes in catastrophe loss estimates in the current calendar year that relate to loss events that occurred in previous calendar years are considered 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.

Reinstatement premiums are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences. The reinstatement premium amount is typically a pro rata portion of the original ceded premium paid based on how much of the reinsurance limit had been exhausted.

Net premiums earned adjustments within prior period development are adjustments to the initial premium earned on retrospectively rated policies based on actual claim experience that develops after the policy period ends. The premium adjustments correlate to the prior period loss development on these same policies and are fully earned in the period the adjustments are recorded.

Prior period expense adjustments typically relate to either profit commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies.

Segment income (loss) includes underwriting income (loss), adjusted net investment income, other income (expense) – operating, and amortization expense of purchased intangibles.

Commercial P&C lines includes Commercial P&C, Agriculture and Reinsurance lines of business.

Consumer P&C lines includes Personal and Global accident and health (A&H) lines of business.

NM: Not meaningful.


Glossary		Page 36

Chubb Ltd - FORM 8-K - EX-99.2 - February 2, 2021

Attached files

Chubb Ltd Reports