Chubb Ltd [CB] Filings

10-Q 1 cb-20240331.htm 10-Q cb-20240331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

Commission File No. 1-11778

CHUBB LIMITED

(Exact name of registrant as specified in its charter)


Switzerland			98-0091805
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

Baerengasse 32
Zurich, Switzerland CH-8001
(Address of principal executive offices) (Zip Code)

+41 (0)43 456 76 00

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value CHF 0.50 per share	CB	New York Stock Exchange
Guarantee of Chubb INA Holdings LLC 0.30% Senior Notes due 2024	CB/24A	New York Stock Exchange
Guarantee of Chubb INA Holdings LLC 0.875% Senior Notes due 2027	CB/27	New York Stock Exchange
Guarantee of Chubb INA Holdings LLC 1.55% Senior Notes due 2028	CB/28	New York Stock Exchange
Guarantee of Chubb INA Holdings LLC 0.875% Senior Notes due 2029	CB/29A	New York Stock Exchange
Guarantee of Chubb INA Holdings LLC 1.40% Senior Notes due 2031	CB/31	New York Stock Exchange
Guarantee of Chubb INA Holdings LLC 2.50% Senior Notes due 2038	CB/38A	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

The number of registrant’s Common Shares (CHF 0.50 par value) outstanding as of April 19, 2024 was 406,061,045.

Table of Contents

CHUBB LIMITED

INDEX TO FORM 10-Q



Part I.	FINANCIAL INFORMATION		Page
Item 1.	Financial Statements:
	Consolidated Balance Sheets (Unaudited) March 31, 2024 and December 31, 2023		3
	Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, 2024 and 2023		4
	Consolidated Statements of Shareholders' Equity (Unaudited) Three Months Ended March 31, 2024 and 2023		5
	Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, 2024 and 2023		6
	Notes to Consolidated Financial Statements (Unaudited)
	Note 1.	General and significant accounting policies	7
	Note 2.	Acquisitions	8
	Note 3.	Investments	9
	Note 4.	Fair value measurements	14
	Note 5.	Reinsurance	20
	Note 6.	Deferred acquisition costs	21
	Note 7.	Unpaid losses and loss expenses	22
	Note 8.	Future policy benefits	24
	Note 9.	Policyholders' account balances, Separate accounts, and Unearned revenue liabilities	28
	Note 10.	Market risk benefits	32
	Note 11.	Debt	33
	Note 12.	Commitments, contingencies, and guarantees	33
	Note 13.	Shareholders' equity	39
	Note 14.	Share-based compensation	42
	Note 15.	Postretirement benefits	42
	Note 16.	Other income and expense	43
	Note 17.	Segment information	44
	Note 18.	Earnings per share	46

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		47
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		79
Item 4.	Controls and Procedures		82
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings		83
Item 1A.	Risk Factors		83
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities		83
Item 5.	Other Information		83
Item 6.	Exhibits		84

Table of Contents

PART I FINANCIAL INFORMATION


ITEM 1. Financial Statements

CONSOLIDATED BALANCE SHEETS (Unaudited)

Chubb Limited and Subsidiaries


	March 31		December 31
(in millions of U.S. dollars, except share and per share data)	2024		2023

Assets
Investments
Short-term investments, at fair value (amortized cost – $5,108 and $4,551) (includes variable interest entities (VIE) balances of $65 and $217)	$	5,107	$	4,551
Fixed maturities available-for-sale, at fair value, net of valuation allowance - $115 and $156 (amortized cost – $113,479 and $111,128)	108,289		106,571
Private debt held-for-investment, at amortized cost, net of valuation allowance - $5 and $4	2,708		2,553
Equity securities, at fair value (includes VIE balances of $1,163 and $1,078)	3,769		3,455
Private equities (includes VIE balances of $22 and $21)	14,281		14,078
Other investments (includes VIE balances of $4,408 and $3,773)	6,216		5,527
Total investments	140,370		136,735
Cash, including restricted cash $143 and $172 (includes VIE balances of $127 and $117)	2,651		2,621

Securities lending collateral	1,708		1,299
Accrued investment income	1,090		1,086
Insurance and reinsurance balances receivable, net of valuation allowance - $47 and $53	13,991		13,379
Reinsurance recoverable on losses and loss expenses, net of valuation allowance - $375 and $367	19,109		19,952
Reinsurance recoverable on policy benefits	272		280
Deferred policy acquisition costs	7,537		7,152

Value of business acquired	3,617		3,674
Goodwill	19,696		19,686
Other intangible assets	6,709		6,775
Deferred tax assets	1,761		1,741
Prepaid reinsurance premiums	3,241		3,221
Separate account assets	5,864		5,573
Other assets (includes VIE balances of $14 and $33)	7,251		7,508
Total assets	$	234,867	$	230,682
Liabilities
Unpaid losses and loss expenses	$	80,341	$	80,122
Unearned premiums	22,728		22,051
Future policy benefits	14,375		13,888
Market risk benefits	611		771
Policyholders' account balances	7,560		7,462
Separate account liabilities	5,864		5,573
Insurance and reinsurance balances payable	8,505		8,302

Securities lending payable	1,708		1,299

Accounts payable, accrued expenses, and other liabilities (includes VIE balances of $68 and $18)	8,357		8,332

Deferred tax liabilities	1,543		1,555
Repurchase agreements (includes VIE balances of $1,229 and $1,009)	3,022		2,833
Short-term debt	2,265		1,460
Long-term debt	13,248		13,035
Trust preferred securities	309		308
Total liabilities	170,436		166,991
Commitments and contingencies (refer to Note 12)
Shareholders’ equity
Common Shares (CHF 0.50 par value; 431,451,586 shares issued; 406,033,066 and 405,269,637 shares outstanding)	241		241
Common Shares in treasury (25,418,520 and 26,181,949 shares)	(4,461)		(4,400)
Additional paid-in capital	15,188		15,665
Retained earnings	56,953		54,810
Accumulated other comprehensive income (loss) (AOCI)	(7,386)		(6,809)
Total Chubb shareholders’ equity	60,535		59,507
Noncontrolling interests (includes VIE balances of $2,943 and $2,705)	3,896		4,184
Total shareholders' equity	64,431		63,691
Total liabilities and shareholders’ equity	$	234,867	$	230,682

See accompanying notes to the Consolidated Financial Statements

Table of Contents

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)

Chubb Limited and Subsidiaries


	Three Months Ended
	March 31
(in millions of U.S. dollars, except per share data)		2024		2023

Revenues
Net premiums written		$	12,221	$	10,710
Increase in unearned premiums		(638)		(568)
Net premiums earned		11,583		10,142
Net investment income		1,391		1,107
Net realized gains (losses)		(101)		(77)
Market risk benefits gains (losses)		21		(115)
Total revenues		12,894		11,057
Expenses
Losses and loss expenses		5,727		5,148
Policy benefits (includes remeasurement gains (losses) of $(19) and $1)		1,180		797
Policy acquisition costs		2,207		1,948
Administrative expenses		1,070		930
Interest expense		178		160
Other (income) expense		(191)		(296)
Amortization of purchased intangibles		80		72
Cigna integration expenses		7		22
Total expenses		10,258		8,781
Income before income tax		2,636		2,276
Income tax expense		342		384
Net income		$	2,294	$	1,892
Net income attributable to noncontrolling interests		151		—
Net income attributable to Chubb		$	2,143	$	1,892
Other comprehensive income (loss)


Change in:
Unrealized appreciation (depreciation)		$	(677)	$	1,786
Current discount rate on future policy benefits		(53)		(151)
Instrument-specific credit risk on market risk benefits		5		(3)
Cumulative foreign currency translation adjustment		80		(177)

Other, including postretirement benefit liability adjustment		31		(33)
Other comprehensive income (loss), before income tax		(614)		1,422
Income tax (expense) benefit related to OCI items		9		(132)
Other comprehensive income (loss)		(605)		1,290
Comprehensive income		1,689		3,182
Comprehensive income attributable to noncontrolling interests		123		—
Comprehensive income attributable to Chubb		$	1,566	$	3,182
Earnings per share
Basic earnings per share attributable to Chubb		$	5.28	$	4.57
Diluted earnings per share attributable to Chubb		$	5.23	$	4.53

See accompanying notes to the Consolidated Financial Statements

Table of Contents

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

Chubb Limited and Subsidiaries


	Three Months Ended
	March 31
(in millions of U.S. dollars)		2024		2023
Common Shares



Balance – beginning and end of period		$	241	$	10,346
Common Shares in treasury
Balance – beginning of period		(4,400)		(5,113)
Common Shares repurchased		(316)		(428)

Net shares issued under employee share-based compensation plans		255		200
Balance – end of period		(4,461)		(5,341)
Additional paid-in capital
Balance – beginning of period		15,665		7,166
Net shares issued under employee share-based compensation plans		(159)		(211)
Exercise of stock options		(19)		(13)
Share-based compensation expense		82		82

Net decrease due to acquisitions		(31)		—
Funding of dividends declared to Retained earnings		(350)		(344)
Balance – end of period		15,188		6,680
Retained earnings
Balance – beginning of period		54,810		48,305
Net income attributable to Chubb		2,143		1,892

Funding of dividends declared from Additional paid-in capital		350		344
Dividends declared on Common Shares		(350)		(344)
Balance – end of period		56,953		50,197
Accumulated other comprehensive income (loss) (AOCI)
Balance – beginning of period		(6,809)		(10,185)
Other comprehensive income (loss)		(577)		1,290
Balance – end of period		(7,386)		(8,895)
Total Chubb shareholders’ equity		$	60,535	$	52,987
Noncontrolling interests
Balance – beginning of period		$	4,184	$	—
Net decrease due to acquisitions		(411)		—
Net income attributable to noncontrolling interests		151		—
Other comprehensive loss attributable to noncontrolling interests		(28)		—
Balance – end of period		$	3,896	$	—
Total shareholders' equity		$	64,431	$	52,987

See accompanying notes to the Consolidated Financial Statements

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Chubb Limited and Subsidiaries


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Cash flows from operating activities
Net income	$	2,294	$	1,892
Adjustments to reconcile net income to net cash flows from operating activities
Net realized (gains) losses	101		77
Market risk benefits (gains) losses	(21)		115
Amortization of premiums/discounts on fixed maturities	(80)		(14)

Amortization of purchased intangibles	80		72
Equity in net income of partially-owned entities	(184)		(340)
Deferred income taxes	(24)		9
Unpaid losses and loss expenses	175		(14)
Unearned premiums	633		591
Future policy benefits	445		136
Insurance and reinsurance balances payable	155		(9)
Accounts payable, accrued expenses, and other liabilities	(267)		(390)
Income taxes	257		128
Insurance and reinsurance balances receivable	(586)		(402)
Reinsurance recoverable	852		622
Deferred policy acquisition costs	(390)		(254)
Net purchases of investments by consolidated investment products	(404)		—
Other	184		32
Net cash flows from operating activities	3,220		2,251
Cash flows from investing activities
Purchases of fixed maturities available-for-sale	(8,617)		(7,169)

Purchases of fixed maturities held-to-maturity	—		(88)
Purchases of equity securities	(752)		(135)
Sales of fixed maturities available-for-sale	4,368		3,854


Sales of equity securities	520		43
Maturities and redemptions of fixed maturities available-for-sale	2,149		1,541
Maturities and redemptions of fixed maturities held-to-maturity	—		472
Net change in short-term investments	(708)		1,256
Net derivative instruments settlements	(17)		(38)
Private equity contributions	(248)		(384)
Private equity distributions	177		273
Acquisition of subsidiaries	(236)		(23)




Other	(382)		(172)
Net cash flows used for investing activities	(3,746)		(570)
Cash flows from financing activities
Dividends paid on Common Shares	(349)		(345)
Common Shares repurchased	(404)		(545)
Proceeds from issuance of long-term debt	996		—
Proceeds from issuance of repurchase agreements	1,062		1,308
Repayment of long-term debt	—		(475)
Repayment of repurchase agreements	(984)		(1,307)
Proceeds from share-based compensation plans	163		55
Policyholder contract deposits	336		95
Policyholder contract withdrawals	(245)		(101)
Third-party capital invested into consolidated investment products	509		—
Third-party capital distributed by consolidated investment products	(413)		—

Other	(109)		(109)
Net cash flows from (used for) financing activities	562		(1,424)
Effect of foreign currency rate changes on cash and restricted cash	(6)		(2)
Net increase in cash and restricted cash	30		255
Cash and restricted cash – beginning of period	2,621		2,127
Cash and restricted cash – end of period	$	2,651	$	2,382
Supplemental cash flow information
Taxes paid	$	89	$	219
Interest paid	$	112	$	99

See accompanying notes to the Consolidated Financial Statements

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Chubb Limited and Subsidiaries

1. General and significant accounting policies

a) Basis of presentation

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 17 for additional information.

The interim unaudited consolidated financial statements include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), over which Chubb exercises control, including Huatai Group, our majority-owned subsidiary, and minority-owned entities such as variable interest entities (VIEs) in which Chubb is considered the primary beneficiary. Noncontrolling interests on the Consolidated Financial Statements represent the portion of majority-owned subsidiaries and VIEs in which we do not have direct equity ownership. These interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

On July 1, 2023, Chubb discontinued equity method accounting for its investment in Huatai Group upon obtaining a controlling interest and applied consolidation accounting. Therefore, effective July 1, 2023, business activity for, and the financial position of, Huatai Group is reported at 100 percent on the Consolidated Financial Statements. At March 31, 2024, and December 31, 2023, our aggregate ownership interest in Huatai Group was approximately 85.5 percent and 76.5 percent, respectively. The relevant amounts attributable to shareholders other than Chubb are reflected in the Consolidated Financial Statements under the captions Noncontrolling interests, Net income (loss) attributable to noncontrolling interests, and Comprehensive income (loss) attributable to noncontrolling interests. Refer to Note 2 for additional information on the acquisition of Huatai Group.

Huatai Group's life insurance and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment. Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate.

The results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 Form 10-K.

b) Goodwill

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

c) New Accounting Pronouncements

Accounting guidance not yet adopted

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (FASB) issued guidance that requires expanded reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Retrospective application is required. We are currently evaluating the impact of this disclosure-only requirement.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued guidance that requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. We are currently evaluating the impact of this disclosure-only requirement.

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

2. Acquisitions

Huatai Group

Huatai Insurance Group Co., Ltd. (Huatai Group) is a Chinese financial services holding company and the parent company of, among others, Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), Huatai Life Insurance Co., Ltd. (Huatai Life), Huatai Asset Management Co., Ltd., and Huatai Baoxing Fund Management Co., Ltd., of which Huatai Group owns 100 percent, 80 percent, 91 percent, and 85 percent, respectively (collectively, Huatai).

On July 1, 2023, Chubb increased ownership interest from approximately 64.2 percent to approximately 69.6 percent. At that time, Chubb discontinued the equity method of accounting and applied consolidation accounting. Refer to Note 2 to the Consolidated Financial Statements in our 2023 Form 10-K for additional information.

In the first quarter of 2024, we closed on incremental ownership interests of approximately 9.0 percent for $555 million, $319 million of which was previously paid prior to 2024, and $236 million was paid in 2024. Our aggregate ownership interest in Huatai Group was approximately 85.5 percent as of March 31, 2024. Chubb has outstanding agreements for approximately 0.6 percent of incremental ownership interests, pending completion of certain closing conditions. We have paid deposits of $12 million related to these outstanding agreements, with approximately $24 million remaining to be paid upon closing, based on current exchange rates.

The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of a controlling majority interest in Huatai Group that occurred on July 1, 2023, had instead occurred on January 1, 2022. The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition of a controlling majority interest been consummated on January 1, 2022, nor is it necessarily indicative of future operating results. Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets.


	Three Months Ended
Pro forma:	March 31
(in millions of U.S. dollars)	2023
Net premiums earned	$	10,553
Total revenues	$	11,529
Net income	$	1,900
Net income attributable to Chubb	$	1,890

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

3. Investments

a) Fixed maturities


March 31, 2024	Amortized Cost		Valuation Allowance		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
(in millions of U.S. dollars)
Available-for-sale
U.S. Treasury / Agency	$	3,058	$	—	$	5	$	(164)	$	2,899
Non-U.S.	36,962		(41)		605		(1,381)		36,145
Corporate and asset-backed securities	45,567		(73)		306		(2,353)		43,447
Mortgage-backed securities	25,696		(1)		89		(2,029)		23,755
Municipal	2,196		—		7		(160)		2,043
	$	113,479	$	(115)	$	1,012	$	(6,087)	$	108,289


December 31, 2023	Amortized Cost		Valuation Allowance		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
(in millions of U.S. dollars)
Available-for-sale
U.S. Treasury / Agency	$	3,721	$	—	$	13	$	(144)	$	3,590
Non-U.S.	35,918		(49)		592		(1,297)		35,164
Corporate and asset-backed securities	44,695		(104)		390		(2,151)		42,830
Mortgage-backed securities	23,720		(3)		143		(1,802)		22,058
Municipal	3,074		—		10		(155)		2,929
	$	111,128	$	(156)	$	1,148	$	(5,549)	$	106,571

The following table presents fixed maturities by contractual maturity:


	March 31, 2024				December 31, 2023
(in millions of U.S. dollars)	Net Carrying Value		Fair Value		Net Carrying Value		Fair Value
Available-for-sale
Due in 1 year or less	$	4,521	$	4,521	$	4,729	$	4,729
Due after 1 year through 5 years	33,533		33,533		33,573		33,573
Due after 5 years through 10 years	28,198		28,198		28,480		28,480
Due after 10 years	18,282		18,282		17,731		17,731
	84,534		84,534		84,513		84,513
Mortgage-backed securities	23,755		23,755		22,058		22,058
	$	108,289	$	108,289	$	106,571	$	106,571

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

b) Gross unrealized loss

Fixed maturities in an unrealized loss position at March 31, 2024, and December 31, 2023, comprised both investment grade and below investment grade securities for which fair value declined, principally due to rising interest rates since the date of purchase. Refer to Note 1 f) in the 2023 Form 10-K for further information on factors considered in the evaluation of expected credit losses.

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following tables present, for available-for-sale (AFS) fixed maturities in an unrealized loss position (including securities on loan) that are not deemed to have expected credit losses, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:


	0 – 12 Months				Over 12 Months				Total
March 31, 2024	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
(in millions of U.S. dollars)
U.S. Treasury / Agency	$	632	$	(13)	$	2,007	$	(151)	$	2,639	$	(164)
Non-U.S.	3,793		(64)		15,928		(1,079)		19,721		(1,143)
Corporate and asset-backed securities	4,675		(71)		19,646		(1,487)		24,321		(1,558)
Mortgage-backed securities	4,907		(82)		13,783		(1,919)		18,690		(2,001)
Municipal	443		(12)		1,218		(148)		1,661		(160)
Total AFS fixed maturities	$	14,450	$	(242)	$	52,582	$	(4,784)	$	67,032	$	(5,026)


	0 – 12 Months				Over 12 Months				Total
December 31, 2023	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
(in millions of U.S. dollars)

U.S. Treasury / Agency	$	463	$	(9)	$	2,504	$	(135)	$	2,967	$	(144)
Non-U.S.	2,464		(43)		15,971		(957)		18,435		(1,000)
Corporate and asset-backed securities	2,866		(51)		20,334		(1,194)		23,200		(1,245)
Mortgage-backed securities	1,659		(58)		13,831		(1,706)		15,490		(1,764)
Municipal	1,117		(15)		1,310		(137)		2,427		(152)
Total AFS fixed maturities	$	8,569	$	(176)	$	53,950	$	(4,129)	$	62,519	$	(4,305)

At March 31, 2024, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $543 million necessary due to limitations on the utilization of these losses. As part of evaluating whether it was more likely than not that we could realize these losses, we considered realized gains, carryback ability and available tax planning strategies.

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Chubb Limited and Subsidiaries

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Available-for-sale
Valuation allowance for expected credit losses - beginning of period	$	156	$	169


Provision for expected credit loss	31		59

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

Recovery of expected credit loss	(67)		(58)
Valuation allowance for expected credit losses - end of period	$	115	$	168
Held-to-maturity
Valuation allowance for expected credit losses - beginning of period	$	—	$	34





Recovery of expected credit loss	—		(1)
Valuation allowance for expected credit losses - end of period	$	—	$	33
Private debt held-for-investment
Valuation allowance for expected credit losses - beginning of period	$	4	$	—
Provision for expected credit loss	1		—
Valuation allowance for expected credit losses - end of period	$	5	$	—

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Chubb Limited and Subsidiaries

c) Net realized gains (losses)

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Fixed maturities:



Gross realized gains	$	16	$	2
Gross realized losses	(141)		(159)
Other investments - Fixed maturities	168		—
Net (provision for) recovery of expected credit losses	40		2
Impairment (1)	(34)		(25)
Total fixed maturities	49		(180)
Equity securities	3		11

Private equities (less than 3 percent ownership)	31		15
Foreign exchange	(131)		131
Investment and embedded derivative instruments	(43)		(46)
Other derivative instruments	(2)		(1)
Other	(8)		(7)
Net realized gains (losses) (pre-tax)	$	(101)	$	(77)

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

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


									Three Months Ended
									March 31
	2024								2023
(in millions of U.S. dollars)	Equity Securities		Other Investments		Private Equities		Total		Equity Securities		Private Equities		Total
Net gains (losses) recognized during the period	$	3	$	168	$	31	$	202	$	11	$	15	$	26
Less: Net gains (losses) recognized from sales of securities	(3)		—		—		(3)		(5)		—		(5)
Unrealized gains (losses) recognized for securities still held at reporting date	$	6	$	168	$	31	$	205	$	16	$	15	$	31

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Chubb Limited and Subsidiaries

d) Private equities

Private equities include investment funds and limited partnerships measured at fair value using net asset value (NAV) as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments for private equities:


	Expected Liquidation Period of Underlying Assets	March 31, 2024				December 31, 2023
(in millions of U.S. dollars)		Fair Value		Maximum Future Funding Commitments		Fair Value		Maximum Future Funding Commitments
Financial	2 to 10 Years	$	1,289	$	341	$	1,241	$	364
Real assets	2 to 13 Years	2,095		424		2,137		445
Distressed	2 to 8 Years	1,218		928		1,206		936
Private credit	3 to 8 Years	328		296		331		298
Traditional	2 to 14 Years	9,052		3,916		8,873		4,167
Vintage	1 to 3 Years	67		—		72		—
Investment funds	Not Applicable	232		—		218		—
		$	14,281	$	5,905	$	14,078	$	6,210

Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.


Investment Category:						Consists of investments in private equity funds:
Financial						targeting financial services companies, such as financial institutions and insurance services worldwide
Real assets						targeting investments related to hard physical assets, such as real estate, infrastructure, and natural resources
Distressed						targeting distressed corporate debt/credit and equity opportunities in the U.S.
Private credit						targeting privately originated corporate debt investments, including senior secured loans and subordinated bonds
Traditional						employing traditional private equity investment strategies, such as buyout and growth equity globally
Vintage						funds where the initial fund term has expired

Investment funds employ various investment strategies, such as long/short equity and arbitrage/distressed. Included in this category are investments for which Chubb has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If Chubb wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when Chubb cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, Chubb must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds are up to 270 days. Chubb can redeem its investment funds without consent from the investment fund managers.

e) Restricted assets

Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets at March

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Chubb Limited and Subsidiaries

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

The following table presents the components of restricted assets:


	March 31		December 31
(in millions of U.S. dollars)	2024		2023
Trust funds	$	8,626	$	8,482
Deposits with U.S. regulatory authorities	2,488		2,544
Deposits with non-U.S. regulatory authorities	3,595		3,584
Assets pledged under repurchase agreements	3,097		2,924
Other pledged assets	905		880
Total	$	18,711	$	18,414

f) Variable interest entities (VIEs)

Consolidated VIEs

Certain subsidiaries of Huatai Group are the investment manager of, and maintain investments in, sponsored investment products that are considered Variable interest entities. We have determined that we are the primary beneficiary and consolidate these investment products if we hold at least 10 percent ownership. Refer to Note 1 g) of our 2023 Form 10-K for further information on our consolidation criteria. The assets of these VIEs are not available to our creditors, and the investors in these VIEs have no recourse to Chubb in excess of the assets contained within the VIEs. Our economic exposures are limited to our investments based on our ownership interest in these VIEs. Our total exposure to these consolidated investment products represents the value of our economic ownership interest.

Unconsolidated VIEs

We do not consolidate sponsored investment products where we have determined that we are not the primary beneficiary. The carrying value of these investments at March 31, 2024, and December 31, 2023, was $140 million and $153 million, respectively, and our maximum risk of loss approximates the carrying amount. These investments are classified within Equity securities.

4. Fair value measurements

a) Fair value hierarchy

Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.

The three levels of the hierarchy are as follows:

•Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;

•Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as

interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and

•Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants

would use in pricing an asset or liability.

We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement.

We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used

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by the pricing services, all applicable investments have been valued in accordance with U.S. GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy.

Fixed maturities

We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications or pricing models, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market-based inputs (i.e., stale pricing) and may require the use of models to be priced. The lack of market-based inputs may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a single broker quote (typically from a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in Level 3.

Equity securities

Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3.

Short-term investments

Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity, and as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3.

Private equities

Fair values for Private equities including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective NAV and are excluded from the fair value hierarchy table below.

Other investments

Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under U.S. GAAP. These assets comprise mutual funds, classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Other investments principally include fixed maturities carried at fair value with changes in fair value recorded through the Consolidated statements of operations. These fixed maturities principally relate to the acquired Huatai investment portfolio and are classified within Level 2. Also included are life insurance policies collateralizing investments held in rabbi trusts maintained by Chubb for deferred compensation plans and supplemental retirement plans. These policies are carried at cash surrender value and are classified in the valuation hierarchy within Level 2.

Securities lending collateral

The underlying assets included in Securities lending collateral in the Consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. Excluded from the valuation hierarchy is the corresponding liability related to Chubb’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the Consolidated balance sheets.

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Chubb Limited and Subsidiaries

Investment derivatives

Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Derivatives designated as hedging instruments

Certain of our derivatives are cross-currency swaps designated as fair value and net investment hedging instruments. The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Other derivative instruments

We maintain positions in exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected market risk benefits (MRB) claims, and therefore, an increase in MRB reserves. Our positions in exchange-traded equity futures contracts are classified within Level 1. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Separate account assets

Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. Separate account assets principally comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the Consolidated balance sheets.

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Chubb Limited and Subsidiaries

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


March 31, 2024	Level 1		Level 2		Level 3		Total
(in millions of U.S. dollars)
Assets:
Fixed maturities available-for-sale
U.S. Treasury / Agency	$	2,251	$	648	$	—	$	2,899
Non-U.S.	—		35,427		718		36,145
Corporate and asset-backed securities	—		40,789		2,658		43,447
Mortgage-backed securities	—		23,748		7		23,755
Municipal	—		2,043		—		2,043
	2,251		102,655		3,383		108,289

Equity securities	3,668		—		101		3,769
Short-term investments	3,292		1,810		5		5,107
Other investments (1)	583		4,897		—		5,480
Securities lending collateral	—		1,708		—		1,708
Investment derivatives	28		—		—		28
Derivatives designated as hedging instruments	—		149		—		149
Other derivative instruments	1		—		—		1
Separate account assets	5,775		89		—		5,864
Total assets measured at fair value (1)(2)	$	15,598	$	111,308	$	3,489	$	130,395
Liabilities:
Investment derivatives	$	144	$	—	$	—	$	144
Derivatives designated as hedging instruments	—		110		—		110
Other derivative instruments	22		6		—		28
Market risk benefits (3)	—		—		611		611
Total liabilities measured at fair value	$	166	$	116	$	611	$	893

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

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

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

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Chubb Limited and Subsidiaries


December 31, 2023	Level 1		Level 2		Level 3		Total
(in millions of U.S. dollars)
Assets:
Fixed maturities available-for-sale
U.S. Treasury / Agency	$	2,911	$	679	$	—	$	3,590
Non-U.S.	—		34,472		692		35,164
Corporate and asset-backed securities	—		40,208		2,622		42,830
Mortgage-backed securities	—		22,051		7		22,058
Municipal	—		2,929		—		2,929
	2,911		100,339		3,321		106,571
Equity securities	3,368		—		87		3,455
Short-term investments	1,915		2,633		3		4,551
Other investments (1)	589		4,236		—		4,825
Securities lending collateral	—		1,299		—		1,299
Investment derivatives	54		—		—		54
Derivatives designated as hedging instruments	—		136		—		136

Separate account assets	5,482		91		—		5,573
Total assets measured at fair value (1)(2)	$	14,319	$	108,734	$	3,411	$	126,464
Liabilities:
Investment derivatives	$	136	$	—	$	—	$	136
Derivatives designated as hedging instruments	—		128		—		128
Other derivative instruments	37		5		—		42
Market risk benefits (3)	—		—		771		771
Total liabilities measured at fair value	$	173	$	133	$	771	$	1,077

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

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

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

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Chubb Limited and Subsidiaries

Level 3 financial instruments

The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3).



Three Months Ended March 31, 2024 (in millions of U.S. dollars)	Available-for-Sale Debt Securities						Equity securities	Short-term investments
	Non-U.S.		Corporate and asset- backed securities		Mortgage-backed securities

Balance, beginning of period	$	692	$	2,622	$	7		$	87	$	3
Transfers into Level 3	1		1		—			—		—
Transfers out of Level 3	(4)		(3)		—			—		—
Change in Net Unrealized Gains (Losses) in OCI	14		6		—			—		—
Net Realized Gains (Losses)	—		—		—			(3)		—
Purchases	72		143		—			18		4
Sales	(20)		(20)		—			(1)		—
Settlements	(37)		(91)		—			—		(2)

Balance, end of period	$	718	$	2,658	$	7		$	101	$	5
Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date	$	—	$	—	$	—		$	(2)	$	—
Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date	$	13	$	6	$	—		$	—	$	—



Three Months Ended March 31, 2023 (in millions of U.S. dollars)		Available-for-Sale Debt Securities								Equity securities		Short-term investments
	Non-U.S.			Corporate and asset- backed securities			Mortgage-backed securities

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

Transfers out of Level 3		—			(11)			—		—		—
Change in Net Unrealized Gains (Losses) in OCI		(4)			(2)			—		—		(1)

Net Realized Gains (Losses)		—			2			—		(4)		—

Purchases		43			205			—		7		5
Sales		(31)			(20)			—		(5)		—
Settlements		(11)			(79)			(1)		—		—

Balance, end of period		$	561		$	2,544		$	10	$	88	$	7
Net Realized Gains (Losses) Attributable to Changes in Fair Value at the Balance Sheet date		$	—		$	4		$	—	$	(3)	$	—
Change in Net Unrealized Gains (Losses) included in OCI at the Balance Sheet date		$	(6)		$	(5)		$	—	$	—	$	(1)

Excluded from the tables above is the reconciliation of Market risk benefits, which are presented in Note 10 Market risk benefits. Refer to Note 10 for additional information.

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

Chubb uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below.

The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values. Refer to the 2023 Form 10-K for information on the fair value methods and assumptions for private debt held-for-investment, short-term and long-term debt, repurchase agreements, and trust-preferred securities.

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Chubb Limited and Subsidiaries

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


March 31, 2024	Fair Value								Net Carrying Value
(in millions of U.S. dollars)	Level 1		Level 2		Level 3		Total
Assets:
Private debt held-for-investment	$	—	$	—	$	2,733	$	2,733	$	2,708
Total assets	$	—	$	—	$	2,733	$	2,733	$	2,708
Liabilities:
Repurchase agreements	$	—	$	3,022	$	—	$	3,022	$	3,022
Short-term debt	—		2,228		—		2,228		2,265
Long-term debt	—		11,930		—		11,930		13,248
Trust preferred securities	—		365		—		365		309
Total liabilities	$	—	$	17,545	$	—	$	17,545	$	18,844


December 31, 2023	Fair Value								Net Carrying Value
(in millions of U.S. dollars)	Level 1		Level 2		Level 3		Total
Assets:
Private debt held-for-investment	$	—	$	—	$	2,560	$	2,560	$	2,553
Total assets	$	—	$	—	$	2,560	$	2,560	$	2,553
Liabilities:
Repurchase agreements	$	—	$	2,833	$	—	$	2,833	$	2,833
Short-term debt	—		1,431		—		1,431		1,460
Long-term debt	—		11,924		—		11,924		13,035
Trust preferred securities	—		365		—		365		308
Total liabilities	$	—	$	16,553	$	—	$	16,553	$	17,636

5. Reinsurance

Reinsurance recoverable on ceded reinsurance


	March 31, 2024				December 31, 2023
(in millions of U.S. dollars)	Net Reinsurance Recoverable (1)		Valuation allowance		Net Reinsurance Recoverable (1)		Valuation allowance
Reinsurance recoverable on unpaid losses and loss expenses	$	17,163	$	290	$	17,884	$	285
Reinsurance recoverable on paid losses and loss expenses	1,946		85		2,068		82
Reinsurance recoverable on losses and loss expenses	$	19,109	$	375	$	19,952	$	367
Reinsurance recoverable on policy benefits	$	272	$	—	$	280	$	—

(1)Net of valuation allowance for uncollectible reinsurance.

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

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Chubb Limited and Subsidiaries

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Valuation allowance for uncollectible reinsurance - beginning of period	$	367	$	351
Provision for uncollectible reinsurance	8		5
Write-offs charged against the valuation allowance	—		(5)


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

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

6. Deferred acquisition costs

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

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


	Three Months Ended March 31, 2024

(in millions of U.S. dollars)	Term Life		Universal Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	402	$	674	$	534	$	1,301	$	274	$	3,185

Capitalizations	47		33		85		158		16		339
Amortization expense	(28)		(20)		(8)		(41)		(7)		(104)

Other (including foreign exchange)	(8)		1		(3)		3		(2)		(9)
Balance - end of period	$	413	$	688	$	608	$	1,421	$	281	$	3,411
Overseas General Insurance segment excluded from table											616
Total deferred acquisition costs on long-duration contracts											$	4,027


	Three Months Ended March 31, 2023

(in millions of U.S. dollars)	Term Life		Universal Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	324	$	639	$	392	$	891	$	268	$	2,514

Capitalizations	42		25		28		123		4		222
Amortization expense	(24)		(19)		(5)		(30)		(6)		(84)

Other (including foreign exchange)	7		(1)		9		(15)		(1)		(1)
Balance - end of period	$	349	$	644	$	424	$	969	$	265	$	2,651
Overseas General Insurance segment excluded from table											642
Total deferred acquisition costs on long-duration contracts											$	3,293

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

7. Unpaid losses and loss expenses

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023

Gross unpaid losses and loss expenses – beginning of period	$	80,122	$	75,747
Reinsurance recoverable on unpaid losses – beginning of period (1)	(17,884)		(17,086)
Net unpaid losses and loss expenses – beginning of period	62,238		58,661
Net losses and loss expenses incurred in respect of losses occurring in:
Current year	5,980		5,336
Prior years (2)	(253)		(188)
Total	5,727		5,148
Net losses and loss expenses paid in respect of losses occurring in:
Current year	767		805
Prior years	4,055		3,911
Total	4,822		4,716

Foreign currency revaluation and other	35		(196)
Net unpaid losses and loss expenses – end of period	63,178		58,897
Reinsurance recoverable on unpaid losses (1)	17,163		16,520
Gross unpaid losses and loss expenses – end of period	$	80,341	$	75,417

(1) Net of valuation allowance for uncollectible reinsurance.

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Prior Period Development

Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. Long-tail lines include lines such as workers' compensation, general liability, and financial lines; while short-tail lines include lines such as most property lines, energy, personal accident, and agriculture. The following table summarizes (favorable) and adverse PPD by segment:


	Three Months Ended March 31
(in millions of U.S. dollars)	Long-tail		Short-tail		Total
2024
North America Commercial P&C Insurance	$	96	$	(144)	$	(48)
North America Personal P&C Insurance	—		(52)		(52)
North America Agricultural Insurance	—		(28)		(28)
Overseas General Insurance	(1)		(88)		(89)
Global Reinsurance	—		1		1
Corporate	9		—		9
Total	$	104	$	(311)	$	(207)
2023
North America Commercial P&C Insurance	$	9	$	(81)	$	(72)
North America Personal P&C Insurance	—		17		17
North America Agricultural Insurance	—		—		—
Overseas General Insurance	—		(143)		(143)
Global Reinsurance	—		(8)		(8)
Corporate	10		—		10
Total	$	19	$	(215)	$	(196)

Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate.

North America Commercial P&C Insurance. Net favorable development for the three months ended March 31, 2024, included $74 million in surety lines and $62 million in property and marine lines due to lower-than-expected loss development. The favorable development was partially offset by net adverse development of $102 million in commercial excess and umbrella lines, driven by higher-than-expected loss development.

Net favorable development for the three months ended March 31, 2023, was $72 million favorable with $81 million favorable in short-tail lines and $9 million adverse in long-tail lines. The short tail development was primarily in surety and A&H, partially offset by adverse development in property and marine due to the net impact of positive development from Hurricane Ian and negative development from Winter Storm Elliott. The long-tail development was the net of favorable developments in specialty casualty and workers comp due to lower than expected paid and reported loss activity offset by adverse development in general liability and certain financial lines due to higher-than-expected development.

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

8. Future policy benefits

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


Present Value of Expected Net Premiums	Three Months Ended March 31, 2024
(in millions of U.S. dollars)	Term Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	1,590	$	3,950	$	10,432	$	64	$	16,036
Beginning balance at original discount rate	1,992		3,945		10,692		64		16,693
Effect of changes in cash flow assumptions	6		70		109		—		185
Effect of actual variances from expected experience	(1)		22		(37)		—		(16)
Adjusted beginning of period balance	1,997		4,037		10,764		64		16,862

Issuances	65		295		697		2		1,059
Interest accrual	14		27		133		—		174
Net premiums collected (1)	(57)		(310)		(363)		(7)		(737)

Other (including foreign exchange)	(5)		(4)		82		—		73
Ending balance at original discount rate	2,014		4,045		11,313		59		17,431
Effect of changes in discount rate assumptions	(407)		18		(295)		—		(684)
Balance – end of period	$	1,607	$	4,063	$	11,018	$	59	$	16,747

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


Present Value of Expected Future Policy Benefits	Three Months Ended March 31, 2024
(in millions of U.S. dollars)	Term Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	2,254	$	10,063	$	14,650	$	495	$	27,462
Beginning balance at original discount rate	2,749		9,991		15,071		492		28,303
Effect of changes in cash flow assumptions	8		86		100		—		194
Effect of actual variances from expected experience	3		27		(36)		—		(6)
Adjusted beginning of period balance	2,760		10,104		15,135		492		28,491

Issuances	65		295		697		2		1,059
Interest accrual	19		74		164		3		260
Benefits payments	(59)		(87)		(398)		(6)		(550)

Other (including foreign exchange)	30		(2)		114		21		163
Ending balance at original discount rate	2,815		10,384		15,712		512		29,423
Effect of changes in discount rate assumptions	(516)		184		(487)		18		(801)
Balance – end of period	$	2,299	$	10,568	$	15,225	$	530	$	28,622

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries


Liability for Future Policy Benefits, Life Insurance Segment	March 31, 2024
(in millions of U.S. dollars)	Term Life		Whole Life		A&H		Other		Total
Net liability for future policy benefits	$	692	$	6,505	$	4,207	$	471	$	11,875
Deferred profit liability	254		904		174		19		1,351
Net liability for future policy benefits, before reinsurance recoverable	946		7,409		4,381		490		13,226
Less: Reinsurance recoverable on future policy benefits	107		45		113		1		266
Net liability for future policy benefits, after reinsurance recoverable	$	839	$	7,364	$	4,268	$	489	$	12,960
Weighted average duration (years)	10.2		25.6		10.1		15.1		19.3


Present Value of Expected Net Premiums	Three Months Ended March 31, 2023
(in millions of U.S. dollars)	Term Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	1,806	$	2,308	$	10,711	$	42	$	14,867
Beginning balance at original discount rate	1,867		2,361		11,258		43		15,529
Effect of changes in cash flow assumptions	17		(1)		(786)		1		(769)
Effect of actual variances from expected experience	(6)		(8)		(89)		(1)		(104)
Adjusted beginning of period balance	1,878		2,352		10,383		43		14,656

Issuances	36		69		288		1		394
Interest accrual	28		18		125		—		171
Net premiums collected (1)	(44)		(82)		(327)		(6)		(459)


Other (including foreign exchange)	35		8		(139)		1		(95)
Ending balance at original discount rate	1,933		2,365		10,330		39		14,667
Effect of changes in discount rate assumptions	(48)		(8)		(263)		—		(319)
Balance – end of period	$	1,885	$	2,357	$	10,067	$	39	$	14,348

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries


Present Value of Expected Future Policy Benefits	Three Months Ended March 31, 2023
(in millions of U.S. dollars)	Term Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	2,321	$	5,696	$	15,038	$	269	$	23,324
Beginning balance at original discount rate	2,447		5,874		15,855		280		24,456
Effect of changes in cash flow assumptions	20		(1)		(798)		3		(776)
Effect of actual variances from expected experience	(3)		(7)		(87)		(1)		(98)
Adjusted beginning of period balance	2,464		5,866		14,970		282		23,582

Issuances	36		69		288		1		394
Interest accrual	32		52		156		2		242
Benefit payments	(46)		(65)		(362)		(3)		(476)

Other (including foreign exchange)	72		28		(153)		(14)		(67)
Ending balance at original discount rate	2,558		5,950		14,899		268		23,675
Effect of changes in discount rate assumptions	(118)		(42)		(463)		—		(623)
Balance – end of period	$	2,440	$	5,908	$	14,436	$	268	$	23,052


Liability for Future Policy Benefits, Life Insurance Segment	March 31, 2023
(in millions of U.S. dollars)	Term Life		Whole Life		A&H		Other		Total
Net liability for future policy benefits	$	555	$	3,551	$	4,369	$	229	$	8,704
Deferred profit liability	223		581		135		13		952
Net liability for future policy benefits, before reinsurance recoverable	778		4,132		4,504		242		9,656
Less: Reinsurance recoverable on future policy benefits	105		33		112		—		250
Net liability for future policy benefits, after reinsurance recoverable	$	673	$	4,099	$	4,392	$	242	$	9,406
Weighted average duration (years)	9.4		25.3		10.7		14.5		17.7

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


	March 31
(in millions of U.S. dollars)	2024		2023
Net liability for future policy benefits, Life Insurance segment	$	11,875	$	8,704
Other (1)	1,149		1,126
Deferred profit liability	1,351		952
Liability for future policy benefits, per consolidated balance sheet	$	14,375	$	10,782

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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


	March 31		March 31
(in millions of U.S. dollars)	2024		2023

Term Life
Undiscounted expected future benefit payments	$	4,358	$	4,041
Undiscounted expected future gross premiums	7,291		6,452
Discounted expected future benefit payments	2,299		2,440
Discounted expected future gross premiums	3,909		3,773
Whole Life
Undiscounted expected future benefit payments	24,834		16,446
Undiscounted expected future gross premiums	9,593		6,895
Discounted expected future benefit payments	10,568		5,908
Discounted expected future gross premiums	7,774		5,398
A&H
Undiscounted expected future benefit payments	26,475		23,186
Undiscounted expected future gross premiums	39,002		33,809
Discounted expected future benefit payments	15,225		14,436
Discounted expected future gross premiums	22,975		20,766
Other
Undiscounted expected future benefit payments	901		342
Undiscounted expected future gross premiums	94		97
Discounted expected future benefit payments	530		268
Discounted expected future gross premiums	$	83	$	87

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


	Gross Premiums or Assessments				Interest Accretion
	Three Months Ended				Three Months Ended
	March 31				March 31
(in millions of U.S. dollars)	2024		2023		2024		2023
Life Insurance
Term Life	$	167	$	160	$	5	$	4

Whole Life	530		230		47		34
A&H	753		733		31		31
Other	20		17		3		2
Total	$	1,470	$	1,140	$	86	$	71

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

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


	Interest Accretion Rate				Current Discount Rate

	March 31				March 31
	2024		2023		2024		2023
Life Insurance
Term Life	2.9	%	2.8	%	5.7	%	5.7	%

Whole Life	3.2	%	4.0	%	4.5	%	5.2	%
A&H	3.7	%	3.8	%	6.3	%	6.2	%
Other	2.6	%	3.8	%	3.8	%	4.8	%

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

Policyholders' account balances

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


	Three Months Ended March 31, 2024
(in millions of U.S. dollars)	Universal Life		Annuities (2)		Other (3)		Total
Balance – beginning of period	$	1,876	$	2,411	$	2,502	$	6,789


Premiums received	72		131		131		334
Policy charges (1)	(34)		—		(2)		(36)
Surrenders and withdrawals	(32)		(10)		(77)		(119)
Benefit payments (4)	(54)		(59)		(3)		(116)

Interest credited	13		16		14		43
Other (including foreign exchange)	(1)		(5)		(9)		(15)
Balance – end of period	$	1,840	$	2,484	$	2,556	$	6,880
Unearned revenue liability							680
Policyholders' account liability, per consolidated balance sheet							$	7,560

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

(2)Relates to Huatai Life.

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries


	Three Months Ended March 31, 2023
(in millions of U.S. dollars)	Universal Life		Other (2)		Total
Balance – beginning of period	$	1,199	$	1,374	$	2,573


Premiums received	50		18		68
Policy charges (1)	(30)		(4)		(34)
Surrenders and withdrawals	(15)		(8)		(23)
Benefit payments (3)	(4)		(6)		(10)

Interest credited	8		8		16
Other (including foreign exchange)	—		3		3
Balance – end of period	$	1,208	$	1,385	$	2,593
Unearned revenue liability					585
Policyholders' account liability, per consolidated balance sheet					$	3,178

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

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

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



	March 31
	2024									2023
(in millions of U.S. dollars, except for percentages)	Universal Life			Annuities			Other			Universal Life			Other
Weighted-average crediting rate	2.9		%	2.6		%	2.5		%	2.6		%	3.0		%
Net amount at risk (1)	$	12,014		$	—		$	499		$	11,394		$	156
Cash Surrender Value	$	1,623		$	1,605		$	2,239		$	1,005		$	1,075

(1)For those guarantees of benefits that are payable in the event of death, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

The following tables present the balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimum:

Universal Life


	March 31, 2024
(in millions of U.S. dollars)	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Guaranteed minimum crediting rates
Up to 2.00%	$	482	$	—	$	39	$	49	$	570
2.01% – 4.00%	67		461		728		—		1,256
Greater than 4.00%	14		—		—		—		14
Total	$	563	$	461	$	767	$	49	$	1,840

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries


	March 31, 2023
(in millions of U.S. dollars)	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Guaranteed minimum crediting rates
Up to 2.00%	$	455	$	—	$	32	$	7	$	494
2.01% – 4.00%	69		345		280		—		694
Greater than 4.00%	20		—		—		—		20
Total	$	544	$	345	$	312	$	7	$	1,208

Annuities


	March 31, 2024
(in millions of U.S. dollars)	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Guaranteed minimum crediting rates
Up to 2.00%	$	720	$	—	$	1,624	$	1	$	2,345
2.01% – 4.00%	139		—		—		—		139
Greater than 4.00%	—		—		—		—		—
Total	$	859	$	—	$	1,624	$	1	$	2,484

Other policyholders' account balances


	March 31, 2024
(in millions of U.S. dollars)	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Guaranteed minimum crediting rates
Up to 2.00%	$	789	$	—	$	243	$	533	$	1,565
2.01% – 4.00%	378		613		—		—		991
Greater than 4.00%	—		—		—		—		—
Total	$	1,167	$	613	$	243	$	533	$	2,556


	March 31, 2023
(in millions of U.S. dollars)	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Guaranteed minimum crediting rates
Up to 2.00%	$	446	$	—	$	212	$	295	$	953
2.01% – 4.00%	384		43		—		—		427
Greater than 4.00%	5		—		—		—		5
Total	$	835	$	43	$	212	$	295	$	1,385

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Separate accounts

Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. The assets that support variable contracts are measured at fair value and are reported as Separate account assets and corresponding liabilities are reported within Separate account liabilities on the Consolidated balance sheets. Policy charges assessed against the policyholders for mortality, administration, and other services are included in Net premiums earned on the Consolidated statements of operations.

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


	March 31		March 31
(in millions of U.S. dollars)	2024		2023
Cash and cash equivalents	$	76	$	116

Mutual funds	5,699		5,082

Fixed maturities	89		102

Total	$	5,864	$	5,300

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Balance – beginning of period	$	5,573	$	5,190

Premiums and deposits	264		266
Policy charges	(43)		(35)
Surrenders and withdrawals	(210)		(111)
Benefit payments	(105)		(99)
Investment performance	375		110

Other (including foreign exchange)	10		(21)
Balance – end of period	$	5,864	$	5,300
Cash surrender value (1)	$	5,655	$	5,030

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

Unearned revenue liabilities

Unearned revenue liabilities represent policy charges for services to be provided in future periods. The charges are reflected as deferred revenue and are generally amortized over the expected life of the contract using the same methodology, factors, and assumptions used to amortize deferred acquisition costs. Unearned revenue liabilities pertaining to both policyholders' account balances and separate accounts are recorded in Policyholders' account balances in the Consolidated balance sheets. The following table presents a roll-forward of unearned revenue liabilities:


	Three Months Ended March 31
(in millions of U.S. dollars)	2024		2023
Balance – beginning of period	$	673	$	567
Deferred revenue	34		32
Amortization	(18)		(14)

Other (including foreign exchange)	(9)		—
Balance – end of period	$	680	$	585

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

10. Market risk benefits

Our reinsurance programs covering variable annuity guarantees, comprising guaranteed living benefits (GLB) and guaranteed minimum death benefits (GMDB), meet the definition of Market risk benefits (MRB). The following table presents a roll-forward of MRB:


	Three Months Ended March 31
(in millions of U.S. dollars)	2024		2023
Balance – beginning of period	$	771	$	800
Balance, beginning of period, before effect of changes in the instrument-specific credit risk	749		776



Interest rate changes	(57)		63
Effect of changes in equity markets	(77)		(75)
Effect of changes in volatilities	(20)		57
Actual policyholder behavior different from expected behavior	30		(2)


Effect of timing and all other	(31)		(16)
Balance, end of period, before effect of changes in the instrument-specific credit risk	$	594	$	803
Effect of changes in the instrument-specific credit risk	17		27
Balance – end of period	$	611	$	830
Weighted-average age of policyholders (years)	74		73
Net amount at risk (1)	$	1,683	$	2,296

(1) The net amount at risk is defined as the present value of future claim payments assuming policy account values and guaranteed values are fixed at the valuation date, and reinsurance coverage ends at the earlier of the maturity of the underlying variable annuity policy or the reinsurance treaty. No withdrawals, lapses, and mortality improvements are assumed in the projection. GLB-related risks contain conservative mortality and annuitization assumptions.

Excluded from the table above are MRB gains (losses) of $(134) million and $(89) million for the three months ended March 31, 2024 and 2023, respectively, reported in the Consolidated statements of operations, relating to the market risk benefits' economic hedge and other net cash flows. There is no reinsurance recoverable associated with our liability for MRB.

For MRB, Chubb estimates fair value using an internal valuation model which includes a number of factors including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality. All reinsurance treaties contain claim limits, which are also factored into the valuation model.

Valuation Technique

Significant Unobservable Inputs

March 31, 2024

March 31, 2023

Ranges

Weighted Average(1)

Ranges

Weighted Average(1)

MRB (1)

Actuarial model

Lapse rate

0.5% – 30.0%

4.3

0.5% – 30.4%

4.0

Annuitization rate

0% – 100%

4.2

0% – 100%

4.4

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

The most significant policyholder behavior assumptions include lapse rates for MRBs, and GLB annuitization rates. Assumptions regarding lapse rates and GLB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable.

A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease.

The GLB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GLB. All else equal, as GLB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits.

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The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established by blending the experience with data received from other ceding companies. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information such as market conditions, market participant assumptions, and demographics of in-force annuities. For detailed information on our lapse and annuitization rate assumptions, refer to Note 11 to the Consolidated Financial Statements of our 2023 Form 10-K.

11. Debt

On March 7, 2024, Chubb INA Holdings LLC (Chubb INA) issued $1.0 billion of 5.0 percent senior notes due March 2034. These senior unsecured notes are guaranteed on a senior basis by Chubb Limited and they rank equally with all of Chubb INA's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt. These senior notes are redeemable at any time at Chubb INA's option subject to a “make-whole” premium (the present value of the remaining principal and interest discounted at the applicable comparable government bond rate plus 0.15 percent). The notes are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law. These notes do not have the benefit of any sinking fund.

12. Commitments, contingencies, and guarantees

a) Derivative instruments

Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. Chubb also maintains positions in convertible securities that contain embedded derivatives, and exchange-traded equity futures contracts on equity market indices to limit equity exposure in the market risk benefit (MRB) book of business. Investment derivative instruments, futures contracts on equities, and derivatives designated as hedges for accounting purposes are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP); convertible bonds are recorded in Fixed maturities available-for-sale (FM AFS); and convertible equity securities are recorded in Equity securities (ES) in the Consolidated balance sheets. These are the most numerous and frequent derivative transactions. In addition, Chubb, from time to time, purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities.

As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities, and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. Some of Chubb's derivatives satisfy hedge accounting requirements, as discussed below. We also consider economic hedging for planned cross border transactions.

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


				March 31, 2024								December 31, 2023
	Consolidated Balance Sheet Location	Fair Value				Notional Value/ Payment Provision			Fair Value					Notional Value/ Payment Provision
(in millions of U.S. dollars)		Derivative Asset		Derivative (Liability)				Derivative Asset			Derivative (Liability)
Investment and embedded derivatives not designated as hedging instruments:
Foreign currency forward contracts	OA / (AP)	$	23	$	(135)	$	3,647		$	27		$	(94)	$	3,662
Options/Futures contracts on notes and bonds	OA / (AP)	5		(9)		1,746			27			(42)		2,062
Convertible securities (1)	FM AFS / ES	64		—		69			56			—		64
		$	92	$	(144)	$	5,462		$	110		$	(136)	$	5,788
Other derivative instruments:
Futures contracts on equities (2)	OA / (AP)	$	—	$	(22)	$	1,162		$	—		$	(37)	$	1,157
Other	OA / (AP)	1		(6)		269			—			(5)		217
		$	1	$	(28)	$	1,431		$	—		$	(42)	$	1,374
Derivatives designated as hedging instruments:
Cross-currency swaps - fair value hedges	OA / (AP)	$	133	$	—	$	1,642		$	126		$	—	$	1,631
Cross-currency swaps - net investment hedges	OA / (AP)	16		(110)		1,625			10			(128)		1,619
		$	149	$	(110)	$	3,267		$	136		$	(128)	$	3,250

(1)Includes fair value of embedded derivatives.

(2)Related to MRB book of business.

At March 31, 2024, and December 31, 2023, net derivative liabilities of $104 million and $115 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement.

b) Hedge accounting

We designate certain derivatives as fair value hedges and net investment hedges for accounting purposes to hedge for foreign currency exposure associated with portions of our euro denominated debt and the net investment in certain foreign subsidiaries, respectively. These derivatives comprise cross-currency swaps, which are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date. These hedges have been and are expected to be highly effective.

(i) Cross-currency swaps - fair value hedges

Chubb holds certain cross-currency swaps designated as fair value hedges. The objective of these cross-currency swaps is to hedge the foreign currency risk on €1.5 billion, or approximately $1.6 billion at March 31, 2024, of our euro denominated debt, by converting cash flows back into the U.S. dollar.

These hedges are carried at fair value, with changes in fair value recorded in Other comprehensive income (OCI). The gains or losses on the fair value hedges offsetting the foreign currency remeasurement on the hedged euro denominated senior notes are reclassified from OCI into Net realized gains (losses), and an additional portion is reclassified into Interest expense, as follows:

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	Three Months Ended
	March 31
(pre-tax, in millions of U.S. dollars)	2024		2023
Gain (loss) recognized in OCI	$	(8)	$	(17)
Net realized gain (loss) reclassified from OCI	(37)		20
Interest expense reclassified from OCI	(4)		(4)
OCI gain (loss) after reclassifications	$	33	$	(33)

(ii) Cross-currency swaps - net investment hedges

Chubb holds certain cross-currency swaps designated as net investment hedges. The objective of these cross-currency swaps is to hedge the foreign currency exposure in the net investments of certain foreign subsidiaries by converting cash flows from U.S. dollar to the British pound sterling, Japanese yen, and Swiss franc. The hedged risk is designated as the foreign currency exposure arising between the functional currency of the foreign subsidiary and the functional currency of its parent entity.

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

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


	Three Months Ended
	March 31
(pre-tax, in millions of U.S. dollars)	2024		2023
Gain (loss) recognized in OCI	$	36	$	(23)
Interest income reclassified from OCI	3		3
OCI gain (loss) after reclassifications	$	33	$	(26)

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c) Derivative instruments not designated as hedges

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Investment and embedded derivative instruments:
Foreign currency forward contracts	$	(52)	$	(51)

All other futures contracts, options, and equities	6		5
Convertible securities (1)	3		—

Total investment and embedded derivative instruments	$	(43)	$	(46)
Other derivative instruments:
Futures contracts on equities (2)	(95)		(57)
Other	(2)		(1)
Total other derivative instruments	$	(97)	$	(58)
	$	(140)	$	(104)

(1)Includes embedded derivatives.

(2)Related to MRB book of business.

(i) Foreign currency exposure management

A foreign currency forward contract (forward) is an agreement between participants to exchange specific currencies at a future date. Chubb uses forwards to minimize the effect of fluctuating foreign currencies as discussed above.

(ii) Duration management and market exposure

Futures

Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds, and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed.

Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in market risk benefit reserves.

Options

An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in our investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above.

The price of an option is influenced by the underlying security, level of interest rates, expected volatility, time to expiration, and supply and demand.

The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by

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the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines.

Other

Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business. The economic benefit provided by these derivatives is similar to purchased reinsurance. For example, Chubb may, from time to time, enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices.

(iii) Convertible security investments

A convertible security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available-for-sale or as an equity security. Chubb purchases convertible securities for their total return and not specifically for the conversion feature.

(iv) TBA

By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities. For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the Consolidated Financial Statements. Chubb purchases TBAs, from time to time, both for their total return and for the flexibility they provide related to our mortgage-backed security strategy.

(v) Futures contracts on equities

Under the MRB program, as the assuming entity, Chubb is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. We may recognize a loss for changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining U.S. and/or international equity markets). To mitigate adverse changes in the capital markets, we maintain positions in exchange-traded equity futures contracts, as noted under section "(ii) Futures" above. These futures increase in fair value when the S&P 500 index decreases (and decrease in fair value when the S&P 500 index increases). The net impact of gains or losses related to changes in fair value of the MRB liability and the exchange-traded equity futures are included in Market risk benefits gains (losses) in the Consolidated statements of operations.

d) Securities lending and secured borrowings

Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the Consolidated balance sheets.

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


	Remaining contractual maturity

	March 31, 2024		December 31, 2023
(in millions of U.S. dollars)	Overnight and Continuous
Collateral held under securities lending agreements:
Cash	$	698	$	555
U.S. Treasury / Agency	275		33
Non-U.S.	654		621
Corporate and asset-backed securities	60		57

Municipal	4		6
Equity securities	17		27

	$	1,708	$	1,299
Gross amount of recognized liability for securities lending payable	$	1,708	$	1,299

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At March 31, 2024, and December 31, 2023, our repurchase agreement obligations of $3,022 million and $2,833 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available-for-sale or Other investments, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.

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


	Remaining contractual maturity
	March 31, 2024				December 31, 2023
	Up to 30 Days		30-90 Days		Total		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
(in millions of U.S. dollars)
Collateral pledged under repurchase agreements:
Cash	$	—	$	4	$	4	$	—	$	33	$	1	$	34
Non-U.S.	1,579		—		1,579		1,355		—		—		1,355
U.S. Treasury / Agency	—		100		100		—		105		—		105


Mortgage-backed securities	488		926		1,414		—		913		517		1,430
	$	2,067	$	1,030	$	3,097	$	1,355	$	1,051	$	518	$	2,924
Gross amount of recognized liabilities for repurchase agreements					$	3,022							$	2,833
Difference (1)					$	75							$	91

(1)Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.

Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction.

e) Fixed maturities

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

f) Private equities

Private equities in the Consolidated balance sheets are investments in limited partnerships and partially-owned investment companies with a carrying value of $14.0 billion at March 31, 2024. In connection with these investments, we have commitments that may require funding of up to $5.9 billion over the next several years. At December 31, 2023, these investments had a carrying value of $13.9 billion with commitments that could have required funding of up to $6.2 billion.

g) Income taxes

At March 31, 2024, $73 million of unrecognized tax benefits remain outstanding. It is reasonably possible that, over the next twelve months, the amount of unrecognized tax benefits may change resulting from the re-evaluation of unrecognized tax benefits arising from examinations by taxing authorities, settlements, and the lapses of statutes of limitations. With few exceptions, Chubb is no longer subject to income tax examinations for years before 2012.

h) Legal proceedings

Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of

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business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations.

i) Lease commitments

At March 31, 2024, and December 31, 2023, the right-of-use asset was $762 million and $784 million, respectively, recorded within Other assets, and the lease liability was $818 million and $832 million, respectively, recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheets. These leases consist principally of real estate operating leases that are amortized on a straight-line basis over the term of the lease, which expire at various dates.

13. Shareholders’ equity

All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing the Consolidated Financial Statements. Under Swiss corporate law, dividends, including distributions from legal reserves or through a reduction in par value (par value reduction), must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At March 31, 2024, our Common Shares had a par value of CHF 0.50 per share.

At our May 2023 and 2022 annual general meetings, our shareholders approved annual dividends for the following year of up to $3.44 per share and $3.32 per share, respectively, which were paid in four quarterly installments of $0.86 per share and $0.83 per share, respectively, at dates determined by the Board of Directors (Board) after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

Dividend distributions per Common Share for the three months ended March 31, 2024 and 2023, were $0.86 (CHF 0.75) and $0.83 (CHF 0.77), respectively.

Increases in Common Shares in treasury are due to open market repurchases of Common Shares and the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock and the forfeiture of unvested restricted stock. Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, purchases under the Employee Stock Purchase Plan (ESPP), and share cancellations. At our May 2023 annual general meeting, held on May 17, 2023, our shareholders approved the cancellation of 14,925,028 shares purchased under our share repurchase programs during 2022. The capital reduction was subject to publication requirements and became effective in accordance with Swiss law on May 22, 2023. During the three months ended March 31, 2024, 1,220,121 shares were repurchased and 1,983,550 net shares were issued under employee share-based compensation plans. At March 31, 2024, 25,418,520 Common Shares remain in treasury.

Chubb Limited securities repurchase authorizations

The Board has authorized share repurchase programs as follows:

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

•$5.0 billion of Chubb Common Shares effective July 1, 2023 with no expiration date.

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


	Three Months Ended			April 1,2024 through April 25, 2024
	March 31
(in millions of U.S. dollars, except share data)		2024				2023
Number of shares repurchased		1,220,121		2,010,400			250,000
Cost of shares repurchased		$	316	$	428		$	62
Repurchase authorization remaining at end of period		$	3,373	$	1,193		$	3,312

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


	Three Months Ended
	March 31
(in millions of U.S. dollars)		2024		2023
Accumulated other comprehensive income (loss) (AOCI)
Net unrealized appreciation (depreciation) on investments
Balance – beginning of period, net of tax		$	(4,177)	$	(7,279)
Change in period, before reclassification from AOCI (before tax)		(796)		1,606
Amounts reclassified from AOCI (before tax)		119		180
Change in period, before tax		(677)		1,786
Income tax (expense) benefit		42		(166)
Total other comprehensive income (loss)		(635)		1,620
Noncontrolling interests, net of tax		13		—
Balance – end of period, net of tax		(4,825)		(5,659)
Current discount rate on liability for future policy benefits
Balance – beginning of period, net of tax		51		(75)
Change in period, before tax		(53)		(151)
Income tax (expense) benefit		(20)		21
Total other comprehensive loss		(73)		(130)
Noncontrolling interests, net of tax		(33)		—
Balance – end of period, net of tax		11		(205)
Instrument-specific credit risk on market risk benefits
Balance – beginning of period, net of tax		(22)		(24)
Change in period, before and net of tax		5		(3)
Total other comprehensive income (loss)		5		(3)
Noncontrolling interests, net of tax		—		—
Balance – end of period, net of tax		(17)		(27)
Cumulative foreign currency translation adjustment
Balance – beginning of period, net of tax		(2,945)		(2,966)
Change in period, before reclassification from AOCI (before tax)		83		(174)
Amounts reclassified from AOCI (before tax)		(3)		(3)
Change in period, before tax		80		(177)
Income tax (expense) benefit		(7)		7
Total other comprehensive income (loss)		73		(170)
Noncontrolling interests, net of tax		(8)		—
Balance – end of period, net of tax		(2,864)		(3,136)

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	Three Months Ended
	March 31
(in millions of U.S. dollars)		2024		2023
Accumulated other comprehensive income (loss) (AOCI) - continued
Fair value hedging instruments
Balance – beginning of period, net of tax		(13)		(66)
Change in period, before reclassification from AOCI (before tax)		(8)		(17)
Amounts reclassified from AOCI (before tax)		41		(16)
Change in period, before tax		33		(33)
Income tax (expense) benefit		(7)		7
Total other comprehensive income (loss)		26		(26)
Noncontrolling interests, net of tax		—		—
Balance – end of period, net of tax		13		(92)
Postretirement benefit liability adjustment
Balance – beginning of period, net of tax		297		225
Change in period, before tax		(2)		—
Income tax (expense) benefit		1		(1)
Total other comprehensive loss		(1)		(1)
Noncontrolling interests, net of tax		—		—
Balance – end of period, net of tax		296		224
Accumulated other comprehensive loss		$	(7,386)	$	(8,895)

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


	Three Months Ended			Consolidated Statement of Operations Location
	March 31
(in millions of U.S. dollars)		2024				2023
Fixed maturities available-for-sale		$	(119)	$	(180)		Net realized gains (losses)
Income tax benefit		12		18			Income tax expense
		$	(107)	$	(162)		Net income
Cumulative foreign currency translation adjustment
Cross-currency swaps		$	3	$	3		Interest expense
Income tax expense		(1)		(1)			Income tax expense
		$	2	$	2		Net income
Net gains (losses) of fair value hedging instruments
Cross-currency swaps		$	(37)	$	20		Net realized gains (losses)
Cross-currency swaps		(4)		(4)			Interest expense
Income tax (expense) benefit		9		(3)			Income tax expense
		$	(32)	$	13		Net income
Total amounts reclassified from AOCI		$	(137)	$	(147)

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14. Share-based compensation

The Chubb Limited 2016 Long-Term Incentive Plan, as amended and restated (the Amended 2016 LTIP), permits grants of both incentive and non-qualified stock options principally at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term. Stock options typically vest in equal annual installments over the respective vesting period, which is also the requisite service period. On February 26, 2024, Chubb granted 1,359,237 stock options with a weighted-average grant date fair value of $64.15 each. The fair value of the options issued is estimated on the grant date using the Black-Scholes option pricing model.

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

Chubb generally grants service-based restricted stock and restricted stock units with a 4-year vesting period, based on a graded vesting schedule. Performance shares and performance stock units granted comprise both target and premium awards that cliff vest at the end of a 3-year performance period based on tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to a defined group of peer companies. Premium awards are subject to an additional vesting provision based on total shareholder return compared to the peer group. Stock and unit awards are principally granted at market close price on the grant date. On February 26, 2024, Chubb granted 685,665 service-based restricted stock, 290,085 service-based restricted stock units, 107,644 performance shares, and 277,883 performance stock units to employees and officers with a grant date fair value of $254.84 each. Each service-based restricted stock unit and performance stock unit represents our obligation to deliver to the holder one Common Share upon vesting (or the end of the deferral period, if the unit is under the Chubb Deferred Stock Unit Plan).

15. Postretirement benefits

The components of net pension and other postretirement benefit costs (benefits) reflected in Net income in the Consolidated statements of operations were as follows:


	Pension Benefit Plans								Other Postretirement Benefit Plans
	2024				2023				2024		2023
Three Months Ended March 31	U.S. Plans		Non-U.S. Plans		U.S. Plans		Non-U.S. Plans
(in millions of U.S. dollars)
Service cost	$	—	$	2	$	—	$	2	$	—	$	—
Non-service cost (benefit):
Interest cost	33		9		34		9		1		—
Expected return on plan assets	(61)		(13)		(56)		(12)		(1)		(1)
Amortization of net actuarial (gain) loss	—		1		—		—		(1)		—
Amortization of prior service cost	—		—		—		—		—		—

Settlements	—		—		—		—		—		—
Total non-service cost (benefit)	(28)		(3)		(22)		(3)		(1)		(1)
Net periodic benefit cost (benefit)	$	(28)	$	(1)	$	(22)	$	(1)	$	(1)	$	(1)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The line items in which the service cost and non-service cost (benefit) components of net periodic cost (benefit) are included in the Consolidated statements of operations were as follows:


	Pension Benefit Plans				Other Postretirement Benefit Plans
Three Months Ended March 31	2024		2023		2024		2023
(in millions of U.S. dollars)
Service cost:
Losses and loss expenses	$	—	$	—	$	—	$	—
Administrative expenses	2		2		—		—
Total service cost	2		2		—		—
Non-service cost (benefit):
Losses and loss expenses	(3)		(2)		—		—
Administrative expenses	(28)		(23)		(1)		(1)
Total non-service cost (benefit)	(31)		(25)		(1)		(1)
Net periodic benefit cost (benefit)	$	(29)	$	(23)	$	(1)	$	(1)

16. Other income and expense


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Equity in net income (loss) of partially-owned entities	$	184	$	340
Gains (losses) from fair value changes in separate account assets (1)	10		(25)
Asset management and performance fee revenue	53		—
Asset management and performance fee expense	(33)		—
Federal excise and capital taxes	(4)		(5)
Other	(19)		(14)
Total	$	191	$	296

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

Equity in net income of partially-owned entities includes our share of net income or loss, both underlying operating income and mark-to-market movement, related to partially-owned investment companies (private equity) where we own more than three percent, and partially-owned insurance companies. This line item includes mark-to-market gains (losses) on private equities of $103 million and $242 million for the three months ended March 31, 2024 and 2023, respectively.

In addition, this line item includes net income attributable to our investment in Huatai under the equity method of accounting comprising income of $14 million through March 31, 2023. Effective July 1, 2023, we discontinued the equity method of accounting and include the results of operations of Huatai in our consolidated results.

Also included in Other income and expense are gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under U.S. GAAP. The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations.

Asset management and performance fee revenue and expense primarily relate to the management of third-party assets by Huatai's asset management business, which is unrelated to Huatai Group's core insurance operations. These revenues and expenses are recognized in the period in which the services are performed and, for certain asset performance fees, to the extent it is probable that a significant reversal will not occur.

Certain federal excise and capital taxes incurred as a result of capital management initiatives are included in Other income and expense as these are considered capital transactions and are excluded from underwriting results. Bad debt expense for uncollectible premiums is also included in Other income and expense.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

17. Segment information

Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediaries. Effective July 1, 2023, the results of Huatai's life and asset management businesses, included within the Life Insurance segment, and the results of Huatai's P&C insurance business, included within Overseas General Insurance, are presented gross within Underwriting income (loss), Net investment income (loss), and Other income (expense) as required under consolidation accounting. Huatai's results prior to July 1, 2023 were included net within Other (income) expense based on our ownership interest as required under equity method accounting.

Management uses Underwriting income (loss) as the basis for segment performance. Chubb calculates Underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. Segment income (loss) includes Underwriting income (loss), Net investment income (loss), and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable. Our main measure of segment performance is Segment income (loss), which also includes Amortization of purchased intangibles acquired by the segment. We determined that this definition of Segment income (loss) is appropriate and aligns with how the business is managed. We continue to evaluate our segments as our business continues to evolve and may further refine our segments and Segment income (loss) measures.

Revenue and expenses managed at the corporate level, including Net realized gains (losses), Market risk benefits gains (losses), Interest expense, Cigna integration expenses, Income tax expense, and Net income (loss) attributable to noncontrolling interests are reported within Corporate. Cigna integration expenses are one-time costs that are directly attributable to third-party consulting fees, employee-related retention costs, and other professional and legal fees primarily related to the acquisition of Cigna's business in Asia. These items are not allocated to the segment level as they are one-time in nature and are not related to the ongoing business activities of the segment. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs, and therefore are excluded from our definition of Segment income (loss).

Certain items are presented in a different manner for segment reporting purposes than in the Consolidated Financial Statements. These items are reconciled to the consolidated presentation in the Segment measure reclass column below and include:

•Losses and loss expenses include realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore, realized gains (losses) from these derivatives are reclassified to losses and loss expenses.

•Policy benefits include fair value changes on separate accounts that do not qualify for separate accounting under U.S. GAAP. These gains and losses have been reclassified from Other (income) expense. We view gains and losses from fair value changes in both separate account assets and liabilities as part of the results of our underwriting operations, and therefore these gains and losses are reclassified to Policy benefits.

•Net investment income includes investment income reclassified from Other (income) expense related to partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of three percent. We view investment income from these equity-method private equity partnerships as Net investment income for segment reporting purposes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

The following tables present the Statement of Operations by segment:


For the Three Months Ended March 31, 2024 (in millions of U.S. dollars)	North America Commercial P&C Insurance		North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance		Global Reinsurance		Life Insurance		Corporate		Segment Measure Reclass		Chubb Consolidated



Net premiums written	$	4,689	$	1,456	$	249	$	3,835	$	359	$	1,633	$	—	$	—	$	12,221
Net premiums earned	4,880		1,471		128		3,198		295		1,611		—		—		11,583
Losses and loss expenses	3,175		899		49		1,426		137		32		10		(1)		5,727
Policy benefits	—		—		—		100		—		1,070		—		10		1,180
Policy acquisition costs	688		300		21		823		81		294		—		—		2,207
Administrative expenses	328		86		2		331		9		207		107				1,070
Underwriting income (loss)	689		186		56		518		68		8		(117)		(9)		1,399
Net investment income	826		102		21		267		57		230		(26)		(86)		1,391
Other (income) expense	7		1		—		5		—		(40)		(68)		(96)		(191)
Amortization expense of purchased intangibles	—		2		6		20		—		10		42		—		80
Segment income (loss)	$	1,508	$	285	$	71	$	760	$	125	$	268	$	(117)	$	1	$	2,901
Net realized gains (losses)													(100)		(1)		(101)
Market risk benefits gains (losses)													21		—		21
Interest expense													178		—		178
Cigna integration expenses													7		—		7
Income tax expense													342		—		342
Net income (loss)													(723)		—		2,294
Net loss attributable to noncontrolling interests													151		—		151
Net income (loss) attributable to Chubb													$	(874)	$	—	$	2,143


For the Three Months Ended March 31, 2023 (in millions of U.S. dollars)	North America Commercial P&C Insurance		North America Personal P&C Insurance		North America Agricultural Insurance		Overseas General Insurance		Global Reinsurance		Life Insurance		Corporate		Segment Measure Reclass		Chubb Consolidated



Net premiums written	$	4,288	$	1,296	$	293	$	3,263	$	277	$	1,293	$	—	$	—	$	10,710
Net premiums earned	4,369		1,320		159		2,786		244		1,264		—		—		10,142
Losses and loss expenses	2,729		888		140		1,237		112		32		11		(1)		5,148
Policy benefits	—		—		—		110		—		712		—		(25)		797
Policy acquisition costs	613		272		15		713		62		273		—		—		1,948
Administrative expenses	295		79		3		280		9		167		97		—		930
Underwriting income (loss)	732		81		1		446		61		80		(108)		26		1,319
Net investment income	698		82		17		188		49		153		11		(91)		1,107
Other (income) expense	7		1		1		(9)		(1)		(15)		(214)		(66)		(296)
Amortization expense of purchased intangibles	—		2		6		18		—		4		42		—		72
Segment income	$	1,423	$	160	$	11	$	625	$	111	$	244	$	75	$	1	$	2,650
Net realized gains (losses)													(76)		(1)		(77)
Market risk benefits gains (losses)													(115)		—		(115)
Interest expense													160		—		160
Cigna integration expenses													22		—		22
Income tax expense													384		—		384
Net income (loss)													$	(682)	$	—	$	1,892

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

Chubb Limited and Subsidiaries

Underwriting assets are reviewed in total by management for purposes of decision-making. Other than certain insurance related balances, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.

18. Earnings per share


	Three Months Ended
	March 31
(in millions of U.S. dollars, except share and per share data)		2024		2023
Numerator:
Net income		$	2,294	$	1,892
Net income attributable to noncontrolling interests		151		—
Net income attributable to Chubb		$	2,143	$	1,892
Denominator:
Denominator for basic earnings per share attributable to Chubb:
Weighted-average shares outstanding		405,662,694		414,289,150
Denominator for diluted earnings per share attributable to Chubb:
Share-based compensation plans		4,076,941		3,639,042
Weighted-average shares outstanding and assumed conversions		409,739,635		417,928,192
Basic earnings per share attributable to Chubb		$	5.28	$	4.57
Diluted earnings per share attributable to Chubb		$	5.23	$	4.53
Potential anti-dilutive share conversions		1,005,420		1,731,523

Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective periods. These securities consisted of stock options in which the underlying exercise prices were greater than the average market prices of our Common Shares. Refer to Note 16 to the Consolidated Financial Statements of our 2023 Form 10-K for additional information on stock options.

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ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three months ended March 31, 2024.

All comparisons in this discussion are to the corresponding prior year period unless otherwise indicated. All dollar amounts are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.

Our results of operations and cash flows for any interim period are not necessarily indicative of our results for the full year. This discussion should be read in conjunction with our consolidated financial statements and related notes and our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Form 10-K).

Other Information

We routinely post important information for investors on our website (investors.chubb.com). We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Securities and Exchange Commission (SEC) Regulation FD (Fair Disclosure). Accordingly, investors should monitor the Investor Information portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this report.


MD&A Index			Page
Forward-Looking Statements			48
Overview			49

Consolidated Operating Results			50

Segment Operating Results			55
Net Realized and Unrealized Gains (Losses)			64
Effective Income Tax Rate			65
Non-GAAP Reconciliation			65
Amortization of Purchased Intangibles and Other Amortization			67
Net Investment Income			69
Interest Expense			69
Investments			69
Critical Accounting Estimates			73

Unpaid Losses and Loss Expenses			73

Asbestos and Environmental (A&E)			73
Fair Value Measurements			73
Catastrophe Management			74
Global Property Catastrophe Reinsurance Program			75

Capital Resources			76
Liquidity			77
Information Provided In Connection With Outstanding Debt of Subsidiaries			78

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Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Any written or oral statements made by us or on our behalf may include forward-looking statements that reflect our current views with respect to future events and financial performance. The words “believe,” “anticipate,” “estimate,” “project,” “should,” “plan,” “expect,” “intend,” “hope,” “feel,” “foresee,” “will likely result,” “will continue,” and variations thereof and similar expressions, identify forward-looking statements. These forward-looking statements are subject to certain risks, uncertainties, and other factors that could, should potential events occur, cause actual results to differ materially from such statements. These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the U.S. Securities and Exchange Commission (SEC), include but are not limited to:

•actual amount of new and renewal business, premium rates, underwriting margins, market acceptance of our products, and risks associated with the introduction of new products and services and entering new markets; the competitive environment in which we operate, including trends in pricing or in policy terms and conditions, which may differ from our projections, and changes in market conditions that could render our business strategies ineffective or obsolete;

•losses arising out of natural or man-made catastrophes; actual loss experience from insured or reinsured events and the timing of claim payments; the uncertainties of the loss-reserving and claims-settlement processes, including the difficulties associated with assessing environmental damage and asbestos-related latent injuries, the impact of aggregate-policy-coverage limits, the impact of bankruptcy protection sought by various asbestos producers and other related businesses, and the timing of loss payments;

•changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; the ability to collect reinsurance recoverable, credit developments of reinsurers, and any delays with respect thereto and changes in the cost, quality, or availability of reinsurance;

•uncertainties relating to governmental, legislative and regulatory policies, developments, actions, investigations, and treaties; judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms; the effects of data privacy or cyber laws or regulation; global political conditions and possible business disruption or economic contraction that may result from such events;

•severity of pandemics and related risks, and their effects on our business operations and claims activity, and any adverse impact to our insureds, brokers, agents, and employees; actual claims may exceed our best estimate of ultimate insurance losses incurred which could change including as a result of, among other things, the impact of legislative or regulatory actions taken in response to a pandemic;

•developments in global financial markets, including changes in interest rates, stock markets, and other financial markets; increased government involvement or intervention in the financial services industry; the cost and availability of financing, and foreign currency exchange rate fluctuations; changing rates of inflation; and other general economic and business conditions, including the depth and duration of potential recession;

•the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; the amount of dividends received from subsidiaries;

•changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available-for-sale fixed maturity investments before their anticipated recovery;

•actions that rating agencies may take from time to time, such as financial strength or credit ratings downgrades or placing these ratings on credit watch negative or the equivalent;

•the effects of public company bankruptcies and accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues;

•acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, and risks and uncertainties relating to our outstanding purchase of additional interests in Huatai Insurance Group Co., Ltd. (Huatai Group);

•risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens; share repurchase plans and share cancellations;

•loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame;

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•the ability of our technology resources, including information systems and security, to perform as anticipated such as with respect to preventing material information technology failures or third-party infiltrations or hacking resulting in consequences adverse to Chubb or its customers or partners; the ability of our company to increase use of data analytics and technology as part of our business strategy and adapt to new technologies; and

•management’s response to these factors and actual events (including, but not limited to, those described above).

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future events or otherwise.


Overview

Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Companies. Chubb Limited, which is headquartered in Zurich, Switzerland, and its direct and indirect subsidiaries (collectively, the Chubb Group of Companies, Chubb, we, us, or our) are a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide. At March 31, 2024, we had total assets of $235 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $60.5 billion. Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda. We operate through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. For more information on our segments refer to “Segment Information” under Item 1 in our 2023 Form 10-K.

On July 1, 2023, we completed the acquisition of a controlling majority interest of Huatai Group. For the three months ended March 31, 2024, the results of operations of Huatai Group are reported at 100 percent in our consolidated results starting from the acquisition date, with amounts attributable to shareholders other than Chubb reflected under Noncontrolling interests. Huatai Group's life and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment. Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate.

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Consolidated Operating Results – Three Months Ended March 31, 2024 and 2023


	Three Months Ended
	March 31				% Change
(in millions of U.S. dollars, except for percentages)	2024		2023		Q-24 vs. Q-23
Net premiums written	$	12,221	$	10,710	14.1	%
Net premiums written - constant dollars (1)					14.2	%
Net premiums earned	11,583		10,142		14.2	%
Net investment income	1,391		1,107		25.7	%
Net realized gains (losses)	(101)		(77)		30.9	%
Market risk benefits gains (losses)	21		(115)		NM
Total revenues	12,894		11,057		16.6	%
Losses and loss expenses	5,727		5,148		11.2	%
Policy benefits	1,180		797		48.1	%
Policy acquisition costs	2,207		1,948		13.3	%
Administrative expenses	1,070		930		15.0	%
Interest expense	178		160		11.3	%
Other (income) expense	(191)		(296)		(35.6)	%
Amortization of purchased intangibles	80		72		10.8	%
Cigna integration expenses	7		22		(66.9)	%
Total expenses	10,258		8,781		16.8	%
Income before income tax	2,636		2,276		15.9	%
Income tax expense	342		384		(11.0)	%
Net income	$	2,294	$	1,892	21.3	%
Net income attributable to noncontrolling interests	151		—		NM
Net income attributable to Chubb	$	2,143	$	1,892	13.3	%

NM - not meaningful

(1) On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period.

Financial Highlights for the Three Months Ended March 31, 2024

•Net income attributable to Chubb was $2.1 billion compared with $1.9 billion in the prior year period. Net income in the current quarter was driven by strong P&C underwriting results, including growth in net premiums earned and net investment income. Net income included two discrete items: a deferred tax benefit of $55 million related to the Bermuda tax law enacted in December 2023, partially offset by a contribution to the Chubb Charitable Foundation of $30 million ($24 million after-tax).

•Consolidated net premiums written were $12.2 billion, up 14.1 percent. P&C net premiums written increased 12.4 percent, with commercial insurance up 10.0 percent and consumer insurance up 19.3 percent. Life Insurance segment net premiums written increased 26.3 percent due to the impact of the consolidation of Huatai Group on July 1, 2023.

•Pre-tax net investment income was $1.4 billion compared with $1.1 billion in the prior year period, primarily due to strong operating cash flow, higher reinvestment rates on fixed maturities, and the consolidation of Huatai Group.

•Consolidated net premiums earned were $11.6 billion, up 14.2 percent, or 14.5 percent in constant dollars.

•Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $435 million (4.4 percentage points of the P&C combined ratio) and $347 million, respectively, compared with $458 million (5.1

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percentage points of the P&C combined ratio) and $382 million, respectively, in the prior year period.

•Total pre-tax and after-tax favorable prior period development were $207 million and $168 million, respectively, compared with $196 million and $149 million, respectively, in the prior year period.

•The P&C combined ratio was 86.0 percent compared with 86.3 percent in the prior year period. The current year ratio improved primarily due to lower catastrophe losses and higher favorable prior period development. The P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.7 percent compared with 83.4 percent in the prior year period.

•Operating cash flow was $3.2 billion compared with $2.3 billion in the prior year period.

•Chubb shareholders' equity increased $1.0 billion in the quarter, primarily from net income attributable to Chubb of $2.1 billion, partially offset by total capital returned to shareholders of $666 million and net unrealized losses on our investment portfolio of $648 million, principally due to the mark-to-market impact in the fixed-income portfolio. Total capital returned to shareholders comprises dividends of $350 million, and share repurchases of $316 million at an average purchase price of $258.75 per share.


Net Premiums Written	Three Months Ended March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024		2023		Q-24 vs. Q-23		C$ Q-24 vs. Q-23
Property and other short-tail lines	$	2,360	$	2,025	16.5	%	16.4	%
Commercial casualty	2,210		1,903		16.1	%	15.8	%
Financial lines	1,108		1,156		(4.1)	%	(4.4)	%
Workers' compensation	629		618		1.8	%	1.8	%
Commercial multiple peril (1)	368		340		8.0	%	8.0	%
Surety	184		160		15.1	%	13.0	%
Total Commercial P&C lines	6,859		6,202		10.6	%	10.3	%

Agriculture	249		293		(15.0)	%	(15.0)	%

Personal homeowners	1,065		902		18.1	%	18.4	%
Personal automobile	642		427		50.4	%	44.3	%
Personal other	565		507		11.4	%	11.8	%
Total Personal lines	2,272		1,836		23.8	%	22.8	%

Global A&H - P&C	849		809		4.9	%	5.9	%

Reinsurance lines	359		277		29.7	%	29.7	%
Total Property and Casualty lines	10,588		9,417		12.4	%	12.2	%



Life Insurance	1,633		1,293		26.3	%	29.7	%
Total consolidated	$	12,221	$	10,710	14.1	%	14.2	%

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

The increase in consolidated net premiums written for the three months ended March 31, 2024, reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business. The consolidation of Huatai Group's life and P&C businesses contributed $559 million, or 5.0 percentage points, for the three months ended March 31, 2024.

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•Property and other short-tail lines grew globally due to strong new business and retention, including both rate and exposure increases.

•Commercial casualty grew globally due to strong retention, including both rate and exposure increases, and strong new business which included a large structured transaction in North America for the current year.

•Financial lines declined in the quarter due to lost business due to a competitive market environment and lower retention.

•Workers' compensation grew slightly due to new business and retention, including exposure increases.

•Commercial multiple peril grew due to strong new business and retention, including higher rates, in North America.

•Surety grew due to strong new business.

•Agriculture declined primarily due to a return of premium under the U.S. government risk-sharing formula related to the 2023 crop year and lower commodity prices in the current year.

•Personal lines grew globally due to strong new business and retention, including both rate and exposure increases, and the consolidation of Huatai.

•Global A&H – P&C grew in Europe and Asia, with Asia benefiting from the consolidation of Huatai.

•Reinsurance lines reflected continued growth, mainly in property lines.

•Life Insurance grew principally due to the consolidation of Huatai Group and underlying growth in existing business in Asia. The consolidation of Huatai Group contributed $265.8 million, or 20.6 percentage points, to growth.

For additional information on net premiums written, refer to the segment results discussions.

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Net Premiums Earned

Net premiums earned for short-duration contracts, typically P&C contracts, generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Net premiums earned for long-duration contracts, typically traditional life contracts, generally are recognized as earned when due from policyholders. For the three months ended March 31, 2024, net premiums earned increased $1.4 billion, up 14.2 percent, or 14.5 percent in constant dollars. P&C net premiums earned increased 12.3 percent, or 12.2 percent in constant dollars, comprising growth in commercial and consumer lines of 11.5 percent and 14.2 percent, respectively.

Catastrophe Losses and Prior Period Development

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. For events outside of the U.S. and Canada, we generally use a similar definition. Catastrophe losses are net of reinsurance and include reinstatement premiums, which 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.

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. PPD includes adjustments relating 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. Refer to the Non-GAAP Reconciliation section for further information on reinstatement premiums on catastrophe losses and adjustments to prior period development.


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Net catastrophe losses	$	435	$	458
Favorable prior period development	$	207	$	196

Catastrophe losses through March 31, 2024 and 2023, were primarily from the following events:

•2024: Severe weather-related events in the U.S and internationally.

•2023: Severe weather-related events in the U.S. and internationally; and New Zealand storms.

Pre-tax net favorable PPD for the three months ended March 31, 2024, was $207 million including adverse development of $104 million in long-tail lines, principally in large account commercial excess and umbrella lines. Net favorable development of $311 million in short-tail lines is primarily in property and credit-related lines.

Pre-tax net favorable PPD for the three months ended March 31, 2023, was $196 million including adverse development of $19 million in long-tail lines, principally from accident years 2013 through 2017. The net favorable development of $215 million in short-tail lines is primarily in surety and A&H lines.

Refer to the prior period development discussion in Note 7 to the Consolidated Financial Statements for additional information.

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P&C Combined Ratio

In evaluating our segments, excluding Life Insurance financial performance, we use the P&C combined ratio, the loss and loss expense ratio, the policy acquisition cost ratio, and the administrative expense ratio. We calculate these ratios by dividing the respective expense amounts by net premiums earned. We do not calculate these ratios for the Life Insurance segment as we do not use these measures to monitor or manage the business in that segment. The P&C combined ratio is determined by adding the loss and loss expense ratio, the policy acquisition cost ratio, and the administrative expense ratio. A P&C combined ratio under 100 percent indicates underwriting income, and a combined ratio exceeding 100 percent indicates underwriting loss.


	Three Months Ended
	March 31
	2024		2023
Loss and loss expense ratio
CAY loss ratio excluding catastrophe losses	56.1	%	55.9	%
Catastrophe losses	4.4	%	5.2	%
Favorable prior period development	(2.4)	%	(2.2)	%
Loss and loss expense ratio	58.1	%	58.9	%
Policy acquisition cost ratio	19.2	%	18.8	%
Administrative expense ratio	8.7	%	8.6	%
P&C Combined ratio	86.0	%	86.3	%

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting lower catastrophe losses, and higher favorable prior period development. The CAY loss ratio excluding catastrophe losses increased for the three months ended March 31, 2024, primarily from the unfavorable impact of a large structured transaction in North America and higher loss trends in certain casualty lines, partially offset by a higher percentage of net premiums earned from property lines, and the consolidation of Huatai Group's P&C business effective July 1, 2023, which has a lower loss ratio.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, primarily due to higher ceded commissions and the impact of the consolidation of Huatai, partially offset by the favorable impact of the large structured transaction written in the current year that generated minimal acquisition expenses.

The administrative expense ratio was relatively flat for the three months ended March 31, 2024, as the impact of increased spending to support growth and the consolidation of Huatai were offset by the favorable impact of higher net premiums earned.

Policy benefits

Policy benefits represent losses on contracts classified as long-duration and generally include accident and supplemental health products, term and whole life products, endowment products, and annuities. Policy benefits for the three months ended March 31, 2024, include the results of Huatai Group. Refer to the Life Insurance segment operating results section for further discussion.

For the three months ended March 31, 2024 and 2023, Policy benefits were $1,180 million and $797 million, respectively, which include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account reporting under U.S. GAAP of $10 million and $(25) million, respectively. The offsetting movements of these liabilities are recorded in Other (income) expense on the Consolidated statements of operations. Excluding the separate account gains and losses, Policy benefits were $1,170 million and $822 million for the three months ended March 31, 2024 and 2023, respectively.

Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Interest expense, Amortization of purchased intangibles, and Income tax expense. The increase in Policy benefits for 2024 is primarily due to the consolidation of Huatai Group.

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Segment Operating Results – Three Months Ended March 31, 2024 and 2023

We operate through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. For more information on our segments refer to “Segment Information” under Item 1 in our 2023 Form 10-K.

North America Commercial P&C Insurance

The North America Commercial P&C Insurance segment comprises operations that provide P&C insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes our North America Major Accounts and Specialty Insurance division (large corporate accounts and wholesale business), and the North America Commercial Insurance division (principally middle market, and small commercial accounts).


	Three Months Ended
	March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024			2023			Q-24 vs. Q-23
Net premiums written	$	4,689		$	4,288		9.4		%
Net premiums earned	4,880			4,369			11.7		%
Losses and loss expenses	3,175			2,729			16.3		%
Policy acquisition costs	688			613			12.2		%
Administrative expenses	328			295			11.2		%
Underwriting income	689			732			(5.9)		%
Net investment income	826			698			18.3		%
Other (income) expense	7			7			—
Segment income	$	1,508		$	1,423		5.9		%
Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses	61.4		%	60.5		%	0.9	pts
Catastrophe losses	4.9		%	3.7		%	1.2	pts
Prior period development	(1.2)		%	(1.7)		%	0.5	pts
Loss and loss expense ratio	65.1		%	62.5		%	2.6	pts
Policy acquisition cost ratio	14.1		%	14.0		%	0.1	pts
Administrative expense ratio	6.7		%	6.7		%	—	pts
Combined ratio	85.9		%	83.2		%	2.7	pts


Net Catastrophe Losses and Prior Period Development	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Net catastrophe losses	$	236	$	162
Favorable prior period development	$	48	$	72

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S. flooding, hail, tornadoes, wind events, and winter storm losses.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

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Premiums

Net premiums written increased $401 million, or 9.4 percent, for the three months ended March 31, 2024, reflecting strong new business and retention, including rate and exposure increases. The increase in premiums was across most lines of business, most notably in property lines and casualty lines, which included a large structured transaction in the current year. This growth was partially offset by declines in financial lines, reflecting a competitive market environment and lower retention,

and planned corrective underwriting actions in Major Accounts primary and excess casualty.

Net premiums earned increased $511 million, or 11.7 percent, for the three months ended March 31, 2024, reflecting the growth in net premiums written described above, including from the large structured transaction, which was fully earned when written.

Combined Ratio

The loss and loss expense ratio increased for the three months ended March 31, 2024, reflecting higher catastrophe losses and lower favorable prior period development. The CAY loss ratio excluding catastrophe losses increased for the three months ended March 31, 2024, driven by the unfavorable impact of the large structured transaction and higher loss trends in certain casualty lines, partially offset by a higher percentage of net premiums earned from property lines.

The policy acquisition cost ratio and the administrative expense ratio were relatively flat for the three months ended March 31, 2024, reflecting the favorable impact of the large structured transaction in the current year that generated minimal expenses, partially offset by a lower ceded commission benefit in the current year.

North America Personal P&C Insurance

The North America Personal P&C Insurance segment comprises operations that provide high net worth personal lines products, including homeowners and complementary products such as valuable articles, excess liability, automobile, and recreational marine insurance and services in the U.S. and Canada.


	Three Months Ended
	March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024			2023			Q-24 vs. Q-23
Net premiums written	$	1,456		$	1,296		12.3		%
Net premiums earned	1,471			1,320			11.4		%
Losses and loss expenses	899			888			1.3		%
Policy acquisition costs	300			272			10.1		%
Administrative expenses	86			79			9.3		%
Underwriting income	186			81			129.8		%
Net investment income	102			82			24.5		%
Other (income) expense	1			1			—
Amortization of purchased intangibles	2			2			—
Segment income	$	285		$	160		78.2		%
Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses	53.1		%	53.9		%	(0.8)	pts
Catastrophe losses	11.6		%	12.1		%	(0.5)	pts
Prior period development	(3.6)		%	1.3		%	(4.9)	pts
Loss and loss expense ratio	61.1		%	67.3		%	(6.2)	pts
Policy acquisition cost ratio	20.4		%	20.6		%	(0.2)	pts
Administrative expense ratio	5.9		%	6.0		%	(0.1)	pts
Combined ratio	87.4		%	93.9		%	(6.5)	pts

NM - Not meaningful

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Net Catastrophe Losses and Prior Period Development	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Net catastrophe losses	$	170	$	159
Favorable (unfavorable) prior period development	$	52	$	(17)

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S. winter storm losses, flooding, hail, tornadoes, and wind events.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

Premiums

Net premiums written increased $160 million, or 12.3 percent, for the three months ended March 31, 2024, driven by strong new business and retention, including positive rate and exposure increases in all lines.

Net premiums earned increased $151 million, or 11.4 percent, for the three months ended March 31, 2024, reflecting the growth in net premiums written described above.

Combined Ratio

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting a lower impact from catastrophe losses and favorable prior period development, compared with unfavorable development in the prior year period. The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, partly offset by an increase in excess liability and auto loss trends.

The policy acquisition cost ratio and the administrative expense ratio were relatively flat for the three months ended March 31, 2024.

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North America Agricultural Insurance

The North America Agricultural Insurance segment comprises our North American based businesses that provide a variety of coverages in the U.S. and Canada including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail through Rain and Hail Insurance Service, Inc. (Rain and Hail), as well as farm and ranch and specialty P&C commercial insurance products and services through our Agriculture P&C business.


	Three Months Ended
	March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024			2023			Q-24 vs. Q-23
Net premiums written	$	249		$	293		(15.0)		%
Net premiums earned	128			159			(19.4)		%
Losses and loss expenses	49			140			(64.9)		%
Policy acquisition costs	21			15			44.7		%
Administrative expenses	2			3			(29.1)		%
Underwriting income	56			1			NM
Net investment income	21			17			27.1		%
Other (income) expense	—			1			NM
Amortization of purchased intangibles	6			6			—
Segment income	$	71		$	11		NM
Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses	69.5		%	73.1		%	(3.6)	pts
Catastrophe losses	2.1		%	15.4		%	(13.3)	pts
Prior period development	(33.0)		%	—			(33.0)	pts
Loss and loss expense ratio	38.6		%	88.5		%	(49.9)	pts
Policy acquisition cost ratio	16.8		%	9.3		%	7.5	pts
Administrative expense ratio	1.2		%	1.4		%	(0.2)	pts
Combined ratio	56.6		%	99.2		%	(42.6)	pts

NM - Not meaningful


Net Catastrophe Losses and Prior Period Development	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Net catastrophe losses	$	3	$	24
Favorable prior period development	$	28	$	—

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S. flooding, hail, tornadoes, wind events, and winter storm losses.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

Premiums

Net premiums written decreased $44 million, or 15.0 percent, for the three months ended March 31, 2024, primarily due to a return of premium of $41 million under the U.S. government risk-sharing formula related to the 2023 crop year and lower commodity prices in the current year. Under the profit-sharing agreement, we ceded more premium due to lower losses experienced in certain states. The decrease was partially offset by strong new business and rate increases in our Agriculture P&C business.

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Net premiums earned decreased $31 million, or 19.4 percent, for the three months ended March 31, 2024, reflecting the factors described above.

Combined Ratio

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting higher favorable prior period development and lower catastrophe losses. The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, due to higher net premiums earned from our Agriculture P&C business that has a lower loss ratio, and earned rate exceeding loss trend in that business.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, reflecting the impact of the government profit share adjustment and agent commission adjustments relating to the 2023 crop year, and higher net premiums earned from our Agriculture P&C business that has a higher policy acquisition cost ratio.

Overseas General Insurance

Overseas General Insurance segment comprises Chubb International and Chubb Global Markets (CGM). Chubb International comprises our international commercial P&C traditional and specialty lines serving large corporations, middle market and small customers; A&H and traditional and specialty personal lines business serving local territories outside the U.S., Bermuda, and Canada. CGM, our London-based international commercial P&C excess and surplus lines business, includes Lloyd's of London (Lloyd's) Syndicate 2488. Chubb provides funds at Lloyd's to support underwriting by Syndicate 2488 which is managed by Chubb Underwriting Agencies Limited. Effective July 1, 2023, the Overseas General Insurance segment includes 100 percent of the results of Huatai Group's P&C business as required under consolidation accounting. We previously included our share of Huatai results based on our equity method investment within Other (income) expense.


	Three Months Ended
	March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024			2023			Q-24 vs. Q-23
Net premiums written	$	3,835		$	3,263		17.5		%
Net premiums written - constant dollars							16.7		%
Net premiums earned	3,198			2,786			14.8		%
Loss and loss expenses	1,426			1,237			15.3		%
Policy benefits	100			110			(9.1)		%
Policy acquisition costs	823			713			15.4		%
Administrative expenses	331			280			18.4		%
Underwriting income	518			446			16.1		%
Net investment income	267			188			42.5		%
Other (income) expense	5			(9)			NM
Amortization of purchased intangibles	20			18			17.1		%
Segment income	$	760		$	625		21.6		%


Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses	49.7		%	49.4		%	0.3	pts
Catastrophe losses	0.8		%	4.1		%	(3.3)	pts
Prior period development	(2.8)		%	(5.1)		%	2.3	pts
Loss and loss expense ratio	47.7		%	48.4		%	(0.7)	pts
Policy acquisition cost ratio	25.7		%	25.6		%	0.1	pts
Administrative expense ratio	10.4		%	10.0		%	0.4	pts
Combined ratio	83.8		%	84.0		%	(0.2)	pts

NM - not meaningful

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Net Catastrophe Losses and Prior Period Development


	Three Months Ended
	March 31
(in millions of U.S. dollars)	2024		2023
Catastrophe losses	$	26	$	113
Favorable prior period development	$	89	$	143

Catastrophe losses through March 31, 2024 and 2023, were primarily from the following events:

•2024: International weather-related events.

•2023: Storms in New Zealand and international weather-related events.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.


Net Premiums Written by Region	Three months ended March 31
(in millions of U.S. dollars, except for percentages)	2024		2024 % of Total		2023		2023 % of Total		C$ 2023		Q-24 vs. Q-23		C$ Q-24 vs. Q-23
Region
Europe, Middle East, and Africa	$	1,869	49	%	$	1,721	53	%	$	1,749	8.6	%	6.8	%
Asia (1)	1,161		30	%	861		26	%	829		34.7	%	40.1	%
Latin America	777		20	%	661		20	%	688		17.5	%	12.9	%


Other (2)	28		1	%	20		1	%	20		42.5	%	42.9	%
Net premiums written	$	3,835	100	%	$	3,263	100	%	$	3,286	17.5	%	16.7	%

(1) 2024 includes the consolidated results of Huatai P&C effective July 1, 2023.

(2) Includes the international supplemental A&H business of Combined Insurance and other international operations.

Premiums

Overall, net premiums written increased $572 million, or $549 million on a constant dollar basis, for the three months ended March 31, 2024 reflecting growth in commercial lines of 12.2 percent, or 11.4 percent on a constant-dollar basis, and growth in consumer lines of 27.1 percent, or 26.2 percent on a constant-dollar basis.

Europe increased for the three months ended March 31, 2024, supported by both our wholesale and retail divisions. The growth in commercial lines was driven by higher new business, and positive rate increases, primarily in commercial property and casualty lines. Consumer lines increased primarily due to new business from growth in our digital channels, including travel, and high net worth.

Asia increased for the three months ended March 31, 2024, reflecting the consolidation of Huatai Group's P&C business effective July 1, 2023, as well as higher new business, higher retention and positive rate increases in commercial lines. Consumer lines had strong growth in Southeast Asian countries with growth in new business for both A&H and personal lines, fueled in part by new digital distribution.

Latin America increased for the three months ended March 31, 2024, reflecting growth in commercial lines driven by growth in new business and positive rate increases across property and casualty lines. Our personal lines business, primarily automobile in Mexico, also continues to have strong growth.

Net premiums earned increased $412 million, or $402 million on a constant-dollar basis, for the three months ended March 31, 2024, reflecting the increase in net premiums written described above.

Combined Ratio

The combined ratio improved for the three months ended March 31, 2024, primarily reflecting lower catastrophe losses. The CAY combined ratio excluding catastrophe losses increased, principally related to the consolidation of Huatai.

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Global Reinsurance

The Global Reinsurance segment represents our reinsurance operations comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Global Reinsurance markets its reinsurance products worldwide primarily through reinsurance brokers under the Chubb Tempest Re brand name and provides a broad range of traditional and non-traditional reinsurance coverage to a diverse array of primary P&C companies.


	Three Months Ended
	March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024			2023			Q-23 vs. Q-22
Net premiums written	$	359		$	277		29.7		%
Net premiums written - constant dollars							29.7		%
Net premiums earned	295			244			20.8		%
Losses and loss expenses	137			112			22.4		%
Policy acquisition costs	81			62			29.9		%
Administrative expenses	9			9			—
Underwriting income	68			61			12.3		%
Net investment income	57			49			15.1		%
Other (income) expense	—			(1)			100		%

Segment income	$	125		$	111		12.3		%


Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses	46.0		%	49.0		%	(3.0)	pts
Catastrophe losses	—			—			—	pts
Prior period development	0.3		%	(3.3)		%	3.6	pts
Loss and loss expense ratio	46.3		%	45.7		%	0.6	pts
Policy acquisition cost ratio	27.5		%	25.6		%	1.9	pts
Administrative expense ratio	3.1		%	3.8		%	(0.7)	pts
Combined ratio	76.9		%	75.1		%	1.8	pts

Net Catastrophe Losses and Prior Period Development


	Three Months Ended
	March 31
(in millions of U.S dollars)	2024		2023
Catastrophe losses	$	—	$	—
Favorable (unfavorable) prior period development	$	(1)	$	8

Refer to Note 7 in the Consolidated Financial Statements for detail on prior period development.

Premiums

Net premiums written increased $82 million for the three months ended March 31, 2024, primarily reflecting continued growth, mainly in catastrophe exposed property lines.

Net premiums earned increased $51 million for the three months ended March 31, 2024, primarily reflecting the increase in net premiums written described above.

Combined Ratio

The loss and loss expense ratio increased for the three months ended March 31, 2024, mainly reflecting unfavorable prior period development compared with favorable development in the prior year. The CAY loss ratio excluding catastrophe losses

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improved for the three months ended March 31, 2024, primarily from a shift in the mix of business towards property lines, which generally has lower loss ratios excluding catastrophe losses.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, primarily due to a shift in the mix of business and the impact of a treaty written in the prior year with a lower acquisition cost ratio.

The administrative expense ratio improved for the three months ended March 31, 2024, reflecting the favorable impact of higher net premiums earned, as described above.

Life Insurance

The Life Insurance segment comprises our international life operations. Effective July 1, 2023, the Life Insurance segment includes 100 percent of the results of Huatai Group's life and asset management business as required under consolidation accounting. We previously included our share of Huatai results based on our equity method investment within Other (income) expense. The Life Insurance segment also includes Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance.


	Three Months Ended
	March 31				% Change
(in millions of U.S. dollars, except for percentages)	2024		2023		Q-24 vs. Q-23
Net premiums written	$	1,633	$	1,293	26.3	%
Net premiums written - constant dollars					29.7	%
Net premiums earned	1,611		1,264		27.5	%
Losses and loss expenses	32		32		—
Policy benefits	1,070		712		50.3	%
Policy acquisition costs	294		273		7.7	%
Administrative expenses	207		167		23.8	%
Net investment income	230		153		50.8	%

Other (income) expense	(40)		(15)		155.0	%
Amortization of purchased intangibles	10		4		192.8	%
Segment income	$	268	$	244	9.8	%

Premiums

Net premiums written increased $340 million, or $374 million on a constant-dollar basis, for the three months ended March 31, 2024.

For our international life operations, net premiums written increased 31.5 percent for the three months ended March 31, 2024, substantially due to the consolidation of Huatai Group's life business which contributed $265.8 million or 25.4 percentage points. The remaining increase in net premiums written is primarily driven by the underlying growth of existing business in Asia, specifically in Hong Kong, Taiwan, and Southeast Asia, as well as by higher new business in Latin America.

Net premiums written in our North American Combined Insurance business increased 5.5 percent for the three months ended March 31, 2024, due to growth in its worksite benefits business of 20.2 percent, partially offset by the non-renewal of a large program.

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Deposits

The following table presents deposits collected on universal life and investment contracts:


	Three Months Ended
	March 31						% Change
(in millions of U.S. dollars, except for percentages)	2024		2023		C$ 2023		Q-24 vs. Q-23		C$ Q-24 vs. Q-23
Deposits collected on universal life and investment contracts	$	600	$	309	$	301	93.9	%	99.4	%

Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our Consolidated statements of operations in accordance with U.S. GAAP. New life deposits are an important component of production, and although they do not significantly affect current period income from operations, they are key to our efforts to grow our business. Life deposits collected increased $291 million for the three months ended March 31, 2024, primarily from the consolidation of Huatai Life business.

Life Insurance segment income

Life Insurance segment income increased $24 million for the three months ended March 31, 2024 reflecting the growth in premiums described above and includes higher-than-expected other income totaling $8 million.

Corporate

Corporate results primarily include the results of our non-insurance companies, income and expenses not attributable to reportable segments, and loss and loss expenses of asbestos and environmental (A&E) liabilities and certain other non-A&E run-off exposures, including molestation. Effective July 1, 2023, 100 percent of Huatai Group’s non-insurance operations results, comprising real estate and holding company activity, are included in Corporate.


	Three Months Ended
	March 31				% Change
(in millions of U.S. dollars, except for percentages)	2024		2023		Q-24 vs. Q-23
Losses and loss expenses	$	10	$	11	(2.9)	%

Administrative expenses	107		97		9.4	%
Underwriting loss	117		108		8.1	%
Net investment income (loss)	(26)		11		NM
Other (income) expense	(68)		(214)		(68.1)	%
Amortization of purchased intangibles	42		42		—
Net realized gains (losses)	(100)		(76)		31.4	%
Market risk benefits gains (losses)	21		(115)		NM
Interest expense	178		160		11.3	%
Cigna integration expenses	7		22		(66.9)	%
Income tax expense	342		384		(11.0)	%
Net loss	(723)		(682)		5.7	%
Net income attributable to noncontrolling interests	151		—		NM
Net loss attributable to Chubb	$	(874)	$	(682)	27.9	%

NM - not meaningful

Administrative expenses increased $10 million for the three months ended March 31, 2024, respectively, primarily due to increased spending to support digital growth initiatives.

Cigna integration expenses principally comprised legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition. These expenses are one-time in nature and are not related to the on-going business activities

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of the segments. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs and they are therefore excluded from our definition of segment income.

Refer to the respective sections that follow for a discussion of Net realized gains (losses), Net investment income (loss), Amortization of purchased intangibles, and Income tax expense (benefit). Refer to Notes 10 and 16 to the Consolidated Financial Statements for additional information on Market risk benefits gains (losses) and Other (income) expense, respectively.


Net Realized and Unrealized Gains (Losses)

We take a long-term view with our investment strategy, and our investment managers manage our investment portfolio to maximize total return within specific guidelines designed to minimize risk. The majority of our investment portfolio is available-for-sale and reported at fair value.

The effect of market movements on our fixed maturities available-for-sale portfolio impacts Net income (through Net realized gains (losses)) when securities are sold, when we write down an asset, or when we record a change to the valuation allowance for expected credit losses. For a further discussion related to how we assess the valuation allowance for expected credit losses and the related impact on Net income, refer to Note 1 f) to the Consolidated Financial Statements in our 2023 Form 10-K. The effect of market movements on fixed maturities related to consolidated investment products (CIP) in the Huatai portfolio (Fixed maturities - CIP) impact Net realized gains (losses). Additionally, Net income is impacted through the reporting of changes in the fair value of public and private equity securities and derivatives, including financial futures, options, and swaps. Changes in unrealized appreciation and depreciation on available-for-sale securities, resulting from the revaluation of securities held, changes in cumulative foreign currency translation adjustment, changes in current discount rate on future policy benefits, changes in instrument-specific credit risk on market risk benefits, unrealized postretirement benefit obligations liability adjustment, and cross-currency swaps designated as hedges for accounting purposes are reported as separate components of Accumulated other comprehensive income (loss) in Shareholders’ equity in the Consolidated balance sheets.

The following tables present our net realized and unrealized gains (losses):


	Three Months Ended March 31
					2024						2023

(in millions of U.S. dollars)	Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Net Impact		Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Net Impact
Fixed maturities	$	49	$	(677)	$	(628)	$	(180)	$	1,786	$	1,606
Investment and embedded derivative instruments	(43)		—		(43)		(46)		—		(46)
Public equity
Sales	(3)		—		(3)		(5)		—		(5)
Mark-to-market	6		—		6		16		—		16
Private equity (less than 3 percent ownership)

Mark-to-market	31		—		31		15		—		15
Total investment portfolio	40		(677)		(637)		(200)		1,786		1,586
Other derivative instruments	(2)		—		(2)		(1)		—		(1)
Foreign exchange	(131)		80		(51)		131		(177)		(46)
Current discount rate on future policy benefits	—		(53)		(53)		—		(151)		(151)
Instrument-specific credit risk on market risk benefits	—		5		5		—		(3)		(3)
Other	(8)		31		23		(7)		(33)		(40)
Net gains (losses), pre-tax	$	(101)	$	(614)	$	(715)	$	(77)	$	1,422	$	1,345

Pre-tax net unrealized losses of $677 million in our investment portfolio for the three months ended March 31, 2024, were primarily driven by higher interest rates.

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Pre-tax net realized losses of $101 million for the three months ended March 31, 2024 mainly comprised foreign exchange losses.


Effective Income Tax Rate

Our effective tax rate (ETR) reflects a mix of income or losses in jurisdictions with a wide range of tax rates, permanent differences between U.S. GAAP and local tax laws, and the impact of discrete items. A change in the geographic mix of earnings could impact our ETR.

For the three months ended March 31, 2024, our ETR was 13.0 percent compared to 16.9 percent in the prior year period. The ETR for each period was impacted by our mix of earnings among various jurisdictions and by discrete tax items, including an incremental deferred tax benefit of $55 million related to the Bermuda tax law enacted in December 2023.


Non-GAAP Reconciliation

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 GAAP.

We provide financial measures, including net premiums written, net premiums earned, and underwriting income on a constant-dollar basis. 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.

P&C performance metrics comprise consolidated operating results (including Corporate) and exclude the operating results of the Life Insurance segment. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s P&C operations which are the most economically similar. We exclude the Life Insurance segment because the results of this business do not always correlate with the results of our P&C operations.

P&C combined ratio is 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. 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.

CAY P&C combined ratio excluding catastrophe losses (CATs) excludes CATs and prior period development (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.

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 PPD 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 adjustable 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.

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The following tables present the calculation of combined ratio, as reported for each segment to P&C combined ratio, adjusted for CATs and PPD:


		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
Three Months Ended
March 31, 2024
(in millions of U.S. dollars except for ratios)
Numerator
Losses and loss expenses/policy benefits	A	$	3,175		$	899		$	49		$	1,526		$	137		$	10	$	5,796



Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments		(236)			(170)			(3)			(26)			—			—		(435)
Reinstatement premiums collected (expensed) on catastrophe losses		—			—			—			—			—			—		—
Catastrophe losses, gross of related adjustments		(236)			(170)			(3)			(26)			—			—		(435)
PPD and related adjustments
PPD, net of related adjustments - favorable (unfavorable)		48			52			28			89			(1)			(9)		207
Net premiums earned adjustments on PPD - unfavorable (favorable)		—			—			39			—			—			—		39
Expense adjustments - unfavorable (favorable)		8			—			3			—			—			—		11

PPD, gross of related adjustments - favorable (unfavorable)		56			52			70			89			(1)			(9)		257
CAY loss and loss expense ex CATs	B	$	2,995		$	781		$	116		$	1,589		$	136		$	1	$	5,618
Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	1,016		$	386		$	23		$	1,154		$	90		$	107	$	2,776


Expense adjustments - favorable (unfavorable)		(8)			—			(3)			—			—			—		(11)
Policy acquisition costs and administrative expenses, adjusted	D	$	1,008		$	386		$	20		$	1,154		$	90		$	107	$	2,765
Denominator
Net premiums earned	E	$	4,880		$	1,471		$	128		$	3,198		$	295				$	9,972

Net premiums earned adjustments on PPD - unfavorable (favorable)		—			—			39			—			—					39

Net premiums earned excluding adjustments	F	$	4,880		$	1,471		$	167		$	3,198		$	295				$	10,011
P&C Combined ratio
Loss and loss expense ratio	A/E	65.1		%	61.1		%	38.6		%	47.7		%	46.3		%			58.1		%
Policy acquisition cost and administrative expense ratio	C/E	20.8		%	26.3		%	18.0		%	36.1		%	30.6		%			27.9		%
P&C Combined ratio		85.9		%	87.4		%	56.6		%	83.8		%	76.9		%			86.0		%
CAY P&C Combined ratio ex CATs
Loss and loss expense ratio, adjusted	B/F	61.4		%	53.1		%	69.5		%	49.7		%	46.0		%			56.1		%
Policy acquisition cost and administrative expense ratio, adjusted	D/F	20.6		%	26.2		%	12.1		%	36.1		%	30.5		%			27.6		%
CAY P&C Combined ratio ex CATs		82.0		%	79.3		%	81.6		%	85.8		%	76.5		%			83.7		%
Combined ratio
Combined ratio																			86.0		%
Add: impact of gains and losses on crop derivatives																			—
P&C Combined ratio																			86.0		%
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.

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		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
Three Months Ended
March 31, 2023
(in millions of U.S. dollars except for ratios)
Numerator
Losses and loss expenses/policy benefits	A	$	2,729		$	888		$	140		$	1,347		$	112		$	11	$	5,227



Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments		(162)			(159)			(24)			(113)			—			—		(458)
Reinstatement premiums collected (expensed) on catastrophe losses		—			—			—			—			—			—		—
Catastrophe losses, gross of related adjustments		(162)			(159)			(24)			(113)			—			—		(458)
PPD and related adjustments
PPD, net of related adjustments - favorable (unfavorable)		72			(17)			—			143			8			(10)		196
Expense adjustments - unfavorable (favorable)		3			—			—			—			—			—		3
PPD reinstatement premiums - unfavorable (favorable)		—			(1)			—			—			—			—		(1)

PPD, gross of related adjustments - favorable (unfavorable)		75			(18)			—			143			8			(10)		198
CAY loss and loss expense ex CATs	B	$	2,642		$	711		$	116		$	1,377		$	120		$	1	$	4,967
Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	908		$	351		$	18		$	993		$	71		$	97	$	2,438
Expense adjustments - favorable (unfavorable)		(3)			—			—			—			—			—		(3)
Policy acquisition costs and administrative expenses, adjusted	D	$	905		$	351		$	18		$	993		$	71		$	97	$	2,435
Denominator
Net premiums earned	E	$	4,369		$	1,320		$	159		$	2,786		$	244				$	8,878
PPD reinstatement premiums - unfavorable (favorable)		—			(1)			—			—			—					(1)

Net premiums earned excluding adjustments	F	$	4,369		$	1,319		$	159		$	2,786		$	244				$	8,877
P&C Combined ratio
Loss and loss expense ratio	A/E	62.5		%	67.3		%	88.5		%	48.4		%	45.7		%			58.9		%
Policy acquisition cost and administrative expense ratio	C/E	20.7		%	26.6		%	10.7		%	35.6		%	29.4		%			27.4		%
P&C Combined ratio		83.2		%	93.9		%	99.2		%	84.0		%	75.1		%			86.3		%
CAY P&C Combined ratio ex CATs
Loss and loss expense ratio, adjusted	B/F	60.5		%	53.9		%	73.1		%	49.4		%	49.0		%			55.9		%
Policy acquisition cost and administrative expense ratio, adjusted	D/F	20.7		%	26.7		%	10.8		%	35.7		%	29.4		%			27.5		%
CAY P&C Combined ratio ex CATs		81.2		%	80.6		%	83.9		%	85.1		%	78.4		%			83.4		%
Combined ratio
Combined ratio																			86.3		%
Add: impact of gains and losses on crop derivatives																			—
P&C Combined ratio																			86.3		%
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.

Amortization of Purchased Intangibles and Other Amortization

Amortization of purchased intangibles

Amortization expense related to purchased intangibles was $80 million and $72 million for the three months ended March 31, 2024 and 2023, respectively.

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At March 31, 2024, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,547 million.

The following table presents, as of March 31, 2024, the expected reduction to the deferred tax liability associated with the amortization of Other intangible assets, at current foreign currency exchange rates, for the second through fourth quarters of 2024 and for the next five years:



For the Years Ending December 31 (in millions of U.S. dollars)	Reduction to deferred tax liability associated with intangible assets
Second quarter of 2024	$	21
Third quarter of 2024	20
Fourth quarter of 2024	20
2025	75
2026	69
2027	64
2028	61
2029	54
Total	$	384

Amortization of the fair value adjustment on assumed long-term debt

The following table presents, as of March 31, 2024, the expected amortization benefit from the fair value adjustment on assumed long-term debt related to the Chubb Corp acquisition for the second through fourth quarters of 2024 and for the next five years:


For the Years Ending December 31 (in millions of U.S. dollars)	Amortization benefit of the fair value adjustment on assumed long-term debt (1)
Second quarter of 2024	$	5
Third quarter of 2024	5
Fourth quarter of 2024	6
2025	21
2026	21
2027	21
2028	21
2029	21
Total	$	121

(1)Recorded as a reduction to Interest expense in the Consolidated statements of operations.

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Net Investment Income


	Three Months Ended March 31
(in millions of U.S. dollars)	2024		2023
Fixed maturities (1)	$	1,311	$	1,062
Short-term investments	49		38
Other interest income	15		17
Equity securities	24		9
Private equities	16		9
Other investments	23		17
Gross investment income (1)	1,438		1,152
Investment expenses	(47)		(45)
Net investment income (1)	$	1,391	$	1,107
(1) Includes amortization expense related to fair value adjustment of acquired invested assets	$	(5)	$	(2)

Net investment income is influenced by a number of factors including the amounts and timing of inward and outward cash flows, the level of interest rates, and changes in overall asset allocation. Net investment income increased 25.7 percent for the three months ended March 31, 2024, primarily due to higher reinvestment rates on fixed maturities and the consolidation of Huatai Group.

For private equities where we own less than three percent, investment income is included within Net investment income in the table above. For private equities where we own more than three percent, investment income is included within Other (income) expense in the Consolidated statements of operations. Excluded from Net investment income is the mark-to-market movement for private equities, which is recorded within either Other (income) expense or Net realized gains (losses) based on our percentage of ownership. The total mark-to-market movement for private equities excluded from Net investment income was as follows:


	Three Months Ended March 31
(in millions of U.S. dollars)	2024		2023



Total mark-to-market gain on private equity, pre-tax	$	134	$	257


Interest Expense

Interest expense for the three months ended March 31, 2024, was $178 million comprising $183 million related to fixed expenses on existing debt obligations and variable expenses, and a $5 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition. The variable expenses relate to fees from the usage of certain facilities, including letters of credit, and interest on held collateral and repurchase agreements. Based on our existing debt obligations, including the new $1 billion of 5 percent senior notes issued on March 7, 2024, and projected variable expenses, we expect pre-tax interest expense to be approximately $561 million for the remainder of 2024, or $744 million for the full year. We also expect a $16 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition for the remainder of 2024. For more information on our debt obligations, refer to Note 11 to the Consolidated Financial Statements herein, and Note 13 to the Consolidated Financial Statements, under Item 8 in our 2023 Form 10-K.


Investments

Our investment portfolio is invested primarily in publicly traded, investment grade, fixed income securities with an average credit quality of A/A as rated by the independent investment rating services Standard and Poor’s (S&P)/Moody’s Investors Service (Moody’s) at March 31, 2024. Excluding Huatai, the portfolio is primarily managed externally by independent, professional investment managers and is broadly diversified across geographies, sectors, and issuers. We hold no collateralized debt obligations in our investment portfolio, and we provide no credit default protection. We have long-standing global credit limits for our entire portfolio across the organization. Exposures are aggregated, monitored, and actively managed by our Global Credit

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Committee, comprising senior executives, including our Chief Financial Officer, our Chief Risk Officer, our Chief Investment Officer, and our Treasurer. We also have well-established, strict contractual investment rules requiring managers to maintain highly diversified exposures to individual issuers and closely monitor investment manager compliance with portfolio guidelines.

The following table shows the fair value and cost/amortized cost, net of valuation allowance, of our invested assets:


	March 31, 2024				December 31, 2023
(in millions of U.S. dollars)	Fair Value		Cost/ Amortized Cost, Net		Fair Value		Cost/ Amortized Cost, Net
Short-term investments	$	5,107	$	5,108	$	4,551	$	4,551
Fixed maturities - Consolidated investment products	4,408		4,408		3,773		3,773
Fixed maturities available-for-sale	108,289		113,364		106,571		110,972

Fixed income securities	117,804		122,880		114,895		119,296
Equity securities	3,769		3,769		3,455		3,455
Private debt held-for-investment	2,733		2,708		2,560		2,553
Private equities and other	16,089		16,089		15,832		15,832

Total investments	$	140,395	$	145,446	$	136,742	$	141,136

The fair value of our total investments increased $3.7 billion during the three months ended March 31, 2024, due to the investing of operating cash flow, partially offset by unrealized losses. The valuation of our fixed income portfolio is impacted by changes in interest rates. We estimate that a 100 basis point (bps) increase in rates would reduce the valuation of our portfolio by approximately $5.9 billion at March 31, 2024.

The following tables present the fair value of our fixed income securities at March 31, 2024, and December 31, 2023. The first table lists investments according to type and second according to S&P credit rating:


	March 31, 2024				December 31, 2023
(in millions of U.S. dollars, except for percentages)	Fair Value		% of Total		Fair Value		% of Total
U.S. Treasury / Agency	$	2,899	2	%	$	3,590	3	%
Corporate and asset-backed securities	43,447		38	%	42,830		37	%
Mortgage-backed securities	23,755		20	%	22,058		19	%
Municipal	2,043		2	%	2,929		3	%
Non-U.S.	40,553		34	%	38,937		34	%
Short-term investments	5,107		4	%	4,551		4	%
Total (1)	$	117,804	100	%	$	114,895	100	%
AAA	$	14,289	12	%	$	12,669	11	%
AA	34,371		29	%	34,312		30	%
A	28,134		24	%	27,674		24	%
BBB	21,283		18	%	20,810		18	%
BB	10,529		9	%	10,270		9	%
B	8,539		7	%	8,580		7	%
Other	659		1	%	580		1	%
Total (1)	$	117,804	100	%	$	114,895	100	%

(1) Includes fixed maturities related to consolidated investment products recorded in Other investments in the Consolidated balance sheets of $4.4 billion and $3.8 billion at March 31, 2024, and December 31, 2023, respectively.

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Corporate and asset-backed securities

The following table presents our 10 largest global exposures to corporate bonds by fair value at March 31, 2024:


(in millions of U.S. dollars)	Fair Value
Bank of America Corp	$	818
Morgan Stanley	724
JPMorgan Chase & Co	664
Wells Fargo & Co	597
Citigroup Inc	556
Goldman Sachs Group Inc	550
UBS Group AG	410
HSBC Holdings Plc	399
Verizon Communications Inc	396
AT&T Inc	394

Mortgage-backed securities

The following table shows the fair value and amortized cost, net of valuation allowance, of our mortgage-backed securities:


	S&P Credit Rating										Fair Value		Amortized Cost, Net
March 31, 2024 (in millions of U.S. dollars)	AAA		AA		A		BBB		BB and below		Total		Total
Agency residential mortgage-backed securities (RMBS)	$	9	$	20,413	$	—	$	—	$	—	$	20,422	$	22,146
Non-agency RMBS	1,086		101		61		62		6		1,316		1,382
Commercial mortgage-backed securities	1,716		173		113		14		1		2,017		2,167
Total mortgage-backed securities	$	2,811	$	20,687	$	174	$	76	$	7	$	23,755	$	25,695

Municipal

As part of our overall investment strategy, we may invest in states, municipalities, and other political subdivisions fixed maturity securities (Municipal). We apply the same investment selection process described previously to our Municipal investments. The portfolio is highly diversified primarily in state general obligation bonds and essential service revenue bonds including education and utilities (water, power, and sewers).

Non-U.S.

Chubb’s local currency investment portfolios have strict contractual investment guidelines requiring managers to maintain a high quality and diversified portfolio to both sector and individual issuers. Investment portfolios are monitored daily to ensure investment manager compliance with portfolio guidelines.

Our non-U.S. investment grade fixed income portfolios are currency-matched with the insurance liabilities of our non-U.S. operations. The average credit quality of our non-U.S. fixed income securities is A and 38 percent of our holdings are rated AAA or guaranteed by governments or quasi-government agencies. Within the context of these investment portfolios, our government and corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA—two percent, A—one percent, BBB—0.5 percent of the total portfolio) and are monitored daily via an internal compliance system. We manage our indirect exposure using the same credit rating-based investment approach. Accordingly, we do not believe our indirect exposure is material.

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The following table summarizes the fair value and amortized cost, net of valuation allowance, of our non-U.S. fixed income portfolio by country/sovereign for non-U.S. government securities at March 31, 2024:


(in millions of U.S. dollars)	Fair Value		Amortized Cost, Net
Republic of Korea	$	1,770	$	1,746
People's Republic of China	1,586		1,458
Taiwan	985		969
Canada	907		953
Federative Republic of Brazil	631		634
United Mexican States	611		635
Kingdom of Thailand	587		563
Commonwealth of Australia	553		616
Province of Ontario	510		538
Socialist Republic of Vietnam	474		358
Other Non-U.S. Government Securities	6,224		6,493
Total	$	14,838	$	14,963

The following table summarizes the fair value and amortized cost, net of valuation allowance, of our non-U.S. fixed income portfolio by country/sovereign for non-U.S. corporate securities at March 31, 2024:


(in millions of U.S. dollars)	Fair Value		Amortized Cost, Net
China	$	6,524	$	6,523
United Kingdom	2,629		2,748
Canada	2,249		2,298
United States (1)	1,614		1,652
South Korea	1,572		1,562
France	1,567		1,609
Australia	1,137		1,192
Japan	816		849
Germany	631		663
Netherlands	586		612
Other Non-U.S. Corporate Securities	6,390		6,658
Total	$	25,715	$	26,366

(1) The countries that are listed in the non-U.S. corporate fixed income portfolio above represent the ultimate parent company's country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.

Below-investment grade corporate fixed income portfolio

Below-investment grade securities have different characteristics than investment grade corporate debt securities. Risk of loss from default by the borrower is greater with below-investment grade securities. Below-investment grade securities are generally unsecured and are often subordinated to other creditors of the issuer. Also, issuers of below-investment grade securities usually have higher levels of debt and are more sensitive to adverse economic conditions, such as recession or increasing interest rates, than investment grade issuers. At March 31, 2024, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 15 percent of our fixed income portfolio. Our below-investment grade and non-rated portfolio includes over 1,600 issuers, with the greatest single exposure being $164 million.

We manage high-yield bonds as a distinct and separate asset class from investment grade bonds. The allocation to high-yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B). Our minimum rating for initial purchase is BB/B. Sixteen external investment managers are responsible for high-yield security selection and portfolio construction. Our high-yield managers have a conservative approach to credit selection and very low historical default experience. Holdings are highly diversified across industries and generally subject to a 1.5 percent issuer limit

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as a percentage of high-yield allocation. We monitor position limits daily through an internal compliance system. Derivative and structured securities (e.g., credit default swaps and collateralized debt obligations) are not permitted in the high-yield portfolio.


Critical Accounting Estimates

Unpaid losses and loss expenses

As an insurance and reinsurance company, we are required by applicable laws and regulations and U.S. GAAP to establish loss and loss expense reserves for the estimated unpaid portion of the ultimate liability for losses and loss expenses under the terms of our policies and agreements with our insured and reinsured customers. With the exception of certain structured settlements, for which the timing and amount of future claim payments are reliably determinable, and certain reserves for unsettled claims, our loss reserves are not discounted for the time value of money.

The following table presents a roll-forward of our unpaid losses and loss expenses:


(in millions of U.S. dollars)	Gross Losses		Reinsurance Recoverable (1)		Net Losses
Balance at December 31, 2023	$	80,122	$	17,884	$	62,238
Losses and loss expenses incurred	6,603		876		5,727
Losses and loss expenses paid	(6,423)		(1,601)		(4,822)
Other (including foreign exchange translation)	39		4		35
Balance at March 31, 2024	$	80,341	$	17,163	$	63,178

(1)Net of valuation allowance for uncollectible reinsurance.

The estimate of the liabilities includes provisions for claims that have been reported but are unpaid at the balance sheet date (case reserves) and for obligations on claims that have been incurred but not reported (IBNR) at the balance sheet date. IBNR may also include provisions to account for the possibility that reported claims may settle for amounts that differ from the established case reserves. Loss reserves also include an estimate of expenses associated with processing and settling unpaid claims (loss expenses).

Refer to Note 7 to the Consolidated Financial Statements for a discussion on the changes in the loss reserves.

Asbestos and Environmental (A&E)

There was no significant A&E reserve activity during the three months ended March 31, 2024. A&E reserves are included in Corporate. Refer to our 2023 Form 10-K for further information on our A&E exposures.

Fair value measurements

Accounting guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1 inputs) and the lowest priority to unobservable data (Level 3 inputs). Level 2 includes inputs, other than quoted prices within Level 1, that are observable for assets or liabilities either directly or indirectly. Refer to Note 4 to the Consolidated Financial Statements for information on our fair value measurements.

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Catastrophe Management

We actively monitor and manage our catastrophe risk accumulation around the world from natural perils, which includes setting risk limits based on probable maximum loss (PML) and purchasing catastrophe reinsurance to ensure sufficient liquidity and capital to meet the expectations of regulators, rating agencies, and policyholders, and to provide shareholders with an appropriate risk-adjusted return. Chubb uses internal and external data together with sophisticated, analytical catastrophe loss and risk modeling techniques to ensure an appropriate understanding of risk, including diversification and correlation effects, across different product lines and territories. The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at March 31, 2024, and does not represent our expected catastrophe losses for any one year.


	Modeled Net Probable Maximum Loss (PML) Pre-tax
	Worldwide (1)				U.S. Hurricane (2)				California Earthquake (3)
	Annual Aggregate				Annual Aggregate				Single Occurrence
(in millions of U.S. dollars, except for percentages)	Chubb		% of Total Chubb Shareholders’ Equity		Chubb		% of Total Chubb Shareholders’ Equity		Chubb		% of Total Chubb Shareholders’ Equity
1-in-10	$	2,726	4.5	%	$	1,492	2.5	%	$	164	0.3	%
1-in-100	$	5,179	8.6	%	$	3,501	5.8	%	$	1,843	3.0	%
1-in-250	$	8,052	13.3	%	$	5,567	9.2	%	$	2,098	3.5	%

(1) Worldwide aggregate comprises losses arising from tropical cyclones, convective storms, earthquakes, U.S. wildfires, and floods in the U.S., Canada, and Europe, and excludes "non-modeled" perils such as man-made and other catastrophe risks including pandemic.

(2) U.S. hurricane losses include losses from wind, storm-surge, and related precipitation-induced flooding.

(3) California earthquakes include the fire-following sub-peril.

The PML for worldwide and key U.S. peril regions are based on our in-force portfolio at January 1, 2024, and reflect the April 1, 2024, reinsurance program, as well as inuring reinsurance protection coverage. As of April 1, 2024, we increased retention in North America by $500 million and increased limits by $1.7 billion. Refer to the Global Property Catastrophe Reinsurance section for more information. These estimates assume that reinsurance recoverable is fully collectible.

According to the model, for the 1-in-100 return period scenario, there is a one percent chance that our pre-tax annual aggregate losses incurred in any year from U.S. hurricane events could be in excess of $3,501 million (or 5.8 percent of total Chubb shareholders’ equity at March 31, 2024). Effective March 31, 2024, our worldwide and U.S. Hurricane PMLs reflect the latest North Atlantic hurricane vulnerability model.

The above estimates of Chubb’s loss profile are inherently uncertain for many reasons, including the following:

•While the use of third-party modeling packages to simulate potential catastrophe losses is prevalent within the insurance industry, the models are reliant upon significant meteorology, seismology, and engineering assumptions to estimate catastrophe losses. In particular, modeled catastrophe events are not always a representation of actual events and ensuing additional loss potential;

•There is no universal standard in the preparation of insured data for use in the models, the running of the modeling software, and interpretation of loss output. These loss estimates do not represent our potential maximum exposures and it is highly likely that our actual incurred losses would vary materially from the modeled estimates;

•The potential effects of climate change add to modeling complexity; and

•Changing climate conditions could impact our exposure to natural catastrophe risks. Published studies by leading government, academic, and professional organizations combined with extensive research by Chubb climate scientists reveal the potential for increases in the frequency and severity of key natural perils such as tropical cyclones, inland flood, and wildfire. To understand the potential impacts on the Chubb portfolio, we have conducted stress tests on our peak exposure zone, namely in the U.S., using parameters outlined by the Intergovernmental Panel on Climate Change (IPCC) Climate Change 2021 report. These parameters consider the impacts of climate change and the resulting climate peril impacts over a timescale relevant to our business. The tests are conducted by adjusting our baseline view of risk for the perils of hurricane, inland flood, and wildfire in the U.S. to reflect increases in frequency and severity across the modeled domains for each of these perils. Based on these tests against the Chubb portfolio we do not expect material impacts to our baseline PMLs from climate change through December 31, 2024. These tests reflect current exposures only and exclude potentially mitigating factors such as changes to building codes, public or private risk mitigation, regulation, and public policy.

Refer to Item 7 in our 2023 Form 10-K for more information on man-made and other catastrophes.

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Global Property Catastrophe Reinsurance Program

Chubb’s core property catastrophe reinsurance program provides protection against natural catastrophes impacting its primary property operations (i.e., excluding our Global Reinsurance and Life Insurance segments).

We regularly review our reinsurance protection and corresponding property catastrophe exposures. This may or may not lead to the purchase of additional reinsurance prior to a program’s renewal date. In addition, prior to each renewal date, we consider how much, if any, coverage we intend to buy and we may make material changes to the current structure in light of various factors, including modeled PML assessment at various return periods, reinsurance pricing, our risk tolerance and exposures, and various other structuring considerations.

Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2024, through March 31, 2025. The program consists of three layers in excess of losses retained by Chubb on a per occurrence basis. Chubb renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2024, through March 31, 2025, with the same limits and retention and percentage placed except that the majority of terrorism coverage is on an aggregate basis above our retentions without a reinstatement.

Effective September 1, 2023, Chubb purchased an additional layer of per occurrence coverage for named windstorms and earthquakes within Northeast states. Coverage is provided for losses for North American and international operations within the territory through August 31, 2024.

Loss Location

Layer of Loss

Comments

Notes

United States
(excluding Alaska and Hawaii)

$0 million –

$1.75 billion

Losses retained by Chubb

(a)

United States
(excluding Alaska and Hawaii)

$1.75 billion –

$2.85 billion

All natural perils and terrorism

(b)

United States
(excluding Alaska and Hawaii)

$2.85 billion –

$4.0 billion

All natural perils and terrorism

(c)

United States
(excluding Alaska and Hawaii)

$4.0 billion –

$5.7 billion

Named windstorm and earthquake

United States
(Northeast States Only)

$3.5 billion –
$4.0 billion

Named windstorm and earthquake

(d)

International
(including Alaska and Hawaii)

$0 million –

$225 million

Losses retained by Chubb

(a)

International
(including Alaska and Hawaii)

$225 million –

$1.325 billion

All natural perils and terrorism

(b)

Alaska, Hawaii, and Canada

$1.325 billion –

$2.475 billion

All natural perils and terrorism

(c)

(a) Ultimate retention will depend upon the nature of the loss and the interplay between the underlying per risk programs and certain other catastrophe programs purchased by individual business units. These other catastrophe programs have the potential to reduce our effective retention below the stated levels.

(b) These coverages are both part of the same First layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(c) These coverages are both part of the same Second layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(d) Northeast states are defined as Virginia to Maine. This coverage is fully placed with Reinsurers and inures to the benefit of the United States (excluding Alaska and Hawaii) layer.

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Capital Resources

Capital resources consist of funds deployed or available to be deployed to support our business operations.


	March 31			December 31
(in millions of U.S. dollars, except for ratios)	2024			2023
Short-term debt	$	2,265		$	1,460
Long-term debt	13,248			13,035
Total financial debt	15,513			14,495
Trust preferred securities	309			308
Total Chubb shareholders’ equity	60,535			59,507
Total capitalization	$	76,357		$	74,310
Ratio of financial debt to total capitalization	20.3		%	19.5		%
Ratio of financial debt plus trust preferred securities to total capitalization	20.7		%	19.9		%

Repurchase agreements are excluded from the table above and are disclosed separately from short-term debt in the Consolidated balance sheets. The repurchase agreements are collateralized borrowings where we maintain the right and ability to redeem the collateral on short notice, unlike short-term debt which comprises the current maturities of our long-term debt instruments.

On March 7, 2024, Chubb INA Holdings LLC (Chubb INA) issued $1.0 billion of 5.0 percent senior notes due March 2034. Refer to Note 11 to the Consolidated Financial Statements for additional details about the debt issued.

For the three months ended March 31, 2024, we repurchased $316 million of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorization. At March 31, 2024, there were 25,418,520 Common Shares in treasury with a weighted-average cost of $175.50 per share, and $3.4 billion in share repurchase authorization remained. For the period April 1, 2024, through April 25, 2024, we repurchased 250,000 Common Shares for a total of $62 million in a series of open market transactions under the share repurchase authorization. At April 25, 2024, $3.3 billion in share repurchase authorization remained.

We generally maintain the ability to issue certain classes of debt and equity securities via a Securities and Exchange Commission (SEC) shelf registration statement which is renewed every three years. This allows us capital market access for refinancing as well as for unforeseen or opportunistic capital needs.

Dividends

We have paid dividends each quarter since we became a public company in 1993. Under Swiss law, dividends must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. Refer to Note 13 to the Consolidated Financial Statements for a discussion of our dividend methodology.

At our May 2023 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.44 per share, or CHF 3.09 per share, calculated using the USD/CHF exchange rate as published in the Wall Street Journal on May 17, 2023, expected to be paid in four quarterly installments of $0.86 per share after the general meeting by way of a distribution from capital contribution reserves, transferred to free reserves for payment. The Board determines the record and payment dates at which the annual dividend may be paid until the date of the 2024 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The four quarterly installments each of $0.86 per share were distributed by the Board as expected. The annual dividend approved in May 2023 represented a $0.12 per share increase ($0.03 per quarter) over the prior year dividend.

The following table represents dividends paid per Common Share to shareholders of record on each of the following dates:

Shareholders of record as of:

Dividends paid as of:

December 15, 2023

January 5, 2024

$0.86 (CHF 0.76)

March 15, 2024

April 5, 2024

$0.86 (CHF 0.75)

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Liquidity

We anticipate that positive cash flows from operations (underwriting activities and investment income) should be sufficient to cover cash outflows under most loss scenarios for the near term. In addition to cash from operations, routine sales of investments, and financing arrangements, we have agreements with a third-party bank provider which implemented two international multi-currency notional cash pooling programs to enhance cash management efficiency during periods of short-term timing mismatches between expected inflows and outflows of cash by currency. The programs allow us to optimize investment income by avoiding portfolio disruption. Should the need arise, we generally have access to capital markets and to credit facilities with letter of credit capacity of $4.0 billion, $3.0 billion of which can be used for revolving credit. At March 31, 2024, our usage under these facilities was $958 million in letters of credit. Our access to credit under these facilities is dependent on the ability of the banks that are a party to the facilities to meet their funding commitments. The facilities require that we maintain certain financial covenants, all of which we met at March 31, 2024. Should the existing credit providers on these facilities experience financial difficulty, we may be required to replace credit sources, possibly in a difficult market. If we cannot obtain adequate capital or sources of credit on favorable terms, on a timely basis, or at all, our business, operating results, and financial condition could be adversely affected. To date, we have not experienced difficulty accessing our credit facility or establishing additional facilities when needed.

The payment of dividends or other statutorily permissible distributions from our operating companies are subject to the laws and regulations applicable to each jurisdiction, as well as the need to maintain capital levels adequate to support the insurance and reinsurance operations, including financial strength ratings issued by independent rating agencies. During the three months ended March 31, 2024, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows.

We assess which subsidiaries to draw dividends from based on a number of factors. Considerations such as regulatory and legal restrictions as well as the subsidiary’s financial condition are paramount to the dividend decision. Chubb Limited received dividends of nil and $225 million from its Bermuda subsidiaries during the three months ended March 31, 2024 and 2023, respectively. Chubb Limited also received dividends of $91 million from its other international subsidiary during the three months ended March 31, 2024.

The U.S. insurance subsidiaries of Chubb INA may pay dividends, without prior regulatory approval, subject to restrictions set out in state law of the subsidiary’s domicile (or, if applicable, commercial domicile). Chubb INA’s international subsidiaries are also subject to insurance laws and regulations particular to the countries in which the subsidiaries operate. These laws and regulations sometimes include restrictions that limit the amount of dividends payable without prior approval of regulatory insurance authorities. Chubb Limited received no dividends from Chubb INA during the three months ended March 31, 2024 and 2023. Debt issued by Chubb INA is serviced by statutorily permissible distributions by Chubb INA’s insurance subsidiaries to Chubb INA as well as other group resources. Chubb INA received no dividends from its subsidiaries during the three months ended March 31, 2024 and 2023.

Cash Flows

Our sources of liquidity include cash from operations, routine sales of investments, and financing arrangements. The following is a discussion of our cash flows for the three months ended March 31, 2024 and 2023.

Operating cash flows were $3.2 billion in the three months ended March 31, 2024, compared to $2.3 billion in the prior year period, primarily due to higher net premiums collected and net investment income, and the impact of the Huatai consolidation. This was partially offset by net purchases of consolidated investment products from Huatai's asset management companies of $404 million.

Cash used for investing was $3.7 billion in the three months ended March 31, 2024, compared to $570 million in the prior year period, an increase of $3.2 billion, which primarily included higher net purchases of fixed maturities and equity securities of $2.8 billion.

Cash from (used) for financing was $562 million in the three months ended March 31, 2024, compared to $(1.4) billion in the prior year period, an increase in cash from financing of $2.0 billion. This was primarily due to net proceeds from the issuance of long-term debt of $1.0 billion compared with repayments of $0.5 billion in the prior year.

We use repurchase agreements as a low-cost funding alternative. At March 31, 2024, there were $3.0 billion in repurchase agreements outstanding with various maturities over the next two months.

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Both internal and external forces influence our financial condition, results of operations, and cash flows. Claim settlements, premium levels, and investment returns may be impacted by changing rates of inflation and other economic conditions. In many cases, significant periods of time, ranging up to several years or more, may lapse between the occurrence of an insured loss, the reporting of the loss to us, and the settlement of the liability for that loss.

Information provided in connection with outstanding debt of subsidiaries

Chubb INA Holdings LLC (Subsidiary Issuer) is an indirect 100 percent-owned and consolidated subsidiary of Chubb Limited (Parent Guarantor). The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer.

The following table presents the condensed balance sheets of Chubb Limited and Chubb INA Holdings LLC, after elimination of investment in any non-guarantor subsidiary:


	Chubb Limited (Parent Guarantor)				Chubb INA Holdings LLC (Subsidiary Issuer)
	March 31		December 31		March 31		December 31
(in millions of U.S. dollars)	2024		2023		2024		2023
Assets
Investments	$	—	$	—	$	596	$	103
Cash	108		77		3		3

Due from parent guarantor/subsidiary issuer	3		441		49		—
Due from subsidiaries that are not issuers or guarantors	525		539		449		571
Other assets	3		12		3,004		2,785
Total assets	$	639	$	1,069	$	4,101	$	3,462
Liabilities
Due to parent guarantor/subsidiary issuer	$	49	$	—	$	3	$	441
Due to subsidiaries that are not issuers or guarantors	383		263		240		593
Affiliated notional cash pooling programs	197		594		1,412		455
Short-term debt	—		—		2,265		1,460
Long-term debt	—		—		13,248		13,035
Trust preferred securities	—		—		309		308
Other liabilities	510		657		1,661		1,496
Total liabilities	1,139		1,514		19,138		17,788
Total equity	(500)		(445)		(15,037)		(14,326)
Total liabilities and equity	$	639	$	1,069	$	4,101	$	3,462

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The following table presents the condensed statements of operations and comprehensive income of Chubb Limited and Chubb INA Holdings LLC, excluding equity in earnings from non-guarantor subsidiaries:


Three Months Ended March 31, 2024	Chubb Limited (Parent Guarantor)		Chubb INA Holdings LLC (Subsidiary Issuer)
(in millions of U.S. dollars)
Net investment income (loss)	$	(9)	$	(17)

Net realized gains (losses)	(18)		(73)
Administrative expenses	31		(2)
Interest (income) expense	(4)		116
Other (income) expense	(12)		41

Income tax expense (benefit)	1		(33)
Net loss	$	(43)	$	(212)
Comprehensive loss	$	(43)	$	(218)


ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Refer to Item 7A included in our 2023 Form 10-K.

Foreign currency management

As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities and required capital for each individual jurisdiction in local currency, which would include the use of derivatives. We occasionally engage in hedging activity for planned cross border transactions. For an estimated impact of foreign currency movement on our net assets denominated in non-U.S. currencies, refer to Item 7A in our 2023 Form 10-K. This information will be updated and disclosed in interim filings if our net assets in non-U.S. currencies change materially from the December 31, 2023, balances disclosed in the 2023 Form 10-K.

Reinsurance of market risk benefits

Chubb views its MRB reinsurance business as having a similar risk profile to that of catastrophe reinsurance, with the probability of long-term economic loss relatively small at the time of pricing. Adverse changes in market factors and policyholder behavior will have an impact on both MRB gains (losses) and net income. When evaluating these risks, we expect to be compensated for taking both the risk of a cumulative long-term economic net loss, as well as the short-term accounting variations caused by these market movements. Therefore, we evaluate this business in terms of its long-term economic risk and reward.

The tables below are estimates of the sensitivities to instantaneous changes in economic inputs (e.g., equity shock, interest rate shock etc.) at March 31, 2024, for both the fair value of the MRB liability (FVL) and the fair value of specific derivative instruments held (hedge value) to partially offset the risk in the MRB reinsurance portfolio. The following assumptions should be considered when using the below tables:

•Equity shocks impact all global equity markets equally

•Our liabilities are sensitive to global equity markets in the following proportions: 80 percent—90 percent U.S. equity, and 10 percent—20 percent international equity.

•Our current hedge portfolio is sensitive only to U.S. equity markets.

•We would suggest using the S&P 500 index as a proxy for U.S. equity, and the MSCI EAFE index as a proxy for international equity.

•Interest rate shocks assume a parallel shift in the U.S. yield curve

•Our liabilities are also sensitive to global interest rates at various points on the yield curve, mainly the U.S. Treasury curve in the following proportions: up to 15 percent short-term rates (maturing in less than 5 years), 15 percent—30 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 65 percent—80 percent long-term rates (maturing beyond 10 years).

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•A change in AA-rated credit spreads impacts the rate used to discount cash flows in the fair value model. AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers.

•The hedge sensitivity is from March 31, 2024, market levels and only applicable to the equity and interest rate sensitivities table below.

•The sensitivities do not scale linearly and may be proportionally greater for larger movements in the market factors. Actual sensitivity of our net income may differ from those disclosed in the tables below due to fluctuations in short-term market movements.


Sensitivities to equity and interest rate movements
(in millions of U.S. dollars)		Worldwide Equity Shock
Interest Rate Shock		+10%		Flat		-10%		-20%		-30%		-40%
+100 bps	(Increase)/decrease in FVL	$	251	$	165	$	59	$	(71)	$	(237)	$	(458)
	Increase/(decrease) in hedge value	(118)		—		118		237		355		474
	Increase/(decrease) in net income	$	133	$	165	$	177	$	166	$	118	$	16
Flat	(Increase)/decrease in FVL	$	104	$	—	$	(124)	$	(276)	$	(473)	$	(723)
	Increase/(decrease) in hedge value	(118)		—		118		237		355		474
	Increase/(decrease) in net income	$	(14)	$	—	$	(6)	$	(39)	$	(118)	$	(249)
-100 bps	(Increase)/decrease in FVL	$	(82)	$	(204)	$	(349)	$	(525)	$	(752)	$	(1,030)
	Increase/(decrease) in hedge value	(118)		—		118		237		355		474
	Increase/(decrease) in net income	$	(200)	$	(204)	$	(231)	$	(288)	$	(397)	$	(556)

Sensitivities to Other Economic Variables		AA-rated Credit Spreads				Interest Rate Volatility				Equity Volatility
(in millions of U.S. dollars)		+100 bps		-100 bps		+2%		-2%		+2%		-2%
(Increase)/decrease in FVL		$	41	$	(46)	$	(1)	$	1	$	(15)	$	14

Increase/(decrease) in net income		$	41	$	(46)	$	(1)	$	1	$	(15)	$	14

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Market Risk Benefits Net Amount at Risk

All our MRB reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible which limit the net amount at risk under these programs. The tables below present the net amount at risk at March 31, 2024, following an immediate change in equity market levels, assuming all global equity markets are impacted equally.

a) Reinsurance covering the GMDB risk only


	Equity Shock
(in millions of U.S. dollars)	+20		%	Flat		-20		%	-40		%	-60		%	-80		%
GMDB net amount at risk	$	225		$	222	$	378		$	651		$	661		$	536
Claims at 100% immediate mortality	133			141		149			140			128			113

The treaty limits function as a ceiling as equity markets fall. As the shocks in the table above become incrementally more negative, the impacts begin to drop due to the specific nature of these claim limits, many of which are annual claim limits calculated as a percentage of the reinsured account value. There is also an impact due to a portion of the reinsurance under which claims are positively correlated to equity markets (claims decrease as equity markets fall).

b) Reinsurance covering the GLB risk only


	Equity Shock
(in millions of U.S. dollars)	+20		%	Flat		-20		%	-40		%	-60		%	-80		%
GLB net amount at risk	$	779		$	1,023	$	1,411		$	1,970		$	2,296		$	2,556

The treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall.

c) Reinsurance covering both the GMDB and GLB risks on the same underlying policyholders


	Equity Shock
(in millions of U.S. dollars)	+20		%	Flat		-20		%	-40		%	-60		%	-80		%
GMDB net amount at risk	$	36		$	43	$	53		$	63		$	72		$	79
GLB net amount at risk	319			395		497			618			737			774
Claims at 100% immediate mortality	28			27		27			27			27			27

The treaty limits cause the GMDB and GLB net amount at risk to increase at a declining rate as equity markets fall.

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ITEM 4. Controls and Procedures

Chubb’s management, with the participation of Chubb’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of Chubb’s disclosure controls and procedures as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 as of March 31, 2024. Based upon that evaluation, Chubb’s Chief Executive Officer and Chief Financial Officer concluded that Chubb’s disclosure controls and procedures are effective in allowing information required to be disclosed in reports filed under the Securities Exchange Act of 1934 to be recorded, processed, summarized, and reported within time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to Chubb’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Effective July 1, 2023, Chubb discontinued the equity method of accounting to its investment in Huatai Group and applied consolidation accounting. As of and for the three months ended March 31, 2024, Huatai Group represented approximately 5 percent of consolidated revenues and approximately 7 percent of total assets. We currently exclude, and are in the process of working to incorporate, Huatai Group in our evaluation of internal controls over financial reporting, and related disclosure controls and procedures.

Other than working to incorporate Huatai Group as noted above, there have been no changes in Chubb's internal controls over financial reporting during the three months ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, Chubb's internal controls over financial reporting.

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PART II OTHER INFORMATION


ITEM 1. Legal Proceedings

The information required with respect to this item is included in Note 12 h) to the Consolidated Financial Statements, which is hereby incorporated herein by reference.


ITEM 1A. Risk Factors

There have been no material changes to the risk factors described under "Risk Factors" under Item 1A of Part I of our 2023 Form 10-K.


ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities

Issuer’s Repurchases of Equity Securities

The following table provides information with respect to purchases by Chubb of its Common Shares during the three months ended March 31, 2024:


Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan (2)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (3)
January 1 through January 31	3,774	$	226.55	—	$	3.68	billion
February 1 through February 29	602,223	$	252.72	269,450	$	3.62	billion
March 1 through March 31	959,077	$	261.40	950,671	$	3.37	billion
Total	1,565,074	$	257.98	1,220,121

(1)This column represents open market share repurchases and the surrender to Chubb of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees and to cover the cost of the exercise of options by employees through stock swaps.

(2)The aggregate value of shares purchased in the three months ended March 31, 2024 as part of the publicly announced plan was $316 million. Refer to Note 13 to the Consolidated Financial Statements for more information on the Chubb Limited securities repurchase authorizations.

(3)For the period April 1, 2024, through April 25, 2024, we repurchased 250,000 Common Shares for a total of $62 million in a series of open market transactions. As of April 25, 2024, $3.31 billion in share repurchase authorization remained.


ITEM 5. Other Information

During the three months ended March 31, 2024, no director or officer of Chubb (as defined in Rule 16a-1(f) under the Exchange Act) informed us of the adoption or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as those terms are defined in Item 408 of SEC Regulation S-K.

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ITEM 6. Exhibits

Incorporated by Reference

Exhibit
Number

Exhibit Description

Form

Original
Number

Date Filed

Filed
Herewith

3.1

Articles of Association of the Company, as amended and restated

8-K

3.1

May 17, 2023

3.2

Organizational Regulations of the Company, as amended

10-K

3.2

February 24, 2023

4.1

Articles of Association of the Company, as amended and restated

8-K

4.1

May 17, 2023

4.2

Organizational Regulations of the Company, as amended

10-K

4.2

February 24, 2023

4.3

Form of Officer's Certificate related to the 5.000% Senior Notes due 2034

8-K

4.1

March 7, 2024

4.4

Form of Global Note for the 5.000% Senior Notes due 2034

8-K

4.2

March 7, 2024

1 0.1

Form of Performance Based Restricted Stock Unit Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Swiss Executive Management

10.2

Form of Performance Based Restricted Stock Unit Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Executive Officers

10.3

Form of Restricted Stock Unit Award Terms under the Chubb Limited 2016 Long-Term Incentive Plan for Executive Officers

10.4

Outside Directors Compens a tion Parameters

10-K

10.8

February 24, 2023

10.5

Chubb Deferred Stock Unit Plan

10-K

10.27

February 24, 2023

22.1

Guaranteed Securities

31.1

Certification Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002

31.2

Certification Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002

32.1

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002

32.2

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002

101.1

The following financial information from Chubb Limited’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline XBRL:

(i) Consolidated Balance Sheets at March 31, 2024, and December 31, 2023; (ii) Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2024 and 2023; (iii) Consolidated Statements of Shareholders’ Equity for the three months ended March 31, 2024 and 2023; (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023; and (v) Notes to Consolidated Financial Statements

104.1

The Cover Page Interactive Data File formatted in Inline XBRL (The cover page XBRL tags are embedded in the Inline XBRL document and included in Exhibit 101.1)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			CHUBB LIMITED
			(Registrant)

April 26, 2024			/s/ Evan G. Greenberg
			Evan G. Greenberg
			Chairman and Chief Executive Officer

April 26, 2024			/s/ Peter C. Enns
			Peter C. Enns
			Executive Vice President and Chief Financial Officer