v2.4.0.8

Segment information | 9 Months Ended
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Sep. 30, 2014
Segment Reporting [Abstract] |
Segment information | Segment information ACE operates through five business segments: Insurance – North American P&C, Insurance – North American Agriculture, Insurance – Overseas General, Global Reinsurance, and Life. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediaries. For segment reporting purposes, certain items have been presented in a different manner below than in the consolidated financial statements. Management uses underwriting income as the main measure of segment performance. ACE calculates underwriting income by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. For the Insurance – North American Agriculture segment, management includes gains and losses on crop derivatives as a component of underwriting income. For example, for the three months ended September 30, 2014, underwriting income in our Insurance – North American Agriculture segment was $81 million. This amount includes $45 million of realized gains related to crop derivatives which are included in Net realized gains (losses) below. For the Life segment, management includes Net investment income and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life underwriting income. For example, for the three months ended September 30, 2014, Life underwriting income of $88 million includes Net investment income of $69 million and losses from fair value changes in separate account assets of $6 million. The following tables present the Statement of Operations by segment:
For the Three Months Ended September 30, 2014 | Insurance – North American P&C |  |  | Insurance – North American Agriculture |  |  | Insurance – Overseas General |  |  | Global Reinsurance |  |  | Life |  |  | Corporate |  |  | ACE Consolidated |
(in millions of U.S. dollars) |  |  |  |  |
Net premiums written | $ | 1,541 |  |  | $ | 764 |  |  | $ | 1,719 |  |  | $ | 208 |  |  | $ | 497 |  |  | $ | — |  |  | $ | 4,729 |
Net premiums earned | 1,518 |  |  | 766 |  |  | 1,726 |  |  | 255 |  |  | 489 |  |  | — |  |  | 4,754 |
Losses and loss expenses | 1,053 |  |  | 686 |  |  | 707 |  |  | 92 |  |  | 145 |  |  | 1 |  |  | 2,684 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | 125 |  |  | — |  |  | 125 |
Policy acquisition costs | 169 |  |  | 41 |  |  | 418 |  |  | 74 |  |  | 123 |  |  | — |  |  | 825 |
Administrative expenses | 165 |  |  | 3 |  |  | 258 |  |  | 13 |  |  | 71 |  |  | 44 |  |  | 554 |
Underwriting income (loss) | 131 |  |  | 36 |  |  | 343 |  |  | 76 |  |  | 25 |  |  | (45 | ) |  | 566 |
Net investment income | 277 |  |  | 6 |  |  | 130 |  |  | 81 |  |  | 69 |  |  | 3 |  |  | 566 |
Net realized gains (losses) including OTTI | (5 | ) |  | 45 |  |  | (75 | ) |  | 6 |  |  | (89 | ) |  | (2 | ) |  | (120 | )
Interest expense | 2 |  |  | — |  |  | 2 |  |  | 1 |  |  | 4 |  |  | 61 |  |  | 70 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |
(Gains) losses from fair value changes in separate account assets | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | 6 |
Other | (31 | ) |  | 7 |  |  | 6 |  |  | (10 | ) |  | (3 | ) |  | 6 |  |  | (25 | )
Income tax expense (benefit) | 73 |  |  | 23 |  |  | 97 |  |  | 11 |  |  | 12 |  |  | (40 | ) |  | 176 |
Net income (loss) | $ | 359 |  |  | $ | 57 |  |  | $ | 293 |  |  | $ | 161 |  |  | $ | (14 | ) |  | $ | (71 | ) |  | $ | 785 |
For the Three Months Ended September 30, 2013 | Insurance – North American P&C |  |  | Insurance – North American Agriculture |  |  | Insurance – Overseas General |  |  | Global Reinsurance |  |  | Life |  |  | Corporate |  |  | ACE Consolidated |
(in millions of U.S. dollars) |  |  |  |  |  |
Net premiums written | $ | 1,500 |  |  | $ | 805 |  |  | $ | 1,571 |  |  | $ | 265 |  |  | $ | 479 |  |  | $ | — |  |  | $ | 4,620 |
Net premiums earned | 1,444 |  |  | 849 |  |  | 1,611 |  |  | 239 |  |  | 467 |  |  | — |  |  | 4,610 |
Losses and loss expenses | 963 |  |  | 746 |  |  | 712 |  |  | 93 |  |  | 141 |  |  | — |  |  | 2,655 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | 138 |  |  | — |  |  | 138 |
Policy acquisition costs | 159 |  |  | 32 |  |  | 349 |  |  | 52 |  |  | 86 |  |  | — |  |  | 678 |
Administrative expenses | 153 |  |  | 5 |  |  | 263 |  |  | 12 |  |  | 85 |  |  | 45 |  |  | 563 |
Underwriting income (loss) | 169 |  |  | 66 |  |  | 287 |  |  | 82 |  |  | 17 |  |  | (45 | ) |  | 576 |
Net investment income | 254 |  |  | 6 |  |  | 128 |  |  | 66 |  |  | 61 |  |  | 7 |  |  | 522 |
Net realized gains (losses) including OTTI | 9 |  |  | — |  |  | (8 | ) |  | (5 | ) |  | 43 |  |  | 1 |  |  | 40 |
Interest expense | 3 |  |  | — |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 62 |  |  | 72 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |
(Gains) losses from fair value changes in separate account assets | — |  |  | — |  |  | — |  |  | — |  |  | (14 | ) |  | — |  |  | (14 | )
Other | (13 | ) |  | 8 |  |  | 14 |  |  | (7 | ) |  | 4 |  |  | 3 |  |  | 9 |
Income tax expense (benefit) | 79 |  |  | 14 |  |  | 78 |  |  | 16 |  |  | 10 |  |  | (42 | ) |  | 155 |
Net income (loss) | $ | 363 |  |  | $ | 50 |  |  | $ | 314 |  |  | $ | 132 |  |  | $ | 117 |  |  | $ | (60 | ) |  | $ | 916 |
For the Nine Months Ended September 30, 2014 | Insurance – North American P&C |  |  | Insurance – North American Agriculture |  |  | Insurance – Overseas General |  |  | Global Reinsurance |  |  | Life |  |  | Corporate |  |  | ACE Consolidated |
(in millions of U.S. dollars) |  |  |  |  |  |
Net premiums written | $ | 4,594 |  |  | $ | 1,346 |  |  | $ | 5,250 |  |  | $ | 794 |  |  | $ | 1,489 |  |  | $ | — |  |  | $ | 13,473 |
Net premiums earned | 4,547 |  |  | 1,199 |  |  | 5,047 |  |  | 800 |  |  | 1,463 |  |  | — |  |  | 13,056 |
Losses and loss expenses | 3,009 |  |  | 1,099 |  |  | 2,354 |  |  | 327 |  |  | 442 |  |  | 2 |  |  | 7,233 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | 383 |  |  | — |  |  | 383 |
Policy acquisition costs | 480 |  |  | 69 |  |  | 1,206 |  |  | 201 |  |  | 355 |  |  | — |  |  | 2,311 |
Administrative expenses | 501 |  |  | 5 |  |  | 764 |  |  | 41 |  |  | 212 |  |  | 132 |  |  | 1,655 |
Underwriting income (loss) | 557 |  |  | 26 |  |  | 723 |  |  | 231 |  |  | 71 |  |  | (134 | ) |  | 1,474 |
Net investment income | 812 |  |  | 19 |  |  | 398 |  |  | 238 |  |  | 199 |  |  | 9 |  |  | 1,675 |
Net realized gains (losses) including OTTI | (25 | ) |  | 51 |  |  | (71 | ) |  | (17 | ) |  | (237 | ) |  | 2 |  |  | (297 | )
Interest expense | 7 |  |  | — |  |  | 4 |  |  | 4 |  |  | 10 |  |  | 188 |  |  | 213 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |
(Gains) losses from fair value changes in separate account assets | — |  |  | — |  |  | — |  |  | — |  |  | (5 | ) |  | — |  |  | (5 | )
Other | (75 | ) |  | 24 |  |  | 8 |  |  | (39 | ) |  | 8 |  |  | 18 |  |  | (56 | )
Income tax expense (benefit) | 247 |  |  | 21 |  |  | 189 |  |  | 31 |  |  | 34 |  |  | (120 | ) |  | 402 |
Net income (loss) | $ | 1,165 |  |  | $ | 51 |  |  | $ | 849 |  |  | $ | 456 |  |  | $ | (14 | ) |  | $ | (209 | ) |  | $ | 2,298 |
For the Nine Months Ended September 30, 2013 | Insurance – North American P&C |  |  | Insurance – North American Agriculture |  |  | Insurance – Overseas General |  |  | Global Reinsurance |  |  | Life |  |  | Corporate |  |  | ACE Consolidated |
(in millions of U.S. dollars) |  |  |  |  |  |
Net premiums written | $ | 4,313 |  |  | $ | 1,371 |  |  | $ | 4,821 |  |  | $ | 836 |  |  | $ | 1,468 |  |  | $ | — |  |  | $ | 12,809 |
Net premiums earned | 4,210 |  |  | 1,252 |  |  | 4,633 |  |  | 731 |  |  | 1,424 |  |  | — |  |  | 12,250 |
Losses and loss expenses | 2,791 |  |  | 1,071 |  |  | 2,227 |  |  | 292 |  |  | 443 |  |  | 7 |  |  | 6,831 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | 379 |  |  | — |  |  | 379 |
Policy acquisition costs | 444 |  |  | 56 |  |  | 1,048 |  |  | 148 |  |  | 261 |  |  | — |  |  | 1,957 |
Administrative expenses | 437 |  |  | 13 |  |  | 750 |  |  | 36 |  |  | 256 |  |  | 149 |  |  | 1,641 |
Underwriting income (loss) | 538 |  |  | 112 |  |  | 608 |  |  | 255 |  |  | 85 |  |  | (156 | ) |  | 1,442 |
Net investment income | 755 |  |  | 19 |  |  | 396 |  |  | 209 |  |  | 187 |  |  | 21 |  |  | 1,587 |
Net realized gains (losses) including OTTI | 63 |  |  | 1 |  |  | 34 |  |  | 46 |  |  | 206 |  |  | — |  |  | 350 |
Interest expense | 4 |  |  | — |  |  | 4 |  |  | 4 |  |  | 12 |  |  | 181 |  |  | 205 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |
(Gains) losses from fair value changes in separate account assets | — |  |  | — |  |  | — |  |  | — |  |  | (7 | ) |  | — |  |  | (7 | )
Other | (38 | ) |  | 24 |  |  | 30 |  |  | (13 | ) |  | 7 |  |  | 19 |  |  | 29 |
Income tax expense (benefit) | 264 |  |  | 24 |  |  | 174 |  |  | 31 |  |  | 33 |  |  | (134 | ) |  | 392 |
Net income (loss) | $ | 1,126 |  |  | $ | 84 |  |  | $ | 830 |  |  | $ | 488 |  |  | $ | 433 |  |  | $ | (201 | ) |  | $ | 2,760 |
Underwriting assets are reviewed in total by management for purposes of decision-making. Other than goodwill and other intangible assets, ACE does not allocate assets to its segments. The following table presents net premiums earned for each segment by product:
(in millions of U.S. dollars) | Property & All Other |  |  | Casualty |  |  | Life, Accident & Health |  |  | ACE Consolidated |
For the Three Months Ended September 30, 2014 |  |  |
Insurance – North American P&C | $ | 420 |  |  | $ | 993 |  |  | $ | 105 |  |  | $ | 1,518 |
Insurance – North American Agriculture | 766 |  |  | — |  |  | — |  |  | 766 |
Insurance – Overseas General | 744 |  |  | 394 |  |  | 588 |  |  | 1,726 |
Global Reinsurance | 149 |  |  | 106 |  |  | — |  |  | 255 |
Life | — |  |  | — |  |  | 489 |  |  | 489 |
| $ | 2,079 |  |  | $ | 1,493 |  |  | $ | 1,182 |  |  | $ | 4,754 |
For the Three Months Ended September 30, 2013 |  |  |  |  |  |  |
Insurance – North American P&C | $ | 388 |  |  | $ | 957 |  |  | $ | 99 |  |  | $ | 1,444 |
Insurance – North American Agriculture | 849 |  |  | — |  |  | — |  |  | 849 |
Insurance – Overseas General | 689 |  |  | 375 |  |  | 547 |  |  | 1,611 |
Global Reinsurance | 141 |  |  | 98 |  |  | — |  |  | 239 |
Life | — |  |  | — |  |  | 467 |  |  | 467 |
| $ | 2,067 |  |  | $ | 1,430 |  |  | $ | 1,113 |  |  | $ | 4,610 |
(in millions of U.S. dollars) | Property & All Other |  |  | Casualty |  |  | Life, Accident & Health |  |  | ACE Consolidated |
For the Nine Months Ended September 30, 2014 |  |  |
Insurance – North American P&C | $ | 1,248 |  |  | $ | 2,992 |  |  | $ | 307 |  |  | $ | 4,547 |
Insurance – North American Agriculture | 1,199 |  |  | — |  |  | — |  |  | 1,199 |
Insurance – Overseas General | 2,164 |  |  | 1,158 |  |  | 1,725 |  |  | 5,047 |
Global Reinsurance | 435 |  |  | 365 |  |  | — |  |  | 800 |
Life | — |  |  | — |  |  | 1,463 |  |  | 1,463 |
| $ | 5,046 |  |  | $ | 4,515 |  |  | $ | 3,495 |  |  | $ | 13,056 |
For the Nine Months Ended September 30, 2013 |  |  |  |  |  |  |
Insurance – North American P&C | $ | 1,103 |  |  | $ | 2,826 |  |  | $ | 281 |  |  | $ | 4,210 |
Insurance – North American Agriculture | 1,252 |  |  | — |  |  | — |  |  | 1,252 |
Insurance – Overseas General | 1,932 |  |  | 1,088 |  |  | 1,613 |  |  | 4,633 |
Global Reinsurance | 408 |  |  | 323 |  |  | — |  |  | 731 |
Life | — |  |  | — |  |  | 1,424 |  |  | 1,424 |
| $ | 4,695 |  |  | $ | 4,237 |  |  | $ | 3,318 |  |  | $ | 12,250 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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