| Condensed Consolidating Balance Sheet |
Condensed Consolidating Balance Sheet at June 30, 2015 | | | | | | | | | | | | | | | | | | | | | (in millions of U.S. dollars) | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| Assets | | | | | | | | | | Investments | $ | 32 |
| | $ | 35 |
| | $ | 63,198 |
| | $ | — |
| | $ | 63,265 |
| Cash(1) | 1 |
| | 3 |
| | 1,209 |
| | (423 | ) | | 790 |
| Insurance and reinsurance balances receivable | — |
| | — |
| | 6,726 |
| | (969 | ) | | 5,757 |
| Reinsurance recoverable on losses and loss expenses | — |
| | — |
| | 20,619 |
| | (8,844 | ) | | 11,775 |
| Reinsurance recoverable on policy benefits | — |
| | — |
| | 1,192 |
| | (989 | ) | | 203 |
| Value of business acquired | — |
| | — |
| | 434 |
| | — |
| | 434 |
| Goodwill and other intangible assets | — |
| | — |
| | 5,969 |
| | — |
| | 5,969 |
| Investments in subsidiaries | 29,806 |
| | 18,747 |
| | — |
| | (48,553 | ) | | — |
| Due from subsidiaries and affiliates, net | 370 |
| | — |
| | — |
| | (370 | ) | | — |
| Other assets | 5 |
| | 381 |
| | 15,026 |
| | (3,765 | ) | | 11,647 |
| Total assets | $ | 30,214 |
| | $ | 19,166 |
| | $ | 114,373 |
| | $ | (63,913 | ) | | $ | 99,840 |
| Liabilities | | | | | | | | | | Unpaid losses and loss expenses | $ | — |
| | $ | — |
| | $ | 46,596 |
| | $ | (8,366 | ) | | $ | 38,230 |
| Unearned premiums | — |
| | — |
| | 10,718 |
| | (1,839 | ) | | 8,879 |
| Future policy benefits | — |
| | — |
| | 5,824 |
| | (989 | ) | | 4,835 |
| Due to subsidiaries and affiliates, net | — |
| | 245 |
| | 125 |
| | (370 | ) | | — |
| Affiliated notional cash pooling programs(1) | 386 |
| | 37 |
| | — |
| | (423 | ) | | — |
| Short-term debt | — |
| | 700 |
| | 1,402 |
| | — |
| | 2,102 |
| Long-term debt | — |
| | 4,145 |
| | 12 |
| | — |
| | 4,157 |
| Trust preferred securities | — |
| | 309 |
| | — |
| | — |
| | 309 |
| Other liabilities | 273 |
| | 1,499 |
| | 13,374 |
| | (3,373 | ) | | 11,773 |
| Total liabilities | 659 |
| | 6,935 |
| | 78,051 |
| | (15,360 | ) | | 70,285 |
| Total shareholders’ equity | 29,555 |
| | 12,231 |
| | 36,322 |
| | (48,553 | ) | | 29,555 |
| Total liabilities and shareholders’ equity | $ | 30,214 |
| | $ | 19,166 |
| | $ | 114,373 |
| | $ | (63,913 | ) | | $ | 99,840 |
|
| | (1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2015, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Condensed Consolidating Balance Sheet at December 31, 2014
| | | | | | | | | | | | | | | | | | | | | (in millions of U.S. dollars) | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| Assets | | | | | | | | | | Investments | $ | 30 |
| | $ | 225 |
| | $ | 62,649 |
| | $ | — |
| | $ | 62,904 |
| Cash(1) | — |
| | 1 |
| | 1,209 |
| | (555 | ) | | 655 |
| Insurance and reinsurance balances receivable | — |
| | — |
| | 6,178 |
| | (752 | ) | | 5,426 |
| Reinsurance recoverable on losses and loss expenses | — |
| | — |
| | 20,992 |
| | (9,000 | ) | | 11,992 |
| Reinsurance recoverable on policy benefits | — |
| | — |
| | 1,194 |
| | (977 | ) | | 217 |
| Value of business acquired | — |
| | — |
| | 466 |
| | — |
| | 466 |
| Goodwill and other intangible assets | — |
| | — |
| | 5,724 |
| | — |
| | 5,724 |
| Investments in subsidiaries | 29,497 |
| | 18,762 |
| | — |
| | (48,259 | ) | | — |
| Due from subsidiaries and affiliates, net | 583 |
| | — |
| | — |
| | (583 | ) | | — |
| Other assets | 4 |
| | 295 |
| | 14,196 |
| | (3,631 | ) | | 10,864 |
| Total assets | $ | 30,114 |
| | $ | 19,283 |
| | $ | 112,608 |
| | $ | (63,757 | ) | | $ | 98,248 |
| Liabilities | | | | | | | | | | Unpaid losses and loss expenses | $ | — |
| | $ | — |
| | $ | 46,770 |
| | $ | (8,455 | ) | | $ | 38,315 |
| Unearned premiums | — |
| | — |
| | 9,958 |
| | (1,736 | ) | | 8,222 |
| Future policy benefits | — |
| | — |
| | 5,731 |
| | (977 | ) | | 4,754 |
| Due to subsidiaries and affiliates, net | — |
| | 422 |
| | 161 |
| | (583 | ) | | — |
| Affiliated notional cash pooling programs(1) | 246 |
| | 309 |
| | — |
| | (555 | ) | | — |
| Short-term debt | — |
| | 1,150 |
| | 1,402 |
| | — |
| | 2,552 |
| Long-term debt | — |
| | 3,345 |
| | 12 |
| | — |
| | 3,357 |
| Trust preferred securities | — |
| | 309 |
| | — |
| | — |
| | 309 |
| Other liabilities | 281 |
| | 1,404 |
| | 12,659 |
| | (3,192 | ) | | 11,152 |
| Total liabilities | 527 |
| | 6,939 |
| | 76,693 |
| | (15,498 | ) | | 68,661 |
| Total shareholders’ equity | 29,587 |
| | 12,344 |
| | 35,915 |
| | (48,259 | ) | | 29,587 |
| Total liabilities and shareholders’ equity | $ | 30,114 |
| | $ | 19,283 |
| | $ | 112,608 |
| | $ | (63,757 | ) | | $ | 98,248 |
|
| | (1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
|
| Condensed Consolidating Statement Of Operations and Comprehensive Income |
Condensed Consolidating Statements of Operations and Comprehensive Income | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2015 | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| (in millions of U.S. dollars) | | | | | Net premiums written | $ | — |
| | $ | — |
| | $ | 4,784 |
| | $ | — |
| | $ | 4,784 |
| Net premiums earned | — |
| | — |
| | 4,360 |
| | — |
| | 4,360 |
| Net investment income | — |
| | — |
| | 562 |
| | — |
| | 562 |
| Equity in earnings of subsidiaries | 901 |
| | 296 |
| | — |
| | (1,197 | ) | | — |
| Net realized gains (losses) including OTTI | — |
| | (2 | ) | | 128 |
| | — |
| | 126 |
| Losses and loss expenses | — |
| | — |
| | 2,417 |
| | — |
| | 2,417 |
| Policy benefits | — |
| | — |
| | 153 |
| | — |
| | 153 |
| Policy acquisition costs and administrative expenses | 18 |
| | 7 |
| | 1,280 |
| | — |
| | 1,305 |
| Interest (income) expense | (7 | ) | | 69 |
| | 9 |
| | — |
| | 71 |
| Other (income) expense | (57 | ) | | (4 | ) | | 78 |
| | — |
| | 17 |
| Income tax expense (benefit) | 5 |
| | (27 | ) | | 165 |
| | — |
| | 143 |
| Net income | $ | 942 |
| | $ | 249 |
| | $ | 948 |
| | $ | (1,197 | ) | | $ | 942 |
| Comprehensive income (loss) | $ | 397 |
| | $ | (91 | ) | | $ | 403 |
| | $ | (312 | ) | | $ | 397 |
|
Condensed Consolidating Statements of Operations and Comprehensive Income | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2014 | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| (in millions of U.S. dollars) | | | | | Net premiums written | $ | — |
| | $ | — |
| | $ | 4,559 |
| | $ | — |
| | $ | 4,559 |
| Net premiums earned | — |
| | — |
| | 4,332 |
| | — |
| | 4,332 |
| Net investment income | 1 |
| | 1 |
| | 554 |
| | — |
| | 556 |
| Equity in earnings of subsidiaries | 745 |
| | 231 |
| | — |
| | (976 | ) | | — |
| Net realized gains (losses) including OTTI | — |
| | 8 |
| | (81 | ) | | — |
| | (73 | ) | Losses and loss expenses | — |
| | — |
| | 2,388 |
| | — |
| | 2,388 |
| Policy benefits | — |
| | — |
| | 144 |
| | — |
| | 144 |
| Policy acquisition costs and administrative expenses | 22 |
| | 8 |
| | 1,294 |
| | — |
| | 1,324 |
| Interest (income) expense | (9 | ) | | 70 |
| | 11 |
| | — |
| | 72 |
| Other (income) expense | (50 | ) | | 6 |
| | 19 |
| | — |
| | (25 | ) | Income tax expense (benefit) | 4 |
| | (25 | ) | | 154 |
| | — |
| | 133 |
| Net income | $ | 779 |
| | $ | 181 |
| | $ | 795 |
| | $ | (976 | ) | | $ | 779 |
| Comprehensive income | $ | 1,348 |
| | $ | 511 |
| | $ | 1,364 |
| | $ | (1,875 | ) | | $ | 1,348 |
|
Condensed Consolidating Statements of Operations and Comprehensive Income | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2015 | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| (in millions of U.S. dollars) | | | | | Net premiums written | $ | — |
| | $ | — |
| | $ | 8,860 |
| | $ | — |
| | $ | 8,860 |
| Net premiums earned | — |
| | — |
| | 8,287 |
| | — |
| | 8,287 |
| Net investment income | 1 |
| | 1 |
| | 1,111 |
| | — |
| | 1,113 |
| Equity in earnings of subsidiaries | 1,549 |
| | 500 |
| | — |
| | (2,049 | ) | | — |
| Net realized gains (losses) including OTTI | — |
| | (2 | ) | | 39 |
| | — |
| | 37 |
| Losses and loss expenses | — |
| | — |
| | 4,539 |
| | — |
| | 4,539 |
| Policy benefits | — |
| | — |
| | 295 |
| | — |
| | 295 |
| Policy acquisition costs and administrative expenses | 32 |
| | 13 |
| | 2,521 |
| | — |
| | 2,566 |
| Interest (income) expense | (15 | ) | | 138 |
| | 16 |
| | — |
| | 139 |
| Other (income) expense | (98 | ) | | (7 | ) | | 117 |
| | — |
| | 12 |
| Income tax expense (benefit) | 8 |
| | (53 | ) | | 308 |
| | — |
| | 263 |
| Net income | $ | 1,623 |
| | $ | 408 |
| | $ | 1,641 |
| | $ | (2,049 | ) | | $ | 1,623 |
| Comprehensive income (loss) | $ | 1,039 |
| | $ | (67 | ) | | $ | 1,057 |
| | $ | (990 | ) | | $ | 1,039 |
|
Condensed Consolidating Statements of Operations and Comprehensive Income | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2014 | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| (in millions of U.S. dollars) | | | | | Net premiums written | $ | — |
| | $ | — |
| | $ | 8,744 |
| | $ | — |
| | $ | 8,744 |
| Net premiums earned | — |
| | — |
| | 8,302 |
| | — |
| | 8,302 |
| Net investment income | 1 |
| | 1 |
| | 1,107 |
| | — |
| | 1,109 |
| Equity in earnings of subsidiaries | 1,447 |
| | 411 |
| | — |
| | (1,858 | ) | | — |
| Net realized gains (losses) including OTTI | — |
| | 7 |
| | (184 | ) | | — |
| | (177 | ) | Losses and loss expenses | — |
| | — |
| | 4,549 |
| | — |
| | 4,549 |
| Policy benefits | — |
| | — |
| | 258 |
| | — |
| | 258 |
| Policy acquisition costs and administrative expenses | 39 |
| | 14 |
| | 2,534 |
| | — |
| | 2,587 |
| Interest (income) expense | (19 | ) | | 141 |
| | 21 |
| | — |
| | 143 |
| Other (income) expense | (92 | ) | | 20 |
| | 30 |
| | — |
| | (42 | ) | Income tax expense (benefit) | 7 |
| | (55 | ) | | 274 |
| | — |
| | 226 |
| Net income | $ | 1,513 |
| | $ | 299 |
| | $ | 1,559 |
| | $ | (1,858 | ) | | $ | 1,513 |
| Comprehensive income | $ | 2,456 |
| | $ | 777 |
| | $ | 2,502 |
| | $ | (3,279 | ) | | $ | 2,456 |
|
|
| Condensed Consolidating Statement of Cash Flows |
Condensed Consolidating Statement of Cash Flows | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2015 | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE
Limited
Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| (in millions of U.S. dollars) | | | | | Net cash flows from (used for) operating activities | $ | 65 |
| | $ | (35 | ) | | $ | 1,861 |
| | $ | — |
| | $ | 1,891 |
| Cash flows from investing activities | | | | | | | | | | Purchases of fixed maturities available for sale | — |
| | — |
| | (9,210 | ) | | — |
| | (9,210 | ) | Purchases of fixed maturities held to maturity | — |
| | — |
| | (24 | ) | | — |
| | (24 | ) | Purchases of equity securities | — |
| | — |
| | (70 | ) | | — |
| | (70 | ) | Sales of fixed maturities available for sale | — |
| | — |
| | 3,642 |
| | — |
| | 3,642 |
| Sales of equity securities | — |
| | — |
| | 102 |
| | — |
| | 102 |
| Maturities and redemptions of fixed maturities available for sale | — |
| | — |
| | 3,691 |
| | — |
| | 3,691 |
| Maturities and redemptions of fixed maturities held to maturity | — |
| | — |
| | 470 |
| | — |
| | 470 |
| Net change in short-term investments | — |
| | 190 |
| | 38 |
| | — |
| | 228 |
| Net derivative instruments settlements | — |
| | (9 | ) | | (24 | ) | | — |
| | (33 | ) | Acquisition of subsidiaries (net of cash acquired of $620) | — |
| | — |
| | 255 |
| | — |
| | 255 |
| Other | — |
| | (2 | ) | | (69 | ) | | — |
| | (71 | ) | Net cash flows from (used for) investing activities | — |
| | 179 |
| | (1,199 | ) | | — |
| | (1,020 | ) | Cash flows from financing activities | | | | | | | | | | Dividends paid on Common Shares | (427 | ) | | — |
| | — |
| | — |
| | (427 | ) | Common Shares repurchased | — |
| | — |
| | (750 | ) | | — |
| | (750 | ) | Proceeds from issuance of long-term debt | — |
| | 800 |
| | — |
| | — |
| | 800 |
| Proceeds from issuance of short-term debt | — |
| | — |
| | 1,327 |
| | — |
| | 1,327 |
| Repayment of long-term debt | — |
| | (450 | ) | | — |
| | — |
| | (450 | ) | Repayment of short-term debt | — |
| | — |
| | (1,327 | ) | | — |
| | (1,327 | ) | Proceeds from share-based compensation plans, including windfall tax benefits | — |
| | — |
| | 46 |
| | — |
| | 46 |
| Advances (to) from affiliates | 223 |
| | (214 | ) | | (9 | ) | | — |
| | — |
| Net payments to affiliated notional cash pooling programs(1) | 140 |
| | (272 | ) | | — |
| | 132 |
| | — |
| Policyholder contract deposits | — |
| | — |
| | 235 |
| | — |
| | 235 |
| Policyholder contract withdrawals | — |
| | — |
| | (107 | ) | | — |
| | (107 | ) | Other | — |
| | (6 | ) | | — |
| | — |
| | (6 | ) | Net cash flows used for financing activities | (64 | ) | | (142 | ) | | (585 | ) | | 132 |
| | (659 | ) | Effect of foreign currency rate changes on cash and cash equivalents | — |
| | — |
| | (77 | ) | | — |
| | (77 | ) | Net increase in cash | 1 |
| | 2 |
| | — |
| | 132 |
| | 135 |
| Cash – beginning of period(1) | — |
| | 1 |
| | 1,209 |
| | (555 | ) | | 655 |
| Cash – end of period(1) | $ | 1 |
| | $ | 3 |
| | $ | 1,209 |
| | $ | (423 | ) | | $ | 790 |
|
| | (1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2015 and December 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
Condensed Consolidating Statement of Cash Flows | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2014 | ACE Limited (Parent Guarantor) |
| | ACE INA Holdings Inc. (Subsidiary Issuer) |
| | Other ACE Limited Subsidiaries |
| | Consolidating Adjustments and Eliminations |
| | ACE Limited Consolidated |
| (in millions of U.S. dollars) | | | | | Net cash flows from (used for) operating activities | $ | 83 |
| | $ | (7 | ) | | $ | 2,020 |
| | $ | — |
| | $ | 2,096 |
| Cash flows from investing activities | | | | | | | | | | Purchases of fixed maturities available for sale | — |
| | — |
| | (7,963 | ) | | 3 |
| | (7,960 | ) | Purchases of fixed maturities held to maturity | — |
| | — |
| | (129 | ) | | — |
| | (129 | ) | Purchases of equity securities | — |
| | — |
| | (64 | ) | | — |
| | (64 | ) | Sales of fixed maturities available for sale | — |
| | — |
| | 3,845 |
| | (3 | ) | | 3,842 |
| Sales of equity securities | — |
| | — |
| | 45 |
| | — |
| | 45 |
| Maturities and redemptions of fixed maturities available for sale | — |
| | — |
| | 3,163 |
| | — |
| | 3,163 |
| Maturities and redemptions of fixed maturities held to maturity | — |
| | — |
| | 414 |
| | — |
| | 414 |
| Net change in short-term investments | (1 | ) | | (1 | ) | | (293 | ) | | — |
| | (295 | ) | Net derivative instruments settlements | — |
| | (7 | ) | | (178 | ) | | — |
| | (185 | ) | Acquisition of subsidiaries (net of cash acquired of $4) | — |
| | — |
| | (172 | ) | | — |
| | (172 | ) | Other | — |
| | (3 | ) | | (115 | ) | | — |
| | (118 | ) | Net cash flows used for investing activities | (1 | ) | | (11 | ) | | (1,447 | ) | | — |
| | (1,459 | ) | Cash flows from financing activities | | | | | | | | | | Dividends paid on Common Shares | (428 | ) | | — |
| | — |
| | — |
| | (428 | ) | Common Shares repurchased | — |
| | — |
| | (557 | ) | | — |
| | (557 | ) | Proceeds from issuance of long-term debt | — |
| | 699 |
| | — |
| | — |
| | 699 |
| Proceeds from issuance of short-term debt | — |
| | — |
| | 977 |
| | — |
| | 977 |
| Repayment of long-term debt | — |
| | (500 | ) | | — |
| | — |
| | (500 | ) | Repayment of short-term debt | — |
| | — |
| | (977 | ) | | — |
| | (977 | ) | Proceeds from share-based compensation plans, including windfall tax benefits | — |
| | — |
| | 75 |
| | — |
| | 75 |
| Advances (to) from affiliates | 575 |
| | (667 | ) | | 92 |
| | — |
| | — |
| Net proceeds from (payments to) affiliated notional cash pooling programs(1) | (185 | ) | | 477 |
| | — |
| | (292 | ) | | — |
| Policyholder contract deposits | — |
| | — |
| | 125 |
| | — |
| | 125 |
| Policyholder contract withdrawals | — |
| | — |
| | (33 | ) | | — |
| | (33 | ) | Other | — |
| | (6 | ) | | — |
| | — |
| | (6 | ) | Net cash flows (used for) from financing activities | (38 | ) | | 3 |
| | (298 | ) | | (292 | ) | | (625 | ) | Effect of foreign currency rate changes on cash and cash equivalents | — |
| | — |
| | 3 |
| | — |
| | 3 |
| Net increase (decrease) in cash | 44 |
| | (15 | ) | | 278 |
| | (292 | ) | | 15 |
| Cash – beginning of period(1) | — |
| | 16 |
| | 748 |
| | (185 | ) | | 579 |
| Cash – end of period(1) | $ | 44 |
| | $ | 1 |
| | $ | 1,026 |
| | $ | (477 | ) | | $ | 594 |
|
| | (1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. |
|