EX-99.2

EX-99.2 3 d430928dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO

Chubb Limited

Financial Supplement

for the Quarter Ended June 30, 2017

Investor Contact

Helen M. Wilson

Phone: (441) 299-9283

email: investorrelations@chubb.com

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

Cautionary Statement Regarding Forward-Looking Statements

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

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

Chubb Limited

Financial Supplement Table of Contents


		Page
I.	Financial Highlights
	- Consolidated Financial Highlights		1 - 2

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

III.	Global P&C Results
	- Global P&C Underwriting Results - Consecutive Quarters		11

IV.	Segment Results
	- North America Commercial P&C Insurance		12
	- North America Personal P&C Insurance		13
	- North America Agricultural Insurance		14
	- Overseas General Insurance		15 - 16
	- Global Reinsurance		17
	- Life Insurance		18
	- Corporate		19

V.	Balance Sheet Details
	- Loss Reserve Rollforward		20
	- Reinsurance Recoverable Analysis		21
	- Investment Portfolio		22 - 25
	- Net Realized and Unrealized Gains (Losses)		26 - 27
	- Debt and Capital		28
	- Computation of Basic and Diluted Earnings Per Share		29
	- Book Value and Book Value per Common Share		30

VI.	Other Disclosures
	- Non-GAAP Financial Measures		31 - 36
	- Glossary		37

Note: The results herein are presented on an as-reported basis unless otherwise indicated.

For comparison purposes, key 2016 “As If” results, which include the results of operations of The Chubb Corporation (Chubb Corp) for the first 14 days of January 2016 prior to the acquisition closing date and exclude purchase accounting adjustments in underwriting income, are also included within the as-reported pages. These results are calculated on the same basis as presented in prior reports, are unaudited and are provided for informational purposes only. For more detailed 2016 results presented on an “As If” basis, refer to the Chubb Limited Financial Supplement for the quarter and year ended December 31, 2016.

Chubb Limited

Consolidated Financial Highlights - Quarter

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

(Unaudited)


												Constant $
							% Change					% Change
	Three months ended June 30						2Q-17 vs.			Constant $		2Q-17 vs.
	2017			2016			2Q-16			2016		2Q-16
Gross premiums written	$	9,305		$	9,274			0.3	%	$	9,228		0.8	%
Net premiums written	$	7,581		$	7,639			-0.8	%	$	7,598		-0.2	%
P&C net premiums written	$	7,058		$	7,112			-0.8	%	$	7,069		-0.2	%
Global P&C net premiums written	$	6,655		$	6,737			-1.2	%	$	6,694		-0.6	%
Net premiums earned	$	7,237		$	7,405			-2.3	%	$	7,368		-1.8	%
Net investment income	$	770		$	708			8.8	%	$	703		9.6	%
Adjusted net investment income	$	855		$	816			4.8	%	$	811		5.5	%
Operating income	$	1,180		$	1,058			11.4	%	$	1,054		11.8	%
Net income	$	1,305		$	726			79.6	%
Operating cash flow	$	627		$	1,133
P&C combined ratio
Loss and loss expense ratio		59.0	%		59.6	%
Underwriting and administrative expense ratio		29.0	%		31.6	%

Combined ratio		88.0	%		91.2	%
P&C combined ratio - As If
Loss and loss expense ratio - As If					59.6	%
Underwriting and administrative expense ratio - As If					30.6	%

Combined ratio - As If					90.2	%
Operating return on equity (ROE)		9.8	%		9.5	%
ROE		10.5	%		6.2	%
Operating effective tax rate		16.0	%		16.7	%
Effective tax rate		13.3	%		17.6	%
Diluted earnings per share
Operating income	$	2.50		$	2.25			11.1	%
Net income	$	2.77		$	1.54			79.9	%
Weighted average basic common shares outstanding		468.0			467.7
Weighted average diluted common shares outstanding		471.9			471.2


Financial Highlights – QTR		Page 1

Chubb Limited

Consolidated Financial Highlights - Year to Date

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

(Unaudited)


																As If
													Constant $											Constant $
							% Change						% Change						% Change					% Change
	Six months ended June 30						YTD-17 vs			Constant $			YTD-17 vs			YTD			YTD-17 vs			Constant $		YTD-17 vs
	2017			2016			YTD-16			2016			YTD-16			2016			YTD-16			2016		YTD-16
Gross premiums written	$	17,706		$	16,663			6.3	%	$	16,596			6.7	%	$	17,595			0.6	%	$	17,529		1.0	%
Net premiums written	$	14,291		$	13,634			4.8	%	$	13,570			5.3	%	$	14,489			-1.4	%	$	14,425		-0.9	%
P&C net premiums written	$	13,244		$	12,591			5.2	%	$	12,522			5.8	%	$	13,445			-1.5	%	$	13,375		-1.0	%
Global P&C net premiums written	$	12,780		$	12,152			5.2	%	$	12,083			5.8	%	$	13,006			-1.7	%	$	12,936		-1.2	%
Net premiums earned	$	14,009		$	14,002			0.1	%	$	13,964			0.3	%
Net investment income	$	1,515		$	1,382			9.6	%	$	1,374			10.3	%
Adjusted net investment income	$	1,691		$	1,583			6.8	%	$	1,575			7.4	%
Operating income	$	2,355		$	2,077			13.3	%	$	2,070			13.7	%
Net income	$	2,398		$	1,165			105.8	%
Operating cash flow	$	1,640		$	2,153
P&C combined ratio
Loss and loss expense ratio		58.2	%		58.5	%											58.5	%
Underwriting and administrative expense ratio		29.6	%		32.1	%											31.1	%

Combined ratio		87.8	%		90.6	%											89.6	%
Operating return on equity (ROE)		9.8	%		9.8	%
ROE		9.7	%		5.3	%
Operating effective tax rate		15.0	%		16.6	%
Effective tax rate		12.0	%		19.3	%
Diluted earnings per share
Operating income	$	4.99		$	4.51			10.6	%
Net income	$	5.08		$	2.53			100.8	%
Full six months diluted earnings per share ⁽¹⁾
Operating income				$	4.54
Net income				$	2.60
										December 31 2016			% Change 2Q-17 vs 4Q-16
Book value per common share	$	108.19								$	103.60			4.4	%
Tangible book value per common share	$	65.23								$	60.64			7.6	%
Weighted average basic common shares outstanding		468.2			457.1
Weighted average diluted common shares outstanding		472.1			460.5
Total hybrid & financial debt/capitalization		20.4	%		22.1	%					21.8	%

(1)	Full six months diluted earnings per share includes the combined company results inclusive of the first 14 days of January 2016 and includes the impact of purchase accounting adjustments related to The Chubb Corporation acquisition.


Financial Highlights - YTD		Page 2

Chubb Limited

Statement of Operations - Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)


																	YTD			YTD			Full Year
	Consolidated Statements of Operations	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
	Gross premiums written	$	9,305		$	8,401		$	8,837		$	9,483		$	9,274		$	17,706		$	16,663		$	34,983
	Net premiums written		7,581			6,710			6,938			7,573			7,639			14,291			13,634			28,145
	Net premiums earned		7,237			6,772			7,059			7,688			7,405			14,009			14,002			28,749
(1)	Adjusted losses and loss expenses		4,148			3,789			3,884			4,266			4,256			7,937			7,930			16,080
	Realized (gains) losses on crop derivatives		2			—			6			(3	)		2			2			2			5
	Pension curtailment benefit		—			—			(23	)		—			—			—			—			(23	)

	Losses and loss expenses		4,146			3,789			3,855			4,269			4,254			7,935			7,928			16,052
	Policy benefits		163			168			161			155			146			331			272			588
	Policy acquisition costs		1,449			1,397			1,417			1,514			1,560			2,846			2,973			5,904
(2)	Adjusted administrative expenses		706			676			798			772			829			1,382			1,601			3,171
	Pension curtailment benefit		—			—			(90	)		—			—			—			—			(90	)

	Administrative expenses		706			676			708			772			829			1,382			1,601			3,081
(3)	Adjusted net investment income		855			836			845			830			816			1,691			1,583			3,258
	Amortization expense of fair value adjustment on acquired invested assets		(85	)		(91	)		(101	)		(91	)		(108	)		(176	)		(201	)		(393	)

	Net investment income		770			745			744			739			708			1,515			1,382			2,865
(4)	Adjusted realized gains (losses)		103			(7	)		371			97			(214	)		96			(608	)		(140	)
	Realized gains (losses) on crop derivatives		(2	)		—			(6	)		3			(2	)		(2	)		(2	)		(5	)

	Net realized gains (losses)		101			(7	)		365			100			(216	)		94			(610	)		(145	)
(5)	Adjusted interest expense		160			166			167			164			166			326			315			646
	Interest expense related to pre-acquisition debt		—			—			—			—			—			—			7			7
	Amortization benefit of fair value adjustment on acquired long term debt		(13	)		(12	)		(13	)		(12	)		(13	)		(25	)		(23	)		(48	)

	Interest expense		147			154			154			152			153			301			299			605
	Gains (losses) from fair value changes in separate account assets		16			30			(11	)		22			3			46			—			11
	Net realized gains (losses) related to unconsolidated entities		143			52			162			72			18			195			(7	)		227
	Other income (expense) - operating		(14	)		(12	)		(21	)		(3	)		8			(26	)		8			(16	)

	Other income (expense)		145			70			130			91			29			215			1			222
	Amortization expense of purchased intangibles		65			64			3			4			5			129			12			19
	Chubb integration expenses		72			111			131			115			98			183			246			492
	Income tax expense		200			128			259			277			155			328			279			815

	Net income	$	1,305		$	1,093		$	1,610		$	1,360		$	726		$	2,398		$	1,165		$	4,135

(1)	Adjusted losses and loss expenses used throughout this report exclude a portion of the one-time pension curtailment benefit, recorded in Corporate, and include realized gains and losses on crop derivatives.

(2)	Adjusted administrative expenses used throughout this report exclude a portion of the one-time pension curtailment benefit.

(3)	Adjusted net investment income used throughout this report excludes amortization of the fair value adjustment on acquired invested assets.

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

(5)	Adjusted interest expense used throughout this report excludes interest expense related to pre-acquisition debt and amortization benefit of the fair value adjustment on acquired long term debt.


Statement of Operations		Page 3

Chubb Limited

P&C Underwriting Results - Consecutive Quarters

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

(Unaudited)


																YTD			YTD			Full Year
Chubb Limited P&C Underwriting Results	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
P&C Underwriting Income (Including Corporate and excluding Life Insurance)
Gross premiums written	$	8,748		$	7,851		$	8,260		$	8,921		$	8,717		$	16,599		$	15,560		$	32,741
Net premiums written		7,058			6,186			6,389			7,041			7,112			13,244			12,591			26,021
Net premiums earned		6,722			6,266			6,525			7,176			6,893			12,988			12,993			26,694
Adjusted losses and loss expenses		3,966			3,596			3,719			4,092			4,109			7,562			7,606			15,417
Policy acquisition costs (excluding amortization of acquired UPR intangible)		1,319			1,283			1,150			1,067			898			2,602			1,619			3,836
Amortization of acquired UPR intangible - Chubb Corp		—			—			144			320			525			—			1,095			1,559
Adjusted administrative expenses		629			604			717			695			752			1,233			1,452			2,864

P&C Underwriting income	$	808		$	783		$	795		$	1,002		$	609		$	1,591		$	1,221		$	3,018

P&C Underwriting income - As If							$	812		$	1,041		$	675					$	1,395		$	3,248
% Change versus prior year period
Net premiums written		-0.8	%		12.9	%		76.1	%		67.0	%		66.0	%		5.2	%		65.5	%		65.6	%
Net premiums earned		-2.5	%		2.7	%		76.3	%		69.3	%		77.9	%		0.0	%		83.1	%		74.8	%
Net premiums written constant $		-0.2	%		13.4	%		77.1	%		68.8	%		68.8	%		5.8	%		65.5	%		69.1	%
Net premiums earned constant $		-2.0	%		2.8	%		77.1	%		71.0	%		81.1	%		0.3	%		83.1	%		78.2	%
% Change versus prior year period - As If *
Net premiums written		-0.8	%		-2.3	%		-4.2	%		-4.5	%		-6.2	%		-1.5	%		-5.9	%		-5.1	%
Net premiums written constant $		-0.2	%		-1.9	%		-3.5	%		-3.4	%		-4.7	%		-1.0	%		-3.2	%		-3.3	%
Net premiums written constant $ excluding merger-related underwriting actions & accounting policy alignment ⁽¹⁾		2.6	%		2.2	%		-0.4	%		1.1	%		-3.5	%		2.5	%		-2.3	%		-1.0	%
P&C combined ratio
Loss and loss expense ratio		59.0	%		57.4	%		57.0	%		57.0	%		59.6	%		58.2	%		58.5	%		57.8	%
Policy acquisition cost ratio		19.6	%		20.5	%		19.8	%		19.3	%		20.6	%		20.0	%		20.9	%		20.2	%
Administrative expense ratio		9.4	%		9.6	%		11.0	%		9.7	%		11.0	%		9.6	%		11.2	%		10.7	%

Combined ratio		88.0	%		87.5	%		87.8	%		86.0	%		91.2	%		87.8	%		90.6	%		88.7	%

Combined ratio excluding catastrophe losses and PPD		87.5	%		88.0	%		87.4	%		88.9	%		89.9	%		87.8	%		89.9	%		89.0	%
P&C Combined ratio - As If
Loss and loss expense ratio - As If								57.0	%		57.0	%		59.6	%					58.5	%		57.7	%
Policy acquisition cost ratio - As If								19.6	%		18.8	%		19.6	%					19.8	%		19.5	%
Administrative expense ratio - As If								11.0	%		9.7	%		11.0	%					11.3	%		10.8	%

Combined ratio - As If								87.6	%		85.5	%		90.2	%					89.6	%		88.0	%

Combined ratio excluding catastrophe losses and PPD - As If								87.1	%		88.4	%		88.9	%					88.9	%		88.3	%
Other ratios
Net premiums written/gross premiums written		81	%		79	%		77	%		79	%		82	%		80	%		81	%		79	%
P&C expense ratio		29.0	%		30.1	%		30.8	%		29.0	%		31.6	%		29.6	%		32.1	%		30.9	%
P&C expense ratio excluding A&H		27.1	%		28.0	%		28.8	%		27.0	%		29.8	%		27.5	%		30.3	%		29.0	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	—		$	—		$	1		$	—		$	6		$	—		$	6		$	7
Catastrophe losses - pre-tax	$	200		$	206		$	269		$	144		$	396		$	406		$	654		$	1,067
Favorable prior period development (PPD) - pre-tax	$	(170	)	$	(231	)	$	(238	)	$	(349	)	$	(301	)	$	(401	)	$	(548	)	$	(1,135	)
Loss and loss expense ratio excluding catastrophe losses and PPD		58.6	%		58.1	%		56.4	%		60.0	%		58.4	%		58.4	%		57.9	%		58.1	%

(1)	Net premiums written were adversely impacted by merger-related underwriting actions of $198 million in Q2 2017 and $385 million for YTD 2017, and by accounting policy alignment of $73 million for YTD 2017.

*	Comparisons to 2015 are as if ACE and Chubb were one company.

Note: See Glossary on page 37 for further information on the calculation of the components of combined ratios.


P&C Results		Page 4

Chubb Limited

Summary Consolidated Balance Sheets

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

(Unaudited)


	June 30			March 31			December 31
	2017			2017			2016
Assets
Fixed maturities available for sale, at fair value	$	81,645		$	80,806		$	80,115
Fixed maturities held to maturity, at amortized cost		10,371			10,519			10,644
Equity securities, at fair value		856			835			814
Short-term investments, at fair value		2,651			2,780			3,002
Other investments		4,685			4,551			4,519

Total investments		100,208			99,491			99,094
Cash		1,297			1,063			985
Securities lending collateral		1,545			1,071			1,092
Insurance and reinsurance balances receivable		9,662			8,880			8,970
Reinsurance recoverable on losses and loss expenses		13,358			13,769			13,577
Deferred policy acquisition costs		4,546			4,406			4,314
Value of business acquired		337			345			355
Prepaid reinsurance premiums		2,592			2,549			2,448
Goodwill and other intangible assets		22,013			22,061			22,095
Investments in partially-owned insurance companies		662			666			666
Other assets		6,768			6,666			6,190

Total assets	$	162,988		$	160,967		$	159,786

Liabilities
Unpaid losses and loss expenses	$	60,394		$	60,579		$	60,540
Unearned premiums		15,289			14,857			14,779
Future policy benefits		5,190			5,086			5,036
Insurance and reinsurance balances payable		5,841			5,797			5,637
Securities lending payable		1,546			1,072			1,093
Accounts payable, accrued expenses, and other liabilities		10,360			10,477			10,020
Deferred tax liabilities		1,122			967			988
Short-term debt		922			300			500
Long-term debt		11,667			12,300			12,610
Trust preferred securities		308			308			308

Total liabilities		112,639			111,743			111,511
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		49,979			49,224			48,589
Accumulated other comprehensive income (AOCI)		370			—			(314	)

Total shareholders’ equity		50,349			49,224			48,275

Total liabilities and shareholders’ equity	$	162,988		$	160,967		$	159,786

Book value per common share	$	108.19		$	105.35		$	103.60
% change over prior quarter		2.7	%		1.7	%		-0.3	%
Tangible book value per common share	$	65.23		$	62.52		$	60.64
% change over prior quarter		4.3	%		3.1	%		0.6	%


Consol Bal Sheet		Page 5

Chubb Limited

Consolidated Net Premiums Written by Line of Business

(in millions of U.S. dollars)

(Unaudited)


																				C$ % Change
																				As If ex
																				Merger Actions
								C$ % Change ex												& Acct
					% Change			Merger Actions ⁽¹⁾							% Change			As If		Policy ⁽¹⁾
					2Q-17 vs.			2Q-17 vs.			YTD		YTD		YTD-17 vs			YTD		YTD-17 vs
	2Q-17		2Q-16		2Q-16			2Q-16			2017		2016		YTD-16			2016		YTD-16
Net premiums written
Commercial multiple peril⁽²⁾	$	227	$	236		-3.8	%		-2.5	%	$	428	$	368		16.3	%	$	448		-3.3	%
Commercial casualty		961		893		7.6	%		11.4	%		1,688		1,536		9.9	%		1,654		5.5	%
Workers’ compensation		478		548		-12.8	%		-7.5	%		1,066		996		7.0	%		1,135		-2.4	%
Professional liability		913		927		-1.5	%		0.8	%		1,694		1,605		5.5	%		1,741		0.1	%
Surety		153		149		2.7	%		3.4	%		303		283		7.1	%		292		5.2	%
Property and other short-tail lines		1,054		1,097		-3.9	%		-2.2	%		2,086		2,030		2.8	%		2,167		0.7	%
International other casualty		248		247		0.4	%		3.7	%		564		532		6.0	%		588		3.5	%

Total Commercial P&C⁽¹⁾		4,034		4,097		-1.5	%		1.3	%		7,829		7,350		6.5	%		8,025		1.3	%
Agriculture		403		375		7.7	%		7.7	%		464		439		5.9	%		439		5.9	%
Personal automobile - North America		209		190		10.0	%		10.0	%		374		332		12.7	%		346		8.1	%
Personal automobile - International		188		165		13.9	%		16.0	%		374		345		8.4	%		345		11.0	%
Personal homeowners		925		929		-0.4	%		7.8	%		1,622		1,569		3.4	%		1,635		6.8	%
Personal other		363		363		0.0	%		6.9	%		725		681		6.5	%		721		9.6	%

Total Personal lines ⁽¹⁾		1,685		1,647		2.3	%		8.7	%		3,095		2,927		5.7	%		3,047		8.1	%
Total Property and Casualty lines		6,122		6,119		0.0	%		3.6	%		11,388		10,716		6.3	%		11,511		3.2	%
Global A&H lines ^(1) (3)		1,025		1,029		-0.4	%		1.7	%		2,019		1,965		2.7	%		2,004		1.7	%
Reinsurance lines⁽¹⁾		190		230		-17.7	%		-16.5	%		389		431		-9.9	%		451		-10.5	%
Life ⁽¹⁾		244		261		-6.5	%		-4.9	%		495		522		-5.2	%		523		-1.7	%

Total consolidated	$	7,581	$	7,639		-0.8	%		2.5	%	$	14,291	$	13,634		4.8	%	$	14,489		2.4	%

(1)

Q2 2017 and YTD 2017 include the adverse impact of merger-related underwriting actions, respectively, as follows: Commercial P&C $87 million and $181 million; Personal lines $97 million and $175 million; Global A&H lines $14 million and $19 million; Reinsurance lines $nil and $10 million; and Life $8 million and $24 million.

YTD 2017 include the adverse impact of accounting policy alignment as follows: Commercial P&C $66 million, Personal lines $6 million and Global A&H lines $1 million.

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

(3)

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


Line of Business		Page 6

Chubb Limited

Consolidated Results - Three months ended June 30, 2017

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

(Unaudited)


	North			North			North
	America			America			America			Overseas
	Commercial P&C			Personal P&C			Agricultural			General			Global						Total			Life			Total
Q2 2017	Insurance			Insurance			Insurance			Insurance			Reinsurance			Corporate			P&C			Insurance			Consolidated
Net premiums written	$	3,204		$	1,255		$	403		$	2,006		$	190		$	—		$	7,058		$	523		$	7,581
Net premiums earned		3,099			1,093			344			2,018			168			—			6,722			515			7,237
Adjusted losses and loss expenses		1,936			683			292			964			46			45			3,966			182			4,148
Policy benefits		—			—			—			—			—			—			—			163			163
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			(16	)		(16	)
Policy acquisition costs		464			230			27			555			43			—			1,319			130			1,449
Administrative expenses		241			66			2			243			12			65			629			77			706

Underwriting income (loss)		458			114			23			256			67			(110	)		808			(21	)		787
Adjusted net investment income		490			56			6			148			65			13			778			77			855
Other income (expense) - operating⁽¹⁾		4			(1	)		(1	)		3			(1	)		(14	)		(10	)		(4	)		(14	)
Amortization expense of purchased intangibles		—			(5	)		(7	)		(11	)		—			(42	)		(65	)		—			(65	)

Segment income (loss)	$	952		$	164		$	21		$	396		$	131		$	(153	)	$	1,511		$	52		$	1,563

Adjusted interest expense																	(160	)								(160	)
Income tax expense																	(223	)								(223	)

Operating income (loss)																	(536	)								1,180
Chubb integration expenses, net of $22 million tax benefit																	(50	)								(50	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $20 million tax benefit ⁽²⁾																	(52	)								(52	)
Adjusted net realized gains (losses), net of $19 million tax⁽³⁾																	227									227

Net Income																$	(411	)							$	1,305

Combined ratio		85.2	%		89.6	%		93.3	%		87.3	%		60.2	%					88.0	%
Combined ratio excluding catastrophe losses and PPD		86.1	%		79.3	%		91.1	%		91.2	%		77.0	%					87.5	%

(1)	For the Life Insurance segment, (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).

(2)	Related to the acquisition of The Chubb Corporation.

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


Consol Results - QTD 2017		Page 7

Chubb Limited

Consolidated Results - Six months ended June 30, 2017

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

(Unaudited)


	North			North			North
	America			America			America			Overseas
	Commercial P&C			Personal P&C			Agricultural			General			Global						Total			Life			Total
YTD 2017	Insurance			Insurance			Insurance			Insurance			Reinsurance			Corporate			P&C			Insurance			Consolidated
Net premiums written	$	5,946		$	2,239		$	464		$	4,206		$	389		$	—		$	13,244		$	1,047		$	14,291
Net premiums earned		6,140			2,179			358			3,954			357			—			12,988			1,021			14,009
Adjusted losses and loss expenses		3,796			1,316			219			2,035			140			56			7,562			375			7,937
Policy benefits		—			—			—			—			—			—			—			331			331
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			(46	)		(46	)
Policy acquisition costs		951			447			26			1,084			94			—			2,602			244			2,846
Administrative expenses		472			131			(3	)		488			22			123			1,233			149			1,382

Underwriting income (loss)		921			285			116			347			101			(179	)		1,591			(32	)		1,559
Adjusted net investment income		968			111			12			296			127			25			1,539			152			1,691
Other income (expense) - operating⁽¹⁾		—			(2	)		(1	)		4			(1	)		(21	)		(21	)		(5	)		(26	)
Amortization expense of purchased intangibles		—			(8	)		(14	)		(22	)		—			(84	)		(128	)		(1	)		(129	)

Segment income (loss)	$	1,889		$	386		$	113		$	625		$	227		$	(259	)	$	2,981		$	114		$	3,095

Adjusted interest expense																	(326	)								(326	)
Income tax expense																	(414	)								(414	)

Operating income (loss)																	(999	)								2,355
Chubb integration expenses, net of $59 million tax benefit																	(124	)								(124	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $44 million tax benefit ⁽²⁾																	(107	)								(107	)
Adjusted net realized gains (losses), net of $17 million tax⁽³⁾																	274									274

Net Income																$	(956	)							$	2,398

Combined ratio		85.0	%		86.9	%		67.7	%		91.2	%		71.8	%					87.8	%
Combined ratio excluding catastrophe losses and PPD		87.0	%		78.8	%		88.2	%		91.6	%		77.0	%					87.8	%

(1)	For the Life Insurance segment, (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).

(2)	Related to the acquisition of The Chubb Corporation.

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


Consol Results - YTD 2017		Page 8

Chubb Limited

Consolidated Results - Three months ended June 30, 2016

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

(Unaudited)


	North			North			North
	America			America			America			Overseas
	Commercial P&C			Personal P&C			Agricultural			General			Global						Total			Life			Total
Q2 2016	Insurance			Insurance			Insurance			Insurance			Reinsurance			Corporate			P&C			Insurance			Consolidated
Net premiums written	$	3,245		$	1,231		$	375		$	2,031		$	230		$	—		$	7,112		$	527		$	7,639
Net premiums earned		3,148			1,140			327			2,093			185			—			6,893			512			7,405
Adjusted losses and loss expenses		1,971			661			286			1,089			87			15			4,109			147			4,256
Policy benefits		—			—			—			—			—			—			—			146			146
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			(3	)		(3	)
Policy acquisition costs (excluding amortization of acquired UPR intangible)		255			104			25			467			47			—			898			137			1,035
Amortization of acquired UPR intangible - Chubb Corp		290			165			—			70			—			—			525			—			525
Administrative expenses		299			98			2			277			14			62			752			77			829

Underwriting income (loss)		333			112			14			190			37			(77	)		609			8			617
Adjusted net investment income		468			55			5			147			65			7			747			69			816
Other income (expense) - operating⁽¹⁾		9			(3	)		—			5			2			(2	)		11			(3	)		8
Amortization (expense) benefit of purchased intangibles		—			(4	)		(8	)		(13	)		—			20			(5	)		—			(5	)

Segment income (loss)	$	810		$	160		$	11		$	329		$	104		$	(52	)	$	1,362		$	74		$	1,436

Adjusted interest expense																	(166	)								(166	)
Income tax expense																	(212	)								(212	)

Operating income (loss)																	(430	)								1,058
Chubb integration and related expenses, net of $27 million tax benefit																	(71	)								(71	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $29 million tax benefit ⁽²⁾																	(66	)								(66	)
Adjusted net realized gains (losses), net of $1 million tax benefit⁽³⁾																	(195	)								(195	)

Net Income																$	(762	)							$	726

Combined ratio		89.5	%		90.1	%		95.9	%		90.9	%		79.8	%					91.2	%
Combined ratio excluding catastrophe losses and PPD		89.7	%		83.0	%		91.6	%		91.5	%		78.9	%					89.9	%
Underwriting income (loss) - As If	$	379		$	141		$	14		$	181		$	37		$	(77	)	$	675		$	8		$	683
Combined ratio - As If		88.0	%		87.6	%		95.9	%		91.3	%		79.8	%					90.2	%
Combined ratio excluding catastrophe losses and PPD - As If		88.3	%		80.5	%		91.6	%		92.0	%		78.9	%					88.9	%

(1)	For the Life Insurance segment, (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).

(2)	Related to the acquisition of The Chubb Corporation.

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


Consol Results - QTD 2016		Page 9

Chubb Limited

Consolidated Results - Six months ended June 30, 2016

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

(Unaudited)


	North			North			North
	America			America			America			Overseas
	Commercial P&C			Personal P&C			Agricultural			General			Global						Total			Life			Total
YTD 2016	Insurance			Insurance			Insurance			Insurance			Reinsurance			Corporate			P&C			Insurance			Consolidated
Net premiums written	$	5,547		$	2,102		$	439		$	4,072		$	431		$	—		$	12,591		$	1,043		$	13,634
Net premiums earned		6,044			2,164			350			4,048			387			—			12,993			1,009			14,002
Adjusted losses and loss expenses		3,718			1,322			256			2,110			176			24			7,606			324			7,930
Policy benefits		—			—			—			—			—			—			—			272			272
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			—			—
Policy acquisition costs (excluding amortization of acquired UPR intangible)		422			172			29			896			100			—			1,619			259			1,878
Amortization of acquired UPR intangible - Chubb Corp		605			346			—			144			—			—			1,095			—			1,095
Administrative expenses		565			186			(2	)		540			28			135			1,452			149			1,601

Underwriting income (loss)		734			138			67			358			83			(159	)		1,221			5			1,226
Adjusted net investment income		894			102			10			293			132			16			1,447			136			1,583
Other income (expense) - operating⁽¹⁾		9			(4	)		—			10			3			(4	)		14			(6	)		8
Amortization (expense) benefit of purchased intangibles		—			(12	)		(15	)		(24	)		—			40			(11	)		(1	)		(12	)

Segment income (loss)	$	1,637		$	224		$	62		$	637		$	218		$	(107	)	$	2,671		$	134		$	2,805

Adjusted interest expense																	(315	)								(315	)
Income tax expense																	(413	)								(413	)

Operating income (loss)																	(835	)								2,077
Chubb integration and related expenses, net of $76 million tax benefit																	(177	)								(177	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $53 million tax benefit ⁽²⁾																	(125	)								(125	)
Adjusted net realized gains (losses), net of $5 million tax benefit⁽³⁾																	(610	)								(610	)

Net Income																$	(1,747	)							$	1,165

Combined ratio		87.9	%		93.6	%		81.0	%		91.1	%		78.5	%					90.6	%
Combined ratio excluding catastrophe losses and PPD		89.6	%		82.8	%		89.7	%		91.8	%		78.7	%					89.9	%
Underwriting income (loss) - As If	$	839		$	228		$	67		$	340		$	83		$	(162	)	$	1,395		$	5		$	1,400
Combined ratio - As If		86.6	%		89.9	%		81.0	%		91.7	%		78.5	%					89.6	%
Combined ratio excluding catastrophe losses and PPD - As If		88.3	%		79.6	%		89.7	%		92.3	%		78.7	%					88.9	%

(1)	For the Life Insurance segment, (gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified for underwriting income presentation from Other income (expense).

(2)	Related to the acquisition of The Chubb Corporation.

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


Consol Results - YTD 2016		Page 10

Chubb Limited

Global P&C Underwriting Results - Consecutive Quarters

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

(Unaudited)

Global P&C includes the company’s North America Commercial P&C Insurance segment (refer to page 12), North America Personal P&C Insurance segment (refer to page 13), Overseas General Insurance segment (refer to page 15), Global Reinsurance segment (refer to page 17), and Corporate (refer to page 19). Global P&C excludes the North America Agricultural Insurance and Life Insurance segments.


																YTD			YTD			Full Year
Global P&C (Including Corporate and excluding Agriculture)	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
Global P&C Underwriting Income
Gross premiums written	$	8,179		$	7,684		$	7,994		$	7,681		$	8,172		$	15,863		$	14,879		$	30,554
Net premiums written		6,655			6,125			6,349			6,192			6,737			12,780			12,152			24,693
Net premiums earned		6,378			6,252			6,378			6,357			6,566			12,630			12,643			25,378
Adjusted losses and loss expenses		3,674			3,669			3,757			3,412			3,823			7,343			7,350			14,519
Policy acquisition costs (excluding amortization of acquired UPR intangible)		1,292			1,284			1,144			1,019			873			2,576			1,590			3,753
Amortization of acquired UPR intangible - Chubb Corp		—			—			144			320			525			—			1,095			1,559
Adjusted administrative expenses		627			609			722			694			750			1,236			1,454			2,870

Global P&C Underwriting income	$	785		$	690		$	611		$	912		$	595		$	1,475		$	1,154		$	2,677

Global P&C Underwriting income - As If							$	628		$	951		$	661					$	1,328		$	2,907
% Change versus prior year period
Net premiums written		-1.2	%		13.1	%		82.0	%		78.0	%		72.5	%		5.2	%		64.2	%		71.8	%
Net premiums earned		-2.9	%		2.9	%		84.3	%		81.6	%		84.8	%		-0.1	%		82.2	%		82.6	%
Net premiums written constant $		-0.6	%		13.7	%		83.1	%		80.3	%		75.7	%		5.8	%		70.1	%		75.8	%
Net premiums earned constant $		-2.3	%		3.0	%		85.3	%		83.8	%		88.4	%		0.2	%		88.4	%		86.4	%
% Change versus prior year period - As If *
Net premiums written		-1.2	%		-2.3	%		-2.8	%		-6.7	%		-6.5	%		-1.7	%		-5.9	%		-5.3	%
Net premiums written constant $		-0.6	%		-1.9	%		-2.0	%		-5.5	%		-4.9	%		-1.2	%		-3.1	%		-3.4	%
Net premiums written constant $ excluding merger-related underwriting actions & accounting policy alignment ⁽¹⁾		2.4	%		2.3	%		1.2	%		-0.5	%		-3.6	%		2.3	%		-2.2	%		-1.0	%
Combined ratio
Loss and loss expense ratio		57.6	%		58.7	%		58.9	%		53.7	%		58.2	%		58.1	%		58.1	%		57.2	%
Policy acquisition cost ratio		20.3	%		20.5	%		20.2	%		21.1	%		21.3	%		20.4	%		21.2	%		20.9	%
Administrative expense ratio		9.8	%		9.8	%		11.3	%		10.9	%		11.4	%		9.8	%		11.6	%		11.4	%

Combined ratio		87.7	%		89.0	%		90.4	%		85.7	%		90.9	%		88.3	%		90.9	%		89.5	%

Combined ratio excluding catastrophe losses and PPD		87.4	%		88.2	%		89.7	%		88.8	%		89.8	%		87.8	%		89.9	%		89.5	%
Combined ratio - As If
Loss and loss expense ratio - As If								58.9	%		53.7	%		58.2	%					58.1	%		57.2	%
Policy acquisition cost ratio - As If								20.0	%		20.4	%		20.3	%					20.1	%		20.1	%
Administrative expense ratio - As If								11.3	%		10.9	%		11.4	%					11.6	%		11.4	%

Combined ratio - As If								90.2	%		85.0	%		89.9	%					89.8	%		88.7	%

Combined ratio excluding catastrophe losses and PPD - As If								89.4	%		88.2	%		88.8	%					88.8	%		88.8	%
Other ratios
Net premiums written/gross premiums written		81	%		80	%		79	%		81	%		82	%		81	%		82	%		81	%
Expense ratio		30.1	%		30.3	%		31.5	%		32.0	%		32.7	%		30.2	%		32.8	%		32.3	%
Expense ratio excluding A&H		28.2	%		28.1	%		29.5	%		30.0	%		31.0	%		28.2	%		31.0	%		30.4	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	—		$	—		$	1		$	—		$	6		$	—		$	6		$	7
Catastrophe losses - pre-tax	$	192		$	201		$	267		$	143		$	382		$	393		$	638		$	1,048
Favorable prior period development (PPD) - pre-tax	$	(170	)	$	(152	)	$	(218	)	$	(338	)	$	(301	)	$	(322	)	$	(507	)	$	(1,063	)
Loss and loss expense ratio excluding catastrophe losses and PPD		57.3	%		57.9	%		58.2	%		56.9	%		57.1	%		57.6	%		57.2	%		57.4	%

(1)	Net premiums written were adversely impacted by merger-related underwriting actions of $198 million in Q2 2017 and $385 million for YTD 2017, and by accounting policy alignment of $73 million for YTD 2017.

*	Comparisons to 2015 are as if ACE and Chubb were one company.


Global P&C		Page 11

Chubb Limited

Segment Results - Consecutive Quarters

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

(Unaudited)

North America Commercial P&C Insurance


																YTD			YTD			Full Year
	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
Gross premiums written	$	4,078		$	3,665		$	4,109		$	3,832		$	4,041		$	7,743		$	7,045		$	14,986
Net premiums written		3,204			2,742			3,083			3,110			3,245			5,946			5,547			11,740
Net premiums earned		3,099			3,041			3,087			3,086			3,148			6,140			6,044			12,217
Losses and loss expenses		1,936			1,860			1,858			1,863			1,971			3,796			3,718			7,439
Policy acquisition costs (excluding amortization of acquired UPR intangible)		464			487			396			346			255			951			422			1,164
Amortization of acquired UPR intangible - Chubb Corp		—			—			78			176			290			—			605			859
Administrative expenses		241			231			285			275			299			472			565			1,125

Underwriting income		458			463			470			426			333			921			734			1,630
Net investment income		490			478			489			477			468			968			894			1,860
Other income (expense) - operating		4			(4	)		(4	)		(3	)		9			—			9			2

Segment income	$	952		$	937		$	955		$	900		$	810		$	1,889		$	1,637		$	3,492

Underwriting income - As If							$	482		$	452		$	379					$	839		$	1,773
Combined ratio
Loss and loss expense ratio		62.5	%		61.2	%		60.2	%		60.4	%		62.6	%		61.8	%		61.5	%		60.9	%
Policy acquisition cost ratio		15.0	%		16.0	%		15.3	%		16.9	%		17.3	%		15.5	%		17.0	%		16.6	%
Administrative expense ratio		7.7	%		7.6	%		9.3	%		8.9	%		9.6	%		7.7	%		9.4	%		9.2	%

Combined ratio		85.2	%		84.8	%		84.8	%		86.2	%		89.5	%		85.0	%		87.9	%		86.7	%

Combined ratio excluding catastrophe losses and PPD		86.1	%		87.9	%		88.9	%		89.4	%		89.7	%		87.0	%		89.6	%		89.4	%
Combined ratio - As If
Loss and loss expense ratio - As If								60.2	%		60.4	%		62.6	%					61.5	%		60.9	%
Policy acquisition cost ratio - As If								14.9	%		16.0	%		15.8	%					15.5	%		15.5	%
Administrative expense ratio - As If								9.3	%		8.9	%		9.6	%					9.6	%		9.3	%

Combined ratio - As If								84.4	%		85.3	%		88.0	%					86.6	%		85.7	%

Combined ratio excluding catastrophe losses and PPD - As If								88.5	%		88.6	%		88.3	%					88.3	%		88.4	%
Catastrophe losses - pre-tax	$	102		$	83		$	117		$	90		$	160		$	185		$	241		$	448
Favorable prior period development (PPD) - pre-tax	$	(131	)	$	(179	)	$	(245	)	$	(187	)	$	(168	)	$	(310	)	$	(346	)	$	(778	)
Loss and loss expense ratio excluding catastrophe losses and PPD		63.4	%		64.4	%		64.4	%		63.8	%		62.9	%		63.9	%		63.3	%		63.7	%
% Change versus prior year period
Net premiums written		-1.3	%		19.1	%		97.9	%		117.1	%		127.4	%		7.2	%		103.6	%		105.4	%
Net premiums earned		-1.6	%		5.0	%		116.6	%		119.1	%		121.8	%		1.6	%		115.9	%		116.9	%
% Change versus prior year period - As If *
Net premiums written		-1.3	%		-2.8	%		-5.1	%		-2.4	%		-0.2	%		-2.0	%		-1.9	%		-2.8	%
Net premiums written excluding merger-related underwriting actions ⁽¹⁾		1.3	%		0.2	%		-2.5	%		0.0	%		1.6	%		0.8	%		-0.5	%		-0.9	%
Other ratios
Net premiums written/gross premiums written		79	%		75	%		75	%		81	%		80	%		77	%		79	%		78	%
Production by Size
Net Premiums Written
Major account & specialty⁽²⁾	$	1,959		$	1,568		$	1,880		$	1,841		$	1,956		$	3,527		$	3,428		$	7,149
Commercial ⁽²⁾		1,245			1,174			1,203			1,269			1,289			2,419			2,119			4,591

Total	$	3,204		$	2,742		$	3,083		$	3,110		$	3,245		$	5,946		$	5,547		$	11,740

(1)	Net premiums written were adversely impacted by merger-related underwriting actions of $84 million in Q2 2017 and $168 million for YTD 2017.

(2)	Major account & specialty principally large corporate accounts and wholesale business. Commercial principally middle market and small commercial accounts.

*	Comparisons to 2015 are as if ACE and Chubb were one company.


NA Commercial		Page 12

Chubb Limited

Segment Results - Consecutive Quarters

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

(Unaudited)


North America Personal P&C Insurance	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			YTD 2017			YTD 2016			Full Year 2016
Gross premiums written	$	1,409		$	1,145		$	1,228		$	1,323		$	1,369		$	2,554		$	2,343		$	4,894
Net premiums written		1,255			984			1,040			1,011			1,231			2,239			2,102			4,153
Net premiums earned		1,093			1,086			1,074			1,081			1,140			2,179			2,164			4,319
Losses and loss expenses		683			633			642			594			661			1,316			1,322			2,558
Policy acquisition costs (excluding amortization of acquired UPR intangible)		230			217			174			128			104			447			172			474
Amortization of acquired UPR intangible - Chubb Corp		—			—			45			101			165			—			346			492
Administrative expenses		66			65			88			89			98			131			186			363

Underwriting income		114			171			125			169			112			285			138			432
Net investment income		56			55			52			53			55			111			102			207
Other expense - operating		(1	)		(1	)		—			(2	)		(3	)		(2	)		(4	)		(6	)
Amortization expense of purchased intangibles		(5	)		(3	)		(3	)		(4	)		(4	)		(8	)		(12	)		(19	)

Segment income	$	164		$	222		$	174		$	216		$	160		$	386		$	224		$	614

Underwriting income - As If							$	133		$	187		$	141					$	228		$	548
Combined ratio
Loss and loss expense ratio		62.4	%		58.3	%		59.7	%		54.9	%		58.0	%		60.4	%		61.1	%		59.2	%
Policy acquisition cost ratio		21.1	%		20.0	%		20.4	%		21.2	%		23.6	%		20.5	%		23.9	%		22.4	%
Administrative expense ratio		6.1	%		5.9	%		8.2	%		8.3	%		8.5	%		6.0	%		8.6	%		8.4	%

Combined ratio		89.6	%		84.2	%		88.3	%		84.4	%		90.1	%		86.9	%		93.6	%		90.0	%

Combined ratio excluding catastrophe losses and PPD		79.3	%		78.3	%		82.9	%		78.8	%		83.0	%		78.8	%		82.8	%		81.8	%
Combined ratio - As If
Loss and loss expense ratio - As If								59.7	%		54.9	%		58.0	%					60.4	%		58.9	%
Policy acquisition cost ratio - As If								19.7	%		19.6	%		21.1	%					20.8	%		20.2	%
Administrative expense ratio - As If								8.2	%		8.3	%		8.5	%					8.7	%		8.5	%

Combined ratio - As If								87.6	%		82.8	%		87.6	%					89.9	%		87.6	%

Combined ratio excluding catastrophe losses and PPD - As If								82.1	%		77.2	%		80.5	%					79.6	%		79.6	%
Catastrophe losses - pre-tax	$	77		$	68		$	51		$	22		$	97		$	145		$	253		$	326
Unfavorable (favorable) prior period development (PPD) - pre-tax	$	37		$	(3	)	$	7		$	38		$	(15	)	$	34		$	(18	)	$	27
Loss and loss expense ratio excluding catastrophe losses and PPD		52.1	%		52.4	%		54.3	%		49.3	%		50.9	%		52.2	%		50.3	%		51.0	%
% Change versus prior year period
Net premiums written		2.0	%		13.0	%		344.7	%		263.4	%		125.1	%		6.5	%		209.2	%		248.4	%
Net premiums earned		-4.0	%		6.0	%		311.9	%		296.3	%		322.4	%		0.7	%		422.0	%		355.5	%
% Change versus prior year period - As If *
Net premiums written		2.0	%		1.3	%		-4.8	%		-16.4	%		-20.6	%		1.7	%		-10.5	%		-10.7	%
Net premiums written excluding merger-related underwriting actions ⁽¹⁾		8.0	%		6.6	%		1.8	%		0.1	%		-20.6	%		7.4	%		-10.5	%		1.5	%
Other ratios
Net premiums written/gross premiums written		89	%		86	%		85	%		76	%		90	%		88	%		90	%		85	%

(1)	Net premiums written were adversely impacted by merger-related underwriting actions of $75 million in Q2 2017 and $126 million for YTD 2017.

*	Comparisons to 2015 are as if ACE and Chubb were one company.


NA Personal		Page 13

Chubb Limited

Segment Results - Consecutive Quarters

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

(Unaudited)


North America Agricultural Insurance	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			YTD 2017			YTD 2016			Full Year 2016
Gross premiums written	$	569		$	167		$	266		$	1,240		$	545		$	736		$	681		$	2,187
Net premiums written		403			61			40			849			375			464			439			1,328
Net premiums earned		344			14			147			819			327			358			350			1,316
Adjusted losses and loss expenses ⁽¹⁾		292			(73	)		(38	)		680			286			219			256			898
Policy acquisition costs		27			(1	)		6			48			25			26			29			83
Administrative expenses		2			(5	)		(5	)		1			2			(3	)		(2	)		(6	)

Underwriting income		23			93			184			90			14			116			67			341
Net investment income		6			6			5			5			5			12			10			20
Other expense - operating		(1	)		—			(1	)		—			—			(1	)		—			(1	)
Amortization expense of purchased intangibles		(7	)		(7	)		(7	)		(7	)		(8	)		(14	)		(15	)		(29	)

Segment income	$	21		$	92		$	181		$	88		$	11		$	113		$	62		$	331

Combined ratio
Loss and loss expense ratio		85.2	%		NM			-26.0	%		83.0	%		87.5	%		61.3	%		73.3	%		68.3	%
Policy acquisition cost ratio		7.7	%		NM			3.9	%		5.9	%		7.7	%		7.2	%		8.2	%		6.3	%
Administrative expense ratio		0.4	%		NM			-3.3	%		0.0	%		0.7	%		-0.8	%		-0.5	%		-0.5	%

Combined ratio		93.3	%		NM			-25.4	%		88.9	%		95.9	%		67.7	%		81.0	%		74.1	%

Combined ratio excluding catastrophe losses and PPD		91.1	%		74.6	%		-10.9	%		90.1	%		91.6	%		88.2	%		89.7	%		78.9	%
Catastrophe losses - pre-tax	$	8		$	5		$	2		$	1		$	14		$	13		$	16		$	19
Favorable prior period development (PPD) - pre-tax	$	—		$	(79	)	$	(20	)	$	(11	)	$	—		$	(79	)	$	(41	)	$	(72	)
Loss and loss expense ratio excluding catastrophe losses and PPD		83.0	%		75.8	%		-16.9	%		84.2	%		83.3	%		81.7	%		81.8	%		72.4	%
% Change versus prior year period
Net premiums written		7.7	%		-4.6	%		-71.6	%		15.2	%		-1.2	%		5.9	%		-6.1	%		-1.3	%
Net premiums earned		5.4	%		-41.6	%		-39.1	%		10.9	%		1.6	%		2.3	%		-9.3	%		-3.6	%
Other ratios
Net premiums written/gross premiums written		71	%		37	%		15	%		68	%		69	%		63	%		64	%		61	%

(1)	Includes realized gains/losses on crop derivatives.


NA Agriculture		Page 14

Chubb Limited

Segment Results - Consecutive Quarters

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

(Unaudited)


Overseas General Insurance	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			YTD 2017			YTD 2016			Full Year 2016
Gross premiums written	$	2,464		$	2,662		$	2,542		$	2,383		$	2,494		$	5,126		$	5,010		$	9,935
Net premiums written		2,006			2,200			2,112			1,940			2,031			4,206			4,072			8,124
Net premiums earned		2,018			1,936			2,050			2,034			2,093			3,954			4,048			8,132
Losses and loss expenses		964			1,071			1,052			843			1,089			2,035			2,110			4,005
Policy acquisition costs (excluding amortization of acquired UPR intangible)		555			529			529			503			467			1,084			896			1,928
Amortization of acquired UPR intangible - Chubb Corp		—			—			21			43			70			—			144			208
Administrative expenses		243			245			256			261			277			488			540			1,057

Underwriting income		256			91			192			384			190			347			358			934
Net investment income		148			148			155			152			147			296			293			600
Other income (expense) - operating		3			1			(5	)		6			5			4			10			11
Amortization expense of purchased intangibles		(11	)		(11	)		(12	)		(12	)		(13	)		(22	)		(24	)		(48	)

Segment income	$	396		$	229		$	330		$	530		$	329		$	625		$	637		$	1,497

Underwriting income - As If							$	189		$	379		$	181					$	340		$	908
Combined ratio
Loss and loss expense ratio		47.8	%		55.3	%		51.3	%		41.5	%		52.1	%		51.5	%		52.1	%		49.3	%
Policy acquisition cost ratio		27.5	%		27.3	%		26.9	%		26.8	%		25.6	%		27.4	%		25.7	%		26.3	%
Administrative expense ratio		12.0	%		12.7	%		12.4	%		12.9	%		13.2	%		12.3	%		13.3	%		12.9	%

Combined ratio		87.3	%		95.3	%		90.6	%		81.2	%		90.9	%		91.2	%		91.1	%		88.5	%

Combined ratio excluding catastrophe losses and PPD		91.2	%		92.1	%		91.2	%		91.1	%		91.5	%		91.6	%		91.8	%		91.5	%
Combined ratio - As If
Loss and loss expense ratio - As If								51.3	%		41.5	%		52.1	%					52.2	%		49.3	%
Policy acquisition cost ratio - As If								27.1	%		27.0	%		26.0	%					26.1	%		26.6	%
Administrative expense ratio - As If								12.4	%		12.9	%		13.2	%					13.4	%		13.0	%

Combined ratio - As If								90.8	%		81.4	%		91.3	%					91.7	%		88.9	%

Combined ratio excluding catastrophe losses and PPD - As If								91.4	%		91.3	%		92.0	%					92.3	%		91.9	%
Catastrophe reinstatement premiums expensed - pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe losses - pre-tax	$	10		$	50		$	72		$	20		$	73		$	60		$	91		$	183
Unfavorable (favorable) prior period development (PPD) - pre-tax	$	(88	)	$	12		$	(85	)	$	(223	)	$	(85	)	$	(76	)	$	(115	)	$	(423	)
Loss and loss expense ratio excluding catastrophe losses and PPD		51.6	%		52.1	%		51.9	%		51.4	%		52.7	%		51.9	%		52.8	%		52.2	%
% Change versus prior year period
Net premiums written		-1.2	%		7.8	%		33.2	%		22.5	%		21.6	%		3.3	%		17.6	%		22.5	%
Net premiums earned		-3.6	%		-0.9	%		30.2	%		26.0	%		27.3	%		-2.3	%		23.4	%		25.7	%
Net premiums written constant $		0.3	%		9.4	%		34.7	%		25.8	%		26.7	%		4.9	%		26.4	%		28.3	%
Net premiums earned constant $		-2.3	%		-0.3	%		31.4	%		29.0	%		32.4	%		-1.3	%		31.9	%		31.0	%
% Change versus prior year period - As If *
Net premiums written		-1.2	%		-2.5	%		1.6	%		-5.7	%		-5.0	%		-1.9	%		-7.1	%		-4.7	%
Net premiums written constant $		0.3	%		-1.2	%		4.0	%		-1.7	%		0.5	%		-0.5	%		1.1	%		1.2	%
Net premiums written constant $ excluding merger-related underwriting actions & accounting policy alignment ⁽¹⁾		2.3	%		4.2	%		6.5	%		0.7	%		1.4	%		3.2	%		1.7	%		2.6	%
Other ratios
Net premiums written/gross premiums written		81	%		83	%		83	%		81	%		81	%		82	%		81	%		82	%

(1)	Net premiums written were adversely impacted by merger-related underwriting actions of $39 million in Q2 2017 and $81 million for YTD 2017, and by accounting policy alignment of $73 million for YTD 2017.

*	Comparisons to 2015 are as if ACE and Chubb were one company.


Overseas General Insurance		Page 15

Chubb Limited

Segment Results

(in millions of U.S. dollars)

(Unaudited)

Overseas General Insurance - Production by Region


	2Q-17		2Q-16		% Change			Constant $ 2Q-16 ⁽¹⁾		C$ % Change ex Merger Actions ⁽²⁾			YTD-17		YTD-16		% Change			Constant $ As If YTD-16 ⁽¹⁾		C$ % Change As If ex Merger Actions & Acct Policy ⁽²⁾
Gross premiums written
Europe	$	1,006	$	1,084		-7.2	%	$	1,030		-0.9	%	$	2,323	$	2,287		1.6	%	$	2,365		0.1	%
Latin America		632		607		4.1	%		631		6.6	%		1,239		1,198		3.4	%		1,255		4.5	%
Asia		754		718		5.0	%		716		3.3	%		1,408		1,352		4.1	%		1,389		4.0	%
Other⁽³⁾		72		85		-15.3	%		84		-14.3	%		156		173		-9.8	%		171		-8.8	%

Total	$	2,464	$	2,494		-1.2	%	$	2,461		1.6	%	$	5,126	$	5,010		2.3	%	$	5,180		1.8	%

Net premiums written
Europe	$	726	$	807		-10.0	%	$	763		-2.9	%	$	1,756	$	1,706		2.9	%	$	1,791		0.5	%
Latin America		508		483		5.2	%		502		9.4	%		1,005		965		4.1	%		1,006		7.2	%
Asia		673		641		5.0	%		639		3.4	%		1,250		1,211		3.2	%		1,244		4.0	%
Other⁽³⁾		99		100		-1.0	%		95		4.2	%		195		190		2.6	%		184		6.0	%

Total	$	2,006	$	2,031		-1.2	%	$	1,999		2.3	%	$	4,206	$	4,072		3.3	%	$	4,225		3.2	%

(1)	Prior periods on a constant dollar basis

(2)

Gross premiums written and net premiums written premiums were adversely impacted by merger-related underwriting actions of $37 million and $39 million, respectively, in Q2 2017, and by $74 million and $81 million, respectively, for YTD 2017. Additionally, accounting policy alignment adversely impacted YTD 2017 gross premiums written and net premiums written by $73 million each.

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


Overseas General Ins. – Region		Page 16

Chubb Limited

Segment Results - Consecutive Quarters

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

(Unaudited)


Global Reinsurance	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			YTD 2017			YTD 2016			Full Year 2016
Gross premiums written	$	228		$	212		$	115		$	143		$	268		$	440		$	481		$	739
Net premiums written		190			199			114			131			230			389			431			676
Net premiums earned		168			189			167			156			185			357			387			710
Losses and loss expenses		46			94			100			49			87			140			176			325
Policy acquisition costs		43			51			45			42			47			94			100			187
Administrative expenses		12			10			12			12			14			22			28			52

Underwriting income ⁽¹⁾		67			34			10			53			37			101			83			146
Net investment income		65			62			64			67			65			127			132			263
Other income (expense) - operating		(1	)		—			1			—			2			(1	)		3			4

Segment income	$	131		$	96		$	75		$	120		$	104		$	227		$	218		$	413

Combined ratio
Loss and loss expense ratio		27.8	%		49.6	%		59.7	%		31.3	%		46.9	%		39.3	%		45.5	%		45.7	%
Policy acquisition cost ratio		25.7	%		26.8	%		26.6	%		27.1	%		25.5	%		26.3	%		25.9	%		26.3	%
Administrative expense ratio		6.7	%		5.7	%		7.7	%		7.9	%		7.4	%		6.2	%		7.1	%		7.5	%

Combined ratio ⁽¹⁾		60.2	%		82.1	%		94.0	%		66.3	%		79.8	%		71.8	%		78.5	%		79.5	%

Combined ratio excluding catastrophe losses and PPD ⁽¹⁾		77.0	%		77.0	%		78.8	%		78.1	%		78.9	%		77.0	%		78.7	%		78.6	%
Catastrophe reinstatement premiums collected - pre-tax	$	—		$	—		$	1		$	—		$	6		$	—		$	6		$	7
Catastrophe losses - pre-tax	$	3		$	—		$	27		$	11		$	52		$	3		$	53		$	91
Unfavorable (favorable) prior period development (PPD) - pre-tax ⁽²⁾	$	(31	)	$	8		$	—		$	(28	)	$	(47	)	$	(23	)	$	(50	)	$	(78	)
Loss and loss expense ratio excluding catastrophe losses and PPD		44.4	%		43.2	%		44.2	%		44.2	%		46.0	%		43.8	%		45.8	%		45.0	%
% Change versus prior year period
Net premiums written as reported		-17.7	%		-0.9	%		4.0	%		-29.4	%		-11.9	%		-9.9	%		-19.3	%		-18.4	%
Net premiums earned as reported		-9.6	%		-6.4	%		-16.9	%		-23.5	%		-15.7	%		-7.9	%		-13.2	%		-16.5	%
Net premiums written constant $		-16.5	%		0.2	%		6.5	%		-28.1	%		-11.6	%		-8.7	%		-18.2	%		-17.1	%
Net premiums earned constant $		-8.1	%		-5.5	%		-15.6	%		-22.2	%		-15.0	%		-6.7	%		-12.1	%		-15.3	%
% Change versus prior year period - As If *
Net premiums written		-17.7	%		-9.8	%		3.0	%		-29.8	%		-13.3	%		-13.8	%		-19.5	%		-18.8	%
Net premiums written constant $		-16.5	%		-8.9	%		5.5	%		-28.5	%		-13.0	%		-12.7	%		-18.4	%		-17.5	%
Net premiums written constant $ excluding merger-related underwriting actions ⁽³⁾		-16.5	%		-4.3	%		5.5	%		-25.0	%		-9.2	%		-10.5	%		-16.6	%		-15.6	%
Other ratios
Net premiums written/gross premiums written		83	%		94	%		99	%		91	%		86	%		88	%		90	%		91	%

(1)	Underwriting income, Combined ratio, and Combined ratio excluding catastrophe losses and PPD on an “As If” basis are the same as those presented above.

(2)	For YTD 2017, unfavorable prior period development is net of $7 million of net earned premium adjustments.

(3)	Net premiums written were adversely impacted by merger-related underwriting actions of $10 million for YTD 2017.

*	Comparisons to 2015 are as if ACE and Chubb were one company.


Global Reinsurance		Page 17

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)


Life Insurance	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			YTD 2017			YTD 2016			Full Year 2016
Gross premiums written	$	557		$	550		$	577		$	562		$	557		$	1,107		$	1,103		$	2,242
Net premiums written		523			524			549			532			527			1,047			1,043			2,124
Net premiums earned		515			506			534			512			512			1,021			1,009			2,055
Losses and loss expenses		182			193			165			174			147			375			324			663
Policy benefits ⁽¹⁾		163			168			161			155			146			331			272			588
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		(16	)		(30	)		11			(22	)		(3	)		(46	)		—			(11	)
Policy acquisition costs		130			114			123			127			137			244			259			509
Administrative expenses		77			72			81			77			77			149			149			307
Net investment income		77			75			76			71			69			152			136			283

Life Insurance underwriting income^(2) (3)		56			64			69			72			77			120			141			282
Other expense - operating		(4	)		(1	)		(8	)		(2	)		(3	)		(5	)		(6	)		(16	)
Amortization expense of purchased intangibles		—			(1	)		(1	)		(1	)		—			(1	)		(1	)		(3	)

Segment income	$	52		$	62		$	60		$	69		$	74		$	114		$	134		$	263

% Change versus prior year period
Net premiums written		-0.7	%		1.6	%		6.5	%		8.1	%		5.5	%		0.4	%		5.3	%		6.3	%
Net premiums earned		0.8	%		1.6	%		5.7	%		6.7	%		5.1	%		1.2	%		5.0	%		5.6	%
Net premiums written constant $		-1.0	%		0.9	%		6.9	%		9.1	%		8.2	%		-0.1	%		9.1	%		8.5	%
Net premiums earned constant $		0.5	%		0.7	%		6.0	%		7.6	%		7.8	%		0.6	%		8.8	%		7.8	%
% Change versus prior year period - As If *
Net premiums written		-0.7	%		1.3	%		2.1	%		3.4	%		0.7	%		0.3	%		0.0	%		1.6	%
Net premiums written constant $		-1.0	%		0.6	%		2.4	%		4.3	%		3.5	%		-0.2	%		4.0	%		3.7	%
Net premiums written constant $ excluding merger-related underwriting actions ⁽⁴⁾		0.5	%		3.7	%											2.1	%

(1)

(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified from Other income (expense) for purposes of presenting Life Insurance underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.

(2)	We assess the performance of our Life Insurance business based on Life Insurance underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets.

(3)	Life Insurance underwriting Income on an “As If” basis is the same as reported Life Insurance underwriting income shown above.

(4)	Net premiums written were adversely impacted by merger-related underwriting actions of $8 million in Q2 2017 and $24 million for YTD 2017.

International life insurance net premiums written and deposits breakdown (excludes Combined North America and Life reinsurance businesses):


	2Q-17		Constant $ 2Q-16 ⁽⁶⁾		Constant $ % Change 2Q-17 vs. 2Q-16 ⁽⁶⁾			YTD-17		Constant $ YTD-16 ⁽⁶⁾		Constant $ % Change YTD-17 vs. YTD-16 ⁽⁶⁾
International life insurance net premiums written	$	199	$	207		-3.5	%	$	397	$	410		-3.2	%
International life insurance deposits ⁽⁵⁾		316		270		16.8	%		626		488		28.3	%

Total international life insurance net premiums written and deposits	$	515	$	477		8.0	%	$	1,023	$	898		13.9	%

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

(6)	Prior periods on a constant dollar basis.

*	Comparisons to 2015 are as if ACE and Chubb were one company.


Life Insurance		Page 18

Chubb Limited

Segment Results - Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)


Corporate	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			YTD 2017			YTD 2016			Full Year 2016
Gross premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net premiums written		—			—			—			—			—			—			—			—
Net premiums earned		—			—			—			—			—			—			—			—
Adjusted losses and loss expenses ⁽¹⁾		45			11			105			63			15			56			24			192
Policy acquisition costs		—			—			—			—			—			—			—			—
Adjusted administrative expenses ⁽¹⁾		65			58			81			57			62			123			135			273

Underwriting loss		(110	)		(69	)		(186	)		(120	)		(77	)		(179	)		(159	)		(465	)
Adjusted net investment income		13			12			4			5			7			25			16			25
Other expense - operating		(14	)		(7	)		(4	)		(2	)		(2	)		(21	)		(4	)		(10	)
Adjusted interest expense⁽¹⁾		(160	)		(166	)		(167	)		(164	)		(166	)		(326	)		(315	)		(646	)
Amortization (expense) benefit of purchased intangibles ⁽²⁾		(42	)		(42	)		20			20			20			(84	)		40			80
Pension curtailment benefit⁽¹⁾		—			—			113			—			—			—			—			113
Income tax expense		(223	)		(191	)		(272	)		(306	)		(212	)		(414	)		(413	)		(991	)

Operating loss		(536	)		(463	)		(492	)		(567	)		(430	)		(999	)		(835	)		(1,894	)
Chubb integration and related expenses, net of tax		(50	)		(74	)		(94	)		(85	)		(71	)		(124	)		(177	)		(356	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(52	)		(55	)		(66	)		(53	)		(66	)		(107	)		(125	)		(244	)
Adjusted net realized gains (losses), net of tax⁽³⁾		227			47			487			142			(195	)		274			(610	)		19

Net loss	$	(411	)	$	(545	)	$	(165	)	$	(563	)	$	(762	)	$	(956	)	$	(1,747	)	$	(2,475	)

Unfavorable prior period development (PPD) - pre-tax	$	43		$	10		$	105		$	62		$	14		$	53		$	22		$	189
Underwriting loss - As If							$	(186	)	$	(120	)	$	(77	)				$	(162	)	$	(468	)

(1)	See non-GAAP financial measures.

(2)	Related to the acquisition of The Chubb Corporation.

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


Corporate		Page 19

Chubb Limited

Loss Reserve Rollforward

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

(Unaudited)


	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2015	$	37,303		$	10,741		$	26,562
Losses and loss expenses incurred		4,663			989			3,674
Losses and loss expenses paid		(4,692	)		(1,143	)		(3,549	)		97	%
Acquired reserve (Legacy Chubb)		22,878			1,515			21,363
Other (incl. foreign exch. revaluation)		54			25			29

Balance at March 31, 2016	$	60,206		$	12,127		$	48,079
Losses and loss expenses incurred		5,239			985			4,254
Losses and loss expenses paid		(4,708	)		(752	)		(3,956	)		93	%
Other (incl. foreign exch. revaluation)		82			36			46

Balance at June 30, 2016	$	60,819		$	12,396		$	48,423
Losses and loss expenses incurred		5,335			1,066			4,269
Losses and loss expenses paid		(4,612	)		(782	)		(3,830	)		90	%
Other (incl. foreign exch. revaluation)		(195	)		(4	)		(191	)

Balance at September 30, 2016	$	61,347		$	12,676		$	48,671
Losses and loss expenses incurred		4,960			1,105			3,855
Losses and loss expenses paid		(5,425	)		(1,045	)		(4,380	)		114	%
Other (incl. foreign exch. revaluation)		(342	)		(28	)		(314	)

Balance at December 31, 2016	$	60,540		$	12,708		$	47,832
Losses and loss expenses incurred		4,752			963			3,789
Losses and loss expenses paid		(4,830	)		(923	)		(3,907	)		103	%
Other (incl. foreign exch. revaluation)		117			63			54

Balance at March 31, 2017	$	60,579		$	12,811		$	47,768
Losses and loss expenses incurred		5,016			870			4,146
Losses and loss expenses paid		(5,356	)		(1,234	)		(4,122	)		99	%
Other (incl. foreign exch. revaluation)		155			38			117

Balance at June 30, 2017	$	60,394		$	12,485		$	47,909
Add net recoverable on paid losses		—			873			(873	)

Balance including net recoverable on paid losses	$	60,394		$	13,358		$	47,036


Loss Reserve Rollforward		Page 20

Chubb Limited

Reinsurance Recoverable Analysis

(in millions of U.S. dollars)

(Unaudited)


Net Reinsurance Recoverable by Division
	June 30			March 31			December 31
	2017			2017			2016
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	690		$	793		$	686
Brandywine and Other Run-off		275			256			274

Total	$	965		$	1,049		$	960

Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	11,536		$	11,799		$	11,632
Brandywine and Other Run-off		1,192			1,255			1,285

Total	$	12,728		$	13,054		$	12,917

Gross reinsurance recoverable
Active operations	$	12,226		$	12,592		$	12,318
Brandywine and Other Run-off		1,467			1,511			1,559

Total	$	13,693		$	14,103		$	13,877

Provision for uncollectible reinsurance ⁽¹⁾
Active operations	$	(192	)	$	(191	)	$	(159	)
Brandywine and Other Run-off		(143	)		(143	)		(141	)

Total	$	(335	)	$	(334	)	$	(300	)

Net reinsurance recoverable
Active operations	$	12,034		$	12,401		$	12,159
Brandywine and Other Run-off		1,324			1,368			1,418

Total	$	13,358		$	13,769		$	13,577

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $3.4 billion.


Reinsurance Recoverable		Page 21

Chubb Limited

Investment Portfolio

(in millions of U.S. dollars)

(Unaudited)


	June 30					March 31					December 31
	2017					2017					2016
Market Value
Fixed maturities available for sale	$	81,645				$	80,806				$	80,115
Fixed maturities held to maturity		10,560					10,604					10,670
Short-term investments		2,651					2,780					3,002

Total fixed maturities	$	94,856				$	94,190				$	93,787

Asset Allocation by Market Value
Treasury	$	3,117		3	%	$	2,843		3	%	$	2,832		3	%
Agency		632		1	%		664		1	%		699		1	%
Corporate and asset-backed		28,064		30	%		27,582		30	%		26,944		29	%
Mortgage-backed		15,777		17	%		15,500		16	%		15,435		16	%
Municipal		22,263		23	%		22,803		24	%		22,768		24	%
Non-U.S.		22,352		23	%		22,018		23	%		22,107		24	%
Short-term investments		2,651		3	%		2,780		3	%		3,002		3	%

Total fixed maturities	$	94,856		100	%	$	94,190		100	%	$	93,787		100	%

Credit Quality by Market Value
AAA	$	15,411		16	%	$	15,523		16	%	$	15,746		17	%
AA		36,107		38	%		35,866		39	%		36,235		39	%
A		18,011		19	%		17,700		19	%		17,519		19	%
BBB		12,513		13	%		12,524		13	%		12,237		13	%
BB		7,151		8	%		7,203		8	%		6,993		7	%
B		5,390		6	%		5,087		5	%		4,814		5	%
Other		273		0	%		287		0	%		243		0	%

Total fixed maturities	$	94,856		100	%	$	94,190		100	%	$	93,787		100	%

Cost/Amortized Cost
Fixed maturities available for sale	$	80,363				$	79,957				$	79,536
Fixed maturities held to maturity		10,371					10,519					10,644
Short-term investments		2,651					2,780					3,002

Subtotal fixed maturities		93,385					93,256					93,182
Equity securities		697					699					706
Other investments		4,410					4,271					4,270

Total investment portfolio	$	98,492				$	98,226				$	98,158

Avg. duration of fixed maturities		4.2 years					4.2 years					4.2 years
Avg. market yield of fixed maturities		2.7	%				2.8	%				2.8	%
Avg. credit quality		A/Aa					A/Aa					A/Aa
Avg. yield on invested assets⁽¹⁾		3.4	%				3.4	%				3.4	%

(1)	Calculated using adjusted net investment income.


Investments		Page 22

Chubb Limited

Investment Portfolio - 2

(in millions of U.S. dollars)

(Unaudited)

Mortgage-backed Fixed Income Portfolio

Mortgage-backed securities


	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Market Value at June 30, 2017
Agency residential mortgage-backed (RMBS)	$	—	$	12,765	$	—	$	—	$	—	$	12,765
Non-agency RMBS		1		5		60		3		28		97
Commercial mortgage-backed		2,902		13		—		—		—		2,915

Total mortgage-backed securities at market value	$	2,903	$	12,783	$	60	$	3	$	28	$	15,777

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

Market Value at June 30, 2017


	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Asset-backed	$	904	$	78	$	—	$	—	$	982
Banks		—		22		1,728		1,799		3,549
Basic Materials		—		—		103		222		325
Communications		—		165		276		1,261		1,702
Consumer, Cyclical		—		224		604		690		1,518
Consumer, Non-Cyclical		112		521		1,815		1,228		3,676
Diversified Financial Services		27		15		507		202		751
Energy		—		57		81		612		750
Industrial		—		324		530		540		1,394
Utilities		—		7		1,105		446		1,558
All Others		164		442		1,010		662		2,278

Total	$	1,207	$	1,855	$	7,759	$	7,662	$	18,483

Market Value at June 30, 2017


	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total
Asset-backed	$	3	$	2	$	10	$	15
Banks		23		—		—		23
Basic Materials		236		208		3		447
Communications		890		706		4		1,600
Consumer, Cyclical		1,145		663		55		1,863
Consumer, Non-Cyclical		885		1,221		34		2,140
Diversified Financial Services		152		129		1		282
Energy		359		246		12		617
Industrial		456		553		29		1,038
Utilities		266		94		12		372
All Others		577		586		21		1,184

Total	$	4,992	$	4,408	$	181	$	9,581


Investments 2		Page 23

Chubb Limited

Investment Portfolio - 3

(in millions of U.S. dollars)

(Unaudited)

Non-U.S. Fixed Income Portfolio

June 30, 2017


Non-U.S. Government Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	—	$	1,406	$	—	$	—	$	—	$	1,406
Republic of Korea		—		1,058		—		—		—		1,058
Canada		869		—		—		—		—		869
Federative Republic of Brazil		—		—		—		—		798		798
Province of Ontario		—		9		620		—		—		629
United Mexican States		—		—		400		106		—		506
Province of Quebec		—		499		—		—		—		499
Kingdom of Thailand		—		—		482		—		—		482
Germany		389		—		—		—		—		389
Australia		348		3		—		—		—		351
Other Non-U.S. Government Securities		927		1,452		651		522		677		4,229

Total	$	2,533	$	4,427	$	2,153	$	628	$	1,475	$	11,216


Non-U.S. Corporate Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	129	$	75	$	670	$	920	$	276	$	2,070
Canada		91		180		360		464		278		1,373
United States ⁽¹⁾		2		86		150		335		333		906
France		9		31		511		254		32		837
Netherlands		78		11		382		200		43		714
Australia		84		138		336		133		22		713
Germany		184		47		119		248		23		621
Japan		—		31		304		10		3		348
Switzerland		34		20		122		138		21		335
China		—		108		134		36		7		285
Other Non-U.S. Corporate Securities		416		373		844		799		502		2,934

Total	$	1,027	$	1,100	$	3,932	$	3,537	$	1,540	$	11,136

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


Investments 3		Page 24

Chubb Limited

Investment Portfolio - 4

(in millions of U.S. dollars)

(Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures


	June 30, 2017	Market Value		Rating
1	Wells Fargo & Co	$	588	A
2	JP Morgan Chase & Co		533	A-
3	Goldman Sachs Group Inc		464	BBB+
4	Anheuser-Busch InBev NV		433	A-
5	General Electric Co		394	AA-
6	Morgan Stanley		363	BBB+
7	Verizon Communications Inc		356	BBB+
8	Bank of America Corp		349	BBB+
9	AT&T Inc		345	BBB+
10	HSBC Holdings Plc		318	A


Investments 4		Page 25

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Three months ended June 30, 2017
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	23		$	(8	)	$	15		$	423		$	(141	)	$	282		$	446		$	(149	)	$	297
Fixed income derivatives		(16	)		2			(14	)		—			—			—			(16	)		2			(14	)
Public equity		2			(1	)		1			15			(4	)		11			17			(5	)		12
Private equity		145			(9	)		136			(4	)		(3	)		(7	)		141			(12	)		129

Total investment portfolio ⁽¹⁾		154			(16	)		138			434			(148	)		286			588			(164	)		424
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		80			—			80			—			—			—			80			—			80
Foreign exchange		14			(3	)		11			102			(4	)		98			116			(7	)		109
Partially-owned entities ⁽³⁾		(2	)		—			(2	)		—			—			—			(2	)		—			(2	)
Other ⁽⁴⁾		—			—			—			(35	)		21			(14	)		(35	)		21			(14	)

Net gains (losses)	$	246		$	(19	)	$	227		$	501		$	(131	)	$	370		$	747		$	(150	)	$	597

(1)	Other-than-temporary impairments for the quarter in realized gains (losses) include $4 million for fixed maturities, $3 million for public equity and $1 million for private equity.

(2)	The quarter includes $38 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

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

(4)	Other unrealized losses are primarily related to the company’s post-retirement programs.


	Three months ended June 30, 2016
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	7		$	(8	)	$	(1	)	$	954		$	(234	)	$	720		$	961		$	(242	)	$	719
Fixed income derivatives		(47	)		7			(40	)		—			—			—			(47	)		7			(40	)
Public equity		(5	)		2			(3	)		33			(10	)		23			28			(8	)		20
Private equity		33			(5	)		28			(42	)		5			(37	)		(9	)		—			(9	)

Total investment portfolio ⁽⁵⁾		(12	)		(4	)		(16	)		945			(239	)		706			933			(243	)		690
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁶⁾		(159	)		—			(159	)		—			—			—			(159	)		—			(159	)
Foreign exchange		(22	)		4			(18	)		81			24			105			59			28			87
Partially-owned entities ⁽⁷⁾		(2	)		1			(1	)		—			—			—			(2	)		1			(1	)
Other		(1	)		—			(1	)		1			2			3			—			2			2

Net gains (losses)	$	(196	)	$	1		$	(195	)	$	1,027		$	(213	)	$	814		$	831		$	(212	)	$	619

(5)	Other-than-temporary impairments for the quarter in realized gains (losses) include $11 million for fixed maturities and $5 million for public equity.

(6)	The quarter includes $28 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

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


Net Gains (Losses)		Page 26

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Six months ended June 30, 2017
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	11		$	(2	)	$	9		$	679		$	(236	)	$	443		$	690		$	(238	)	$	452
Fixed income derivatives		(10	)		8			(2	)		—			—			—			(10	)		8			(2	)
Public equity		6			(1	)		5			43			(14	)		29			49			(15	)		34
Private equity		195			(27	)		168			27			(6	)		21			222			(33	)		189

Total investment portfolio ⁽¹⁾		202			(22	)		180			749			(256	)		493			951			(278	)		673
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		99			—			99			—			—			—			99			—			99
Foreign exchange		(5	)		3			(2	)		236			(7	)		229			231			(4	)		227
Partially-owned entities ⁽³⁾		(8	)		2			(6	)		—			—			—			(8	)		2			(6	)
Other ⁽⁴⁾		3			—			3			(55	)		17			(38	)		(52	)		17			(35	)

Net gains (losses)	$	291		$	(17	)	$	274		$	930		$	(246	)	$	684		$	1,221		$	(263	)	$	958

(1)	Year to date other-than-temporary impairments in realized gains (losses) include $10 million for fixed maturities, $8 million for public equity and $9 million for private equity.

(2)	Year to date includes $112 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

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

(4)	Other unrealized losses are primarily related to the company’s post-retirement programs.


	Six months ended June 30, 2016
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed maturities	$	(183	)	$	6		$	(177	)	$	2,042		$	(466	)	$	1,576		$	1,859		$	(460	)	$	1,399
Fixed income derivatives		(86	)		12			(74	)		—			—			—			(86	)		12			(74	)
Public equity		33			(11	)		22			29			(9	)		20			62			(20	)		42
Private equity		14			3			17			(69	)		3			(66	)		(55	)		6			(49	)

Total investment portfolio ⁽⁵⁾		(222	)		10			(212	)		2,002			(472	)		1,530			1,780			(462	)		1,318
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁶⁾		(402	)		—			(402	)		—			—			—			(402	)		—			(402	)
Foreign exchange		17			(6	)		11			393			(11	)		382			410			(17	)		393
Partially-owned entities ⁽⁷⁾		(5	)		1			(4	)		—			—			—			(5	)		1			(4	)
Other		(3	)		—			(3	)		3			1			4			—			1			1

Net gains (losses)	$	(615	)	$	5		$	(610	)	$	2,398		$	(482	)	$	1,916		$	1,783		$	(477	)	$	1,306

(5)	Year to date other-than-temporary impairments in realized gains (losses) include $70 million for fixed maturities, $6 million for public equity and $3 million for private equity.

(6)	Year to date includes $43 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

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


Net Gains (Losses) 2		Page 27

Chubb Limited

Debt and Capital

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

(Unaudited)


										Legacy ACE
	June 30			March 31			December 31			December 31
	2017			2017			2016			2015
Financial Debt:
Total short-term debt	$	922		$	300		$	500		$	—
Total long-term debt ⁽¹⁾		11,667			12,300			12,610			9,389

Total financial debt	$	12,589		$	12,600		$	13,110		$	9,389
Hybrid debt:
Total trust preferred securities		308			308			308			307

Total	$	12,897		$	12,908		$	13,418		$	9,696

Capitalization:
Shareholders’ equity	$	50,349		$	49,224		$	48,275		$	29,135
Hybrid debt		308			308			308			307
Financial debt		12,589			12,600			13,110			9,389

Total capitalization	$	63,246		$	62,132		$	61,693		$	38,831

Leverage ratios (based on total capital):
Hybrid debt		0.5	%		0.5	%		0.5	%		0.8	%
Financial debt		19.9	%		20.3	%		21.3	%		24.2	%

Total hybrid & financial debt		20.4	%		20.8	%		21.8	%		25.0	%

Note: As of June 30, 2017, there was $0.4 billion usage of credit facilities on a total commitment of $1.5 billion.

(1)	In connection with our acquisition of The Chubb Corporation, we assumed $3.3 billion par value of Legacy Chubb’s debt, fair valued at $3.8 billion for purchase accounting purposes. This included $1 billion of junior subordinated capital securities.


Debt and Capital		Page 28

Chubb Limited

Computation of Basic and Diluted Earnings Per Share

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

(Unaudited)


	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Numerator
Operating income to common shares	$	1,180		$	1,058		$	2,355		$	2,077
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax ⁽¹⁾		(72	)		(95	)		(151	)		(178	)
Tax benefit on amortization adjustment		20			29			44			53
Chubb integration and related expenses, pre-tax		(72	)		(98	)		(183	)		(253	)
Tax benefit on Chubb integration and related expenses		22			27			59			76
Adjusted net realized gains (losses), pre-tax		246			(196	)		291			(615	)
Tax (expense) benefit on adjusted net realized gains (losses)		(19	)		1			(17	)		5

Net income	$	1,305		$	726		$	2,398		$	1,165

Rollforward of Common Shares Outstanding
Shares - beginning of period		467,223,019			464,283,520			465,968,716			324,563,441
Share issuance for Chubb Acquisition		—			—			—			136,950,381
Repurchase of shares		(2,381,566	)		—			(3,417,630	)		—
Shares issued, excluding option exercises		107,167			297,586			1,791,540			2,469,747
Issued for option exercises		426,521			431,874			1,032,515			1,029,411

Shares - end of period		465,375,141			465,012,980			465,375,141			465,012,980

Denominator
Weighted average shares outstanding ⁽²⁾		467,981,077			467,701,328			468,244,458			457,102,802
Effect of other dilutive securities		3,872,860			3,455,969			3,900,678			3,379,559

Adj. wtd. avg. shares outstanding and assumed conversions		471,853,937			471,157,297			472,145,136			460,482,361

Basic earnings per share
Operating income	$	2.52		$	2.26		$	5.03		$	4.54
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax ⁽¹⁾		(0.11	)		(0.14	)		(0.23	)		(0.27	)
Chubb integration and related expenses, net of tax		(0.11	)		(0.15	)		(0.26	)		(0.39	)
Adjusted net realized gains (losses), net of tax		0.49			(0.42	)		0.58			(1.33	)

Net income	$	2.79		$	1.55		$	5.12		$	2.55

Diluted earnings per share
Operating income	$	2.50		$	2.25		$	4.99		$	4.51
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax ⁽¹⁾		(0.11	)		(0.14	)		(0.23	)		(0.27	)
Chubb integration and related expenses, net of tax		(0.10	)		(0.15	)		(0.26	)		(0.38	)
Adjusted net realized gains (losses), net of tax		0.48			(0.42	)		0.58			(1.33	)

Net income	$	2.77		$	1.54		$	5.08		$	2.53

(1)	Related to the acquisition of The Chubb Corporation.

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


Earnings per share		Page 29

Chubb Limited

Book Value and Book Value per Common Share

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

(Unaudited)

Reconciliation of Book Value per Common Share


	June 30			March 31			December 31			June 30
	2017			2017			2016			2016
Shareholders’ equity	$	50,349		$	49,224		$	48,275		$	47,226
Less: goodwill and other intangible assets, net of tax		19,994			20,013			20,019			20,656

Numerator for tangible book value per share	$	30,355		$	29,211		$	28,256		$	26,570

Book value - % change over prior quarter		2.3	%		2.0	%		-0.2	%		2.9	%
Tangible book value - % change over prior quarter		3.9	%		3.4	%		0.8	%		6.3	%
Denominator		465,375,141			467,223,019			465,968,716			465,012,980

Book value per common share	$	108.19		$	105.35		$	103.60		$	101.56
Tangible book value per common share	$	65.23		$	62.52		$	60.64		$	57.14
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	49,224		$	48,275		$	48,372		$	45,897
Operating income		1,180			1,175			1,283			1,058
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax ⁽¹⁾		(52	)		(55	)		(66	)		(66	)
Chubb integration and related expenses, net of tax		(50	)		(74	)		(94	)		(71	)
Adjusted net realized gains (losses), net of tax ⁽²⁾		227			47			487			(195	)
Net unrealized gains (losses) on the investment portfolio		286			207			(1,487	)		706
Repurchase of shares		(335	)		(140	)		—			—
Dividend declared on common shares		(332	)		(324	)		(324	)		(323	)
Cumulative translation		98			131			(375	)		105
Postretirement benefit liability		(14	)		(24	)		353			3
Other⁽³⁾		117			6			126			112

	$	50,349		$	49,224		$	48,275		$	47,226

(1)	Related to the acquisition of The Chubb Corporation.

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

(3)	Other primarily includes proceeds from exercise of stock options and stock compensation.


Reconciliation Book Value		Page 30

Chubb Limited

Non-GAAP Financial Measures

(Unaudited)

Regulation G - Non-GAAP Financial Measures

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

We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures 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.

Adjusted losses and loss expenses and adjusted administrative expenses are non-GAAP financial measures that exclude the one-time curtailment benefit related to the harmonization of the company’s U.S. pension plans. During the fourth quarter of 2016, the company harmonized and amended several U.S. retirement programs to create a unified retirement savings program which resulted in the one-time pension curtailment benefit. The portion of the benefit related to claims staff is excluded from adjusted losses and loss expenses with the remainder excluded from adjusted administrative expenses. We believe that excluding the impact of the one-time pension curtailment benefit provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by this item. Adjusted losses and loss expenses also includes realized gains and losses on crop derivatives. The crop derivatives are purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified from adjusted net realized gains (losses), also a non-GAAP financial measure.

In presenting our segment income results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting adjusted losses and loss expenses, policy benefits, policy acquisition costs, and adjusted administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and adjusted net realized gains (losses). P&C underwriting income is a non-GAAP financial measure which excludes the Life Insurance segment. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. P&C expense ratio (a non-GAAP financial measure) and P&C combined ratio include policy acquisition costs and adjusted administrative expenses in the ratio numerator. A reconciliation of combined ratio to P&C combined ratio is provided on page 34.

P&C combined ratio excluding the impact of catastrophe losses and prior period development (PPD) and the P&C loss and loss expense ratio excluding the impact of catastrophe losses and PPD are non-GAAP financial measures. The loss ratio numerator includes adjusted losses and loss expenses and excludes catastrophe losses and PPD. The combined ratio numerator includes adjusted losses and loss expenses, policy acquisition costs, and adjusted administrative expenses. The denominator for both ratios includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating the ratios. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

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

Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life Insurance and North America Agricultural Insurance segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment of acquired invested assets. Adjusted interest expense is interest expense excluding the amortization of the fair value adjustment of acquired debt and the interest expense on the $5.3 billion senior notes issued in November 2015 until the closing of the Chubb Corp acquisition on January 14, 2016. We believe that excluding these items are meaningful in order to present the underlying economics of the company’s business.

Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our segments’ operations as they are heavily influenced by, and fluctuate in part according to market conditions. Other income (expense) – operating and net realized gains and losses related to unconsolidated entities are recorded to Other income (expense) in our income statement on a GAAP basis.

Operating income is a non-GAAP financial measure that excludes the after-tax impact of adjusted net realized gains (losses), net realized gains (losses) included in other income (expense) related to partially owned entities, Chubb integration and related expenses, and the amortization of the fair value adjustments related to purchased invested assets and long-term debt from the Chubb Corp acquisition. We exclude realized gains and losses because the amount of these gains (losses) are heavily influenced by, and fluctuate in part according to the availability of market opportunities. We exclude Chubb integration and related expenses due to the size and complexity of this acquisition. These integration and related expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration and related expenses facilitates the comparison of our financial results to our historical operating results. Chubb integration expenses are incurred by the overall company and are therefore included in Corporate. The costs are not related to the on-going activities of the individual segments and are therefore excluded from our definition of segment income, as well. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. Operating income should not be viewed as a substitute for net income determined in accordance with GAAP.

Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses), tax on net realized gains (losses) included in other income (expense) related to partially owned entities, tax on Chubb integration and related expenses, and tax on the amortization of the fair value adjustments related to purchased invested assets and long-term debt from the Chubb Corp acquisition. The denominator excludes these same items, before tax. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.

Tangible book value per common share is a non-GAAP financial measure and is shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 30. In addition, we disclose per share measures that exclude the impact of foreign currency fluctuations during 2016 in order to adjust for the distortive effects of fluctuations in exchange rates.

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

2016 “As If” company measures presented throughout this section are prepared inclusive of the first 14 days of January 2016 prior to the acquisition close and exclusive of the impact of the unearned premium reserves intangible amortization and the elimination of the historical policy acquisition costs as a result of purchase accounting in order to present the underlying profitability of our insurance business. We believe these non-GAAP measures provide visibility into our results and trends in our business by allowing for a better assessment and comparability to our historical results. These measures are consistent with how management evaluates results.

Net premiums written excluding merger-related underwriting actions is a non-GAAP performance measure. Since the acquisition of The Chubb Corporation, we have entered into new reinsurance agreements with third-party reinsurers for the Chubb Corp businesses and have taken other merger-related underwriting actions, including exiting certain types of business that do not meet our underwriting standards or adhere to our risk diversification strategy. We also exclude a merger-related accounting policy alignment adjustment. We believe that these measures are meaningful to evaluate trends in our underlying business on a comparable basis.


Reconciliation Non-GAAP		Page 31

Chubb Limited

Non-GAAP Financial Measures - 2

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating income

The following table presents the reconciliation of Net income to Operating income:


																YTD			YTD			Full Year
	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
Net income, as reported	$	1,305		$	1,093		$	1,610		$	1,360		$	726		$	2,398		$	1,165		$	4,135
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax ⁽¹⁾		(72	)		(79	)		(88	)		(79	)		(95	)		(151	)		(178	)		(345	)
Tax benefit on amortization adjustment		20			24			22			26			29			44			53			101
Chubb integration and related expenses, pre tax		(72	)		(111	)		(131	)		(115	)		(98	)		(183	)		(253	)		(499	)
Tax benefit on Chubb integration and related expenses		22			37			37			30			27			59			76			143
Adjusted net realized gains (losses)		103			(7	)		371			97			(214	)		96			(608	)		(140	)
Net realized gains (losses) related to unconsolidated entities ⁽²⁾		143			52			162			72			18			195			(7	)		227
Tax (expense) benefit on adjusted net realized gains (losses)		(19	)		2			(46	)		(27	)		1			(17	)		5			(68	)

Operating income	$	1,180		$	1,175		$	1,283		$	1,356		$	1,058		$	2,355		$	2,077		$	4,716

(1)	Related to the acquisition of The Chubb Corporation.

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

The following table presents the reconciliation of Net Income to P&C and Global P&C Underwriting Income:


																YTD			YTD			Full Year
	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
Net Income	$	1,305		$	1,093		$	1,610		$	1,360		$	726		$	2,398		$	1,165		$	4,135
Income tax expense		200			128			259			277			155			328			279			815
Net realized (gains) losses related to unconsolidated entities		(143	)		(52	)		(162	)		(72	)		(18	)		(195	)		7			(227	)
Adjusted realized (gains) losses		(103	)		7			(371	)		(97	)		214			(96	)		608			140
Amortization of fair value adjustment of acquired invested assets and long-term debt		72			79			88			79			95			151			178			345
Chubb integration and related expenses		72			111			131			115			98			183			253			499
Adjusted interest expense		160			166			167			164			166			326			315			646
Pension curtailment benefit		—			—			(113	)		—			—			—			—			(113	)

Consolidated segment income		1,563			1,532			1,609			1,826			1,436			3,095			2,805			6,240
Less: Life Insurance segment income		52			62			60			69			74			114			134			263

P&C segment income		1,511			1,470			1,549			1,757			1,362			2,981			2,671			5,977
Less: amortization expense of purchased intangibles (excluding Life Insurance)		65			63			2			3			5			128			11			16
Less: other (income) expense - operating (excluding Life Insurance)		10			11			13			1			(11	)		21			(14	)		—
Less: adjusted net investment income (excluding Life Insurance)		(778	)		(761	)		(769	)		(759	)		(747	)		(1,539	)		(1,447	)		(2,975	)

P&C Underwriting income (Including Corporate and excluding Life Insurance)		808			783			795			1,002			609			1,591			1,221			3,018
Less: Agricultural Insurance Underwriting income		23			93			184			90			14			116			67			341

Global P&C Underwriting income (Including Corporate and excluding Agriculture)	$	785		$	690		$	611		$	912		$	595		$	1,475		$	1,154		$	2,677


Reconciliation Non-GAAP 2		Page 32

Chubb Limited

Non-GAAP Financial Measures - 3

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

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating ROE

Operating return on equity (ROE) or ROE calculated using operating income: The ROE numerator includes income adjusted to exclude after-tax adjusted net realized gains (losses), Chubb integration and related expenses, and the amortization of the fair value adjustment of acquired invested assets and long-term debt. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. In addition, for 2016, the denominator was adjusted to account for the weighted-average impact of the $15,527 million issuance of common shares and equity awards related to The Chubb Corp acquisition on January 14, 2016. Operating ROE is a useful measures as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.


							YTD			YTD			Full Year
	2Q-17			2Q-16			2017			2016			2016
Net income	$	1,305		$	726		$	2,398		$	1,165		$	4,135
Operating income	$	1,180		$	1,058		$	2,355		$	2,077		$	4,716
Equity - beginning of period, as reported	$	49,224		$	45,897		$	48,275		$	29,135		$	29,135
Add: weighted average impact of equity issuance		—			—			—			14,333			14,931
Less: unrealized gains (losses) on investments, net of deferred tax		1,265			1,698			1,058			874			874

Equity - beginning of period, as adjusted	$	47,959		$	44,199		$	47,217		$	42,594		$	43,192

Equity - end of period, as reported	$	50,349		$	47,226		$	50,349		$	47,226		$	48,275
Less: weighted average impact of equity issuance		—			—			—			1,194			596
Less: unrealized gains (losses) on investments, net of deferred tax		1,551			2,404			1,551			2,404			1,058

Equity - end of period, as adjusted	$	48,798		$	44,822		$	48,798		$	43,628		$	46,621

Weighted average equity, as reported	$	49,787		$	46,562		$	49,312		$	44,750		$	45,873
Weighted average equity, as adjusted	$	48,379		$	44,511		$	48,008		$	43,111		$	44,907
Operating ROE		9.8	%		9.5	%		9.8	%		9.8	%		10.5	%
ROE		10.5	%		6.2	%		9.7	%		5.3	%		9.0	%

Operating effective tax rate

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


																YTD			YTD			Full Year
	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
Tax expense, as reported	$	200		$	128		$	259		$	277		$	155		$	328		$	279		$	815
Tax benefit on amortization of fair value of acquired invested assets and debt ⁽¹⁾		(20	)		(24	)		(22	)		(26	)		(29	)		(44	)		(53	)		(101	)
Tax benefit on Chubb integration and related expenses		(22	)		(37	)		(37	)		(30	)		(27	)		(59	)		(76	)		(143	)
Tax expense (benefit) on adjusted net realized gains (losses)		19			(2	)		46			27			(1	)		17			(5	)		68

Tax expense, adjusted	$	223		$	191		$	272		$	306		$	212		$	414		$	413		$	991

Income before tax, as reported	$	1,505		$	1,221		$	1,869		$	1,637		$	881		$	2,726		$	1,444		$	4,950
Less: amortization of fair value of acquired invested assets and debt ⁽¹⁾		(72	)		(79	)		(88	)		(79	)		(95	)		(151	)		(178	)		(345	)
Less: Chubb integration and related expenses		(72	)		(111	)		(131	)		(115	)		(98	)		(183	)		(253	)		(499	)
Less: adjusted realized gains (losses)		103			(7	)		371			97			(214	)		96			(608	)		(140	)
Less: realized gains (losses) related to unconsolidated entities		143			52			162			72			18			195			(7	)		227

Operating income before tax	$	1,403		$	1,366		$	1,555		$	1,662		$	1,270		$	2,769		$	2,490		$	5,707

Effective tax rate		13.3	%		10.5	%		13.8	%		17.0	%		17.6	%		12.0	%		19.3	%		16.5	%
Adjustment for tax impact of amortization of fair value of acquired invested assets and debt ⁽¹⁾		0.6	%		1.0	%		0.5	%		0.7	%		1.1	%		0.8	%		1.0	%		0.8	%
Adjustment for tax impact of Chubb integration and related expenses		0.8	%		1.7	%		1.0	%		0.6	%		0.9	%		1.2	%		1.5	%		1.1	%
Adjustment for tax impact of adjusted net realized gains (losses)		1.3	%		0.8	%		2.3	%		0.1	%		-2.9	%		1.0	%		-5.2	%		-1.0	%

Operating effective tax rate		16.0	%		14.0	%		17.6	%		18.4	%		16.7	%		15.0	%		16.6	%		17.4	%

(1)	Related to the acquisition of The Chubb Corporation


Reconciliation Non-GAAP 3		Page 33

Chubb Limited

Non-GAAP Financial Measures - 4

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

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Chubb integration and related expenses, net of tax

Chubb integration and related expenses is a non-GAAP financial measure and includes all internal and external costs directly related to the integration activities of The Chubb Corp acquisition, consisting primarily of personnel-related expenses, including severance and employee retention and relocation; consulting fees; and advisor fees. Chubb integration and related expenses also include interest expense on the $5.3 billion senior notes issued in November 2015. We exclude Chubb integration expenses related to The Chubb Corp acquisition from operating income due to the size and complexity of this acquisition. We exclude the pre-acquisition interest expense from operating income because the operations for which the debt was issued were not part of our operating activities prior to the completion of the acquisition. Effective with the close of The Chubb Corp acquisition (January 14, 2016), the interest on this debt was considered a cost of our operations and is included within operating income. These integration and related expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration and related expenses facilitate the comparison of our financial results to our historical operating results. The following table presents the reconciliation of Chubb integration expenses on a GAAP basis to Chubb integration and related expenses.


											YTD		YTD		Full Year
	2Q-17		1Q-17		4Q-16		3Q-16		2Q-16		2017		2016		2016
Chubb integration expenses, net of tax	$	50	$	74	$	94	$	85	$	71	$	124	$	173	$	352
Add: pre-acquisition interest expense related to $5.3 billion senior notes, net of tax		—		—		—		—		—		—		4		4

Chubb integration and related expenses, net of tax		50		74		94		85		71		124		177		356
Tax benefit		22		37		37		30		27		59		76		143

Chubb integration and related expenses, pre-tax	$	72	$	111	$	131	$	115	$	98	$	183	$	253	$	499

P&C combined ratio

The following table presents the reconciliation of combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations. The P&C combined ratio also excludes the one-time pension curtailment benefit of $113 million recognized in the fourth quarter of 2016. We believe that excluding the impact of the one-time pension curtailment provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by this item.


																YTD			YTD			Full Year
	2Q-17			1Q-17			4Q-16			3Q-16			2Q-16			2017			2016			2016
Combined ratio		88.0	%		87.5	%		86.0	%		86.0	%		91.2	%		87.8	%		90.6	%		88.3	%
Less: impact of pension curtailment benefit		0.0	%		0.0	%		1.7	%		0.0	%		0.0	%		0.0	%		0.0	%		0.4	%
Add: impact of gains and losses on crop derivatives		0.0	%		0.0	%		0.1	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

P&C combined ratio		88.0	%		87.5	%		87.8	%		86.0	%		91.2	%		87.8	%		90.6	%		88.7	%


Reconciliation Non-GAAP 4		Page 34

Chubb Limited

Non-GAAP Financial Measures - 5

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

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

The following presents the reconciliation of earnings per share to earnings per share, including the 14 day stub period for YTD 2016:


	YTD
Numerator	2016
Operating income as reported	$	2,077
Add: 14-day stub period income
Underwriting income		44
Net investment income		45
Interest expense		(9	)
Income tax expense		(20	)

Total 14-day stub period income		60

As If operating income, including 14 day stub period	$	2,137

Net income as reported	$	1,165
Add: 14-day stub period income from above		60

As If net income, including 14 day stub period	$	1,225


	YTD
Denominator	2016
Weighted average shares outstanding and assumed conversions		460,482,361
Impact of shares issued in connection with Chubb Corp acquisition		10,116,378
As If adjusted weighted average shares outstanding		470,598,739
Diluted earnings per share, including 14 day stub period
Operating income per share	$	4.54
Net income per share	$	2.60


Reconciliation Non-GAAP 5		Page 35

Chubb Limited

Non-GAAP Financial Measures - 6

(in millions of U.S. dollars)

(Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

The following tables presents the reconciliation of reported underwriting income (loss) for each segment to underwriting income (loss) on an “As If” basis.


	North			North			North
	America			America			America		Overseas
	Commercial P&C			Personal P&C			Agricultural		General			Global					Total			Life			Total
	Insurance			Insurance			Insurance		Insurance			Reinsurance		Corporate			P&C			Insurance			Consolidated
Q2 2016
Underwriting income (loss)	$	333		$	112		$	14	$	190		$	37	$	(77	)	$	609		$	8		$	617
Less: amortization of acquired UPR intangible - Chubb Corp		290			165			—		70			—		—			525			—			525
Add: elimination of DAC benefit - Chubb Corp		(244	)		(136	)		—		(79	)		—		—			(459	)		—			(459	)

Underwriting income (loss) - As If	$	379		$	141		$	14	$	181		$	37	$	(77	)	$	675		$	8		$	683

Q3 2016
Underwriting income (loss)	$	426		$	169		$	90	$	384		$	53	$	(120	)	$	1,002		$	1		$	1,003
Less: amortization of acquired UPR intangible - Chubb Corp		176			101			—		43			—		—			320			—			320
Add: elimination of DAC benefit - Chubb Corp		(150	)		(83	)		—		(48	)		—		—			(281	)		—			(281	)

Underwriting income (loss) - As If	$	452		$	187		$	90	$	379		$	53	$	(120	)	$	1,041		$	1		$	1,042

Q4 2016
Underwriting income (loss)	$	470		$	125		$	184	$	192		$	10	$	(186	)	$	795		$	(7	)	$	788
Less: amortization of acquired UPR intangible - Chubb Corp		78			45			—		21			—		—			144			—			144
Add: elimination of DAC benefit - Chubb Corp		(66	)		(37	)		—		(24	)		—		—			(127	)		—			(127	)

Underwriting income (loss) - As If	$	482		$	133		$	184	$	189		$	10	$	(186	)	$	812		$	(7	)	$	805

YTD 2016
Underwriting income (loss)	$	734		$	138		$	67	$	358		$	83	$	(159	)	$	1,221		$	5		$	1,226
Add: Pre-acquisition underwriting income (loss) (14 days prior to close)		13			30			—		4			—		(3	)		44			—			44
Less: amortization of acquired UPR intangible - Chubb Corp		605			346			—		144			—		—			1,095			—			1,095
Add: elimination of DAC benefit - Chubb Corp		(513	)		(286	)		—		(166	)		—		—			(965	)		—			(965	)

Underwriting income (loss) - As If	$	839		$	228		$	67	$	340		$	83	$	(162	)	$	1,395		$	5		$	1,400

Full Year 2016
Underwriting income (loss)	$	1,630		$	432		$	341	$	934		$	146	$	(465	)	$	3,018		$	(1	)	$	3,017
Add: Pre-acquisition underwriting income (loss) (14 days prior to close)		13			30			—		4			—		(3	)		44			—			44
Less: amortization of acquired UPR intangible - Chubb Corp		859			492			—		208			—		—			1,559			—			1,559
Add: elimination of DAC benefit - Chubb Corp		(729	)		(406	)		—		(238	)		—		—			(1,373	)		—			(1,373	)

Underwriting income (loss) - As If	$	1,773		$	548		$	341	$	908		$	146	$	(468	)	$	3,248		$	(1	)	$	3,247


Reconciliation Non-GAAP 6		Page 36

Chubb Limited

Glossary

Chubb Limited Consolidated comprises all segments including Corporate.

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

P&C combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding both the life business and the one-time pension curtailment benefit in Q4 2016 and including realized gains and losses on crop derivatives.

Operating effective tax rate: Income tax expense excluding tax expense (benefit) on adjusted net realized gains (losses), tax benefit on amortization of fair value of acquired invested assets and debt, and tax benefit on Chubb integration and related expenses, divided by income excluding adjusted net realized gains (losses) before tax, amortization of fair value of acquired invested assets and debt before tax, and Chubb integration and related expenses before tax.

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

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

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

Tangible capital: Total capitalization less goodwill and other intangible assets.

Total capitalization: Short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

NM: Not meaningful.

Chubb integration and related expenses: Chubb integration expenses comprise legal and professional fees and all other costs directly related to the integration activities of the Chubb Corp acquisition including the pre-acquisition interest expense on the $5.3 billion senior notes issued in November 2015. The pre-acquisition interest expense is included in operating income subsequent to January 14th, 2016, the date of the acquisition close. Chubb integration expenses are incurred by the overall company and are therefore included in Corporate. These costs are not related to the on-going business activities of the segments and are therefore excluded from our definition of segment income.


Glossary		Page 37