<SEC-DOCUMENT>0001193125-17-255650.txt : 20171124
<SEC-HEADER>0001193125-17-255650.hdr.sgml : 20171124
<ACCEPTANCE-DATETIME>20170811130105
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-17-255650
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20170811

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Chubb Ltd
		CENTRAL INDEX KEY:			0000896159
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			V8
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		BARENGASSE 32
		CITY:			ZURICH
		STATE:			V8
		ZIP:			CH-8001
		BUSINESS PHONE:		41 0 43 456 7600

	MAIL ADDRESS:	
		STREET 1:		BARENGASSE 32
		CITY:			ZURICH
		STATE:			V8
		ZIP:			CH-8001

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHUBB Ltd
		DATE OF NAME CHANGE:	20160115

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ACE Ltd
		DATE OF NAME CHANGE:	20091216

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ACE LTD
		DATE OF NAME CHANGE:	19930122
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Chubb Limited</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">B&auml;rengasse 32</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">CH-8001</FONT> Zurich</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Switzerland</P></TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">www.chubb.com</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">@Chubb</P></TD></TR>
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<TD VALIGN="top">August&nbsp;11, 2017</TD>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Jim B. Rosenberg</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Senior Assistant
Chief Accountant</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Healthcare and Insurance</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division
of Corporation Finance</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">USA</P></TD>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Re: &nbsp;Chubb Limited</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:2.00em; font-size:10pt; font-family:Times New Roman"><B>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for Fiscal Year Ended December&nbsp;31, 2016</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:2.00em; font-size:10pt; font-family:Times New Roman"><B>Filed February&nbsp;28, 2017</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; text-indent:2.00em; font-size:10pt; font-family:Times New Roman"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-11778</FONT></B></P></TD>
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<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-size:10pt">Dear Mr.&nbsp;Rosenberg,</FONT></TD>
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<TD VALIGN="top" COLSPAN="5">Thank you for your letter dated August&nbsp;1, 2017, setting forth comments of the staff of the Division of Corporation Finance (the &#147;Staff&#148;) of the Securities and Exchange Commission (the
&#147;Commission&#148;) on the Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended December&nbsp;31, 2016 (the &#147;Form <FONT STYLE="white-space:nowrap">10-K&#148;)</FONT> of Chubb Limited (the &#147;Company&#148;,
&#147;we&#148; or &#147;our&#148;).</TD></TR>
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<TD VALIGN="top" COLSPAN="5">We have considered the Staff&#146;s comments on the Form <FONT STYLE="white-space:nowrap">10-K</FONT> carefully. Our written responses are set forth below. To facilitate the Staff&#146;s review, the responses set forth
below correspond to the paragraphs of your letter (set forth in <B>bold</B> type).</TD></TR>
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<TD VALIGN="top" COLSPAN="5">Where we indicate below that the Company will provide additional disclosure in future filings, such disclosure will be included, as appropriate, in subsequent Forms <FONT STYLE="white-space:nowrap">10-K</FONT> and, to
the extent such information may be required to be included in a Form <FONT STYLE="white-space:nowrap">10-Q,</FONT> in subsequent Forms <FONT STYLE="white-space:nowrap">10-Q.</FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="5"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Notes to Consolidated Financial Statements</U></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Note 7: Unpaid losses and loss expenses</U></B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B><U>c)
Loss Development Tables, page <FONT STYLE="white-space:nowrap">F-46</FONT></U></B></P></TD></TR>
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<TD VALIGN="top" COLSPAN="5"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:4.00em; text-indent:-2.00em; font-size:10pt; font-family:Times New Roman"><B>1. &nbsp;&nbsp;&nbsp;&nbsp;In the second full paragraph on page <FONT
STYLE="white-space:nowrap">F-47</FONT> you disclose that you exclude high attachment, high limit, multiple-line and excess of aggregate coverages for large commercial clients from your loss development tables because changes in incurred loss and
cash flow patterns are volatile and sufficiently different from those of typical insureds. Please tell us why it is appropriate to exclude these coverages from your loss development tables, referencing the authoritative literature you rely upon to
support your position. At a minimum, address the following in your response:</B></P></TD></TR>
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<TD VALIGN="top" COLSPAN="5"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:8.00em; text-indent:-1.50em; font-size:10pt; font-family:Times New Roman"><B>&#149;&nbsp;&nbsp;&nbsp;&nbsp;Tell us the net liability for unpaid losses and loss
expenses for these coverages at December&nbsp;31, 2016.</B></P></TD></TR>
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<TD VALIGN="top" COLSPAN="5"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:8.00em; text-indent:-1.50em; font-size:10pt; font-family:Times New Roman"><B>&#149;&nbsp;&nbsp;&nbsp;&nbsp;Tell us the amount of loss and loss expense charged
in 2016 related to 2016 accident year claims associated with these coverages.</B></P></TD></TR>
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<TD ALIGN="left" VALIGN="top"><B>Tell us the amount of prior period development recorded in 2016 associated with these coverages. </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>Tell us the amounts of loss and loss expense paid in 2016 related to 2016 accident year claims and to prior accident years&#146; claims associated with these coverages. </B></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>Explain why the volatility in incurred losses and cash flow patterns for these coverages is not indicative of &#147;significantly different characteristics&#148; as outlined in <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">ASC&nbsp;944-40-50-4H</FONT></FONT></FONT> prompting a separate loss development table for these coverages. </B></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The referenced business that was excluded from our development triangles represents contractual indemnity contracts, which meet the definition
of insurance and transfer risk. These contracts are large and few in number, with only three policies written in each of the past five calendar years. The contracts have adjustable premium features which tend to mitigate some of the volatility in
incurred losses. The development tables do not provide us the ability to present the changes in premium in response to loss development. Accordingly, we believe this business has significantly different characteristics than the other businesses in
the North America Commercial P&amp;C Insurance segment and, consistent with the guidance in ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">944-40-50-4H,</FONT></FONT></FONT> we disaggregated
the associated net reserves of $1,153&nbsp;million from the tables. Based on the relative immateriality of these reserves we included them as a component of Other in our Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss
Expenses. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Loss and allocated expense for this business charged in 2016 related to 2016 accident year claims was $363&nbsp;million. The
prior period loss reserve development recorded in 2016 was a favorable $15&nbsp;million, which resulted in a decrease in accrued premiums of $11&nbsp;million for loss sensitive insurance contracts. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Total loss and allocated loss expense payments for this business was $210&nbsp;million in calendar year 2016 which was made up of
$13&nbsp;million for accident year 2016, and $197&nbsp;million for 2015 and prior accident years. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>You also disclose that you exclude reinsurance recoverable bad debt from your loss development tables. Please tell us why it is appropriate to exclude this bad debt when <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">ASC&nbsp;944-40-50-4B</FONT></FONT></FONT> requires the tables to be presented net of reinsurance and you are primarily liable to the policyholder to pay its claim. </B></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">As we note on <FONT STYLE="white-space:nowrap">page&nbsp;F-11</FONT> in our <FONT STYLE="white-space:nowrap">10-K,</FONT> we accrue a
provision for uncollectible reinsurance recoverables based on a review of the financial condition of reinsurers and other factors. The estimation of this provision is performed at the reinsurer level without regard to product line or accident year.
The total provision for the segments other than Corporate is $159&nbsp;million which represents less than 0.4% of net held reserves for these segments at December&nbsp;31, 2016, which we believe to be immaterial. </P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>The amounts of prior year development in your discussion beginning at the bottom of <FONT STYLE="white-space:nowrap">page&nbsp;F-60</FONT> agree with the amounts depicted in the table on page&nbsp;57. Please explain
to us why the total favorable development from the table on page&nbsp;57 of $1,135&nbsp;million for 2016 does not agree with the $1,204&nbsp;million amount depicted in the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">ASC&nbsp;944-40-50-3</FONT></FONT></FONT> roll forward on <FONT STYLE="white-space:nowrap">page&nbsp;F-60.</FONT> </B></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The prior period development depicted in the
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">ASC&nbsp;944-40-50-3</FONT></FONT></FONT> roll forward table of $1,204&nbsp;million represents changes in loss and allocated expenses only. When we
disclose prior period development in the table on page&nbsp;57 and in the narrative beginning on <FONT STYLE="white-space:nowrap">page&nbsp;F-60,</FONT> we include the impact of <FONT STYLE="white-space:nowrap">non-loss</FONT> items which are
directly related to the loss and allocated expense movements. As disclosed in footnote 2 to the table on <FONT STYLE="white-space:nowrap">page&nbsp;F-60,</FONT> these items include the impact on earned premiums of retrospective premium adjustments
on loss sensitive contracts, reinstatement premiums on reinsurance contracts, and changes in profit commissions. In all instances, these <FONT STYLE="white-space:nowrap">non-loss</FONT> items mitigate the loss and allocated expense
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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movements and therefore we believe it is appropriate to net the two in our PPD disclosures on page&nbsp;57 and the narrative beginning on <FONT STYLE="white-space:nowrap">page&nbsp;F-60.</FONT>
These items resulted in the $69&nbsp;million difference between the two tables with most of that impact relating to retrospective premium adjustments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Effective with our Q2&nbsp;2017 <FONT STYLE="white-space:nowrap">Form&nbsp;10-Q</FONT> filing, we expanded our discussion to include the
quantified impact of these items. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>As the objective of the short-duration disclosures as outlined in paragraph BC 2 of <FONT STYLE="white-space:nowrap">ASU&nbsp;2015-09</FONT> is to provide financial statement users with information to facilitate
analysis of the amount, timing, and uncertainty of cash flows arising from insurance contracts and the development of loss reserve estimates, please tell us how the tables you provide for your North America Commercial P&amp;C Insurance and Overseas
General Insurance segments provide meaningful information to investors. In this regard, the four tables you present for your North America Commercial P&amp;C Insurance segment depict only about 78% of the prior year favorable development for 2016;
with about 88% of your long-tail development and only 30% of your short-tail development being depicted. Also in this regard, the two tables you present for your Overseas General Insurance segment depict only about 31% of the prior year favorable
development for 2016; with about 68% of your long-tail development and only 1% of your short-tail development being depicted. In your response tell us: </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>The amount of prior year development for accident years prior to 2007 for each of the six tables referred to above; </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>The lines of business not included in the tables and the prior year development for those lines in 2016 for each segment; </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Why you do not include the lines of business identified in the preceding bullet in your tables; and </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Your consideration for disclosing the information in the preceding bullets. </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We believe
that the tables provided in our disclosures both conform to FASB standards as well as provide meaningful information to investors about the nature, amount, timing, and uncertainty of cash flows related to our claims liabilities. There are only a few
immaterial lines of business omitted from the tables, the majority being the contractual indemnity contracts discussed in comment #1. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The
amount of 2006 and prior accident year development for the six referenced triangles is summarized below. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="10%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="7" ALIGN="center" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>North America Commercial P&amp;C
Insurance</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" ALIGN="center" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Overseas General</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Insurance</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ROWSPAN="2"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">(Favorable)/</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adverse</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">(in&nbsp;millions)</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">2006&nbsp;&amp;&nbsp;prior accident&nbsp;years</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Workers&#146; Compensation</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Liability</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Other&nbsp;Casualty</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Non-Casualty</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Casualty</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Non-Casualty</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" STYLE="border-bottom:1.00px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">Total</P></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;9</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;(117)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;11</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;(8)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;(81)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;6</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">$&nbsp;&nbsp;&nbsp;&nbsp;(180)</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">After consideration of the prior period development in the 2006 and prior accident years, the remaining
unexplained difference between the loss triangle disclosure in our <FONT STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> principally relates to quarter lag reporting which impacted North America Commercial P&amp;C Insurance segment by
$67&nbsp;million and Overseas General Insurance segment by $93&nbsp;million. In both our North America Commercial P&amp;C Insurance and Overseas General Insurance segments, certain businesses which we acquired as part of The Chubb Corporation merger
were recorded in the past by The Chubb </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">
Corporation on a one quarter lag. As part of our integration, this lag was eliminated in the 2016 calendar year; however, the prior period development as shown in our loss triangle disclosures
reflect the booking of the Q4&nbsp;2015 reported losses in Q1&nbsp;2016. This gives the appearance of unfavorable loss development. However, the reported losses were not considered prior period development because these losses were accompanied by
premiums which were also recorded on a quarter lag. Accordingly, we excluded these losses from both the prior period development table on page 57 and in the narrative beginning on <FONT STYLE="white-space:nowrap">page&nbsp;F-60</FONT> in our <FONT
STYLE="white-space:nowrap">Form&nbsp;10-K.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The remaining immaterial difference primarily relates to foreign exchange translation,
given that the loss triangles presentation is on a constant dollar basis, and to excluded businesses, each individually immaterial, as discussed in our footnotes in the Form <FONT STYLE="white-space:nowrap">10-K</FONT> and under comment #1 above.
For example, we write some loss sensitive insurance products, which meet the definition of insurance and transfer risk, primarily in North America Commercial P&amp;C Insurance. These contracts will generate either a premium or profit commission
adjustment, related to the loss development, which partially mitigates the favorable or unfavorable development. As explained under comment&nbsp;#3 above, our loss triangle disclosures present the loss impacts exclusive of premium adjustment. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">With regard to your comment on long-tail/short-tail development, one cannot relate long-tail with casualty and short-tail with <FONT
STYLE="white-space:nowrap">non-casualty.</FONT> For example, in our Overseas General Insurance segment there are some specialty lines, including aviation, which we include in our short-tail disclosures but are classified as casualty for our triangle
disclosure. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Regarding our loss development for the 2006 and prior accident years, we will consider expanding our disclosure to clarify
and quantify these amounts and include discussions, as appropriate given our results, effective with our 2017 <FONT STYLE="white-space:nowrap">Form&nbsp;10-K.</FONT> </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">* * * * * </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We would like to express our
appreciation for your thoughtful comments and are available to discuss any of our responses with you at your earliest convenience. Please do not hesitate to contact the undersigned at <FONT STYLE="white-space:nowrap">(441)&nbsp;295-5200.</FONT> </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Philip V. Bancroft</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Philip V. Bancroft</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Chief Financial
Officer</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">cc:&nbsp;&nbsp;&nbsp;&nbsp;James Peklenk &#150; Senior Staff Accountant </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark Brunhofer &#150; Senior Staff Accountant </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>

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