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Share-based compensation (Tables) | 12 Months Ended
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Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Schedule of pre-tax and after-tax share-based compensation expense | The following table presents pre-tax and after-tax share-based compensation expense:
| Year Ended December 31 |
(in millions of U.S. dollars) | 2018 |  |  | 2017 |  |  | 2016 |
Stock options and shares issued under ESPP: |  |  |  |  |
Pre-tax | $ | 50 |  |  | $ | 41 |  |  | $ | 33 |
After-tax (1) | $ | 40 |  |  | $ | 26 |  |  | $ | 20 |
Restricted stock: |  |  |  |  |
Pre-tax | $ | 235 |  |  | $ | 259 |  |  | $ | 268 |
After-tax | $ | 178 |  |  | $ | 151 |  |  | $ | 167 |
(1) | Excludes windfall tax benefit for share-based compensation recognized as a direct adjustment to Additional paid-in capital of $32 million for the year ended December 31, 2016. Beginning in 2017, windfall tax benefits for share-based compensation are recognized through Net income rather than Additional paid-in capital. The excess tax benefit recorded to Income tax expense in the Consolidated statement of operations was $19 million and $48 million for the years ended December 31, 2018 and 2017, respectively.
Schedule of the weighted-average model valuation assumptions |
| Year Ended December 31 |
| 2018 |  |  | 2017 |  |  | 2016 |
Dividend yield | 2.0 | % |  | 2.0 | % |  | 2.3 | %
Expected volatility | 23.2 | % |  | 19.7 | % |  | 23.2 | %
Risk-free interest rate | 2.7 | % |  | 2.0 | % |  | 1.3 | %
Expected life | 5.7 years |  |  | 5.8 years |  |  | 5.6 years |
Rollforward of the company's stock options | The following table presents a roll-forward of Chubb's stock options:
(Intrinsic Value in millions of U.S. dollars) | Number of Options |  |  | Weighted-Average Exercise Price |  |  | Weighted-Average Fair Value |  |  | Total Intrinsic Value |
Options outstanding, December 31, 2015 | 9,853,496 |  |  | $ | 78.40 |  |  |  |  |
Assumed in Chubb Corp Acquisition | 339,896 |  |  | $ | 77.83 |  |  | $ | 36.07 |  |  |
Granted | 1,929,616 |  |  | $ | 118.39 |  |  | $ | 21.52 |  |  |
Exercised | (1,728,949 | ) |  | $ | 66.65 |  |  |  |  | $ | 99 |
Forfeited | (213,339 | ) |  | $ | 110.01 |  |  |  |  |
Options outstanding, December 31, 2016 | 10,180,720 |  |  | $ | 87.29 |  |  |  |  |
Granted | 2,079,522 |  |  | $ | 139.00 |  |  | $ | 22.97 |  |  |
Exercised | (1,632,629 | ) |  | $ | 73.53 |  |  |  |  | $ | 111 |
Forfeited | (194,297 | ) |  | $ | 119.44 |  |  |  |  |
Options outstanding, December 31, 2017 | 10,433,316 |  |  | $ | 99.20 |  |  |  |  |
Granted | 1,842,690 |  |  | $ | 143.07 |  |  | $ | 29.71 |  |  |
Exercised | (1,065,384 | ) |  | $ | 73.57 |  |  |  |  | $ | 71 |
Forfeited | (202,900 | ) |  | $ | 133.92 |  |  |  |  |
Options outstanding, December 31, 2018 | 11,007,722 |  |  | $ | 108.25 |  |  |  |  | $ | 274 |
Options exercisable, December 31, 2018 | 7,405,354 |  |  | $ | 93.88 |  |  |  |  | $ | 268 |
Rollforward of the company's restricted stock | The following table presents a roll-forward of our restricted stock awards. Included in the roll-forward below are 20,784 restricted stock awards, 22,013 restricted stock awards, and 23,812 restricted stock awards that were granted to non-management directors during the years ended December 31, 2018, 2017, and 2016, respectively:
| Service-based Restricted Stock Awards and Restricted Stock Units |  |  | Performance-based Restricted Stock Awards and Restricted Stock Units |
| Number of Shares |  |  | Weighted-Average Grant-Date Fair Value |  |  | Number of Shares |  |  | Weighted-Average Grant-Date Fair Value |
Unvested restricted stock, December 31, 2015 | 3,489,169 |  |  | $ | 97.01 |  |  | 595,210 |  |  | $ | 101.73 |
Assumed in Chubb Corp Acquisition | 3,706,639 |  |  | $ | 111.02 |  |  | — |  |  | $ | — |
Granted | 1,622,065 |  |  | $ | 118.70 |  |  | 517,507 |  |  | $ | 118.96 |
Vested | (2,592,622 | ) |  | $ | 100.87 |  |  | (181,548 | ) |  | $ | 102.43 |
Forfeited | (420,125 | ) |  | $ | 109.42 |  |  | — |  |  | $ | — |
Unvested restricted stock, December 31, 2016 | 5,805,126 |  |  | $ | 109.39 |  |  | 931,169 |  |  | $ | 111.17 |
Granted | 1,707,094 |  |  | $ | 139.18 |  |  | 267,282 |  |  | $ | 138.90 |
Vested | (2,646,084 | ) |  | $ | 107.73 |  |  | (222,954 | ) |  | $ | 113.30 |
Forfeited | (156,694 | ) |  | $ | 114.54 |  |  | — |  |  | $ | — |
Unvested restricted stock, December 31, 2017 | 4,709,442 |  |  | $ | 121.16 |  |  | 975,497 |  |  | $ | 118.28 |
Granted | 1,326,979 |  |  | $ | 142.76 |  |  | 180,065 |  |  | $ | 143.07 |
Vested | (2,545,090 | ) |  | $ | 114.83 |  |  | (244,332 | ) |  | $ | 103.03 |
Forfeited | (196,482 | ) |  | $ | 131.06 |  |  | — |  |  | $ | — |
Unvested restricted stock, December 31, 2018 | 3,294,849 |  |  | $ | 134.17 |  |  | 911,230 |  |  | $ | 127.27 |

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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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