EX-99.2

EX-99.2 3 d780266dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO

Chubb Limited

Financial Supplement

for the Quarter Ended June 30, 2019

Investor Contact

Karen Beyer: (212) 827-4445

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 and severity 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 and credit developments among reinsurers.

Our forward-looking statements could also be affected by, among other things, 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, and such other factors identified in our filings with the Securities and Exchange Commission. 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

II.	Consolidated Results
	- Consolidated Statement of Operations	2
	- P&C Results—Consecutive Quarters	3
	- Global P&C Results—Consecutive Quarters	4
	- Summary Consolidated Balance Sheets	5
	- Line of Business	6
	- Consolidated Results by Segment	7 - 10

III.	Segment Results
	- North America Commercial P&C Insurance	11
	- North America Personal P&C Insurance	12
	- North America Agricultural Insurance	13
	- Overseas General Insurance	14
	- Global Reinsurance	15
	- Life Insurance	16
	- Corporate	17

IV.	Balance Sheet Details
	- Loss Reserve Rollforward	18
	- Reinsurance Recoverable Analysis	19
	- Investment Portfolio	20 - 23
	- Net Realized and Unrealized Gains (Losses)	24 - 25
	- Debt and Capital	26
	- Computation of Basic and Diluted Earnings Per Share	27
	- Book Value and Book Value per Common Share	28

V.	Other Disclosures
	- Non-GAAP Financial Measures	29 - 35
	- Glossary	36

Chubb Limited

Consolidated Financial Highlights

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

(Unaudited)

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.


	Three months ended June 30									Constant $		Constant $			Six months ended June 30									Constant $			Constant $
	2019			2018			% Change			2018		% Change			2019			2018			% Change			2018			% Change

Gross premiums written	$	10,355		$	9,929			4.3	%	$	9,769		6.0	%	$	19,466		$	18,662			4.3	%	$	18,340			6.1	%
Net premiums written	$	8,343		$	8,015			4.1	%	$	7,876		5.9	%	$	15,656		$	15,119			3.5	%	$	14,836			5.5	%
P&C net premiums written	$	7,764		$	7,450			4.2	%	$	7,322		6.0	%	$	14,498		$	13,995			3.6	%	$	13,731			5.6	%
Global P&C net premiums written	$	7,298		$	7,062			3.3	%	$	6,934		5.3	%	$	13,902		$	13,499			3.0	%	$	13,235			5.0	%
Net premiums earned	$	7,891		$	7,664			3.0	%	$	7,522		4.9	%	$	15,028		$	14,691			2.3	%	$	14,408			4.3	%
Net investment income ⁽¹⁾	$	859		$	828			3.8	%	$	821		4.7	%	$	1,695		$	1,634			3.8	%	$	1,620			4.6	%
Adjusted net investment income ⁽¹⁾	$	902		$	890			1.4	%	$	883		2.1	%	$	1,784		$	1,767			1.0	%	$	1,753			1.7	%
Interest expense ⁽²⁾	$	140		$	167			-16.4	%	$	166		-15.8	%	$	280		$	324			-13.7	%	$	323			-13.3	%
Adjusted interest expense ⁽²⁾	$	145		$	177			-17.9	%	$	176		-17.4	%	$	290		$	346			-16.1	%	$	345			-15.7	%
Core operating income	$	1,195		$	1,253			-4.7	%	$	1,230		-3.0	%	$	2,365		$	2,350			0.6	%	$	2,304			2.6	%
Net income	$	1,150		$	1,294			-11.1	%						$	2,190		$	2,376			-7.8	%
Operating cash flow	$	1,386		$	1,646										$	2,708		$	2,197
P&C combined ratio
Loss and loss expense ratio		61.7	%		60.4	%										60.6	%		60.2	%
Policy acquisition cost and administrative expense ratio		28.4	%		28.0	%										29.0	%		29.0	%

Combined ratio		90.1	%		88.4	%										89.6	%		89.2	%
Current Accident Year (CAY) P&C combined ratio ex Catastrophe losses (Cats)
CAY loss and loss expense ratio ex Cats		60.5	%		60.0	%										59.6	%		58.9	%
CAY policy acquisition cost and administrative expense ratio ex Cats		28.4	%		28.1	%										29.1	%		28.9	%

CAY combined ratio ex Cats		88.9	%		88.1	%										88.7	%		87.8	%
ROE		8.7	%		10.1	%										8.4	%		9.3	%
Core operating return on equity (ROE)		9.3	%		9.8	%										9.2	%		9.3	%
Core operating return on tangible equity (ROTE)		15.2	%		16.3	%										15.2	%		15.5	%
Effective tax rate		15.3	%		14.4	%										15.3	%		12.9	%
Core operating effective tax rate		15.3	%		14.8	%										15.0	%		13.5	%
Diluted earnings per share
Net income	$	2.50		$	2.76			-9.4	%						$	4.75		$	5.07			-6.3	%
Core operating income	$	2.60		$	2.68			-3.0	%						$	5.13		$	5.01			2.4	%
Weighted average basic common shares outstanding		457.2			465.3											458.0			465.5
Weighted average diluted common shares outstanding		460.2			468.4											460.9			469.0

																								% Change
																					December 31			2Q-19 vs.
																					2018			4Q-18
Book value per common share															$	117.97					$	109.56			7.7	%
Tangible book value per common share															$	73.74					$	65.89			11.9	%
Total hybrid & financial debt/capitalization																20.3	%		20.5	%		20.4	%

(1)	Q2 2019 and YTD 2019 include $3 million and $5 million, respectively, of interest income on notional pool programs, compared with $34 million and $58 million, respectively, prior year.

(2)	Q2 2019 and YTD 2019 include $nil of interest expense on notional pool programs, compared with $31 million and $53 million, respectively, prior year.


Financial Highlights		Page 1

Chubb Limited

Statement of Operations—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Consolidated Statements of Operations


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	10,355		$	9,111		$	9,252		$	10,054		$	9,929		$	19,466		$	18,662		$	37,968
Net premiums written		8,343			7,313			7,350			8,110			8,015			15,656			15,119			30,579
Net premiums earned		7,891			7,137			7,465			7,908			7,664			15,028			14,691			30,064
Adjusted losses and loss expenses ⁽¹⁾		4,708			4,099			4,615			4,876			4,479			8,807			8,579			18,070
Realized (gains) losses on crop derivatives		(7	)		1			5			8			(8	)		(6	)		(10	)		3

Losses and loss expenses		4,715			4,098			4,610			4,868			4,487			8,813			8,589			18,067
Policy benefits		161			196			162			127			150			357			301			590
Policy acquisition costs		1,544			1,464			1,480			1,504			1,464			3,008			2,928			5,912
Administrative expenses		758			710			728			719			747			1,468			1,439			2,886
Adjusted net investment income ⁽²⁾		902			882			903			883			890			1,784			1,767			3,553
Amortization expense of fair value adjustment on acquired invested assets		(43	)		(46	)		(55	)		(60	)		(62	)		(89	)		(133	)		(248	)

Net investment income		859			836			848			823			828			1,695			1,634			3,305
Adjusted realized gains (losses) ⁽³⁾		(230	)		(96	)		(682	)		27			10			(326	)		6			(649	)
Realized gains (losses) on crop derivatives		7			(1	)		(5	)		(8	)		8			6			10			(3	)

Net realized gains (losses)		(223	)		(97	)		(687	)		19			18			(320	)		16			(652	)
Adjusted interest expense ⁽⁴⁾		145			145			158			170			177			290			346			674
Amortization benefit of fair value adjustment on acquired long term debt		(5	)		(5	)		(5	)		(6	)		(10	)		(10	)		(22	)		(33	)

Interest expense		140			140			153			164			167			280			324			641
Gains (losses) from fair value changes in separate account assets		(3	)		30			(20	)		(14	)		(10	)		27			(4	)		(38	)
Net realized gains (losses) related to unconsolidated entities		219			(4	)		139			152			96			215			140			431
Other income (expense)—operating		14			13			8			7			29			27			26			41

Other income (expense)		230			39			127			145			115			269			162			434
Amortization expense of purchased intangibles		77			76			86			83			85			153			170			339
Chubb integration expenses		4			3			20			16			13			7			23			59
Income tax expense		208			188			159			183			218			396			353			695

Net income	$	1,150		$	1,040		$	355		$	1,231		$	1,294		$	2,190		$	2,376		$	3,962

(1)	Adjusted losses and loss expenses used throughout this report includes realized gains and losses on crop derivatives.

(2)	Adjusted net investment income used throughout this report excludes Amortization expense of fair value adjustment on acquired invested assets.

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

(4)	Adjusted interest expense used throughout this report excludes Amortization benefit of fair value adjustment on acquired long term debt.


Statement of Operations		Page 2

Chubb Limited

P&C Underwriting Results—Consecutive Quarters

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

(Unaudited)

Chubb Limited P&C Underwriting Results


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
P&C Underwriting income (Including Corporate and excluding Life Insurance)
Gross premiums written	$	9,743		$	8,500		$	8,638		$	9,455		$	9,330		$	18,243		$	17,471		$	35,564
Net premiums written		7,764			6,734			6,768			7,546			7,450			14,498			13,995			28,309
Net premiums earned		7,320			6,576			6,890			7,357			7,112			13,896			13,599			27,846
Adjusted losses and loss expenses		4,519			3,897			4,433			4,681			4,295			8,416			8,190			17,304
Policy acquisition costs		1,394			1,336			1,328			1,365			1,326			2,730			2,662			5,355
Administrative expenses		680			631			653			642			667			1,311			1,281			2,576

P&C Underwriting income	$	727		$	712		$	476		$	669		$	824		$	1,439		$	1,466		$	2,611

P&C CAY Underwriting income ex Cats	$	814		$	758		$	808		$	876		$	844		$	1,572		$	1,657		$	3,341
% Change versus prior year period
Net premiums written		4.2	%		2.9	%		4.2	%		2.5	%		5.6	%		3.6	%		5.7	%		4.4	%
Net premiums earned		2.9	%		1.4	%		3.4	%		1.0	%		5.8	%		2.2	%		4.7	%		3.4	%
Net premiums written constant $		6.0	%		5.1	%		5.8	%		2.8	%		4.1	%		5.6	%		3.7	%		4.0	%
Net premiums earned constant $		4.9	%		3.5	%		4.9	%		1.4	%		4.0	%		4.2	%		2.9	%		3.0	%
P&C combined ratio
Loss and loss expense ratio		61.7	%		59.3	%		64.3	%		63.6	%		60.4	%		60.6	%		60.2	%		62.1	%
Policy acquisition cost ratio		19.1	%		20.3	%		19.3	%		18.6	%		18.6	%		19.6	%		19.6	%		19.2	%
Administrative expense ratio		9.3	%		9.6	%		9.5	%		8.7	%		9.4	%		9.4	%		9.4	%		9.3	%

Combined ratio		90.1	%		89.2	%		93.1	%		90.9	%		88.4	%		89.6	%		89.2	%		90.6	%

CAY P&C combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		60.5	%		58.6	%		59.5	%		61.1	%		60.0	%		59.6	%		58.9	%		59.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		28.4	%		29.9	%		28.8	%		27.1	%		28.1	%		29.1	%		28.9	%		28.4	%

CAY combined ratio ex Cats		88.9	%		88.5	%		88.3	%		88.2	%		88.1	%		88.7	%		87.8	%		88.0	%

Other ratios
Net premiums written/gross premiums written		80	%		79	%		78	%		80	%		80	%		79	%		80	%		80	%
Expense ratio		28.4	%		29.9	%		28.8	%		27.3	%		28.0	%		29.0	%		29.0	%		28.5	%
Expense ratio excluding A&H		26.3	%		28.0	%		26.6	%		25.2	%		25.9	%		27.1	%		26.9	%		26.4	%
Catastrophe reinstatement premiums (expensed) collected—pre-tax	$	—		$	—		$	(8	)	$	4		$	—		$	—		$	—		$	(4	)
Catastrophe losses—pre-tax	$	275		$	250		$	577		$	454		$	211		$	525		$	591		$	1,622
Favorable prior period development (PPD)—pre-tax	$	(188	)	$	(204	)	$	(253	)	$	(243	)	$	(191	)	$	(392	)	$	(400	)	$	(896	)
Impact of catastrophe losses on P&C combined ratio—Unfavorable		3.8	%		3.8	%		8.5	%		6.1	%		3.0	%		3.8	%		4.4	%		5.9	%
Impact of PPD on P&C combined ratio—Favorable		-2.6	%		-3.1	%		-3.7	%		-3.4	%		-2.7	%		-2.9	%		-3.0	%		-3.3	%
Impact of Cats and PPD on P&C combined ratio—Unfavorable		1.2	%		0.7	%		4.8	%		2.7	%		0.3	%		0.9	%		1.4	%		2.6	%


P&C Results		Page 3

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 11), North America Personal P&C Insurance segment (refer to page 12), Overseas General Insurance segment (refer to page 14), Global Reinsurance segment (refer to page 15), and Corporate (refer to page 17). Global P&C excludes the North America Agricultural Insurance and Life Insurance segments.

Global P&C (Including Corporate and excluding Agriculture)


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Global P&C Underwriting income
Gross premiums written	$	9,101		$	8,281		$	8,365		$	8,185		$	8,787		$	17,382		$	16,723		$	33,273
Net premiums written		7,298			6,604			6,571			6,662			7,062			13,902			13,499			26,732
Net premiums earned		6,942			6,521			6,572			6,500			6,761			13,463			13,205			26,277
Adjusted losses and loss expenses		4,210			3,923			4,272			3,954			4,014			8,133			7,964			16,190
Policy acquisition costs		1,367			1,329			1,323			1,316			1,300			2,696			2,637			5,276
Administrative expenses		676			630			662			640			666			1,306			1,283			2,585

Global P&C Underwriting income	$	689		$	639		$	315		$	590		$	781		$	1,328		$	1,321		$	2,226

Global P&C CAY Underwriting income ex Cats	$	774		$	744		$	670		$	790		$	799		$	1,518		$	1,585		$	3,045
% Change versus prior year period
Net premiums written		3.3	%		2.6	%		3.2	%		3.5	%		6.1	%		3.0	%		5.6	%		4.5	%
Net premiums earned		2.7	%		1.2	%		2.5	%		1.8	%		6.0	%		2.0	%		4.5	%		3.3	%
Net premiums written constant $		5.3	%		4.8	%		4.8	%		3.9	%		4.6	%		5.0	%		3.6	%		4.0	%
Net premiums earned constant $		4.7	%		3.3	%		4.0	%		2.2	%		4.1	%		4.0	%		2.7	%		2.9	%
Combined ratio
Loss and loss expense ratio		60.6	%		60.2	%		65.0	%		60.8	%		59.4	%		60.4	%		60.3	%		61.6	%
Policy acquisition cost ratio		19.7	%		20.4	%		20.1	%		20.2	%		19.2	%		20.0	%		20.0	%		20.1	%
Administrative expense ratio		9.8	%		9.6	%		10.1	%		9.9	%		9.8	%		9.7	%		9.7	%		9.8	%

Combined ratio		90.1	%		90.2	%		95.2	%		90.9	%		88.4	%		90.1	%		90.0	%		91.5	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		59.4	%		58.5	%		59.7	%		58.1	%		59.0	%		58.9	%		58.3	%		58.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		29.4	%		30.1	%		30.1	%		29.8	%		29.2	%		29.8	%		29.7	%		29.8	%

CAY combined ratio ex Cats		88.8	%		88.6	%		89.8	%		87.9	%		88.2	%		88.7	%		88.0	%		88.4	%

Other ratios
Net premiums written/gross premiums written		80	%		80	%		79	%		81	%		80	%		80	%		81	%		80	%
Expense ratio		29.5	%		30.0	%		30.2	%		30.1	%		29.0	%		29.7	%		29.7	%		29.9	%
Expense ratio excluding A&H		27.4	%		28.1	%		28.2	%		28.1	%		27.0	%		27.8	%		27.6	%		27.8	%
Catastrophe reinstatement premiums (expensed) collected—pre-tax	$	—		$	—		$	(8	)	$	4		$	—		$	—		$	—		$	(4	)
Catastrophe losses—pre-tax	$	273		$	248		$	567		$	446		$	209		$	521		$	588		$	1,601
Favorable prior period development (PPD)—pre-tax	$	(188	)	$	(143	)	$	(220	)	$	(242	)	$	(191	)	$	(331	)	$	(324	)	$	(786	)


Global P&C		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
	2019			2019			2018
Assets
Fixed maturities available for sale, at fair value	$	82,410		$	80,663		$	78,470
Fixed maturities held to maturity, at amortized cost		12,838			13,136			13,435
Equity securities, at fair value		715			821			770
Short-term investments, at fair value		3,808			3,078			3,016
Other investments		5,968			5,562			5,277

Total investments		105,739			103,260			100,968
Cash		1,270			1,271			1,247
Securities lending collateral		1,727			1,861			1,926
Insurance and reinsurance balances receivable		10,935			9,826			10,075
Reinsurance recoverable on losses and loss expenses		15,445			16,137			15,993
Deferred policy acquisition costs		5,113			5,008			4,922
Value of business acquired		280			289			295
Prepaid reinsurance premiums		2,765			2,698			2,544
Goodwill and other intangible assets		21,566			21,419			21,414
Investments in partially-owned insurance companies		1,050			708			678
Other assets		8,626			8,870			7,709

Total assets	$	174,516		$	171,347		$	167,771

Liabilities
Unpaid losses and loss expenses	$	63,205		$	63,143		$	62,960
Unearned premiums		16,403			15,909			15,532
Future policy benefits		5,568			5,552			5,506
Insurance and reinsurance balances payable		6,371			6,469			6,437
Securities lending payable		1,727			1,861			1,926
Accounts payable, accrued expenses, and other liabilities		13,055			12,629			11,890
Deferred tax liabilities		697			541			304
Short-term debt		9			509			509
Long-term debt		13,371			12,071			12,087
Trust preferred securities		308			308			308

Total liabilities		120,714			118,992			117,459
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		53,663			53,125			52,760
Accumulated other comprehensive income (loss) (AOCI)		139			(770	)		(2,448	)

Total shareholders’ equity		53,802			52,355			50,312

Total liabilities and shareholders’ equity	$	174,516		$	171,347		$	167,771

Book value per common share	$	117.97		$	114.27		$	109.56
% change over prior quarter		3.2	%		4.3	%		-0.8	%
Tangible book value per common share	$	73.74		$	70.46		$	65.89
% change over prior quarter		4.7	%		6.9	%		-1.4	%


Consol Bal Sheet		Page 5

Chubb Limited

Consolidated Net Premiums Written by Line of Business

(in millions of U.S. dollars)

(Unaudited)


								Constant $			YTD		YTD					Constant $
	2Q-19		2Q-18		% Change			% Change			2019		2018		% Change			% Change
Net premiums written
Commercial multiple peril⁽¹⁾	$	254	$	243		4.6	%		4.6	%	$	473	$	443		6.6	%		6.6	%
Commercial casualty		1,472		1,402		5.0	%		6.3	%		2,672		2,503		6.7	%		8.1	%
Workers’ compensation		482		454		6.2	%		6.2	%		1,075		1,076		-0.1	%		-0.1	%
Professional liability		909		889		2.2	%		4.0	%		1,695		1,662		2.0	%		3.7	%
Surety		156		161		-3.0	%		-0.6	%		308		322		-4.2	%		-1.6	%
Property and other short-tail lines		1,186		1,072		10.5	%		13.4	%		2,343		2,159		8.5	%		11.4	%

Total Commercial P&C ⁽²⁾		4,459		4,221		5.6	%		7.2	%		8,566		8,165		4.9	%		6.5	%
Agriculture		466		388		20.1	%		20.1	%		596		496		20.1	%		20.1	%
Personal automobile		473		456		3.8	%		5.1	%		894		854		4.8	%		6.4	%
Personal homeowners		968		982		-1.4	%		-0.9	%		1,711		1,720		-0.5	%		-0.1	%
Personal other		383		389		-1.5	%		3.0	%		751		776		-3.2	%		1.0	%

Total Personal lines		1,824		1,827		-0.2	%		1.4	%		3,356		3,350		0.2	%		1.8	%
Total Property and Casualty lines		6,749		6,436		4.9	%		6.4	%		12,518		12,011		4.2	%		5.8	%
Global A&H lines ⁽³⁾		1,130		1,116		1.3	%		4.9	%		2,203		2,188		0.7	%		5.0	%
Reinsurance lines		197		197		0.2	%		1.3	%		399		390		2.3	%		3.8	%
Life		267		266		0.2	%		3.1	%		536		530		0.9	%		3.6	%

Total consolidated	$	8,343	$	8,015		4.1	%		5.9	%	$	15,656	$	15,119		3.5	%		5.5	%

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

(2)

Q2 2018 included a reclassification of $44 million from Commercial casualty to Property and other short-tail lines ($40 million) and Workers’ compensation ($4 million) to better align the reporting with current year. YTD 2018 included a reclassification of $88 million from Commercial casualty and $1 million from Commercial multiple peril to Property and other short-tail lines ($87 million) and Workers’ compensation ($2 million) to better align the reporting with current year. There is no impact to total Commercial P&C.

(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, 2019

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

(Unaudited)


Q2 2019	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	3,534		$	1,309		$	466		$	2,258		$	197		$	—		$	7,764		$	579		$	8,343
Net premiums earned		3,390			1,168			378			2,225			159			—			7,320			571			7,891
Adjusted losses and loss expenses		2,214			747			309			1,125			90			34			4,519			189			4,708
Policy benefits		—			—			—			—			—			—			—			161			161
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			3			3
Policy acquisition costs		459			237			27			629			42			—			1,394			150			1,544
Administrative expenses		259			71			4			265			7			74			680			78			758

Underwriting income (loss)		458			113			38			206			20			(108	)		727			(10	)		717
Adjusted net investment income		521			64			4			151			55			10			805			97			902
Other income (expense)—operating⁽¹⁾		(2	)		(1	)		(1	)		(3	)		15			(4	)		4			10			14
Amortization expense of purchased intangibles		—			(3	)		(7	)		(12	)		—			(54	)		(76	)		(1	)		(77	)

Segment income (loss)	$	977		$	173		$	34		$	342		$	90		$	(156	)	$	1,460		$	96		$	1,556

Adjusted interest expense																	(145	)								(145	)
Income tax expense																	(216	)								(216	)

Core operating income (loss)																	(517	)								1,195
Chubb integration expenses, net of $1 million tax benefit																	(3	)								(3	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $6 million tax benefit																	(32	)								(32	)
Adjusted net realized gains (losses), net of $1 million tax benefit⁽²⁾																	(10	)								(10	)

Net income (loss)																$	(562	)							$	1,150

Combined ratio		86.5	%		90.3	%		90.1	%		90.8	%		87.7	%					90.1	%
CAY combined ratio ex Cats		87.9	%		81.7	%		89.6	%		91.2	%		81.7	%					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 (loss) presentation from Other income (expense)—operating.

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


Consol Results—QTD 2019		Page 7

Chubb Limited

Consolidated Results—Six months ended June 30, 2019

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

(Unaudited)


YTD 2019	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	6,485		$	2,365		$	596		$	4,653		$	399		$	—		$	14,498		$	1,158		$	15,656
Net premiums earned		6,475			2,322			433			4,339			327			—			13,896			1,132			15,028
Adjusted losses and loss expenses		4,187			1,504			283			2,231			166			45			8,416			391			8,807
Policy benefits		—			—			—			—			—			—			—			357			357
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			(27	)		(27	)
Policy acquisition costs		918			468			34			1,225			85			—			2,730			278			3,008
Administrative expenses		499			139			5			514			17			137			1,311			157			1,468

Underwriting income (loss)		871			211			111			369			59			(182	)		1,439			(24	)		1,415
Adjusted net investment income		1,031			128			14			295			111			19			1,598			186			1,784
Other income (expense)—operating⁽¹⁾		3			(1	)		(1	)		(7	)		24			(11	)		7			20			27
Amortization expense of purchased intangibles		—			(6	)		(14	)		(23	)		—			(109	)		(152	)		(1	)		(153	)

Segment income (loss)	$	1,905		$	332		$	110		$	634		$	194		$	(283	)	$	2,892		$	181		$	3,073

Adjusted interest expense																	(290	)								(290	)
Income tax expense																	(418	)								(418	)

Core operating income (loss)																	(991	)								2,365
Chubb integration expenses, net of $2 million tax benefit																	(5	)								(5	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $14 million tax benefit																	(65	)								(65	)
Adjusted net realized gains (losses), net of $6 million tax benefit⁽²⁾																	(105	)								(105	)

Net income (loss)																$	(1,166	)							$	2,190

Combined ratio		86.5	%		90.9	%		74.5	%		91.5	%		82.1	%					89.6	%
CAY combined ratio ex Cats		87.8	%		81.4	%		88.5	%		91.3	%		81.6	%					88.7	%

(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 (loss) presentation from Other income (expense)—operating.

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


Consol Results—YTD 2019		Page 8

Chubb Limited

Consolidated Results—Three months ended June 30, 2018

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

(Unaudited)


Q2 2018	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	3,331		$	1,335		$	388		$	2,199		$	197		$	—		$	7,450		$	565		$	8,015
Net premiums earned		3,277			1,156			351			2,161			167			—			7,112			552			7,664
Adjusted losses and loss expenses		2,084			728			281			1,071			83			48			4,295			184			4,479
Policy benefits		—			—			—			—			—			—			—			150			150
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			10			10
Policy acquisition costs		448			228			26			584			40			—			1,326			138			1,464
Administrative expenses		253			68			1			266			9			70			667			80			747

Underwriting income (loss)		492			132			43			240			35			(118	)		824			(10	)		814
Adjusted net investment income		510			59			6			155			65			10			805			85			890
Other income (expense)—operating⁽¹⁾		13			(1	)		(1	)		12			6			(2	)		27			2			29
Amortization expense of purchased intangibles		—			(3	)		(7	)		(11	)		—			(64	)		(85	)		—			(85	)

Segment income (loss)	$	1,015		$	187		$	41		$	396		$	106		$	(174	)	$	1,571		$	77		$	1,648

Adjusted interest expense																	(177	)								(177	)
Income tax expense																	(218	)								(218	)

Core operating income (loss)																	(569	)								1,253
Chubb integration expenses, net of $3 million tax benefit																	(10	)								(10	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $11 million tax benefit																	(41	)								(41	)
Adjusted net realized gains (losses), net of $14 million tax ⁽²⁾																	92									92

Net income (loss)																$	(528	)							$	1,294

Combined ratio		85.0	%		88.6	%		87.9	%		88.9	%		79.3	%					88.4	%
CAY combined ratio ex Cats		87.4	%		79.3	%		87.2	%		91.0	%		83.5	%					88.1	%

(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 (loss) presentation from Other income (expense)—operating.

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


Consol Results—QTD 2018		Page 9

Chubb Limited

Consolidated Results—Six months ended June 30, 2018

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

(Unaudited)


YTD 2018	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	6,143		$	2,383		$	496		$	4,583		$	390		$	—		$	13,995		$	1,124		$	15,119
Net premiums earned		6,306			2,296			394			4,268			335			—			13,599			1,092			14,691
Adjusted losses and loss expenses		3,992			1,614			226			2,149			150			59			8,190			389			8,579
Policy benefits		—			—			—			—			—			—			—			301			301
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		—			—			—			—			—			—			—			4			4
Policy acquisition costs		920			465			25			1,172			80			—			2,662			266			2,928
Administrative expenses		484			133			(2	)		505			19			142			1,281			158			1,439

Underwriting income (loss)		910			84			145			442			86			(201	)		1,466			(26	)		1,440
Adjusted net investment income		1,013			118			13			306			129			20			1,599			168			1,767
Other income (expense)—operating⁽¹⁾		19			(1	)		(1	)		5			13			(9	)		26			—			26
Amortization expense of purchased intangibles		—			(6	)		(14	)		(21	)		—			(128	)		(169	)		(1	)		(170	)

Segment income (loss)	$	1,942		$	195		$	143		$	732		$	228		$	(318	)	$	2,922		$	141		$	3,063

Adjusted interest expense																	(346	)								(346	)
Income tax expense																	(367	)								(367	)

Core operating income (loss)																	(1,031	)								2,350
Chubb integration expenses, net of $5 million tax benefit																	(18	)								(18	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $20 million tax benefit																	(91	)								(91	)
Adjusted net realized gains (losses), net of $11 million tax ⁽²⁾																	135									135

Net income (loss)																$	(1,005	)							$	2,376

Combined ratio		85.6	%		96.3	%		63.3	%		89.6	%		74.4	%					89.2	%
CAY combined ratio ex Cats		87.2	%		79.5	%		83.5	%		90.9	%		80.3	%					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 (loss) presentation from Other income (expense)—operating.

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


Consol Results—YTD 2018		Page 10

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-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	4,518		$	3,977		$	4,228		$	4,108		$	4,322		$	8,495		$	8,000		$	16,336
Net premiums written		3,534			2,951			3,143			3,199			3,331			6,485			6,143			12,485
Net premiums earned		3,390			3,085			3,077			3,019			3,277			6,475			6,306			12,402
Losses and loss expenses		2,214			1,973			2,127			1,881			2,084			4,187			3,992			8,000
Policy acquisition costs		459			459			451			458			448			918			920			1,829
Administrative expenses		259			240			231			251			253			499			484			966

Underwriting income		458			413			268			429			492			871			910			1,607
Net investment income		521			510			517			503			510			1,031			1,013			2,033
Other income (expense)—operating		(2	)		5			5			1			13			3			19			25

Segment income	$	977		$	928		$	790		$	933		$	1,015		$	1,905		$	1,942		$	3,665

CAY Underwriting income ex Cats	$	410		$	376		$	362		$	409		$	410		$	786		$	805		$	1,576
Combined ratio
Loss and loss expense ratio		65.3	%		63.9	%		69.1	%		62.3	%		63.6	%		64.7	%		63.3	%		64.5	%
Policy acquisition cost ratio		13.6	%		14.9	%		14.7	%		15.2	%		13.7	%		14.1	%		14.6	%		14.7	%
Administrative expense ratio		7.6	%		7.8	%		7.5	%		8.3	%		7.7	%		7.7	%		7.7	%		7.8	%

Combined ratio		86.5	%		86.6	%		91.3	%		85.8	%		85.0	%		86.5	%		85.6	%		87.0	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		66.7	%		65.0	%		66.1	%		63.5	%		66.0	%		65.9	%		65.0	%		64.9	%
CAY policy acquisition cost and administrative expense ratio ex Cats		21.2	%		22.8	%		22.1	%		23.2	%		21.4	%		21.9	%		22.2	%		22.4	%

CAY combined ratio ex Cats		87.9	%		87.8	%		88.2	%		86.7	%		87.4	%		87.8	%		87.2	%		87.3	%

Catastrophe losses—pre-tax	$	137		$	94		$	232		$	196		$	73		$	231		$	151		$	579
Favorable prior period development (PPD)—pre-tax	$	(185	)	$	(131	)	$	(138	)	$	(216	)	$	(155	)	$	(316	)	$	(256	)	$	(610	)
% Change versus prior year period
Net premiums written		6.0	%		5.0	%		4.8	%		3.6	%		4.0	%		5.6	%		3.5	%		3.9	%
Net premiums earned		3.4	%		1.9	%		1.4	%		0.1	%		5.8	%		2.7	%		2.7	%		1.7	%
Other ratios
Net premiums written/gross premiums written		78	%		74	%		74	%		78	%		77	%		76	%		77	%		76	%
Production by Size—Net premiums written ⁽¹⁾
Major Accounts & Specialty⁽²⁾	$	2,182		$	1,703		$	1,841		$	1,851		$	2,040		$	3,885		$	3,678		$	7,370
Commercial ⁽²⁾		1,352			1,248			1,302			1,348			1,291			2,600			2,465			5,115

Total	$	3,534		$	2,951		$	3,143		$	3,199		$	3,331		$	6,485		$	6,143		$	12,485

(1)

The 2018 net premiums written amounts for Major Accounts & Specialty and Commercial have been revised to better align the reporting with the current year. The Commercial transfers to (from) Major Accounts & Specialty in 2018 were: $8 million for Q1, ($1) million for Q3, and $2 million for Q4. There is no impact to total North America Commercial P&C Insurance.

(2)	Major Accounts & Specialty: large corporate accounts and wholesale business. Commercial: principally middle market and small commercial accounts.


NA Commercial		Page 11

Chubb Limited

Segment Results—Consecutive Quarters

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

(Unaudited)

North America Personal P&C Insurance


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	1,483		$	1,207		$	1,291		$	1,369		$	1,489		$	2,690		$	2,670		$	5,330
Net premiums written		1,309			1,056			1,073			1,218			1,335			2,365			2,383			4,674
Net premiums earned		1,168			1,154			1,130			1,167			1,156			2,322			2,296			4,593
Losses and loss expenses		747			757			755			860			728			1,504			1,614			3,229
Policy acquisition costs		237			231			238			236			228			468			465			939
Administrative expenses		71			68			67			69			68			139			133			269

Underwriting income		113			98			70			2			132			211			84			156
Net investment income		64			64			59			59			59			128			118			236
Other expense—operating		(1	)		—			—			—			(1	)		(1	)		(1	)		(1	)
Amortization expense of purchased intangibles		(3	)		(3	)		(3	)		(4	)		(3	)		(6	)		(6	)		(13	)

Segment income	$	173		$	159		$	126		$	57		$	187		$	332		$	195		$	378

CAY Underwriting income ex Cats	$	214		$	217		$	168		$	196		$	240		$	431		$	470		$	834
Combined ratio
Loss and loss expense ratio		64.0	%		65.5	%		66.8	%		73.7	%		63.0	%		64.7	%		70.3	%		70.3	%
Policy acquisition cost ratio		20.2	%		20.1	%		21.1	%		20.2	%		19.7	%		20.2	%		20.2	%		20.4	%
Administrative expense ratio		6.1	%		5.9	%		5.9	%		5.9	%		5.9	%		6.0	%		5.8	%		5.9	%

Combined ratio		90.3	%		91.5	%		93.8	%		99.8	%		88.6	%		90.9	%		96.3	%		96.6	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		55.3	%		55.1	%		59.1	%		57.1	%		53.7	%		55.2	%		53.5	%		55.8	%
CAY policy acquisition cost and administrative expense ratio ex Cats		26.4	%		26.0	%		26.4	%		26.1	%		25.6	%		26.2	%		26.0	%		26.1	%

CAY combined ratio ex Cats		81.7	%		81.1	%		85.5	%		83.2	%		79.3	%		81.4	%		79.5	%		81.9	%

Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	—		$	(26	)	$	—		$	—		$	—		$	—		$	(26	)
Catastrophe losses—pre-tax	$	117		$	129		$	90		$	136		$	101		$	246		$	385		$	611
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(16	)	$	(10	)	$	(18	)	$	58		$	7		$	(26	)	$	1		$	41
% Change versus prior year period
Net premiums written		-2.0	%		0.8	%		-2.5	%		2.0	%		6.4	%		-0.7	%		6.4	%		3.1	%
Net premiums written adjusted primarily for additional reinsurance		2.4	%		2.6	%		2.3	%		2.7	%		3.2	%		2.4	%		2.9	%		2.7	%
Net premiums earned		1.1	%		1.2	%		2.5	%		4.5	%		5.6	%		1.2	%		5.3	%		4.4	%
Other ratios
Net premiums written/gross premiums written		88	%		88	%		83	%		89	%		90	%		88	%		89	%		88	%


NA Personal		Page 12

Chubb Limited

Segment Results—Consecutive Quarters

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

(Unaudited)

North America Agricultural Insurance


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	642		$	219		$	273		$	1,270		$	543		$	861		$	748		$	2,291
Net premiums written		466			130			197			884			388			596			496			1,577
Net premiums earned		378			55			318			857			351			433			394			1,569
Adjusted losses and loss expenses ⁽¹⁾		309			(26	)		161			727			281			283			226			1,114
Policy acquisition costs		27			7			5			49			26			34			25			79
Administrative expenses		4			1			(9	)		2			1			5			(2	)		(9	)

Underwriting income		38			73			161			79			43			111			145			385
Net investment income		4			10			8			7			6			14			13			28
Other expense—operating		(1	)		—			(1	)		—			(1	)		(1	)		(1	)		(2	)
Amortization expense of purchased intangibles		(7	)		(7	)		(7	)		(7	)		(7	)		(14	)		(14	)		(28	)

Segment income	$	34		$	76		$	161		$	79		$	41		$	110		$	143		$	383

CAY Underwriting income ex Cats	$	40		$	14		$	138		$	86		$	45		$	54		$	72		$	296
Combined ratio
Loss and loss expense ratio		81.9	%		NM			50.7	%		84.9	%		80.0	%		65.5	%		57.4	%		71.0	%
Policy acquisition cost ratio		7.3	%		NM			1.5	%		5.7	%		7.4	%		7.9	%		6.3	%		5.0	%
Administrative expense ratio		0.9	%		NM			-2.7	%		0.1	%		0.5	%		1.1	%		-0.4	%		-0.5	%

Combined ratio		90.1	%		NM			49.5	%		90.7	%		87.9	%		74.5	%		63.3	%		75.5	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		81.4	%		71.1	%		56.0	%		84.1	%		79.3	%		79.5	%		77.3	%		76.7	%
CAY policy acquisition cost and administrative expense ratio ex Cats		8.2	%		12.8	%		0.8	%		5.8	%		7.9	%		9.0	%		6.2	%		4.9	%

CAY combined ratio ex Cats		89.6	%		83.9	%		56.8	%		89.9	%		87.2	%		88.5	%		83.5	%		81.6	%

Catastrophe losses—pre-tax	$	2		$	2		$	10		$	8		$	2		$	4		$	3		$	21
Favorable prior period development (PPD)—pre-tax	$	—		$	(61	)	$	(33	)	$	(1	)	$	—		$	(61	)	$	(76	)	$	(110	)
% Change versus prior year period
Net premiums written		20.1	%		19.9	%		55.8	%		-4.5	%		-3.7	%		20.1	%		6.8	%		4.0	%
Net premiums earned		7.7	%		27.4	%		26.0	%		-4.6	%		2.2	%		9.8	%		10.3	%		4.1	%
Other ratios
Net premiums written/gross premiums written		73	%		59	%		72	%		70	%		71	%		69	%		66	%		69	%

(1)	Includes Realized gains (losses) on crop derivatives.


NA Agriculture		Page 13

Chubb Limited

Segment Results—Consecutive Quarters

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

(Unaudited)

Overseas General Insurance


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	2,863		$	2,876		$	2,729		$	2,541		$	2,743		$	5,739		$	5,615		$	10,885
Net premiums written		2,258			2,395			2,238			2,081			2,199			4,653			4,583			8,902
Net premiums earned		2,225			2,114			2,187			2,157			2,161			4,339			4,268			8,612
Losses and loss expenses		1,125			1,106			1,166			1,114			1,071			2,231			2,149			4,429
Policy acquisition costs		629			596			592			582			584			1,225			1,172			2,346
Administrative expenses		265			249			257			252			266			514			505			1,014

Underwriting income		206			163			172			209			240			369			442			823
Net investment income		151			144			158			155			155			295			306			619
Other income (expense)—operating		(3	)		(4	)		(12	)		7			12			(7	)		5			—
Amortization expense of purchased intangibles		(12	)		(11	)		(12	)		(8	)		(11	)		(23	)		(21	)		(41	)

Segment income	$	342		$	292		$	306		$	363		$	396		$	634		$	732		$	1,401

CAY Underwriting income ex Cats	$	195		$	184		$	211		$	217		$	194		$	379		$	389		$	817
Combined ratio
Loss and loss expense ratio		50.6	%		52.3	%		53.3	%		51.7	%		49.6	%		51.4	%		50.4	%		51.4	%
Policy acquisition cost ratio		28.3	%		28.2	%		27.1	%		26.9	%		27.0	%		28.2	%		27.4	%		27.2	%
Administrative expense ratio		11.9	%		11.8	%		11.7	%		11.7	%		12.3	%		11.9	%		11.8	%		11.8	%

Combined ratio		90.8	%		92.3	%		92.1	%		90.3	%		88.9	%		91.5	%		89.6	%		90.4	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		51.1	%		51.3	%		51.6	%		51.3	%		51.7	%		51.2	%		51.6	%		51.5	%
CAY policy acquisition cost and administrative expense ratio ex Cats		40.1	%		40.0	%		38.8	%		38.7	%		39.3	%		40.1	%		39.3	%		39.0	%

CAY combined ratio ex Cats		91.2	%		91.3	%		90.4	%		90.0	%		91.0	%		91.3	%		90.9	%		90.5	%

Catastrophe losses—pre-tax	$	9		$	25		$	85		$	80		$	26		$	34		$	41		$	206
Favorable prior period development (PPD)—pre-tax	$	(20	)	$	(4	)	$	(46	)	$	(72	)	$	(72	)	$	(24	)	$	(94	)	$	(212	)
% Change versus prior year period
Net premiums written		2.7	%		0.4	%		3.4	%		5.9	%		9.6	%		1.5	%		8.6	%		6.6	%
Net premiums earned		3.0	%		0.3	%		3.5	%		4.5	%		7.1	%		1.7	%		7.9	%		5.9	%
Net premiums written constant $		8.5	%		6.0	%		7.9	%		7.5	%		5.1	%		7.2	%		3.1	%		5.3	%
Net premiums earned constant $		9.2	%		6.3	%		7.9	%		5.9	%		2.0	%		7.8	%		2.5	%		4.7	%
Other ratios
Net premiums written/gross premiums written		79	%		83	%		82	%		82	%		80	%		81	%		82	%		82	%

										Constant $			YTD			YTD						Constant $
Production by Region—Net premiums written	2Q-19			2Q-18			% Change			% Change			2019			2018			% Change			% Change
Europe	$	810		$	804			0.8	%		7.0	%	$	1,916		$	1,914			0.1	%		5.4	%
Latin America		573			550			4.2	%		10.9	%		1,106			1,078			2.6	%		11.8	%
Asia		792			764			3.8	%		8.6	%		1,461			1,421			2.8	%		6.7	%
Other⁽¹⁾		83			81			1.8	%		6.5	%		170			170			-0.2	%		4.7	%

Total	$	2,258		$	2,199			2.7	%		8.5	%	$	4,653		$	4,583			1.5	%		7.2	%

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


Overseas General Insurance		Page 14

Chubb Limited

Segment Results—Consecutive Quarters

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

(Unaudited)

Global Reinsurance


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	237		$	221		$	117		$	167		$	233		$	458		$	438		$	722
Net premiums written		197			202			117			164			197			399			390			671
Net premiums earned		159			168			178			157			167			327			335			670
Losses and loss expenses		90			76			243			86			83			166			150			479
Policy acquisition costs		42			43			42			40			40			85			80			162
Administrative expenses		7			10			12			10			9			17			19			41

Underwriting income (loss)		20			39			(119	)		21			35			59			86			(12	)
Net investment income		55			56			65			63			65			111			129			257
Other income (expense)—operating		15			9			6			13			6			24			13			32

Segment income (loss)	$	90		$	104		$	(48	)	$	97		$	106		$	194		$	228		$	277

CAY Underwriting income ex Cats	$	30		$	31		$	27		$	27		$	28		$	61		$	67		$	121
Combined ratio
Loss and loss expense ratio		55.9	%		45.7	%		137.1	%		55.0	%		49.4	%		50.6	%		44.8	%		71.6	%
Policy acquisition cost ratio		26.9	%		25.4	%		23.7	%		25.2	%		24.2	%		26.1	%		23.9	%		24.2	%
Administrative expense ratio		4.9	%		5.7	%		6.1	%		6.5	%		5.7	%		5.4	%		5.7	%		6.0	%

Combined ratio		87.7	%		76.8	%		166.9	%		86.7	%		79.3	%		82.1	%		74.4	%		101.8	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		49.7	%		50.5	%		50.1	%		51.2	%		53.0	%		50.1	%		50.4	%		50.5	%
CAY policy acquisition cost and administrative expense ratio ex Cats		32.0	%		31.0	%		33.1	%		31.6	%		30.5	%		31.5	%		29.9	%		31.1	%

CAY combined ratio ex Cats		81.7	%		81.5	%		83.2	%		82.8	%		83.5	%		81.6	%		80.3	%		81.6	%

Catastrophe reinstatement premiums collected—pre-tax	$	—		$	—		$	18		$	4		$	—		$	—		$	—		$	22
Catastrophe losses—pre-tax	$	10		$	—		$	160		$	34		$	9		$	10		$	11		$	205
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	—		$	(8	)	$	4		$	(24	)	$	(16	)	$	(8	)	$	(30	)	$	(50	)
% Change versus prior year period
Net premiums written as reported		0.2	%		4.4	%		11.0	%		-14.3	%		3.8	%		2.3	%		0.4	%		-2.1	%
Net premiums earned as reported		-5.0	%		0.1	%		10.2	%		-15.7	%		-0.6	%		-2.5	%		-6.1	%		-4.9	%
Net premiums written constant $		1.3	%		6.4	%		11.7	%		-14.7	%		1.5	%		3.8	%		-1.7	%		-3.3	%
Net premiums earned constant $		-3.5	%		2.6	%		10.6	%		-16.0	%		-3.1	%		-0.5	%		-8.2	%		-6.0	%
Other ratios
Net premiums written/gross premiums written		83	%		91	%		99	%		98	%		85	%		87	%		89	%		93	%


Global Reinsurance		Page 15

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Life Insurance


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	612		$	611		$	614		$	599		$	599		$	1,223		$	1,191		$	2,404
Net premiums written		579			579			582			564			565			1,158			1,124			2,270
Net premiums earned		571			561			575			551			552			1,132			1,092			2,218
Losses and loss expenses		189			202			182			195			184			391			389			766
Policy benefits ⁽¹⁾		161			196			162			127			150			357			301			590
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		3			(30	)		20			14			10			(27	)		4			38
Policy acquisition costs		150			128			152			139			138			278			266			557
Administrative expenses		78			79			75			77			80			157			158			310
Net investment income		97			89			88			85			85			186			168			341

Life Insurance underwriting income⁽²⁾		87			75			72			84			75			162			142			298
Other income (expense)—operating		10			10			18			(6	)		2			20			—			12
Amortization expense of purchased intangibles		(1	)		—			(1	)		—			—			(1	)		(1	)		(2	)

Segment income	$	96		$	85		$	89		$	78		$	77		$	181		$	141		$	308

% Change versus prior year period
Net premiums written		2.5	%		3.5	%		4.8	%		4.8	%		8.0	%		3.0	%		7.4	%		6.1	%
Net premiums earned		3.4	%		3.9	%		3.9	%		4.6	%		7.2	%		3.6	%		7.0	%		5.6	%
Net premiums written constant $		4.3	%		5.2	%		6.3	%		5.1	%		6.5	%		4.7	%		5.8	%		5.7	%
Net premiums earned constant $		5.2	%		5.5	%		5.4	%		4.9	%		5.7	%		5.4	%		5.4	%		5.3	%

(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.

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


								Constant $			YTD		YTD					Constant $
	2Q-19		2Q-18		% Change			% Change			2019		2018		% Change			% Change
International life insurance net premiums written	$	229	$	220		4.4	%		8.0	%	$	456	$	437		4.4	%		7.7	%
International life insurance deposits ⁽³⁾		369		392		-6.1	%		-2.4	%		690		771		-10.5	%		-7.2	%

Total international life insurance net premiums written and deposits	$	598	$	612		-2.3	%		1.4	%	$	1,146	$	1,208		-5.1	%		-1.8	%

International life insurance segment income	$	42	$	25		62.7	%		70.2	%	$	76	$	42		78.0	%		84.9	%

(3)	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.


Life Insurance		Page 16

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Corporate


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Gross premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net premiums written		—			—			—			—			—			—			—			—
Net premiums earned		—			—			—			—			—			—			—			—
Losses and loss expenses		34			11			(19	)		13			48			45			59			53
Policy acquisition costs		—			—			—			—			—			—			—			—
Administrative expenses		74			63			95			58			70			137			142			295

Underwriting loss		(108	)		(74	)		(76	)		(71	)		(118	)		(182	)		(201	)		(348	)
Adjusted net investment income		10			9			8			11			10			19			20			39
Other expense—operating		(4	)		(7	)		(8	)		(8	)		(2	)		(11	)		(9	)		(25	)
Adjusted interest expense		(145	)		(145	)		(158	)		(170	)		(177	)		(290	)		(346	)		(674	)
Amortization expense of purchased intangibles		(54	)		(55	)		(63	)		(64	)		(64	)		(109	)		(128	)		(255	)
Income tax expense		(216	)		(202	)		(192	)		(183	)		(218	)		(418	)		(367	)		(742	)

Core operating loss		(517	)		(474	)		(489	)		(485	)		(569	)		(991	)		(1,031	)		(2,005	)
Chubb integration expenses, net of tax		(3	)		(2	)		(15	)		(14	)		(10	)		(5	)		(18	)		(47	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(32	)		(33	)		(42	)		(42	)		(41	)		(65	)		(91	)		(175	)
Adjusted net realized gains (losses), net of tax⁽¹⁾		(10	)		(95	)		(523	)		165			92			(105	)		135			(223	)

Net loss	$	(562	)	$	(604	)	$	(1,069	)	$	(376	)	$	(528	)	$	(1,166	)	$	(1,005	)	$	(2,450	)

Unfavorable (favorable) prior period development (PPD)—pre-tax	$	33		$	10		$	(22	)	$	12		$	45		$	43		$	55		$	45

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Corporate		Page 17

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 June 30, 2017	$	60,394		$	12,485		$	47,909
Losses and loss expenses incurred		8,410			2,163			6,247
Losses and loss expenses paid		(5,207	)		(909	)		(4,298	)		69	%
Other (incl. foreign exch. revaluation)		556			131			425

Balance at September 30, 2017	$	64,153		$	13,870		$	50,283
Losses and loss expenses incurred		5,755			1,483			4,272
Losses and loss expenses paid		(6,419	)		(1,298	)		(5,121	)		120	%
Other (incl. foreign exch. revaluation)		(310	)		(41	)		(269	)

Balance at December 31, 2017	$	63,179		$	14,014		$	49,165
Losses and loss expenses incurred		5,028			926			4,102
Losses and loss expenses paid		(5,448	)		(1,206	)		(4,242	)		103	%
Other (incl. foreign exch. revaluation)		380			88			292

Balance at March 31, 2018	$	63,139		$	13,822		$	49,317
Losses and loss expenses incurred		5,458			971			4,487
Losses and loss expenses paid		(5,304	)		(931	)		(4,373	)		97	%
Other (incl. foreign exch. revaluation)		(515	)		(127	)		(388	)

Balance at June 30, 2018	$	62,778		$	13,735		$	49,043
Losses and loss expenses incurred		6,472			1,604			4,868
Losses and loss expenses paid		(5,771	)		(1,268	)		(4,503	)		93	%
Other (incl. foreign exch. revaluation)		(450	)		(106	)		(344	)

Balance at September 30, 2018	$	63,029		$	13,965		$	49,064
Losses and loss expenses incurred		6,687			2,077			4,610
Losses and loss expenses paid		(6,556	)		(1,334	)		(5,222	)		113	%
Other (incl. foreign exch. revaluation)		(200	)		(19	)		(181	)

Balance at December 31, 2018	$	62,960		$	14,689		$	48,271
Losses and loss expenses incurred		5,261			1,163			4,098
Losses and loss expenses paid		(5,197	)		(1,178	)		(4,019	)		98	%
Other (incl. foreign exch. revaluation)		119			33			86

Balance at March 31, 2019	$	63,143		$	14,707		$	48,436
Losses and loss expenses incurred		5,758			1,043			4,715
Losses and loss expenses paid		(5,581	)		(1,489	)		(4,092	)		87	%
Other (incl. foreign exch. revaluation)		(115	)		(28	)		(87	)

Balance at June 30, 2019	$	63,205		$	14,233		$	48,972
Add net recoverable on paid losses		—			1,212			(1,212	)

Balance including net recoverable on paid losses	$	63,205		$	15,445		$	47,760


Loss Reserve Rollforward		Page 18

Chubb Limited

Reinsurance Recoverable Analysis

(in millions of U.S. dollars)

(Unaudited)

Net Reinsurance Recoverable by Division


	June 30			March 31			December 31
	2019			2019			2018
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	1,079		$	1,124		$	980
Brandywine and Other Run-off		209			381			396

Total	$	1,288		$	1,505		$	1,376

Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	13,315		$	13,720		$	13,705
Brandywine and Other Run-off		1,166			1,235			1,235

Total	$	14,481		$	14,955		$	14,940

Gross reinsurance recoverable
Active operations	$	14,394		$	14,844		$	14,685
Brandywine and Other Run-off		1,375			1,616			1,631

Total	$	15,769		$	16,460		$	16,316

Provision for uncollectible reinsurance ⁽¹⁾
Active operations	$	(187	)	$	(187	)	$	(185	)
Brandywine and Other Run-off		(137	)		(136	)		(138	)

Total	$	(324	)	$	(323	)	$	(323	)

Net reinsurance recoverable
Active operations	$	14,207		$	14,657		$	14,500
Brandywine and Other Run-off		1,238			1,480			1,493

Total	$	15,445		$	16,137		$	15,993

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $3.9 billion.


Reinsurance Recoverable		Page 19

Chubb Limited

Investment Portfolio

(in millions of U.S. dollars)

(Unaudited)


	June 30					March 31					December 31
	2019					2019					2018
Market Value
Fixed maturities available for sale	$	82,410				$	80,663				$	78,470
Fixed maturities held to maturity		13,177					13,240					13,259
Short-term investments		3,808					3,078					3,016

Total fixed maturities	$	99,395				$	96,981				$	94,745

Asset Allocation by Market Value
Treasury	$	4,519		5	%	$	4,551		5	%	$	4,799		5	%
Agency		314		0	%		392		0	%		528		1	%
Corporate and asset-backed		32,261		32	%		30,364		31	%		29,091		31	%
Mortgage-backed		20,468		21	%		18,924		20	%		18,026		19	%
Municipal		13,854		14	%		15,796		16	%		16,327		17	%
Non-U.S.		24,171		24	%		23,876		25	%		22,958		24	%
Short-term investments		3,808		4	%		3,078		3	%		3,016		3	%

Total fixed maturities	$	99,395		100	%	$	96,981		100	%	$	94,745		100	%

Credit Quality by Market Value
AAA	$	15,276		15	%	$	14,917		16	%	$	14,571		15	%
AA		37,211		38	%		37,023		38	%		36,715		39	%
A		18,476		19	%		17,867		19	%		17,253		18	%
BBB		12,682		13	%		11,961		12	%		12,035		13	%
BB		9,161		9	%		8,807		9	%		8,363		9	%
B		6,375		6	%		6,148		6	%		5,596		6	%
Other		214		0	%		258		0	%		212		0	%

Total fixed maturities	$	99,395		100	%	$	96,981		100	%	$	94,745		100	%

Cost/Amortized Cost
Fixed maturities available for sale	$	80,119				$	79,624				$	79,323
Fixed maturities held to maturity		12,838					13,136					13,435
Short-term investments		3,808					3,078					3,016

Subtotal fixed maturities		96,765					95,838					95,774
Equity securities		715					821					770
Other investments		5,968					5,562					5,277

Total investment portfolio	$	103,448				$	102,221				$	101,821

Avg. duration of fixed maturities		3.8 years					3.6 years					3.7 years
Avg. market yield of fixed maturities		2.9	%				3.2	%				3.7	%
Avg. credit quality		A/Aa					A/Aa					A/Aa
Avg. yield on invested assets⁽¹⁾		3.5	%				3.5	%				3.5	%

(1)	Calculated using adjusted net investment income.


Investments		Page 20

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, 2019
Agency residential mortgage-backed (RMBS)	$	187	$	16,610	$	—	$	—	$	—	$	16,797
Non-agency RMBS		35		85		75		23		18		236
Commercial mortgage-backed		3,069		246		120		—		—		3,435

Total mortgage-backed securities at market value	$	3,291	$	16,941	$	195	$	23	$	18	$	20,468

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


Market Value at June 30, 2019	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total

Asset-backed	$	2,917	$	274	$	42	$	33	$	3,266
Banks		—		33		2,183		1,192		3,408
Basic Materials		—		—		102		196		298
Communications		—		164		476		1,015		1,655
Consumer, Cyclical		—		332		516		559		1,407
Consumer, Non-Cyclical		61		536		1,590		1,483		3,670
Diversified Financial Services		7		105		344		318		774
Energy		—		50		184		563		797
Industrial		—		45		637		746		1,428
Utilities		—		17		854		390		1,261
All Others		156		404		1,382		1,027		2,969

Total	$	3,141	$	1,960	$	8,310	$	7,522	$	20,933


Market Value at June 30, 2019	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total

Asset-backed	$	—	$	3	$	6	$	9
Banks		—		—		—		—
Basic Materials		395		182		—		577
Communications		954		731		29		1,714
Consumer, Cyclical		1,140		629		19		1,788
Consumer, Non-Cyclical		1,209		1,269		33		2,511
Diversified Financial Services		226		160		—		386
Energy		749		392		8		1,149
Industrial		716		666		21		1,403
Utilities		263		18		19		300
All Others		931		534		26		1,491

Total	$	6,583	$	4,584	$	161	$	11,328


Investments 2		Page 21

Chubb Limited

Investment Portfolio—3

(in millions of U.S. dollars)

(Unaudited)

Non-U.S. Fixed Income Portfolio

June 30, 2019


Non-U.S. Government Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

United Kingdom	$	—	$	1,099	$	—	$	—	$	—	$	1,099
Republic of Korea		—		1,060		—		—		—		1,060
Canada		846		—		—		—		—		846
Federative Republic of Brazil		—		—		—		—		737		737
Province of Ontario		—		9		623		—		—		632
United Mexican States		—		—		447		140		—		587
Kingdom of Thailand		—		—		555		—		—		555
Province of Quebec		—		487		—		—		—		487
Commonwealth of Australia		345		3		—		—		—		348
Federal Republic of Germany		299		—		—		—		—		299
Other Non-U.S. Government Securities		550		1,453		930		644		1,035		4,612

Total	$	2,040	$	4,111	$	2,555	$	784	$	1,772	$	11,262


Non-U.S. Corporate Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

United Kingdom	$	75	$	110	$	713	$	829	$	374	$	2,101
Canada		99		290		343		518		348		1,598
United States ⁽¹⁾		3		3		206		330		659		1,201
France		8		38		644		295		42		1,027
Australia		109		200		361		134		24		828
Netherlands		39		95		279		150		98		661
Japan		—		48		431		74		—		553
Germany		65		42		143		252		33		535
Switzerland		48		2		210		191		29		480
China		—		—		242		63		37		342
Other Non-U.S. Corporate Securities		409		418		938		1,104		714		3,583

Total	$	855	$	1,246	$	4,510	$	3,940	$	2,358	$	12,909

(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 22

Chubb Limited

Investment Portfolio—4

(in millions of U.S. dollars)

(Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures


	June 30, 2019	Market Value		Rating
1	Wells Fargo & Co	$	616	A-
2	JP Morgan Chase & Co		566	A-
3	Bank of America Corp		549	A-
4	Comcast Corp		453	A-
5	HSBC Holdings Plc		372	A
6	Verizon Communications Inc		370	BBB+
7	AT&T Inc		366	BBB
8	Citigroup Inc		332	BBB+
9	Anheuser-Busch InBev NV		326	A-
10	Morgan Stanley		318	BBB+


Investments 4		Page 23

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Three months ended June 30, 2019
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax
Fixed income investments ⁽¹⁾	$	(160	)	$	—		$	(160	)	$	1,240		$	(221	)	$	1,019		$	1,080		$	(221	)	$	859
Public equity ⁽¹⁾:
Realized gains (losses) on sales		23			(5	)		18			—			—			—			23			(5	)		18
Mark-to-market		(27	)		6			(21	)		—			—			—			(27	)		6			(21	)
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		240			(3	)		237			—			—			—			240			(3	)		237

Total investment portfolio		76			(2	)		74			1,240			(221	)		1,019			1,316			(223	)		1,093
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(85	)		—			(85	)		—			—			—			(85	)		—			(85	)
Foreign exchange		(11	)		4			(7	)		(97	)		2			(95	)		(108	)		6			(102	)
Partially-owned entities ⁽³⁾		9			(1	)		8			—			—			—			9			(1	)		8
Other ⁽⁴⁾		—			—			—			(18	)		3			(15	)		(18	)		3			(15	)

Net gains (losses)	$	(11	)	$	1		$	(10	)	$	1,125		$	(216	)	$	909		$	1,114		$	(215	)	$	899


(1) The quarter includes pre-tax realized losses on derivatives of: $172 million in fixed income and $9 million in public equity. Other-than-temporary impairments for the quarter in realized losses were $13 million pre-tax for fixed maturities. (2) The quarter includes $20 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 gains (losses) are primarily related to the company’s postretirement programs.

	Three months ended June 30, 2018
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax
Fixed income investments ⁽⁵⁾	$	(57	)	$	9		$	(48	)	$	(497	)	$	62		$	(435	)	$	(554	)	$	71		$	(483	)
Public equity:
Realized gains (losses) on sales		5			(1	)		4			—			—			—			5			(1	)		4
Mark-to-market		(8	)		2			(6	)		—			—			—			(8	)		2			(6	)
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		86			(8	)		78			—			—			—			86			(8	)		78

Total investment portfolio		26			2			28			(497	)		62			(435	)		(471	)		64			(407	)
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁶⁾		(3	)		—			(3	)		—			—			—			(3	)		—			(3	)
Foreign exchange		140			(27	)		113			(574	)		4			(570	)		(434	)		(23	)		(457	)
Partially-owned entities ⁽⁷⁾		—			—			—			—			—			—			—			—			—
Other ⁽⁸⁾		(57	)		11			(46	)		(17	)		5			(12	)		(74	)		16			(58	)

Net gains (losses)	$	106		$	(14	)	$	92		$	(1,088	)	$	71		$	(1,017	)	$	(982	)	$	57		$	(925	)

(5)	The quarter includes $24 million pre-tax realized gains on fixed income derivatives. Other-than-temporary impairments for the quarter in realized losses were $4 million pre-tax for fixed maturities.

(6)	The quarter includes $44 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.

(8)

Other realized losses, pre-tax, primarily include $36 million related to the early redemption of the $1.0 billion junior subordinated capital securities in April 2018 and $22 million related to lease impairments. Other unrealized gains (losses) are primarily related to the company’s
post-retirement programs.


Net Gains (Losses)		Page 24

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Six months ended June 30, 2019
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax
Fixed income investments ⁽¹⁾	$	(311	)	$	8		$	(303	)	$	3,129		$	(551	)	$	2,578		$	2,818		$	(543	)	$	2,275
Public equity ⁽¹⁾:
Realized gains (losses) on sales		1			—			1			—			—			—			1			—			1
Mark-to-market		30			(4	)		26			—			—			—			30			(4	)		26
Private equity:
Realized gains (losses) on sales		(2	)		—			(2	)		—			—			—			(2	)		—			(2	)
Mark-to-market		193			2			195			—			—			—			193			2			195

Total investment portfolio		(89	)		6			(83	)		3,129			(551	)		2,578			3,040			(545	)		2,495
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(34	)		—			(34	)		—			—			—			(34	)		—			(34	)
Foreign exchange		2			1			3			50			(5	)		45			52			(4	)		48
Partially-owned entities ⁽³⁾		10			(1	)		9			—			—			—			10			(1	)		9
Other ⁽⁴⁾		—			—			—			(45	)		9			(36	)		(45	)		9			(36	)

Net gains (losses)	$	(111	)	$	6		$	(105	)	$	3,134		$	(547	)	$	2,587		$	3,023		$	(541	)	$	2,482

(1)	Year to date includes pre-tax realized losses on derivatives of: $279 million in fixed income and $32 million in public equity. Year to date other-than-temporary impairments in realized losses were $26 million pre-tax for fixed maturities.

(2)	Year to date includes $83 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 gains (losses) are primarily related to the company’s postretirement programs.


	Six months ended June 30, 2018
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax			Gains (Losses) Pre-Tax			Tax (Expense) Benefit			Gains (Losses) After-Tax
Fixed income investments ⁽⁵⁾	$	(63	)	$	11		$	(52	)	$	(1,708	)	$	285		$	(1,423	)	$	(1,771	)	$	296		$	(1,475	)
Public equity:
Realized gains (losses) on sales		15			(3	)		12			—			—			—			15			(3	)		12
Mark-to-market		(30	)		6			(24	)		—			—			—			(30	)		6			(24	)
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		160			(18	)		142			—			—			—			160			(18	)		142

Total investment portfolio		82			(4	)		78			(1,708	)		285			(1,423	)		(1,626	)		281			(1,345	)
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁶⁾		57			—			57			—			—			—			57			—			57
Foreign exchange		63			(18	)		45			(177	)		(15	)		(192	)		(114	)		(33	)		(147	)
Partially-owned entities ⁽⁷⁾		(1	)		—			(1	)		—			—			—			(1	)		—			(1	)
Other ⁽⁸⁾		(55	)		11			(44	)		(40	)		9			(31	)		(95	)		20			(75	)

Net gains (losses)	$	146		$	(11	)	$	135		$	(1,925	)	$	279		$	(1,646	)	$	(1,779	)	$	268		$	(1,511	)

(5)	Year to date includes $41 million pre-tax realized gains on fixed income derivatives. Year to date other-than-temporary impairments in realized losses were $5 million pre-tax for fixed maturities.

(6)	Year to date includes $22 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.

(8)


Net Gains (Losses) 2		Page 25

Chubb Limited

Debt and Capital

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

(Unaudited)


	June 30			March 31			December 31			December 31
	2019			2019			2018			2017

Financial Debt:
Total short-term debt ⁽¹⁾	$	9		$	509		$	509		$	1,013
Total long-term debt ⁽²⁾		13,371			12,071			12,087			11,556

Total financial debt	$	13,380		$	12,580		$	12,596		$	12,569
Hybrid debt:
Total trust preferred securities		308			308			308			308

Total	$	13,688		$	12,888		$	12,904		$	12,877

Capitalization:
Shareholders’ equity	$	53,802		$	52,355		$	50,312		$	51,172
Hybrid debt		308			308			308			308
Financial debt		13,380			12,580			12,596			12,569

Total capitalization	$	67,490		$	65,243		$	63,216		$	64,049

Leverage ratios (based on total capital):
Hybrid debt		0.5	%		0.5	%		0.5	%		0.5	%
Financial debt		19.8	%		19.3	%		19.9	%		19.6	%

Total hybrid & financial debt		20.3	%		19.8	%		20.4	%		20.1	%

Note: As of June 30, 2019, there was $0.4 billion usage of credit facilities on a total commitment of $1.0 billion.

(1)	In June 2019, the $500 million 5.9% senior notes matured and were fully paid.

(2)	In June 2019, we issued $1.3 billion of senior notes in the European market (€575 million at 0.875% due 2027 and €575 million at 1.4% due 2031).


Debt and Capital		Page 26

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
	2019			2018			2019			2018

Numerator
Core operating income to common shares	$	1,195		$	1,253		$	2,365		$	2,350
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax		(38	)		(52	)		(79	)		(111	)
Tax benefit on amortization adjustment		6			11			14			20
Chubb integration expenses, pre-tax		(4	)		(13	)		(7	)		(23	)
Tax benefit on Chubb integration expenses		1			3			2			5
Adjusted net realized gains (losses), pre-tax		(11	)		106			(111	)		146
Tax (expense) benefit on adjusted net realized gains (losses)		1			(14	)		6			(11	)

Net income	$	1,150		$	1,294		$	2,190		$	2,376

Rollforward of Common Shares Outstanding
Shares—beginning of period		458,179,205			465,831,486			459,203,378			463,833,179
Repurchase of shares		(2,584,466	)		(2,443,855	)		(5,338,220	)		(2,443,855	)
Shares issued, excluding option exercises		55,208			19,978			1,223,084			1,595,767
Issued for option exercises		427,872			94,555			989,577			517,073

Shares—end of period		456,077,819			463,502,164			456,077,819			463,502,164

Denominator
Weighted average shares outstanding ⁽¹⁾		457,224,455			465,276,597			458,010,447			465,488,724
Effect of other dilutive securities		2,945,237			3,103,727			2,863,109			3,489,013

Adj. wtd. avg. shares outstanding and assumed conversions		460,169,692			468,380,324			460,873,556			468,977,737

Basic earnings per share
Core operating income	$	2.61		$	2.69		$	5.16		$	5.05
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(0.07	)		(0.09	)		(0.14	)		(0.19	)
Chubb integration expenses, net of tax		(0.01	)		(0.02	)		(0.01	)		(0.04	)
Adjusted net realized gains (losses), net of tax		(0.01	)		0.20			(0.23	)		0.28

Net income	$	2.52		$	2.78		$	4.78		$	5.10

Diluted earnings per share
Core operating income	$	2.60		$	2.68		$	5.13		$	5.01
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(0.07	)		(0.09	)		(0.14	)		(0.19	)
Chubb integration expenses, net of tax		(0.01	)		(0.02	)		(0.01	)		(0.04	)
Adjusted net realized gains (losses), net of tax		(0.02	)		0.19			(0.23	)		0.29

Net income	$	2.50		$	2.76		$	4.75		$	5.07

(1)	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 27

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
	2019			2019			2018			2018
Shareholders’ equity	$	53,802		$	52,355		$	50,312		$	50,971
Less: goodwill and other intangible assets, net of tax		20,170			20,070			20,054			20,380

Numerator for tangible book value per share	$	33,632		$	32,285		$	30,258		$	30,591

Book value—% change over prior quarter		2.8	%		4.1	%		-1.2	%		-0.6	%
Tangible book value—% change over prior quarter		4.2	%		6.7	%		-1.8	%		0.0	%
Denominator		456,077,819			458,179,205			459,203,378			463,502,164

Book value per common share	$	117.97		$	114.27		$	109.56		$	109.97
Tangible book value per common share	$	73.74		$	70.46		$	65.89		$	66.00
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter ⁽¹⁾	$	52,355		$	50,300		$	50,934		$	51,287
Core operating income		1,195			1,170			935			1,253
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(32	)		(33	)		(42	)		(41	)
Chubb integration expenses, net of tax		(3	)		(2	)		(15	)		(10	)
Adjusted net realized gains (losses), net of tax ⁽²⁾		(10	)		(95	)		(523	)		92
Net unrealized gains (losses) on the investment portfolio		1,019			1,559			(117	)		(435	)
Repurchase of shares		(376	)		(367	)		(318	)		(324	)
Dividend declared on common shares		(344	)		(335	)		(336	)		(339	)
Cumulative translation		(95	)		140			(113	)		(570	)
Postretirement benefit liability		(15	)		(21	)		(205	)		(13	)
Other⁽³⁾		108			39			112			71

	$	53,802		$	52,355		$	50,312		$	50,971

(1)	January 1, 2019 included a $12 million after-tax reduction to beginning equity related to the adoption of new accounting guidance on premium amortization of purchased callable debt securities.

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

(3)	Other primarily includes proceeds from exercise of stock options and stock compensation, offset by the value of any share cancellations for restricted stock vesting taxes.


Reconciliation Book Value		Page 28

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).

Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results 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.

Underwriting income is calculated by subtracting adjusted losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, Chubb integration expense, income tax expense and adjusted net realized gains (losses).

CAY underwriting income excluding catastrophe losses (Cats) is underwriting income adjusted to exclude Cats and prior period development (PPD). We believe it is useful to exclude Cats, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

Segment income (loss) includes underwriting income, adjusted net investment income, other income (expense) – operating, and amortization expense of purchased intangibles.

Adjusted losses and loss expenses include 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 impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to adjusted losses and loss expenses.

Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from the acquisition of The Chubb Corporation (Chubb Corp). We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.

Adjusted interest expense is interest expense excluding the amortization of the fair value adjustment on acquired long-term debt, related to the Chubb Corp acquisition due to the size and complexity of this acquisition.

Other income (expense) – operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from core operating income in order to enhance the understanding of our results of underwriting 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.

P&C underwriting income and P&C combined ratio exclude the Life Insurance segment. P&C loss and loss expense ratio and P&C combined ratio include adjusted losses and loss expenses in the ratio numerator. P&C expense ratio and P&C combined ratio include policy acquisition costs and administrative expenses in the ratio numerator. A reconciliation of combined ratio to P&C combined ratio is provided on pages 32-35.

CAY P&C combined ratio excluding catastrophe losses excludes Cats and PPD from the P&C combined ratio. We exclude Cats as they are not predictable as to timing and amount and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. The combined ratio numerator is adjusted to exclude Cats, net premiums earned adjustments on PPD, prior period expense adjustments and reinstatement premiums on PPD, and the denominator is adjusted to exclude net premiums earned adjustments on PPD and reinstatement premiums on Cats and PPD. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net premiums earned when calculating the ratios. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our P&C business that may be obscured by these items. This measure is commonly reported among our peer companies and allows for a better comparison.

Expense ratio excluding accident and health (A&H) excludes the impact of our A&H business from our 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 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.

Core operating income, net of tax, excludes from net income, the after-tax impact of adjusted net realized gains (losses), Chubb integration expenses, and the amortization of fair value adjustment of acquired invested assets and long-term debt related to the Chubb Corp acquisition. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (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 the amortization of the fair value adjustments related to purchased invested assets and long-term debt and Chubb integration expenses due to the size and complexity of this acquisition. These integration expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. References to core operating income measures mean net of tax, whether or not noted.

Book value per common share, is shareholders’ equity divided by the shares outstanding. Tangible book value per common share, 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.

International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). 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.

Net premiums written adjusted primarily for additional reinsurance is net premiums written in the company’s North America Personal P&C Insurance segment, adjusted to exclude the year-over-year net impact for the quarter and year to date of $57 million and $75 million, respectively, of additional reinsurance, reinstatement premiums, and accounting actions. In addition to excluding additional reinsurance and the accounting actions, we exclude the impact of Fireman’s Fund non-renewal and unearned premium reserve (UPR) transfer. We believe this measure is meaningful to evaluate trends in the underlying business on a comparable basis.


Reconciliation Non-GAAP		Page 29

Chubb Limited

Non-GAAP Financial Measures—2

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

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

Core operating effective tax rate

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


																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Tax expense, as reported	$	208		$	188		$	159		$	183		$	218		$	396		$	353		$	695
Less: tax benefit on amortization of fair value of acquired invested assets and debt		(6	)		(8	)		(8	)		(12	)		(11	)		(14	)		(20	)		(40	)
Less: tax benefit on Chubb integration expenses		(1	)		(1	)		(5	)		(2	)		(3	)		(2	)		(5	)		(12	)
Less: tax expense (benefit) on adjusted net realized gains (losses)		(1	)		(5	)		(20	)		14			14			(6	)		11			5

Tax expense, adjusted	$	216		$	202		$	192		$	183		$	218		$	418		$	367		$	742

Income before tax, as reported	$	1,358		$	1,228		$	514		$	1,414		$	1,512		$	2,586		$	2,729		$	4,657
Less: amortization of fair value of acquired invested assets and debt		(38	)		(41	)		(50	)		(54	)		(52	)		(79	)		(111	)		(215	)
Less: Chubb integration expenses		(4	)		(3	)		(20	)		(16	)		(13	)		(7	)		(23	)		(59	)
Less: adjusted realized gains (losses)		(230	)		(96	)		(682	)		27			10			(326	)		6			(649	)
Less: realized gains (losses) related to unconsolidated entities		219			(4	)		139			152			96			215			140			431

Core operating income before tax	$	1,411		$	1,372		$	1,127		$	1,305		$	1,471		$	2,783		$	2,717		$	5,149

Effective tax rate		15.3	%		15.3	%		31.1	%		12.9	%		14.4	%		15.3	%		12.9	%		14.9	%
Adjustment for tax impact of amortization of fair value of acquired invested assets and debt		0.1	%		0.1	%		0.0	%		0.4	%		0.2	%		0.1	%		0.2	%		0.2	%
Adjustment for tax impact of Chubb integration expenses		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%		0.0	%		0.1	%		0.1	%
Adjustment for tax impact of adjusted net realized gains (losses)		-0.1	%		-0.7	%		-14.1	%		0.8	%		0.1	%		-0.4	%		0.3	%		-0.8	%

Core operating effective tax rate		15.3	%		14.7	%		17.1	%		14.1	%		14.8	%		15.0	%		13.5	%		14.4	%


Core operating income The following table presents the reconciliation of Net income to Core operating income:
																YTD			YTD			Full Year
	2Q-19			1Q-19			4Q-18			3Q-18			2Q-18			2019			2018			2018
Net income, as reported	$	1,150		$	1,040		$	355		$	1,231		$	1,294		$	2,190		$	2,376		$	3,962
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax		(38	)		(41	)		(50	)		(54	)		(52	)		(79	)		(111	)		(215	)
Tax benefit on amortization adjustment		6			8			8			12			11			14			20			40
Chubb integration expenses, pre-tax		(4	)		(3	)		(20	)		(16	)		(13	)		(7	)		(23	)		(59	)
Tax benefit on Chubb integration expenses		1			1			5			2			3			2			5			12
Adjusted realized gains (losses), pre-tax		(230	)		(96	)		(682	)		27			10			(326	)		6			(649	)
Net realized gains (losses) related to unconsolidated entities, pre-tax ⁽¹⁾		219			(4	)		139			152			96			215			140			431
Tax (expense) benefit on adjusted net realized gains (losses)		1			5			20			(14	)		(14	)		6			(11	)		(5	)

Core operating income	$	1,195		$	1,170		$	935		$	1,122		$	1,253		$	2,365		$	2,350		$	4,407

Catastrophe losses—after-tax	$	221		$	201		$	506		$	372		$	173		$	422		$	476		$	1,354
Favorable prior period development (PPD)—after-tax	$	(152	)	$	(161	)	$	(202	)	$	(180	)	$	(158	)	$	(313	)	$	(324	)	$	(706	)
Core operating income per share	$	2.60		$	2.54		$	2.02		$	2.41		$	2.68		$	5.13		$	5.01		$	9.44
Impact of Cats on Core operating income per share—Unfavorable	$	(0.48	)	$	(0.43	)	$	(1.09	)	$	(0.80	)	$	(0.37	)	$	(0.92	)	$	(1.02	)	$	(2.90	)
Impact of PPD on Core operating income per share—Favorable	$	0.33		$	0.35		$	0.43		$	0.39		$	0.34		$	0.68		$	0.69		$	1.51
Impact of Cats and PPD on Core operating income per share—Unfavorable	$	(0.15	)	$	(0.08	)	$	(0.66	)	$	(0.41	)	$	(0.03	)	$	(0.24	)	$	(0.33	)	$	(1.39	)

(1)	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).


Reconciliation Non-GAAP 2		Page 30

Chubb Limited

Non-GAAP Financial Measures—3

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

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

Core operating ROE

Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized financial measures. The numerator includes core operating income, net of tax. The denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. For the ROTE calculation, the denominator is also adjusted to exclude goodwill and other intangible assets, net of tax. These measures enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity and tangible equity excluding the effect of unrealized gains and losses on our investments.


							YTD			YTD			Full Year
	2Q-19			2Q-18			2019			2018			2018
Net income	$	1,150		$	1,294		$	2,190		$	2,376		$	3,962
Core operating income	$	1,195		$	1,253		$	2,365		$	2,350		$	4,407
Equity—beginning of period, as reported ⁽¹⁾	$	52,355		$	51,287		$	50,300		$	51,172		$	51,172
Less: unrealized gains (losses) on investments, net of deferred tax		1,014			45			(545	)		1,033			1,154

Equity—beginning of period, as adjusted	$	51,341		$	51,242		$	50,845		$	50,139		$	50,018

Less: goodwill and other intangible assets, net of tax	$	20,070		$	20,706		$	20,054		$	20,621		$	20,621

Equity—beginning of period, as adjusted ex goodwill and other intangible assets	$	31,271		$	30,536		$	30,791		$	29,518		$	29,397

Equity—end of period, as reported	$	53,802		$	50,971		$	53,802		$	50,971		$	50,312
Less: unrealized gains (losses) on investments, net of deferred tax		2,033			(390	)		2,033			(390	)		(545	)

Equity—end of period, as adjusted	$	51,769		$	51,361		$	51,769		$	51,361		$	50,857

Less: goodwill and other intangible assets, net of tax		20,170			20,380			20,170			20,380			20,054

Equity—end of period, as adjusted ex goodwill and other intangible assets	$	31,599		$	30,981		$	31,599		$	30,981		$	30,803

Weighted average equity, as reported	$	53,079		$	51,129		$	52,051		$	51,072		$	50,742
Weighted average equity, as adjusted	$	51,555		$	51,302		$	51,307		$	50,750		$	50,438
Weighted average equity, as adjusted ex goodwill and other intangible assets	$	31,435		$	30,759		$	31,195		$	30,250		$	30,100
ROE		8.7	%		10.1	%		8.4	%		9.3	%		7.8	%
Core operating ROE		9.3	%		9.8	%		9.2	%		9.3	%		8.7	%
Core operating ROTE		15.2	%		16.3	%		15.2	%		15.5	%		14.6	%
Private equities mark-to-market realized gains (losses), after-tax ⁽²⁾	$	237		$	78		$	195		$	142		$	382
Impact of Private equities mark-to-market if included in Core operating ROE—Favorable ⁽²⁾		1.8	pts		0.6	pt		0.8	pt		0.5	pt		0.8	pt

(1)	January 1, 2019 included a $12 million after-tax reduction to beginning equity related to the adoption of new accounting guidance on premium amortization of purchased callable debt securities.

(2)	We record the change in the fair value mark on our private equity funds as realized gains (losses) instead of investment income.


Reconciliation Non-GAAP 3		Page 31

Chubb Limited

Non-GAAP Financial Measures—4

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

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

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 following tables present the calculation of combined ratio, as reported, for each segment to P&C combined ratio, adjusted for catastrophe losses (Cats) and prior period development (PPD).


Q2 2019		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	2,214		$	747		$	316		$	1,125		$	90		$	34		$	4,526
Realized (gains) losses on crop derivatives			—			—			(7	)		—			—			—			(7	)

Adjusted losses and loss expenses	A	$	2,214		$	747		$	309		$	1,125		$	90		$	34		$	4,519

Catastrophe losses			(137	)		(117	)		(2	)		(9	)		(10	)		—			(275	)
PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			185			16			—			20			—			(33	)		188
Net premiums earned adjustments on PPD—unfavorable (favorable)			(3	)		—			—			—			—			—			(3	)
Expense adjustments—unfavorable (favorable)			(2	)		—			—			—			—			—			(2	)

PPD—gross of related adjustments—favorable (unfavorable)			180			16			—			20			—			(33	)		183

CAY loss and loss expense ex Cats	B	$	2,257		$	646		$	307		$	1,136		$	80		$	1		$	4,427

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	718		$	308		$	31		$	894		$	49		$	74		$	2,074
Expense adjustments—favorable (unfavorable)			2			—			—			—			—			—			2

Policy acquisition costs and administrative expenses, adjusted	D	$	720		$	308		$	31		$	894		$	49		$	74		$	2,076

Denominator
Net premiums earned	E	$	3,390		$	1,168		$	378		$	2,225		$	159					$	7,320
Net premiums earned adjustments on PPD—unfavorable (favorable)			(3	)		—			—			—			—						(3	)

Net premiums earned excluding adjustments	F	$	3,387		$	1,168		$	378		$	2,225		$	159					$	7,317

P&C combined ratio
Loss and loss expense ratio	A/E		65.3	%		64.0	%		81.9	%		50.6	%		55.9	%					61.7	%
Policy acquisition cost and administrative expense ratio	C/E		21.2	%		26.3	%		8.2	%		40.2	%		31.8	%					28.4	%

P&C combined ratio			86.5	%		90.3	%		90.1	%		90.8	%		87.7	%					90.1	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		66.7	%		55.3	%		81.4	%		51.1	%		49.7	%					60.5	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.2	%		26.4	%		8.2	%		40.1	%		32.0	%					28.4	%

CAY P&C combined ratio ex Cats			87.9	%		81.7	%		89.6	%		91.2	%		81.7	%					88.9	%

Combined ratio
Combined ratio																					90.2	%
Add: impact of gains and losses on crop derivatives																					-0.1	%

P&C combined ratio																					90.1	%

Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.


Reconciliation Non-GAAP 4		Page 32

Chubb Limited

Non-GAAP Financial Measures—5

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

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


YTD 2019		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	4,187		$	1,504		$	289		$	2,231		$	166		$	45		$	8,422
Realized (gains) losses on crop derivatives			—			—			(6	)		—			—			—			(6	)

Adjusted losses and loss expenses	A	$	4,187		$	1,504		$	283		$	2,231		$	166		$	45		$	8,416

Catastrophe losses			(231	)		(246	)		(4	)		(34	)		(10	)		—			(525	)
PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			316			26			61			24			8			(43	)		392
Net premiums earned adjustments on PPD—unfavorable (favorable)			(1	)		—			32			—			—			—			31
Expense adjustments—unfavorable (favorable)			(6	)		—			(3	)		—			—			—			(9	)
PPD reinstatement premiums—unfavorable (favorable)			—			(3	)		—			—			—			—			(3	)

PPD—gross of related adjustments—favorable (unfavorable)			309			23			90			24			8			(43	)		411

CAY loss and loss expense ex Cats	B	$	4,265		$	1,281		$	369		$	2,221		$	164		$	2		$	8,302

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	1,417		$	607		$	39		$	1,739		$	102		$	137		$	4,041
Expense adjustments—favorable (unfavorable)			6			—			3			—			—			—			9

Policy acquisition costs and administrative expenses, adjusted	D	$	1,423		$	607		$	42		$	1,739		$	102		$	137		$	4,050

Denominator
Net premiums earned	E	$	6,475		$	2,322		$	433		$	4,339		$	327					$	13,896
Net premiums earned adjustments on PPD—unfavorable (favorable)			(1	)		—			32			—			—						31
PPD reinstatement premiums—unfavorable (favorable)			—			(3	)		—			—			—						(3	)

Net premiums earned excluding adjustments	F	$	6,474		$	2,319		$	465		$	4,339		$	327					$	13,924

P&C combined ratio
Loss and loss expense ratio	A/E		64.7	%		64.7	%		65.5	%		51.4	%		50.6	%					60.6	%
Policy acquisition cost and administrative expense ratio	C/E		21.8	%		26.2	%		9.0	%		40.1	%		31.5	%					29.0	%

P&C combined ratio			86.5	%		90.9	%		74.5	%		91.5	%		82.1	%					89.6	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		65.9	%		55.2	%		79.5	%		51.2	%		50.1	%					59.6	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.9	%		26.2	%		9.0	%		40.1	%		31.5	%					29.1	%

CAY P&C combined ratio ex Cats			87.8	%		81.4	%		88.5	%		91.3	%		81.6	%					88.7	%

Combined ratio
Combined ratio																					89.6	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					89.6	%


Reconciliation Non-GAAP 5		Page 33

Chubb Limited

Non-GAAP Financial Measures—6

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

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


Q2 2018		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	2,084		$	728		$	289		$	1,071		$	83		$	48		$	4,303
Realized (gains) losses on crop derivatives			—			—			(8	)		—			—			—			(8	)

Adjusted losses and loss expenses	A	$	2,084		$	728		$	281		$	1,071		$	83		$	48		$	4,295

Catastrophe losses			(73	)		(101	)		(2	)		(26	)		(9	)		—			(211	)
PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			155			(7	)		—			72			16			(45	)		191
Net premiums earned adjustments on PPD—unfavorable (favorable)			(11	)		—			—			—			2			—			(9	)
Expense adjustments—unfavorable (favorable)			—			—			—			—			(1	)		—			(1	)

PPD—gross of related adjustments—favorable (unfavorable)			144			(7	)		—			72			17			(45	)		181

CAY loss and loss expense ex Cats	B	$	2,155		$	620		$	279		$	1,117		$	91		$	3		$	4,265

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	701		$	296		$	27		$	850		$	49		$	70		$	1,993
Expense adjustments—favorable (unfavorable)			—			—			—			—			1			—			1

Policy acquisition costs and administrative expenses, adjusted	D	$	701		$	296		$	27		$	850		$	50		$	70		$	1,994

Denominator
Net premiums earned	E	$	3,277		$	1,156		$	351		$	2,161		$	167					$	7,112
Net premiums earned adjustments on PPD—unfavorable (favorable)			(11	)		—			—			—			2						(9	)

Net premiums earned excluding adjustments	F	$	3,266		$	1,156		$	351		$	2,161		$	169					$	7,103

P&C combined ratio
Loss and loss expense ratio	A/E		63.6	%		63.0	%		80.0	%		49.6	%		49.4	%					60.4	%
Policy acquisition cost and administrative expense ratio	C/E		21.4	%		25.6	%		7.9	%		39.3	%		29.9	%					28.0	%

P&C combined ratio			85.0	%		88.6	%		87.9	%		88.9	%		79.3	%					88.4	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		66.0	%		53.7	%		79.3	%		51.7	%		53.0	%					60.0	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.4	%		25.6	%		7.9	%		39.3	%		30.5	%					28.1	%

CAY P&C combined ratio ex Cats			87.4	%		79.3	%		87.2	%		91.0	%		83.5	%					88.1	%

Combined ratio
Combined ratio																					88.5	%
Add: impact of gains and losses on crop derivatives																					-0.1	%

P&C combined ratio																					88.4	%


Reconciliation Non-GAAP 6		Page 34

Chubb Limited

Non-GAAP Financial Measures—7

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

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


YTD 2018		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	3,992		$	1,614		$	236		$	2,149		$	150		$	59		$	8,200
Realized (gains) losses on crop derivatives			—			—			(10	)		—			—			—			(10	)

Adjusted losses and loss expenses	A	$	3,992		$	1,614		$	226		$	2,149		$	150		$	59		$	8,190

Catastrophe losses			(151	)		(385	)		(3	)		(41	)		(11	)		—			(591	)
PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			256			(1	)		76			94			30			(55	)		400
Net premiums earned adjustments on PPD—unfavorable (favorable)			(11	)		—			40			—			3			—			32
Expense adjustments—unfavorable (favorable)			6			—			(4	)		—			(1	)		—			1
PPD reinstatement premiums—unfavorable (favorable)			4			—			—			—			—			—			4

PPD—gross of related adjustments—favorable (unfavorable)			255			(1	)		112			94			32			(55	)		437

CAY loss and loss expense ex Cats	B	$	4,096		$	1,228		$	335		$	2,202		$	171		$	4		$	8,036

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	1,404		$	598		$	23		$	1,677		$	99		$	142		$	3,943
Expense adjustments—favorable (unfavorable)			(6	)		—			4			—			1			—			(1	)

Policy acquisition costs and administrative expenses, adjusted	D	$	1,398		$	598		$	27		$	1,677		$	100		$	142		$	3,942

Denominator
Net premiums earned	E	$	6,306		$	2,296		$	394		$	4,268		$	335					$	13,599
Net premiums earned adjustments on PPD—unfavorable (favorable)			(11	)		—			40			—			3						32
PPD reinstatement premiums—unfavorable (favorable)			4			—			—			—			—						4

Net premiums earned excluding adjustments	F	$	6,299		$	2,296		$	434		$	4,268		$	338					$	13,635

P&C combined ratio
Loss and loss expense ratio	A/E		63.3	%		70.3	%		57.4	%		50.4	%		44.8	%					60.2	%
Policy acquisition cost and administrative expense ratio	C/E		22.3	%		26.0	%		5.9	%		39.2	%		29.6	%					29.0	%

P&C combined ratio			85.6	%		96.3	%		63.3	%		89.6	%		74.4	%					89.2	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		65.0	%		53.5	%		77.3	%		51.6	%		50.4	%					58.9	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		22.2	%		26.0	%		6.2	%		39.3	%		29.9	%					28.9	%

CAY P&C combined ratio ex Cats			87.2	%		79.5	%		83.5	%		90.9	%		80.3	%					87.8	%

Combined ratio
Combined ratio																					89.3	%
Add: impact of gains and losses on crop derivatives																					-0.1	%

P&C combined ratio																					89.2	%


Reconciliation Non-GAAP 7		Page 35

Chubb Limited

Glossary

Chubb Limited Consolidated comprises all segments including Corporate.

P&C combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives.

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

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

Core 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 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 expenses before tax.

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: Adjusted net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

Total capitalization: The sum of the short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

Chubb integration expenses: Chubb integration expenses comprise legal and professional fees and all other costs directly related to the integration activities of the Chubb Corp acquisition. 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.

Catastrophe losses (Cats): We generally define catastrophe loss events consistent with the definition of the Property Claims Service (PCS) for events in the U.S. and Canada. PCS defines a catastrophe as an event that causes damage of $25 million or more in insured property losses and affects a significant number of insureds. For events outside of the U.S. and Canada, we generally use a similar definition. Catastrophe loss events are events that occurred in the current calendar year only. Changes in catastrophe loss estimates in the current calendar year that relate to loss events that occurred in previous calendar years are considered prior period development.

Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years.

Reinstatement premiums are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences. The reinstatement premium amount is typically a pro rata portion of the original ceded premium paid based on how much of the reinsurance limit had been exhausted.

Net premiums earned adjustments within prior period development are adjustments to the initial premium earned on retrospectively rated policies based on actual claim experience that develops after the policy period ends. The premium adjustments correlate to the prior period loss development on these same policies and are fully earned in the period the adjustments are recorded.

Prior period expense adjustments typically relate to either profit commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies.

NM: Not meaningful.


Glossary		Page 36