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Segment information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment information | Segment information Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediaries.
• | The North America Commercial P&C Insurance segment includes the business written by Chubb divisions that provide property and casualty (P&C) insurance and services to large, middle market and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes our retail divisions: Major Accounts, Commercial Insurance, including Small Commercial Insurance; and our wholesale and specialty divisions: Westchester and Chubb Bermuda. These divisions write a variety of coverages, including property, casualty, workers’ compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and excess casualty; as well as group accident and health (A&H) insurance.
• | The North America Personal P&C Insurance segment includes the business written by Chubb Personal Risk Services division, which includes high net worth personal lines business, with operations in the U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles (including fine arts), personal and excess liability, travel insurance, and recreational marine insurance and services.
• | The North America Agricultural Insurance segment includes the business written by Rain and Hail Insurance Service, Inc. in the U.S. and Canada, which provides comprehensive multiple peril crop insurance (MPCI) and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.
• | The Overseas General Insurance segment includes the business written by two Chubb divisions that provide P&C insurance and services in the 51 countries and territories outside of North America where the company operates. Chubb International provides commercial P&C, A&H and traditional and specialty personal lines for large corporations, middle markets and small customers through retail brokers, agents and other channels locally around the world. Chubb Global Markets (CGM) provides commercial P&C excess and surplus lines and A&H through wholesale brokers in the London market and through Lloyd’s. These divisions write a variety of coverages, including traditional commercial P&C, specialty categories such as financial lines, marine, energy, aviation, political risk and construction, as well as group A&H and traditional and specialty personal lines.
• | The Global Reinsurance segment includes the reinsurance business written by Chubb Tempest Re, comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Chubb Tempest Re provides a broad range of traditional and specialty reinsurance coverages to a diverse array of primary P&C companies, including small, mid-sized, and multinational ceding companies.
• | The Life Insurance segment includes Chubb's international life operations written by Chubb Life, Chubb Tempest Life Re and the North American supplemental A&H and life business of Combined Insurance.
Corporate primarily includes the results of all run-off asbestos and environmental (A&E) exposures, our run-off Brandywine business, and our Westchester specialty operations for 1996 and prior years, and certain other non-A&E run-off exposures. In addition, Corporate includes the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd., and Chubb INA Holdings Inc. Our exposure to A&E claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and Chubb Corp in 2016. In addition, revenue and expenses managed at the corporate level, including realized gains and losses, interest expense, the non-operating income of our partially-owned entities, and income taxes are reported within Corporate. Chubb integration expenses are also reported within Corporate. Chubb integration expenses are one-time costs that are directly attributable to the achievement of the annualized savings, including employee severance, third-party consulting fees, and systems integration expenses. These items will not be allocated to the segment level as they are one-time in nature and are not related to the ongoing business activities of the segment. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs and they are therefore excluded from our definition of segment income (loss). Therefore, segment income (loss) will only include underwriting income (loss), net investment income (loss), and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable. Segment income (loss) also includes amortization of purchased intangibles related to business combination intangible assets acquired by the segment and other purchase accounting related intangible assets, including agency relationships, renewal rights, and client lists. The amortization of intangible assets purchased as part of the Chubb Corp acquisition is considered a Corporate cost as these are incurred by the overall company. We determined that this definition of segment income (loss) is appropriate and aligns with how the business is managed. We continue to evaluate our segments as our business continues to evolve and may further refine our segments and segment income (loss) measures. For segment reporting purposes, certain items are presented in a different manner below than in the consolidated financial statements. Management uses underwriting income (loss) as the main measures of segment performance. Chubb calculates underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. To calculate Segment income (loss), include Net investment income (loss), Other (income) expense, and Amortization expense of purchased intangibles. For the North America Agricultural Insurance segment, management includes gains and losses on crop derivatives as a component of underwriting income (loss). For example, for the year ended December 31, 2019, underwriting income in our North America Agricultural Insurance segment was $89 million. This amount includes $8 million of realized losses related to crop derivatives which are reported in Net realized gains (losses) including OTTI in the Corporate column below. For the Life Insurance segment, management includes Net investment income (loss) and (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP as components of Life Insurance underwriting income (loss). For example, for the year ended December 31, 2019, Life Insurance underwriting income of $320 million includes Net investment income of $373 million and gains from fair value changes in separate account assets of $44 million. The gains from fair value changes in separate account assets are reported in Other (income) expense in the table below. The following tables present the Statement of Operations by segment:
For the Year Ended December 31, 2019 (in millions of U.S. dollars) | North America Commercial P&C Insurance |  |  | North America Personal P&C Insurance |  |  | North America Agricultural Insurance |  |  | Overseas General Insurance |  |  | Global Reinsurance |  |  | Life Insurance |  |  | Corporate |  |  | Chubb Consolidated |
Net premiums written | $ | 13,375 |  |  | $ | 4,787 |  |  | $ | 1,810 |  |  | $ | 9,262 |  |  | $ | 649 |  |  | $ | 2,392 |  |  | $ | — |  |  | $ | 32,275 |
Net premiums earned | 12,922 |  |  | 4,694 |  |  | 1,795 |  |  | 8,882 |  |  | 654 |  |  | 2,343 |  |  | — |  |  | 31,290 |
Losses and loss expenses | 8,206 |  |  | 3,043 |  |  | 1,608 |  |  | 4,606 |  |  | 352 |  |  | 757 |  |  | 158 |  |  | 18,730 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 740 |  |  | — |  |  | 740 |
Policy acquisition costs | 1,831 |  |  | 948 |  |  | 84 |  |  | 2,501 |  |  | 169 |  |  | 620 |  |  | — |  |  | 6,153 |
Administrative expenses | 1,028 |  |  | 286 |  |  | 6 |  |  | 1,033 |  |  | 35 |  |  | 323 |  |  | 319 |  |  | 3,030 |
Underwriting income (loss) | 1,857 |  |  | 417 |  |  | 97 |  |  | 742 |  |  | 98 |  |  | (97 | ) |  | (477 | ) |  | 2,637 |
Net investment income (loss) | 2,082 |  |  | 258 |  |  | 30 |  |  | 588 |  |  | 220 |  |  | 373 |  |  | (125 | ) |  | 3,426 |
Other (income) expense | (3 | ) |  | 3 |  |  | 1 |  |  | 12 |  |  | (58 | ) |  | (92 | ) |  | (459 | ) |  | (596 | )
Amortization expense of purchased intangibles | — |  |  | 12 |  |  | 28 |  |  | 45 |  |  | — |  |  | 2 |  |  | 218 |  |  | 305 |
Segment income (loss) | $ | 3,942 |  |  | $ | 660 |  |  | $ | 98 |  |  | $ | 1,273 |  |  | $ | 376 |  |  | $ | 366 |  |  | $ | (361 | ) |  | $ | 6,354 |
Net realized gains (losses) including OTTI |  |  |  |  |  |  |  |  |  |  |  |  | (530 | ) |  | (530 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | 552 |  |  | 552 |
Chubb integration expenses |  |  |  |  |  |  |  |  |  |  |  |  | 23 |  |  | 23 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  | 795 |  |  | 795 |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (2,261 | ) |  | $ | 4,454 |
For the Year Ended December 31, 2018 (in millions of U.S. dollars) | North America Commercial P&C Insurance |  |  | North America Personal P&C Insurance |  |  | North America Agricultural Insurance |  |  | Overseas General Insurance |  |  | Global Reinsurance |  |  | Life Insurance |  |  | Corporate |  |  | Chubb Consolidated |
Net premiums written | $ | 12,485 |  |  | $ | 4,674 |  |  | $ | 1,577 |  |  | $ | 8,902 |  |  | $ | 671 |  |  | $ | 2,270 |  |  | $ | — |  |  | $ | 30,579 |
Net premiums earned | 12,402 |  |  | 4,593 |  |  | 1,569 |  |  | 8,612 |  |  | 670 |  |  | 2,218 |  |  | — |  |  | 30,064 |
Losses and loss expenses | 8,000 |  |  | 3,229 |  |  | 1,111 |  |  | 4,429 |  |  | 479 |  |  | 766 |  |  | 53 |  |  | 18,067 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 590 |  |  | — |  |  | 590 |
Policy acquisition costs | 1,829 |  |  | 939 |  |  | 79 |  |  | 2,346 |  |  | 162 |  |  | 557 |  |  | — |  |  | 5,912 |
Administrative expenses | 966 |  |  | 269 |  |  | (9 | ) |  | 1,014 |  |  | 41 |  |  | 310 |  |  | 295 |  |  | 2,886 |
Underwriting income (loss) | 1,607 |  |  | 156 |  |  | 388 |  |  | 823 |  |  | (12 | ) |  | (5 | ) |  | (348 | ) |  | 2,609 |
Net investment income (loss) | 2,033 |  |  | 236 |  |  | 28 |  |  | 619 |  |  | 257 |  |  | 341 |  |  | (209 | ) |  | 3,305 |
Other (income) expense | (25 | ) |  | 1 |  |  | 2 |  |  | — |  |  | (32 | ) |  | 26 |  |  | (406 | ) |  | (434 | )
Amortization expense of purchased intangibles | — |  |  | 13 |  |  | 28 |  |  | 41 |  |  | — |  |  | 2 |  |  | 255 |  |  | 339 |
Segment income (loss) | $ | 3,665 |  |  | $ | 378 |  |  | $ | 386 |  |  | $ | 1,401 |  |  | $ | 277 |  |  | $ | 308 |  |  | $ | (406 | ) |  | $ | 6,009 |
Net realized gains (losses) including OTTI |  |  |  |  |  |  |  |  |  |  |  |  |  | (652 | ) |  | (652 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | 641 |  |  | 641 |
Chubb integration expenses |  |  |  |  |  |  |  |  |  |  |  |  | 59 |  |  | 59 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  | 695 |  |  | 695 |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (2,453 | ) |  | $ | 3,962 |
For the Year Ended December 31, 2017 (in millions of U.S. dollars) | North America Commercial P&C Insurance |  |  | North America Personal P&C Insurance |  |  | North America Agricultural Insurance |  |  | Overseas General Insurance |  |  | Global Reinsurance |  |  | Life Insurance |  |  | Corporate |  |  | Chubb Consolidated |
Net premiums written | $ | 12,019 |  |  | $ | 4,533 |  |  | $ | 1,516 |  |  | $ | 8,350 |  |  | $ | 685 |  |  | $ | 2,141 |  |  | $ | — |  |  | $ | 29,244 |
Net premiums earned | 12,191 |  |  | 4,399 |  |  | 1,508 |  |  | 8,131 |  |  | 704 |  |  | 2,101 |  |  | — |  |  | 29,034 |
Losses and loss expenses | 8,287 |  |  | 3,265 |  |  | 1,036 |  |  | 4,281 |  |  | 561 |  |  | 739 |  |  | 285 |  |  | 18,454 |
Policy benefits | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 676 |  |  | — |  |  | 676 |
Policy acquisition costs | 1,873 |  |  | 899 |  |  | 81 |  |  | 2,221 |  |  | 177 |  |  | 530 |  |  | — |  |  | 5,781 |
Administrative expenses | 981 |  |  | 264 |  |  | (8 | ) |  | 982 |  |  | 44 |  |  | 303 |  |  | 267 |  |  | 2,833 |
Underwriting income (loss) | 1,050 |  |  | (29 | ) |  | 399 |  |  | 647 |  |  | (78 | ) |  | (147 | ) |  | (552 | ) |  | 1,290 |
Net investment income (loss) | 1,961 |  |  | 226 |  |  | 25 |  |  | 610 |  |  | 273 |  |  | 313 |  |  | (283 | ) |  | 3,125 |
Other (income) expense | 1 |  |  | 4 |  |  | 2 |  |  | (4 | ) |  | (1 | ) |  | (84 | ) |  | (318 | ) |  | (400 | )
Amortization expense of purchased intangibles | — |  |  | 16 |  |  | 29 |  |  | 45 |  |  | — |  |  | 2 |  |  | 168 |  |  | 260 |
Segment income (loss) | $ | 3,010 |  |  | $ | 177 |  |  | $ | 393 |  |  | $ | 1,216 |  |  | $ | 196 |  |  | $ | 248 |  |  | $ | (685 | ) |  | $ | 4,555 |
Net realized gains (losses) including OTTI |  |  |  |  |  |  |  |  |  |  |  |  | 84 |  |  | 84 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | 607 |  |  | 607 |
Chubb integration expenses |  |  |  |  |  |  |  |  |  |  |  |  | 310 |  |  | 310 |
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  | (139 | ) |  | (139 | )
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | (1,379 | ) |  | $ | 3,861 |
Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments. The following table presents net premiums earned for each segment by line of business:
| For the Year Ended December 31 |
(in millions of U.S. dollars) | 2019 |  |  | 2018 |  |  | 2017 |
North America Commercial P&C Insurance |  |  |  |  |
Property & other short-tail lines | $ | 1,987 |  |  | $ | 1,861 |  |  | $ | 1,899 |
Casualty & all other | 10,136 |  |  | 9,773 |  |  | 9,554 |
A&H | 799 |  |  | 768 |  |  | 738 |
Total North America Commercial P&C Insurance | 12,922 |  |  | 12,402 |  |  | 12,191 |
North America Personal P&C Insurance |  |  |  |  |
Personal automobile | 829 |  |  | 803 |  |  | 742 |
Personal homeowners | 3,183 |  |  | 3,127 |  |  | 3,014 |
Personal other | 682 |  |  | 663 |  |  | 643 |
Total North America Personal P&C Insurance | 4,694 |  |  | 4,593 |  |  | 4,399 |
North America Agricultural Insurance | 1,795 |  |  | 1,569 |  |  | 1,508 |
Overseas General Insurance |  |  |  |  |
Property & other short-tail lines | 2,244 |  |  | 2,134 |  |  | 2,076 |
Casualty & all other | 2,494 |  |  | 2,429 |  |  | 2,266 |
Personal lines | 1,896 |  |  | 1,784 |  |  | 1,609 |
A&H | 2,248 |  |  | 2,265 |  |  | 2,180 |
Total Overseas General Insurance | 8,882 |  |  | 8,612 |  |  | 8,131 |
Global Reinsurance |  |  |  |  |
Property & other short-tail lines | 131 |  |  | 123 |  |  | 132 |
Property catastrophe | 142 |  |  | 170 |  |  | 198 |
Casualty & all other | 381 |  |  | 377 |  |  | 374 |
Total Global Reinsurance | 654 |  |  | 670 |  |  | 704 |
Life Insurance |  |  |  |  |
Life | 1,101 |  |  | 1,022 |  |  | 980 |
A&H | 1,242 |  |  | 1,196 |  |  | 1,121 |
Total Life Insurance | 2,343 |  |  | 2,218 |  |  | 2,101 |
Total net premiums earned | $ | 31,290 |  |  | $ | 30,064 |  |  | $ | 29,034 |
The following table presents net premiums earned by geographic region. Allocations have been made on the basis of location of risk:
| North America |  |  | Europe (1) |  |  | Asia Pacific / Far East |  |  | Latin America |
2019 | 70 | % |  | 11 | % |  | 12 | % |  | 7 | %
2018 | 70 | % |  | 11 | % |  | 12 | % |  | 7 | %
2017 | 70 | % |  | 11 | % |  | 12 | % |  | 7 | %
(1) Europe includes Eurasia and Africa regions.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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