XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Value of Business Acquired, Goodwill, and Other Intangible Assets | 9 Months Ended
--- | ---
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | Value of business acquired, Goodwill, and Other intangible assets Value of business acquired Value of business acquired (VOBA) represents the fair value of the future profits of in-force long duration contracts, and is amortized in relation to the profit emergence of the underlying contracts, in a manner similar to deferred acquisition costs. The VOBA calculation is based on many factors including mortality, morbidity, persistency, investment yields, expenses, and the discount rate, with the discount rate being the most significant factor. The following table presents a roll-forward of VOBA:
| Nine months ended
| September 30
(in millions of U.S. dollars) | 2022 |  |
Balance, beginning of period | $ | 236 |  |  |
Acquisition of Cigna's business in Asia | 3,379 |  |  |
Amortization of VOBA (1) | (107) |  |  |
Foreign exchange revaluation and other | (184) |  |  |
Balance, end of period | $ | 3,324 |  |  |
(1)Recognized in Policy acquisition costs in the Consolidated statements of operations. During the three months ended September 30, 2022, amortization of VOBA associated with the acquisition of Cigna’s business in Asia was $93 million pre-tax. The expected pre-tax amortization expense related to VOBA associated with the acquisition of Cigna’s business in Asia for the fourth quarter of 2022 at current exchange rates is approximately $100 million. Amortization of VOBA beyond next quarter will be determined in conjunction with the adoption of long-duration accounting guidance effective January 1, 2023. Refer to Note 1 for more information. Goodwill The following table presents a roll-forward of Goodwill by segment:
(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 |  | Chubb Consolidated
Balance at December 31, 2021 | $ | 6,972 |  |  | $ | 2,240 |  |  | $ | 134 |  |  | $ | 4,653 |  |  | $ | 371 |  |  | $ | 843 |  |  | $ | 15,213 |
Acquisition of Cigna's business in Asia | — |  |  | — |  |  | — |  |  | 103 |  |  | — |  |  | 1,237 |  |  | 1,340 |
Foreign exchange revaluation and other | (11) |  |  | (4) |  |  | — |  |  | (431) |  |  | — |  |  | — |  |  | (446) |
Balance at September 30, 2022 | $ | 6,961 |  |  | $ | 2,236 |  |  | $ | 134 |  |  | $ | 4,325 |  |  | $ | 371 |  |  | $ | 2,080 |  |  | $ | 16,107 |
Other intangible assets Other intangible assets that are subject to amortization principally relate to agency distribution relationships, renewal rights, and patents, and other intangible assets that are not subject to amortization principally relate to trademarks.
(in millions of U.S. dollars) |  | September 30 2022 |  | December 31 2021
Subject to amortization |  | $ | 2,417 |  |  | $ | 2,508 |
Not subject to amortization |  | 2,966 |  |  | 2,947 |
Total |  | $ | 5,383 |  |  | $ | 5,455 |
The following table presents, as of September 30, 2022, the expected pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the fourth quarter of 2022 and for the next five years:
For the Years Ending December 31 (in millions of U.S. dollars) | Associated with the Cigna acquisition in Asia (1) |  | Associated with the Chubb acquisition (2) |  |  |  | Other intangible assets (3) |  | Total amortization of purchased intangibles
Fourth quarter of 2022 | $ | 1 |  |  | $ | 45 |  |  |  |  | $ | 25 |  |  | $ | 71 |
2023 | 2 |  |  | 170 |  |  |  |  | 96 |  |  | 268 |
2024 | 4 |  |  | 153 |  |  |  |  | 89 |  |  | 246 |
2025 | 5 |  |  | 137 |  |  |  |  | 87 |  |  | 229 |
2026 | 6 |  |  | 123 |  |  |  |  | 84 |  |  | 213 |
2027 | 9 |  |  | 108 |  |  |  |  | 81 |  |  | 198 |
Total | $ | 27 |  |  | $ | 736 |  |  |  |  | $ | 462 |  |  | $ | 1,225 |
(1)Recorded in Life Insurance segment. (2)Recorded in Corporate. (3)Recorded in applicable segment(s) that acquired the intangible assets.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration