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Shareholders' equity | 9 Months Ended
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Sep. 30, 2023
Stockholders' Equity Note [Abstract] |
Shareholders' equity | Shareholders’ equity All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing the Consolidated Financial Statements. Under Swiss corporate law, dividends, including distributions from legal reserves or through a reduction in par value (par value reduction), must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. At September 30, 2023, our Common Shares had a par value of CHF 0.50 per share. At our May 2023 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.44 per share, expected to be paid in four quarterly installments of $0.86 per share after the general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board of Directors (Board) will determine the record and payment dates at which the annual dividend may be paid until the date of 2024 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. At our May 2022 and 2021 annual general meetings, our shareholders approved annual dividends for the following year of up to $3.32 per share and $3.20 per share, respectively, which were paid in four quarterly installments of $0.83 per share and $0.80 per share, respectively, at dates determined by the Board after the annual general meetings by way of a distribution from capital contribution reserves, transferred to free reserves for payment. The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):
| Three Months Ended |  | Nine Months Ended
| September 30 |  | September 30
| 2023 |  | 2022 |  | 2023 |  | 2022
CHF |  | USD |  | CHF |  | USD |  | CHF |  | USD |  | CHF |  | USD
Total dividend distributions per common share | 0.75 |  | $ | 0.86 |  |  | 0.78 |  | $ | 0.83 |  |  | 2.29 |  | $ | 2.55 |  |  | 2.32 |  | $ | 2.46 |
Increases in Common Shares in treasury are due to open market repurchases of Common Shares and the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock and the forfeiture of unvested restricted stock. Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, purchases under the Employee Stock Purchase Plan (ESPP), and share cancellations. At the Chubb Limited Extraordinary General Meeting of Shareholders, held on November 3, 2021, shareholders approved the cancellation of 14,465,400 shares repurchased under our share repurchase program during the first six months of 2021. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on January 17, 2022. At our May 2022 annual general meeting, held on May 19, 2022, our shareholders approved the cancellation of 13,179,100 shares purchased under our share repurchase program during the last six months of 2021. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on August 4, 2022. At our May 2023 annual general meeting, held on May 17, 2023, our shareholders approved the cancellation of 14,925,028 shares purchased under our share repurchase programs during 2022. The capital reduction was subject to publication requirements and became effective in accordance with Swiss law on May 22, 2023. During the nine months ended September 30, 2023, 8,634,600 shares were repurchased, 14,925,028 shares were canceled, and 2,024,083 net shares were issued under employee share-based compensation plans. At September 30, 2023, 23,467,247 Common Shares remain in treasury. Chubb Limited securities repurchase authorizations The Board has authorized share repurchase programs as follows: •One-time incremental share repurchase program of $5.0 billion of Chubb Common Shares from July 19, 2021 through June 30, 2022; •$2.5 billion of Chubb Common Shares from May 19, 2022 through June 30, 2023; and •$5.0 billion of Chubb Common Shares effective July 1, 2023 with no expiration date. The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:
| Three Months Ended |  | Nine Months Ended |
| September 30 |  | September 30
(in millions of U.S. dollars, except share data) | 2023 |  | 2022 |  | 2023 |  | 2022
Number of shares repurchased | 2,949,900 |  |  | 3,676,528 |  |  | 8,634,600 |  |  | 14,022,728 |  |
Cost of shares repurchased | $ | 606 |  |  | $ | 685 |  |  | $ | 1,758 |  |  | $ | 2,815 |  |
Repurchase authorization remaining at end of period | $ | 4,398 |  |  | $ | 1,816 |  |  | $ | 4,398 |  |  | $ | 1,816 |  |
The following table presents changes in accumulated other comprehensive income (loss):
| Three Months Ended |  | Nine Months Ended
| September 30 |  | September 30
| 2023 |  | 2022 |  | 2023 |  | 2022
(in millions of U.S. dollars) |  |  | As Adjusted |  |  |  | As Adjusted
Accumulated other comprehensive income (loss) (AOCI) |  |  |  |  |  |  |
Net unrealized appreciation (depreciation) on investments |  |  |  |  |  |  |
Balance – beginning of period, net of tax | $ | (6,809) |  |  | $ | (5,713) |  |  | $ | (7,279) |  |  | $ | 2,256 |
Change in period, before reclassification from AOCI (before tax) | (2,240) |  |  | (3,324) |  |  | (1,935) |  |  | (12,898) |
Amounts reclassified from AOCI (before tax) | 70 |  |  | 279 |  |  | 357 |  |  | 857 |
Change in period, before tax | (2,170) |  |  | (3,045) |  |  | (1,578) |  |  | (12,041) |
Income tax (expense) benefit | 29 |  |  | 147 |  |  | (93) |  |  | 1,174 |
Total other comprehensive loss | (2,141) |  |  | (2,898) |  |  | (1,671) |  |  | (10,867) |
Noncontrolling interests, net of tax | 3 |  |  | — |  |  | 3 |  |  | — |
Balance – end of period, net of tax | (8,953) |  |  | (8,611) |  |  | (8,953) |  |  | (8,611) |
Current discount rate on liability for future policy benefits |  |  |  |  |  |  |
Balance – beginning of period, net of tax | (247) |  |  | (427) |  |  | (75) |  |  | (1,399) |
Change in period, before tax | 683 |  |  | 479 |  |  | 497 |  |  | 1,546 |
Income tax expense | (35) |  |  | (57) |  |  | (21) |  |  | (152) |
Total other comprehensive income | 648 |  |  | 422 |  |  | 476 |  |  | 1,394 |
Noncontrolling interests, net of tax | (3) |  |  | — |  |  | (3) |  |  | — |
Balance – end of period, net of tax | 404 |  |  | (5) |  |  | 404 |  |  | (5) |
| Three Months Ended |  | Nine Months Ended
| September 30 |  | September 30
| 2023 |  | 2022 |  | 2023 |  | 2022
(in millions of U.S. dollars) |  |  | As Adjusted |  |  |  | As Adjusted
Accumulated other comprehensive income (loss) (AOCI) - continued |  |  |  |  |  |  |
Instrument-specific credit risk on market risk benefits |  |  |  |  |  |  |
Balance – beginning of period, net of tax | (16) |  |  | (17) |  |  | (24) |  |  | (57) |
Change in period, before and net of tax | (5) |  |  | 8 |  |  | 3 |  |  | 48 |
Total other comprehensive income (loss) | (5) |  |  | 8 |  |  | 3 |  |  | 48 |
Noncontrolling interests, net of tax | — |  |  | — |  |  | — |  |  | — |
Balance – end of period, net of tax | (21) |  |  | (9) |  |  | (21) |  |  | (9) |
Cumulative foreign currency translation adjustment |  |  |  |  |  |  |
Balance – beginning of period, net of tax | (2,920) |  |  | (2,768) |  |  | (2,966) |  |  | (2,114) |
Change in period, before reclassification from AOCI (before tax) | (314) |  |  | (942) |  |  | (269) |  |  | (1,631) |
Amounts reclassified from AOCI (before tax) | (3) |  |  | — |  |  | (10) |  |  | — |
Change in period, before tax | (317) |  |  | (942) |  |  | (279) |  |  | (1,631) |
Income tax benefit | 13 |  |  | 7 |  |  | 21 |  |  | 42 |
Total other comprehensive loss | (304) |  |  | (935) |  |  | (258) |  |  | (1,589) |
Noncontrolling interests, net of tax | (76) |  |  | — |  |  | (76) |  |  | — |
Balance – end of period, net of tax | (3,148) |  |  | (3,703) |  |  | (3,148) |  |  | (3,703) |
Fair value hedging instruments |  |  |  |  |  |  |
Balance – beginning of period, net of tax | (53) |  |  | — |  |  | (66) |  |  | — |
Change in period, before reclassification from AOCI (before tax) | (17) |  |  | (94) |  |  | 23 |  |  | (94) |
Amounts reclassified from AOCI (before tax) | 55 |  |  | 32 |  |  | 32 |  |  | 32 |
Change in period, before tax | 38 |  |  | (62) |  |  | 55 |  |  | (62) |
Income tax (expense) benefit | (7) |  |  | 13 |  |  | (11) |  |  | 13 |
Total other comprehensive income (loss) | 31 |  |  | (49) |  |  | 44 |  |  | (49) |
Noncontrolling interests, net of tax | — |  |  | — |  |  | — |  |  | — |
Balance – end of period, net of tax | (22) |  |  | (49) |  |  | (22) |  |  | (49) |
Postretirement benefit liability adjustment |  |  |  |  |  |  |
Balance – beginning of period, net of tax | 223 |  |  | 259 |  |  | 225 |  |  | 240 |
Change in period, before tax | (1) |  |  | 3 |  |  | (3) |  |  | 27 |
Income tax expense | — |  |  | (1) |  |  | — |  |  | (6) |
Total other comprehensive income (loss) | (1) |  |  | 2 |  |  | (3) |  |  | 21 |
Noncontrolling interests, net of tax | — |  |  | — |  |  | — |  |  | — |
Balance – end of period, net of tax | 222 |  |  | 261 |  |  | 222 |  |  | 261 |
Accumulated other comprehensive income (loss) | $ | (11,518) |  |  | $ | (12,116) |  |  | $ | (11,518) |  |  | $ | (12,116) |
The following table presents reclassifications from accumulated other comprehensive income (loss) to the Consolidated statements of operations:
| Three Months Ended |  | Nine Months Ended | Consolidated Statement of Operations Location
| September 30 |  | September 30
(in millions of U.S. dollars) | 2023 |  | 2022 |  | 2023 |  | 2022
Fixed maturities available for sale | $ | (70) |  |  | $ | (279) |  |  | $ | (357) |  |  | $ | (857) |  | Net realized gains (losses)
Income tax benefit | 25 |  |  | 39 |  |  | 59 |  |  | 138 |  | Income tax expense
| $ | (45) |  |  | $ | (240) |  |  | $ | (298) |  |  | $ | (719) |  | Net income
Cumulative foreign currency translation adjustment |  |  |  |  |  |  |  |
Cross-currency swaps | $ | 3 |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |  | Interest expense
Income tax expense | (1) |  |  | — |  |  | (2) |  |  | — |  | Income tax expense
| $ | 2 |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |  | Net income
Net gains (losses) of fair value hedging instruments |  |  |  |  |  |  |  |
Cross-currency swaps | $ | (51) |  |  | $ | (32) |  |  | $ | (20) |  |  | $ | (32) |  | Net realized gains (losses)
Cross-currency swaps | (4) |  |  | — |  |  | (12) |  |  | — |  | Interest expense
Income tax benefit | 12 |  |  | 7 |  |  | 7 |  |  | 7 |  | Income tax expense
| $ | (43) |  |  | $ | (25) |  |  | $ | (25) |  |  | $ | (25) |  | Net income
Total amounts reclassified from AOCI | $ | (86) |  |  | $ | (265) |  |  | $ | (315) |  |  | $ | (744) |  |

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