Goodwill and Value of business acquired

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill, Value of business acquired, and Other intangible assets

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, 2022	$	6,945	$	2,230	$	134	$	4,605	$	371	$	1,943	$	16,228

Consolidation of Huatai Group (1)	—		—		—		562		—		2,832		3,394
Foreign exchange revaluation and other	—		—		—		44		—		(112)		(68)
Balance at September 30, 2023	$	6,945	$	2,230	$	134	$	5,211	$	371	$	4,663	$	19,554

(1)Includes $1.0 billion attributable to noncontrolling interests.

Value of business acquired

Value of business acquired (VOBA) represents the fair value of the future profits of in-force long duration contracts from businesses acquired, principally Cigna's Asian business, and is amortized in relation to the profit emergence of the underlying contracts. 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)	2023
Balance, beginning of period	$	3,702

Consolidation of Huatai Group	309
Amortization of VOBA (1)	(235)
Foreign exchange revaluation and other	(101)
Balance, end of period	$	3,675

(1)Recognized in Policy acquisition costs in the Consolidated statements of operations.

The following table presents, as of September 30, 2023, the expected estimated pre-tax amortization expense related to VOBA at current foreign currency rates, for the fourth quarter of 2023 and for the next five years:




For the Years Ending December 31 (in millions of U.S. dollars)	Total amortization of VOBA


Fourth quarter of 2023	$	67
2024	270
2025	230
2026	202
2027	181
2028	165
Total	$	1,115

Other intangible assets

Other intangible assets that are subject to amortization principally relate to agency distribution relationships, renewal rights, and patents. Other intangible assets that are not subject to amortization principally relate to trademarks. For other intangible assets related to the consolidation of Huatai, refer to Note 2.


(in millions of U.S. dollars)	September 30 2023		December 31 2022
Subject to amortization	$	3,350	$	2,459
Not subject to amortization	3,494		2,982
Total	$	6,844	$	5,441

The following table presents, as of September 30, 2023, the expected pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the fourth quarter of 2023 and for the next five years:



For the Years Ending December 31 (in millions of U.S. dollars)	Total amortization of purchased intangibles		Amortization of Huatai UPR intangible asset (1)		Amortization of Huatai land use rights (2)		Total amortization
Fourth quarter of 2023	$	84	$	16	$	3	$	103
2024	312		30		12		354
2025	286		16		12		314
2026	269		7		12		288
2027	249		3		13		265
2028	240		—		13		253
Total	$	1,440	$	72	$	65	$	1,577

(1)Recognized in Policy acquisition costs in the Consolidated statements of operations.

(2)Recognized in Other (income) expense in the Consolidated statements of operations.