Chubb Ltd

For the period ended Dec 31, 2023. Filed Feb 23, 2024.

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FY2023 · Filed Feb 23, 2024

CB$365.02-1.8%Stored close · as of Nov 6, 2026

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Contents

Future policy benefits

Future policy benefits

The following tables present a roll-forward of the liability for future policy benefits included in the Life Insurance segment:

Present Value of Expected Net Premiums	For the Year Ended December 31, 2023
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Balance – beginning of period	$1,806	$2,308	$10,711	$42	$14,867
Beginning balance at original discount rate	1,867	2,361	11,258	43	15,529
Effect of changes in cash flow assumptions	22	40	(820)	2	(756)
Effect of actual variances from expected experience	(9)	88	(84)	—	(5)
Adjusted beginning of period balance	1,880	2,489	10,354	45	14,768
Consolidation of Huatai Group	3	1,690	145	12	1,850
Issuances	190	318	1,653	9	2,170
Interest accrual	71	87	531	2	691
Net premiums collected (1)	(255)	(585)	(1,457)	(23)	(2,320)
Other (including foreign exchange)	103	(54)	(534)	19	(466)
Ending balance at original discount rate	1,992	3,945	10,692	64	16,693
Effect of changes in discount rate assumptions	(402)	5	(260)	—	(657)
Balance – end of period	$1,590	$3,950	$10,432	$64	$16,036

Present Value of Expected Future Policy Benefits	For the Year Ended December 31, 2023
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Balance – beginning of period	$2,321	$5,696	$15,038	$269	$23,324
Beginning balance at original discount rate	2,447	5,874	15,855	280	24,456
Effect of changes in cash flow assumptions	15	44	(858)	4	(795)
Effect of actual variances from expected experience	(4)	98	(78)	(1)	15
Adjusted beginning of period balance	2,458	6,016	14,919	283	23,676
Consolidation of Huatai Group	17	3,659	163	233	4,072
Issuances	190	318	1,653	9	2,170
Interest accrual	90	252	672	9	1,023
Benefits payments	(238)	(333)	(1,551)	(13)	(2,135)
Other (including foreign exchange)	232	79	(785)	(29)	(503)
Ending balance at original discount rate	2,749	9,991	15,071	492	28,303
Effect of changes in discount rate assumptions	(495)	72	(421)	3	(841)
Balance – end of period	$2,254	$10,063	$14,650	$495	$27,462

Liability for Future Policy Benefits, Life Insurance Segment	December 31, 2023
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Net liability for future policy benefits	$664	$6,113	$4,218	$431	$11,426
Deferred profit liability	267	804	165	17	1,253
Net liability for future policy benefits, before reinsurance recoverable	931	6,917	4,383	448	12,679
Less: Reinsurance recoverable on future policy benefits	82	45	106	—	233
Net liability for future policy benefits, after reinsurance recoverable	$849	$6,872	$4,277	$448	$12,446
Weighted average duration (years)	10.5	25.8	10.4	15.0	19.4

Present Value of Expected Net Premiums	For the Year Ended December 31, 2022
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Balance – beginning of period	$422	$1,343	$2,520	$30	$4,315
Beginning balance at original discount rate	397	1,245	2,323	28	3,993
Effect of changes in cash flow assumptions	35	3	(25)	—	13
Effect of actual variances from expected experience	(35)	69	(129)	—	(95)
Adjusted beginning of period balance	397	1,317	2,169	28	3,911
Acquisition of Cigna	1,361	1,082	9,105	23	11,571
Issuances	169	230	639	6	1,044
Interest accrual	71	55	309	1	436
Net premiums collected (1)	(185)	(273)	(859)	(15)	(1,332)
Other (including foreign exchange)	54	(50)	(105)	—	(101)
Ending balance at original discount rate	1,867	2,361	11,258	43	15,529
Effect of changes in discount rate assumptions	(61)	(53)	(547)	(1)	(662)
Balance – end of period	$1,806	$2,308	$10,711	$42	14,867

Present Value of Expected Future Policy Benefits	For the Year Ended December 31, 2022
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Balance – beginning of period	$832	$4,493	$4,935	$127	$10,387
Beginning balance at original discount rate	775	3,540	4,585	119	9,019
Effect of changes in cash flow assumptions	34	5	(37)	15	17
Effect of actual variances from expected experience	(36)	72	(138)	—	(102)
Adjusted beginning of period balance	773	3,617	4,410	134	8,934
Acquisition of Cigna	1,593	2,278	11,441	135	15,447
Issuances	169	230	639	6	1,044
Interest accrual	83	176	401	4	664
Benefits payments	(176)	(248)	(855)	(6)	(1,285)
Other (including foreign exchange)	5	(179)	(181)	7	(348)
Ending balance at original discount rate	2,447	5,874	15,855	280	24,456
Effect of changes in discount rate assumptions	(126)	(178)	(817)	(11)	(1,132)
Balance – end of period	$2,321	$5,696	$15,038	$269	$23,324

Liability for Future Policy Benefits, Life Insurance Segment	December 31, 2022
(in millions of U.S. dollars, except for years)	Term Life	Whole Life	A&H	Other	Total
Net liability for future policy benefits	$515	$3,388	$4,327	$227	$8,457
Deferred profit liability	201	531	126	11	869
Net liability for future policy benefits, before reinsurance recoverable	716	3,919	4,453	238	9,326
Less: Reinsurance recoverable on future policy benefits	93	49	109	—	251
Net liability for future policy benefits, after reinsurance recoverable	$623	$3,870	$4,344	$238	$9,075
Weighted average duration (years)	9.2	25.1	10.7	14.0	17.5

Present Value of Expected Net Premiums	For the Year Ended December 31, 2021
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Balance – beginning of period	$371	$1,395	$2,782	$35	$4,583
Beginning balance at original discount rate	322	1,201	2,398	32	3,953
Effect of changes in cash flow assumptions	(4)	(24)	(4)	(1)	(33)
Effect of actual variances from expected experience	(82)	2	(89)	—	(169)
Adjusted beginning of period balance	236	1,179	2,305	31	3,751
Issuances	183	229	135	6	553
Interest accrual	97	51	164	—	312
Net premiums collected (1)	(107)	(161)	(270)	(5)	(543)
Other (including foreign exchange)	(12)	(53)	(11)	(4)	(80)
Ending balance at original discount rate	397	1,245	2,323	28	3,993
Effect of changes in discount rate assumptions	25	98	197	2	322
Balance – end of period	$422	$1,343	$2,520	$30	4,315

Present Value of Expected Future Policy Benefits	For the Year Ended December 31, 2021
(in millions of U.S. dollars)	Term Life	Whole Life	A&H	Other	Total
Balance – beginning of period	$739	$4,886	$5,351	$124	$11,100
Beginning balance at original discount rate	630	3,503	4,668	104	8,905
Effect of changes in cash flow assumptions	(7)	(24)	(4)	(1)	(36)
Effect of actual variances from expected experience	(73)	(2)	(90)	(1)	(166)
Adjusted beginning of period balance	550	3,477	4,574	102	8,703
Issuances	183	229	135	6	553
Interest accrual	105	152	221	2	480
Benefits payments	(102)	(174)	(337)	—	(613)
Other (including foreign exchange)	39	(144)	(8)	9	(104)
Ending balance at original discount rate	775	3,540	4,585	119	9,019
Effect of changes in discount rate assumptions	57	953	350	8	1,368
Balance – end of period	$832	$4,493	$4,935	$127	$10,387

Liability for Future Policy Benefits, Life Insurance Segment	December 31, 2021
(in millions of U.S. dollars, except for years)	Term Life	Whole Life	A&H	Other	Total
Net liability for future policy benefits	$410	$3,150	$2,415	$97	$6,072
Deferred profit liability	128	387	94	4	613
Net liability for future policy benefits, before reinsurance recoverable	538	3,537	2,509	101	6,685
Less: Reinsurance recoverable on future policy benefits	119	51	40	—	210
Net liability for future policy benefits, after reinsurance recoverable	$419	$3,486	$2,469	$101	$6,475
Weighted average duration (years)	10.6	21.5	10.5	26.3	17.1

The following table presents a reconciliation of the roll-forwards above to the Future policy benefits liability presented in the Consolidated balance sheets.

	December 31	December 31	December 31
(in millions of U.S. dollars)	2023	2022	2021
Net liability for future policy benefits, Life Insurance segment	$11,426	$8,457	$6,072
Other (1)	1,209	1,150	1,152
Deferred profit liability	1,253	869	613
Liability for future policy benefits, per consolidated balance sheet	13,888	10,476	7,837

(1)Other business principally comprises certain Overseas General Insurance accident and health (A&H) policies and certain Chubb Life Re business.

The following table presents the amount of undiscounted and discounted expected gross premiums and expected future policy benefit payments included in the Life Insurance segment:

	December 31	December 31	December 31
(in millions of U.S. dollars)	2023	2022	2021
Term Life
Undiscounted expected future benefit payments	$4,073	$3,914	$1,163
Undiscounted expected future gross premiums	7,075	6,823	1,334
Discounted expected future benefit payments	2,254	2,321	832
Discounted expected future gross premiums	4,703	4,555	1,041
Whole Life
Undiscounted expected future benefit payments	23,990	16,224	9,898
Undiscounted expected future gross premiums	9,469	6,912	3,583
Discounted expected future benefit payments	10,063	5,696	4,493
Discounted expected future gross premiums	7,658	5,398	2,656
A&H
Undiscounted expected future benefit payments	25,118	25,617	6,271
Undiscounted expected future gross premiums	36,869	37,765	9,029
Discounted expected future benefit payments	14,650	15,038	4,935
Discounted expected future gross premiums	22,150	22,111	6,457
Other
Undiscounted expected future benefit payments	862	407	114
Undiscounted expected future gross premiums	115	115	45
Discounted expected future benefit payments	495	269	127
Discounted expected future gross premiums	$103	$100	$38

The following table presents the amount of revenue and interest recognized in the Consolidated statement of operations for the Life Insurance segment:

Gross Premiums or Assessments · Interest Accretion
For the Years Ended · For the Years Ended
	December 31			December 31
(in millions of U.S. dollars)	2023	2022	2021	2023	2022	2021
Life Insurance
Term Life	$641	$472	$375	$19	$12	$8
Whole Life	1,259	651	390	165	121	101
A&H	2,918	1,875	1,068	141	92	57
Other	28	17	10	7	3	2
Total	$4,846	$3,015	$1,843	$332	$228	$168

The following table presents the weighted-average interest rates for the Life Insurance segment:

Interest Accretion Rate · Current Discount Rate
December 31 · December 31
2023 · 2022 · 2022 · 2021 · 2023 · 2022 · 2021
Life Insurance
Term Life	2.8%	2.5%	2.4%	5.2%	5.6%	2.4%
Whole Life	3.2%	3.9%	4.3%	4.6%	5.4%	4.2%
A&H	3.7%	3.6%	4.0%	6.2%	6.3%	3.5%
Other	2.6%	3.7%	3.4%	4.1%	5.6%	2.7%

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