Chubb Ltd
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Goodwill, Value of business acquired Other intangible assets
- 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, 2021 | $6,972 | $2,240 | $134 | $4,653 | $371 | $843 | $15,213 |
| Acquisition of Cigna's business in Asia | — | — | — | 90 | — | 1,101 | 1,191 |
| Foreign exchange revaluation and other | (27) | (10) | — | (138) | — | (1) | (176) |
| Balance at December 31, 2022 | $6,945 | $2,230 | $134 | $4,605 | $371 | $1,943 | $16,228 |
| Purchase price adjustments | — | — | — | 8 | — | (10) | (2) |
| Consolidation of Huatai Group | — | — | — | 562 | — | 2,832 | 3,394 |
| Foreign exchange revaluation and other | 1 | 1 | — | 87 | — | (23) | 66 |
| Balance at December 31, 2023 (1) | $6,946 | $2,231 | $134 | $5,262 | $371 | $4,742 | $19,686 |
(1)At December 31, 2023, Goodwill from Huatai Group includes approximately $759 million attributable to noncontrolling interests.
Value of business acquired (VOBA)
The following table presents a roll-forward of VOBA:
| (in millions of U.S. dollars) | 2023 | 2022 | 2021 |
|---|---|---|---|
| Balance, beginning of year | $3,702 | $235 | $263 |
| Acquisition of Cigna's business in Asia | — | 3,633 | — |
| Consolidation of Huatai Group | 309 | — | — |
| Amortization of VOBA (1) | (281) | (149) | (23) |
| Foreign exchange revaluation and other | (56) | (17) | (5) |
| Balance, end of year | $3,674 | $3,702 | $235 |
(1)Recognized in Policy acquisition costs in the Consolidated statements of operations.
The following table presents, as of December 31, 2023, the expected estimated pre-tax amortization expense related to VOBA at current foreign currency exchange rates, for the next five years:
| For the Years Ending December 31 | Total amortization of VOBA |
|---|---|
| (in millions of U.S. dollars) | |
| 2024 | $266 |
| 2025 | 227 |
| 2026 | 199 |
| 2027 | 180 |
| 2028 | 163 |
| Total | $1,035 |
Other intangible assets
Other intangible assets that are subject to amortization principally relate to agency distribution relationships and renewal rights and other intangible assets that are not subject to amortization principally relate to trademarks. For more information on Other intangible assets related to the consolidation of Huatai, refer to Note 2.
| December 31 | ||
|---|---|---|
| (in millions of U.S. dollars) | 2023 | 2022 |
| Subject to amortization | $3,267 | $2,459 |
| Not subject to amortization | 3,508 | 2,982 |
| Total | $6,775 | $5,441 |
Amortization expense related to purchased intangibles was $310 million, $285 million, and $287 million for the years ended December 31, 2023, 2022, and 2021, respectively. The following table presents, as of December 31, 2023, the expected estimated pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the next five years:
| (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 |
|---|---|---|---|---|
| 2024 | $312 | $30 | $12 | $354 |
| 2025 | 287 | 16 | 12 | 315 |
| 2026 | 269 | 7 | 12 | 288 |
| 2027 | 250 | 3 | 12 | 265 |
| 2028 | 240 | — | 13 | 253 |
| Total | $1,358 | $56 | $61 | $1,475 |
(1)Recognized in Policy acquisition costs in the Consolidated statements of operations.
(2)Recognized in Other (income) expense in the Consolidated statements of operations.
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