Chubb Ltd
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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Policyholders' account balances, Separate accounts, and Unearned revenue liabilities
- Policyholders' account balances, Separate accounts, and Unearned revenue liabilities
Policyholders' account balances
The following tables present a roll-forward of policyholders' account balances:
| For the Year Ended December 31, 2023 | ||||
|---|---|---|---|---|
| (in millions of U.S. dollars) | Universal Life | Annuities (2) | Other (3) | Total |
| Balance – beginning of period | $1,199 | $— | $1,374 | $2,573 |
| Consolidation of Huatai Group | 602 | 2,325 | 1,087 | 4,014 |
| Premiums received | 268 | 133 | 231 | 632 |
| Policy charges (1) | (132) | — | (10) | (142) |
| Surrenders and withdrawals | (115) | (19) | (192) | (326) |
| Benefit payments (4) | (12) | (58) | (62) | (132) |
| Interest credited | 43 | 31 | 39 | 113 |
| Other (including foreign exchange) | 23 | (1) | 35 | 57 |
| Balance – end of period | $1,876 | $2,411 | $2,502 | $6,789 |
| Unearned revenue liability | 673 | |||
| Policyholders' account liability, per consolidated balance sheet | $7,462 | |||
(2)Relates to Huatai Life.
(3)Other primarily comprises policyholder account balances related to investment linked products including endowment and investment contracts, none of which bear significant insurance risk.
(4)Includes benefit payments upon maturity as well as death benefits.
| For the Year Ended December 31, 2022 | ||||
|---|---|---|---|---|
| (in millions of U.S. dollars) · Universal Life · Other (2) · Total | ||||
| Balance – beginning of period | $875 | $1,388 | $2,263 | |
| Acquisition of Cigna | 348 | 7 | 355 | |
| Premiums received | 232 | 101 | 333 | |
| Policy charges (1) | (136) | (15) | (151) | |
| Surrenders and withdrawals | (50) | (84) | (134) | |
| Benefit payments (3) | (6) | (27) | (33) | |
| Interest credited | 27 | 20 | 47 | |
| Other (including foreign exchange) | (91) | (16) | (107) | |
| Balance – end of period | $1,199 | $1,374 | $2,573 | |
| Unearned revenue liability | 567 | |||
| Policyholders' account liability, per consolidated balance sheet | $3,140 | |||
(2)Other primarily comprises policyholder account balances related to investment linked products including endowment and investment contracts, none of which bear significant insurance risk.
(3)Includes benefit payments upon maturity as well as death benefits.
| For the Year Ended December 31, 2021 | ||||
|---|---|---|---|---|
| (in millions of U.S. dollars) · Universal Life · Other (2) · Total | ||||
| Balance – beginning of period | $813 | $1,352 | $2,165 | |
| Premiums received | 228 | 120 | 348 | |
| Policy charges (1) | (138) | (18) | (156) | |
| Surrenders and withdrawals | (51) | (66) | (117) | |
| Benefit payments (3) | (17) | (26) | (43) | |
| Interest credited | 27 | 22 | 49 | |
| Other (including foreign exchange) | 13 | 4 | 17 | |
| Balance – end of period | $875 | $1,388 | $2,263 | |
| Unearned revenue liability | 503 | |||
| Policyholders' account liability, per consolidated balance sheet | $2,766 | |||
(2)Other primarily comprises policyholder account balances related to investment linked products including endowment and investment contracts, none of which bear significant insurance risk.
(3)Includes benefit payments upon maturity as well as death benefits.
| December 31 | |||||||
|---|---|---|---|---|---|---|---|
| 2023 · 2022 · 2021 | |||||||
| (in millions of U.S. dollars, except for percentages) | Universal Life | Annuities | Other | Universal Life | Other | Universal Life | Other |
| Weighted-average crediting rate | 3.0% | 2.6% | 1.9% | 2.5% | 1.7% | 3.4% | 1.9% |
| Net amount at risk (1) | $11,828 | $— | $559 | $11,472 | $182 | $10,749 | $180 |
| Cash Surrender Value | $1,628 | $1,526 | $2,192 | $1,001 | $1,257 | $680 | $1,247 |
(1)For those guarantees of benefits that are payable in the event of death, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
The following tables present the balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimum:
Universal Life
| December 31, 2023 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $475 | $— | $29 | $36 | $540 |
| 2.01% – 4.00% | 82 | 319 | 894 | 19 | 1,314 |
| Greater than 4.00% | 22 | — | — | — | 22 |
| Total | $579 | $319 | $923 | $55 | $1,876 |
| December 31, 2022 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $451 | $— | $37 | $5 | $493 |
| 2.01% – 4.00% | 77 | 343 | 261 | — | 681 |
| Greater than 4.00% | 25 | — | — | — | 25 |
| Total | $553 | $343 | $298 | $5 | $1,199 |
| December 31, 2021 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $166 | $— | $42 | $4 | $212 |
| 2.01% – 4.00% | 66 | 386 | 175 | — | 627 |
| Greater than 4.00% | 36 | — | — | — | 36 |
| Total | $268 | $386 | $217 | $4 | $875 |
Annuities
| December 31, 2023 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $723 | $— | $1,579 | $— | $2,302 |
| 2.01% – 4.00% | 109 | — | — | — | 109 |
| Total | $832 | $— | $1,579 | $— | $2,411 |
Other policyholders' account balances
| December 31, 2023 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $782 | $— | $228 | $546 | $1,556 |
| 2.01% – 4.00% | 373 | 540 | 28 | — | 941 |
| Greater than 4.00% | 5 | — | — | — | 5 |
| Total | $1,160 | $540 | $256 | $546 | $2,502 |
| December 31, 2022 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $534 | $— | $217 | $196 | $947 |
| 2.01% – 4.00% | 382 | 41 | — | — | 423 |
| Greater than 4.00% | 4 | — | — | — | 4 |
| Total | $920 | $41 | $217 | $196 | $1,374 |
| December 31, 2021 | |||||
|---|---|---|---|---|---|
| (in millions of U.S. dollars) | At Guaranteed Minimum | 1 Basis Point - 50 Basis Points Above | 51 Basis Points - 150 Basis Points Above | Greater Than 150 Basis Points Above | Total |
| Guaranteed minimum crediting rates | |||||
| Up to 2.00% | $525 | $— | $234 | $220 | $979 |
| 2.01% – 4.00% | 171 | 201 | 32 | — | 404 |
| Greater than 4.00% | 5 | — | — | — | 5 |
| Total | $701 | $201 | $266 | $220 | $1,388 |
Separate accounts
Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. The assets that support variable contracts are measured at fair value and are reported as Separate account assets and corresponding liabilities are reported within Separate account liabilities on the Consolidated balance sheets. Policy charges assessed against the policyholders for mortality, administration, and other services are included in Net premiums earned on the Consolidated statements of operations.
The following table presents the aggregate fair value of Separate account assets, by major security type:
| December 31 | |||
|---|---|---|---|
| (in millions of U.S. dollars) | 2023 | 2022 | 2021 |
| Cash and cash equivalents | $65 | $141 | $165 |
| Mutual funds | 5,417 | 4,960 | 5,296 |
| Fixed maturities | 91 | 89 | 99 |
| Total | $5,573 | $5,190 | $5,560 |
The following table presents a roll-forward of separate account liabilities:
| For the Years Ended | |||
|---|---|---|---|
| December 31 | |||
| (in millions of U.S. dollars) | 2023 | 2022 | 2021 |
| Balance – beginning of period | $5,190 | $5,560 | $4,488 |
| Acquisition of Cigna | — | 301 | — |
| Premiums and deposits | 995 | 1,453 | 2,086 |
| Policy charges | (138) | (127) | (128) |
| Surrenders and withdrawals | (601) | (503) | (720) |
| Benefit payments | (381) | (381) | (318) |
| Investment performance | 611 | (848) | 312 |
| Other (including foreign exchange) | (103) | (265) | (160) |
| Balance – end of period | $5,573 | $5,190 | $5,560 |
| Cash surrender value (1) | $5,398 | $4,989 | $5,309 |
(1) Cash surrender value represents the amount of the contract holder's account balances distributable at the balance sheet date less certain surrender charges.
Unearned revenue liabilities
Unearned revenue liabilities represent policy charges for services to be provided in future periods. The charges are reflected as deferred revenue and are generally amortized over the expected life of the contract using the same methodology, factors, and assumptions used to amortize deferred acquisition costs. Unearned revenue liabilities pertaining to both policyholders' account balances and separate accounts are recorded in Policyholders' account balances in the Consolidated balance sheets. The following table presents a roll-forward of unearned revenue liabilities:
| For the Years Ended December 31 | |||
|---|---|---|---|
| (in millions of U.S. dollars) | 2023 | 2022 | 2021 |
| Balance – beginning of period | $567 | $503 | $393 |
| Deferred revenue | 134 | 142 | 144 |
| Amortization | (67) | (50) | (38) |
| Other (including foreign exchange) | 39 | (28) | 4 |
| Balance – end of period | $673 | $567 | $503 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.