Chubb Ltd
For the period ended Mar 31, 2024. Filed Apr 26, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 26, 2024
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Other income and expense
- Other income and expense
| Three Months Ended | ||
|---|---|---|
| March 31 | ||
| (in millions of U.S. dollars) | 2024 | 2023 |
| Equity in net income (loss) of partially-owned entities | $184 | $340 |
| Gains (losses) from fair value changes in separate account assets (1) | 10 | (25) |
| Asset management and performance fee revenue | 53 | — |
| Asset management and performance fee expense | (33) | — |
| Federal excise and capital taxes | (4) | (5) |
| Other | (19) | (14) |
| Total | $191 | $296 |
(1)Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under U.S. GAAP.
Equity in net income of partially-owned entities includes our share of net income or loss, both underlying operating income and mark-to-market movement, related to partially-owned investment companies (private equity) where we own more than three percent, and partially-owned insurance companies. This line item includes mark-to-market gains (losses) on private equities of $103 million and $242 million for the three months ended March 31, 2024 and 2023, respectively.
In addition, this line item includes net income attributable to our investment in Huatai under the equity method of accounting comprising income of $14 million through March 31, 2023. Effective July 1, 2023, we discontinued the equity method of accounting and include the results of operations of Huatai in our consolidated results.
Also included in Other income and expense are gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under U.S. GAAP. The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations.
Asset management and performance fee revenue and expense primarily relate to the management of third-party assets by Huatai's asset management business, which is unrelated to Huatai Group's core insurance operations. These revenues and expenses are recognized in the period in which the services are performed and, for certain asset performance fees, to the extent it is probable that a significant reversal will not occur.
Certain federal excise and capital taxes incurred as a result of capital management initiatives are included in Other income and expense as these are considered capital transactions and are excluded from underwriting results. Bad debt expense for uncollectible premiums is also included in Other income and expense.
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