Item 6. Selected Financial Data

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Item 6. Selected Financial Data

On January 14, 2016, we completed the acquisition of The Chubb Corporation (Chubb Corp). The results of operations of Chubb Corp are included in our results from the acquisition date forward (i.e., after January 14, 2016 and only in the 2016, 2017, 2018 and 2019 columns) within the table below.



(in millions of U.S. dollars, except per share data and ratios)	2019			2018			2017			2016			2015
Operations data:
Net premiums earned – excluding Life Insurance segment	$	28,947		$	27,846		$	26,933		$	26,694		$	15,266
Net premiums earned – Life Insurance segment	2,343			2,218			2,101			2,055			1,947
Total net premiums earned	31,290			30,064			29,034			28,749			17,213
Net investment income	3,426			3,305			3,125			2,865			2,194
Losses and loss expenses	18,730			18,067			18,454			16,052			9,484
Policy benefits	740			590			676			588			543
Policy acquisition costs and administrative expenses	9,183			8,798			8,614			8,985			5,211
Net income	4,454			3,962			3,861			4,135			2,834
Weighted-average shares outstanding – diluted	459			467			471			466			329
Diluted earnings per share	$	9.71		$	8.49		$	8.19		$	8.87		$	8.62
Balance sheet data (at end of period):
Total investments	$	109,234		$	100,968		$	102,444		$	99,094		$	66,251
Total assets	176,943			167,771			167,022			159,786			102,306
Net unpaid losses and loss expenses	48,509			48,271			49,165			47,832			26,562
Net future policy benefits	5,617			5,304			5,137			4,854			4,620
Long-term debt	13,559			12,087			11,556			12,610			9,389
Trust preferred securities	308			308			308			308			307
Total liabilities	121,612			117,459			115,850			111,511			73,171
Shareholders' equity	55,331			50,312			51,172			48,275			29,135
Book value per share	$	122.42		$	109.56		$	110.32		$	103.60		$	89.77
Selected data:
Loss and loss expense ratio (1)	62.1		%	62.1		%	65.8		%	57.7		%	58.1		%
Underwriting and administrative expense ratio (2)	28.5		%	28.5		%	28.9		%	30.6		%	29.2		%
Combined ratio (3)	90.6		%	90.6		%	94.7		%	88.3		%	87.3		%
Cash dividends per share	$	2.98		$	2.90		$	2.82		$	2.74		$	2.66


(1)	The Loss and loss expense ratio is calculated by dividing losses and loss expenses, excluding the Life Insurance segment, by Net premiums earned – excluding Life Insurance segment. Losses and loss expenses for the Life Insurance segment were $757 million, $766 million, $739 million, $663 million, and $601 million for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.


(2)	The Underwriting and administrative expense ratio is calculated by dividing the policy acquisition costs and administrative expenses, excluding the Life Insurance segment, by Net premiums earned – excluding Life Insurance segment. Policy acquisition costs and administrative expenses for the Life Insurance segment were $943 million, $867 million, $833 million, $816 million, and $767 million for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.

(2)

The Underwriting and administrative expense ratio is calculated by dividing the policy acquisition costs and administrative expenses, excluding the Life Insurance segment, by Net premiums earned – excluding Life Insurance segment. Policy acquisition costs and administrative expenses for the Life Insurance segment were $943 million, $867 million, $833 million, $816 million, and $767 million for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.


(3)	The combined ratio is the sum of Loss and loss expense ratio and the Underwriting and administrative expense ratio.

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