Item 16. Form 10-K Summary

None.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CHUBB LIMITED

By:			/s/ Peter C. Enns
			Peter C. Enns Executive Vice President and Chief Financial Officer

February 24, 2023

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature						Title			Date
/s/ Evan G. Greenberg						Chairman, Chief Executive Officer, and Director			February 24, 2023
Evan G. Greenberg
/s/ Peter C. Enns						Executive Vice President and Chief Financial Officer			February 24, 2023
Peter C. Enns						(Principal Financial Officer)
/s/ Annmarie T. Hagan						Chief Accounting Officer			February 24, 2023
Annmarie T. Hagan						(Principal Accounting Officer)
/s/ Michael G. Atieh						Director			February 24, 2023
Michael G. Atieh
/s/ Kathy Bonanno						Director			February 24, 2023
Kathy Bonanno
/s/ Sheila P. Burke						Director			February 24, 2023
Sheila P. Burke
/s/ Mary A. Cirillo						Director			February 24, 2023
Mary A. Cirillo
/s/ Michael P. Connors						Director			February 24, 2023
Michael P. Connors
/s/ Robert J. Hugin						Director			February 24, 2023
Robert J. Hugin

/s/ Robert W. Scully						Director			February 24, 2023
Robert W. Scully
/s/ Theodore E. Shasta						Director			February 24, 2023
Theodore E. Shasta
/s/ David H. Sidwell						Director			February 24, 2023
David H. Sidwell
/s/ Olivier Steimer						Director			February 24, 2023
Olivier Steimer
/s/ Luis Téllez						Director			February 24, 2023
Luis Téllez
/s/ Frances F. Townsend						Director			February 24, 2023
Frances F. Townsend

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CHUBB LIMITED AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

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Chubb Limited

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

												Page
Management's Responsibility for Financial Statements and Internal Control over Financial Reporting												F-3
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)												F-4
Consolidated Financial Statements
Consolidated Balance Sheets												F-7
Consolidated Statements of Operations and Comprehensive Income												F-8
Consolidated Statements of Shareholders’ Equity												F-9
Consolidated Statements of Cash Flows												F-10
Notes to Consolidated Financial Statements
Note 1.			Summary of significant accounting policies									F-11
Note 2.			Acquisitions									F-21
Note 3.			Investments									F-24
Note 4.			Fair value measurements									F-31
Note 5.			Reinsurance									F-38
Note 6.			Goodwill, Other intangible assets, and Value of business acquired									F-40
Note 7.			Unpaid losses and loss expenses									F-42
Note 8.			Taxation									F-65
Note 9.			Debt									F-69
Note 10.			Commitments, contingencies, and guarantees									F-70
Note 11.			Shareholders' equity									F-77
Note 12.			Share-based compensation									F-80
Note 13.			Postretirement benefits									F-84
Note 14.			Other income and expense									F-90
Note 15.			Segment information									F-90
Note 16.			Earnings per share									F-95
Note 17.			Related party transactions									F-95
Note 18.			Statutory financial information									F-97
Financial Statement Schedules
Schedule I			Summary of Investments - Other Than Investments in Related Parties									F-98
Schedule II			Condensed Financial Information of Registrant									F-99
Schedule IV			Supplemental Information Concerning Reinsurance									F-101
Schedule VI			Supplementary Information Concerning Property and Casualty Operations									F-102

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MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS AND

INTERNAL CONTROL OVER FINANCIAL REPORTING

Financial Statements

The consolidated financial statements of Chubb Limited (Chubb) were prepared by management, which is responsible for their reliability and objectivity. The statements have been prepared in conformity with accounting principles generally accepted in the United States of America and, as such, include amounts based on informed estimates and judgments of management. Financial information elsewhere in this annual report is consistent with that in the consolidated financial statements.

The Board of Directors (Board), operating through its Audit Committee, which is composed entirely of directors who are not officers or employees of Chubb, provides oversight of the financial reporting process and safeguarding of assets against unauthorized acquisition, use or disposition. The Audit Committee annually recommends the appointment of an independent registered public accounting firm and submits its recommendation to the Board for approval.

The Audit Committee meets with management, the independent registered public accountants and the internal auditor; approves the overall scope of audit work and related fee arrangements; and reviews audit reports and findings. In addition, the independent registered public accountants and the internal auditor meet separately with the Audit Committee, without management representatives present, to discuss the results of their audits; the adequacy of Chubb's internal control; the quality of its financial reporting; and the safeguarding of assets against unauthorized acquisition, use or disposition.

The consolidated financial statements have been audited by an independent registered public accounting firm, PricewaterhouseCoopers LLP, which has been given access to all financial records and related data, including minutes of all meetings of the Board and committees of the Board. Chubb believes that all representations made to our independent registered public accountants during their audits were valid and appropriate.

Management's Report on Internal Control over Financial Reporting

The management of Chubb is responsible for establishing and maintaining adequate internal control over financial reporting. Pursuant to the rules and regulations of the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of our Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our consolidated financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

As of December 31, 2022, management has evaluated the effectiveness of Chubb's internal control over financial reporting based on the criteria for effective-internal control over financial reporting established in “Internal Control - Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this evaluation, management has concluded that Chubb's internal control over financial reporting was effective as of December 31, 2022.

In conducting our evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2022, we have excluded the acquisition of the life and non-life insurance companies that house the personal accident, supplemental health, and life insurance business of Cigna in several Asian markets (Cigna) as permitted by the guidance issued by the Office of the Chief Accountant of the Securities and Exchange Commission (not to extend one year beyond the date of acquisition or one annual reporting period). The acquisition was completed on July 1, 2022. As of and for the year ended December 31, 2022, Cigna's assets represented 3 percent of consolidated assets and revenues represented 3 percent of consolidated revenues. See Note 2 for further discussion of this acquisition and its impact on Chubb's Consolidated financial statements.

PricewaterhouseCoopers LLP, the independent registered public accounting firm that audited the consolidated financial statements of Chubb included in this Annual Report, has issued a report on the effectiveness of Chubb's internal controls over financial reporting as of December 31, 2022. The report, which expresses an unqualified opinion on the effectiveness of Chubb's internal control over financial reporting as of December 31, 2022, is included in this Item under “Report of Independent Registered Public Accounting Firm” and follows this statement.

/s/ Evan G. Greenberg						/s/ Peter C. Enns
Evan G. Greenberg						Peter C. Enns
Chairman and Chief Executive Officer						Executive Vice President and Chief Financial Officer

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Chubb Limited

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Chubb Limited and its subsidiaries (the "Company") as of December 31, 2022 and 2021, and the related consolidated statements of operations and comprehensive income, of shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2022, including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

As described in Management's Report on Internal Control over Financial Reporting, management has excluded Cigna from its assessment of internal control over financial reporting as of December 31, 2022, because it was acquired by the Company in a purchase business combination during 2022. We have also excluded Cigna from our audit of internal control over financial reporting. Cigna is comprised of wholly-owned subsidiaries whose total assets and total revenues excluded from management's assessment and our audit of internal control over financial reporting represent 3 percent and 3 percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2022.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Valuation of Unpaid Losses and Loss Expenses, Net of Reinsurance

As described in Note 7 to the consolidated financial statements, as of December 31, 2022, the Company’s liability for unpaid losses and loss expenses, net of reinsurance, was $59.2 billion. The majority of the Company’s net unpaid losses and loss expenses arise from the Company’s long-tail casualty business (such as general liability and professional liability), U.S. sourced workers’ compensation, asbestos-related, environmental pollution and other exposures with high estimation uncertainty. The process of establishing loss and loss expense reserves requires the use of estimates and judgments based on circumstances underlying the insured loss at the date of accrual. The judgments involved in projecting the ultimate losses include the use and interpretation of various standard actuarial reserving methods that place reliance on the extrapolation of actual historical data, loss development patterns, industry data, and other benchmarks as appropriate. The reserves for the various product lines each require different qualitative and quantitative assumptions and judgments, including changes in business mix or volume, changes in ceded reinsurance structures, changes in claims handling practices, reported and projected loss trends, inflation, the legal environment, and the terms and conditions of the contracts sold to the Company’s insured parties.

The principal considerations for our determination that performing procedures relating to the valuation of unpaid losses and loss expenses, net of reinsurance, from the long-tail and other exposures as described above, is a critical audit matter are (i) the significant judgment by management in determining the reserve liability, which in turn led to a high degree of auditor subjectivity and judgment in performing procedures relating to the valuation; (ii) the significant audit effort and judgment in evaluating the audit evidence relating to the actuarial reserving methods and assumptions related to extrapolation of actual historical data, loss development patterns, industry data, other benchmarks, and the impact of qualitative and quantitative subjective assumptions and judgments; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Company’s valuation of unpaid losses and loss expenses, net of reinsurance, including controls over the selection of actuarial reserving methods and development of significant assumptions. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in performing one or a combination of procedures, including (i) independently estimating reserves on a sample basis using actual historical data and loss development patterns, as well as industry data and other benchmarks, to develop an independent estimate and comparing the independent estimate to management’s actuarially determined reserves and (ii) evaluating the appropriateness of management’s actuarial reserving methods and the reasonableness of the aforementioned assumptions, as well as assessing qualitative adjustments to carried reserves and the consistency of management’s approach period-over-period. Performing these procedures involved testing the completeness and accuracy of data provided by management.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Acquisition of Cigna's Life and Accident and Health Insurance Business in Asian Markets - Valuation of Business Acquired Intangible Asset

As described in Notes 1 and 2 to the consolidated financial statements, the Company completed the acquisition of Cigna’s personal accident, supplemental health, and life insurance business in several Asian markets on July 1, 2022 for a total purchase price of $5.4 billion, which generated $3.5 billion of value of business acquired (VOBA). VOBA represents the fair value of the future profits of in-force long duration contracts. Management determined the fair value of VOBA by calculating the present value of estimated net cash flows for the contracts in force at the acquisition date. As described in Note 6, management judgment was applied in estimating VOBA, which was based on many factors including mortality, morbidity, persistency, investment yields, expenses and the discount rate, with the discount rate being the most significant factor.

The principal considerations for our determination that performing procedures relating to the valuation of VOBA is a critical audit matter are (i) the significant judgment by management when determining the fair value; (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating the significant assumption related to the discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of VOBA and controls over the development of the discount rate significant assumption. These procedures also included, among others, (i) testing management’s process for developing the fair value estimate of VOBA, (ii) evaluating the appropriateness of the present value of estimated net cash flows method, (iii) testing the completeness and accuracy of the data used in the method, and (iv) evaluating the reasonableness of the discount rate significant assumption. Professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of the method used by management and evaluating the reasonableness of the discount rate significant assumption.

/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Philadelphia, PA
February 24, 2023

We have served as the Company’s auditor since 1985, which includes periods before the Company became subject to SEC reporting requirements.

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CONSOLIDATED BALANCE SHEETS

Chubb Limited and Subsidiaries

									December 31						December 31
(in millions of U.S. dollars, except share and per share data)									2022						2021
Assets
Investments
			Fixed maturities available for sale, at fair value, net of valuation allowance - $169 and $14 (amortized cost – $93,355 and $90,493)						$	85,220					$	93,108
			Fixed maturities held to maturity, at amortized cost, net of valuation allowance - $34 and $35 (fair value – $8,439 and $10,647)						8,848						10,118
			Equity securities, at fair value						827						4,782
			Short-term investments, at fair value (amortized cost – $4,962 and $3,147)						4,960						3,146
			Other investments, at fair value						13,696						11,169
						Total investments			113,551						122,323
Cash									2,012						1,659
Restricted cash									115						152
Securities lending collateral									1,523						1,831
Accrued investment income									941						821
Insurance and reinsurance balances receivable, net of valuation allowance - $52 and $46									11,933						11,322
Reinsurance recoverable on losses and loss expenses, net of valuation allowance - $351 and $329									18,901						17,366
Reinsurance recoverable on policy benefits									303						213
Deferred policy acquisition costs									5,788						5,513
Value of business acquired									3,596						236
Goodwill									16,287						15,213
Other intangible assets									5,441						5,455
Prepaid reinsurance premiums									3,140						3,028
Investments in partially-owned insurance companies									2,877						3,130
Other assets									12,736						11,792
Total assets									$	199,144					$	200,054
Liabilities
Unpaid losses and loss expenses									$	76,323					$	72,943
Unearned premiums									20,360						19,101
Future policy benefits									10,120						5,947
Insurance and reinsurance balances payable									7,795						7,243
Securities lending payable									1,523						1,831
Accounts payable, accrued expenses, and other liabilities									15,587						15,004
Deferred tax liabilities									292						389
Repurchase agreements									1,419						1,406
Short-term debt									475						999
Long-term debt									14,402						15,169
Trust preferred securities									308						308
Total liabilities									148,604						140,340
Commitments and contingencies (refer to Note 10)
Shareholders’ equity
Common Shares (CHF 24.15 par value; 446,376,614 and 474,021,114 shares issued; 414,594,856 and 426,572,612 shares outstanding)									10,346						10,985
Common Shares in treasury (31,781,758 and 47,448,502 shares)									(5,113)						(7,464)
Additional paid-in capital									7,166						8,478
Retained earnings									48,334						47,365
Accumulated other comprehensive income (loss) (AOCI)									(10,193)						350
Total shareholders’ equity									50,540						59,714
Total liabilities and shareholders’ equity									$	199,144					$	200,054

See accompanying notes to the Consolidated Financial Statements

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

Chubb Limited and Subsidiaries

For the years ended December 31, 2022, 2021, and 2020
(in millions of U.S. dollars, except per share data)			2022						2021						2020
Revenues
Net premiums written			$	41,755					$	37,868					$	33,820
Increase in unearned premiums			(1,366)						(1,513)						(703)
Net premiums earned			40,389						36,355						33,117
Net investment income			3,742						3,456						3,375
Net realized gains (losses)			(965)						1,152						(498)
Total revenues			43,166						40,963						35,994
Expenses
Losses and loss expenses			23,342						21,980						21,710
Policy benefits			1,492						699						784
Policy acquisition costs			7,392						6,918						6,547
Administrative expenses			3,395						3,136						2,979
Interest expense			570						492						516
Other (income) expense			74						(2,365)						(994)
Amortization of purchased intangibles			285						287						290
Cigna integration expenses			48						—						—
Total expenses			36,598						31,147						31,832
Income before income tax			6,568						9,816						4,162
Income tax expense			1,255						1,277						629
Net income			$	5,313					$	8,539					$	3,533
Other comprehensive income (loss)
Change in:
Unrealized appreciation (depreciation)			$	(10,578)					$	(2,938)					$	2,592
Cumulative foreign currency translation adjustment			(986)						(530)						306
Other, including postretirement benefit liability adjustment			(100)						522						(232)
Other comprehensive income (loss), before income tax			(11,664)						(2,946)						2,666
Income tax (expense) benefit related to OCI items			1,121						427						(416)
Other comprehensive income (loss)			(10,543)						(2,519)						2,250
Comprehensive income (loss)			$	(5,230)					$	6,020					$	5,783
Earnings per share
Basic earnings per share			$	12.66					$	19.41					$	7.82
Diluted earnings per share			$	12.55					$	19.27					$	7.79

See accompanying notes to the Consolidated Financial Statements

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Chubb Limited and Subsidiaries

For the years ended December 31, 2022, 2021, and 2020
(in millions of U.S. dollars)			2022						2021						2020
Common Shares
Balance – beginning of year			$	10,985					$	11,064					$	11,121
Cancellation of treasury shares			(639)						(79)						(57)
Balance – end of year			10,346						10,985						11,064
Common Shares in treasury
Balance – beginning of year			(7,464)						(3,644)						(3,754)
Common Shares repurchased			(3,014)						(4,861)						(516)
Cancellation of treasury shares			4,983						590						323
Net shares issued under employee share-based compensation plans			382						451						303
Balance – end of year			(5,113)						(7,464)						(3,644)
Additional paid-in capital
Balance – beginning of year			8,478						9,815						11,203
Net shares issued under employee share-based compensation plans			(173)						(179)						(195)
Exercise of stock options			(43)						(52)						(50)
Share-based compensation expense			283						286						255
Funding of dividends declared to Retained earnings			(1,379)						(1,392)						(1,398)
Balance – end of year			7,166						8,478						9,815
Retained earnings
Balance – beginning of year			47,365						39,337						36,142
Cumulative effect of adoption of accounting standards			—						—						(72)
Balance – beginning of year, as adjusted			47,365						39,337						36,070
Net income			5,313						8,539						3,533
Cancellation of treasury shares			(4,344)						(511)						(266)
Funding of dividends declared from Additional paid-in capital			1,379						1,392						1,398
Dividends declared on Common Shares			(1,379)						(1,392)						(1,398)
Balance – end of year			48,334						47,365						39,337
Accumulated other comprehensive income (loss) (AOCI)
Balance – beginning of year			350						2,869						619
Total other comprehensive income (loss)			(10,543)						(2,519)						2,250
Balance – end of year			(10,193)						350						2,869
Total shareholders’ equity			$	50,540					$	59,714					$	59,441

See accompanying notes to the Consolidated Financial Statements

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Chubb Limited and Subsidiaries

For the years ended December 31, 2022, 2021, and 2020
(in millions of U.S. dollars)			2022						2021						2020
Cash flows from operating activities
Net income			$	5,313					$	8,539					$	3,533
Adjustments to reconcile net income to net cash flows from operating activities
Net realized (gains) losses			965						(1,152)						498
Amortization of premiums/discounts on fixed maturities			189						332						367
Amortization of purchased intangibles			285						287						290
Equity in net income of partially-owned entities			(16)						(2,433)						(1,019)
Deferred income taxes			132						(74)						(333)
Unpaid losses and loss expenses			4,222						5,791						4,664
Unearned premiums			1,477						1,857						846
Future policy benefits			464						239						236
Insurance and reinsurance balances payable			461						582						535
Accounts payable, accrued expenses, and other liabilities			223						536						(98)
Income taxes payable			(149)						48						46
Insurance and reinsurance balances receivable			(696)						(984)						(114)
Reinsurance recoverable			(1,776)						(1,953)						(336)
Deferred policy acquisition costs			(328)						(247)						(89)
Other			477						(219)						759
Net cash flows from operating activities			11,243						11,149						9,785
Cash flows from investing activities
Purchases of fixed maturities available for sale			(27,844)						(30,222)						(26,298)
Purchases of fixed maturities held to maturity			(618)						(594)						(202)
Purchases of equity securities			(895)						(1,167)						(6,419)
Sales of fixed maturities available for sale			16,855						6,596						11,377
Sales of equity securities			4,615						1,018						3,880
Maturities and redemptions of fixed maturities available for sale			9,415						17,361						12,450
Maturities and redemptions of fixed maturities held to maturity			1,712						1,964						995
Net change in short-term investments			(1,452)						1,175						(81)
Net derivative instruments settlements			(84)						(219)						(113)
Private equity contributions			(2,649)						(2,471)						(1,924)
Private equity distributions			1,017						1,421						907
Acquisition of subsidiaries (net of cash acquired of $366, nil, and nil)			(4,982)						—						—
Payment, including deposit, for Huatai Group interest			(184)						(1,184)						(1,623)
Other			(560)						(337)						(470)
Net cash flows used for investing activities			(5,654)						(6,659)						(7,521)
Cash flows from financing activities
Dividends paid on Common Shares			(1,375)						(1,401)						(1,388)
Common Shares repurchased			(2,894)						(4,861)						(523)
Proceeds from issuance of long-term debt			—						1,576						988
Proceeds from issuance of repurchase agreements			4,510						1,858						2,354
Repayment of long-term debt			(1,000)						—						(1,301)
Repayment of repurchase agreements			(4,508)						(1,858)						(2,354)
Proceeds from share-based compensation plans			264						300						145
Policyholder contract deposits and other			496						512						470
Policyholder contract withdrawals and other			(519)						(454)						(386)
Tax withholding payments for share-based compensation plans			(101)						(81)						(87)
Net cash flows used for financing activities			(5,127)						(4,409)						(2,082)
Effect of foreign currency rate changes on cash and restricted cash			(146)						(106)						8
Net increase (decrease) in cash and restricted cash			316						(25)						190
Cash and restricted cash – beginning of year			1,811						1,836						1,646
Cash and restricted cash – end of year			$	2,127					$	1,811					$	1,836
Supplemental cash flow information
Taxes paid			$	1,242					$	1,298					$	902
Interest paid			$	552					$	492					$	524

See accompanying notes to the Consolidated Financial Statements

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

1. Summary of significant accounting policies

a) Basis of presentation

Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 15 for additional information.

The accompanying Consolidated Financial Statements, which include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Amounts included in the Consolidated Financial Statements reflect our best estimates and assumptions; actual amounts could differ materially from these estimates. Chubb's principal estimates include:

• unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves and non-A&E casualty exposures;

• future policy benefits reserves;

• amortization of deferred policy acquisition costs and value of business acquired (VOBA);

• reinsurance recoverable, including a valuation allowance for uncollectible reinsurance;

• the assessment of risk transfer for certain structured insurance and reinsurance contracts;

• the valuation of the investment portfolio and assessment of valuation allowance for expected credit losses;

• the valuation of deferred income taxes;

• the valuation and amortization of purchased intangibles; and

• the assessment of goodwill for impairment.

b) Premiums

Premiums are generally recorded as written upon inception of the policy. For multi-year policies for which premiums written are payable in annual installments, only the current annual premium is included as written at policy inception due to the ability of the insured/reinsured to commute or cancel coverage within the policy term. The remaining annual premiums are recorded as written at each successive anniversary date within the multi-year term.

For property and casualty (P&C) insurance and reinsurance products, premiums written are primarily earned on a pro-rata basis over the policy terms to which they relate. Unearned premiums represent the portion of premiums written applicable to the unexpired portion of the policies in force. For retrospectively-rated policies, written premiums are adjusted to reflect expected ultimate premiums consistent with changes to incurred losses, or other measures of exposure as stated in the policy, and earned over the policy coverage period.

Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. All remaining unearned premiums are recognized over the remaining coverage period.

Premiums from long-duration contracts such as certain traditional term life, whole life, endowment, and long-duration personal accident and health (A&H) policies are generally recognized as revenue when due from policyholders. Traditional life policies include those contracts with fixed and guaranteed premiums and benefits. Benefits and expenses are matched with income to result in the recognition of profit over the life of the contracts.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

Retroactive loss portfolio transfer (LPT) contracts in which the insured loss events occurred prior to contract inception are evaluated to determine whether they meet criteria for reinsurance accounting. If reinsurance accounting is appropriate, written premiums are fully earned and corresponding losses and loss expenses recognized at contract inception. These contracts can cause significant variances in gross premiums written, net premiums written, net premiums earned, and net incurred losses in the years in which they are written. Reinsurance contracts sold not meeting the criteria for reinsurance accounting are recorded using the deposit method as described below in Note 1 l).

Reinsurance premiums assumed are based on information provided by ceding companies supplemented by our own estimates of premium when we have not received ceding company reports. Estimates are reviewed and adjustments are recorded in the period in which they are determined. Premiums are earned over the coverage terms of the related reinsurance contracts and range from one to three years.

c) Deferred policy acquisition costs and value of business acquired

Policy acquisition costs consist of commissions (direct and ceded), premium taxes, and certain underwriting costs related directly to the successful acquisition of new or renewal insurance contracts. A VOBA intangible asset is established upon the acquisition of blocks of long-duration contracts in a business combination and represents the present value of estimated net cash flows for the contracts in force at the acquisition date. Acquisition costs and VOBA, collectively policy acquisition costs, are deferred and amortized. Amortization is recorded in Policy acquisition costs in the Consolidated statements of operations. Policy acquisition costs on P&C contracts are generally amortized ratably over the period in which premiums are earned. Policy acquisition costs on traditional long-duration contracts are amortized over the estimated life of the contracts, generally in proportion to premium revenue recognized based upon the same assumptions used in estimating the liability for future policy benefits. For non-traditional long-duration contracts, we amortize policy acquisition costs over the expected life of the contracts in proportion to expected gross profits. The effect of changes in estimates of expected gross profits is reflected in the period the estimates are revised. Policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable policy acquisition costs are expensed in the period identified.

Advertising costs are expensed as incurred except for direct-response campaigns that qualify for cost deferral, principally related to long-duration A&H business produced by the Overseas General Insurance segment, which are deferred and recognized as a component of Policy acquisition costs*.* For individual direct-response marketing campaigns that we can demonstrate have specifically resulted in incremental sales to customers and such sales have probable future economic benefits, incremental costs directly related to the marketing campaigns are capitalized as Deferred policy acquisition costs. Deferred policy acquisition costs, including deferred marketing costs, are reviewed regularly for recoverability from future income, including investment income, and amortized in proportion to premium revenue recognized, primarily over a ten-year period. The expected economic future benefit period is based upon the same assumptions used in estimating the liability for future policy benefits. The expected future benefit period is evaluated periodically based on historical results and adjusted prospectively. The amount of deferred marketing costs reported in Deferred policy acquisition costs in the Consolidated balance sheets was $243 million and $189 million at December 31, 2022 and 2021, respectively. Amortization expense for deferred marketing costs was $121 million, $85 million, and $99 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Effective on January 1, 2023, we adopted new U.S. GAAP accounting guidance for long-duration contracts that affects the accounting for deferred policy acquisition costs and VOBA. Refer to the Note 1 t) for additional information.

d) Reinsurance

Chubb assumes and cedes reinsurance with other insurance companies to provide greater diversification of business and minimize the net loss potential arising from large risks. Ceded reinsurance contracts do not relieve Chubb of its primary obligation to policyholders.

For both ceded and assumed reinsurance, risk transfer requirements must be met in order to account for a contract as reinsurance, principally resulting in the recognition of cash flows under the contract as premiums and losses. To meet risk transfer requirements, a reinsurance contract must include insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. To assess risk transfer for certain contracts, Chubb generally develops expected discounted cash flow analyses at contract inception. Deposit accounting is used for contracts that do not meet risk transfer requirements. Deposit accounting requires that consideration received or paid be recorded in the balance sheet as opposed to recording premiums written or losses incurred in the statement of operations. Non-refundable fees on deposit contracts are earned based on the terms of the contract described below in Note 1 l).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

Reinsurance recoverable includes balances due from reinsurance companies for paid and unpaid losses and loss expenses and future policy benefits that will be recovered from reinsurers, based on contracts in force. The method for determining the reinsurance recoverable on unpaid losses and loss expenses incurred but not reported (IBNR) involves actuarial estimates consistent with those used to establish the associated liability for unpaid losses and loss expenses as well as a determination of Chubb's ability to cede unpaid losses and loss expenses under the terms of the reinsurance agreement.

Reinsurance recoverable is presented net of a valuation allowance for uncollectible reinsurance determined based upon a review of the financial condition of reinsurers and other factors. The valuation allowance for uncollectible reinsurance is based on an estimate of the reinsurance recoverable balance that will ultimately be unrecoverable due to reinsurer insolvency, a contractual dispute, or any other reason. The valuation of this allowance includes several judgments including certain aspects of the allocation of reinsurance recoverable on IBNR claims by reinsurer and a default analysis to estimate uncollectible reinsurance. The primary components of the default analysis are reinsurance recoverable balances by reinsurer, net of collateral, and default factors used to determine the portion of a reinsurer's balance deemed uncollectible. The definition of collateral for this purpose requires some judgment and is generally limited to assets held in a Chubb-only beneficiary trust, letters of credit, and liabilities held with the same legal entity for which Chubb believes there is a contractual right of offset. The determination of the default factor is principally based on the financial strength rating of the reinsurer. Default factors require considerable judgment and are determined using the current financial strength rating, or rating equivalent, of each reinsurer as well as other key considerations and assumptions. Changes in the valuation allowance for uncollectible reinsurance recoverables are recorded in Losses and loss expenses in the Consolidated statements of operations. The more significant considerations to calculate the valuation allowance include, but are not necessarily limited to, the following:

• For reinsurers that maintain a financial strength rating from a major rating agency, and for which recoverable balances are considered representative of the larger population (i.e., default probabilities are consistent with similarly rated reinsurers and payment durations conform to averages), the financial rating is based on a published source and the default factor is based on published default statistics of a major rating agency applicable to the reinsurer's particular rating class. When a recoverable is expected to be paid in a brief period of time by a highly rated reinsurer, such as certain property catastrophe claims, a default factor may not be applied;

• For balances recoverable from reinsurers that are both unrated by a major rating agency and for which management is unable to determine a credible rating equivalent based on a parent, affiliate, or peer company, we determine a rating equivalent based on an analysis of the reinsurer that considers an assessment of the creditworthiness of the particular entity, industry benchmarks, or other factors as considered appropriate. We then apply the applicable default factor for that rating class. For balances recoverable from unrated reinsurers for which the ceded reserve is below a certain threshold, we generally apply a default factor of 34 percent, consistent with published statistics of a major rating agency;

• For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting valuation allowance for uncollectible reinsurance based on reinsurer-specific facts and circumstances. Upon initial notification of an insolvency, we generally recognize an expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the valuation allowance for uncollectible reinsurance. When regulatory action is taken on a reinsurer, we generally recognize a default factor by estimating an expected recovery on all balances outstanding, net of collateral. When sufficient credible information becomes available, we adjust the valuation allowance for uncollectible reinsurance by establishing a default factor pursuant to information received; and

• For other recoverables, management determines the valuation allowance for uncollectible reinsurance based on the specific facts and circumstances.

The methods used to determine the reinsurance recoverable balance and related valuation allowance for uncollectible reinsurance are regularly reviewed and updated, and any resulting adjustments are reflected in earnings in the period identified.

The methods used to determine the valuation allowance for uncollectible high deductible recoverable amounts and valuation allowance for insurance and reinsurance balances receivable are similar to the processes used to determine the valuation allowance for uncollectible reinsurance recoverable. For information on high deductible policies, refer to section i) Unpaid losses and loss expenses, below.

Prepaid reinsurance premiums represent the portion of premiums ceded to reinsurers applicable to the unexpired coverage terms of the reinsurance contracts in-force.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

e) Investments

Fixed maturities, equity securities, and short-term investments

Fixed maturities are classified as either available for sale or held to maturity.

• Available for sale (AFS) portfolio is reported at fair value, net of a valuation allowance for credit losses, with changes in fair value recorded as a separate component of AOCI in Shareholders' equity.

• Held to maturity (HTM) portfolio includes securities for which we have the ability and intent to hold to maturity or redemption and is reported at amortized cost, net of a valuation allowance for credit losses.

Equity securities are reported at fair value with changes in fair value recorded in Net realized gains (losses) on the Consolidated statements of operations.

Short-term investments comprise securities due to mature within one year of the date of purchase and are recorded at fair value which typically approximates cost.

Interest, dividend income, and amortization of fixed maturity market premiums and discounts, related to these securities are recorded in Net investment income, net of investment management and custody fees, in the Consolidated statements of operations. Realized gains or losses on sales of investments are determined on a first-in, first-out basis.

In addition, net investment income includes the amortization of the fair value adjustment related to the acquired invested assets of Cigna's business in Asia and the Chubb Corp. At December 31, 2022, the remaining balance of this fair value adjustment was $211 million which is expected to accrete as a net benefit over the next eleven years; however, the estimate could vary based on current market conditions, bond calls, and the duration of the acquired investment portfolio. In addition, sales of these acquired fixed maturities would also reduce the fair value adjustment balance. For mortgage-backed securities and any other holdings for which there is a prepayment risk, prepayment assumptions are evaluated and revised as necessary. Any adjustments required due to the resultant change in effective yields and maturities are recognized prospectively. Prepayment fees or call premiums that are only payable when a security is called prior to its maturity are earned when received and reflected in Net investment income.

Valuation allowance for fixed income securities

Management evaluates current expected credit losses (CECL) for all HTM securities each quarter. U.S. treasury and agency securities and U.S. government agency mortgage-backed securities are assumed to have no risk of non-payment and therefore are excluded from the CECL evaluation. The remaining HTM securities are evaluated for potential credit loss on a collective pool basis. We elected to pool HTM securities by 1) external credit rating and 2) time to maturity (duration). These characteristics are the most representative of similar risk characteristics within our portfolio. Chubb pools HTM securities and calculates an expected credit loss for each pool using Moody’s corporate bond default average, corporate bond recovery rate, and an economic cycle multiplier. The multiplier is based on the leading economic index and will adjust the average default frequency for a forward-looking economic outlook. Management monitors the credit quality of HTM securities through the review of external credit ratings on a quarterly basis.

Management evaluates expected credit losses (ECL) for AFS securities when fair value is below amortized cost. AFS securities are evaluated for potential credit loss on an individual security level but the evaluation may use assumptions consistent with expectations of credit losses for a group of similar securities. If management has the intent to sell or will be required to sell the security before recovery, the entire impairment loss will be recorded through income to Net realized gains and losses. If management does not have the intent to sell or will not be required to sell the security before recovery, an allowance for credit losses is established and is recorded through income to Net realized gains and losses, and the non-credit loss portion is recorded through other comprehensive income.

Examples of criteria that are collectively evaluated to determine if a credit loss has occurred include the following:

• The extent to which the fair value is less than amortized cost;

• Adverse conditions related to the security, industry, or geographic area;

• Downgrades in the security's credit rating by a rating agency; and

• Failure of the issuer to make scheduled principal or interest payments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

AFS securities that meet any one of the criteria included above will be subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. Projected cash flows are driven primarily by assumptions regarding probability of default and the timing and amount of recoveries associated with defaults. Chubb developed the projected cash flows using market data, issuer-specific information, and credit ratings. In combination with contractual cash flows and the use of historical default and recovery data by Moody's Investors Service (Moody's) rating category we generate expected cash flows using the average cumulative issuer-weighted global default rates by letter rating.

If the present value of expected future cash flows is less than the amortized cost, a credit loss exists and an allowance for credit losses will be recognized. If the present value of expected future cash flows is equal to or greater than the amortized cost basis, management will conclude an expected credit loss does not exist.

Management reviews credit losses and the valuation allowance for expected credit losses each quarter. When all or a portion of a fixed maturity security is identified to be uncollectible and written off, the valuation allowance for expected credit losses is reduced. In general, a security is considered uncollectible no later than when all efforts to collect contractual cash flows have been exhausted. Below are considerations for when a security may be deemed uncollectible:

• We have sufficient information to determine that the issuer of the security is insolvent;

• We receive notice that the issuer of the security has filed for bankruptcy, and the collectability is expected to be adversely impacted by the bankruptcy;

• The issuer of a security has violated multiple debt covenants;

• Amounts have been past due for a specified period of time with no response from the issuer;

• A significant deterioration in the value of the collateral has occurred; and

• We have received correspondence from the issuer of the security indicating that it doesn’t intend to pay the contractual principal and interest.

We elected to not measure an allowance for accrued investment income as uncollectible balances are written off in a timely manner, typically 30 to 45 days after uncollected balances are due.

Other investments

Other investments principally comprise investment funds, limited partnerships, partially-owned investment companies, life insurance policies, policy loans, and non-qualified separate account assets.

Investment funds and limited partnerships

Investment funds, limited partnerships, and all other investments over which Chubb cannot exercise significant influence are accounted for as follows. Generally, we own less than three percent of the investee’s shares.

• Income and expenses from these funds are reported within Net investment income.

• These funds are carried at net asset value, which approximates fair value with changes in fair value recorded in Net realized gains (losses) on the Consolidated statements of operations. Refer to Note 4 for a further discussion on net asset value.

• As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three-month lag.

• Sales of these investments are reported within Net realized gains (losses).

Partially-owned investment companies

Partially-owned investment companies are limited partnerships where our ownership interest is in excess of three percent are accounted for under the equity method because Chubb exerts significant influence. These investments apply investment company accounting to determine operating results, and Chubb retains the investment company accounting in applying the equity method.

• This means that investment income, realized gains or losses, and unrealized gains or losses are included in the portion of equity earnings reflected in Other (income) expense.

• As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three-month lag.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

Other

• Policy loans are carried at outstanding balance and interest income is reflected in Net investment income.

• Life insurance policies are carried at policy cash surrender value and income is reflected in Other (income) expense.

• Non-qualified separate account assets are supported by assets that do not qualify for separate accounting reporting under GAAP. The underlying securities are recorded on a trade date basis and carried at fair value. Unrealized gains and losses on non-qualified separate account assets are reflected in Other (income) expense.

Investments in partially-owned insurance companies

Investments in partially-owned insurance companies primarily represent direct investments in which Chubb has significant influence and as such, meet the requirements for equity accounting. Generally, we own twenty percent or more of the investee’s shares. We report our share of the net income or loss of the partially-owned insurance companies in Other (income) expense.

Securities lending program

Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return which is recorded within Net investment income in the Consolidated statements of operations.

Borrowers provide collateral, in the form of either cash or approved securities, at a minimum of 102 percent of the fair value of the loaned securities. Each security loan is deemed to be an overnight transaction. Cash collateral is invested in a collateral pool which is managed by the banking institution. The collateral pool is subject to written investment guidelines with key objectives which include the safeguard of principal and adequate liquidity to meet anticipated redemptions. The fair value of the loaned securities is monitored on a daily basis, with additional collateral obtained or refunded as the fair value of the loaned securities changes. The collateral is held by the third-party banking institution, and the collateral can only be accessed in the event that the institution borrowing the securities is in default under the lending agreement. As a result of these restrictions, we consider our securities lending activities to be non-cash investing and financing activities. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan.

The fair value of the securities on loan is included in fixed maturities and equity securities in the Consolidated balance sheets. The securities lending collateral is reported as a separate line in the Consolidated balance sheets with a related liability reflecting our obligation to return the collateral plus interest.

Repurchase agreements

Similar to securities lending arrangements, securities sold under repurchase agreements, whereby Chubb sells securities and repurchases them at a future date for a predetermined price, are accounted for as collateralized investments and borrowings and are recorded at the contractual repurchase amounts plus accrued interest. Assets to be repurchased are the same or substantially the same as the assets transferred, and the transferor, through right of substitution, maintains the right and ability to redeem the collateral on short notice. The fair value of the underlying securities is included in fixed maturities and equity securities. In contrast to securities lending programs, the use of cash received is not restricted. We report the obligation to return the cash as Repurchase agreements in the Consolidated balance sheets and record the fees under these repurchase agreements within Interest expense on the Consolidated statements of operations.

Refer to Note 4 for a discussion on the determination of fair value for Chubb's various investment securities.

f) Derivative instruments

Derivative instruments are carried at fair value in the Consolidated balance sheets in either Accounts payable, accrued expenses, and other liabilities or Other assets. We participate in these derivative instruments in two principal ways:

(i) To sell protection to customers as an insurance or reinsurance contract that meets the definition of a derivative for accounting purposes*.* This category principally comprised our GLB contracts; and

(ii) To mitigate financial risks and manage certain investment portfolio risks and exposures, including assets and liabilities denominated in foreign currencies. We use derivative instruments including futures, options, swaps, and foreign currency forward contracts. Refer to Note 10 for additional information.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

Changes in fair value of derivatives not designated as hedging instruments are included in Net realized gains (losses) in the Consolidated statements of operations.

Additionally, certain derivative instruments are designated as hedging instruments and qualify for hedge accounting. These derivatives designated as hedging instruments must be highly effective in mitigating the designated changes in fair value or cash flows of the hedged item. We assess at the hedge's inception, and continue to qualitatively assess on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to be highly effective in offsetting changes in the hedged items. Derivatives designated as hedging instruments include cross-currency swaps designated as fair value hedges for foreign currency exposure associated with portions of our euro denominated debt and net investment hedges for foreign currency exposure in the net investments of certain foreign subsidiaries. Refer to Note 10 for additional information.

Changes in fair value of net investment hedges are recorded in Cumulative translation adjustments (CTA) within OCI. Changes in fair value of fair value hedges that principally offset the foreign currency remeasurement on the hedged debt is recorded within Net realized gains (losses) on the Consolidated statement of operations with the remaining change in fair value recorded in Other, within OCI.

g) Cash

We have agreements with a third-party bank provider which implemented two international multi-currency notional cash pooling programs. In each program, participating Chubb entities establish deposit accounts in different currencies with the bank provider and each day the credit or debit balances in every account are notionally translated into a single currency (U.S. dollars) and then notionally pooled. The bank extends overdraft credit to any participating Chubb entity as needed, provided that the overall notionally-pooled balance of all accounts in each pool at the end of each day is at least zero. Actual cash balances are not physically converted and are not commingled between legal entities. Any overdraft balances incurred under this program by a Chubb entity would be guaranteed by Chubb Limited (up to $300 million in the aggregate). Our syndicated letter of credit facility allows for same day drawings to fund a net pool overdraft should participating Chubb entities overdraw contributed funds from the pool.

Restricted cash

Restricted cash in the Consolidated balance sheets represents amounts held for the benefit of third parties and is legally or contractually restricted as to withdrawal or usage. Amounts include deposits with U.S. and non-U.S. regulatory authorities, trust funds set up for the benefit of ceding companies, and amounts pledged as collateral to meet financing arrangements.

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated balance sheets that total to the amounts shown in the Consolidated statements of cash flows:

			December 31
(in millions of U.S. dollars)			2022						2021						2020
Cash			$	2,012					$	1,659					$	1,747
Restricted cash			115						152						89
Total cash and restricted cash shown in the Consolidated statements of cash flows			$	2,127					$	1,811					$	1,836

h) Goodwill, and Other intangible assets

Goodwill represents the excess of the cost of acquisitions over the fair value of net assets acquired and is not amortized. Goodwill is assigned at acquisition to the applicable reporting unit of the acquired entities giving rise to the goodwill. Goodwill impairment tests are performed annually or more frequently if circumstances indicate a possible impairment. For goodwill impairment testing, we use a qualitative assessment to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of a reporting unit is greater than its carrying amount. If our assessment indicates it is more likely than not that carrying value exceeds fair value, we quantitatively estimate a reporting unit's fair value. Goodwill recorded in connection with investments in partially-owned insurance companies is recorded in Investments in partially-owned insurance companies and is also measured for impairment annually.

Indefinite lived intangible assets are not subject to amortization. Finite lived intangible assets are amortized over their useful lives, generally with an average original useful life of 25 years. Intangible assets are regularly reviewed for indicators of impairment. Impairment is recognized if the carrying amount is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and fair value.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

i) Unpaid losses and loss expenses

A liability is established for the estimated unpaid losses and loss expenses under the terms of, and with respect to, Chubb's policies and agreements. Similar to premiums that are recognized as revenues over the coverage period of the policy, a liability for unpaid losses and loss expenses is recognized as expense when insured events occur over the coverage period of the policy. This liability includes a provision for both reported claims (case reserves) and incurred but not reported claims (IBNR reserves). IBNR reserve estimates are generally calculated by first projecting the ultimate cost of all losses that have occurred (expected losses), and then subtracting paid losses, case reserves, and loss expenses. The methods of determining such estimates and establishing the resulting liability are reviewed regularly and any adjustments are reflected in income in the period in which they become known. Future developments may result in losses and loss expenses materially greater or less than recorded amounts.

Except for net unpaid loss and loss expense reserves for certain structured settlements for which the timing and amount of future claim payments are reliably determinable and certain reserves for unsettled claims, Chubb does not discount its P&C loss reserves. The net undiscounted reserves related to structured settlements and certain reserves for unsettled claims are immaterial.

Included in Unpaid losses and loss expenses are liabilities for A&E claims and expenses. These unpaid losses and loss expenses are principally related to claims arising from remediation costs associated with hazardous waste sites and bodily-injury claims related to asbestos products and environmental hazards. The estimation of these liabilities is particularly sensitive to changes in the legal environment including specific settlements that may be used as precedents to settle future claims. However, Chubb does not anticipate future changes in laws and regulations in setting its A&E reserve levels.

Also included in Unpaid losses and loss expenses is the fair value adjustment of $74 million and $90 million at December 31, 2022 and 2021, respectively, principally related to Chubb Corp’s historical unpaid losses and loss expenses. The estimated fair value consists of the present value of the expected net unpaid loss and loss adjustment expense payments adjusted for an estimated risk margin. The estimated cash flows are discounted at a risk-free rate. The estimated risk margin varies based on the inherent risks associated with each type of reserve. The fair value is amortized through Amortization of purchased intangibles on the Consolidated statements of operations through the year 2032, based on the estimated payout patterns of unpaid loss and loss expenses at the acquisition date.

Our loss reserves are presented net of contractual deductible recoverable amounts due from policyholders. Under the terms of certain high deductible policies which we offer, such as workers’ compensation and general liability, our customers are responsible to reimburse us for an agreed-upon dollar amount per claim. In nearly all cases we are required under such policies to pay covered claims first, and then seek reimbursement for amounts within the applicable deductible from our customers. We generally seek to mitigate this risk through collateral agreements.

Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves first reported in previous calendar years and excludes the effect of losses from the development of earned premiums from previous accident years.

For purposes of analysis and disclosure, management views prior period development to be changes in the nominal value of loss estimates from period to period, net of premium and profit commission adjustments on loss sensitive contracts. Prior period development generally excludes changes in loss estimates that do not arise from the emergence of claims, such as those related to uncollectible reinsurance, interest, unallocated loss adjustment expenses, or foreign currency. Accordingly, specific items excluded from prior period development include the following: gains/losses related to foreign currency remeasurement; losses recognized from the early termination or commutation of reinsurance agreements that principally relate to the time value of money; changes in the value of reinsurance business assumed reflected in losses incurred but principally related to the time value of money; and losses that arise from changes in estimates of earned premiums from prior accident years. Except for foreign currency remeasurement, which is included in Net realized gains (losses), these items are included in current year losses.

j) Future policy benefits

The valuation of long-duration contract reserves requires management to make estimates and assumptions regarding expenses, mortality, persistency, and investment yields. Estimates are primarily based on historical experience and include a margin for adverse deviation. Interest rates used in calculating reserves range from less than 1.0 percent to 9.0 percent at both December 31, 2022 and 2021. Actual results could differ materially from these estimates. Management monitors actual experience and where circumstances warrant, will revise assumptions and the related reserve estimates. Revisions are recorded in the period they are determined.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets are classified as non-qualified separate account assets and reported in Other investments and the offsetting liabilities are reported in Future policy benefits in the Consolidated balance sheets. Changes in the fair value of separate account assets that do not qualify for separate account reporting under GAAP are reported in Other income (expense) and the offsetting movements in the liabilities are included in Policy benefits in the Consolidated statements of operations.

Effective on January 1, 2023, we adopted new U.S. GAAP accounting guidance for long-duration contracts that affects the accounting for future policy benefits. Refer to the Note 1 t) for additional information.

k) Assumed reinsurance programs involving minimum benefit guarantees under variable annuity contracts

Chubb reinsures various death and living benefit guarantees associated with variable annuities issued primarily in the United States. We generally receive a monthly premium during the accumulation phase of the covered annuities (in-force) based on a percentage of either the underlying accumulated account values or the underlying accumulated guaranteed values. Depending on an annuitant's age, the accumulation phase can last many years. To limit our exposure under these programs, all reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible.

The guarantees which are payable on death, referred to as guaranteed minimum death benefits (GMDB), principally cover shortfalls between accumulated account value at the time of an annuitant's death and either i) an annuitant's total deposits; ii) an annuitant's total deposits plus a minimum annual return; or iii) the highest accumulated account value attained at any policy anniversary date. In addition, a death benefit may be based on a formula specified in the variable annuity contract that uses a percentage of the growth of the underlying contract value. Liabilities for GMDBs are based on cumulative assessments or premiums to date multiplied by a benefit ratio that is determined by estimating the present value of benefit payments and related adjustment expenses divided by the present value of cumulative assessment or expected premiums during the contract period.

Under reinsurance programs covering GLBs, we assume the risk of guaranteed minimum income benefits (GMIB) associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. Our GLB reinsurance products meet the definition of a derivative for accounting purposes and are carried at fair value with changes in fair value recognized in Realized gains (losses) in the Consolidated statements of operations. Refer to Note 10 a) for additional information.

Effective on January 1, 2023, we adopted new accounting guidance issued by the FASB for long-duration contracts that affects the accounting for GMDB and GLB contracts. Refer to the Note 1 t) for additional information.

l) Deposit assets and liabilities

Deposit assets arise from ceded reinsurance contracts purchased that do not transfer significant underwriting or timing risk. Deposit liabilities include reinsurance deposit liabilities and contract holder deposit funds. The reinsurance deposit liabilities arise from contracts sold for which there is not a significant transfer of risk. Contract holder deposit funds represent a liability for investment contracts sold that do not meet the definition of an insurance contract, and certain of these contracts are sold with a guaranteed rate of return. Under deposit accounting, consideration received or paid is recorded as a deposit asset or liability in the balance sheet as opposed to recording premiums and losses in the statements of operations.

Interest income on deposit assets, representing the consideration received or to be received in excess of cash payments related to the deposit contract, is earned based on an effective yield calculation. The calculation of the effective yield is based on the amount and timing of actual cash flows at the balance sheet date and the estimated amount and timing of future cash flows. The effective yield is recalculated periodically to reflect revised estimates of cash flows. When a change in the actual or estimated cash flows occurs, the resulting change to the carrying amount of the deposit asset is reported as income or expense. Deposit assets of $96 million and $101 million at December 31, 2022 and 2021, respectively, are reflected in Other assets in the Consolidated balance sheets and the accretion of deposit assets related to interest pursuant to the effective yield calculation is reflected in Net investment income in the Consolidated statements of operations.

Deposit liabilities include reinsurance deposit liabilities of $70 million and $74 million at December 31, 2022 and 2021, respectively and contract holder deposit funds of $2.5 billion and $2.2 billion at December 31, 2022 and 2021, respectively. Deposit liabilities are reflected in Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets. At contract inception, the deposit liability equals net cash received. An accretion rate is established based on actuarial estimates

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Chubb Limited and Subsidiaries

whereby the deposit liability is increased to the estimated amount payable over the contract term. The deposit accretion rate is the rate of return required to fund expected future payment obligations. We periodically reassess the estimated ultimate liability and related expected rate of return. Changes to the deposit liability are generally reflected through Interest expense to reflect the cumulative effect of the period the contract has been in force, and by an adjustment to the future accretion rate of the liability over the remaining estimated contract term.

The liability for contract holder deposit funds equals accumulated policy account values, which consist of the deposit payments plus credited interest less withdrawals and amounts assessed through the end of the period.

m) Property and Equipment

Property and equipment used in operations are capitalized and carried at cost less accumulated depreciation and are reported within Other assets in the Consolidated balance sheets. At December 31, 2022, property and equipment totaled $2.4 billion, consisting principally of capitalized software costs of $1.6 billion incurred to develop or obtain computer software for internal use and company-owned facilities of $253 million. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. For capitalized software, the estimated useful life is generally three to five years, but can be as long as 15 years and for company-owned facilities the estimated useful life is 40 years. At December 31, 2021, property and equipment totaled $2.0 billion.

n) Foreign currency remeasurement and translation

The functional currency for each of our foreign operations is generally the currency of the local operating environment. Transactions in currencies other than a foreign operation's functional currency are remeasured into the functional currency, and the resulting foreign exchange gains and losses are reflected in Net realized gains (losses) in the Consolidated statements of operations. Functional currency assets and liabilities are translated into the reporting currency, U.S. dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of AOCI in Shareholders' equity. Functional statement of operations amounts expressed in functional currencies are translated using average exchange rates.

o) Administrative expenses

Administrative expenses generally include all operating costs other than policy acquisition costs. The North America Commercial P&C Insurance segment manages and uses an in-house third-party claims administrator, ESIS Inc. (ESIS). ESIS performs claims management and risk control services for domestic and international organizations that self-insure P&C exposures as well as internal P&C exposures. The net operating income of ESIS is included within Administrative expenses in the Consolidated statements of operations and were $12 million, $25 million, and $18 million for the years ended December 31, 2022, 2021, and 2020, respectively.

p) Income taxes

Income taxes have been recorded related to those operations subject to income tax. Deferred tax assets and liabilities result from temporary differences between the amounts recorded in the Consolidated Financial Statements and the tax basis of our assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax law or rates is recognized in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to these deferred tax assets will not be realized. The valuation allowance assessment considers tax planning strategies, where appropriate.

We recognize uncertain tax positions that are determined to be more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that has a greater than 50 percent likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

q) Earnings per share

Basic earnings per share is calculated using the weighted-average shares outstanding, including participating securities with non-forfeitable rights to dividends such as unvested restricted stock. All potentially dilutive securities, including stock options are excluded from the basic earnings per share calculation. In calculating diluted earnings per share, the weighted-average shares outstanding is increased to include all potentially dilutive securities. Basic and diluted earnings per share are calculated by dividing net income by the applicable weighted-average number of shares outstanding during the year.

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Chubb Limited and Subsidiaries

r) Share-based compensation

Chubb measures and records compensation cost for all share-based payment awards at grant-date fair value. Compensation costs are recognized for vesting of share-based payment awards with only service conditions on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award were, in substance, multiple awards. For retirement-eligible participants, compensation costs for certain share-based payment awards are recognized immediately at the date of grant. Refer to Note 12 for additional information.

s) Cigna integration expenses

Direct costs related to the acquisition of Cigna's business in Asia were expensed as incurred. Cigna integration expenses were $48 million for the year ended December 31, 2022 and include all internal and external costs directly related to the integration activities of the acquisition of Cigna's business in Asia. These expenses principally consisted of third-party consulting fees, employee-related retention costs, and other professional and legal fees related to the acquisition.

t) New accounting pronouncements

Accounting guidance adopted in 2023

Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB issued guidance to improve the recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments in this update require updating of assumptions at least annually, updating to then-current discount rates quarterly using a standardized discount rate for non-participating traditional and limited pay insurance contract liabilities, a requirement to use the fair value measurement model for market risk benefits, simplified amortization of deferred acquisition costs and VOBA, and enhanced disclosures. We adopted the standard effective January 1, 2023, under the modified retrospective method.

The most significant impact of the standard relates to our accounting for future policy benefits. Cash flow assumptions used to measure the liability for certain future policy benefits are to be reviewed and, if necessary, updated for both changes in future assumptions and actual experience at least annually. Additionally, the discount rate assumption used to measure the liability for certain future policy benefits is required to be based on an upper-medium grade fixed income instrument yield, which will be updated each quarter with the impact recorded through Other Comprehensive Income. Further, the amortization of deferred acquisition costs and VOBA will be required to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. We previously amortized deferred acquisition costs and VOBA using models linked to revenue or profit of the related insurance contracts.

Upon adoption on January 1, 2023, we will record a cumulative effect adjustment and decrease January 1, 2021 beginning Shareholders' equity by approximately $1.8 billion after-tax. However, adoption of this guidance is expected to have an immaterial impact to Shareholders' equity at December 31, 2022.

2. Acquisitions

Cigna’s Accident and Health (A&H) and Life Insurance Business in Asia-Pacific Markets

On July 1, 2022, we completed the acquisition of the life and non-life insurance companies that house the personal accident, supplemental health, and life insurance business of Cigna in several Asian markets. Chubb paid approximately $5.4 billion in cash for the operations, which include Cigna's accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia, collectively referred to as Cigna's business in Asia. This complementary strategic acquisition expands our presence and advances our long-term growth opportunity in Asia. Effective July 1, 2022, the results of operations of this acquired business are reported primarily in our Life Insurance segment and, to a lesser extent, our Overseas General Insurance segment.

The consolidated financial statements include the results of Cigna's business in Asia from July 1, 2022. The acquisition of Cigna's business in Asia generated $1,250 million of goodwill, attributable to expected growth and profitability, and $309 million of other intangible assets. None of the goodwill is expected to be deductible for income tax purposes. Additionally, the acquisition of Cigna's business in Asia generated $3,503 million of value of business acquired (VOBA). Refer to Note 6 for more information. Chubb financed the transaction through a combination of available cash and $2.0 billion in repurchase agreements that expired at the end of 2022.

The following table summarizes Chubb's best estimate of fair value of the assets acquired and liabilities assumed at July 1, 2022. The fair value of assets and liabilities, including intangible assets and tax-related items (classified below in Other assets and Other liabilities), are preliminary and may change with offsetting adjustments to goodwill. Chubb may make further

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Chubb Limited and Subsidiaries

adjustments to its purchase price allocation through the end of the permissible one-year measurement period. Chubb does not expect changes, if any, to materially affect its financial position, results of operations, or cash flows.

Preliminary estimate of assets acquired and liabilities assumed from Cigna's business in Asia			July 1
(in millions of U.S. dollars)			2022
Assets
Investments and Cash			$	5,275
Accrued investment income			33
Insurance and reinsurance balances receivable			52
Reinsurance recoverable on losses and loss expenses			3
Reinsurance recoverable on future policy benefits			82
Value of business acquired			3,503
Goodwill and intangible assets			1,559
Other assets			649
Total assets			$	11,156
Liabilities
Unpaid losses and loss expenses			$	12
Unearned premiums			59
Future policy benefits			3,817
Insurance and reinsurance balances payable			115
Accounts payable, accrued expenses, and other liabilities			924
Deferred tax liabilities			870
Total liabilities			$	5,797
Net acquired assets, including goodwill			5,359
Total			$	11,156

Direct costs related to the acquisition were expensed as incurred. Cigna integration expenses were $48 million for the year ended December 31, 2022, which include one-time costs that are directly attributable to third-party consulting fees, employee-related retention costs, and other professional and legal fees related to the acquisition.

The following table summarizes the results of the acquired Cigna's A&H and Life business operations since the acquisition date that have been included within our Consolidated statements of operations.

			July 1, 2022 to
(in millions of U.S. dollars)			December 31, 2022
Total revenues			$	1,507
Net income			$	148

The preliminary purchase price allocation to intangible assets recorded in connection with the Cigna acquisition and their related useful lives at July 1, 2022, are as follows:

(in millions of U.S. dollars)			Amount						Weighted-average useful life
Definite life
Agency distribution relationships and renewal rights			$	230					22 years
Unearned premium reserves (UPR) intangible asset			9						1 year
Indefinite life
Trademarks			70						Indefinite
Total identified intangible assets			$	309

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of Cigna's business in Asia that occurred on July 1, 2022, had instead occurred on January 1, 2021, for each of the respective periods. The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition been consummated on January 1, 2021, nor is it necessarily indicative of future operating results. Significant assumptions used to determine pro forma operating results include amortization of VOBA and other intangible assets and recognition of interest expense associated with the repurchase agreement transactions used to effect the acquisition.

Pro forma:									For the Year Ended December 31
(in millions of U.S. dollars, except per share data)															2022						2021
Net premiums earned															$	41,913					$	39,495
Total revenues															$	44,673					$	44,166
Net income															$	5,503					$	8,921

Huatai Group

Chubb maintains a direct investment in Huatai Insurance Group Co., Ltd. (Huatai Group). Huatai Group is the parent company of, and owns 100 percent of, Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), 80 percent of Huatai Life Insurance Co., Ltd. (Huatai Life), and 82 percent of Huatai Asset Management Co., Ltd. (collectively, Huatai). Huatai Group's insurance operations have more than 700 branches and approximately 19 million customers in China.

As of December 31, 2022, Chubb's aggregate ownership interest in Huatai Group was 47.3 percent. Chubb applies the equity method of accounting to its investment in Huatai Group by recording its share of net income or loss in Other (income) expense in the Consolidated statements of operations.

During 2021, Chubb entered into agreements with several counterparties to purchase incremental ownership interests in Huatai Group totaling 31.8 percent for approximately $2 billion. In connection with these agreements, Chubb paid net deposits of $1.1 billion in 2021 and $184 million in 2022. Chubb entered into an agreement to acquire a 7.05 percent ownership interest in Huatai Group for approximately $0.5 billion, which was paid as a deposit in 2020. Completion of all such transactions would result in approximately 86.1 percent ownership in Huatai Group.

In 2022, we received regulatory approval to increase our ownership in Huatai Group to 83.2 percent and, in January 2023, we completed transactions that increased our ownership interest to approximately 64.2 percent. The acquisition of the remaining additional 22.0 percent in incremental ownership interests is pending completion of certain closing conditions, of which approximately 3.0 percent also requires regulatory approval.

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Chubb Limited and Subsidiaries

3. Investments

a) Fixed maturities

December 31, 2022			Amortized Cost						Valuation Allowance						Gross Unrealized Appreciation						Gross Unrealized Depreciation						Fair Value
(in millions of U.S. dollars)
Available for sale
U.S. Treasury / Agency			$	2,792					$	—					$	5					$	(171)					$	2,626
Non-U.S.			28,064						(59)						108						(2,205)						25,908
Corporate and asset-backed securities			40,547						(107)						49						(3,534)						36,955
Mortgage-backed securities			17,871						(3)						4						(2,021)						15,851
Municipal			4,081						—						8						(209)						3,880
			$	93,355					$	(169)					$	174					$	(8,140)					$	85,220

			Amortized Cost						Valuation Allowance						Net Carrying Value						Gross Unrealized Appreciation						Gross Unrealized Depreciation						Fair Value
Held to maturity
U.S. Treasury / Agency			$	1,417					$	—					$	1,417					$	1					$	(48)					$	1,370
Non-U.S.			1,140						(4)						1,136						—						(82)						1,054
Corporate and asset-backed securities			1,733						(28)						1,705						1						(126)						1,580
Mortgage-backed securities			1,456						(1)						1,455						—						(104)						1,351
Municipal			3,136						(1)						3,135						1						(52)						3,084
			$	8,882					$	(34)					$	8,848					$	3					$	(412)					$	8,439

December 31, 2021			Amortized Cost						Valuation Allowance						Gross Unrealized Appreciation						Gross Unrealized Depreciation						Fair Value
(in millions of U.S. dollars)
Available for sale
U.S. Treasury / Agency			$	2,111					$	—					$	109					$	(6)					$	2,214
Non-U.S.			25,156						(8)						953						(272)						25,829
Corporate and asset-backed securities			37,844						(6)						1,410						(185)						39,063
Mortgage-backed securities			20,080						—						532						(123)						20,489
Municipal			5,302						—						216						(5)						5,513
			$	90,493					$	(14)					$	3,220					$	(591)					$	93,108

			Amortized Cost						Valuation Allowance						Net Carrying Value						Gross Unrealized Appreciation						Gross Unrealized Depreciation						Fair Value
Held to maturity
U.S. Treasury / Agency			$	1,213					$	—					$	1,213					$	34					$	(3)					$	1,244
Non-U.S.			1,201						(5)						1,196						66						—						1,262
Corporate and asset-backed securities			2,032						(28)						2,004						197						—						2,201
Mortgage-backed securities			1,731						(1)						1,730						74						(1)						1,803
Municipal			3,976						(1)						3,975						162						—						4,137
			$	10,153					$	(35)					$	10,118					$	533					$	(4)					$	10,647

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Chubb Limited and Subsidiaries

The following table presents the amortized cost of our HTM securities according to S&P rating:

															December 31
									2022												2021
(in millions of U.S. dollars, except for percentages)			Amortized cost						% of Total						Amortized cost						% of Total
AAA			$	1,612					18		%				$	2,089					21		%
AA			5,023						57		%				5,303						52		%
A			1,634						18		%				1,964						19		%
BBB			593						7		%				773						8		%
BB			20						—		%				23						—		%
Other			—						—		%				1						—		%
Total			$	8,882					100		%				$	10,153					100		%

The following table presents fixed maturities by contractual maturity:

															December 31
									2022												2021
(in millions of U.S. dollars)			Net Carrying Value						Fair Value						Net Carrying Value						Fair Value
Available for sale
Due in 1 year or less			$	2,962					$	2,962					$	4,498					$	4,498
Due after 1 year through 5 years			24,791						24,791						25,542						25,542
Due after 5 years through 10 years			26,679						26,679						28,207						28,207
Due after 10 years			14,937						14,937						14,372						14,372
			69,369						69,369						72,619						72,619
Mortgage-backed securities			15,851						15,851						20,489						20,489
			$	85,220					$	85,220					$	93,108					$	93,108
Held to maturity
Due in 1 year or less			$	1,015					$	1,003					$	888					$	894
Due after 1 year through 5 years			3,658						3,531						3,744						3,846
Due after 5 years through 10 years			1,460						1,423						2,242						2,349
Due after 10 years			1,260						1,131						1,514						1,755
			7,393						7,088						8,388						8,844
Mortgage-backed securities			1,455						1,351						1,730						1,803
			$	8,848					$	8,439					$	10,118					$	10,647

Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.

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Chubb Limited and Subsidiaries

b) Gross unrealized loss

Fixed maturities in an unrealized loss position at December 31, 2022 and 2021 comprised both investment grade and below investment grade securities for which fair value declined, principally due to rising interest rates since the date of purchase.

The following tables present, for AFS fixed maturities in an unrealized loss position (including securities on loan) that are not deemed to have expected credit losses, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:

			0 – 12 Months												Over 12 Months												Total
December 31, 2022			Fair Value						Gross Unrealized Loss						Fair Value						Gross Unrealized Loss						Fair Value						Gross Unrealized Loss
(in millions of U.S. dollars)
U.S. Treasury / Agency			$	2,152					$	(125)					$	386					$	(46)					$	2,538					$	(171)
Non-U.S.			15,538						(1,012)						5,490						(704)						21,028						(1,716)
Corporate and asset-backed securities			25,687						(1,793)						4,190						(552)						29,877						(2,345)
Mortgage-backed securities			10,561						(1,033)						4,770						(941)						15,331						(1,974)
Municipal			3,251						(152)						155						(48)						3,406						(200)
Total AFS fixed maturities			$	57,189					$	(4,115)					$	14,991					$	(2,291)					$	72,180					$	(6,406)

			0 – 12 Months												Over 12 Months												Total
December 31, 2021			Fair Value						Gross Unrealized Loss						Fair Value						Gross Unrealized Loss						Fair Value						Gross Unrealized Loss
(in millions of U.S. dollars)
U.S. Treasury / Agency			$	363					$	(3)					$	70					$	(3)					$	433					$	(6)
Non-U.S.			6,917						(196)						1,093						(62)						8,010						(258)
Corporate and asset-backed securities			9,449						(145)						806						(32)						10,255						(177)
Mortgage-backed securities			8,086						(116)						190						(7)						8,276						(123)
Municipal			226						(5)						—						—						226						(5)
Total AFS fixed maturities			$	25,041					$	(465)					$	2,159					$	(104)					$	27,200					$	(569)

The following table presents a roll-forward of valuation allowance for expected credit losses on fixed maturities:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021
Available for sale
Valuation allowance for expected credit losses - beginning of period			$	14					$	20
Provision for expected credit loss			237						14
Recovery of expected credit loss			(82)						(20)
Valuation allowance for expected credit losses - end of period			$	169					$	14
Held to maturity
Valuation allowance for expected credit losses - beginning of period			$	35					$	44
Provision for expected credit loss			2						1
Recovery of expected credit loss			(3)						(10)
Valuation allowance for expected credit losses - end of period			$	34					$	35

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Chubb Limited and Subsidiaries

c) Net realized gains (losses)

The following table presents the components of net realized gains (losses) and the change in net unrealized appreciation (depreciation) of investments:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Fixed maturities:
Gross realized gains			$	619					$	142					$	244
Gross realized losses			(1,379)						(123)						(366)
Net (provision for) recovery of expected credit losses			(154)						14						11
Impairment (1)			(135)						(30)						(170)
Total fixed maturities			(1,049)						3						(281)
Equity securities			(230)						662						586
Other investments			(31)						111						(32)
Foreign exchange			393						348						(483)
Investment and embedded derivative instruments			(43)						(72)						81
Fair value adjustments on insurance derivative			(63)						316						(202)
S&P futures			187						(202)						(108)
Other derivative instruments			(11)						(8)						1
Other			(118)						(6)						(60)
Net realized gains (losses) (pre-tax)			$	(965)					$	1,152					$	(498)
Change in net unrealized appreciation (depreciation) on investments (pre-tax):
Fixed maturities available for sale			$	(10,583)					$	(2,901)					$	2,628
Fixed maturities held to maturity			(15)						(18)						(24)
Other			20						(19)						(12)
Income tax (expense) benefit			1,043						521						(462)
Change in net unrealized appreciation (depreciation) on investments (after-tax)			$	(9,535)					$	(2,417)					$	2,130

(1)Relates to certain securities we intended to sell and securities written to market entering default.

Realized gains and losses from Equity securities and Other investments from the table above include sales of securities and unrealized gains and losses from fair value changes as follows:

																																							Year Ended December 31
			2022																		2021																		2020
(in millions of U.S. dollars)			Equity Securities						Other Investments						Total						Equity Securities						Other Investments						Total						Equity Securities						Other Investments						Total
Net gains (losses) recognized during the period			$	(230)					$	(31)					$	(261)					$	662					$	111					$	773					$	586					$	(32)					$	554
Less: Net gains recognized from sales of securities			409						—						409						157						—						157						455						—						455
Unrealized gains (losses) recognized for securities still held at reporting date			$	(639)					$	(31)					$	(670)					$	505					$	111					$	616					$	131					$	(32)					$	99

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Chubb Limited and Subsidiaries

d) Other investments

			December 31
(in millions of U.S. dollars)			2022						2021
Alternative investments:
Partially-owned investment companies			$	10,527					$	9,210
Limited partnerships			1,455						631
Investment funds			373						267
Alternative investments			12,355						10,108
Life insurance policies			399						481
Policy loans			343						243
Non-qualified separate account assets (1)			223						278
Other			376						59
Total			$	13,696					$	11,169

(1)Non-qualified separate account assets are comprised of mutual funds, supported by assets that do not qualify for separate account reporting under GAAP.

Alternative investments

Alternative investments include partially-owned investment companies, investment funds, and limited partnerships measured at fair value using net asset value (NAV) as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments of alternative investments:

																					December 31
									2022												2021
(in millions of U.S. dollars)			Expected Liquidation Period of Underlying Assets						Fair Value						Maximum Future Funding Commitments						Fair Value						Maximum Future Funding Commitments
Financial			2 to 10 Years						$	1,074					$	505					$	1,096					$	267
Real assets			2 to 13 Years						2,166						681						1,193						766
Distressed			2 to 8 Years						1,048						755						753						641
Private credit			3 to 8 Years						215						429						84						279
Traditional			2 to 14 Years						7,424						5,025						6,647						5,200
Vintage			1 to 2 Years						55						—						68						—
Investment funds			Not Applicable						373						—						267						—
									$	12,355					$	7,395					$	10,108					$	7,153

Included in all categories in the above table, except for Investment funds, are investments for which Chubb will never have the contractual option to redeem but receives distributions based on the liquidation of the underlying assets. Further, for all categories except for Investment funds, Chubb does not have the ability to sell or transfer the investments without the consent from the general partner of individual funds.

Investment Category						Consists of investments in private equity funds:
Financial						targeting financial services companies, such as financial institutions and insurance services worldwide
Real assets						targeting investments related to hard physical assets, such as real estate, infrastructure and natural resources
Distressed						targeting distressed corporate debt/credit and equity opportunities in the U.S.
Private credit						targeting privately originated corporate debt investments, including senior secured loans and subordinated bonds
Traditional						employing traditional private equity investment strategies such as buyout and growth equity globally
Vintage						funds where the initial fund term has expired

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Chubb Limited and Subsidiaries

Included in partially-owned investment companies and limited partnerships are 168 individual limited partnerships covering a broad range of investment strategies including large cap buyouts, specialist buyouts, growth capital, distressed, mezzanine, real estate, and co-investments. The underlying portfolio consists of various public and private debt and equity securities of publicly traded and privately held companies and real estate assets. The underlying investments across various partnerships, geographies, industries, asset types, and investment strategies provide risk diversification within the limited partnership portfolio and the overall investment portfolio.

Investment funds employ various investment strategies such as long/short equity and arbitrage/distressed. Included in this category are investments for which Chubb has the option to redeem at agreed upon value as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investment fund investments may be redeemed monthly, quarterly, semi-annually, or annually. If Chubb wishes to redeem an investment fund investment, it must first determine if the investment fund is still in a lock-up period (a time when Chubb cannot redeem its investment so that the investment fund manager has time to build the portfolio). If the investment fund is no longer in its lock-up period, Chubb must then notify the investment fund manager of its intention to redeem by the notification date prescribed by the subscription agreement. Subsequent to notification, the investment fund can redeem Chubb’s investment within several months of the notification. Notice periods for redemption of the investment funds are up to 270 days. Chubb can redeem its investment funds without consent from the investment fund managers.

e) Investments in partially-owned insurance companies

The following table presents Investments in partially-owned insurance companies:

			December 31, 2022																		December 31, 2021
(in millions of U.S. dollars, except for percentages)			Carrying Value						Goodwill						Direct Ownership Percentage						Carrying Value						Goodwill						Direct Ownership Percentage						Domicile
Huatai Group			$	2,490					$	1,247					47		%				$	2,698					$	1,355					47		%				China
Huatai Life Insurance Company			215						65						20		%				253						71						20		%				China
Freisenbruch-Meyer			11						3						40		%				10						3						40		%				Bermuda
Chubb Arabia Cooperative Insurance Company			24						—						30		%				23						—						30		%				Saudi Arabia
Russian Reinsurance Company			—						—						23		%				4						—						23		%				Russia
ABR Reinsurance Ltd.			137						—						19		%				142						—						17		%				Bermuda
Total			$	2,877					$	1,315											$	3,130					$	1,429

Chubb’s aggregate direct and indirect ownership in Huatai Life is 57.7 percent, comprising 20 percent direct and 37.7 percent indirect ownership interest at December 31, 2022. The table above excludes the 16.9 percent of additional ownership in Huatai Group that was acquired in January 2023 and 22.0 percent that is pending completion of certain closing conditions. Refer to Note 2 for additional information.

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Chubb Limited and Subsidiaries

f) Net investment income

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Fixed maturities (1)			$	3,594					$	3,300					$	3,321
Short-term investments			81						35						48
Other interest income			42						11						19
Equity securities			99						150						81
Other investments			104						147						82
Gross investment income (1)			3,920						3,643						3,551
Investment expenses			(178)						(187)						(176)
Net investment income (1)			$	3,742					$	3,456					$	3,375
(1) Includes amortization expense related to fair value adjustment of acquired invested assets			$	(41)					$	(84)					$	(116)

g) Restricted assets

Chubb is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. These requirements are generally promulgated in the statutory regulations of the individual jurisdictions. The assets on deposit are available to settle insurance and reinsurance liabilities. Chubb is also required to restrict assets pledged under repurchase agreements, which represent Chubb's agreement to sell securities and repurchase them at a future date for a predetermined price. We use trust funds in certain large reinsurance transactions where the trust funds are set up for the benefit of the ceding companies and generally take the place of letter of credit (LOC) requirements. We have investments in segregated portfolios primarily to provide collateral or guarantees for LOC and derivative transactions. Included in restricted assets are investments, primarily fixed maturities, totaling $15,721 million and $17,092 million, and cash of $115 million and $152 million, at December 31, 2022 and 2021, respectively.

The following table presents the components of restricted assets:

									December 31
(in millions of U.S. dollars)			2022						2021
Trust funds			$	8,120					$	9,915
Deposits with U.S. regulatory authorities			2,345						2,402
Deposits with non-U.S. regulatory authorities			2,959						2,873
Assets pledged under repurchase agreements			1,527						1,420
Other pledged assets			885						634
Total			$	15,836					$	17,244

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Chubb Limited and Subsidiaries

4. Fair value measurements

a) Fair value hierarchy

Fair value of financial assets and financial liabilities is estimated based on the framework established in the fair value accounting guidance. The guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.

The three levels of the hierarchy are as follows:

• Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;

• Level 2 – Includes, among other items, inputs other than quoted prices that are observable for the asset or liability such as

interest rates and yield curves, quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets and liabilities in markets that are not active; and

• Level 3 – Inputs that are unobservable and reflect management’s judgments about assumptions that market participants

would use in pricing an asset or liability.

We categorize financial instruments within the valuation hierarchy at the balance sheet date based upon the lowest level of inputs that are significant to the fair value measurement.

We use pricing services to obtain fair value measurements for the majority of our investment securities. Based on management’s understanding of the methodologies used, these pricing services only produce an estimate of fair value if there is observable market information that would allow them to make a fair value estimate. Based on our understanding of the market inputs used by the pricing services, all applicable investments have been valued in accordance with GAAP. We do not adjust prices obtained from pricing services. The following is a description of the valuation techniques and inputs used to determine fair values for financial instruments carried at fair value, as well as the general classification of such financial instruments pursuant to the valuation hierarchy.

Fixed maturities

We use pricing services to estimate fair value measurements for the majority of our fixed maturities. The pricing services use market quotations for fixed maturities that have quoted prices in active markets; such securities are classified within Level 1. For fixed maturities other than U.S. Treasury securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications or pricing models, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Additional valuation factors that can be taken into account are nominal spreads, dollar basis, and liquidity adjustments. The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements, and sector news. The market inputs used in the pricing evaluation, listed in the approximate order of priority include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each input is dependent on the asset class and the market conditions. Given the asset class, the priority of the use of inputs may change, or some market inputs may not be relevant. Additionally, fixed maturities valuation is more subjective when markets are less liquid due to the lack of market based inputs (i.e., stale pricing) and may require the use of models to be priced. The lack of market based inputs may increase the potential that an investment's estimated fair value is not reflective of the price at which an actual transaction would occur. The overwhelming majority of fixed maturities are classified within Level 2 because the most significant inputs used in the pricing techniques are observable. For a small number of fixed maturities, we obtain a single broker quote (typically from a market maker). Due to the disclaimers on the quotes that indicate that the price is indicative only, we include these fair value estimates in Level 3.

Equity securities

Equity securities with active markets are classified within Level 1 as fair values are based on quoted market prices. For equity securities in markets which are less active, fair values are based on market valuations and are classified within Level 2. Equity securities for which pricing is unobservable are classified within Level 3.

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Chubb Limited and Subsidiaries

Short-term investments

Short-term investments, which comprise securities due to mature within one year of the date of purchase that are traded in active markets, are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity, and as such, their cost approximates fair value. Short-term investments for which pricing is unobservable are classified within Level 3.

Other investments

Fair values for the majority of Other investments including investments in partially-owned investment companies, investment funds, and limited partnerships are based on their respective NAV and are excluded from the fair value hierarchy table below. Certain of our long-duration contracts are supported by assets that do not qualify for separate account reporting under GAAP. These assets comprise mutual funds, classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Other investments also include equity securities, classified within Level 1 and fixed maturities, classified within Level 2, held in rabbi trusts maintained by Chubb for deferred compensation plans and supplemental retirement plans and are classified within the valuation hierarchy on the same basis as other equity securities and fixed maturities.

Securities lending collateral

The underlying assets included in Securities lending collateral in the Consolidated balance sheets are fixed maturities which are classified in the valuation hierarchy on the same basis as other fixed maturities. Excluded from the valuation hierarchy is the corresponding liability related to Chubb’s obligation to return the collateral plus interest as it is reported at contract value and not fair value in the Consolidated balance sheets.

Investment derivatives

Actively traded investment derivative instruments, including futures, options, and forward contracts are classified within Level 1 as fair values are based on quoted market prices. The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Derivatives designated as hedging instruments

Certain of our derivatives are cross-currency swaps designated as fair value and net investment hedging instruments. The fair value of cross-currency swaps and interest rate swaps is based on market valuations and is classified within Level 2. Investment derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Other derivative instruments

We maintain positions in exchange-traded equity futures contracts designed to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in future policy benefit reserves for our guaranteed minimum death benefits (GMDB) and an increase in the fair value liability for our guaranteed living benefits (GLB) reinsurance business. Our positions in exchange-traded equity futures contracts are classified within Level 1. The fair value of the majority of the remaining positions in other derivative instruments is based on significant observable inputs including equity security and interest rate indices. Accordingly, these are classified within Level 2. Other derivative instruments based on unobservable inputs are classified within Level 3. Other derivative instruments are recorded in either Other assets or Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets.

Separate account assets

Separate account assets represent segregated funds where investment risks are borne by the customers, except to the extent of certain guarantees made by Chubb. Separate account assets comprise mutual funds classified within Level 1 in the valuation hierarchy on the same basis as other equity securities traded in active markets. Separate account assets also include fixed maturities classified within Level 2 because the most significant inputs used in the pricing techniques are observable. Excluded from the valuation hierarchy are the corresponding liabilities as they are reported at contract value and not fair value in the Consolidated balance sheets. Separate account assets are recorded in Other assets in the Consolidated balance sheets.

Guaranteed living benefits

The GLB arises from life reinsurance programs covering living benefit guarantees whereby we assume the risk of guaranteed minimum income benefits (GMIB) associated with variable annuity contracts. GLBs are recorded in Accounts payable, accrued expenses, and other liabilities in the Consolidated balance sheets. For GLB reinsurance, Chubb estimates fair value using an internal valuation model which includes current market information and estimates of policyholder behavior. All of the treaties

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Chubb Limited and Subsidiaries

contain claim limits, which are factored into the valuation model. The fair value depends on a number of factors, including interest rates, equity markets, credit risk, current account value, market volatility, expected annuitization rates and other policyholder behavior, and changes in policyholder mortality. Because of the significant use of unobservable inputs including policyholder behavior, GLB reinsurance is classified within Level 3.

Financial instruments measured at fair value on a recurring basis, by valuation hierarchy

December 31, 2022			Level 1						Level 2						Level 3						Total
(in millions of U.S. dollars)
Assets:
Fixed maturities available for sale
U.S. Treasury / Agency			$	2,100					$	526					$	—					$	2,626
Non-U.S.			—						25,344						564						25,908
Corporate and asset-backed securities			—						34,506						2,449						36,955
Mortgage-backed securities			—						15,840						11						15,851
Municipal			—						3,880						—						3,880
			2,100						80,096						3,024						85,220
Equity securities			737						—						90						827
Short-term investments			3,108						1,849						3						4,960
Other investments (1)			552						399						—						951
Securities lending collateral			—						1,523						—						1,523
Investment derivatives			82						—						—						82
Derivatives designated as hedging instruments			—						17						—						17
Other derivative instruments			33						—						—						33
Separate account assets			5,101						89						—						5,190
Total assets measured at fair value (1)			$	11,713					$	83,973					$	3,117					$	98,803
Liabilities:
Investment derivatives			$	139					$	—					$	—					$	139
Derivatives designated as hedging instruments			—						53						—						53
GLB (2)			—						—						736						736
Total liabilities measured at fair value			$	139					$	53					$	736					$	928

(1)Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $12,355 million, policy loans of $343 million and other investments of $47 million at December 31, 2022 measured using NAV as a practical expedient.

(2)Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

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Chubb Limited and Subsidiaries

December 31, 2021			Level 1						Level 2						Level 3						Total
(in millions of U.S. dollars)
Assets:
Fixed maturities available for sale
U.S. Treasury / Agency			$	1,680					$	534					$	—					$	2,214
Non-U.S.			—						25,196						633						25,829
Corporate and asset-backed securities			—						37,014						2,049						39,063
Mortgage-backed securities			—						20,463						26						20,489
Municipal			—						5,513						—						5,513
			1,680						88,720						2,708						93,108
Equity securities			4,705						—						77						4,782
Short-term investments			1,744						1,395						7						3,146
Other investments (1)			286						481						—						767
Securities lending collateral			—						1,831						—						1,831
Investment derivatives			58						—						—						58
Separate account assets			5,461						99						—						5,560
Total assets measured at fair value (1)			$	13,934					$	92,526					$	2,792					$	109,252
Liabilities:
Investment derivatives			$	166					$	—					$	—					$	166
Other derivative instruments			16						—						—						16
GLB (2)			—						—						745						745
Total liabilities measured at fair value			$	182					$	—					$	745					$	927

(1)Excluded from the table above are partially-owned investments, investment funds, and limited partnerships of $10,108 million, policy loans of $243 million and other investments of $51 million at December 31, 2021 measured using NAV as a practical expedient.

(2)Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

Level 3 financial instruments

The following table presents the significant unobservable inputs used in the Level 3 liability valuations. Excluded from the table below are inputs used to determine the fair value of Level 3 assets which are based on single broker quotes and contain no quantitative unobservable inputs developed by management. The majority of our fixed maturities classified as Level 3 used external pricing when markets are less liquid due to the lack of market inputs (i.e., stale pricing, broker quotes).

(in millions of U.S. dollars, except for percentages)			Fair Value at December 31 2022						Valuation Technique						Significant Unobservable Inputs						Ranges									Weighted Average (1)
GLB (1)			$	736					Actuarial model						Lapse rate						3% - 30%									3.6		%
															Annuitization rate						0% - 100%									4.4		%

(1)The weighted average lapse and annuitization rates are determined by weighting each treaty's rates by the GLB contracts fair value.

The most significant policyholder behavior assumptions include lapse rates and the GMIB annuitization rates. A lapse rate is the percentage of in-force policies surrendered in a given calendar year. All else equal, as lapse rates increase, ultimate claim payments will decrease. Assumptions regarding lapse rates and GMIB annuitization rates differ by treaty, but the underlying methodologies to determine rates applied to each treaty are comparable.

The GMIB annuitization rate is the percentage of policies for which the policyholder will elect to annuitize using the guaranteed benefit provided under the GMIB. All else equal, as GMIB annuitization rates increase, ultimate claim payments will increase, subject to treaty claim limits.

The effect of changes in key market factors on assumed lapse and annuitization rates reflect emerging trends using data available from cedants. For treaties with limited experience, rates are established by blending the experience with data received from other ceding companies. The model and related assumptions are regularly re-evaluated by management and enhanced, as appropriate, based upon additional experience obtained related to policyholder behavior and availability of updated information

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such as market conditions, market participant assumptions, and demographics of in-force annuities. In the third quarter of 2022, we completed a review of policyholder behavior related to annuitizations, partial withdrawals, lapses, and mortality for our variable annuity reinsurance business. As a result, we refined our policyholder behavior assumptions (mainly those relating to annuitizations and partial withdrawals). This refinement increased the fair value of GLB liabilities, and resulted in a realized loss of approximately $40 million. During the year ended December 31, 2022, we also made routine model refinements to the internal valuation model which had an insignificant impact on net income.

The following tables present a reconciliation of the beginning and ending balances of financial instruments measured at fair value using significant unobservable inputs (Level 3):

																																				Assets																					Liabilities
						Available-for-Sale Debt Securities																								Equity securities						Short-term investments																					GLB (1)
Year Ended December 31, 2022						Non-U.S.						Corporate and asset-backed securities						Mortgage-backed securities
(in millions of U.S. dollars)
Balance, beginning of year						$	633					$	2,049					$	26											$	77					$	7																				$	745
Transfers into Level 3						23						47						—												1						—																					—
Transfers out of Level 3						(23)						(97)						(9)												—						—																					—
Change in Net Unrealized Gains/Losses in OCI						(53)						(80)						—												—						—																					—
Net Realized Gains/Losses						(6)						(14)						—												15						(2)																					63
Purchases						156						921						4												9						3																					—
Sales						(59)						(85)						—												(12)						—																					—
Settlements						(107)						(292)						(10)												—						(5)																					—
Other						—						—						—												—						—																					(72)
Balance, end of year						$	564					$	2,449					$	11											$	90					$	3																				$	736
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date						$	(2)					$	(9)					$	—											$	14					$	(1)																				$	63
Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet Date						$	(53)					$	(84)					$	—											$	—					$	—																				$	—

(1)Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

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Chubb Limited and Subsidiaries

			Assets																																										Liabilities
			Available-for-Sale Debt Securities																		Equity securities						Short-term investments						Other investments												GLB (1)
Year Ended December 31, 2021			Non-U.S.						Corporate and asset-backed securities						Mortgage-backed securities
(in millions of U.S. dollars)
Balance, beginning of year			$	546					$	1,573					$	60					$	73					$	5					$	10											$	1,089
Transfers into Level 3			24						91						—						—						—						—												—
Transfers out of Level 3			(11)						(76)						(18)						—						—						(10)												—
Change in Net Unrealized Gains/Losses in OCI			(30)						15						—						—						(1)						—												—
Net Realized Gains/Losses			(1)						(2)						—						8						—						—												(316)
Purchases			275						1,154						18						21						9						—												—
Sales			(48)						(99)						(1)						(25)						—						—												—
Settlements			(122)						(607)						(33)						—						(6)						—												—
Other			—						—						—						—						—						—												(28)
Balance, end of year			$	633					$	2,049					$	26					$	77					$	7					$	—											$	745
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date			$	—					$	3					$	—					$	5					$	—					$	—											$	(316)
Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet Date			$	(25)					$	17					$	—					$	—					$	—					$	—											$	—

(1)Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

			Assets																																							Liabilities
			Available-for-Sale Debt Securities																								Short-term investments															GLB (1)
Year Ended December 31, 2020			Non-U.S.						Corporate and asset-backed securities						Mortgage-backed securities						Equity securities									Other investments
(in millions of U.S. dollars)
Balance, beginning of year			$	449					$	1,451					$	60					$	69					$	6					$	10								$	897
Transfers into Level 3			—						134						—						—						—						—									—
Transfers out of Level 3			(16)						(73)						(1)						(3)						—						—									—
Change in Net Unrealized Gains/Losses in OCI			19						(8)						—						—						—						—									—
Net Realized Gains/Losses			(1)						(30)						—						1						(1)						—									202
Purchases			274						708						2						23						14						—									—
Sales			(122)						(186)						—						(17)						(2)						—									—
Settlements			(57)						(423)						(1)						—						(12)						—									—
Other			—						—						—						—						—						—									(10)
Balance, end of year			$	546					$	1,573					$	60					$	73					$	5					$	10								$	1,089
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date			$	—					$	(5)					$	—					$	4					$	—					$	—								$	202
Change in Net Unrealized Gains/Losses included in OCI at the Balance Sheet Date			$	16					$	(6)					$	—					$	—					$	—					$	—								$	—

(1)Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value.

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b) Financial instruments disclosed, but not measured, at fair value

Chubb uses various financial instruments in the normal course of its business. Our insurance contracts are excluded from fair value of financial instruments accounting guidance, and therefore, are not included in the amounts discussed below.

The carrying values of cash, other assets, other liabilities, and other financial instruments not included below approximated their fair values.

Investments in partially-owned insurance companies

Fair values for investments in partially-owned insurance companies are based on Chubb’s share of the net assets based on the financial statements provided by those companies and are excluded from the valuation hierarchy tables below.

Short- and long-term debt, repurchase agreements, and trust preferred securities

Where practical, fair values for short-term debt, long-term debt, repurchase agreements, and trust preferred securities are estimated using discounted cash flow calculations based principally on observable inputs including incremental borrowing rates, which reflect Chubb’s credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

The following tables present fair value, by valuation hierarchy, and carrying value of the financial instruments not measured at fair value:

December 31, 2022			Fair Value																								Net Carrying Value
(in millions of U.S. dollars)			Level 1						Level 2						Level 3						Total
Assets:
Fixed maturities held to maturity
U.S. Treasury / Agency			$	1,299					$	71					$	—					$	1,370					$	1,417
Non-U.S.			—						1,054						—						1,054						1,136
Corporate and asset-backed securities			—						1,580						—						1,580						1,705
Mortgage-backed securities			—						1,351						—						1,351						1,455
Municipal			—						3,084						—						3,084						3,135
Total assets			$	1,299					$	7,140					$	—					$	8,439					$	8,848
Liabilities:
Repurchase agreements			$	—					$	1,419					$	—					$	1,419					$	1,419
Short-term debt			—						473						—						473						475
Long-term debt			—						12,495						—						12,495						14,402
Trust preferred securities			—						383						—						383						308
Total liabilities			$	—					$	14,770					$	—					$	14,770					$	16,604

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Chubb Limited and Subsidiaries

December 31, 2021			Fair Value																								Net Carrying Value
(in millions of U.S. dollars)			Level 1						Level 2						Level 3						Total
Assets:
Fixed maturities held to maturity
U.S. Treasury / Agency			$	1,192					$	52					$	—					$	1,244					$	1,213
Non-U.S.			—						1,262						—						1,262						1,196
Corporate and asset-backed securities			—						2,201						—						2,201						2,004
Mortgage-backed securities			—						1,803						—						1,803						1,730
Municipal			—						4,137						—						4,137						3,975
Total assets			$	1,192					$	9,455					$	—					$	10,647					$	10,118
Liabilities:
Repurchase agreements			$	—					$	1,406					$	—					$	1,406					$	1,406
Short-term debt			—						1,019						—						1,019						999
Long-term debt			—						16,848						—						16,848						15,169
Trust preferred securities			—						460						—						460						308
Total liabilities			$	—					$	19,733					$	—					$	19,733					$	17,882

5. Reinsurance

a) Consolidated reinsurance

Chubb purchases reinsurance to manage various exposures including catastrophe risks. Although reinsurance agreements contractually obligate Chubb's reinsurers to reimburse it for the agreed-upon portion of its gross paid losses, they do not discharge Chubb's primary liability. The amounts for net premiums written and net premiums earned in the Consolidated statements of operations are net of reinsurance. The following table presents direct, assumed, and ceded premiums:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Premiums written
Direct			$	47,511					$	42,811					$	37,749
Assumed			4,502						3,969						3,512
Ceded			(10,258)						(8,912)						(7,441)
Net			$	41,755					$	37,868					$	33,820
Premiums earned
Direct			$	46,154					$	41,138					$	37,037
Assumed			4,430						3,650						3,323
Ceded			(10,195)						(8,433)						(7,243)
Net			$	40,389					$	36,355					$	33,117

Ceded losses and loss expenses incurred were $7.0 billion, $6.1 billion, and $5.0 billion for the years ended December 31, 2022, 2021, and 2020, respectively.

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Chubb Limited and Subsidiaries

b) Reinsurance recoverable on ceded reinsurance

						December 31, 2022												December 31, 2021
(in millions of U.S. dollars)						Net Reinsurance Recoverable (1)						Valuation allowance						Net Reinsurance Recoverable (1)						Valuation allowance
Reinsurance recoverable on unpaid losses and loss expenses						$	17,128					$	289					$	16,184					$	271
Reinsurance recoverable on paid losses and loss expenses						1,773						62						1,182						58
Reinsurance recoverable on losses and loss expenses						$	18,901					$	351					$	17,366					$	329
Reinsurance recoverable on policy benefits						$	303					$	4					$	213					$	4

(1) Net of valuation allowance for uncollectible reinsurance.

The increase in reinsurance recoverable on losses and loss expenses in 2022 was primarily due to higher underlying ceded exposures reflecting premium growth and prior period development in certain lines, partially offset by foreign currency movement.

The following table presents a roll-forward of valuation allowance for uncollectible reinsurance related to Reinsurance recoverable on loss and loss expenses:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021
Valuation allowance for uncollectible reinsurance - beginning of period			$	329					$	314
Provision for uncollectible reinsurance			43						66
Write-offs charged against the valuation allowance			(19)						(50)
Foreign exchange revaluation			(2)						(1)
Valuation allowance for uncollectible reinsurance - end of period			$	351					$	329

The following tables present a listing, at December 31, 2022, of the categories of Chubb's reinsurers:

December 31, 2022			Gross Reinsurance Recoverable on Losses and Loss Expenses						Valuation allowance for Uncollectible Reinsurance						% of Gross Reinsurance Recoverable
(in millions of U.S. dollars, except for percentages)
Categories
Largest reinsurers			$	10,826					$	114					1.1		%
Other reinsurers rated A- or better			4,161						47						1.1		%
Other reinsurers rated lower than A- or not rated			443						70						15.8		%
Pools			425						14						3.3		%
Structured settlements			507						11						2.2		%
Captives			2,455						13						0.5		%
Other			435						82						18.8		%
Total			$	19,252					$	351					1.8		%

Largest Reinsurers
ABR Reinsurance Capital Holdings			HDI Group (Hannover Re)			Partner Re Group			Swiss Re Group
Alleghany Corp			Lloyd's of London			Renaissance Re Holdings Ltd
Berkshire Hathaway Insurance Group			Munich Re Group			Starr International Group

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Chubb Limited and Subsidiaries

Categories of Chubb's reinsurers						Comprises:
Largest reinsurers						• All groups of reinsurers or captives where the gross recoverable exceeds one percent of Chubb's total shareholders' equity.
Other reinsurers rated A- or better						• All reinsurers rated A- or better that were not included in the largest reinsurer category.
Other reinsurers rated lower than A- or not rated						• All reinsurers rated lower than A- or not rated that were not included in the largest reinsurer category.
Pools						• Related to Chubb's voluntary pool participation and Chubb's mandatory pool participation required by law in certain states.
Structured settlements						• Annuities purchased from life insurance companies to settle claims. Since we retain ultimate liability in the event that the life company fails to pay, we reflect the amounts as both a liability and a recoverable/receivable for GAAP purposes.
Captives						• Companies established and owned by our insurance clients to assume a significant portion of their direct insurance risk from Chubb; structured to allow clients to self-insure a portion of their reinsurance risk. It generally is our policy to obtain collateral equal to expected losses. Where appropriate, exceptions are granted but only with review and approval at a senior officer level. Excludes captives included in the largest reinsurer category.
Other						• Amounts recoverable that are in dispute or are from companies that are in supervision, rehabilitation, or liquidation.

The valuation allowance for uncollectible reinsurance is principally based on an analysis of the credit quality of the reinsurer and collateral balances. We establish the valuation allowance for uncollectible reinsurance for the Other category based on a case-by-case analysis of individual situations including the merits of the underlying matter, credit and collateral analysis, and consideration.

6. Goodwill, Other intangible assets, and Value of business acquired

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, 2020			$	6,972					$	2,240					$	134					$	4,836					$	371					$	847					$	15,400
Foreign exchange revaluation and other			—						—						—						(183)						—						(4)						(187)
Balance at December 31, 2021			$	6,972					$	2,240					$	134					$	4,653					$	371					$	843					$	15,213
Acquisition of Cigna's business in Asia			—						—						—						90						—						1,160						1,250
Foreign exchange revaluation and other			(27)						(10)						—						(138)						—						(1)						(176)
Balance at December 31, 2022			$	6,945					$	2,230					$	134					$	4,605					$	371					$	2,002					$	16,287

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.

			December 31
(in millions of U.S. dollars)			2022						2021
Subject to amortization			$	2,459					$	2,508
Not subject to amortization			2,982						2,947
Total			$	5,441					$	5,455

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Chubb Limited and Subsidiaries

Amortization expense related to purchased intangibles was $285 million, $287 million, and $290 million for the years ended December 31, 2022, 2021, and 2020, respectively. The following table presents, as of December 31, 2022, the expected estimated pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the next five years:

						For the Years Ending December 31
(in millions of U.S. dollars)						Total Amortization of purchased intangibles
2023						$	281
2024						260
2025						242
2026						220
2027						205
Total						$	1,208

VOBA

Value of business acquired (VOBA) represents the fair value of the future profits of in-force long duration contracts, and is amortized in relation to the profit emergence of the underlying contracts, in a manner similar to deferred acquisition costs. The VOBA calculation is based on many factors including mortality, morbidity, persistency, investment yields, expenses, and the discount rate, with the discount rate being the most significant factor.

The following table presents a roll-forward of VOBA:

									Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Balance, beginning of year			$	236					$	263					$	306
Acquisition of Cigna's business in Asia			3,503						—						—
Amortization of VOBA (1)			(164)						(22)						(27)
Foreign exchange revaluation and other			21						(5)						(16)
Balance, end of year			$	3,596					$	236					$	263

(1)Recognized in Policy acquisition costs in the Consolidated statements of operations.

For the year ended December 31, 2022, amortization of VOBA associated with the acquisition of Cigna's business in Asia was $145 million pre-tax.

The following table presents, as of December 31, 2022, the expected estimated pre-tax amortization expense related to VOBA for the next five years at current foreign currency exchange rates:

For the Years Ending December 31			VOBA
(in millions of U.S. dollars)
2023			$	333
2024			299
2025			270
2026			243
2027			219

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Chubb Limited and Subsidiaries

7. Unpaid losses and loss expenses

Chubb establishes reserves for the estimated unpaid ultimate liability for losses and loss expenses under the terms of its policies and agreements. Reserves include estimates for both claims that have been reported and for IBNR claims, and include estimates of expenses associated with processing and settling these claims. Reserves are recorded in Unpaid losses and loss expenses in the Consolidated balance sheets. While we believe that our reserves for unpaid losses and loss expenses at December 31, 2022, are adequate, new information or trends may lead to future developments in incurred loss and loss expenses significantly greater or less than the reserves provided. Any such revisions could result in future changes in estimates of losses or reinsurance recoverable and would be reflected in our results of operations in the period in which the estimates are changed.

The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Gross unpaid losses and loss expenses, beginning of year			$	72,943					$	67,811					$	62,690
Reinsurance recoverable on unpaid losses (1)			(16,184)						(14,647)						(14,181)
Net unpaid losses and loss expenses, beginning of year			56,759						53,164						48,509
Net losses and loss expenses incurred in respect of losses occurring in:
Current year			24,495						22,966						22,124
Prior years (2)			(1,153)						(986)						(414)
Total			23,342						21,980						21,710
Net losses and loss expenses paid in respect of losses occurring in:
Current year			8,117						7,836						7,782
Prior years			12,206						10,048						9,652
Total			20,323						17,884						17,434
Foreign currency revaluation and other			(583)						(501)						379
Net unpaid losses and loss expenses, end of year			59,195						56,759						53,164
Reinsurance recoverable on unpaid losses (1)			17,128						16,184						14,647
Gross unpaid losses and loss expenses, end of year			$	76,323					$	72,943					$	67,811

(1) Net of valuation allowance for uncollectible reinsurance.

(2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, and earned premiums totaling $277 million, $60 million, and $19 million for 2022, 2021, and 2020, respectively.

The increase in gross and net unpaid losses and loss expense in 2022 is due to an increase in underlying exposure due to premium growth, increased loss severity trends and net catastrophe losses, partially offset by favorable prior period development, and favorable foreign exchange movement. The increase in gross and net unpaid losses and loss expense in 2021 is due to an increase in underlying exposure due to premium growth, partially offset by favorable prior period development.

The loss development tables under section c) below, present Chubb’s historical incurred and paid claims development by broad product line through December 31, 2022, net of reinsurance, as well as the cumulative number of reported claims, IBNR balances, and other supplementary information.

Recent period inflation is higher than the levels underlying our loss development triangles. To account for this, our loss estimates for a number of product lines include explicit adjustments by accident year for the potential increase in ultimate claim severity.

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Chubb Limited and Subsidiaries

The following table presents a reconciliation of the loss development tables to the liability for unpaid losses and loss expenses in the consolidated balance sheet:

Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Expenses
(in millions of U.S. dollars)						December 31, 2022
Presented in the loss development tables:
North America Commercial P&C Insurance — Workers' Compensation						$	9,962
North America Commercial P&C Insurance — Liability						20,014
North America Commercial P&C Insurance — Other Casualty						2,530
North America Commercial P&C Insurance — Non-Casualty						3,253
North America Personal P&C Insurance						3,225
Overseas General Insurance — Casualty						7,287
Overseas General Insurance — Non-Casualty						3,206
Global Reinsurance — Casualty						1,208
Global Reinsurance — Non-Casualty						494
Excluded from the loss development tables:
Other						5,210
Net unpaid loss and allocated loss adjustment expense						56,389
Ceded unpaid loss and allocated loss adjustment expense:
North America Commercial P&C Insurance — Workers' Compensation						1,274
North America Commercial P&C Insurance — Liability						6,920
North America Commercial P&C Insurance — Other Casualty						888
North America Commercial P&C Insurance — Non-Casualty						1,883
North America Personal P&C Insurance						530
Overseas General Insurance — Casualty						2,481
Overseas General Insurance — Non-Casualty						1,702
Global Reinsurance — Casualty						55
Global Reinsurance — Non-Casualty						171
Other						1,410
Ceded unpaid loss and allocated loss adjustment expense						17,314
Unpaid loss and loss expense on other than short-duration contracts (1)						943
Unpaid unallocated loss adjustment expenses						1,677
Unpaid losses and loss expenses						$	76,323

(1) Primarily includes the claims reserve of our International A&H business and Life Insurance segment reserves.

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Chubb Limited and Subsidiaries

Business excluded from the loss development tables

“Other” shown in the reconciliation table comprises businesses excluded from the loss development tables:

• Corporate segment business, which includes run-off liabilities such as asbestos, environmental, and molestation and other mass tort exposures and which impact accident years older than those shown in the loss development tables;

• North America Agricultural Insurance segment business, which is short-tailed with the majority of the liabilities expected to be resolved in the ensuing twelve months; and

• Certain subsets of our business due to data limitations or unsuitability to the loss development table presentation, including:

◦Various loss portfolio transfers; by convention, all premium and losses associated with these transactions are recorded to the policy period of the transaction, even though the accident dates of the claims covered may be a decade or more in the past. We also underwrite certain high attachment, high limit, multiple-line and excess of aggregate coverages for large commercial clients. Changes in incurred loss and cash flow patterns are volatile and sufficiently different from those of typical insureds. This category includes the Alternative Risk Solutions business within the North America Commercial P&C Insurance segment;

◦2015 and prior paid history on a subset of previously acquired international businesses, within the Overseas General Insurance segment, due to limitations on the data prior to the acquisition;

◦Purchase accounting adjustments related to unpaid losses and loss expenses for Chubb Corp;

◦Reinsurance recoverable bad debt; and

◦Balances with insufficient detail.

a) Description of Reserving Methodologies

Our recorded reserves represent management's best estimate of the provision for unpaid claims as of the balance sheet date. The process of establishing loss and loss expense reserves can be complex and is subject to considerable uncertainty as it requires the use of estimates and judgments based on circumstances underlying the insured loss at the date of accrual. The reserves for our various product lines each require different qualitative and quantitative assumptions and judgments to be made. Management's best estimate is developed after collaboration with actuarial, underwriting, claims, legal, and finance departments and culminates with the input of reserve committees. Each business unit reserve committee includes the participation of the relevant parties from actuarial, finance, claims, and unit senior management and has the responsibility for finalizing, recommending and approving the estimate to be used as management's best estimate. Reserves are further reviewed by Chubb's Chief Actuary and senior management. The objective of such a process is to determine a single estimate that we believe represents a better estimate than any other and which is viewed by management to be the best estimate of ultimate loss settlements.

This estimate is based on a combination of exposure and experience-based actuarial methods (described below) and other considerations such as claims reviews, reinsurance recovery assumptions and/or input from other knowledgeable parties such as underwriting. Exposure-based methods are most commonly used on relatively immature origin years (i.e., the year in which the losses were incurred — “accident year” or “report year”), while experience-based methods provide a view based on the projection of loss experience that has emerged as of the valuation date. Greater reliance is placed upon experience-based methods as the pool of emerging loss experience grows and where it is deemed sufficiently credible and reliable as the basis for the estimate. In comparing the held reserve for any given origin year to the actuarial projections, judgment is required as to the credibility, uncertainty and inherent limitations of applying actuarial techniques to historical data to project future loss experience. Examples of factors that impact such judgments include, but are not limited to, the following:

• nature and complexity of underlying coverage provided and net limits of exposure provided;

• segmentation of data to provide sufficient homogeneity and credibility for loss projection methods;

• extent of credible internal historical loss data and reliance upon industry information as required;

• historical variability of actual loss emergence compared with expected loss emergence;

• reported and projected loss trends;

• extent of emerged loss experience relative to the remaining expected period of loss emergence;

• rate monitor information for new and renewal business;

• changes in claims handling practice, including impact of COVID-19 on adjudication environment;

• inflation;

• the legal environment, including impact of COVID-19 on judicial proceedings;

• facts and circumstances of large claims;

• terms and conditions of the contracts sold to our insured parties;

• impact of applicable reinsurance recoveries; and

• nature and extent of underlying assumptions.

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Chubb Limited and Subsidiaries

We have actuarial staff within each of our business units who analyze loss reserves (including loss expenses) and regularly project estimates of ultimate losses and the corresponding indications of the required IBNR reserve. Our reserving approach is a comprehensive ground-up process using data at a detailed level that reflects the specific types and coverages of the diverse products written by our various operations. The data presented in this disclosure was prepared on a more aggregated basis and with a focus on changes in incurred loss estimates over time as well as associated cash flows. We note that data prepared on this basis may not demonstrate the full spectrum of characteristics that are evident in the more detailed level studied internally.

We perform an actuarial reserve review for each product line at least once a year. For most product lines, one or more standard actuarial reserving methods may be used to determine estimates of ultimate losses and loss expenses, and from these estimates, a single actuarial central estimate is selected. The actuarial central estimate is an input to the reserve committee process described above. For the few product lines that do not lend themselves to standard actuarial reserving methods, appropriate techniques are applied to produce the actuarial central estimates. For example, run-off asbestos and environmental liability estimates are better suited to the application of account-specific exposure-based analyses to best evaluate their associated aggregate reserve levels.

b) Standard actuarial reserving methods

The judgments involved in projecting the ultimate losses include the use and interpretation of various standard actuarial reserving methods that place reliance on the extrapolation of actual historical data, loss development patterns, industry data, and other benchmarks as appropriate.

Standard actuarial reserving methods include, but are not limited to, expected loss ratio, paid and reported loss development, and Bornhuetter-Ferguson methods. A general description of these methods is provided below. In addition to these standard methods, depending upon the product line characteristics and available data, we may use other recognized actuarial methods and approaches. Implicit in the standard actuarial methods that we generally utilize is the need for two fundamental assumptions: first, the pattern by which losses are expected to emerge over time for each origin year, and second, the expected loss ratio for each origin year.

The expected loss ratio for any particular origin year is selected after consideration of a number of factors, including historical loss ratios adjusted for rate changes, premium and loss trends, industry benchmarks, the results of policy level loss modeling at the time of underwriting, and/or other more subjective considerations for the product line (e.g., terms and conditions) and external environment as noted above. The expected loss ratio for a given origin year is initially established at the start of the origin year as part of the planning process. This analysis is performed in conjunction with underwriters and management. The expected loss ratio method arrives at an ultimate loss estimate by multiplying the expected ultimate loss ratio by the corresponding premium base. This method is most commonly used as the basis for the actuarial central estimate for immature origin periods on product lines where the actual paid or reported loss experience is not yet deemed sufficiently credible to serve as the principal basis for the selection of ultimate losses. The expected loss ratio for a given origin year may be modified over time if the underlying assumptions differ from the original assumptions (e.g., the assessment of prior year loss ratios, loss trend, rate changes, actual claims, or other information).

Our selected paid and reported development patterns provide a benchmark against which the actual emerging loss experience can be monitored. Where possible, development patterns are selected based on historical loss emergence by origin year. For product lines where the historical data is viewed to have low statistical credibility, the selected development patterns also reflect relevant industry benchmarks and/or experience from similar product lines written elsewhere within Chubb. This most commonly occurs for relatively new product lines that have limited historical data or for high severity/low frequency portfolios where our historical experience exhibits considerable volatility and/or lacks credibility. The paid and reported loss development methods convert the selected loss emergence pattern to a set of multiplicative factors which are then applied to actual paid or reported losses to arrive at an estimate of ultimate losses for each period. Due to their multiplicative nature, the paid and reported loss development methods will leverage differences between actual and expected loss emergence. These methods tend to be utilized for more mature origin periods and for those portfolios where the loss emergence has been relatively consistent over time.

The Bornhuetter-Ferguson method is a combination of the expected loss ratio method and the loss development method, where the loss development method is given more weight as the origin year matures. This approach allows a logical transition between the expected loss ratio method which is generally utilized at earlier maturities and the loss development methods which are typically utilized at later maturities. We usually apply this method using reported loss data although paid data may also be used.

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Chubb Limited and Subsidiaries

Short-tail business

Short-tail business generally describes product lines for which losses are typically known and paid shortly after the loss occurs. This would include, for example, most property, personal accident, and automobile physical damage policies that we write. Due to the short reporting and development pattern for these product lines, the uncertainty associated with our estimate of ultimate losses for any particular accident period diminishes relatively quickly as actual loss experience emerges. We typically assign credibility to methods that incorporate actual loss emergence, such as the paid and reported loss development and Bornhuetter-Ferguson methods, sooner than would be the case for long-tail lines at a similar stage of development for a given origin year. The reserving process for short-tail losses arising from catastrophic events typically involves an assessment by the claims department, in conjunction with underwriters and actuaries, of our exposure and estimated losses immediately following an event and then subsequent revisions of the estimated losses as our insureds provide updated actual loss information.

Long-tail business

Long-tail business describes lines of business for which specific losses may not be known/reported for some period and for which claims can take significant time to settle/close. This includes most casualty lines such as general liability, D&O, and workers' compensation. There are various factors contributing to the uncertainty and volatility of long-tail business, including the indirect impact of COVID-19 that has changed loss reporting and development patterns. In addition, uncertain future inflationary trends, changes in future legal environments, and the potential impact of major claims, such as molestation claims including the Boy Scouts of America (BSA) agreement-in-principle, added to the uncertainty and volatility in the long-tail business. Other factors are:

• The nature and complexity of underlying coverage provided and net limits of exposure provided;

• Our historical loss data and experience is sometimes too immature and lacking in credibility to rely upon for reserving purposes. Where this is the case, in our reserve analysis we may utilize industry loss ratios or industry benchmark development patterns that we believe reflect the nature and coverage of the underwritten business and its future development, where available. For such product lines, actual loss experience may differ from industry loss statistics as well as loss experience for previous underwriting years;

• The difficulty in estimating loss trends, claims inflation (e.g., medical and judicial) and underlying economic conditions;

• The need for professional judgment to estimate loss development patterns beyond that represented by historical data using supplemental internal or industry data, extrapolation, or a blend of both;

• The need to address shifts in business mix or volume over time when applying historical paid and reported loss development patterns from older origin years to more recent origin years. For example, changes over time in the processes and procedures for establishing case reserves can distort reported loss development patterns or changes in ceded reinsurance structures by origin year can alter the development of paid and reported losses;

• Loss reserve analyses typically require loss or other data be grouped by common characteristics in some manner. If data from two combined lines of business exhibit different characteristics, such as loss payment patterns, the credibility of the reserve estimate could be affected. Additionally, since casualty lines of business can have significant intricacies in the terms and conditions afforded to the insured, there is an inherent risk as to the homogeneity of the underlying data used in performing reserve analyses; and

• The applicability of the price change data used to estimate ultimate loss ratios for most recent origin years.

As described above, various factors are considered when determining appropriate data, assumptions, and methods used to establish the loss reserve estimates for long-tail product lines. These factors may also vary by origin year for given product lines. The derivation of loss development patterns from data and the selection of a tail factor to project ultimate losses from actual loss emergence require considerable judgment, particularly with respect to the extent to which historical loss experience is relied upon to support changes in key reserving assumptions.

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Chubb Limited and Subsidiaries

c) Loss Development Tables

The tables were designed to present business with similar risk characteristics which exhibit like development patterns and generally similar trends, in order to provide insight into the nature, amount, timing and uncertainty of cash flows related to our claims liabilities.

Each table follows a similar format and reflects the following:

• The incurred loss triangle includes both reported case reserves and IBNR liabilities.

• Both the incurred and paid loss triangles include allocated loss adjustment expense (i.e., defense and investigative costs particular to individual claims) but exclude unallocated loss adjustment expense (i.e., the costs associated with internal claims staff and third-party administrators).

• The amounts in both triangles for the years ended December 31, 2013, to December 31, 2021, and average historical claim duration as of December 31, 2022, are presented as supplementary information.

• All data presented in the triangles is net of reinsurance recoverables.

• The IBNR reserves shown to the right of each incurred loss development exhibit reflect the net IBNR recorded as of December 31, 2022.

• The tables are presented retrospectively with respect to acquisitions where these are material and doing so is practicable. Most notably, the Chubb Corp acquisition is presented retrospectively. The unaudited consolidated data is presented solely for informational purposes and is not necessarily indicative of the consolidated data that might have been observed had the transactions been completed prior to the date indicated.

Historical dollar amounts are presented in this footnote on a constant-dollar basis, which is achieved by assuming constant foreign exchange rates for all periods in the loss triangles, translating prior period amounts using the same local currency exchange rates as the current year end. The impact of this conversion is to show the change between periods exclusive of the effect of fluctuations in exchange rates, which would otherwise distort the change in incurred loss and cash flow patterns shown. The change in incurred loss shown will differ from other GAAP disclosures of incurred prior period reserve development amounts, which include the effect of fluctuations in exchanges rates.

We provided guidance above on key assumptions that should be considered when reviewing this disclosure and information relating to how loss reserve estimates are developed. We believe the information provided in the “Loss Development Tables” section of the disclosure is of limited use for independent analysis or application of standard actuarial estimations.

Cumulative Number of Reported Claims

Reported claim counts, on a cumulative basis, are provided to the far right of each incurred loss development table. In our North America segments, we generally consider a reported claim to be one claim per coverage per claimant. In our Overseas General Insurance segment, we generally consider a reported claim to be on a per occurrence basis. Global Reinsurance segment’s portfolio comprises a mix of proportional and non-proportional treaties. The proportional treaties are reported on a bulk basis and do not lend themselves to meaningful claim count data. As such, we do not provide claim count information for our Global Reinsurance segment.

We exclude claims closed without payment. Claims are counted on a direct basis without consideration of ceded reinsurance. Use of the presented claim counts in analysis of company experience has significant limitations, including:

• Claims for certain events and/or product lines, such as portions of our A&H business, are not reported on an individual basis, but rather in bulk and thus not available for inclusion in this disclosure.

• Each segment typically has a mixture of primary and excess experience which has shifted over time.

• Captive business, especially in Workers' Compensation and Liability, largely represents fronted business where our net exposure to loss is minimal; however, since the claim count is based on direct claims, there is a mismatch between direct claims and net loss dollars, the extent of which varies by accident year.

Reported claim counts include open claims which have case reserves but exclude claims that have been incurred but not reported. As such the reported claims are not consistent with the incurred losses in the triangle, which include incurred but not reported losses. One can calculate reported losses by subtracting incurred but not reported losses from incurred losses in the triangle. Reported claim counts are also inconsistent with losses in the paid loss triangle, since reported counts would include claims with case reserves but no payments to date.

F-47

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Commercial P&C Insurance — Workers' Compensation — Long-tail

This product line has a broad mix of exposures across industries as well as a mix of policy coverages. Types of coverage include risk management business predominantly with high deductible policies, loss sensitive business (i.e., retrospectively-rated policies), business fronted for captives, as well as excess and primary guaranteed cost coverages.

The triangle below shows all loss and allocated expense development for the workers' compensation product line. In our prior period development disclosure, we exclude any loss development where there is a directly related premium adjustment. For workers' compensation, changes in the exposure base due to payroll audits will drive changes in ultimate losses. In addition, we record involuntary pool assumptions (premiums and losses) on a lagged basis. Both of these items will influence the development in the triangle, particularly the first prior accident year, and are included in the reconciliation table presented on page F-60.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	1,109					$	1,108					$	1,122					$	1,127					$	1,086					$	1,073					$	1,037					$	1,014					$	989					$	968					$	219					43
2014									1,207						1,201						1,217						1,215						1,163						1,100						1,073						1,037						1,007						264						45
2015															1,282						1,259						1,276						1,279						1,217						1,154						1,128						1,092						338						50
2016																					1,366						1,361						1,383						1,378						1,269						1,206						1,177						380						52
2017																											1,412						1,380						1,399						1,393						1,376						1,176						465						50
2018																																	1,359						1,361						1,380						1,385						1,384						631						51
2019																																							1,391						1,384						1,400						1,409						656						48
2020																																													1,367						1,388						1,409						852						31
2021																																																			1,348						1,330						780						37
2022																																																									1,344						988						32
Total																																																									$	12,296

Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	107					$	286					$	422					$	506					$	553					$	587					$	616					$	633					$	650					$	664
2014												113						295						410						484						532						566						599						617						634
2015																		116						301						418						501						564						606						628						645
2016																								122						326						452						529						584						621						653
2017																														120						313						437						516						564						601
2018																																				130						329						451						528						597
2019																																										143						341						467						575
2020																																																111						282						390
2021																																																						120						331
2022																																																												131
Total																																																												$	5,221

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	2,887
Accident years 2013 - 2022 from tables above						7,075
All Accident years						$	9,962

F-48

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Commercial P&C Insurance — Workers' Compensation — Long-tail (continued)
Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	(132)
Accident years 2013 - 2022 from tables above						(305)
All Accident years						$	(437)

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			10		%				16		%				10		%				7		%				5		%				3		%				3		%				2		%				2		%				1		%

North America Commercial P&C Insurance — Liability — Long-tail

This line consists of primary and excess general liability exposures, medical liability, and professional lines, including directors and officers (D&O) liability, errors and omissions (E&O) liability, employment practices liability (EPL), fidelity bonds, and fiduciary liability.

The primary and excess general liability business represents the largest part of these exposures. The former includes both monoline and commercial package liability. The latter includes a substantial proportion of commercial umbrella, excess and high excess business, where loss activity can produce significant volatility in the loss triangles at later ages within an accident year (and sometimes across years) due to the size of the limits afforded and the complex nature of the underlying losses.

This line includes management and professional liability products provided to a wide variety of clients, from national accounts to small firms along with private and not-for-profit organizations, distributed through brokers, agents, wholesalers, and MGAs. Many of these coverages, particularly D&O and E&O, are typically written on a claims-made form. While most of the coverages are underwritten on a primary basis, there are significant amounts of excess exposure with large policy limits.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	3,540					$	3,534					$	3,534					$	3,524					$	3,422					$	3,208					$	3,115					$	2,958					$	2,950					$	2,997					$	247					25
2014									3,528						3,578						3,667						3,710						3,648						3,463						3,340						3,192						3,142						278						24
2015															3,552						3,701						3,810						3,966						3,934						3,727						3,700						3,569						390						27
2016																					3,526						3,587						3,684						3,797						3,792						3,764						3,755						589						27
2017																											3,315						3,491						3,573						3,623						3,545						3,434						758						26
2018																																	3,367						3,485						3,688						3,820						3,900						1,041						28
2019																																							3,445						3,620						3,858						4,050						1,488						30
2020																																													4,102						3,826						3,919						2,184						24
2021																																																			4,315						4,349						3,263						24
2022																																																									4,561						4,176						24
Total																																																									$	37,676

F-49

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Commercial P&C Insurance — Liability — Long-tail (continued)
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	129					$	546					$	1,189					$	1,593					$	2,003					$	2,228					$	2,369					$	2,460					$	2,520					$	2,609
2014												164						678						1,248						1,801						2,199						2,439						2,580						2,669						2,753
2015																		138						604						1,203						1,852						2,287						2,527						2,743						2,921
2016																								171						662						1,334						1,973						2,331						2,593						2,820
2017																														161						616						1,160						1,698						2,000						2,322
2018																																				189						753						1,301						1,773						2,335
2019																																										175						669						1,245						1,888
2020																																																152						589						1,147
2021																																																						174						608
2022																																																												144
Total																																																												$	19,547

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	1,885
Accident years 2013 - 2022 from tables above						18,129
All Accident years						$	20,014

Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	98
Accident years 2013 - 2022 from tables above						145
All Accident years						$	243

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			4		%				13		%				16		%				16		%				12		%				8		%				5		%				4		%				2		%				3		%

F-50

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Commercial P&C Insurance — Other Casualty — Long-tail

This product line consists of the remaining commercial casualty coverages such as automobile liability and aviation as well as our foreign casualty exposures (mainly auto, general liability and employer responsibility coverages) on U.S.-based multinational accounts. The paid and reported data are impacted by some catastrophe loss activity.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	525					$	530					$	521					$	514					$	468					$	461					$	461					$	457					$	459					$	458					$	8					17
2014									594						582						580						595						554						537						538						530						526						6						17
2015															486						469						500						514						457						454						462						457						23						15
2016																					503						501						527						523						480						479						469						27						16
2017																											531						565						576						616						604						590						36						17
2018																																	535						563						574						579						575						25						17
2019																																							605						636						685						743						143						17
2020																																													640						633						656						265						11
2021																																																			675						709						379						12
2022																																																									782						611						11
Total																																																									$	5,965

Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	68					$	196					$	270					$	348					$	384					$	410					$	418					$	425					$	438					$	441
2014												80						220						317						391						454						472						500						508						513
2015																		47						137						214						304						370						394						411						423
2016																								52						145						246						323						374						398						424
2017																														66						175						312						381						446						496
2018																																				74						169						270						365						472
2019																																										70						189						318						465
2020																																																54						156						273
2021																																																						60						176
2022																																																												82
Total																																																												$	3,765

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	330
Accident years 2013 - 2022 from tables above						2,200
All Accident years						$	2,530

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Commercial P&C Insurance — Other-Casualty — Long-tail (continued)
Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	56
Accident years 2013 - 2022 from tables above						77
All Accident years						$	133

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			11		%				19		%				19		%				16		%				13		%				6		%				4		%				2		%				2		%				1		%

North America Commercial P&C Insurance — Non-Casualty — Short-tail

This product line represents first party commercial product lines that are short-tailed in nature, such as property, inland marine, ocean marine, surety, and A&H. There is a wide diversity of products, primary and excess coverages, and policy sizes. During this ten-year period, this product line was impacted by natural catastrophes mainly in the 2017 and 2018 accident years, and in accident year 2020 by direct COVID.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	1,427					$	1,417					$	1,330					$	1,352					$	1,333					$	1,333					$	1,330					$	1,337					$	1,336					$	1,340					$	3					455
2014									1,639						1,655						1,573						1,552						1,543						1,544						1,552						1,545						1,544						2						483
2015															1,730						1,740						1,645						1,633						1,600						1,585						1,587						1,592						1						545
2016																					1,904						1,884						1,794						1,775						1,811						1,824						1,820						26						650
2017																											2,699						2,602						2,501						2,517						2,509						2,519						65						764
2018																																	2,047						2,234						2,169						2,161						2,170						35						903
2019																																							2,046						2,031						1,953						1,944						52						1,043
2020																																													3,139						2,942						2,726						105						1,124
2021																																																			2,941						2,824						368						857
2022																																																									3,048						1,467						751
Total																																																									$	21,527

Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	647					$	1,132					$	1,231					$	1,278					$	1,304					$	1,318					$	1,326					$	1,328					$	1,329					$	1,338
2014												816						1,368						1,478						1,499						1,525						1,540						1,547						1,552						1,552
2015																		724						1,339						1,484						1,552						1,567						1,570						1,583						1,582
2016																								844						1,499						1,650						1,726						1,754						1,779						1,790
2017																														977						2,083						2,299						2,389						2,403						2,427
2018																																				1,025						1,820						2,012						2,068						2,113
2019																																										1,028						1,672						1,800						1,856
2020																																																1,390						2,260						2,466
2021																																																						1,085						2,100
2022																																																												1,050
Total																																																												$	18,274

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Commercial P&C Insurance — Non-Casualty — Short-tail (continued)
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	—
Accident years 2013 - 2022 from tables above						3,253
All Accident years						$	3,253

Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	(11)
Accident years 2013 - 2022 from tables above						(319)
All Accident years						$	(330)

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			45		%				36		%				8		%				3		%				1		%				1		%				1		%				—		%				—		%				1		%

North America Personal P&C Insurance — Short-tail

Chubb provides personal lines coverages for high-net-worth individuals and families in North America including homeowners, automobile, valuable articles (including fine art), umbrella liability, and recreational marine insurance offered through independent regional agents and brokers. During this ten-year period, this segment was also impacted by natural catastrophes, mainly in the 2017 and 2018 accident years.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	1,848					$	1,876					$	1,884					$	1,888					$	1,912					$	1,924					$	1,932					$	1,935					$	1,936					$	1,933					$	18					132
2014									2,198						2,199						2,185						2,139						2,153						2,140						2,134						2,134						2,133						9						144
2015															2,487						2,542						2,553						2,536						2,556						2,562						2,559						2,561						12						148
2016																					2,433						2,529						2,538						2,476						2,464						2,457						2,465						17						154
2017																											3,027						3,062						2,995						2,991						2,991						3,000						16						163
2018																																	3,001						3,029						3,095						3,110						3,131						93						170
2019																																							2,948						2,985						2,986						2,978						116						156
2020																																													2,922						2,627						2,626						206						123
2021																																																			3,027						2,877						245						129
2022																																																									3,102						1,217						94
Total																																																									$	26,806

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

North America Personal P&C Insurance — Short-tail (continued)
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	1,036					$	1,494					$	1,676					$	1,775					$	1,831					$	1,873					$	1,884					$	1,906					$	1,904					$	1,910
2014												1,306						1,759						1,919						2,028						2,073						2,100						2,109						2,116						2,119
2015																		1,495						2,078						2,264						2,385						2,472						2,501						2,526						2,535
2016																								1,449						2,046						2,205						2,308						2,364						2,391						2,422
2017																														1,693						2,514						2,661						2,793						2,863						2,930
2018																																				1,922						2,542						2,699						2,857						2,971
2019																																										1,663						2,431						2,610						2,718
2020																																																1,330						1,990						2,223
2021																																																						1,583						2,368
2022																																																												1,411
Total																																																												$	23,607

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	26
Accident years 2013 - 2022 from tables above						3,199
All Accident years						$	3,225

Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	(5)
Accident years 2013 - 2022 from tables above						(123)
All Accident years						$	(128)

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			56		%				24		%				7		%				5		%				3		%				2		%				1		%				1		%				—		%				—		%

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Chubb Limited and Subsidiaries

Overseas General Insurance — Casualty — Long-tail

This product line comprises D&O liability, E&O liability, financial institutions (including crime/fidelity coverages), and non-U.S. general liability as well as aviation and political risk. Exposures are located around the world, including Europe, Latin America, and Asia. Approximately 45 percent of Chubb Overseas General business is generated by European accounts, exclusive of Lloyd's market. There is some U.S. exposure in Casualty from multinational accounts and in financial lines for Lloyd's market. The financial lines coverages are typically written on a claims-made form, while general liability coverages are typically on an occurrence basis and comprises a mix of primary and excess businesses.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	1,186					$	1,181					$	1,174					$	1,217					$	1,172					$	1,139					$	1,084					$	1,054					$	1,074					$	1,094					$	65					37
2014									1,186						1,253						1,261						1,277						1,197						1,118						1,081						1,092						1,096						100						38
2015															1,107						1,199						1,226						1,248						1,229						1,172						1,157						1,174						131						40
2016																					1,138						1,234						1,298						1,327						1,317						1,328						1,263						117						42
2017																											1,128						1,224						1,271						1,318						1,283						1,319						149						43
2018																																	1,224						1,273						1,332						1,375						1,330						282						43
2019																																							1,295						1,360						1,382						1,373						358						42
2020																																													1,669						1,589						1,509						835						34
2021																																																			1,604						1,650						1,111						35
2022																																																									1,741						1,475						29
Total																																																									$	13,549

Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	78					$	246					$	393					$	532					$	667					$	763					$	826					$	875					$	896					$	913
2014												104						273						440						567						675						754						815						857						886
2015																		79						265						460						631						745						821						895						927
2016																								119						303						500						642						760						851						974
2017																														90						296						494						647						805						931
2018																																				104						309						465						602						718
2019																																										116						313						440						642
2020																																																101						271						425
2021																																																						110						268
2022																																																												83
Total																																																												$	6,767

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	505
Accident years 2013 - 2022 from tables above						6,782
All Accident years						$	7,287

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Overseas General Insurance — Casualty — Long-tail (continued)
Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	8
Accident years 2013 - 2022 from tables above						(76)
All Accident years						$	(68)

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			7		%				14		%				13		%				12		%				10		%				8		%				7		%				4		%				2		%				2		%

Overseas General Insurance — Non-Casualty — Short-tail

This product line is comprised of commercial fire, marine (predominantly cargo), surety, personal automobile (in Latin America, Asia Pacific and Japan), personal cell phones, personal residential (including high net worth), energy, and construction. In general, these lines have relatively stable payment and reporting patterns although they are impacted by natural catastrophes mainly in the 2017, 2018, and 2022 accident years. For the Chubb Overseas General non-casualty book, Europe, exclusive of Lloyd's market, makes up about one third, Latin America makes up about one quarter, and Asia makes up about one fifth.

Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves						Reported Claims (in thousands)
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	1,656					$	1,651					$	1,590					$	1,545					$	1,540					$	1,513					$	1,501					$	1,492					$	1,483					$	1,481					$	12					560
2014									1,727						1,790						1,737						1,725						1,691						1,682						1,675						1,669						1,661						5						534
2015															1,815						1,932						1,907						1,876						1,860						1,853						1,836						1,835						7						557
2016																					1,920						1,914						1,901						1,880						1,883						1,913						1,911						35						566
2017																											2,067						2,107						2,093						2,075						2,099						2,096						23						577
2018																																	2,022						2,107						2,070						2,044						2,013						39						612
2019																																							2,044						2,060						2,000						1,989						(15)						631
2020																																													2,378						2,244						2,120						164						533
2021																																																			2,462						2,374						241						541
2022																																																									2,728						696						597
Total																																																									$	20,208

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Overseas General Insurance — Non-Casualty — Short-tail (continued)
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	643					$	1,186					$	1,369					$	1,399					$	1,433					$	1,451					$	1,458					$	1,461					$	1,458					$	1,458
2014												699						1,327						1,526						1,585						1,614						1,627						1,641						1,648						1,641
2015																		789						1,437						1,656						1,732						1,754						1,781						1,798						1,801
2016																								938						1,554						1,740						1,807						1,831						1,840						1,845
2017																														980						1,726						1,893						1,964						2,004						2,062
2018																																				930						1,620						1,812						1,878						1,893
2019																																										979						1,620						1,804						1,869
2020																																																1,003						1,602						1,746
2021																																																						944						1,692
2022																																																												1,122
Total																																																												$	17,129

(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	127
Accident years 2013 - 2022 from tables above						3,079
All Accident years						$	3,206

Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	(10)
Accident years 2013 - 2022 from tables above						(270)
All Accident years						$	(280)

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			45		%				34		%				10		%				3		%				1		%				1		%				1		%				—		%				—		%				—		%

Global Reinsurance

Chubb analyzes its Global Reinsurance business on a treaty year basis rather than on an accident year basis. Treaty year data was converted to an accident year basis for the purposes of this disclosure. Mix shifts are an important consideration in these product line groupings. As proportional business and excess of loss business have different earning and loss reporting and payment patterns, this change in mix will affect the cash flow patterns across the accident years. In addition, the shift from excess to proportional business over time will make the cash flow patterns of older and more recent years difficult to compare. In general, the proportional business will pay out more quickly than the excess of loss business, as such, using older years development patterns may overstate the ultimate loss estimates in more recent years.

Global Reinsurance — Casualty — Long-tail

This product line includes proportional and excess coverages in general, automobile liability, professional liability, medical malpractice, and workers' compensation, with exposures located around the world. In general, reinsurance exhibits less stable development patterns than primary business. In particular, general casualty reinsurance and excess coverages are long-tailed and can be very volatile.

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Global Reinsurance — Casualty — Long-tail (continued)
Net Incurred Loss and Allocated Loss Adjustment Expenses
																																													Years Ended December 31																		As of December 31 2022
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	317					$	323					$	326					$	326					$	327					$	320					$	313					$	307					$	305					$	302					$	6
2014									329						330						335						338						339						343						326						326						325						8
2015															280						285						295						296						304						300						304						306						11
2016																					218						222						230						229						238						238						243						11
2017																											208						210						214						212						213						212						4
2018																																	237						240						247						243						246						12
2019																																							232						240						236						235						37
2020																																													241						245						236						60
2021																																																			277						281						136
2022																																																									293						206
Total																																																									$	2,679

Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	64					$	142					$	185					$	221					$	240					$	258					$	266					$	269					$	275					$	279
2014												91						183						216						247						262						273						283						292						297
2015																		89						157						189						215						230						247						263						272
2016																								56						111						140						157						172						189						205
2017																														46						98						120						137						152						172
2018																																				40						93						122						145						166
2019																																										39						88						114						137
2020																																																41						98						123
2021																																																						35						86
2022																																																												39
Total																																																												$	1,776

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	305
Accident years 2013 - 2022 from tables above						903
All Accident years						$	1,208

Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	(7)
Accident years 2013 - 2022 from tables above						(1)
All Accident years						$	(8)

Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			20		%				23		%				11		%				9		%				6		%				6		%				4		%				2		%				2		%				1		%

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Global Reinsurance — Non-Casualty — Short-tail

This product line includes property, property catastrophe, marine, credit/surety, mortgage, A&H and energy. This product line is impacted by natural catastrophes, particularly in the 2017, 2018, 2020, 2021, and 2022 accident years. Of the non-catastrophe book, the mixture of business varies by year with approximately 85 percent of loss on proportional treaties in treaty year 2013 and after. This percentage has increased over time with the proportion being approximately 79 percent for treaty years 2013-2017 growing to an average of 91 percent for treaty years 2018 to 2022, with the remainder being written on an excess of loss basis.

Net Incurred Loss and Allocated Loss Adjustment Expenses																																																															As of December 31 2022
																																													Years Ended December 31
(in millions of U.S. dollars)												Unaudited																																																			Net IBNR Reserves
Accident Year			2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013			$	157					$	154					$	143					$	137					$	139					$	136					$	136					$	135					$	134					$	134					$	—
2014									159						175						174						177						175						174						173						172						170						1
2015															144						152						158						158						151						156						154						154						—
2016																					176						182						184						187						183						181						181						2
2017																											395						421						451						449						453						456						12
2018																																	279						287						290						286						291						7
2019																																							132						130						127						121						8
2020																																													209						253						277						34
2021																																																			340						350						43
2022																																																									346						220
Total																																																									$	2,480

Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																																																Years Ended December 31
(in millions of U.S. dollars)															Unaudited
Accident Year						2013						2014						2015						2016						2017						2018						2019						2020						2021						2022
2013						$	45					$	100					$	118					$	127					$	130					$	132					$	133					$	134					$	134					$	134
2014												63						125						147						157						162						164						166						166						167
2015																		56						102						130						140						144						148						150						151
2016																								56						129						155						166						172						175						176
2017																														191						321						400						414						427						433
2018																																				94						250						266						269						273
2019																																										35						81						95						103
2020																																																62						177						215
2021																																																						158						277
2022																																																												74
Total																																																												$	2,003

Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	17
Accident years 2013 - 2022 from tables above						477
All Accident years						$	494

Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)						December 31, 2022
Accident years prior to 2013						$	(4)
Accident years 2013 - 2022 from tables above						34
All Accident years						$	30

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Global Reinsurance — Non-Casualty — Short-tail (continued)
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2022 (Unaudited)
Age in Years			1						2						3						4						5						6						7						8						9						10
Percentage			34		%				40		%				15		%				5		%				3		%				2		%				1		%				—		%				—		%				—		%

Prior Period Development — Supplementary Information

The following table presents a reconciliation of the loss development triangles above to prior period development:

			Components of PPD
Year Ended December 31, 2022 (in millions of U.S. dollars) (favorable)/unfavorable			2013 - 2021 accident years (implied PPD per loss triangles)						Accident years prior to 2013						Other (1)									PPD on loss reserves						RIPs, Expense adjustments, and earned premiums									Total
North America Commercial P&C Insurance
Long-tail			$	(83)					$	22					$	(253)								$	(314)					$	85								$	(229)
Short-tail			(319)						(11)						(30)									(360)						27									(333)
			(402)						11						(283)			(2)						(674)						112			(3)						(562)
North America Personal P&C Insurance (Short-tail)			(123)						(5)						(58)			(4)						(186)						—									(186)
Overseas General Insurance
Long-tail			(76)						8						3									(65)						—									(65)
Short-tail			(270)						(10)						(103)									(383)						—									(383)
			(346)						(2)						(100)			(5)						(448)						—									(448)
Global Reinsurance
Long-tail			(1)						(7)						1									(7)						—									(7)
Short-tail			34						(4)						—									30						(1)									29
			33						(11)						1									23						(1)									22
Subtotal			$	(838)					$	(7)					$	(440)								$	(1,285)					$	111								$	(1,174)
North America Agricultural Insurance (Short-tail)																								$	(227)					$	166								$	(61)
Corporate (Long-tail)																								359						—									359
Consolidated PPD																								$	(1,153)					$	277								$	(876)

(1) Other includes the impact of foreign exchange.

(2) Includes favorable development of $161 million related to our Alternative Risk Solutions business (U.S. and Bermuda) and an adjustment to exclude $46 million in unfavorable development in the workers' compensation line, associated with an increase in exposure for which additional premiums were collected; the remaining difference relates to a number of other items, none of which are individually material.

(3) Includes premium returns associated with our Alternative Risk Solutions business, which is excluded from the triangles.

(4) Includes $48 million relating to the Colorado Wildfire CAT event that began December 30, 2021.

(5) Includes favorable development of $105 million related to International A&H business; the remaining difference relates to a number of other items, none of which are individually material.

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Prior Period Development

Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. Long-tail lines include lines such as workers' compensation, general liability, and financial lines; while short-tail lines include lines such as most property lines, energy, personal accident, and agriculture. The following table summarizes (favorable) and adverse PPD by segment:

Years Ended December 31 (in millions of U.S. dollars, except for percentages)			Long-tail						Short-tail						Total						% of beginning net unpaid reserves (1)
2022
North America Commercial P&C Insurance			$	(229)					$	(333)					$	(562)					1.0		%
North America Personal P&C Insurance			—						(186)						(186)						0.3		%
North America Agricultural Insurance			—						(61)						(61)						0.1		%
Overseas General Insurance			(65)						(383)						(448)						0.8		%
Global Reinsurance			(7)						29						22						—		%
Corporate			359						—						359						0.6		%
Total			$	58					$	(934)					$	(876)					1.5		%
2021
North America Commercial P&C Insurance			$	(482)					$	(280)					$	(762)					1.4		%
North America Personal P&C Insurance			—						(305)						(305)						0.6		%
North America Agricultural Insurance			—						10						10						—		%
Overseas General Insurance			(106)						(335)						(441)						0.8		%
Global Reinsurance			(25)						28						3						—		%
Corporate			569						—						569						1.1		%
Total			$	(44)					$	(882)					$	(926)					1.7		%
2020
North America Commercial P&C Insurance			$	(672)					$	(30)					$	(702)					1.4		%
North America Personal P&C Insurance			—						63						63						0.1		%
North America Agricultural Insurance			—						(10)						(10)						—		%
Overseas General Insurance			(49)						(101)						(150)						0.3		%
Global Reinsurance			(25)						(4)						(29)						0.1		%
Corporate			433						—						433						0.9		%
Total			$	(313)					$	(82)					$	(395)					0.8		%

(1) Calculated based on the beginning of period consolidated net unpaid losses and loss expenses.

Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate.

North America Commercial P&C Insurance**.** Net favorable development in 2022 included $496 million in workers' compensation from lower than expected loss experience, updates to loss development factors, and our annual assessment of multi-claimant events, including industrial accidents. The favorable development was partially offset by net adverse development of $177 million in commercial auto liability, driven by adverse reported loss experience and explicit recognition of anticipated increases in claim severity trend, $96 million from commercial umbrella/excess portfolios, driven by higher than expected loss emergence and increases in our claims severity trend assumptions, and $82 million from medical risk where reported loss activity was higher than expected, driven by claim severity increases and large loss activity. Net favorable development on our short-tail businesses primarily included $206 million from property and marine portfolios, where paid and reported loss activity for the most recent accident years was lower than expected.

Net favorable development in 2021 included favorable development of $303 million on COVID-19 reserves, including $256 million on management liability portfolios. Total favorable development on management liability portfolios of $278 million,

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including the COVID-19 referenced above, was driven by lower than expected claim frequency including securities class actions. Net favorable development also included $260 million in our workers' compensation business, driven by lower than expected loss experience and related improvements to loss development factors, and $164 million in property and marine coverages, driven by lower than expected loss development.

Net favorable development of $702 million in 2020 represented 1.4 percent of the beginning consolidated net unpaid losses and loss expense reserves.

North America Personal P&C Insurance**.** Net favorable development in 2022 primarily included favorable development in the homeowners and valuables lines of business, driven by lower than expected claims reserve development.

Net favorable development in 2021 included favorable development primarily in the homeowners and valuables lines of business, which experienced better than expected non-catastrophe loss development.

Net adverse development of $63 million in 2020 represented 0.1 percent of the beginning consolidated net unpaid losses and loss expense reserves.

Overseas General Insurance**.** Net favorable development in 2022 included $105 million in A&H lines, driven by favorable loss development in the Asia Pacific, U.K., and Europe regions. Net favorable development also included $100 million in property lines, driven by favorable loss development across most regions, favorable catastrophe development in recent accident years, specific case reductions, and salvage and subrogation recoveries.

Net favorable development in 2021 included favorable development of $127 million on COVID-19 reserves, including $104 million impact on financial lines. Net favorable development also included favorable development of $111 million in A&H lines across most regions. The favorable development was partially offset by adverse development of $90 million in D&O on specific claims in Australia and the U.K., and adverse professional indemnity development, including medical malpractice, in various regions.

Net favorable development of $150 million in 2020 represented 0.3 percent of the beginning consolidated net unpaid losses and loss expense reserves.

Corporate**.** Net adverse development in 2022, 2021, and 2020, included adverse development for molestation claims of $155 million, $417 million, and $254 million, respectively. The $417 million adverse development in 2021 was primarily driven by a settlement-in-principle with the BSA regarding molestation claims. Refer to the Molestation claims section below for further information. Net adverse development for all years also included adverse development for asbestos and environmental liabilities.

Molestation claims

Chubb's exposure to molestation claims principally arises out of liabilities acquired when it purchased CIGNA's P&C business in 1999, and Chubb Corp in 2016. The vast majority of the current liability relates to exposure from recently enacted "reviver" legislation in certain states that allow civil claims relating to molestation to be asserted against policyholders that would otherwise be barred by statutes of limitations. These exposures are predominantly included in our inactive run-off operations included in the Corporate segment with an immaterial amount in the North America Commercial P&C segment.

In December 2021, Chubb reached an agreement-in-principle regarding the bankruptcy of the Boy Scouts of America (BSA). Under this agreement, which is contingent on a variety of conditions and court approvals, our inactive run-off company, Century Indemnity Company, and certain active Chubb companies will pay their respective share of $800 million and obtain a broad release for all Chubb companies from BSA-related abuse claims. This liability was included in our Unpaid losses and loss expenses as of December 31, 2021, and is gross of reinsurance recoverable and previously carried reserves, collectively, of $425 million.

In the third quarter of 2022, the bankruptcy court approved the agreement-in-principle regarding the bankruptcy of the Boy Scouts of America (BSA), which will proceed to further approval before the U.S. District Court. Of the $800 million that will be paid per the agreement, $300 million was paid as of December 31, 2022, and the remaining $500 million liability is expected to be paid in 2023.

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Asbestos and environmental (A&E)

Chubb's exposure to A&E claims principally arises out of liabilities acquired when it purchased Westchester Specialty in 1998, CIGNA's P&C business in 1999, and Chubb Corp in 2016. The following table presents a roll-forward of consolidated A&E loss reserves including allocated loss expense reserves for A&E exposures, and the valuation allowance for uncollectible paid and unpaid reinsurance recoverables:

						Asbestos												Environmental												Total
(in millions of U.S. dollars)						Gross						Net						Gross						Net						Gross						Net
Balance at December 31, 2019						$	1,459					$	916					$	529					$	410					$	1,988					$	1,326
Incurred activity						150						90						79						41						229						131			(1)
Paid activity						(258)						(133)						(91)						(72)						(349)						(205)
Balance at December 31, 2020						1,351						873						517						379						1,868						1,252
Incurred activity						96						64						52						40						148						104			(1)
Paid activity						(221)						(137)						(167)						(117)						(388)						(254)
Balance at December 31, 2021						1,226						800						402						302						1,628						1,102
Incurred activity						87						55						125						77						212						132			(1)
Paid activity						(215)						(152)						(115)						(69)						(330)						(221)
Balance at December 31, 2022						$	1,098					$	703					$	412					$	310					$	1,510					$	1,013

(1) Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below).

The A&E net loss reserves including allocated loss expense reserves and valuation allowance for uncollectible reinsurance at December 31, 2022 and 2021, shown in the table above is comprised of:

			December 31
(in millions of U.S. dollars)			2022						2021
Brandywine operations			$	602					$	646
Westchester Specialty			98						100
Chubb Corp			266						286
Other, mainly Overseas General Insurance			47						70
Total			$	1,013					$	1,102

Brandywine Run-off entities – The Restructuring Plan and uncertainties relating to Chubb's ultimate Brandywine exposure

In 1996, the Pennsylvania Insurance Commissioner approved a plan to restructure INA Financial Corporation and its subsidiaries (the Restructuring) which included the division of Insurance Company of North America (INA) into two separate corporations:

(1) An active insurance company that retained the INA name and continued to write P&C business; and

(2) An inactive run-off company, now called Century Indemnity Company (Century).

As a result of the division, predominantly all A&E and certain other liabilities of INA were ascribed to Century and extinguished, as a matter of Pennsylvania law, as liabilities of INA.

As part of the Restructuring, most A&E liabilities of various U.S. affiliates of INA were reinsured to Century. Century and certain other run-off companies having A&E and other liabilities were contributed to Brandywine Holdings.

The U.S.-based Chubb INA companies assumed two contractual obligations in respect of the Brandywine operations in connection with the Restructuring: a surplus maintenance obligation in the form of the excess of loss (XOL) agreement and a dividend retention fund obligation.

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XOL Agreement

In 1996, in connection with the Restructuring, a Chubb INA insurance subsidiary provided reinsurance coverage to Century in the amount of $800 million under an Aggregate Excess of Loss Reinsurance Agreement (XOL Agreement), triggerable if the statutory capital and surplus of Century falls below $25 million or if Century lacks liquid assets with which to pay claims as they become due.

Dividend Retention Fund

INA Financial Corporation established and funded a dividend retention fund (the Dividend Retention Fund) consisting of $50 million plus investment earnings. The full balance of the Dividend Retention Fund was contributed to Century as of December 31, 2002. Under the Restructuring Order, while any obligation to maintain the Dividend Retention Fund is in effect, to the extent dividends are paid by INA Holdings Corporation to its parent, INA Financial Corporation, and to the extent INA Financial Corporation then pays such dividends to INA Corporation, a portion of those dividends must be withheld to replenish the principal of the Dividend Retention Fund to $50 million. In 2022 and 2021, $75 million and $50 million, respectively, were withheld from such dividends and deposited into the Dividend Retention Fund as a result of dividends paid up to the INA Corporation. Pursuant to a 2011 amendment to the Restructuring Order, capital contributions from the Dividend Retention Fund to Century are not required until the XOL Agreement has less than $200 million of capacity remaining on an incurred basis for statutory reporting purposes. The amount of the required capital contribution shall be the lesser of the amount necessary to restore the XOL Agreement remaining capacity to $200 million or the Dividend Retention Fund balance. In 2022 and 2021, capital contributions of $106 million and $18 million were made, respectively, from the Dividend Retention Fund to Century. The Dividend Retention Fund may not be terminated without prior written approval from the Pennsylvania Insurance Commissioner.

In 2004, Chubb INA contributed $100 million to Century in exchange for a surplus note. After giving effect to the surplus note, contributions from the Dividend Retention Fund, results from operations and other items impacting statutory surplus, the statutory surplus of Century at December 31, 2022, was $25 million and $669 million in statutory-basis losses have been ceded to the XOL Agreement on an inception-to-date basis. The XOL Agreement statutory-basis remaining limit at December 31, 2022, is $131 million. Century reports the amount ceded under the XOL Agreement in accordance with statutory accounting principles, which differ from GAAP by, among other things, allowing Century to discount its liabilities, including certain asbestos related and environmental pollution liabilities and Century's reinsurance payable to active companies. For GAAP reporting purposes, intercompany reinsurance recoverables related to the XOL are eliminated upon consolidation.

While Chubb believes it has no legal obligation to fund Century losses above the XOL limit of coverage, Chubb's consolidated results would nevertheless continue to include any losses above the limit of coverage for so long as the Brandywine companies remain consolidated subsidiaries of Chubb.

Certain active Chubb companies are primarily liable for asbestos, environmental, and other exposures that they have reinsured to Century. Accordingly, if Century were to become insolvent and placed into rehabilitation or liquidation, some or all of the recoverables due to these active Chubb companies from Century could become uncollectible. At December 31, 2022 and 2021, the aggregate reinsurance recoverables owed by Century to certain active Chubb companies were approximately $1.9 billion and $1.8 billion, respectively, on an undiscounted basis. Chubb believes the active company intercompany reinsurance recoverables, which relate to direct liabilities payable over many years, are not impaired. At December 31, 2022 and 2021, Century's carried gross reserves (including reserves assumed from the active Chubb companies) were $2.1 billion and $2.2 billion, respectively. Changes in laws and regulations may have an adverse effect on Century's reserves; for example, the enactment of "reviver" statutes relating to claims of sexual molestation may give rise to additional claims that would have been barred by the statutes of limitations in effect at the time of the alleged molestation. Should Century's loss reserves experience adverse development, as a result of such changes or otherwise, in the future and should Century be placed into rehabilitation or liquidation, the reinsurance recoverables due from Century to certain active Chubb companies would be payable only after the payment in full of certain expenses and liabilities, including administrative expenses and direct policy liabilities. Thus, the intercompany reinsurance recoverables would be at risk to the extent of the shortage of assets remaining to pay these recoverables.

Westchester Specialty – impact of NICO contracts on Chubb’s run-off entities

As part of the Westchester Specialty acquisition in 1998, NICO provided a 75 percent pro-rata share of $1.0 billion of reinsurance protection on losses and loss adjustment expenses incurred on or before December 31, 1996, in excess of a retention of $721 million. At December 31, 2022, the remaining unused incurred limit under the Westchester NICO agreement was $347 million.

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8. Taxation

Under Swiss law through December 31, 2022, a resident company is subject to income tax at the federal, cantonal, and communal levels that is levied on net worldwide income. Income attributable to permanent establishments or real estate located abroad is excluded from the Swiss tax base. Furthermore, participation relief (i.e., tax relief) is granted to Chubb Limited at the federal, cantonal, and communal level for qualifying dividend income. Chubb Limited is subject to an annual cantonal and communal capital tax on the taxable equity of Chubb Limited in Switzerland.

Chubb has two Swiss operating subsidiaries, an insurance company, Chubb Insurance (Switzerland) Limited and a reinsurance company, Chubb Reinsurance (Switzerland) Limited. Both are subject to federal, cantonal, and communal income tax and to annual cantonal and communal capital tax.

Under current Bermuda law, Chubb Limited and its Bermuda subsidiaries are not required to pay any taxes on income or capital gains. If a Bermuda law were enacted that would impose taxes on income or capital gains, Chubb Limited and the Bermuda subsidiaries have received written assurances from the Minister of Finance in Bermuda that would exempt such companies from Bermudian taxation until March 2035.

Income from Chubb's operations at Lloyd's is subject to United Kingdom (U.K.) corporation income taxes. Lloyd's is required to pay U.S. income tax on U.S. connected income written by Lloyd's syndicates. Lloyd's has a closing agreement with the Internal Revenue Service (IRS) whereby the amount of tax due on this business is calculated by Lloyd's and remitted directly to the IRS. These amounts are then charged to the accounts of Chubb's Corporate Members in proportion to their participation in the relevant syndicates. Chubb's Corporate Members are subject to this arrangement but, as U.K. domiciled companies, will receive U.K. corporation tax credits for any U.S. income tax incurred up to the value of the equivalent U.K. corporation income tax charge on this income.

Chubb Group Holdings and its respective subsidiaries are subject to income taxes imposed by U.S. authorities and file a consolidated U.S. Federal income tax return. Should Chubb Group Holdings pay a dividend to Chubb Limited, withholding taxes would apply. Currently, however, no withholding taxes are accrued with respect to such un-remitted earnings as management has no intention of remitting these earnings. Similarly, no taxes have been provided on the un-remitted earnings of certain foreign subsidiaries (Chubb Life Insurance Hong Kong Limited and Chubb Life Insurance Korea Company Ltd.) as management has no intention of remitting these earnings. The cumulative amount that would be subject to withholding tax, if distributed, as well as the determination of the associated tax liability are not practicable to compute; however, such amount would be material.

Certain international operations of Chubb are also subject to income taxes imposed by the jurisdictions in which they operate.

Chubb's domestic operations are in Switzerland, the jurisdiction where we are legally organized, incorporated, and registered. As a result of Swiss federal tax reform which was effective in 2020, the tax rate changed from 7.83 percent to 21.2 percent. The tax rate further changed to 19.7 percent for 2021 and 2022 due to changes in Cantonal tax rates.

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The following table presents pre-tax income and the related provision for income taxes:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Pre-tax income:
Switzerland			$	234					$	349					$	350
Outside Switzerland			6,334						9,467						3,812
Total pre-tax income			$	6,568					$	9,816					$	4,162
Provision for income taxes
Current tax expense:
Switzerland			$	15					$	65					$	52
Outside Switzerland			1,066						1,294						876
Total current tax expense			1,081						1,359						928
Deferred tax expense (benefit):
Switzerland			34						(15)						2
Outside Switzerland			140						(67)						(301)
Total deferred tax expense (benefit)			174						(82)						(299)
Provision for income taxes			$	1,255					$	1,277					$	629

The most significant jurisdictions contributing to the overall taxation of Chubb are calculated using the following rates in 2022: Switzerland 19.7 percent, U.S. 21.0 percent, U.K. 19.0 percent, and Bermuda 0.0 percent.

The following table presents a reconciliation of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Expected tax provision at Swiss statutory tax rate			$	1,291					$	1,934					$	880
Permanent differences:
Taxes on earnings subject to rate other than Swiss statutory rate			(244)						(740)						(337)
Net withholding taxes			75						78						67
Other			133						5						19
Provision for income taxes			$	1,255					$	1,277					$	629

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The following table presents the components of net deferred tax assets and liabilities:

			December 31
(in millions of U.S. dollars)			2022						2021
Deferred tax assets:
Loss reserve discount			$	1,001					$	950
Unearned premiums reserve			417						544
Foreign tax credits			76						156
Loss carry-forwards			104						139
Investments			57						—
Unrealized depreciation on investments			1,387						—
Depreciation			126						190
Other			175						296
Total deferred tax assets			3,343						2,275
Valuation allowance			916						92
Deferred tax assets, net of valuation allowance			2,427						2,183
Deferred tax liabilities:
Deferred policy acquisition costs			276						679
Other intangible assets, including VOBA			2,194						1,268
Un-remitted foreign earnings			249						121
Investments			—						144
Unrealized appreciation on investments			—						360
Total deferred tax liabilities			2,719						2,572
Net deferred tax liabilities			$	(292)					$	(389)

The valuation allowance of $916 million and $92 million at December 31, 2022 and 2021, respectively, reflects management's assessment, based on available information, that it is more likely than not that a portion of the deferred tax assets will not be realized due to the inability of certain subsidiaries to generate sufficient taxable income. Adjustments to the valuation allowance are made when there is a change in management's assessment of the amount of deferred tax assets that are realizable.

For the year ended December 31, 2022, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $815 million necessary due to limitations on the utilization of these losses. As part of evaluating whether it was more likely than not that we could realize the tax benefit of these losses, we considered realized gains, carryback ability and available tax planning strategies.

At December 31, 2022, Chubb has net operating loss carry-forwards of $346 million which, if unused, will expire starting in 2023, and a foreign tax credit carry-forward in the amount of $76 million which, if unused, will expire starting in 2028.

The following table presents a reconciliation of the beginning and ending amount of gross unrecognized tax benefits:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021
Balance, beginning of year			$	64					$	76
Additions based on tax positions related to prior years			4						7
Reductions for settlements with taxing authorities			(1)						(19)
Balance, end of year			$	67					$	64

At December 31, 2022 and 2021, the gross unrecognized tax benefits of $67 million and $64 million, respectively, can be reduced by $21 million and $26 million, respectively, associated with foreign tax credits. The net amounts of $46 million and $38 million at December 31, 2022 and 2021, respectively, if recognized, would favorably affect the effective tax rate. It is reasonably possible that over the next twelve months, that the amount of unrecognized tax benefits may change further resulting

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from the re-evaluation of unrecognized tax benefits arising from examinations by taxing authorities and the lapses of statutes of limitations.

Chubb recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in Income tax expense in the Consolidated statements of operations. Tax-related interest expense and penalties reported in the Consolidated statements of operations were $4 million, $1 million, and $8 million at December 31, 2022, 2021, and 2020, respectively. Liabilities for tax-related interest and penalties in our Consolidated balance sheets were $18 million and $14 million at December 31, 2022 and 2021, respectively.

In March 2017, the IRS commenced its field examination of Chubb Group Holdings’ U.S. Federal income tax returns for 2014 and 2015 which is still ongoing. In July 2020, the IRS commenced its field examination of Chubb Group Holdings' U.S. Federal income tax returns for 2016, 2017 and 2018 which is also still ongoing. No material adjustments have been proposed by the IRS for any year under examination. As a multinational company, we also have examinations under way in non-US jurisdictions. With few exceptions, Chubb is no longer subject to income tax examinations for years prior to 2012.

The following table summarizes tax years open for examination by major income tax jurisdiction:

At December 31, 2022
Australia			2016			-			2022
Brazil			2016			-			2022
Canada			2012			-			2022
France			2021			-			2022
Germany			2016			-			2022
Italy			2019			-			2022
Korea (1)			2017			-			2022
Mexico			2016			-			2022
Spain			2012			-			2022
Switzerland			2018			-			2022
United Kingdom			2015			-			2022
United States			2014			-			2022

(1) Includes an examination for a pre-acquisition period subject to indemnification by Cigna Corp.

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9. Debt

			December 31						December 31
(in millions of U.S. dollars)			2022						2021						Early Redemption Option
Repurchase agreements (weighted average interest rate of 3.9% in 2022 and 0.2% in 2021)			$	1,419					$	1,406					None
Short-term debt
Chubb INA:
$1,000 million 2.875% senior notes due November 2022			$	—					$	999					Make-whole premium plus 20 bps
$475 million 2.7% senior notes due March 2023			475						—						Make-whole premium plus 10 bps
Total short-term debt			$	475					$	999
Long-term debt
Chubb INA:
$475 million 2.7% senior notes due March 2023			$	—					$	474					Make-whole premium plus 10 bps
$700 million 3.35% senior notes due May 2024			699						698						Make-whole premium plus 15 bps
€700 million 0.3% senior notes due December 2024			742						787						Make-whole premium plus 15 bps
$800 million 3.15% senior notes due March 2025			798						798						Make-whole premium plus 15 bps
$1,500 million 3.35% senior notes due May 2026			1,496						1,494						Make-whole premium plus 20 bps
€575 million 0.875% senior notes due June 2027			609						645						Make-whole premium plus 20 bps
€900 million 1.55% senior notes due March 2028			952						1,009						Make-whole premium plus 15 bps
$100 million 8.875% debentures due August 2029			100						100						None
€700 million 0.875% senior notes due December 2029			740						785						Make-whole premium plus 20 bps
$1,000 million 1.375% senior notes due September 2030			993						992						Make-whole premium plus 15 bps
€575 million 1.4% senior notes due June 2031			606						642						Make-whole premium plus 25 bps
$200 million 6.8% debentures due November 2031			234						238						Make-whole premium plus 25 bps
$300 million 6.7% senior notes due May 2036			298						298						Make-whole premium plus 20 bps
$800 million 6.0% senior notes due May 2037			927						936						Make-whole premium plus 20 bps
€900 million 2.5% senior notes due March 2038			949						1,007						Make-whole premium plus 25 bps
$600 million 6.5% senior notes due May 2038			726						735						Make-whole premium plus 30 bps
$475 million 4.15% senior notes due March 2043			471						470						Make-whole premium plus 15 bps
$1,500 million 4.35% senior notes due November 2045			1,485						1,485						Make-whole premium plus 25 bps
$600 million 2.85% senior notes due December 2051			593						593						Make-whole premium plus 15 bps
$1,000 million 3.05% senior notes due December 2061			984						983						Make-whole premium plus 20 bps
Total long-term debt			$	14,402					$	15,169
Trust preferred securities
Chubb INA capital securities due April 2030			$	308					$	308					Redemption prices(1)

(1)Redemption prices are equal to accrued and unpaid interest to the redemption date plus the greater of (i) 100 percent of the principal amount thereof, or (ii) sum of present value of scheduled payments of principal and interest on the capital securities from the redemption date to April 1, 2030.

a) Repurchase agreements

Chubb has executed repurchase agreements with certain counterparties under which Chubb agreed to sell securities and repurchase them at a future date for a predetermined price.

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b) Short-term debt

Short-term debt comprises the current maturities of our long-term debt instruments described below. These short-term debt instruments were reclassified from long-term debt and are reflected in the table above.

c) Long-term debt

With the exception of the $100 million of 8.875 percent debentures due August 2029, which do not have an early redemption option, the senior notes in the table above are redeemable at any time at Chubb INA's option subject to a “make-whole” premium plus additional basis points as defined in the table above. A "make-whole" premium is the present value of the remaining principal and interest discounted at the applicable U.S. Treasury rate. These debt securities are also redeemable at par plus accrued and unpaid interest in the event of certain changes in tax law.

The senior notes and debentures do not have the benefit of any sinking fund and are guaranteed on a senior basis by Chubb Limited and they rank equally with all of Chubb's other senior obligations. They also contain customary limitations on lien provisions as well as customary events of default provisions which, if breached, could result in the accelerated maturity of such senior debt.

d) Trust preferred securities

In March 2000, ACE Capital Trust II, a Delaware statutory business trust, publicly issued $300 million of 9.7 percent Capital Securities (the Capital Securities) due to mature in April 2030. At the same time, Chubb INA purchased $9.2 million of common securities of ACE Capital Trust II. The sole assets of ACE Capital Trust II consist of $309 million principal amount of 9.7 percent Junior Subordinated Deferrable Interest Debentures (the Subordinated Debentures) issued by Chubb INA due to mature in April 2030.

Distributions on the Capital Securities are payable semi-annually and may be deferred for up to ten consecutive semi-annual periods (but no later than April 1, 2030). Any deferred payments would accrue interest compounded semi-annually if Chubb INA defers interest on the Subordinated Debentures. Interest on the Subordinated Debentures is payable semi-annually. Chubb INA may defer such interest payments (but no later than April 1, 2030), with such deferred payments accruing interest compounded semi-annually. The Capital Securities and the ACE Capital Trust II Common Securities will be redeemed upon repayment of the Subordinated Debentures.

Chubb Limited has guaranteed, on a subordinated basis, Chubb INA's obligations under the Subordinated Debentures, and distributions and other payments due on the Capital Securities. These guarantees, when taken together with Chubb's obligations under expense agreements entered into with ACE Capital Trust II, provide a full and unconditional guarantee of amounts due on the Capital Securities.

10. Commitments, contingencies, and guarantees

a) Derivative instruments

Chubb maintains positions in derivative instruments such as futures, options, swaps, and foreign currency forward contracts for which the primary purposes are to manage duration and foreign currency exposure, yield enhancement, or to obtain an exposure to a particular financial market. Chubb also maintains positions in convertible securities that contain embedded derivatives. Investment derivative instruments and derivatives designated as hedges for accounting purposes are recorded in either Other assets (OA) or Accounts payable, accrued expenses, and other liabilities (AP); convertible bonds are recorded in Fixed maturities available for sale (FM AFS); and convertible equity securities are recorded in Equity securities (ES) in the Consolidated balance sheets. These are the most numerous and frequent derivative transactions. In addition, Chubb, from time to time, purchases to be announced mortgage-backed securities (TBAs) as part of its investing activities.

As a global company, Chubb entities transact business in multiple currencies. Our policy is to generally match assets, liabilities, and required capital for each individual jurisdiction in local currency, which would include the use of derivatives discussed below. Some of Chubb's derivatives satisfy hedge accounting requirements, as discussed below. We also consider economic hedging for planned cross border transactions.

Under reinsurance programs covering GLBs, Chubb assumes the risk of GLBs, principally GMIB, associated with variable annuity contracts. The GMIB risk is triggered if, at the time the contract holder elects to convert the accumulated account value to a periodic payment stream (annuitize), the accumulated account value is not sufficient to provide a guaranteed minimum level of monthly income. The GLB reinsurance product meets the definition of a derivative instrument and is classified within

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AP. Chubb also generally maintains positions in exchange-traded equity futures contracts on equity market indices to limit equity exposure in the GMDB and GLB book of business.

The following table presents the balance sheet locations, fair values of derivative instruments in an asset or (liability) position, and notional values/payment provisions of our derivative instruments:

									December 31, 2022																								December 31, 2021
			Consolidated Balance Sheet Location						Fair Value												Notional Value/ Payment Provision												Fair Value												Notional Value/ Payment Provision
						Derivative Asset						Derivative (Liability)												Derivative Asset						Derivative (Liability)
(in millions of U.S. dollars)
Investment and embedded derivatives not designated as hedging instruments:
Foreign currency forward contracts			OA / (AP)						$	64					$	(115)					$	4,134											$	25					$	(139)					$	6,182
Options/Futures contracts on notes and bonds			OA / (AP)						18						(24)						1,511												33						(27)						12,944
Convertible securities (1)			FM AFS / ES						30						—						37												11						—						12
									$	112					$	(139)					$	5,682											$	69					$	(166)					$	19,138
Other derivative instruments:
Futures contracts on equities (2)			OA / (AP)						$	33					$	—					$	939											$	—					$	(16)					$	905
Other			OA / (AP)						—						—						—												—						—						3
									$	33					$	—					$	939											$	—					$	(16)					$	908
GLB (3)			(AP)						$	—					$	(736)					$	1,979											$	—					$	(745)					$	1,432
Derivatives designated as hedging instruments:
Cross-currency swaps - fair value hedges			OA / (AP)						$	17					$	—					$	1,595											$	—					$	—					$	—
Cross-currency swaps - net investment hedges			OA / (AP)						—						(53)						1,604												—						—						—
									$	17					$	(53)					$	3,199											$	—					$	—					$	—

(1)Includes fair value of embedded derivatives.

(2)Related to GMDB and GLB book of business.

(3)Note that the payment provision related to GLB is the net amount at risk. The concept of a notional value does not apply to the GLB reinsurance contracts.

At December 31, 2022 and 2021, net derivative liabilities of $60 million and $123 million, respectively, included in the table above were subject to a master netting agreement. The remaining derivatives included in the table above were not subject to a master netting agreement.

b) Hedge accounting

We designate certain derivatives as fair value hedges and net investment hedges for accounting purposes to hedge for foreign currency exposure associated with portions of our euro denominated debt and the net investment in certain foreign subsidiaries, respectively. These derivatives comprise cross-currency swaps, which are agreements under which two counterparties exchange interest payments and principal denominated in different currencies at a future date.

(i) Cross-currency swaps - fair value hedges

In September 2022, Chubb entered into certain cross-currency swaps designated as fair value hedges. The objective of these cross-currency swaps is to hedge the foreign currency risk on €1.5 billion, or approximately $1.6 billion at December 31, 2022, of our euro denominated debt, by converting cash flows back into the U.S dollar.

These fair value hedges are carried at fair value. The hedges are expected to be highly effective, with gains or losses on the fair value hedges offsetting the foreign currency remeasurement on the hedged euro denominated senior notes within Net realized gains (losses). The remaining change in fair value is recorded in Other comprehensive income (OCI), with an immaterial amount recorded in interest expense.

For the year ended December 31, 2022, the fair value hedge was in a net gain position of $17 million, comprising $105 million of net realized gains, $5 million of interest expense, and the remaining change in fair value of $83 million pre-tax of other comprehensive loss recorded within OCI.

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(ii) Cross-currency swaps - net investment hedges

In September 2022, Chubb entered into certain cross-currency swaps designated as net investment hedges. The objective of these cross-currency swaps is to hedge the foreign currency exposure in the net investments of certain foreign subsidiaries by converting cash flows from U.S. dollar to the British pound sterling, Japanese yen, and Swiss franc. The hedged risk is designated as the foreign currency exposure arising between the functional currency of the foreign subsidiary and the functional currency of its parent entity.

These net investment hedges are carried at fair value, with changes in fair value recorded in Cumulative translation adjustments (CTA) within OCI, with an immaterial amount recorded to interest expense. The mark-to-market adjustments for foreign currency changes will remain until the underlying hedge subsidiary is deconsolidated or if hedge accounting is discontinued.

For the year ended December 31, 2022, the net investment hedges were in a loss position of $53 million, comprising $57 million pre-tax of cumulative translation losses recorded in OCI, and $4 million of interest income.

c) Derivative instruments not designated as hedges

Derivative instruments which are not designated as hedges are carried at fair value with changes in fair value recorded in Net realized gains (losses) in the Consolidated statements of operations. The following table presents net realized gains (losses) related to derivative instrument activity in the Consolidated statements of operations:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Investment and embedded derivative instruments:
Foreign currency forward contracts			$	(339)					$	(62)					$	65
All other futures contracts, options, and equities			297						(10)						16
Convertible securities (1)			(1)						—						—
Total investment and embedded derivative instruments			$	(43)					$	(72)					$	81
GLB and other derivative instruments:
GLB			$	(63)					$	316					$	(202)
Futures contracts on equities (2)			187						(202)						(108)
Other			(11)						(8)						1
Total GLB and other derivative instruments			$	113					$	106					$	(309)
			$	70					$	34					$	(228)

(1)Includes embedded derivatives.

(2)Related to GMDB and GLB book of business.

(i) Foreign currency exposure management

A foreign currency forward contract (forward) is an agreement between participants to exchange specific currencies at a future date. Chubb uses forwards to minimize the effect of fluctuating foreign currencies as discussed above.

(ii) Duration management and market exposure

Futures

Futures contracts give the holder the right and obligation to participate in market movements, determined by the index or underlying security on which the futures contract is based. Settlement is made daily in cash by an amount equal to the change in value of the futures contract times a multiplier that scales the size of the contract. Exchange-traded futures contracts on money market instruments, notes, and bonds are used in fixed maturity portfolios to more efficiently manage duration, as substitutes for ownership of the money market instruments, bonds, and notes without significantly increasing the risk in the portfolio. Investments in futures contracts may be made only to the extent that there are assets under management not otherwise committed.

Exchange-traded equity futures contracts are used to limit exposure to a severe equity market decline, which would cause an increase in expected claims and, therefore, an increase in future policy benefit reserves for GMDB and an increase in the fair value liability for GLB reinsurance business.

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Options

An option contract conveys to the holder the right, but not the obligation, to purchase or sell a specified amount or value of an underlying security at a fixed price. Option contracts are used in our investment portfolio as protection against unexpected shifts in interest rates, which would affect the duration of the fixed maturity portfolio. By using options in the portfolio, the overall interest rate sensitivity of the portfolio can be reduced. Option contracts may also be used as an alternative to futures contracts in the synthetic strategy as described above.

The price of an option is influenced by the underlying security, level of interest rates, expected volatility, time to expiration, and supply and demand.

The credit risk associated with the above derivative financial instruments relates to the potential for non-performance by counterparties. Although non-performance is not anticipated, in order to minimize the risk of loss, management monitors the creditworthiness of its counterparties and obtains collateral. The performance of exchange-traded instruments is guaranteed by the exchange on which they trade. For non-exchange-traded instruments, the counterparties are principally banks which must meet certain criteria according to our investment guidelines.

Other

Included within Other are derivatives intended to reduce potential losses which may arise from certain exposures in our insurance business. The economic benefit provided by these derivatives is similar to purchased reinsurance. For example, Chubb may, from time to time, enter into crop derivative contracts to protect underwriting results in the event of a significant decline in commodity prices.

(iii) Convertible security investments

A convertible security is a debt instrument or preferred stock that can be converted into a predetermined amount of the issuer’s equity. The convertible option is an embedded derivative within the host instruments which are classified in the investment portfolio as either available for sale or as an equity security. Chubb purchases convertible securities for their total return and not specifically for the conversion feature.

(iv) TBA

By acquiring TBAs, we make a commitment to purchase a future issuance of mortgage-backed securities. For the period between purchase of the TBAs and issuance of the underlying security, we account for our position as a derivative in the Consolidated Financial Statements. Chubb purchases TBAs, from time to time, both for their total return and for the flexibility they provide related to our mortgage-backed security strategy.

(v) GLB

Under the GLB program, as the assuming entity, Chubb is obligated to provide coverage until the expiration or maturity of the underlying deferred annuity contracts or the expiry of the reinsurance treaty. The GLB is accounted for as a derivative and is recorded at fair value. Fair value represents management’s estimate of an exit price and, thus, includes a risk margin. We may recognize a realized loss for other changes in fair value due to adverse changes in the capital markets (e.g., declining interest rates and/or declining U.S. and/or international equity markets) and changes in actual or estimated future policyholder behavior (e.g., increased annuitization or decreased lapse rates) although we expect the business to be profitable.

To mitigate adverse changes in the capital markets, we maintain positions in exchange-traded equity futures contracts, as noted under section "(ii) Futures" above. These futures increase in fair value when the S&P 500 index decreases (and decrease in fair value when the S&P 500 index increases). The net impact of gains or losses related to changes in fair value of the GLB liability and the exchange-traded equity futures are included in Net realized gains (losses).

d) Securities lending and secured borrowings

Chubb participates in a securities lending program operated by a third-party banking institution whereby certain assets are loaned to qualified borrowers and from which we earn an incremental return. The securities lending collateral can only be drawn down by Chubb in the event that the institution borrowing the securities is in default under the lending agreement. An indemnification agreement with the lending agent protects us in the event a borrower becomes insolvent or fails to return any of the securities on loan. The collateral is recorded in Securities lending collateral and the liability is recorded in Securities lending payable in the Consolidated balance sheets.

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The following table presents the carrying value of collateral held under securities lending agreements by investment category and remaining contractual maturity of the underlying agreements:

			Remaining contractual maturity
			December 31, 2022																					December 31, 2021
(in millions of U.S. dollars)			Overnight and Continuous
Collateral held under securities lending agreements:
Cash			$	820																				$	931
U.S. Treasury / Agency			72																					128
Non-U.S.			604																					752
Corporate and asset-backed securities			27																					12
Mortgage-backed securities			—																					1
Equity securities			—																					7
			$	1,523																				$	1,831
Gross amount of recognized liability for securities lending payable			$	1,523																				$	1,831

At December 31, 2022 and 2021, our repurchase agreement obligations of $1,419 million and $1,406 million, respectively, were fully collateralized. In contrast to securities lending programs, the use of cash received is not restricted for the repurchase obligations. The fair value of the underlying securities sold remains in Fixed maturities available for sale, and the repurchase agreement obligation is recorded in Repurchase agreements in the Consolidated balance sheets.

The following table presents the carrying value of collateral pledged under repurchase agreements by investment category and remaining contractual maturity of the underlying agreements:

									Remaining contractual maturity
			December 31, 2022																					December 31, 2021
			Up to 30 Days						30-90 Days																					30-90 Days						Greater than 90 Days						Total
(in millions of U.S. dollars)									Total
Collateral pledged under repurchase agreements:
Cash			$	12					$	—											$	12								$	—					$	29					$	29
U.S. Treasury / Agency			—						101												101									103						—						103
Mortgage-backed securities			921						493												1,414									—						1,288						1,288
			$	933					$	594											$	1,527								$	103					$	1,317					$	1,420
Gross amount of recognized liabilities for repurchase agreements																					$	1,419																				$	1,406
Difference (1)																					$	108																				$	14

(1)Per the repurchase agreements, the amount of collateral posted is required to exceed the amount of gross liability.

Potential risks exist in our secured borrowing transactions due to market conditions and counterparty exposure. With collateral that we pledge, there is a risk that the collateral may not be returned at the expiration of the agreement. If the counterparty fails to return the collateral, Chubb will have free use of the borrowed funds until our collateral is returned. In addition, we may encounter the risk that Chubb may not be able to renew outstanding borrowings with a new term or with an existing counterparty due to market conditions including a decrease in demand as well as more restrictive terms from banks due to increased regulatory and capital constraints. Should this condition occur, Chubb may seek alternative borrowing sources or reduce borrowings. Additionally, increased margins and collateral requirements due to market conditions would increase our restricted assets as we are required to provide additional collateral to support the transaction.

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e) Concentrations of credit risk

Our investment portfolio is managed following prudent standards of diversification. Specific provisions limit the allowable holdings of a single issue and issuer. We believe that there are no significant concentrations of credit risk associated with our investments. Our three largest corporate exposures by issuer at December 31, 2022, were Bank of America Corp, JP Morgan Chase & Co., and Morgan Stanley. Our largest exposure by industry at December 31, 2022, was financial services.

We market our insurance and reinsurance worldwide primarily through insurance and reinsurance brokers. We assume a degree of credit risk associated with brokers with whom we transact business. Approximately 11 percent of our gross premiums written were generated from or placed by Marsh & McLennan Companies, Inc., for the year ended December 31, 2022, compared to approximately 12 percent for the years ended December 31, 2021 and 2020. This entity is a large, well-established company, and there are no indications that it is financially troubled at December 31, 2022. No other broker or one insured accounted for more than 10 percent of our gross premiums written for these years.

f) Fixed maturities

At December 31, 2022 and 2021, commitments to purchase fixed income securities over the next several years were $770 million and $771 million, respectively.

g) Other investments

At December 31, 2022, included in Other investments in the Consolidated balance sheet are investments in limited partnerships and partially-owned investment companies with a carrying value of $12.0 billion. In connection with these investments, we have commitments that may require funding of up to $7.4 billion over the next several years. At December 31, 2021, these investments had a carrying value of $9.8 billion with commitments that may have required funding of up to $7.2 billion.

h) Letters of credit

On October 6, 2022, Chubb entered into a new group syndicated credit facility through 2027, with capacity of $3.0 billion. This facility consolidated our three existing syndicated facilities with capacity of $2.7 billion.

Overall, we have access to capital markets and to credit facilities with letter of credit capacity of $4.0 billion, $3.0 billion of which can be used for revolving credit. Our existing credit facilities have remaining terms expiring through October 2027. At December 31, 2022, our LOC usage was $1.4 billion.

i) Legal proceedings

Our insurance subsidiaries are subject to claims litigation involving disputed interpretations of policy coverages and, in some jurisdictions, direct actions by allegedly-injured persons seeking damages from policyholders. These lawsuits, involving claims on policies issued by our subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in our loss and loss expense reserves. In addition to claims litigation, we are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, or disputes arising from our business ventures. In the opinion of management, our ultimate liability for these matters could be, but we believe is not likely to be, material to our consolidated financial condition and results of operations.

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j) Lease commitments

At December 31, 2022 and 2021, the right-of-use asset was $607 million and $445 million, respectively, recorded within Other assets, and the lease liability was $633 million and $484 million, respectively, recorded within Accounts payable, accrued expenses, and other liabilities on the Consolidated balance sheets. These leases consist principally of real estate operating leases that are amortized on a straight-line basis over the term of the lease, which expire at various dates. As of December 31, 2022, the weighted average remaining lease term and weighted average discount rate for the operating leases was 7.8 years and 3.5 percent, respectively. Rent expense was $161 million, $149 million, and $152 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Future minimum lease payments under the operating leases are expected to be as follows:

For the years ending December 31
(in millions of U.S. dollars)
Undiscounted cash flows:
2023			$	160
2024			123
2025			87
2026			73
2027			50
Thereafter			261
Total undiscounted lease payments			$	754
Less: Present value adjustment			121
Net lease liabilities reported as of December 31, 2022			$	633

As of December 31, 2022, we entered into leases for office space that are not yet recorded on our Consolidated balance sheets and are not included in the total obligations referenced above. The leases are expected to commence in 2023 and 2025 with initial terms of approximately 21 years and 23 years, respectively. Total cash requirements are estimated at approximately $1.2 billion over the terms of these two leases.

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11. Shareholders’ equity

a) Common Shares

All of Chubb’s Common Shares are authorized under Swiss corporate law. Though the par value of Common Shares is stated in Swiss francs, Chubb continues to use U.S. dollars as its reporting currency for preparing the Consolidated Financial Statements. Under Swiss corporate law, we are generally prohibited from issuing Common Shares below their par value. If there were a need to raise common equity at a time when the trading price of Chubb's Common Shares is below par value, we would need in advance to obtain shareholder approval to decrease the par value of the Common Shares.

Dividend approval

At our May 2022 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.32 per share, expected to be paid in four quarterly installments of $0.83 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment. The Board of Directors (Board) will determine the record and payment dates at which the annual dividend may be paid until the date of the 2023 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The first three quarterly installments each of $0.83 per share, have been distributed by the Board as expected.

At our May 2021 and 2020 annual general meetings, our shareholders approved annual dividends for the following year of up to $3.20 per share and $3.12 per share, respectively, which were paid in four quarterly installments of $0.80 per share and $0.78 per share, respectively, at dates determined by the Board after the annual general meeting by way of a distribution from capital contribution reserves, transferred to free reserves for payment.

Dividend distributions

Under Swiss corporate law, dividends must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. We issue dividends without subjecting them to withholding tax by way of distributions from capital contribution reserves and payment out of free reserves.

The following table presents dividend distributions per Common Share in Swiss francs (CHF) and U.S. dollars (USD):

			Year Ended December 31
									2022												2021												2020
			CHF						USD						CHF						USD						CHF						USD
Total dividend distributions per common share			3.11						$	3.29					2.88						$	3.18					2.89						$	3.09

b) Shares issued, outstanding, authorized, and conditional

			Year Ended December 31
			2022						2021						2020
Common Shares authorized and issued, beginning of year			474,021,114						477,605,264						479,783,864
Cancellation of treasury shares			(27,644,500)						(3,584,150)						(2,178,600)
Common Shares authorized and issued, end of year			446,376,614						474,021,114						477,605,264
Common Shares in treasury, beginning of year (at cost)			(47,448,502)						(26,872,639)						(27,812,297)
Net shares issued under employee share-based compensation plans			2,947,272						3,484,487						2,345,208
Shares repurchased			(14,925,028)						(27,644,500)						(3,584,150)
Cancellation of treasury shares			27,644,500						3,584,150						2,178,600
Common Shares in treasury, end of year (at cost)			(31,781,758)						(47,448,502)						(26,872,639)
Common Shares outstanding, end of year			414,594,856						426,572,612						450,732,625

Increases in Common Shares in treasury are due to open market repurchases of Common Shares, the surrender of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock, and the forfeiture of unvested restricted stock. Decreases in Common Shares in treasury are principally due to grants of restricted stock, exercises of stock options, purchases under the Employee Stock Purchase Plan (ESPP), and share cancellations. At our May 2022 annual general meeting, our shareholders approved the cancellation of 13,179,100 shares purchased under our share repurchase program during the last six months of 2021. The capital reduction by cancellation of shares was subject to publication requirements and

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a two-month waiting period in accordance with Swiss law and became effective on August 4, 2022. At the Chubb Limited Extraordinary General Meeting of Shareholders, held on November 3, 2021, shareholders approved the cancellation of 14,465,400 shares repurchased under our share repurchase program during the first six months of 2021. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on January 17, 2022.

At our May 2021 annual general meeting, our shareholders approved the cancellation of 3,584,150 shares purchased under our share repurchase program during 2020. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on August 4, 2021. At our May 2020 annual general meeting, our shareholders approved the cancellation of 2,178,600 shares purchased under our share repurchase program during the period beginning September 23, 2019 and ending December 31, 2019. The capital reduction by cancellation of shares was subject to publication requirements and a two-month waiting period in accordance with Swiss law and became effective on August 3, 2020.

Authorized share capital for general purposes under Swiss law

In accordance with Swiss law, the Board has shareholder-approved authority as set forth in the Articles of Association to increase Chubb's share capital from time to time until May 19, 2024, by the issuance for general purposes of up to 200,000,000 fully paid up Common Shares, with a par value equal to the par value of Chubb's Common Shares as set forth in the Articles of Association at the time of any such issuance. Any such increases would be subject to Swiss rules and procedure.

Conditional share capital for bonds and similar debt instruments

Chubb's share capital may be increased through the issuance of a maximum of 33,000,000 fully paid up Common Shares (with a par value of CHF 24.15 as of December 31, 2022) through the exercise of conversion and/or option or warrant rights granted in connection with bonds, notes, or similar instruments, issued or to be issued by Chubb, including convertible debt instruments.

Conditional share capital for employee benefit plans

Chubb's share capital may be increased through the issuance of a maximum of 25,410,929 fully paid up Common Shares (with a par value of CHF 24.15 as of December 31, 2022) in connection with the exercise of option rights granted to any employee of Chubb, director or other person providing services to Chubb.

c) Chubb Limited securities repurchases

From time to time, we repurchase shares as part of our capital management program and to partially offset potential dilution from the exercise of stock options and the granting of restricted stock under share-based compensation plans. The Board has authorized share repurchase programs as follows:

• $1.5 billion of Chubb Common Shares from November 21, 2019 through December 31, 2020;

• $1.5 billion of Chubb Common Shares from November 19, 2020 through December 31, 2021;

• $1.0 billion increase to the November 2020 share repurchase program to a total of $2.5 billion in February 2021, effective through December 31, 2021;

• One-time incremental share repurchase program of $5.0 billion of Chubb Common Shares from July 19, 2021 through June 30, 2022; and

• $2.5 billion of Chubb Common Shares from May 19, 2022 through June 30, 2023.

Share repurchases may be in the open market, in privately negotiated transactions, block trades, accelerated repurchases and through option or other forward transactions. The following table presents repurchases of Chubb's Common Shares conducted in a series of open market transactions under the Board authorizations:

			Year Ended December 31																		January 1, 2023 through
(in millions of U.S. dollars, except share data)			2022						2021						2020						February 23, 2023
Number of shares repurchased			14,925,028						27,644,500						3,584,150						1,633,300
Cost of shares repurchased			$	3,014					$	4,861					$	516					$	347

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d) General restrictions

The holders of the Common Shares are entitled to receive dividends as approved by the shareholders. Holders of Common Shares are allowed one vote per share provided that, if the controlled shares of any shareholder constitute ten percent or more of the outstanding Common Shares of Chubb, only a fraction of the vote will be allowed so as not to exceed ten percent in aggregate. Entry of acquirers of Common Shares as shareholders with voting rights in the share register may be refused if it would confer voting rights with respect to ten percent or more of the registered share capital recorded in the commercial register.

e) Accumulated other comprehensive income (loss)

The following table presents changes in accumulated other comprehensive income (loss):

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Accumulated other comprehensive income (loss) (AOCI)
Net unrealized appreciation (depreciation) on investments
Balance – beginning of year, net of tax			$	2,256					$	4,673					$	2,543
Change in year, before reclassification from AOCI (before tax)			(11,627)						(2,935)						2,311
Amounts reclassified from AOCI (before tax)			1,049						(3)						281
Change in year, before tax			(10,578)						(2,938)						2,592
Income tax (expense) benefit			1,043						521						(462)
Balance – end of year, net of tax			(7,279)						2,256						4,673
Cumulative foreign currency translation adjustment
Balance – beginning of year, net of tax			(2,146)						(1,637)						(1,939)
Change in year, before reclassification from AOCI (before tax)			(982)						(530)						306
Amounts reclassified from AOCI (before tax)			(4)						—						—
Change in year, before tax			(986)						(530)						306
Income tax (expense) benefit			59						21						(4)
Balance – end of year, net of tax			(3,073)						(2,146)						(1,637)
Fair value hedging instruments
Balance – beginning of year, net of tax			—						—						—
Change in year, before reclassification from AOCI (before tax)			17						—						—
Amounts reclassified from AOCI (before tax)			(100)						—						—
Change in year, before tax			(83)						—						—
Income tax benefit			17						—						—
Balance – end of year, net of tax			(66)						—						—
Postretirement benefit liability adjustment
Balance – beginning of year, net of tax			240						(167)						15
Change in year, before tax			(17)						522						(232)
Income tax (expense) benefit			2						(115)						50
Balance – end of year, net of tax			225						240						(167)
Accumulated other comprehensive income (loss)			$	(10,193)					$	350					$	2,869

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Chubb Limited and Subsidiaries

The following table presents reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations:

																		Consolidated Statement of Operations Location
			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Fixed maturities available for sale			$	(1,049)					$	3					$	(281)		Net realized gains (losses)
Income tax benefit			170						6						36			Income tax expense
			$	(879)					$	9					$	(245)		Net income
Cumulative foreign currency translation adjustment
Cross-currency swaps			$	4					$	—					$	—		Interest Expense
Income tax expense			(1)						—						—			Income tax expense
			$	3					$	—					$	—		Net income
Net gains (losses) of fair value hedging instruments
Cross-currency swaps			$	105					$	—					$	—		Net realized gains (losses)
Cross-currency swaps			(5)						—						—			Interest Expense
Income tax expense			(21)						—						—			Income tax expense
			$	79					$	—					$	—		Net income
Total amounts reclassified from AOCI			$	(797)					$	9					$	(245)

12. Share-based compensation

Chubb has share-based compensation plans which currently provide the Board the ability to grant awards of stock options, restricted stock, and restricted stock units to its employees and members of the Board.

In May 2021, our shareholders approved the Chubb Limited 2016 Long-Term Incentive Plan, as amended and restated (the Amended 2016 LTIP). Under the Amended 2016 LTIP, Common Shares of Chubb are authorized to be issued pursuant to awards, including stock options, stock appreciation rights, performance shares, performance units, restricted stock, and restricted stock units.

Chubb principally issues restricted stock grants and stock options on a graded vesting schedule, with equal percentages of the award subject to vesting over a number of years (typically three or four). Chubb recognizes compensation cost for vesting of restricted stock and stock option grants with only service conditions on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award were, in-substance, multiple awards. We incorporate an estimate of future forfeitures in determining compensation cost for both grants of restricted stock and stock options.

In addition, Chubb grants performance-based restricted stock to certain executives that vest based on certain performance criteria as compared to a defined group of peer companies. Performance-based stock awards comprise target awards and premium awards that cliff vest at the end of a 3-year performance period based on both our tangible book value (shareholders' equity less goodwill and intangible assets, net of tax) per share growth and P&C combined ratio compared to our peer group. Premium awards are subject to an additional vesting provision based on total shareholder return (TSR) compared to our peer group. Shares representing target awards and premium awards are issued when the awards are approved and are subject to forfeiture if applicable performance criteria are not met at the end of the 3-year performance period. Prior to January 2017, performance-based restricted stock awards had a 4-year vesting period with the potential to vest as to a portion each year, and excluded the P&C combined ratio and TSR additional vesting criteria.

Under the Amended 2016 LTIP, 32,900,000 Common Shares are authorized to be issued (which includes all shares available for delivery since the establishment of the Chubb Limited 2016 Long-Term Incentive Plan in 2016). This is in addition to any shares subject to awards outstanding under the ACE Limited 2004 Long-Term Incentive Plan (2004 LTIP) immediately prior to the effective date of the Amended 2016 LTIP that are forfeited, expired or canceled after such effective date without delivery of shares (or which result in forfeiture of shares back to Chubb). At December 31, 2022, a total of 15,223,940 shares remain

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Chubb Limited and Subsidiaries

available for future issuance under the Amended 2016 LTIP, which includes shares forfeited, expired or canceled relating to grants under the 2004 LTIP.

Under the Employee Stock Purchase Plan (ESPP), 6,500,000 shares are authorized to be issued. At December 31, 2022, a total of 815,172 shares remain available for issuance under the ESPP.

Chubb generally issues Common Shares for the exercise of stock options, restricted stock, and purchases under the ESPP from Common Shares in treasury.

The following table presents pre-tax and after-tax share-based compensation expense:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Stock options and shares issued under ESPP:
Pre-tax			$	60					$	55					$	45
After-tax (1)			$	38					$	36					$	38
Restricted stock:
Pre-tax			$	230					$	210					$	210
After-tax (1)			$	179					$	164					$	164

(1)The windfall tax benefit recorded to Income tax expense in the Consolidated statement of operations was $29 million, $19 million, and $10 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Unrecognized compensation expense related to the unvested portion of Chubb's employee share-based awards of restricted stock, restricted stock units, and stock options was $313 million at December 31, 2022 and is expected to be recognized over a weighted-average period of approximately 1.4 years.

Stock options

Both incentive and non-qualified stock options are principally granted at an option price per share equal to the grant date fair value of Chubb's Common Shares. Stock options are generally granted with a 3-year vesting period and a 10-year term. Stock options vest in equal annual installments over the respective vesting period, which is also the requisite service period.

Chubb's 2022 share-based compensation expense includes a portion of the cost related to the 2019 through 2022 stock option grants. Stock option fair value was estimated on the grant date using the Black-Scholes option-pricing model that uses the weighted-average assumptions noted below:

			Year Ended December 31
			2022						2021						2020
Dividend yield			1.7		%				1.9		%				2.1		%
Expected volatility			20.1		%				26.0		%				18.0		%
Risk-free interest rate			1.9		%				1.0		%				1.2		%
Expected life			5.8 years						5.8 years						5.7 years

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life (estimated period of time from grant to exercise date) is estimated using the historical exercise behavior of employees. The expected volatility is calculated as a blend of (a) historical volatility based on daily closing prices over a period equal to the expected life assumption and (b) implied volatility derived from Chubb's publicly traded options.

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The following table presents a roll-forward of Chubb's stock options:

(Intrinsic Value in millions of U.S. dollars)			Number of Options						Weighted-Average Exercise Price						Weighted-Average Fair Value						Total Intrinsic Value
Options outstanding, December 31, 2019			10,885,257						$	116.79
Granted			1,958,279						$	150.10					$	19.89
Exercised			(1,158,633)						$	86.90											$	76
Forfeited and expired			(206,720)						$	138.77
Options outstanding, December 31, 2020			11,478,183						$	125.09
Granted			1,805,234						$	164.89					$	33.05
Exercised			(2,284,795)						$	112.12											$	140
Forfeited and expired			(236,135)						$	150.16
Options outstanding, December 31, 2021			10,762,487						$	133.94
Granted			1,731,904						$	198.36					$	35.46
Exercised			(1,878,147)						$	117.83											$	163
Forfeited and expired			(205,966)						$	171.45
Options outstanding, December 31, 2022			10,410,278						$	146.81											$	768
Options exercisable, December 31, 2022			7,134,817						$	131.90											$	633

The weighted-average remaining contractual term was 5.8 years for stock options outstanding and 4.6 years for stock options exercisable at December 31, 2022. Cash received from the exercise of stock options for the year ended December 31, 2022 was $216 million.

Restricted stock and restricted stock units

Grants of restricted stock and restricted stock units awarded under the Amended 2016 LTIP typically have a 4-year vesting period, subject to vesting as to one-quarter of the award each anniversary of grant. Restricted stock and restricted stock units are principally granted at market close price on the day of grant. Each restricted stock unit represents our obligation to deliver to the holder one Common Share upon vesting.

Chubb also grants restricted stock awards to non-management directors which vest at the following year's annual general meeting.

Chubb's 2022 share-based compensation expense includes a portion of the cost related to the restricted stock granted in the years 2018 through 2022.

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The following table presents a roll-forward of our restricted stock awards. Included in the roll-forward below are 13,440 restricted stock awards, 15,586 restricted stock awards, and 27,679 restricted stock awards that were granted to non-management directors during the years ended December 31, 2022, 2021, and 2020, respectively:

			Service-based Restricted Stock Awards and Restricted Stock Units												Performance-based Restricted Stock Awards and Restricted Stock Units
			Number of Shares						Weighted-Average Grant-Date Fair Value						Number of Shares						Weighted-Average Grant-Date Fair Value
Unvested restricted stock, December 31, 2019			3,294,010						$	136.20					876,212						$	131.16
Granted			1,425,667						$	148.56					186,291						$	151.14
Vested			(1,304,308)						$	134.02					(490,185)						$	125.66
Forfeited			(152,074)						$	140.72					—						$	—
Unvested restricted stock, December 31, 2020			3,263,295						$	142.32					572,318						$	142.38
Granted			1,288,042						$	165.32					294,315						$	164.75
Vested			(1,283,185)						$	140.62					(169,442)						$	143.07
Forfeited			(216,341)						$	150.19					—						$	—
Unvested restricted stock, December 31, 2021			3,051,811						$	152.19					697,191						$	151.74
Granted			1,193,016						$	199.18					296,944						$	199.09
Vested			(1,191,452)						$	148.18					(199,343)						$	133.90
Forfeited			(199,505)						$	168.12					—						$	—
Unvested restricted stock, December 31, 2022			2,853,870						$	172.39					794,792						$	173.83

Prior to 2009, legacy ACE granted restricted stock units with a 1-year vesting period to non-management directors. Delivery of Common Shares on account of these restricted stock units to non-management directors is deferred until after the date of the non-management directors' termination from the Board. Legacy Chubb Corp historically allowed directors and certain key employees of Chubb Corp and its subsidiaries to defer a portion of their compensation earned with respect to services performed in the form of deferred stock units. In addition, legacy Chubb Corp provided supplemental retirement benefits for certain employees through its Defined Contribution Excess Benefit Plan in the form of deferred shares of stock. The minimum vesting period under these legacy Chubb Corp deferred plans was 1-year and the maximum was 3-years. Employees and directors had the option to elect to receive their awards at a future specified date or upon their termination of service with Chubb. At December 31, 2022, there were 136,216 deferred restricted stock units.

ESPP

The ESPP gives participating employees the right to purchase Common Shares through payroll deductions during consecutive subscription periods at a purchase price of 85 percent of the fair value of a Common Share on the exercise date (Purchase Price). Annual purchases by participants are limited to the number of whole shares that can be purchased by an amount equal to ten percent of the participant's compensation or $25,000, whichever is less. The ESPP has two six-month subscription periods each year, the first of which runs between January 1 and June 30 and the second of which runs between July 1 and December 31. The amounts collected from participants during a subscription period are used on the exercise date to purchase full shares of Common Shares. An exercise date is generally the last trading day of a subscription period. The number of shares purchased is equal to the total amount, at the exercise date, collected from the participants through payroll deductions for that subscription period, divided by the Purchase Price, rounded down to the next full share. Participants may withdraw from an offering before the exercise date and obtain a refund of amounts withheld through payroll deductions. Pursuant to the provisions of the ESPP, during the years ended December 31, 2022, 2021, and 2020, employees paid $48 million, $47 million, and $45 million to purchase 271,650 shares, 315,405 shares, and 383,751 shares, respectively.

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13. Postretirement benefits

Chubb provides postretirement benefits to eligible employees and their dependents through various defined contribution plans sponsored by Chubb. In addition, for certain employees, Chubb sponsors other postretirement benefit plans, and prior to 2020, Chubb sponsored defined benefit pension plans.

Defined contribution plans (including 401(k))

Under these plans, employees' contributions may be supplemented by Chubb matching contributions based on the level of employee contribution. These contributions are invested at the election of each employee in one or more of several investment portfolios offered by a third-party investment advisor. Expenses for these plans totaled $230 million, $214 million, and $211 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Defined benefit pension plans

We maintain non-contributory defined benefit pension plans that cover certain employees located in the U.S., U.K., Canada, and various other statutorily required countries. We account for pension benefits using the accrual method. Benefits under these plans are based on employees' years of service and compensation during final years of service. All underlying plans are subject to periodic actuarial valuations by qualified actuarial firms using actuarial models to calculate the expense and liability for each plan. We use December 31 as the measurement date for our defined benefit pension plans.

Under the Chubb Corp plans, prior to 2001, benefits were generally based on an employee’s years of service and average compensation during the last five years of employment. Effective January 1, 2001, the formula for providing pension benefits was changed from the final average pay formula to a cash balance formula. Under the cash balance formula, a notional account is established for each employee, which is credited semi-annually with an amount equal to a percentage of eligible compensation based on age and years of service plus interest based on the account balance. Chubb Corp employees hired prior to 2001 will generally be eligible to receive vested benefits based on the higher of the final average pay or cash balance formulas.

Other postretirement benefit plans

Our assumption of Chubb Corp's other postretirement benefit plans, principally healthcare and life insurance, covers retired employees, their beneficiaries, and covered dependents. Healthcare coverage is contributory. Retiree contributions vary based upon the retiree’s age, type of coverage, and years of service requirements. Life insurance coverage is non-contributory. Chubb funds a portion of the healthcare benefits obligation where such funding can be accomplished on a tax-effective basis. Benefits are paid as covered expenses are incurred. We use December 31 as the measurement date for our postretirement benefit plans.

Amendments to U.S. qualified and excess pension plans and U.S. retiree healthcare plan

In 2016, we harmonized and amended several of our U.S. retirement programs to create a unified retirement savings program. In 2020, we transitioned from a traditional defined benefit pension program that had been in effect for certain employees to a defined contribution program. Additionally, after 2025, we plan to eliminate a subsidized U.S. retiree healthcare and life insurance plan that is currently in place for certain employees. Both amendments required a remeasurement of the plan assets and benefit obligations with updated assumptions, including discount rates and the expected return on assets. The amendment of the retiree healthcare plan resulted in a reduction in the obligation of $383 million, of which $410 million was amortized as a reduction to expense as it relates to benefits already accrued. As of June 2021, the amendment of the retiree healthcare plan was fully amortized. For the years ended December 31, 2021 and 2020, $26 million and $79 million, respectively, were amortized as a reduction to expense.

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Obligations and funded status

The funded status of the pension and other postretirement benefit plans as well as the amounts recognized in the Consolidated balance sheets and Accumulated other comprehensive income (loss) at December 31, 2022 and 2021 was as follows:

			Pension Benefit Plans																								Other Postretirement Benefit Plans
			2022												2021												2022						2021
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
(in millions of U.S. dollars)
Benefit obligation, beginning of year			$	3,732					$	1,122					$	3,967					$	1,199					$	62					$	86
Service cost			—						4						—						4						1						1
Interest cost			85						23						70						19						1						1
Actuarial loss (gain)			(890)						(391)						(161)						(47)						(4)						(10)
Benefits paid			(146)						(28)						(133)						(33)						(16)						(15)
Curtailments			—						—						—						—						—						—
Settlements			—						—						(11)						—						—						—
Foreign currency revaluation and other			—						(33)						—						(20)						(1)						(1)
Benefit obligation, end of year			$	2,781					$	697					$	3,732					$	1,122					$	43					$	62
Plan assets at fair value, beginning of year			$	4,151					$	1,318					$	3,739					$	1,284					$	119					$	120
Actual return on plan assets			(692)						(285)						543						83						(2)						(1)
Employer contributions			3						8						13						8						1						15
Benefits paid			(146)						(28)						(133)						(33)						(37)						(15)
Settlements			—						—						(11)						—						—						—
Foreign currency revaluation and other			—						(75)						—						(24)						—						—
Plan assets at fair value, end of year			$	3,316					$	938					$	4,151					$	1,318					$	81					$	119
Funded status at end of year			$	535					$	241					$	419					$	196					$	38					$	57
Amounts recognized in the Consolidated balance sheets:
Assets			$	601					$	290					$	492					$	214					$	56					$	77
Liabilities			(66)						(49)						(73)						(18)						(18)						(20)
Total			$	535					$	241					$	419					$	196					$	38					$	57
Amounts recognized in Accumulated other comprehensive income (loss), pre-tax, not yet recognized in net periodic cost (benefit):
Net actuarial loss (gain)			$	(290)					$	7					$	(375)					$	73					$	(12)					$	(10)
Prior service cost (benefit)			—						8						—						9						(4)						(5)
Total			$	(290)					$	15					$	(375)					$	82					$	(16)					$	(15)

For the U.S. pension plans, the $890 million and $161 million actuarial gains experienced in 2022 and 2021, respectively, were principally driven by the increase in the discount rate from the respective prior year. In addition, the non-U.S. pension plans experienced an actuarial gain in 2022, which was principally driven by an increase in the discount rate from 2021.

The accumulated benefit obligation for the pension benefit plans was $3.4 billion and $4.8 billion at December 31, 2022 and 2021, respectively. The accumulated benefit obligation is the present value of pension benefits earned as of the measurement date based on employee service and compensation prior to that date. It differs from the pension (projected) benefit obligation in the table above in that the accumulated benefit obligation includes no assumptions regarding future compensation levels.

Chubb’s funding policy is to contribute amounts that meet regulatory requirements plus additional amounts determined based on actuarial valuations, market conditions and other factors. All benefit plans satisfy minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA).

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The following table provides information on pension plans where the benefit obligation is in excess of plan assets at December 31, 2022 and 2021:

			2022												2021
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
(in millions of U.S. dollars)
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation			$	66					$	87					$	73					$	418
Fair value of plan assets			—						38						—						400
Net funded status			$	(66)					$	(49)					$	(73)					$	(18)
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation			$	66					$	61					$	73					$	380
Fair value of plan assets			$	—					$	30					$	—					$	367

For other postretirement benefit plans with an accumulated benefit obligation in excess of plan assets, the accumulated benefit obligation was $18 million and $20 million at December 31, 2022 and 2021, respectively. These plans have no plan assets.

At December 31, 2022, we estimate that we will contribute $38 million to the pension plans and $1 million to the other postretirement benefits plan in 2023. The estimate is subject to change due to contribution decisions that are affected by various factors including our liquidity, market performance, and management discretion.

At December 31, 2022, our estimated expected future benefit payments are as follows:

			Pension Benefit Plans												Other Postretirement Benefit Plans
For the years ending December 31			U.S. Plans						Non-U.S. Plans
(in millions of U.S. dollars)
2023			$	186					$	40					$	14
2024			173						32						10
2025			178						34						6
2026			180						34						1
2027			186						36						1
2028-2032			967						216						5

The weighted-average assumptions used to determine the projected benefit obligation were as follows:

			Pension Benefit Plans
			U.S. Plans						Non-U.S. Plans						Other Postretirement Benefit Plans
December 31, 2022
Discount rate			5.22		%				5.27		%				5.83		%
Rate of compensation increase (1)			N/A						3.98		%				N/A
Interest crediting rate			4.32		%
December 31, 2021
Discount rate			2.75		%				2.23		%				2.06		%
Rate of compensation increase (1)			N/A						3.63		%				N/A
Interest crediting rate			4.10		%

(1) For the U.S. Pension Plans, benefit accruals were frozen as of December 31, 2019.

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Chubb Limited and Subsidiaries

The projected benefit cash flows were discounted using the corresponding spot rates derived from a yield curve, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The same process was applied to service cost cash flows to determine the discount rate associated with the service cost. In general, the discount rates for the non-U.S. plans were developed using a similar methodology by using country-specific yield curves.

The components of net pension and other postretirement benefit costs (benefits) reflected in Net income and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows:

			Pension Benefit Plans																																				Other Postretirement Benefit Plans
			U.S. Plans																		Non-U.S. Plans
Year Ended December 31			2022						2021						2020						2022						2021						2020						2022						2021						2020
(in millions of U.S. dollars)
Costs reflected in Net income, pre-tax:
Service cost			$	—					$	—					$	—					$	4					$	4					$	4					$	1					$	1					$	1
Non-service cost (benefit):
Interest cost			85						70						99						23						19						22						1						1						2
Expected return on plan assets			(283)						(255)						(224)						(43)						(44)						(41)						(1)						(1)						(5)
Amortization of net actuarial loss			—						—						—						—						4						2						—						—						—
Amortization of prior service cost			—						—						—						—						—						—						—						(26)						(83)
Curtailments			—						—						—						—						—						(1)						—						—						—
Settlements			—						3						3						—						—						—						—						—						—
Total non-service cost (benefit)			(198)						(182)						(122)						(20)						(21)						(18)						—						(26)						(86)
Net periodic benefit cost (benefit)			$	(198)					$	(182)					$	(122)					$	(16)					$	(17)					$	(14)					$	1					$	(25)					$	(85)
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss)
Net actuarial loss (gain)			$	85					$	(450)					$	102					$	(67)					$	(86)					$	56					$	(1)					$	(5)					$	(2)
Prior service cost (benefit)			—						—						—						—						—						—						—						—						—
Amortization of net actuarial loss			—						—						—						—						(4)						(2)						—						—						—
Amortization of prior service cost			—						—						—						—						—						(1)						—						26						83
Curtailments			—						—						—						—						—						(1)						—						—						—
Settlements			—						(3)						(3)						—						—						—						—						—						—
Total decrease (increase) in other comprehensive income (loss), pre-tax			$	85					$	(453)					$	99					$	(67)					$	(90)					$	52					$	(1)					$	21					$	81

The line items in which the service cost and non-service cost (benefit) components of net periodic benefit cost (benefit) are included in the Consolidated statements of operations were as follows:

						Pension Benefit Plans																		Other Postretirement Benefit Plans
Year Ended December 31						2022						2021						2020						2022						2021						2020
(in millions of U.S. dollars)
Service cost:
Losses and loss expenses						$	—					$	—					$	—					$	—					$	—					$	—
Administrative expenses						4						4						4						1						1						1
Total service cost						4						4						4						1						1						1
Non-service cost (benefit):
Losses and loss expenses						(20)						(18)						(12)						—						(3)						(9)
Administrative expenses						(198)						(185)						(128)						—						(23)						(77)
Total non-service cost (benefit)						(218)						(203)						(140)						—						(26)						(86)
Net periodic benefit cost (benefit)						$	(214)					$	(199)					$	(136)					$	1					$	(25)					$	(85)

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The weighted-average assumptions used to determine the net periodic pension and other postretirement benefit costs were as follows:

			Pension Benefit Plans
			U.S. Plans						Non-U.S. Plans						Other Postretirement Benefit Plans
Year Ended December 31
2022
Discount rate in effect for determining service cost			N/A						7.23		%				3.22		%
Discount rate in effect for determining interest cost			2.34		%				2.13		%				1.89		%
Rate of compensation increase			N/A						3.63		%				N/A
Expected long-term rate of return on plan assets			7.00		%				3.44		%				1.00		%
Interest crediting rate			4.10		%				N/A						N/A
2021
Discount rate in effect for determining service cost			N/A						5.58		%				2.53		%
Discount rate in effect for determining interest cost			1.81		%				1.57		%				1.23		%
Rate of compensation increase			N/A						3.24		%				N/A
Expected long-term rate of return on plan assets			7.00		%				3.37		%				1.00		%
Interest crediting rate			4.10		%				N/A						N/A
2020
Discount rate in effect for determining service cost			N/A						6.04		%				3.00		%
Discount rate in effect for determining interest cost			2.85		%				2.24		%				2.64		%
Rate of compensation increase			N/A						3.26		%				N/A
Expected long-term rate of return on plan assets			7.00		%				3.83		%				3.00		%
Interest crediting rate			4.10		%				N/A						N/A

The weighted-average healthcare cost trend rate assumptions used to measure the expected cost of healthcare benefits were as follows:

			U.S. Plans																		Non-U.S. Plans
			2022						2021						2020						2022						2021						2020
Healthcare cost trend rate			5.72		%				5.59		%				5.96		%				5.28		%				5.26		%				5.04		%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)			4.00		%				4.50		%				4.50		%				4.04		%				4.00		%				4.00		%
Year that the rate reaches the ultimate trend rate			2046						2038						2038						2040						2040						2040

Plan Assets

The long term objective of the pension plan is to provide sufficient funding to cover expected benefit obligations, while assuming a prudent level of portfolio risk. The assets of the pension plan are invested, either directly or through pooled funds, in a diversified portfolio of predominately equity securities and fixed maturities. We seek to obtain a rate of return that over time equals or exceeds the returns of the broad markets in which the plan assets are invested. The target allocation of U.S. plan assets is 55 percent to 65 percent invested in equity securities (including certain other investments measured using NAV), with the remainder primarily invested in fixed maturities. The target allocation of non-U.S. plans varies by country, but the plan assets are principally invested in fixed maturities. We rebalance our pension assets to the target allocation as market conditions permit. We determined the expected long term rate of return assumption for each asset class based on an analysis of the historical returns and the expectations for future returns. The expected long term rate of return for the portfolio is a weighted aggregation of the expected returns for each asset class.

In order to minimize risk, the Plan maintains a listing of permissible and prohibited investments. In addition, the Plan has certain concentration limits and investment quality requirements imposed on permissible investments options. Investment risk is measured and monitored on an ongoing basis.

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Chubb Limited and Subsidiaries

The following tables present the fair values of the pension plan assets, by valuation hierarchy. For additional information on how we classify these assets within the valuation hierarchy, refer to Note 4 to the Consolidated Financial Statements.

December 31, 2022			Pension Benefit Plans
(in millions of U.S. dollars)			Level 1						Level 2						Level 3						Total
U.S. Plans:
Short-term investments			$	42					$	—					$	—					$	42
U.S. Treasury / Agency			431						110						—						541
Non-U.S. and corporate bonds			—						627						—						627
Municipal			—						5						—						5
Equity securities			1,321						—						—						1,321
Investment derivative instruments			4						—						—						4
Total U.S. Plan assets (1)			$	1,798					$	742					$	—					$	2,540
Non-U.S. Plans:
Short-term investments			$	10					$	—					$	—					$	10
Non-U.S. and corporate bonds			—						454						—						454
Equity securities			107						146						4						257
Total Non-U.S. Plan assets (1)			$	117					$	600					$	4					$	721

(1)Excluded from the table above are $538 million and $201 million of other investments related to the U.S. Plans and Non-U.S. Plans, respectively, limited partnerships of $233 million and $16 million in U.S. Plans and Non-U.S. Plans, respectively, measured using NAV as a practical expedient, and $5 million in cash and accrued income related to the U.S. Plans.

December 31, 2021			Pension Benefit Plans
(in millions of U.S. dollars)			Level 1						Level 2						Level 3						Total
U.S. Plans:
Short-term investments			$	33					$	—					$	—					$	33
U.S. Treasury / Agency			380						92						—						472
Non-U.S. and corporate bonds			—						923						—						923
Municipal			—						4						—						4
Equity securities			1,871						—						1						1,872
Investment derivative instruments			3						—						—						3
Total U.S. Plan assets (1)			$	2,287					$	1,019					$	1					$	3,307
Non-U.S. Plans:
Short-term investments			$	5					$	—					$	—					$	5
Non-U.S. and corporate bonds			—						679						—						679
Equity securities			153						291						—						444
Total Non-U.S. Plan assets (1)			$	158					$	970					$	—					$	1,128

(1)Excluded from the table above are $542 million and $175 million of other investments related to the U.S. Plans and Non-U.S. Plans, respectively, limited partnerships of $175 million and $15 million in U.S. Plans and Non-U.S. Plans, respectively, measured using NAV as a practical expedient, and $127 million in cash and accrued income related to the U.S. Plans.

At December 31, 2022, the other postretirement benefit plan had $81 million of plan assets, of which $50 million of fixed maturities were categorized as Level 2, and $31 million of other investments were measured using NAV as a practical expedient. At December 31, 2021, the other postretirement benefit plan had $119 million of other investments measured using NAV as a practical expedient.

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14. Other income and expense

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Equity in net income of partially-owned entities (1)			$	16					$	2,433					$	1,019
Gains (losses) from fair value changes in separate account assets (2)			(42)						(8)						58
Federal excise and capital taxes			(21)						(19)						(22)
Other			(27)						(41)						(61)
Total			$	(74)					$	2,365					$	994

(1) Equity in net income (loss) of partially-owned entities includes mark-to-market gain (loss) on private equities where we own more than three percent, totaling $(219) million, $2,004 million, and $747 million for the years ended December 31, 2022, 2021, and 2020, respectively. This line item also includes net income of $5 million, $233 million, and $167 million attributable to our investments in Huatai for the years ended December 31, 2022, 2021, and 2020, respectively.

(2) Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

Other income and expense includes equity in net income of partially-owned entities, which 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) and partially-owned insurance companies. 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 GAAP. The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations. 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.

15. Segment information

Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. All business segments have established relationships with reinsurance intermediaries. Segment results for year ended December 31, 2022, include the results of Cigna's business in Asia from July 1, 2022, which are principally assigned to our Life Insurance segment and, to a lesser extent, our Overseas General Insurance segment according to the nature of the business written.

• The North America Commercial P&C Insurance segment comprises operations that provide P&C and A&H insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes our retail divisions: Major Accounts; Commercial Insurance, including Small Commercial Insurance; Chubb Bermuda, our high excess business; and Westchester, our wholesale and specialty division. These divisions write a variety of coverages, including property, casualty, workers’ compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, excess casualty, and A&H insurance.

• The North America Personal P&C Insurance segment comprises the business written by Chubb Personal Risk Services division, which includes high net worth personal lines business, with operations in the U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, high value automobile and collector cars, valuable articles (including fine arts), personal and excess liability, travel insurance, and recreational marine insurance and services.

• The North America Agricultural Insurance segment includes the business written by Rain and Hail Insurance Service, Inc. in the U.S. and Canada, which provides comprehensive multiple peril crop insurance (MPCI) and crop-hail insurance, and Chubb Agribusiness, which offers farm and ranch property as well as specialty P&C coverages, including commercial agriculture products.

• The Overseas General Insurance segment includes the business written by two Chubb divisions that provides both commercial and consumer P&C insurance and services in the 51 countries and territories outside of North America where the company operates. Chubb International, our retail division, provides commercial P&C, A&H and traditional and specialty personal lines for large corporations, middle markets and small customers through retail brokers, agents and other channels locally around the world. CGM provides commercial P&C excess and surplus lines wholesale business primarily through

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wholesale brokers in the London market and through Lloyd’s. These divisions write a variety of coverages, including traditional commercial P&C, specialty categories such as financial lines, marine, energy, aviation, political risk and construction, as well as group A&H and traditional and specialty personal lines.

• The Global Reinsurance segment includes the reinsurance business written by Chubb Tempest Re, comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Chubb Tempest Re provides a broad range of traditional and specialty reinsurance coverages to a diverse array of primary P&C companies, including small, mid-sized, and multinational ceding companies.

• The Life Insurance segment includes our international life operations (Chubb Life) which, commencing on July 1, 2022, includes the acquired Cigna A&H and life insurance business in Korea, Taiwan, New Zealand, Hong Kong, and Indonesia. The Life Insurance segment also includes Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life insurance business of Combined Insurance.

Corporate primarily includes the results of all run-off A&E exposures, run-off Brandywine business, Westchester specialty operations for 1996 and prior years, and certain other run-off exposures, including molestation claims. In addition, Corporate includes the results of our non-insurance companies including Chubb Limited, Chubb Group Management and Holdings Ltd., and Chubb INA Holdings Inc. Our exposure to A&E and molestation claims principally arises out of liabilities acquired when we purchased Westchester Specialty in 1998, CIGNA’s P&C business in 1999, and Chubb Corp in 2016.

Management uses underwriting income (loss) as the basis for segment performance. Chubb calculates underwriting income (loss) by subtracting Losses and loss expenses, Policy benefits, Policy acquisition costs, and Administrative expenses from Net premiums earned. Segment income (loss) includes underwriting income (loss), net investment income (loss), and other operating income and expense items such as each segment's share of the operating income (loss) related to partially-owned entities and miscellaneous income and expense items for which the segments are held accountable. Our main measure of segment performance is Segment income (loss), which also includes amortization of purchased intangibles acquired by the segment. We determined that this definition of segment income (loss) is appropriate and aligns with how the business is managed. We continue to evaluate our segments as our business continues to evolve and may further refine our segments and segment income (loss) measures.

Revenue and expenses managed at the corporate level, including net realized gains (losses), interest expense, Cigna integration expenses, and income tax are reported within Corporate. Cigna integration expenses are one-time costs that are directly attributable to third-party consulting fees, employee-related retention costs, and other professional and legal fees related to the acquisition of Cigna's A&H and Life insurance companies in several Asian markets. These items are not allocated to the segment level as they are one-time in nature and are not related to the ongoing business activities of the segment. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs, and therefore are excluded from our definition of segment income (loss).

Certain items are presented in a different manner for segment reporting purposes than in the Consolidated Financial Statements. These items are reconciled to the consolidated presentation in the Segment measure reclass column below and include:

• Losses and loss expenses include realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore, realized gains (losses) from these derivatives are reclassified to losses and loss expenses.

• Policy benefits include fair value changes on separate accounts that do not qualify for separate accounting under U.S. GAAP. These gains and losses have been reclassified from Other (income) expense. We view gains and losses from fair value changes in both separate account assets and liabilities as part of the results of our underwriting operations, and therefore these gains and losses are reclassified to policy benefits.

• Net investment income includes investment income reclassified from Other (income) expense related to partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of three percent. We view investment income from these equity-method private equity partnerships as net investment income for segment reporting purposes.

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The following tables present the Statement of Operations by segment:

For the Year Ended December 31, 2022 (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						Corporate						Segment Measure Reclass						Chubb Consolidated
Net premiums written			$	17,889					$	5,313					$	2,907					$	11,060					$	943					$	3,643					$	—					$	—					$	41,755
Net premiums earned			17,107						5,180						2,838						10,803						922						3,539						—						—						40,389
Losses and loss expenses			10,828						3,186						2,557						5,252						670						497						363						(11)						23,342
Policy benefits			—						—						—						—						—						1,534						—						(42)						1,492
Policy acquisition costs			2,313						1,057						126						2,818						240						838						—						—						7,392
Administrative expenses			1,113						291						(10)						1,070						36						510						385						—						3,395
Underwriting income (loss)			2,853						646						165						1,663						(24)						160						(748)						53						4,768
Net investment income			2,247						283						36						626						281						509						—						(240)						3,742
Other (income) expense			17						4						1						2						1						(45)						292						(198)						74
Amortization expense of purchased intangibles			—						10						26						57						—						10						182						—						285
Segment income (loss)			$	5,083					$	915					$	174					$	2,230					$	256					$	704					$	(1,222)					$	11					$	8,151
Net realized gains (losses)																																							(954)						(11)						(965)
Interest expense																																							570						—						570
Cigna integration expenses																																							48						—						48
Income tax expense																																							1,255						—						1,255
Net income (loss)																																							$	(4,049)					$	—					$	5,313

For the Year Ended December 31, 2021 (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						Corporate						Segment Measure Reclass						Chubb Consolidated
Net premiums written			$	16,415					$	5,002					$	2,388					$	10,713					$	873					$	2,477					$	—					$	—					$	37,868
Net premiums earned			15,461						4,915						2,338						10,441						798						2,402						—						—						36,355
Losses and loss expenses			10,015						2,924						1,962						5,143						632						740						572						(8)						21,980
Policy benefits			—						—						—						—						—						707						—						(8)						699
Policy acquisition costs			2,082						1,001						124						2,799						200						712						—						—						6,918
Administrative expenses			1,052						276						(3)						1,078						35						333						365						—						3,136
Underwriting income (loss)			2,312						714						255						1,421						(69)						(90)						(937)						16						3,622
Net investment income (loss)			2,078						249						28						597						331						407						(55)						(179)						3,456
Other (income) expense			31						(2)						1						—						—						(106)						(2,118)						(171)						(2,365)
Amortization expense of purchased intangibles			—						10						26						48						—						5						198						—						287
Segment income			$	4,359					$	955					$	256					$	1,970					$	262					$	418					$	928					$	8					$	9,156
Net realized gains (losses)																																							1,160						(8)						1,152
Interest expense																																							492						—						492
Income tax expense																																							1,277						—						1,277
Net income																																							$	319					$	—					$	8,539

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For the Year Ended December 31, 2020 (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						Corporate						Segment Measure Reclass						Chubb Consolidated
Net premiums written			$	14,474					$	4,920					$	1,846					$	9,335					$	731					$	2,514					$	—					$	—					$	33,820
Net premiums earned			13,964						4,866						1,822						9,285						698						2,482						—						—						33,117
Losses and loss expenses			10,129						3,187						1,544						5,255						435						724						435						1						21,710
Policy benefits			—						—						—						—						—						726						—						58						784
Policy acquisition costs			1,942						974						123						2,568						174						766						—						—						6,547
Administrative expenses			1,006						270						9						1,034						37						320						303						—						2,979
Underwriting income (loss)			887						435						146						428						52						(54)						(738)						(59)						1,097
Net investment income (loss)			2,061						260						30						534						307						385						(87)						(115)						3,375
Other (income) expense			23						5						1						13						2						(74)						(791)						(173)						(994)
Amortization expense of purchased intangibles			—						11						27						45						—						4						203						—						290
Segment income (loss)			$	2,925					$	679					$	148					$	904					$	357					$	401					$	(237)					$	(1)					$	5,176
Net realized gains (losses)																																							(499)						1						(498)
Interest expense																																							516						—						516
Income tax expense																																							629						—						629
Net income (loss)																																							$	(1,881)					$	—					$	3,533

Underwriting assets are reviewed in total by management for purposes of decision-making. Other than Unpaid losses and loss expenses, Future policy benefits, Reinsurance recoverables, Goodwill and Other intangible assets, Chubb does not allocate assets to its segments.

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The following table presents net premiums earned for each segment by line of business:

			For the Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
North America Commercial P&C Insurance
Property & other short-tail lines			$	3,383					$	2,942					$	2,423
Casualty & all other			13,056						11,905						10,812
A&H			668						614						729
Total North America Commercial P&C Insurance			17,107						15,461						13,964
North America Personal P&C Insurance
Personal automobile			811						781						822
Personal homeowners			3,557						3,384						3,327
Personal other			812						750						717
Total North America Personal P&C Insurance			5,180						4,915						4,866
North America Agricultural Insurance			2,838						2,338						1,822
Overseas General Insurance
Property & other short-tail lines			3,382						3,105						2,468
Casualty & all other			3,232						3,114						2,738
Personal lines			2,020						2,109						1,981
A&H			2,169						2,113						2,098
Total Overseas General Insurance			10,803						10,441						9,285
Global Reinsurance
Property			211						151						104
Property catastrophe			208						190						173
Casualty & all other			503						457						421
Total Global Reinsurance			922						798						698
Life Insurance
Life			1,484						1,320						1,317
A&H			2,055						1,082						1,165
Total Life Insurance			3,539						2,402						2,482
Total net premiums earned			$	40,389					$	36,355					$	33,117

The following table presents net premiums earned by geographic region. Allocations have been made on the basis of location of risk:

			North America						Europe (1)						Asia Pacific / Japan												Latin America
2022			69		%				11		%				14		%										6		%
2021			70		%				12		%				12		%										6		%
2020			70		%				11		%				12		%										7		%

(1) Europe includes Middle East and Africa regions.

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16. Earnings per share

			Year Ended December 31
(in millions of U.S. dollars, except share and per share data)			2022						2021						2020
Numerator:
Net income			$	5,313					$	8,539					$	3,533
Denominator:
Denominator for basic earnings per share:
Weighted-average shares outstanding			419,779,847						439,968,422						451,602,820
Denominator for diluted earnings per share:
Share-based compensation plans			3,747,597						3,228,856						1,838,692
Weighted-average shares outstanding and assumed conversions			423,527,444						443,197,278						453,441,512
Basic earnings per share			$	12.66					$	19.41					$	7.82
Diluted earnings per share			$	12.55					$	19.27					$	7.79
Potential anti-dilutive share conversions			1,467,840						1,532,066						6,811,966

Excluded from weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective years. These securities consisted of stock options in which the underlying exercise prices were greater than the average market prices of our Common Shares. Refer to Note 12 for additional information on stock options.

17. Related party transactions

Starr Indemnity & Liability Company and its affiliates (collectively, Starr)

We have agency, claims services and underwriting services agreements with Starr, the Chairman of which is related to a member of our senior management team. The Board has reviewed and approved our arrangements with Starr. We have agency, claims services and underwriting services agreements with various Starr subsidiaries. Under the agency agreement, we secure the ability to sell our insurance policies through Starr as one of our non-exclusive agents for writing policies, contracts, binders, or agreements of insurance or reinsurance. Under the claims services agreements, Starr adjusts the claims under policies and arranges for third party treaty and facultative agreements covering such policies. Under the underwriting services agreements, Starr underwrites insurance policies on our behalf and we agree to reinsure such policies to Starr under quota share reinsurance agreements.

The agency agreement also contains a profit-sharing arrangement based on loss ratios, triggered if Starr underwrites a minimum of $20 million of annual program business net premiums written on our behalf. No profit share commission has been payable yet under this arrangement. Transactions generated under Starr agreements were as follows:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Consolidated statement of operations
Gross premiums written			$	618					$	592					$	507
Ceded premiums written			$	353					$	321					$	253
Commissions paid			$	122					$	114					$	97
Commissions received			$	79					$	73					$	59
Losses and loss expenses			$	225					$	157					$	170
Consolidated balance sheets
Reinsurance recoverable on losses and loss expenses			$	541					$	516
Ceded reinsurance premium payable			$	96					$	88

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ABR Re

At December 31, 2022, we own 18.8 percent of the common equity of ABR Reinsurance Capital Holdings Ltd. and warrants to acquire 0.5 percent of additional equity. ABR Reinsurance Capital Holdings Ltd., is the parent company of ABR Reinsurance Ltd. (ABR Re), an independent reinsurance company. Through long-term arrangements, Chubb will be the sole source of reinsurance risks ceded to ABR Re, and BlackRock, Inc. serves as an investment management service provider. As an investor, Chubb is expected to benefit from underwriting profit generated by ABR Re’s reinsuring a wide range of Chubb’s primary insurance business and the income and capital appreciation BlackRock, Inc. seeks to deliver through its investment management services. In addition, Chubb has an arrangement with BlackRock, Inc. under which both Chubb and BlackRock, Inc. will be entitled to an equal share of the aggregate amount of certain fees, including underwriting and investment management performance related fees, in connection with their respective reinsurance and investment management arrangements with ABR Re. In connection with this arrangement with BlackRock, Inc., we recorded income of $7 million, $11 million, and $3 million in 2022, 2021, and 2020, respectively, which is recorded in Other (income) expense on the Consolidated statements of operations.

ABR Re is a variable interest entity; however, Chubb is not the primary beneficiary and does not consolidate ABR Re because Chubb does not have the power to control and direct ABR Re’s most significant activities, including investing and underwriting. Our ownership interest is accounted for under the equity method of accounting. Chubb cedes premiums to ABR Re and recognizes the associated commissions.

Transactions generated under ABR Re agreements were as follows:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Consolidated statements of operations
Ceded premiums written			$	507					$	442					$	350
Commissions received			$	138					$	133					$	100
Consolidated balance sheets
Reinsurance recoverable on losses and loss expenses			$	1,050					$	963
Ceded reinsurance premium payable			$	110					$	107

Aquiline Capital Partners LLC

Chubb invests in private investment funds managed by Aquiline Capital Partners LLC (collectively, Aquiline Funds), of which its chief executive officer is related to a member of our senior management team. We have more than a three percent ownership interest in these funds and therefore account for them under the equity method of accounting. At December 31, 2022, Chubb has approximately $267 million of future contribution commitments to Aquiline Funds.

Transactions generated from investments in Aquiline Funds are as follows:

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Consolidated statements of operations
Other income (expense)			$	8					$	68					$	2
Consolidated balance sheets
Other investments			$	271					$	245

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18. Statutory financial information

Our subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators. Statutory accounting differs from GAAP in the reporting of certain reinsurance contracts, investments, subsidiaries, acquisition expenses, fixed assets, deferred income taxes, and certain other items. Some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements. In some jurisdictions, we must obtain licenses issued by governmental authorities to conduct local insurance business. These licenses may be subject to reserves and minimum capital and solvency tests. Jurisdictions may impose fines, censure, and/or criminal sanctions for violation of regulatory requirements. The 2022 amounts below are based on estimates.

Chubb's insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate. These regulations include restrictions that limit the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the local insurance regulatory authorities. The amount of dividends available to be paid in 2023 without prior approval totals $5.7 billion.

The statutory capital and surplus of our insurance subsidiaries met regulatory requirements for 2022, 2021, and 2020. The minimum amounts of statutory capital and surplus necessary to satisfy regulatory requirements was $36.9 billion and $34.0 billion for December 31, 2022 and 2021, respectively. These minimum regulatory capital requirements were significantly lower than the corresponding amounts required by the rating agencies which review Chubb’s insurance and reinsurance subsidiaries.

The following tables present the combined statutory capital and surplus and statutory net income (loss) of our Property and casualty and Life subsidiaries:

			December 31
(in millions of U.S. dollars)			2022						2021
Statutory capital and surplus
Property and casualty			$	40,824					$	46,662
Life			$	4,834					$	2,294

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Statutory net income (loss)
Property and casualty			$	4,028					$	7,983					$	4,354
Life			$	1,425					$	424					$	(245)

Several insurance subsidiaries follow accounting practices prescribed or permitted by the jurisdiction of domicile that differ from the applicable local statutory practice. The application of prescribed or permitted accounting practices does not have a material impact on Chubb's statutory surplus and income. As prescribed by the Restructuring discussed previously in Note 7, certain of our U.S. subsidiaries discount certain A&E liabilities, which increased statutory capital and surplus by approximately $120 million and $129 million at December 31, 2022 and 2021, respectively.

Federal Insurance Company (Federal), a direct subsidiary of Chubb INA Holdings Inc., has a permitted practice granted by the Indiana Department of Insurance that relates to its investment in a foreign affiliate. Under Statement of Statutory Accounting Principles No. 97, Investments in Subsidiary, Controlled and Affiliated Entities, in order for a reporting entity to admit its investments in foreign subsidiaries and affiliates, audited financial statements of the subsidiary or affiliate must be obtained to support the carrying value. Such financial statements must be prepared in accordance with U.S. GAAP, or alternatively, in accordance with the local statutory requirements in the subsidiary’s or affiliate’s country of domicile, with an audited footnote reconciliation of net income and shareholder’s equity as reported to a U.S. GAAP basis. With the explicit permission of the Indiana Department of Insurance, Federal obtains audited financial statements for its admitted foreign affiliate, which had an aggregate carrying value of approximately $79 million and $72 million at December 31, 2022 and 2021, respectively, prepared in accordance with their respective local statutory requirements and supplemented with a separate unaudited reconciliation of shareholder’s equity as reported to a U.S. GAAP basis.

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SCHEDULE I

Chubb Limited and Subsidiaries

SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES

December 31, 2022 (in millions of U.S. dollars)			Cost or Amortized Cost, Net (1)						Fair Value						Amount at Which Shown in the Balance Sheet
Fixed maturities available for sale
U.S. Treasury / Agency			$	2,792					$	2,626					$	2,626
Non-U.S.			28,005						25,908						25,908
Corporate and asset-backed securities			40,440						36,955						36,955
Mortgage-backed securities			17,868						15,851						15,851
Municipal			4,081						3,880						3,880
Total fixed maturities available for sale			93,186						85,220						85,220
Fixed maturities held to maturity
U.S. Treasury / Agency			1,417						1,370						1,417
Non-U.S.			1,136						1,054						1,136
Corporate and asset-backed securities			1,705						1,580						1,705
Mortgage-backed securities			1,455						1,351						1,455
Municipal			3,135						3,084						3,135
Total fixed maturities held to maturity			8,848						8,439						8,848
Equity securities
Industrial, miscellaneous, and all other			827						827						827
Short-term investments			4,962						4,960						4,960
Other investments (2)			13,425						13,425						13,425
Total investments - other than investments in related parties			$	121,248					$	112,871					$	113,280

(1) Net of valuation allowance for expected credit losses.

(2) Excludes $271 million of related party investments.

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SCHEDULE II

Chubb Limited and Subsidiaries

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS (Parent Company Only)

			December 31						December 31
(in millions of U.S. dollars)			2022						2021
Assets
Investments in subsidiaries and affiliates on equity basis			$	50,393					$	58,850
Total investments			50,393						58,850
Cash			40						1
Due from subsidiaries and affiliates, net			959						1,218
Other assets			16						16
Total assets			$	51,408					$	60,085
Liabilities
Affiliated notional cash pooling programs			$	252					$	8
Accounts payable, accrued expenses, and other liabilities			616						363
Total liabilities			868						371
Shareholders' equity
Common Shares			10,346						10,985
Common Shares in treasury			(5,113)						(7,464)
Additional paid-in capital			7,166						8,478
Retained earnings			48,334						47,365
Accumulated other comprehensive income			(10,193)						350
Total shareholders' equity			50,540						59,714
Total liabilities and shareholders' equity			$	51,408					$	60,085

The condensed financial information should be read in conjunction with the Consolidated Financial Statements and notes thereto.

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SCHEDULE II (continued)

Chubb Limited and Subsidiaries

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF OPERATIONS (Parent Company Only)

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Revenues
Investment income (1)			$	83					$	96					$	155
Equity in net income of subsidiaries and affiliates			5,323						8,514						3,457
Total revenues			5,406						8,610						3,612
Expenses
Administrative and other (income) expense			65						56						55
Cigna integration expenses			10						—						—
Income tax expense			18						15						24
Total expenses			93						71						79
Net income			$	5,313					$	8,539					$	3,533
Comprehensive income (loss)			$	(5,230)					$	6,020					$	5,783

(1) Includes net investment income, interest income, and net realized gains (losses).

The condensed financial information should be read in conjunction with the Consolidated Financial Statements and notes thereto**.**

STATEMENTS OF CASH FLOWS (Parent Company Only)

			Year Ended December 31
(in millions of U.S. dollars)			2022						2021						2020
Net cash flows from operating activities (1)			$	7,831					$	4,167					$	1,933
Cash flows from investing activities
Capital contribution			(4,046)						$	—					(1,200)
Other			—						—						(2)
Net cash flows used for investing activities			(4,046)						$	—					(1,202)
Cash flows from financing activities
Dividends paid on Common Shares			(1,375)						(1,401)						(1,388)
Common Shares repurchased			(2,894)						(4,861)						(523)
Repayment of intercompany loans			279						2,003						1,265
Net proceeds from affiliated notional cash pooling programs (2)			245						8						—
Net cash flows used for financing activities			(3,745)						(4,251)						(646)
Effect of foreign currency rate changes on cash and restricted cash			(1)						1						(3)
Net increase (decrease) in cash and restricted cash			39						(83)						82
Cash and restricted cash – beginning of year			1						84						2
Cash and restricted cash – end of year			$	40					$	1					$	84

(1) Includes cash dividends received from subsidiaries of $7.7 billion, $3.7 billion, and $2.0 billion in 2022, 2021, and 2020, respectively.

(2) Chubb maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 g) for additional information.

The condensed financial information should be read in conjunction with the Consolidated Financial Statements and notes thereto.

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SCHEDULE IV

Chubb Limited and Subsidiaries

SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE

Premiums Earned
For the years ended December 31, 2022, 2021, and 2020 (in millions of U.S. dollars, except for percentages)						Direct Amount						Ceded To Other Companies						Assumed From Other Companies						Net Amount						Percentage of Amount Assumed to Net
2022
Property and Casualty						$	39,449					$	9,678					$	4,242					$	34,013					12		%
Accident and Health						5,206						411						97						4,892						2		%
Life						1,499						106						91						1,484						6		%
Total						$	46,154					$	10,195					$	4,430					$	40,389					11		%
2021
Property and Casualty						$	35,767					$	7,982					$	3,441					$	31,226					11		%
Accident and Health						4,062						362						109						3,809						3		%
Life						1,309						89						100						1,320						8		%
Total						$	41,138					$	8,433					$	3,650					$	36,355					10		%
2020
Property and Casualty						$	31,546					$	6,782					$	3,044					$	27,808					11		%
Accident and Health						4,249						368						111						3,992						3		%
Life						1,242						93						168						1,317						13		%
Total						$	37,037					$	7,243					$	3,323					$	33,117					10		%

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SCHEDULE VI

Chubb Limited and Subsidiaries

SUPPLEMENTARY INFORMATION CONCERNING PROPERTY AND CASUALTY OPERATIONS

As of and for the years ended December 31, 2022, 2021, and 2020 (in millions of U.S. dollars)
						Deferred Policy Acquisition Costs									Net Reserves for Unpaid Losses and Loss Expenses						Unearned Premiums						Net Premiums Earned						Net Investment Income			Net Losses and Loss Expenses Incurred Related to															Amortization of Deferred Policy Acquisition Costs						Net Paid Losses and Loss Expenses						Net Premiums Written
																					Current Year						Prior Year
2022						$	4,462								$	59,195					$	20,360					$	38,905					$	3,381					$	24,495					$	(1,153)					$	6,873					$	20,323					$	40,170
2021						$	4,260								$	56,759					$	19,101					$	35,035					$	3,133					$	22,966					$	(986)					$	6,440					$	17,884					$	36,474
2020						$	4,244								$	53,164					$	17,652					$	31,800					$	3,074					$	22,124					$	(414)					$	6,076					$	17,434					$	32,471

F-102