8-K

Exhibit 99.2

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Chubb Limited

Financial Supplement

for the Quarter Ended September 30, 2020

Investor Contact

Karen Beyer: (212) 827-4445

This report is for informational purposes only. It should be read in conjunction with documents filed by Chubb Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this financial supplement reflect Chubb Limited’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from such statements. For example, forward-looking statements related to financial performance, including exposures, reserves and recoverables, could be affected by the frequency and severity of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, currency exchange fluctuations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.

Our forward-looking statements could also be affected by, among other things, competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war, and such other factors identified in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Chubb Limited

Financial Supplement Table of Contents


		Page
I.	Financial Highlights
	- Consolidated Financial Highlights		1

II.	Consolidated Results
	- Consolidated Statement of Operations		2
	- P&C Results—Consecutive Quarters		3
	- Global P&C Results—Consecutive Quarters		4
	- Catastrophe Losses		5
	- Summary Consolidated Balance Sheets		6
	- Line of Business		7
	- Consolidated Results by Segment		8 - 11

III.	Segment Results
	- North America Commercial P&C Insurance		12
	- North America Personal P&C Insurance		13
	- North America Agricultural Insurance		14
	- Overseas General Insurance		15
	- Global Reinsurance		16
	- Life Insurance		17
	- Corporate		18

IV.	Balance Sheet Details
	- Loss Reserve Rollforward		19
	- Reinsurance Recoverable Analysis		20
	- Investment Portfolio		21 - 24
	- Net Realized and Unrealized Gains (Losses)		25 - 26
	- Debt and Capital		27
	- Computation of Basic and Diluted Earnings Per Share		28
	- Book Value and Book Value per Common Share		29

V.	Other Disclosures
	- Non-GAAP Financial Measures		30 - 36
	- Glossary		37

Chubb Limited

Consolidated Financial Highlights

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.


	Three months ended September 30									Constant $		Constant $			Nine months ended September 30									Constant $		Constant $
	2020			2019			% Change			2019		% Change			2020			2019			% Change			2019		% Change
Gross premiums written	$	11,220		$	10,724			4.6	%	$	10,656		5.3	%	$	31,012		$	30,190			2.7	%	$	29,930		3.6	%
Net premiums written	$	9,078		$	8,622			5.3	%	$	8,566		6.0	%	$	25,410		$	24,278			4.7	%	$	24,054		5.6	%
P&C net premiums written	$	8,468		$	8,010			5.7	%	$	7,958		6.4	%	$	23,536		$	22,508			4.6	%	$	22,295		5.6	%
P&C net premiums written adjusted for COVID-19 exposures ⁽¹⁾																						5.4	%				6.4	%
Net premiums earned	$	8,765		$	8,327			5.3	%	$	8,277		5.9	%	$	24,687		$	23,355			5.7	%	$	23,145		6.7	%
Net investment income	$	840		$	873			-3.8	%	$	871		-3.5	%	$	2,528		$	2,568			-1.6	%	$	2,557		-1.1	%
Adjusted net investment income ⁽²⁾	$	900		$	931			-3.4	%	$	929		-3.1	%	$	2,682		$	2,756			-2.7	%	$	2,745		-2.3	%
P&C underwriting income	$	392		$	754			-48.0	%	$	747		-47.5	%	$	241		$	2,193			-89.0	%	$	2,171		-88.9	%
P&C CAY underwriting income ex Cats	$	1,171		$	819			43.0	%	$	812		44.2	%	$	3,015		$	2,391			26.1	%	$	2,369		27.3	%
Agriculture CAY underwriting income ex Cats	$	93		$	22			NM		$	22		NM		$	138		$	76			84.0	%	$	76		84.0	%
Core operating income	$	907		$	1,236			-26.6	%	$	1,228		-26.1	%	$	1,873		$	3,601			-48.0	%	$	3,575		-47.6	%
Net income	$	1,194		$	1,091			9.4	%						$	1,115		$	3,281			-66.0	%
Operating cash flow	$	3,544		$	2,205										$	7,241		$	4,913
P&C combined ratio
Loss and loss expense ratio		69.2	%		63.1	%										71.5	%		61.5	%
Policy acquisition cost and administrative expense ratio		26.0	%		27.1	%										27.4	%		28.4	%

Combined ratio		95.2	%		90.2	%										98.9	%		89.9	%
P&C Current Accident Year (CAY) combined ratio ex Catastrophe losses (Cats)
CAY loss and loss expense ratio ex Cats		59.7	%		62.4	%										59.4	%		60.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		26.0	%		27.1	%										27.4	%		28.4	%

CAY combined ratio ex Cats		85.7	%		89.5	%										86.8	%		89.0	%
Global P&C CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		56.4	%		58.5	%										57.9	%		58.8	%
CAY policy acquisition cost and administrative expense ratio ex Cats		28.6	%		29.8	%										28.7	%		29.8	%

CAY combined ratio ex Cats		85.0	%		88.3	%										86.6	%		88.6	%
ROE		8.6	%		8.1	%										2.7	%		8.3	%
Core operating return on equity (ROE)		7.0	%		9.5	%										4.7	%		9.3	%
Core operating return on tangible equity (ROTE)		11.3	%		15.6	%										7.6	%		15.3	%
Effective tax rate		10.7	%		17.4	%										20.9	%		16.0	%
Core operating effective tax rate		16.0	%		15.1	%										16.2	%		15.0	%
Earnings per share
Net income	$	2.63		$	2.38			10.5	%						$	2.46		$	7.13			-65.5	%
Core operating income	$	2.00		$	2.70			-25.9	%						$	4.13		$	7.83			-47.3	%
Weighted average basic common shares outstanding		451.8			455.0											451.7			457.0
Weighted average diluted common shares outstanding		453.3			458.2											453.6			459.9

	September 30 2020			June 30 2020			% Change 3Q-20 vs. 2Q-20			December 31 2019		% Change 3Q-20 vs. 4Q-19
Book value per common share	$	124.98		$	121.32			3.0	%	$	122.42		2.1	%
Tangible book value per common share	$	81.11		$	77.49			4.7	%	$	78.14		3.8	%

(1)	YTD 2020 net premiums written were adversely impacted by COVID-19 including $184 million recorded in Q2 2020 of exposure adjustments on in-force policies.

(2)

Effective Q3 2020, Adjusted net investment income includes income from private equity partnerships where we hold more than three percent ownership. Previously, this income was included within Other income (expense)—operating. There is no impact to Net income and Core operating income. Prior year amounts have been reclassified to conform to the new presentation.


Financial Highlights		Page 1

Chubb Limited

Statement of Operations—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Consolidated Statements of Operations


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	11,220		$	10,040		$	9,752		$	9,934		$	10,724		$	31,012		$	30,190		$	40,124
Net premiums written		9,078			8,355			7,977			7,997			8,622			25,410			24,278			32,275
Net premiums earned		8,765			8,128			7,794			7,935			8,327			24,687			23,355			31,290
Adjusted losses and loss expenses ⁽¹⁾		5,834			6,578			4,487			4,865			5,066			16,899			13,873			18,738
Realized (gains) losses on crop derivatives		(1	)		1			2			—			14			2			8			8

Losses and loss expenses		5,835			6,577			4,485			4,865			5,052			16,897			13,865			18,730
Adjusted policy benefits ⁽²⁾		174			183			185			201			165			542			495			696
Gains (losses) from fair value changes in separate account liabilities		(24	)		(40	)		56			(24	)		7			(8	)		(20	)		(44	)

Policy benefits		198			223			129			225			158			550			515			740
Policy acquisition costs		1,645			1,593			1,615			1,542			1,603			4,853			4,611			6,153
Administrative expenses		733			727			741			810			752			2,201			2,220			3,030
Adjusted net investment income ⁽³⁾		900			865			917			917			931			2,682			2,756			3,673
Other (income) expense from private equity partnerships		(32	)		(8	)		(24	)		(24	)		(21	)		(64	)		(62	)		(86	)
Amortization expense of fair value adjustment on acquired invested assets		(28	)		(30	)		(32	)		(35	)		(37	)		(90	)		(126	)		(161	)

Net investment income		840			827			861			858			873			2,528			2,568			3,426
Adjusted realized gains (losses) ⁽⁴⁾		(142	)		31			(956	)		(55	)		(141	)		(1,067	)		(467	)		(522	)
Realized gains (losses) on crop derivatives		1			(1	)		(2	)		—			(14	)		(2	)		(8	)		(8	)

Net realized gains (losses)		(141	)		30			(958	)		(55	)		(155	)		(1,069	)		(475	)		(530	)
Adjusted interest expense ⁽⁵⁾		135			134			137			140			143			406			433			573
Amortization benefit of fair value adjustment on acquired long term debt		(5	)		(6	)		(5	)		(6	)		(5	)		(16	)		(15	)		(21	)

Interest expense		130			128			132			134			138			390			418			552
Gains (losses) from fair value changes in separate account assets		24			40			(56	)		24			(7	)		8			20			44
Net realized gains (losses) related to unconsolidated entities		422			(100	)		(7	)		227			41			315			256			483
Other income (expense) from private equity partnerships		32			8			24			24			21			64			62			86
Other income (expense) - operating		7			(6	)		(16	)		(5	)		2			(15	)		(12	)		(17	)

Other income (expense)		485			(58	)		(55	)		270			57			372			326			596
Amortization expense of purchased intangibles		72			72			73			76			76			217			229			305
Chubb integration expenses		—			—			—			14			2			—			9			23
Income tax expense (benefit)		142			(62	)		215			169			230			295			626			795

Net income (loss)	$	1,194		$	(331	)	$	252		$	1,173		$	1,091		$	1,115		$	3,281		$	4,454

(1)	Adjusted losses and loss expenses used throughout this report includes realized gains and losses on crop derivatives.

(2)	Adjusted policy benefits used throughout this report excludes gains and losses from fair value changes in separate account liabilities.

(3)	Adjusted net investment income used throughout this report excludes Amortization expense of fair value adjustment on acquired invested assets and includes income from private equity partnerships where we hold more than three percent ownership.

(4)	Adjusted realized gains (losses) used throughout this report excludes realized gains and losses on crop derivatives.

(5)	Adjusted interest expense used throughout this report excludes Amortization benefit of fair value adjustment on acquired long term debt.


Statement of Operations		Page 2

Chubb Limited

P&C Underwriting Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Chubb Limited P&C Underwriting Results


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
P&C underwriting income (loss) (Including Corporate and excluding Life Insurance)
Gross premiums written	$	10,575		$	9,387		$	9,069		$	9,282		$	10,082		$	29,031		$	28,325		$	37,607
Net premiums written		8,468			7,736			7,332			7,375			8,010			23,536			22,508			29,883
Net premiums earned		8,166			7,520			7,163			7,322			7,729			22,849			21,625			28,947
Adjusted losses and loss expenses		5,651			6,407			4,285			4,689			4,876			16,343			13,292			17,981
Policy acquisition costs		1,470			1,397			1,435			1,376			1,427			4,302			4,157			5,533
Administrative expenses		653			645			665			724			672			1,963			1,983			2,707

P&C underwriting income (loss)	$	392		$	(929	)	$	778		$	533		$	754		$	241		$	2,193		$	2,726

P&C CAY underwriting income ex Cats	$	1,171		$	947		$	897		$	730		$	819		$	3,015		$	2,391		$	3,121
% Change versus prior year period
Net premiums written		5.7	%		-0.4	%		8.9	%		9.0	%		6.2	%		4.6	%		4.5	%		5.6	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					2.1	%											5.4	%
Net premiums earned		5.7	%		2.7	%		8.9	%		6.3	%		5.0	%		5.7	%		3.2	%		4.0	%
Net premiums written constant $		6.4	%		1.4	%		9.3	%		9.8	%		7.2	%		5.6	%		6.2	%		7.0	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					3.9	%											6.4	%
Net premiums earned constant $		6.3	%		4.6	%		9.3	%		7.1	%		6.1	%		6.6	%		4.9	%		5.4	%
P&C combined ratio
Loss and loss expense ratio		69.2	%		85.2	%		59.8	%		64.0	%		63.1	%		71.5	%		61.5	%		62.1	%
Policy acquisition cost ratio		18.0	%		18.5	%		20.0	%		18.8	%		18.4	%		18.8	%		19.2	%		19.1	%
Administrative expense ratio		8.0	%		8.6	%		9.3	%		9.9	%		8.7	%		8.6	%		9.2	%		9.4	%

Combined ratio		95.2	%		112.3	%		89.1	%		92.7	%		90.2	%		98.9	%		89.9	%		90.6	%

CAY P&C combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		59.7	%		60.4	%		58.2	%		61.3	%		62.4	%		59.4	%		60.6	%		60.8	%
CAY policy acquisition cost and administrative expense ratio ex Cats		26.0	%		27.0	%		29.3	%		28.7	%		27.1	%		27.4	%		28.4	%		28.4	%

CAY combined ratio ex Cats		85.7	%		87.4	%		87.5	%		90.0	%		89.5	%		86.8	%		89.0	%		89.2	%

Other ratios
Net premiums written/gross premiums written		80	%		82	%		81	%		79	%		79	%		81	%		79	%		79	%
Expense ratio		26.0	%		27.1	%		29.3	%		28.7	%		27.1	%		27.4	%		28.4	%		28.5	%
Expense ratio excluding A&H		24.0	%		25.2	%		27.5	%		26.6	%		25.1	%		25.5	%		26.4	%		26.4	%
Catastrophe reinstatement premiums (expensed) collected—pre-tax	$	7		$	(20	)	$	—		$	(14	)	$	2		$	(13	)	$	2		$	(12	)
Catastrophe losses—pre-tax	$	932		$	1,781		$	237		$	416		$	234		$	2,950		$	759		$	1,175
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(146	)	$	75		$	(118	)	$	(233	)	$	(167	)	$	(189	)	$	(559	)	$	(792	)
Impact of catastrophe losses on P&C combined ratio—Unfavorable		11.3	%		23.9	%		3.3	%		5.9	%		3.0	%		13.0	%		3.5	%		4.1	%
Impact of PPD on P&C combined ratio—Unfavorable (favorable)		-1.8	%		1.0	%		-1.7	%		-3.2	%		-2.3	%		-0.9	%		-2.6	%		-2.7	%
Impact of Cats and PPD on P&C combined ratio—Unfavorable		9.5	%		24.9	%		1.6	%		2.7	%		0.7	%		12.1	%		0.9	%		1.4	%

(1)	YTD 2020 net premiums written were adversely impacted by COVID-19 including $184 million recorded in Q2 2020 of exposure adjustments on in-force policies.


P&C Results		Page 3

Chubb Limited

Global P&C Underwriting Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global P&C includes the company’s North America Commercial P&C Insurance segment (refer to page 12), North America Personal P&C Insurance segment (refer to page 13), Overseas General Insurance segment (refer to page 15), Global Reinsurance segment (refer to page 16), and Corporate (refer to page 18). Global P&C excludes the North America Agricultural Insurance and Life Insurance segments.

Global P&C (Including Corporate and excluding Agriculture)


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Global P&C underwriting income (loss)
Gross premiums written	$	9,243		$	8,735		$	8,849		$	9,000		$	8,810		$	26,827		$	26,192		$	35,192
Net premiums written		7,482			7,275			7,175			7,099			7,072			21,932			20,974			28,073
Net premiums earned		7,195			7,144			7,069			6,901			6,788			21,408			20,251			27,152
Adjusted losses and loss expenses		4,806			6,094			4,220			4,236			3,996			15,120			12,129			16,365
Policy acquisition costs		1,414			1,368			1,424			1,382			1,371			4,206			4,067			5,449
Administrative expenses		648			642			661			727			668			1,951			1,974			2,701

Global P&C underwriting income (loss)	$	327		$	(960	)	$	764		$	556		$	753		$	131		$	2,081		$	2,637

Global P&C CAY underwriting income ex Cats	$	1,078		$	910		$	889		$	789		$	797		$	2,877		$	2,315		$	3,104
% Change versus prior year period
Net premiums written		5.8	%		-0.3	%		8.6	%		8.0	%		6.2	%		4.6	%		4.0	%		5.0	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					2.3	%											5.5	%
Net premiums earned		6.0	%		2.9	%		8.4	%		5.0	%		4.4	%		5.7	%		2.8	%		3.3	%
Net premiums written constant $		6.6	%		1.6	%		9.1	%		8.9	%		7.3	%		5.6	%		5.8	%		6.6	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					4.2	%											6.6	%
Net premiums earned constant $		6.7	%		4.9	%		8.8	%		5.8	%		5.6	%		6.8	%		4.6	%		4.9	%
Combined ratio
Loss and loss expense ratio		66.8	%		85.3	%		59.7	%		61.4	%		58.9	%		70.6	%		59.9	%		60.3	%
Policy acquisition cost ratio		19.7	%		19.1	%		20.2	%		20.0	%		20.2	%		19.7	%		20.1	%		20.1	%
Administrative expense ratio		9.0	%		9.0	%		9.3	%		10.5	%		9.8	%		9.1	%		9.7	%		9.9	%

Combined ratio		95.5	%		113.4	%		89.2	%		91.9	%		88.9	%		99.4	%		89.7	%		90.3	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		56.4	%		59.3	%		57.9	%		58.1	%		58.5	%		57.9	%		58.8	%		58.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		28.6	%		28.0	%		29.5	%		30.5	%		29.8	%		28.7	%		29.8	%		30.0	%

CAY combined ratio ex Cats		85.0	%		87.3	%		87.4	%		88.6	%		88.3	%		86.6	%		88.6	%		88.6	%

Other ratios
Net premiums written/gross premiums written		81	%		83	%		81	%		79	%		80	%		82	%		80	%		80	%
Expense ratio		28.7	%		28.1	%		29.5	%		30.5	%		30.0	%		28.8	%		29.8	%		30.0	%
Expense ratio excluding A&H		26.7	%		26.2	%		27.7	%		28.6	%		28.0	%		26.9	%		27.9	%		28.0	%
Catastrophe reinstatement premiums (expensed) collected—pre-tax	$	7		$	(20	)	$	—		$	(14	)	$	2		$	(13	)	$	2		$	(12	)
Catastrophe losses—pre-tax	$	922		$	1,775		$	229		$	415		$	231		$	2,926		$	752		$	1,167
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(164	)	$	75		$	(104	)	$	(196	)	$	(185	)	$	(193	)	$	(516	)	$	(712	)

(1)	YTD 2020 net premiums written were adversely impacted by COVID-19 including $184 million recorded in Q2 2020 of exposure adjustments on in-force policies.


Global P&C		Page 4

Chubb Limited

Segments Results—Catastrophe Loss Charges

(in millions of U.S. dollars)

(Unaudited)

Chubb Limited Catastrophe Loss Charges—Q3 2020


												Total				Total
	North			North		North						Consolidated				Consolidated
	America			America		America		Overseas				excluding		Reinstatement		including
	Commercial P&C			Personal P&C		Agricultural		General		Global		Reinstatement		premiums		Reinstatement
	Insurance			Insurance		Insurance		Insurance		Reinsurance		premiums		collected		premiums
Catastrophe Loss Charges by Event—Net
U.S. Hurricanes/Tropical storms	$	318		$	117	$	1	$	51	$	47	$	534	$	4	$	530
U.S. wildfires		30			80		—		—		—		110		—		110
Midwest derecho		53			34		8		—		1		96		—		96
International weather-related events		1			3		—		28		—		32		—		32
Other events		14			23		1		2		—		40		—		40
IBNR		35			32		—		—		—		67		—		67
Q1 & Q2 Development		(4	)		16		—		14		27		53		3		50

Total	$	447		$	305	$	10	$	95	$	75	$	932

Reinstatement premiums collected		—			—		—		—		7			$	7

Total before income tax	$	447		$	305	$	10	$	95	$	68					$	925

Income tax benefit																	128

Total after income tax																$	797

Note: There were no changes to the previously reported aggregate COVID-19 losses from June 30, 2020. The above table represents catastrophe loss estimates for events that occurred in the current calendar year only (i.e., loss events occurring during the third quarter of 2020 and changes to catastrophe loss estimates that occurred in the previous quarters of 2020). Changes in catastrophe loss estimates in the current calendar year that relate to loss events that occurred in previous calendar years are considered prior period development and are excluded from the table above.


Catastrophe Losses		Page 5

Chubb Limited

Summary Consolidated Balance Sheets

(in millions of U.S. dollars, except per share data)

(Unaudited)


	September 30			June 30			March 31			December 31
	2020			2020			2020			2019
Assets
Fixed maturities available for sale, at fair value	$	89,852		$	86,712		$	81,523		$	85,488
Fixed maturities held to maturity, at amortized cost		11,651			11,845			12,022			12,581
Equity securities, at fair value		3,088			2,394			2,068			812
Short-term investments, at fair value		4,660			4,003			3,586			4,291
Other investments		6,796			5,923			6,075			6,062

		116,047			110,877			105,274			109,234
Cash		1,707			1,557			1,512			1,537
Securities lending collateral		1,851			1,832			1,342			994
Insurance and reinsurance balances receivable		10,588			10,853			10,058			10,357
Reinsurance recoverable on losses and loss expenses		15,670			15,207			14,898			15,181
Deferred policy acquisition costs		5,275			5,243			5,162			5,242
Value of business acquired		286			290			289			306
Prepaid reinsurance premiums		2,760			2,725			2,570			2,647
Goodwill and other intangible assets		21,103			21,093			20,873			21,359
Investments in partially-owned insurance companies		2,534			1,364			1,346			1,332
Other assets		9,965			10,433			9,793			8,754

Total assets	$	187,786		$	181,474		$	173,117		$	176,943

Liabilities
Unpaid losses and loss expenses	$	67,905		$	65,699		$	62,214		$	62,690
Unearned premiums		17,502			17,081			16,459			16,771
Future policy benefits		5,955			5,895			5,776			5,814
Insurance and reinsurance balances payable		6,420			6,249			6,084			6,184
Securities lending payable		1,851			1,832			1,342			994
Accounts payable, accrued expenses, and other liabilities		14,487			13,998			13,463			13,189
Deferred tax liabilities		815			696			473			804
Short-term and long-term debt		16,130			14,956			14,810			14,858
Trust preferred securities		308			308			308			308

Total liabilities		131,373			126,714			120,929			121,612
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		54,557			53,662			54,281			54,712
Accumulated other comprehensive income (loss) (AOCI)		1,856			1,098			(2,093	)		619

Total shareholders’ equity		56,413			54,760			52,188			55,331

Total liabilities and shareholders’ equity	$	187,786		$	181,474		$	173,117		$	176,943

Book value per common share	$	124.98		$	121.32		$	115.62		$	122.42
% change over prior quarter		3.0	%		4.9	%		-5.6	%		1.7	%
Tangible book value per common share	$	81.11		$	77.49		$	72.27		$	78.14
% change over prior quarter		4.7	%		7.2	%		-7.5	%		2.5	%


Consol Bal Sheet		Page 6

Chubb Limited

Consolidated Net Premiums Written by Line of Business

(in millions of U.S. dollars)

(Unaudited)


																					C$ adjusted
																					for COVID-19
								Constant $			YTD		YTD					Constant $			exposures
	3Q-20		3Q-19		% Change			% Change			2020		2019		% Change			% Change			% Change ⁽¹⁾
Net premiums written
Commercial multiple peril⁽²⁾	$	270	$	252		7.0	%		7.0	%	$	778	$	725		7.3	%		7.3	%		8.1	%
Commercial casualty		1,722		1,508		14.2	%		14.3	%		4,541		4,180		8.6	%		9.0	%		10.4	%
Workers’ compensation		432		462		-6.4	%		-6.4	%		1,485		1,537		-3.4	%		-3.4	%		4.5	%
Professional liability		1,103		981		12.5	%		12.5	%		3,012		2,676		12.6	%		13.3	%		13.3	%
Surety		127		168		-24.0	%		-21.4	%		394		476		-17.2	%		-14.7	%		-14.7	%
Property and other short-tail lines		1,270		1,067		19.0	%		20.3	%		3,948		3,410		15.8	%		17.5	%		17.5	%

Total Commercial P&C		4,924		4,438		11.0	%		11.5	%		14,158		13,004		8.9	%		9.7	%		11.1	%
Agriculture		986		938		5.0	%		5.0	%		1,604		1,534		4.5	%		4.5	%		4.5	%
Personal automobile		380		444		-14.5	%		-9.9	%		1,174		1,338		-12.2	%		-8.9	%		-8.0	%
Personal homeowners		955		935		2.1	%		2.6	%		2,708		2,646		2.3	%		2.7	%		2.7	%
Personal other		417		372		12.2	%		11.8	%		1,237		1,123		10.2	%		11.5	%		11.5	%

Total Personal lines		1,752		1,751		0.1	%		1.5	%		5,119		5,107		0.2	%		1.6	%		1.9	%
Total Property and Casualty lines		7,662		7,127		7.5	%		8.2	%		20,881		19,645		6.3	%		7.2	%		8.2	%
Global A&H lines ⁽³⁾		913		1,052		-13.2	%		-12.4	%		2,931		3,255		-10.0	%		-8.6	%		-8.6	%
Reinsurance lines		181		141		28.4	%		27.2	%		606		540		12.2	%		11.9	%		11.9	%
Life		322		302		6.6	%		7.5	%		992		838		18.4	%		19.6	%		19.6	%

Total consolidated	$	9,078	$	8,622		5.3	%		6.0	%	$	25,410	$	24,278		4.7	%		5.6	%		6.5	%

(1)	YTD 2020 net premiums written were adversely impacted by COVID-19 including $184 million recorded in Q2 2020 of exposure adjustments on in-force policies.

(2)	Commercial multiple peril represents retail package business (property and general liability).

(3)

For purposes of this schedule only, A&H results from our Combined North America and International businesses, normally included in the Life Insurance and Overseas General Insurance segments, respectively, as well as the A&H results of our North America Commercial P&C segment, are included in Global A&H lines above.


Line of Business		Page 7

Chubb Limited

Consolidated Results—Three months ended September 30, 2020

(in millions of U.S. dollars, except ratios)

(Unaudited)


Q3 2020	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	3,778		$	1,285		$	986		$	2,238		$	181		$	—		$	8,468		$	610		$	9,078
Net premiums earned		3,456			1,231			971			2,337			171			—			8,166			599			8,765
Adjusted losses and loss expenses		2,444			961			845			1,192			154			55			5,651			183			5,834
Adjusted policy benefits		—			—			—			—			—			—			—			174			174
Policy acquisition costs		489			248			56			637			40			—			1,470			175			1,645
Administrative expenses		243			65			5			260			9			71			653			80			733

Underwriting income (loss)		280			(43	)		65			248			(32	)		(126	)		392			(13	)		379
Adjusted net investment income		510			64			7			130			85			9			805			95			900
Other income (expense)—operating		(7	)		(1	)		—			(1	)		—			(7	)		(16	)		23			7
Amortization expense of purchased intangibles		—			(2	)		(7	)		(10	)		—			(52	)		(71	)		(1	)		(72	)

Segment income (loss)	$	783		$	18		$	65		$	367		$	53		$	(176	)	$	1,110		$	104		$	1,214

Adjusted interest expense																	(135	)								(135	)
Income tax expense																	(172	)								(172	)

Core operating income (loss)																	(483	)								907
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $4 million tax benefit																	(19	)								(19	)
Adjusted net realized gains (losses), net of $26 million tax benefit⁽¹⁾																	306									306

Net income (loss)																$	(196	)							$	1,194

Combined ratio		91.9	%		103.5	%		93.3	%		89.4	%		118.3	%					95.2	%
CAY combined ratio ex Cats		84.9	%		74.8	%		90.4	%		87.9	%		80.8	%					85.7	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—QTD 2020		Page 8

Chubb Limited

Consolidated Results—Nine months ended September 30, 2020

(in millions of U.S. dollars, except ratios)

(Unaudited)


YTD 2020	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	10,750		$	3,719		$	1,604		$	6,857		$	606		$	—		$	23,536		$	1,874		$	25,410
Net premiums earned		10,427			3,623			1,441			6,838			520			—			22,849			1,838			24,687
Adjusted losses and loss expenses		8,123			2,406			1,223			3,935			314			342			16,343			556			16,899
Adjusted policy benefits		—			—			—			—			—			—			—			542			542
Policy acquisition costs		1,452			724			96			1,903			127			—			4,302			551			4,853
Administrative expenses		751			199			12			759			28			214			1,963			238			2,201

Underwriting income (loss)		101			294			110			241			51			(556	)		241			(49	)		192
Adjusted net investment income		1,544			195			23			396			214			25			2,397			285			2,682
Other income (expense)—operating		(19	)		(4	)		(1	)		(10	)		(1	)		(32	)		(67	)		52			(15	)
Amortization expense of purchased intangibles		—			(8	)		(20	)		(33	)		—			(153	)		(214	)		(3	)		(217	)

Segment income (loss)	$	1,626		$	477		$	112		$	594		$	264		$	(716	)	$	2,357		$	285		$	2,642

Adjusted interest expense																	(406	)								(406	)
Income tax expense																	(363	)								(363	)

Core operating income (loss)																	(1,485	)								1,873
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $14 million tax benefit																	(60	)								(60	)
Adjusted net realized gains (losses), net of $54 million tax benefit⁽¹⁾																	(698	)								(698	)

Net income (loss)																$	(2,243	)							$	1,115

Combined ratio		99.0	%		91.9	%		92.3	%		96.5	%		90.1	%					98.9	%
CAY combined ratio ex Cats		85.8	%		78.5	%		90.4	%		89.4	%		79.7	%					86.8	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—YTD 2020		Page 9

Chubb Limited

Consolidated Results—Three months ended September 30, 2019

(in millions of U.S. dollars, except ratios)

(Unaudited)


Q3 2019	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	3,452		$	1,251		$	938		$	2,228		$	141		$	—		$	8,010		$	612		$	8,622
Net premiums earned		3,185			1,187			941			2,256			160			—			7,729			598			8,327
Adjusted losses and loss expenses		2,051			674			880			1,154			79			38			4,876			190			5,066
Adjusted policy benefits		—			—			—			—			—			—			—			165			165
Policy acquisition costs		459			240			56			630			42			—			1,427			176			1,603
Administrative expenses		256			72			4			257			9			74			672			80			752

Underwriting income (loss)		419			201			1			215			30			(112	)		754			(13	)		741
Adjusted net investment income		538			66			8			147			71			9			839			92			931
Other income (expense)—operating		(5	)		(1	)		—			(2	)		—			(7	)		(15	)		17			2
Amortization expense of purchased intangibles		—			(3	)		(7	)		(11	)		—			(54	)		(75	)		(1	)		(76	)

Segment income (loss)	$	952		$	263		$	2		$	349		$	101		$	(164	)	$	1,503		$	95		$	1,598

Adjusted interest expense																	(143	)								(143	)
Income tax expense																	(219	)								(219	)

Core operating income (loss)																	(526	)								1,236
Chubb integration expenses, net of nil tax																	(2	)								(2	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $8 million tax benefit																	(24	)								(24	)
Adjusted net realized gains (losses), net of $19 million tax ⁽¹⁾																	(119	)								(119	)

Net income (loss)																$	(671	)							$	1,091

Combined ratio		86.9	%		83.1	%		99.9	%		90.5	%		81.1	%					90.2	%
CAY combined ratio ex Cats		87.6	%		81.3	%		97.7	%		90.0	%		82.1	%					89.5	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—QTD 2019		Page 10

Chubb Limited

Consolidated Results—Nine months ended September 30, 2019

(in millions of U.S. dollars, except ratios)

(Unaudited)


YTD 2019	North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C			Life Insurance			Total Consolidated
Net premiums written	$	9,937		$	3,616		$	1,534		$	6,881		$	540		$	—		$	22,508		$	1,770		$	24,278
Net premiums earned		9,660			3,509			1,374			6,595			487			—			21,625			1,730			23,355
Adjusted losses and loss expenses		6,238			2,178			1,163			3,385			245			83			13,292			581			13,873
Adjusted policy benefits		—			—			—			—			—			—			—			495			495
Policy acquisition costs		1,377			708			90			1,855			127			—			4,157			454			4,611
Administrative expenses		755			211			9			771			26			211			1,983			237			2,220

Underwriting income (loss)		1,290			412			112			584			89			(294	)		2,193			(37	)		2,156
Adjusted net investment income		1,584			194			22			444			206			28			2,478			278			2,756
Other income (expense)—operating		(17	)		(2	)		(1	)		(11	)		—			(18	)		(49	)		37			(12	)
Amortization expense of purchased intangibles		—			(9	)		(21	)		(34	)		—			(163	)		(227	)		(2	)		(229	)

Segment income (loss)	$	2,857		$	595		$	112		$	983		$	295		$	(447	)	$	4,395		$	276		$	4,671

Adjusted interest expense																	(433	)								(433	)
Income tax expense																	(637	)								(637	)

Core operating income (loss)																	(1,517	)								3,601
Chubb integration expenses, net of $2 million tax benefit																	(7	)								(7	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of $22 million tax benefit																	(89	)								(89	)
Adjusted net realized gains (losses), net of $13 million tax ⁽¹⁾																	(224	)								(224	)

Net income (loss)																$	(1,837	)							$	3,281

Combined ratio		86.6	%		88.3	%		91.9	%		91.1	%		81.7	%					89.9	%
CAY combined ratio ex Cats		87.8	%		81.4	%		94.6	%		90.8	%		81.7	%					89.0	%

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Consol Results—YTD 2019		Page 11

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Commercial P&C Insurance


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	4,841		$	4,401		$	4,211		$	4,576		$	4,533		$	13,453		$	13,028		$	17,604
Net premiums written		3,778			3,720			3,252			3,438			3,452			10,750			9,937			13,375
Net premiums earned		3,456			3,595			3,376			3,262			3,185			10,427			9,660			12,922
Losses and loss expenses		2,444			3,498			2,181			1,968			2,051			8,123			6,238			8,206
Policy acquisition costs		489			471			492			454			459			1,452			1,377			1,831
Administrative expenses		243			249			259			273			256			751			755			1,028

Underwriting income (loss)		280			(623	)		444			567			419			101			1,290			1,857
Adjusted net investment income		510			509			525			525			538			1,544			1,584			2,109
Other income (expense)—operating		(7	)		(6	)		(6	)		(7	)		(5	)		(19	)		(17	)		(24	)

Segment income (loss)	$	783		$	(120	)	$	963		$	1,085		$	952		$	1,626		$	2,857		$	3,942

CAY underwriting income ex Cats	$	527		$	504		$	457		$	445		$	398		$	1,488		$	1,184		$	1,629
Combined ratio
Loss and loss expense ratio		70.7	%		97.3	%		64.6	%		60.3	%		64.4	%		77.9	%		64.6	%		63.5	%
Policy acquisition cost ratio		14.2	%		13.1	%		14.6	%		13.9	%		14.4	%		13.9	%		14.2	%		14.2	%
Administrative expense ratio		7.0	%		6.9	%		7.6	%		8.4	%		8.1	%		7.2	%		7.8	%		7.9	%

Combined ratio		91.9	%		117.3	%		86.8	%		82.6	%		86.9	%		99.0	%		86.6	%		85.6	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		63.8	%		66.1	%		64.2	%		64.0	%		65.5	%		64.7	%		65.8	%		65.3	%
CAY policy acquisition cost and administrative expense ratio ex Cats		21.1	%		19.9	%		22.3	%		22.4	%		22.1	%		21.1	%		22.0	%		22.1	%

CAY combined ratio ex Cats		84.9	%		86.0	%		86.5	%		86.4	%		87.6	%		85.8	%		87.8	%		87.4	%

Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	(3	)	$	—		$	—		$	—		$	(3	)	$	—		$	—
Catastrophe losses—pre-tax	$	447		$	1,270		$	118		$	102		$	88		$	1,835		$	319		$	421
Favorable prior period development (PPD)—pre-tax	$	(200	)	$	(146	)	$	(105	)	$	(224	)	$	(109	)	$	(451	)	$	(425	)	$	(649	)
% Change versus prior year period
Net premiums written		9.4	%		5.3	%		10.2	%		9.4	%		7.9	%		8.2	%		6.4	%		7.1	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					9.8	%											9.8	%
Net premiums earned		8.5	%		6.1	%		9.4	%		6.0	%		5.5	%		7.9	%		3.6	%		4.2	%
Other ratios
Net premiums written/gross premiums written		78	%		85	%		77	%		75	%		76	%		80	%		76	%		76	%
Production by Size—Net premiums written ⁽²⁾
Major Accounts & Specialty	$	2,294		$	2,350		$	1,874		$	2,049		$	2,043		$	6,518		$	5,942		$	7,991
Commercial		1,484			1,370			1,378			1,389			1,409			4,232			3,995			5,384

Total	$	3,778		$	3,720		$	3,252		$	3,438		$	3,452		$	10,750		$	9,937		$	13,375

(1)	YTD 2020 net premiums written were adversely impacted by COVID-19 including $160 million recorded in Q2 2020 of exposure adjustments on in-force policies.

(2)

Major Accounts & Specialty: large corporate accounts and wholesale business. Commercial: principally middle market and small commercial accounts. Certain 2019 businesses, previously reported within Commercial, are now reported within Major Accounts & Specialty to align with 2020 reporting. The reclassifications are immaterial and have no impact to total reported North America Commercial P&C Insurance segment net premiums written.


NA Commercial		Page 12

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Personal P&C Insurance


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	1,448		$	1,511		$	1,265		$	1,349		$	1,422		$	4,224		$	4,112		$	5,461
Net premiums written		1,285			1,327			1,107			1,171			1,251			3,719			3,616			4,787
Net premiums earned		1,231			1,192			1,200			1,185			1,187			3,623			3,509			4,694
Losses and loss expenses		961			762			683			865			674			2,406			2,178			3,043
Policy acquisition costs		248			231			245			240			240			724			708			948
Administrative expenses		65			66			68			75			72			199			211			286

Underwriting income (loss)		(43	)		133			204			5			201			294			412			417
Net investment income		64			65			66			64			66			195			194			258
Other income (expense)—operating		(1	)		(1	)		(2	)		(1	)		(1	)		(4	)		(2	)		(3	)
Amortization expense of purchased intangibles		(2	)		(3	)		(3	)		(3	)		(3	)		(8	)		(9	)		(12	)

Segment income	$	18		$	194		$	265		$	65		$	263		$	477		$	595		$	660

CAY underwriting income ex Cats	$	310		$	242		$	226		$	223		$	222		$	778		$	653		$	876
Combined ratio
Loss and loss expense ratio		78.1	%		63.8	%		57.0	%		73.0	%		56.9	%		66.4	%		62.1	%		64.8	%
Policy acquisition cost ratio		20.1	%		19.4	%		20.4	%		20.3	%		20.2	%		20.0	%		20.2	%		20.2	%
Administrative expense ratio		5.3	%		5.6	%		5.6	%		6.3	%		6.0	%		5.5	%		6.0	%		6.1	%

Combined ratio		103.5	%		88.8	%		83.0	%		99.6	%		83.1	%		91.9	%		88.3	%		91.1	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		49.2	%		54.7	%		55.1	%		55.1	%		55.1	%		53.0	%		55.2	%		55.1	%
CAY policy acquisition cost and administrative expense ratio ex Cats		25.6	%		24.9	%		26.1	%		26.3	%		26.2	%		25.5	%		26.2	%		26.3	%

CAY combined ratio ex Cats		74.8	%		79.6	%		81.2	%		81.4	%		81.3	%		78.5	%		81.4	%		81.4	%

Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	(1	)	$	—		$	(11	)	$	—		$	(1	)	$	—		$	(11	)
Catastrophe losses—pre-tax	$	305		$	109		$	21		$	214		$	83		$	435		$	329		$	543
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	48		$	(1	)	$	1		$	(7	)	$	(62	)	$	48		$	(88	)	$	(95	)
% Change versus prior year period
Net premiums written		2.8	%		1.4	%		4.8	%		9.2	%		2.7	%		2.9	%		0.4	%		2.4	%
Net premiums earned		3.8	%		2.1	%		3.9	%		4.8	%		1.7	%		3.3	%		1.3	%		2.2	%
Other ratios
Net premiums written/gross premiums written		89	%		88	%		88	%		87	%		88	%		88	%		88	%		88	%


NA Personal		Page 13

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

North America Agricultural Insurance


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	1,332		$	652		$	220		$	282		$	1,272		$	2,204		$	2,133		$	2,415
Net premiums written		986			461			157			276			938			1,604			1,534			1,810
Net premiums earned		971			376			94			421			941			1,441			1,374			1,795
Adjusted losses and loss expenses ⁽¹⁾		845			313			65			453			880			1,223			1,163			1,616
Policy acquisition costs		56			29			11			(6	)		56			96			90			84
Administrative expenses		5			3			4			(3	)		4			12			9			6

Underwriting income (loss)		65			31			14			(23	)		1			110			112			89
Net investment income		7			7			9			8			8			23			22			30
Other income (expense)—operating		—			(1	)		—			—			—			(1	)		(1	)		(1	)
Amortization expense of purchased intangibles		(7	)		(6	)		(7	)		(7	)		(7	)		(20	)		(21	)		(28	)

Segment income (loss)	$	65		$	31		$	16		$	(22	)	$	2		$	112		$	112		$	90

CAY underwriting income (loss) ex Cats	$	93		$	37		$	8		$	(59	)	$	22		$	138		$	76		$	17
Combined ratio
Loss and loss expense ratio		87.1	%		83.1	%		69.6	%		107.6	%		93.5	%		84.9	%		84.7	%		90.1	%
Policy acquisition cost ratio		5.8	%		7.8	%		11.1	%		-1.5	%		6.0	%		6.6	%		6.6	%		4.7	%
Administrative expense ratio		0.4	%		0.9	%		4.1	%		-0.7	%		0.4	%		0.8	%		0.6	%		0.3	%

Combined ratio		93.3	%		91.8	%		84.8	%		105.4	%		99.9	%		92.3	%		91.9	%		95.1	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		84.2	%		81.5	%		76.2	%		113.6	%		91.3	%		83.0	%		87.4	%		93.5	%
CAY policy acquisition cost and administrative expense ratio ex Cats		6.2	%		8.7	%		14.7	%		0.3	%		6.4	%		7.4	%		7.2	%		5.6	%

CAY combined ratio ex Cats		90.4	%		90.2	%		90.9	%		113.9	%		97.7	%		90.4	%		94.6	%		99.1	%

Catastrophe losses—pre-tax	$	10		$	6		$	8		$	1		$	3		$	24		$	7		$	8
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	18		$	—		$	(14	)	$	(37	)	$	18		$	4		$	(43	)	$	(80	)
% Change versus prior year period
Net premiums written		5.0	%		-1.1	%		21.2	%		40.4	%		6.2	%		4.5	%		11.2	%		14.8	%
Net premiums earned		3.2	%		-0.5	%		71.8	%		32.4	%		9.8	%		4.9	%		9.8	%		14.4	%
Other ratios
Net premiums written/gross premiums written		74	%		71	%		71	%		98	%		74	%		73	%		72	%		75	%

(1)	Includes Realized gains (losses) on crop derivatives.


NA Agriculture		Page 14

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Overseas General Insurance


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	2,756		$	2,561		$	3,131		$	2,964		$	2,705		$	8,448		$	8,444		$	11,408
Net premiums written		2,238			2,021			2,598			2,381			2,228			6,857			6,881			9,262
Net premiums earned		2,337			2,194			2,307			2,287			2,256			6,838			6,595			8,882
Losses and loss expenses		1,192			1,485			1,258			1,221			1,154			3,935			3,385			4,606
Policy acquisition costs		637			624			642			646			630			1,903			1,855			2,501
Administrative expenses		260			241			258			262			257			759			771			1,033

Underwriting income (loss)		248			(156	)		149			158			215			241			584			742
Adjusted net investment income		130			121			145			144			147			396			444			588
Other income (expense)—operating		(1	)		(5	)		(4	)		(1	)		(2	)		(10	)		(11	)		(12	)
Amortization expense of purchased intangibles		(10	)		(11	)		(12	)		(11	)		(11	)		(33	)		(34	)		(45	)

Segment income (loss)	$	367		$	(51	)	$	278		$	290		$	349		$	594		$	983		$	1,273

CAY underwriting income ex Cats	$	283		$	207		$	235		$	202		$	225		$	725		$	604		$	806
Combined ratio
Loss and loss expense ratio		51.0	%		67.7	%		54.5	%		53.3	%		51.1	%		57.6	%		51.3	%		51.9	%
Policy acquisition cost ratio		27.3	%		28.4	%		27.8	%		28.3	%		28.0	%		27.8	%		28.1	%		28.1	%
Administrative expense ratio		11.1	%		11.0	%		11.2	%		11.5	%		11.4	%		11.1	%		11.7	%		11.6	%

Combined ratio		89.4	%		107.1	%		93.5	%		93.1	%		90.5	%		96.5	%		91.1	%		91.6	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		49.5	%		51.6	%		50.8	%		51.5	%		50.7	%		50.6	%		51.0	%		51.2	%
CAY policy acquisition cost and administrative expense ratio ex Cats		38.4	%		39.1	%		39.0	%		39.7	%		39.3	%		38.8	%		39.8	%		39.7	%

CAY combined ratio ex Cats		87.9	%		90.7	%		89.8	%		91.2	%		90.0	%		89.4	%		90.8	%		90.9	%

Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	(16	)	$	—		$	(4	)	$	—		$	(16	)	$	—		$	(4	)
Catastrophe losses—pre-tax	$	95		$	383		$	90		$	83		$	35		$	568		$	69		$	152
Favorable prior period development (PPD)—pre-tax	$	(60	)	$	(36	)	$	(4	)	$	(43	)	$	(25	)	$	(100	)	$	(49	)	$	(92	)
% Change versus prior year period
Net premiums written		0.5	%		-10.5	%		8.5	%		6.3	%		7.1	%		-0.3	%		3.3	%		4.0	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					-9.4	%											0.0	%
Net premiums earned		3.6	%		-1.5	%		9.2	%		4.6	%		4.6	%		3.7	%		2.6	%		3.1	%
Net premiums written constant $		2.8	%		-5.1	%		9.7	%		8.8	%		10.7	%		2.7	%		8.3	%		8.4	%
Net premiums written adjusted for COVID-19 exposures ⁽¹⁾					-4.0	%											3.1	%
Net premiums earned constant $		5.7	%		4.2	%		10.5	%		6.9	%		8.0	%		6.8	%		7.9	%		7.6	%
Other ratios
Net premiums written/gross premiums written		81	%		79	%		83	%		80	%		82	%		81	%		81	%		81	%

Production by Region—Net premiums written	3Q-20			3Q-19			% Change			Constant $ % Change			YTD 2020			YTD 2019			% Change			Constant $ % Change
Europe	$	915		$	782			17.1	%		15.5	%	$	2,994		$	2,698			11.0	%		11.8	%
Latin America		442			551			-19.7	%		-8.7	%		1,414			1,657			-14.6	%		-5.5	%
Asia		794			798			-0.5	%		-1.2	%		2,203			2,259			-2.5	%		-1.5	%
Other⁽²⁾		87			97			-10.3	%		-9.7	%		246			267			-8.0	%		-6.6	%

Total	$	2,238		$	2,228			0.5	%		2.8	%	$	6,857		$	6,881			-0.3	%		2.7	%

(1)	YTD 2020 net premiums written were adversely impacted by COVID-19 including $24 million recorded in Q2 2020 of exposure adjustments on in-force policies.

(2)	Primarily includes Eurasia and Africa, and the company’s international supplemental A&H business of Combined Insurance.


Overseas General Insurance		Page 15

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global Reinsurance


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	198		$	262		$	242		$	111		$	150		$	702		$	608		$	719
Net premiums written		181			207			218			109			141			606			540			649
Net premiums earned		171			163			186			167			160			520			487			654
Losses and loss expenses		154			73			87			107			79			314			245			352
Policy acquisition costs		40			42			45			42			42			127			127			169
Administrative expenses		9			9			10			9			9			28			26			35

Underwriting income (loss)		(32	)		39			44			9			30			51			89			98
Adjusted net investment income		85			60			69			73			71			214			206			279
Other income (expense)—operating		—			(1	)		—			(1	)		—			(1	)		—			(1	)

Segment income	$	53		$	98		$	113		$	81		$	101		$	264		$	295		$	376

CAY underwriting income ex Cats	$	30		$	36		$	37		$	28		$	28		$	103		$	89		$	117
Combined ratio
Loss and loss expense ratio		89.6	%		45.5	%		46.5	%		64.2	%		49.6	%		60.3	%		50.3	%		53.9	%
Policy acquisition cost ratio		23.5	%		25.5	%		24.5	%		24.7	%		26.2	%		24.5	%		26.1	%		25.7	%
Administrative expense ratio		5.2	%		5.6	%		5.1	%		5.7	%		5.3	%		5.3	%		5.3	%		5.4	%

Combined ratio		118.3	%		76.6	%		76.1	%		94.6	%		81.1	%		90.1	%		81.7	%		85.0	%

CAY combined ratio ex Cats
CAY loss and loss expense ratio ex Cats		49.7	%		46.8	%		50.4	%		52.5	%		49.9	%		49.0	%		50.0	%		50.6	%
CAY policy acquisition cost and administrative expense ratio ex Cats		31.1	%		31.4	%		29.6	%		30.8	%		32.2	%		30.7	%		31.7	%		31.5	%

CAY combined ratio ex Cats		80.8	%		78.2	%		80.0	%		83.3	%		82.1	%		79.7	%		81.7	%		82.1	%

Catastrophe reinstatement premiums collected—pre-tax	$	7		$	—		$	—		$	1		$	2		$	7		$	2		$	3
Catastrophe losses—pre-tax	$	75		$	13		$	—		$	16		$	25		$	88		$	35		$	51
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	(6	)	$	(16	)	$	(7	)	$	4		$	(25	)	$	(29	)	$	(33	)	$	(29	)
% Change versus prior year period
Net premiums written as reported		28.4	%		4.6	%		8.4	%		-6.0	%		-14.0	%		12.2	%		-2.5	%		-3.2	%
Net premiums earned as reported		6.7	%		2.9	%		10.4	%		-5.8	%		1.9	%		6.8	%		-1.1	%		-2.3	%
Net premiums written constant $		27.2	%		4.9	%		7.9	%		-4.8	%		-12.8	%		11.9	%		-1.1	%		-1.7	%
Net premiums earned constant $		5.4	%		4.0	%		10.2	%		-5.0	%		3.1	%		6.6	%		0.7	%		-0.8	%
Other ratios
Net premiums written/gross premiums written		91	%		79	%		90	%		99	%		94	%		86	%		89	%		90	%


Global Reinsurance		Page 16

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Life Insurance


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	645		$	653		$	683		$	652		$	642		$	1,981		$	1,865		$	2,517
Net premiums written		610			619			645			622			612			1,874			1,770			2,392
Net premiums earned		599			608			631			613			598			1,838			1,730			2,343
Losses and loss expenses		183			171			202			176			190			556			581			757
Adjusted policy benefits		174			183			185			201			165			542			495			696
Policy acquisition costs		175			196			180			166			176			551			454			620
Administrative expenses		80			82			76			86			80			238			237			323
Net investment income		95			95			95			95			92			285			278			373

Life Insurance underwriting income⁽¹⁾		82			71			83			79			79			236			241			320
Other income (expense)—operating		23			17			12			11			17			52			37			48
Amortization expense of purchased intangibles		(1	)		(1	)		(1	)		—			(1	)		(3	)		(2	)		(2	)

Segment income	$	104		$	87		$	94		$	90		$	95		$	285		$	276		$	366

% Change versus prior year period
Net premiums written		-0.4	%		7.0	%		11.4	%		6.9	%		8.5	%		5.9	%		4.8	%		5.3	%
Net premiums earned		0.0	%		6.5	%		12.6	%		6.6	%		8.7	%		6.2	%		5.3	%		5.6	%
Net premiums written constant $		0.2	%		8.5	%		11.3	%		6.8	%		9.1	%		6.5	%		6.2	%		6.4	%
Net premiums earned constant $		0.7	%		8.0	%		12.5	%		6.5	%		9.3	%		6.9	%		6.7	%		6.6	%

(1) We assess the performance of our Life Insurance business based on Life Insurance underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets. International life insurance net premiums written and deposits breakdown (excludes Combined North America and Life reinsurance businesses):
										Constant $			YTD			YTD						Constant $
	3Q-20			3Q-19			% Change			% Change			2020			2019			% Change			% Change
International life insurance net premiums written	$	280		$	259			8.3	%		9.4	%	$	865		$	715			21.0	%		22.4	%
International life insurance deposits ⁽²⁾		363			369			-1.8	%		-5.7	%		1,115			1,059			5.3	%		3.2	%

Total international life insurance net premiums written and deposits	$	643		$	628			2.3	%		0.4	%	$	1,980		$	1,774			11.6	%		10.8	%

International life insurance segment income	$	52		$	40			26.4	%		28.1	%	$	134		$	116			15.1	%		16.3	%

(2)	Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.


Life Insurance		Page 17

Chubb Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Corporate


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Gross premiums written	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net premiums written		—			—			—			—			—			—			—			—
Net premiums earned		—			—			—			—			—			—			—			—
Losses and loss expenses		55			276			11			75			38			342			83			158
Policy acquisition costs		—			—			—			—			—			—			—			—
Administrative expenses		71			77			66			108			74			214			211			319

Underwriting loss		(126	)		(353	)		(77	)		(183	)		(112	)		(556	)		(294	)		(477	)
Adjusted net investment income		9			8			8			8			9			25			28			36
Other income (expense)—operating		(7	)		(9	)		(16	)		(6	)		(7	)		(32	)		(18	)		(24	)
Adjusted interest expense		(135	)		(134	)		(137	)		(140	)		(143	)		(406	)		(433	)		(573	)
Amortization expense of purchased intangibles		(52	)		(51	)		(50	)		(55	)		(54	)		(153	)		(163	)		(218	)
Income tax (expense) benefit		(172	)		46			(237	)		(173	)		(219	)		(363	)		(637	)		(810	)

Core operating loss		(483	)		(493	)		(509	)		(549	)		(526	)		(1,485	)		(1,517	)		(2,066	)
Chubb integration expenses, net of tax		—			—			—			(12	)		(2	)		—			(7	)		(19	)
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(19	)		(19	)		(22	)		(25	)		(24	)		(60	)		(89	)		(114	)
Adjusted net realized gains (losses), net of tax⁽¹⁾		306			(58	)		(946	)		170			(119	)		(698	)		(224	)		(54	)

Net loss	$	(196	)	$	(570	)	$	(1,477	)	$	(416	)	$	(671	)	$	(2,243	)	$	(1,837	)	$	(2,253	)

Unfavorable prior period development (PPD)—pre-tax	$	54		$	274		$	11		$	74		$	36		$	339		$	79		$	153

(1)	Includes Net realized gains (losses) related to unconsolidated entities.


Corporate		Page 18

Chubb Limited

Loss Reserve Rollforward

(in millions of U.S. dollars, except ratios)

(Unaudited)


	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2018	$	62,960		$	14,689		$	48,271
Losses and loss expenses incurred		5,261			1,163			4,098
Losses and loss expenses paid		(5,197	)		(1,178	)		(4,019	)		98	%
Other (incl. foreign exch. revaluation)		119			33			86

Balance at March 31, 2019	$	63,143		$	14,707		$	48,436
Losses and loss expenses incurred		5,758			1,043			4,715
Losses and loss expenses paid		(5,581	)		(1,489	)		(4,092	)		87	%
Other (incl. foreign exch. revaluation)		(115	)		(28	)		(87	)

Balance at June 30, 2019	$	63,205		$	14,233		$	48,972
Losses and loss expenses incurred		6,783			1,731			5,052
Losses and loss expenses paid		(6,751	)		(1,568	)		(5,183	)		103	%
Other (incl. foreign exch. revaluation)		(225	)		(64	)		(161	)

Balance at September 30, 2019	$	63,012		$	14,332		$	48,680
Losses and loss expenses incurred		5,855			990			4,865
Losses and loss expenses paid		(6,382	)		(1,203	)		(5,179	)		106	%
Other (incl. foreign exch. revaluation)		205			62			143

Balance at December 31, 2019	$	62,690		$	14,181		$	48,509
Losses and loss expenses incurred		5,569			1,084			4,485
Losses and loss expenses paid		(5,345	)		(1,090	)		(4,255	)		95	%
Other (incl. foreign exch. revaluation)		(700	)		(135	)		(565	)

Balance at March 31, 2020	$	62,214		$	14,040		$	48,174
Losses and loss expenses incurred		7,825			1,248			6,577
Losses and loss expenses paid		(4,874	)		(1,024	)		(3,850	)		59	%⁽¹⁾
Other (incl. foreign exch. revaluation)		534			97			437

Balance at June 30, 2020	$	65,699		$	14,361		$	51,338
Losses and loss expenses incurred		7,288			1,453			5,835
Losses and loss expenses paid		(5,342	)		(1,084	)		(4,258	)		73	%
Other (incl. foreign exch. revaluation)		260			37			223

Balance at September 30, 2020	$	67,905		$	14,767		$	53,138
Add net recoverable on paid losses		—			903			(903	)

Balance including net recoverable on paid losses	$	67,905		$	15,670		$	52,235

(1)	The losses and loss expenses incurred increased $2.1 billion in Q2 2020, principally reflecting the significant catastrophe events in the period, principally COVID-19, and resulting in the 59% net paid to incurred ratio for Q2 2020.


Loss Reserve Rollforward		Page 19

Chubb Limited

Reinsurance Recoverable Analysis

(in millions of U.S. dollars)

(Unaudited)

Net Reinsurance Recoverable by Division


	September 30			June 30			March 31			December 31
	2020			2020			2020			2019
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	784		$	736		$	748		$	887
Brandywine and Other Run-off		184			173			177			189

Total	$	968		$	909		$	925		$	1,076

Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	13,707		$	13,315		$	13,088		$	13,223
Brandywine and Other Run-off		1,315			1,286			1,190			1,198

Total	$	15,022		$	14,601		$	14,278		$	14,421

Gross reinsurance recoverable
Active operations	$	14,491		$	14,051		$	13,836		$	14,110
Brandywine and Other Run-off		1,499			1,459			1,367			1,387

Total	$	15,990		$	15,510		$	15,203		$	15,497

Provision for uncollectible reinsurance ⁽¹⁾
Active operations	$	(185	)	$	(177	)	$	(176	)	$	(180	)
Brandywine and Other Run-off		(135	)		(126	)		(129	)		(136	)

Total	$	(320	)	$	(303	)	$	(305	)	$	(316	)

Net reinsurance recoverable
Active operations	$	14,306		$	13,874		$	13,660		$	13,930
Brandywine and Other Run-off		1,364			1,333			1,238			1,251

Total	$	15,670		$	15,207		$	14,898		$	15,181

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $3.4 billion.


Reinsurance Recoverable		Page 20

Chubb Limited

Investment Portfolio

(in millions of U.S. dollars)

(Unaudited)


	September 30					June 30					March 31					December 31
	2020					2020					2020					2019
Market Value
Fixed maturities available for sale	$	89,852				$	86,712				$	81,523				$	85,488
Fixed maturities held to maturity		12,473					12,620					12,468					13,005
Short-term investments		4,660					4,003					3,586					4,291

Total fixed maturities	$	106,985				$	103,335				$	97,577				$	102,784

Asset Allocation by Market Value
U.S. Treasury / Agency	$	4,100		4	%	$	4,190		4	%	$	4,296		4	%	$	4,630		5	%
Corporate and asset-backed securities		37,712		35	%		36,345		35	%		32,990		33	%		34,259		33	%
Mortgage-backed securities		21,590		20	%		20,529		20	%		20,252		21	%		21,588		21	%
Municipal		12,267		12	%		12,291		12	%		12,266		13	%		12,824		12	%
Non-U.S.		26,656		25	%		25,977		25	%		24,187		25	%		25,192		25	%
Short-term investments		4,660		4	%		4,003		4	%		3,586		4	%		4,291		4	%

Total fixed maturities	$	106,985		100	%	$	103,335		100	%	$	97,577		100	%	$	102,784		100	%

Credit Quality by Market Value
AAA	$	16,177		15	%	$	15,411		15	%	$	14,577		15	%	$	15,714		15	%
AA		36,759		34	%		35,600		35	%		35,437		36	%		37,504		37	%
A		19,359		18	%		19,703		19	%		18,375		19	%		19,236		19	%
BBB		17,009		16	%		15,690		15	%		13,617		14	%		13,650		13	%
BB		9,609		9	%		9,302		9	%		8,661		9	%		9,474		9	%
B		7,466		7	%		7,124		7	%		6,487		7	%		6,897		7	%
Other		606		1	%		505		0	%		423		0	%		309		0	%

Total fixed maturities	$	106,985		100	%	$	103,335		100	%	$	97,577		100	%	$	102,784		100	%

Cost/Amortized Cost, net
Fixed maturities available for sale ⁽¹⁾	$	85,167				$	82,671				$	80,776				$	82,580
Fixed maturities held to maturity ⁽¹⁾		11,651					11,845					12,022					12,581
Short-term investments⁽¹⁾		4,662					4,002					3,582					4,291

Subtotal fixed maturities		101,480					98,518					96,380					99,452
Equity securities		3,088					2,394					2,068					812
Other investments		6,796					5,923					6,075					6,062

Total investment portfolio	$	111,364				$	106,835				$	104,523				$	106,326

Avg. duration of fixed maturities		4.0 years					4.0 years					3.9 years					3.8 years
Avg. market yield of fixed maturities		1.9	%				2.2	%				3.0	%				2.7	%
Avg. credit quality		A/Aa					A/Aa					A/Aa					A/Aa
Avg. yield on invested assets⁽²⁾		3.3	%				3.3	%				3.5	%				3.5	%

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

(2)	Calculated using adjusted net investment income.


Investments		Page 21

Chubb Limited

Investment Portfolio—2

(in millions of U.S. dollars)

(Unaudited)

Mortgage-backed Fixed Income Portfolio


Mortgage-backed securities	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

Market Value at September 30, 2020
Agency residential mortgage-backed securities (RMBS)	$	127	$	17,765	$	—	$	—	$	—	$	17,892
Non-agency RMBS		147		43		78		16		10		294
Commercial mortgage-backed securities		2,949		303		137		13		2		3,404

Total mortgage-backed securities at market value	$	3,223	$	18,111	$	215	$	29	$	12	$	21,590


U.S. Corporate and Asset-backed Fixed Income Portfolios

Market Value at September 30, 2020			S&P Credit Rating
			Investment Grade
			AAA		AA		A		BBB		Total

Asset-backed			$	3,253	$	474	$	33	$	35	$	3,795
Banks				—		12		1,940		2,144		4,096
Basic Materials				—		—		91		285		376
Communications				—		215		567		1,306		2,088
Consumer, Cyclical				—		285		508		737		1,530
Consumer, Non-Cyclical				55		674		1,597		1,836		4,162
Diversified Financial Services				7		210		380		460		1,057
Energy				—		87		209		710		1,006
Industrial				—		14		884		914		1,812
Utilities				—		3		1,092		560		1,655
All Others				247		442		1,676		1,158		3,523

Total			$	3,562	$	2,416	$	8,977	$	10,145	$	25,100


Market Value at September 30, 2020					S&P Credit Rating
					Below Investment Grade
					BB		B		CCC		Total

Asset-backed					$	5	$	19	$	3	$	27
Banks						—		—		—		—
Basic Materials						323		229		1		553
Communications						839		854		57		1,750
Consumer, Cyclical						1,038		959		159		2,156
Consumer, Non-Cyclical						1,408		1,415		82		2,905
Diversified Financial Services						220		101		7		328
Energy						736		329		12		1,077
Industrial						839		836		25		1,700
Utilities						348		35		1		384
All Others						871		796		65		1,732

Total					$	6,627	$	5,573	$	412	$	12,612


Investments 2		Page 22

Chubb Limited

Investment Portfolio—3

(in millions of U.S. dollars)

(Unaudited)

Non-U.S. Fixed Income Portfolio

September 30, 2020


Non-U.S. Government Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

Republic of Korea	$	—	$	1,058	$	—	$	—	$	—	$	1,058
Canada		942		—		—		—		—		942
United Kingdom		—		905		—		—		—		905
Province of Ontario		—		—		681		—		—		681
Kingdom of Thailand		—		—		612		—		—		612
Province of Quebec		—		539		—		—		—		539
Federative Republic of Brazil		—		—		—		—		512		512
Commonwealth of Australia		451		—		3		—		—		454
United Mexican States		—		—		—		453		—		453
Socialist Republic of Vietnam		—		—		—		—		380		380
Other Non-U.S. Government Securities		862		1,658		1,173		902		891		5,486

Total	$	2,255	$	4,160	$	2,469	$	1,355	$	1,783	$	12,022


Non-U.S. Corporate Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total

United Kingdom	$	70	$	54	$	777	$	940	$	447	$	2,288
Canada		100		264		441		606		422		1,833
France		8		46		700		377		58		1,189
United States⁽¹⁾		—		—		198		307		650		1,155
Australia		105		204		319		236		23		887
Netherlands		53		94		215		147		108		617
Japan		—		5		505		71		—		581
Switzerland		57		4		270		203		32		566
Germany		62		45		108		272		49		536
China		—		—		282		89		72		443
Other Non-U.S. Corporate Securities		356		439		1,014		1,644		1,086		4,539

Total	$	811	$	1,155	$	4,829	$	4,892	$	2,947	$	14,634

(1)	Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.


Investments 3		Page 23

Chubb Limited

Investment Portfolio—4

(in millions of U.S. dollars)

(Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures


	September 30, 2020	Market Value		Rating
1	Wells Fargo & Co	$	762	BBB+
2	Bank of America Corp		670	A-
3	JP Morgan Chase & Co		658	A-
4	Comcast Corp		511	A-
5	Morgan Stanley		459	BBB+
6	Citigroup Inc		441	BBB+
7	Verizon Communications Inc		430	BBB+
8	AT&T Inc		393	BBB
9	Goldman Sachs Group Inc		377	BBB+
10	HSBC Holdings Plc		376	A-


Investments 4		Page 24

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Three months ended September 30, 2020
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax

Fixed income investments ⁽¹⁾	$	58		$	(8	)	$	50		$	638		$	(95	)	$	543		$	696		$	(103	)	$	593
Public equity:
Realized gains (losses) on sales		34			(2	)		32			—			—			—			34			(2	)		32
Mark-to-market		(34	)		5			(29	)		—			—			—			(34	)		5			(29	)
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		436			(8	)		428			—			—			—			436			(8	)		428

Total investment portfolio		494			(13	)		481			638			(95	)		543			1,132			(108	)		1,024
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(6	)		—			(6	)		—			—			—			(6	)		—			(6	)
Foreign exchange		(222	)		38			(184	)		246			(13	)		233			24			25			49
Partially-owned entities ⁽³⁾		17			—			17			—			—			—			17			—			17
Other		(3	)		1			(2	)		(23	)		5			(18	)		(26	)		6			(20	)

Net gains (losses)	$	280		$	26		$	306		$	861		$	(103	)	$	758		$	1,141		$	(77	)	$	1,064


(1) The quarter includes pre-tax realized gains on fixed income derivatives of $9 million, a net reduction of the valuation allowance of expected credit losses of $42 million, and impairment of $11 million for fixed maturities during the quarter. (2) The quarter includes $52 million of losses on applicable hedges. These losses are both pre-tax and after-tax. (3) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.
	Three months ended September 30, 2019
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax

Fixed income investments ⁽⁴⁾	$	(106	)	$	2		$	(104	)	$	705		$	(125	)	$	580		$	599		$	(123	)	$	476
Public equity ⁽⁴⁾:
Realized gains (losses) on sales		22			(5	)		17			—			—			—			22			(5	)		17
Mark-to-market		(21	)		1			(20	)		—			—			—			(21	)		1			(20	)
Private equity:
Realized gains (losses) on sales		(2	)		—			(2	)		—			—			—			(2	)		—			(2	)
Mark-to-market		34			(2	)		32			—			—			—			34			(2	)		32

Total investment portfolio		(73	)		(4	)		(77	)		705			(125	)		580			632			(129	)		503
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁵⁾		(112	)		—			(112	)		—			—			—			(112	)		—			(112	)
Foreign exchange		84			(15	)		69			(193	)		8			(185	)		(109	)		(7	)		(116	)
Partially-owned entities ⁽⁶⁾		5			—			5			—			—			—			5			—			5
Other		(4	)		—			(4	)		(17	)		4			(13	)		(21	)		4			(17	)

Net gains (losses)	$	(100	)	$	(19	)	$	(119	)	$	495		$	(113	)	$	382		$	395		$	(132	)	$	263

(4)	The quarter includes pre-tax realized losses on derivatives of: $95 million in fixed income and $2 million in public equity. Other-than-temporary impairments for the quarter in realized losses were $24 million pre-tax for fixed maturities.

(5)	The quarter includes $6 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.


Net Gains (Losses)		Page 25

Chubb Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Nine months ended September 30, 2020
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax

Fixed income investments ⁽¹⁾	$	(307	)	$	32		$	(275	)	$	1,759		$	(335	)	$	1,424		$	1,452		$	(303	)	$	1,149
Public equity ⁽¹⁾:
Realized gains (losses) on sales		239			(44	)		195			—			—			—			239			(44	)		195
Mark-to-market		(78	)		8			(70	)		—			—			—			(78	)		8			(70	)
Private equity:
Realized gains (losses) on sales		—			—			—			—			—			—			—			—			—
Mark-to-market		229			(6	)		223			—			—			—			229			(6	)		223

Total investment portfolio		83			(10	)		73			1,759			(335	)		1,424			1,842			(345	)		1,497
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽²⁾		(456	)		—			(456	)		—			—			—			(456	)		—			(456	)
Foreign exchange		(351	)		55			(296	)		(168	)		27			(141	)		(519	)		82			(437	)
Partially-owned entities ⁽³⁾		15			—			15			—			—			—			15			—			15
Other		(43	)		9			(34	)		(59	)		13			(46	)		(102	)		22			(80	)

Net gains (losses)	$	(752	)	$	54		$	(698	)	$	1,532		$	(295	)	$	1,237		$	780		$	(241	)	$	539

(1)

Year to date includes pre-tax realized gains on equity derivatives of $42 million, realized losses on fixed income derivatives of $4 million, expected credit losses of $4 million, and impairments of $163 million related to certain securities the company intended to sell and securities written to market entering default.

(2)	Year to date includes $30 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.


	Nine months ended September 30, 2019
	Realized Gains (Losses)									Unrealized Gains (Losses)									Realized and Unrealized Gains (Losses)
	Gains			Tax			Gains			Gains			Tax			Gains			Gains			Tax			Gains
	(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)			(Losses)			(Expense)			(Losses)
	Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax			Pre-Tax			Benefit			After-Tax
Fixed income investments ⁽⁴⁾	$	(417	)	$	10		$	(407	)	$	3,834		$	(676	)	$	3,158		$	3,417		$	(666	)	$	2,751
Public equity ⁽⁴⁾:
Realized gains (losses) on sales		23			(5	)		18			—			—			—			23			(5	)		18
Mark-to-market		9			(3	)		6			—			—			—			9			(3	)		6
Private equity:
Realized gains (losses) on sales		(4	)		—			(4	)		—			—			—			(4	)		—			(4	)
Mark-to-market		227			—			227			—			—			—			227			—			227

Total investment portfolio		(162	)		2			(160	)		3,834			(676	)		3,158			3,672			(674	)		2,998
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges ⁽⁵⁾		(146	)		—			(146	)		—			—			—			(146	)		—			(146	)
Foreign exchange		86			(14	)		72			(143	)		3			(140	)		(57	)		(11	)		(68	)
Partially-owned entities ⁽⁶⁾		15			(1	)		14			—			—			—			15			(1	)		14
Other		(4	)		—			(4	)		(62	)		13			(49	)		(66	)		13			(53	)

Net gains (losses)	$	(211	)	$	(13	)	$	(224	)	$	3,629		$	(660	)	$	2,969		$	3,418		$	(673	)	$	2,745

(4)	Year to date includes pre-tax realized losses on derivatives of: $374 million in fixed income and $34 million in public equity. Year to date other-than-temporary impairments in realized losses were $50 million pre-tax for fixed maturities.

(5)	Year to date includes $89 million of losses on applicable hedges. These losses are both pre-tax and after-tax.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.


Net Gains (Losses) 2		Page 26

Chubb Limited

Debt and Capital

(in millions of U.S. dollars, except ratios)

(Unaudited)


	September 30			June 30			March 31			December 31			December 31
	2020			2020			2020			2019			2018
Financial Debt:
Total short-term debt	$	1,300		$	1,300		$	1,300		$	1,299		$	509
Total long-term debt ⁽¹⁾		14,830			13,656			13,510			13,559			12,087

Total financial debt	$	16,130		$	14,956		$	14,810		$	14,858		$	12,596
Hybrid debt:
Total trust preferred securities		308			308			308			308			308

Total	$	16,438		$	15,264		$	15,118		$	15,166		$	12,904

Capitalization:
Shareholders’ equity	$	56,413		$	54,760		$	52,197		$	55,331		$	50,312
Hybrid debt		308			308			308			308			308
Financial debt		16,130			14,956			14,810			14,858			12,596

Total capitalization	$	72,851		$	70,024		$	67,315		$	70,497		$	63,216

Leverage ratios (based on total capital):
Hybrid debt		0.4	%		0.4	%		0.5	%		0.4	%		0.5	%
Financial debt ⁽¹⁾		22.1	%		21.4	%		22.0	%		21.1	%		19.9	%

Total hybrid & financial debt		22.5	%		21.8	%		22.5	%		21.5	%		20.4	%

Note: As of September 30, 2020, there was $1.7 billion usage of credit facilities on total capacity of $4.0 billion.

(1)

In September 2020, the company issued $1.0 billion of senior notes at 1.375% due 2030. At September 30, 2020, and December 31, 2019, total debt included $2.3 billion and $1.3 billion, respectively, of senior notes issued to provide proceeds to retire existing debt coming due in November 2022 and November 2020, respectively. These prefundings had the effect of increasing the leverage ratios at September 30, 2020, and December 31, 2019, by 2.5 percentage points and 1.4 percentage points, respectively.


Debt and Capital		Page 27

Chubb Limited

Computation of Basic and Diluted Earnings Per Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)


	Three months ended September 30						Nine months ended September 30
	2020			2019			2020			2019
Numerator
Core operating income to common shares	$	907		$	1,236		$	1,873		$	3,601
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax		(23	)		(32	)		(74	)		(111	)
Tax benefit on amortization adjustment		4			8			14			22
Chubb integration expenses, pre-tax		—			(2	)		—			(9	)
Tax benefit on Chubb integration expenses		—			—			—			2
Adjusted net realized gains (losses), pre-tax		280			(100	)		(752	)		(211	)
Tax (expense) benefit on adjusted net realized gains (losses)		26			(19	)		54			(13	)

Net income	$	1,194		$	1,091		$	1,115		$	3,281

Rollforward of Common Shares Outstanding
Shares—beginning of period		451,360,023			456,077,819			451,971,567			459,203,378
Repurchase of shares		—			(3,079,618	)		(2,266,150	)		(8,417,838	)
Shares issued, excluding option exercises		(13,731	)		(76,142	)		1,013,831			1,146,942
Issued for option exercises		29,902			611,583			656,946			1,601,160

Shares—end of period		451,376,194			453,533,642			451,376,194			453,533,642

Denominator
Weighted average shares outstanding ⁽¹⁾		451,794,046			454,975,143			451,683,093			456,987,560
Effect of other dilutive securities		1,471,434			3,175,226			1,894,699			2,937,026

Adj. wtd. avg. shares outstanding and assumed conversions		453,265,480			458,150,369			453,577,792			459,924,586

Basic earnings per share
Core operating income	$	2.01		$	2.72		$	4.15		$	7.88
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(0.04	)		(0.06	)		(0.13	)		(0.19	)
Chubb integration expenses, net of tax		—			—			—			(0.02	)
Adjusted net realized gains (losses), net of tax		0.67			(0.26	)		(1.55	)		(0.49	)

Net income	$	2.64		$	2.40		$	2.47		$	7.18

Diluted earnings per share
Core operating income	$	2.00		$	2.70		$	4.13		$	7.83
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax		(0.04	)		(0.06	)		(0.13	)		(0.19	)
Chubb integration expenses, net of tax		—			—			—			(0.02	)
Adjusted net realized gains (losses), net of tax		0.67			(0.26	)		(1.54	)		(0.49	)

Net income	$	2.63		$	2.38		$	2.46		$	7.13

(1)	Includes unvested restricted stock units that are not included in common shares outstanding as the shares are not issued until time of vesting, but are eligible to receive dividends (participating securities).


Earnings per share		Page 28

Chubb Limited

Book Value and Book Value per Common Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)

Reconciliation of Book Value per Common Share


	September 30			June 30			March 31			December 31			September 30
	2020			2020			2020			2019			2019
Shareholders’ equity	$	56,413		$	54,760		$	52,188		$	55,331		$	54,572
Less: goodwill and other intangible assets, net of tax		19,802			19,783			19,569			20,012			20,010

Numerator for tangible book value per share	$	36,611		$	34,977		$	32,619		$	35,319		$	34,562

Book value—% change over prior quarter		3.0	%		4.9	%		-5.7	%		1.4	%		1.4	%
Tangible book value—% change over prior quarter		4.7	%		7.2	%		-7.6	%		2.2	%		2.8	%
Denominator		451,376,194			451,360,023			451,367,782			451,971,567			453,533,642

Book value per common share	$	124.98		$	121.32		$	115.62		$	122.42		$	120.33
Tangible book value per common share	$	81.11		$	77.49		$	72.27		$	78.14		$	76.21
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter ⁽¹⁾	$	54,760		$	52,188		$	55,259		$	54,572		$	53,802
Core operating income (loss)		907			(254	)		1,220			1,040			1,236
Amortization of fair value adjustment of acquired invested assets and long-term debt		(19	)		(19	)		(22	)		(25	)		(24	)
Chubb integration expenses		—			—			—			(12	)		(2	)
Adjusted net realized gains (losses) ⁽²⁾		306			(58	)		(946	)		170			(119	)
Net unrealized gains (losses) on investments		543			2,757			(1,876	)		(70	)		580
Repurchase of shares		—			—			(326	)		(310	)		(478	)
Dividend declared on common shares		(353	)		(353	)		(340	)		(340	)		(341	)
Cumulative translation gains (losses)		233			451			(825	)		177			(185	)
Postretirement benefit liability		(18	)		(17	)		(11	)		(9	)		(13	)
Other⁽³⁾		54			65			55			138			116

	$	56,413		$	54,760		$	52,188		$	55,331		$	54,572

(1)	January 1, 2020 included a $72 million after-tax reduction to beginning equity principally related to the adoption of the current expected credit loss accounting guidance.

(2)	Includes net realized gains (losses) related to unconsolidated entities.

(3)	Other primarily includes proceeds from exercise of stock options and stock compensation, offset by the value of any share cancellations for restricted stock vesting taxes.


Reconciliation Book Value		Page 29

Chubb Limited

Non-GAAP Financial Measures

(Unaudited)

Regulation G—Non-GAAP Financial Measures

In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

Underwriting income (loss) is calculated by subtracting adjusted losses and loss expenses, adjusted policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income (loss) and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, Chubb integration expense, income tax expense and adjusted net realized gains (losses).

CAY underwriting income excluding catastrophe losses (Cats) is underwriting income (loss) adjusted to exclude Cats and prior period development (PPD). We believe it is useful to exclude Cats, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

Adjusted 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 adjusted losses and loss expenses.

Adjusted policy benefits includes gains and losses from fair value changes in separate account assets, as well as the offsetting movement in separate account liabilities, for purposes of reporting Life Insurance underwriting income. The gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP 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 adjusted policy benefits.

Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from the acquisition of The Chubb Corporation (Chubb Corp) and including investment income from partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of three percent that are accounted for under the equity method. The mark-to-market movement on these private equity partnerships are included in adjusted net realized gains (losses) as described below. We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.

Adjusted net realized gains (losses), net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives.

Adjusted interest expense is interest expense excluding the amortization of the fair value adjustment on acquired long-term debt, related to the Chubb Corp acquisition due to the size and complexity of this acquisition.

Other income (expense) — operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities, other income (expense) from private equity partnerships, and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from core operating income (loss) in order to enhance the understanding of our results of underwriting operations as they are heavily influenced by, and fluctuate in part according to, market conditions. Other income (expense) from private equity partnerships and net realized gains and losses related to unconsolidated entities are recorded to Other income (expense) in our income statement on a GAAP basis.

P&C underwriting income and P&C combined ratio exclude the Life Insurance segment. P&C loss and loss expense ratio and P&C combined ratio include adjusted losses and loss expenses in the ratio numerator. P&C expense ratio and P&C combined ratio include policy acquisition costs and administrative expenses in the ratio numerator. A reconciliation of combined ratio to P&C combined ratio is provided on pages 33-36.

CAY P&C combined ratio excluding catastrophe losses excludes Cats and PPD from the P&C combined ratio. We exclude Cats as they are not predictable as to timing and amount and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. The combined ratio numerator is adjusted to exclude Cats, net premiums earned adjustments on PPD, prior period expense adjustments and reinstatement premiums on PPD, and the denominator is adjusted to exclude net premiums earned adjustments on PPD and reinstatement premiums on Cats and PPD. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net premiums earned when calculating the ratios. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our P&C business that may be obscured by these items. This measure is commonly reported among our peer companies and allows for a better comparison.

Expense ratio excluding accident and health (A&H) excludes the impact of our A&H business from our expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.

Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life Insurance and North America Agricultural Insurance segments. The agriculture insurance business is a different business in that it is a public sector and private sector partnership in which insurance rates, premium growth, and risk-sharing is not market-driven like the remainder of the company’s P&C insurance business. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Core operating income (loss), net of tax, excludes from net income, the after-tax impact of adjusted net realized gains (losses), Chubb integration expenses, and the amortization of fair value adjustment of acquired invested assets and long-term debt related to the Chubb Corp acquisition. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) because the amount of these gains (losses) are heavily influenced by, and fluctuate in part according to the availability of market opportunities. We exclude the amortization of the fair value adjustments related to purchased invested assets and long-term debt and Chubb integration expenses due to the size and complexity of this acquisition. These integration expenses are distortive to our results and are not indicative of our underlying profitability. We believe that excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. References to core operating income measures mean net of tax, whether or not noted.

Core operating effective tax rate is income tax expense (benefit) excluding tax expense (benefit) on adjusted net realized gains (losses), tax benefit on amortization of fair value of acquired invested assets and debt, and tax benefit on Chubb integration expenses, divided by income excluding adjusted net realized gains (losses) before tax, amortization of fair value of acquired invested assets and debt before tax, and Chubb integration expenses before tax. We believe the use of this measure is meaningful to show the tax on the underlying performance of our insurance business, by excluding the tax on adjusted net realized gains (losses), the tax on amortization of the fair value adjustments related to purchased invested assets and long-term debt and the tax on Chubb integration expenses. Refer to the definition of core operating income (loss), net of tax above for more information on these adjustments.

Book value per common share, is shareholders’ equity divided by the shares outstanding. Tangible book value per common share, is shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Book value per common share excluding mark-to-market, excludes unrealized investment gains (losses). Tangible book value per common share excluding mark-to-market, excludes goodwill and other intangible assets, net of tax, as well as unrealized investment gains (losses), net of tax. We exclude unrealized investment gains (losses) because the amount of these gains (losses) is heavily influenced by changes in market conditions, including interest rate changes, and we believe that excluding these gains and losses would highlight the underlying growth in book value and tangible book value.

International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because new life deposits are an important component of production and key to our efforts to grow our business.


Reconciliation Non-GAAP		Page 30

Chubb Limited

Non-GAAP Financial Measures—2

(in millions of U.S. dollars, except per share data and ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

Core operating effective tax rate

The following table presents the reconciliation of effective tax rate to the Core operating effective tax rate:


																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Tax expense (benefit), as reported	$	142		$	(62	)	$	215		$	169		$	230		$	295		$	626		$	795
Less: tax benefit on amortization of fair value of acquired invested assets and debt		(4	)		(5	)		(5	)		(4	)		(8	)		(14	)		(22	)		(26	)
Less: tax benefit on Chubb integration expenses		—			—			—			(2	)		—			—			(2	)		(4	)
Less: tax expense (benefit) on adjusted net realized gains (losses)		(26	)		(11	)		(17	)		2			19			(54	)		13			15

Tax expense (benefit), adjusted	$	172		$	(46	)	$	237		$	173		$	219		$	363		$	637		$	810

Income (loss) before tax, as reported	$	1,336		$	(393	)	$	467		$	1,342		$	1,321		$	1,410		$	3,907		$	5,249
Less: amortization of fair value of acquired invested assets and debt		(23	)		(24	)		(27	)		(29	)		(32	)		(74	)		(111	)		(140	)
Less: Chubb integration expenses		—			—			—			(14	)		(2	)		—			(9	)		(23	)
Less: adjusted realized gains (losses)		(142	)		31			(956	)		(55	)		(141	)		(1,067	)		(467	)		(522	)
Less: realized gains (losses) related to unconsolidated entities		422			(100	)		(7	)		227			41			315			256			483

Core operating income (loss) before tax	$	1,079		$	(300	)	$	1,457		$	1,213		$	1,455		$	2,236		$	4,238		$	5,451

Effective tax rate		10.7	%		15.8	%		46.0	%		12.6	%		17.4	%		20.9	%		16.0	%		15.1	%
Adjustment for tax impact of amortization of fair value of acquired invested assets and debt		0.0	%		-0.4	%		0.0	%		0.0	%		0.2	%		0.1	%		0.1	%		0.1	%
Adjustment for tax impact of Chubb integration expenses		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Adjustment for tax impact of adjusted net realized gains (losses)		5.3	%		-0.1	%		-29.7	%		1.6	%		-2.5	%		-4.8	%		-1.1	%		-0.3	%

Core operating effective tax rate		16.0	%		15.3	%		16.3	%		14.2	%		15.1	%		16.2	%		15.0	%		14.9	%


Core operating income The following table presents the reconciliation of Net income (loss) to Core operating income (loss):
																YTD			YTD			Full Year
	3Q-20			2Q-20			1Q-20			4Q-19			3Q-19			2020			2019			2019
Net income (loss), as reported	$	1,194		$	(331	)	$	252		$	1,173		$	1,091		$	1,115		$	3,281		$	4,454
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax		(23	)		(24	)		(27	)		(29	)		(32	)		(74	)		(111	)		(140	)
Tax benefit on amortization adjustment		4			5			5			4			8			14			22			26
Chubb integration expenses, pre-tax		—			—			—			(14	)		(2	)		—			(9	)		(23	)
Tax benefit on Chubb integration expenses		—			—			—			2			—			—			2			4
Adjusted realized gains (losses), pre-tax		(142	)		31			(956	)		(55	)		(141	)		(1,067	)		(467	)		(522	)
Net realized gains (losses) related to unconsolidated entities, pre-tax ⁽¹⁾		422			(100	)		(7	)		227			41			315			256			483
Tax (expense) benefit on adjusted net realized gains (losses)		26			11			17			(2	)		(19	)		54			(13	)		(15	)

Core operating income (loss)	$	907		$	(254	)	$	1,220		$	1,040		$	1,236		$	1,873		$	3,601		$	4,641

Catastrophe losses—after-tax	$	797		$	1,510		$	199		$	353		$	191		$	2,506		$	613		$	966
Unfavorable (favorable) prior period development (PPD)—after-tax	$	(126	)	$	52		$	(94	)	$	(199	)	$	(112	)	$	(168	)	$	(425	)	$	(624	)
Core operating income (loss) per share	$	2.00		$	(0.56	)	$	2.68		$	2.28		$	2.70		$	4.13		$	7.83		$	10.11
Impact of Cats on Core operating income per share—Unfavorable	$	(1.76	)	$	(3.35	)	$	(0.44	)	$	(0.77	)	$	(0.41	)	$	(5.52	)	$	(1.33	)	$	(2.11	)
Impact of PPD on Core operating income per share—Favorable (unfavorable)	$	0.28		$	(0.11	)	$	0.21		$	0.43		$	0.24		$	0.37		$	0.92		$	1.36
Impact of Cats and PPD on Core operating income per share—Unfavorable	$	(1.48	)	$	(3.46	)	$	(0.23	)	$	(0.34	)	$	(0.17	)	$	(5.15	)	$	(0.41	)	$	(0.75	)

(1)	Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


Reconciliation Non-GAAP 2		Page 31

Chubb Limited

Non-GAAP Financial Measures—3

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

Core operating ROE

Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized non-GAAP financial measures. The numerator includes core operating income (loss), net of tax. The denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. For the ROTE calculation, the denominator is also adjusted to exclude goodwill and other intangible assets, net of tax. These measures enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity and tangible equity excluding the effect of unrealized gains and losses on our investments.


	3Q-20			3Q-19			YTD 2020			YTD 2019			Full Year 2019
Net income	$	1,194		$	1,091		$	1,115		$	3,281		$	4,454
Core operating income	$	907		$	1,236		$	1,873		$	3,601		$	4,641
Equity—beginning of period, as reported ⁽¹⁾	$	54,760		$	53,802		$	55,259		$	50,300		$	50,300
Less: unrealized gains (losses) on investments, net of deferred tax		3,424			2,033			2,543			(545	)		(545	)

Equity—beginning of period, as adjusted	$	51,336		$	51,769		$	52,716		$	50,845		$	50,845

Less: goodwill and other intangible assets, net of tax	$	19,783		$	20,170		$	20,012		$	20,054		$	20,054

Equity—beginning of period, as adjusted ex goodwill and other intangible assets	$	31,553		$	31,599		$	32,704		$	30,791		$	30,791

Equity—end of period, as reported	$	56,413		$	54,572		$	56,413		$	54,572		$	55,331
Less: unrealized gains (losses) on investments, net of deferred tax		3,967			2,613			3,967			2,613			2,543

Equity—end of period, as adjusted	$	52,446		$	51,959		$	52,446		$	51,959		$	52,788

Less: goodwill and other intangible assets, net of tax		19,802			20,010			19,802			20,010			20,012

Equity—end of period, as adjusted ex goodwill and other intangible assets	$	32,644		$	31,949		$	32,644		$	31,949		$	32,776

Weighted average equity, as reported	$	55,587		$	54,187		$	55,836		$	52,436		$	52,816
Weighted average equity, as adjusted	$	51,891		$	51,864		$	52,581		$	51,402		$	51,817
Weighted average equity, as adjusted ex goodwill and other intangible assets	$	32,099		$	31,774		$	32,674		$	31,370		$	31,784
ROE		8.6	%		8.1	%		2.7	%		8.3	%		8.4	%
Core operating ROE		7.0	%		9.5	%		4.7	%		9.3	%		9.0	%
Core operating ROTE		11.3	%		15.6	%		7.6	%		15.3	%		14.6	%
Private equities realized gains, after-tax ⁽²⁾	$	428		$	30		$	223		$	223		$	434
Impact of Private equities if included in Core operating ROE—Favorable ⁽²⁾		3.3 pts			0.3 pt			0.6 pt			0.6 pt			0.8 pt

Reconciliation of Book Value and Tangible Book Value per Share, excluding mark-to-market
	September 30 2020			June 30 2020			December 31 2019			QTD % Change			YTD % Change
Book value	$	56,413		$	54,760		$	55,331
Less: unrealized gains (losses) on investments, net of deferred tax		3,967			3,424			2,543

Book value excluding mark-to-market		52,446			51,336			52,788
Less: goodwill and other intangible assets, net of tax		19,802			19,783			20,012

Tangible book value excluding mark-to-market	$	32,644		$	31,553		$	32,776

Denominator		451,376,194			451,360,023			451,971,567

Book value per share excluding mark-to-market	$	116.19		$	113.74		$	116.80			2.2	%		-0.5	%
Tangible book value per share excluding mark-to-market	$	72.32		$	69.90		$	72.52			3.5	%		-0.3	%

(1)	January 1, 2020 included a $72 million after-tax reduction to beginning equity principally related to the adoption of the current expected credit loss accounting guidance.

(2)	We record the change in the fair value mark and gains (losses) on sales of private equity funds as realized gains (losses) instead of investment income.


Reconciliation Non-GAAP 3		Page 32

Chubb Limited

Non-GAAP Financial Measures—4

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio

The P&C combined ratio includes the impact of 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 will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.

The following tables present the calculation of combined ratio, as reported, for each segment to P&C combined ratio, adjusted for catastrophe losses (Cats) and prior period development (PPD).


Q3 2020		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	2,444		$	961		$	846		$	1,192		$	154		$	55		$	5,652
Realized (gains) losses on crop derivatives			—			—			(1	)		—			—			—			(1	)

Adjusted losses and loss expenses	A	$	2,444		$	961		$	845		$	1,192		$	154		$	55		$	5,651

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(447	)		(305	)		(10	)		(95	)		(68	)		—			(925	)
Reinstatement premiums collected (expensed) on catastrophe losses			—			—			—			—			7			—			7

Catastrophe losses, gross of related adjustments			(447	)		(305	)		(10	)		(95	)		(75	)		—			(932	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			200			(48	)		(18	)		60			6			(54	)		146
Net premiums earned adjustments on PPD—unfavorable (favorable)			28			—			—			—			—			—			28
Expense adjustments—unfavorable (favorable)			(1	)		—			—			—			(2	)		—			(3	)
PPD reinstatement premiums—unfavorable (favorable)			—			(8	)		—			—			—			—			(8	)

PPD, gross of related adjustments—favorable (unfavorable)			227			(56	)		(18	)		60			4			(54	)		163

CAY loss and loss expense ex Cats	B	$	2,224		$	600		$	817		$	1,157		$	83		$	1		$	4,882

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	732		$	313		$	61		$	897		$	49		$	71		$	2,123
Expense adjustments—favorable (unfavorable)			1			—			—			—			2			—			3

Policy acquisition costs and administrative expenses, adjusted	D	$	733		$	313		$	61		$	897		$	51		$	71		$	2,126

Denominator
Net premiums earned	E	$	3,456		$	1,231		$	971		$	2,337		$	171					$	8,166
Reinstatement premiums (collected) expensed on catastrophe losses			—			—			—			—			(7	)					(7	)
Net premiums earned adjustments on PPD—unfavorable (favorable)			28			—			—			—			—						28
PPD reinstatement premiums—unfavorable (favorable)			—			(8	)		—			—			—						(8	)

Net premiums earned excluding adjustments	F	$	3,484		$	1,223		$	971		$	2,337		$	164					$	8,179

P&C combined ratio
Loss and loss expense ratio	A/E		70.7	%		78.1	%		87.1	%		51.0	%		89.6	%					69.2	%
Policy acquisition cost and administrative expense ratio	C/E		21.2	%		25.4	%		6.2	%		38.4	%		28.7	%					26.0	%

P&C combined ratio			91.9	%		103.5	%		93.3	%		89.4	%		118.3	%					95.2	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		63.8	%		49.2	%		84.2	%		49.5	%		49.7	%					59.7	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.1	%		25.6	%		6.2	%		38.4	%		31.1	%					26.0	%

CAY P&C combined ratio ex Cats			84.9	%		74.8	%		90.4	%		87.9	%		80.8	%					85.7	%

Combined ratio
Combined ratio																					95.2	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					95.2	%

Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.


Reconciliation Non-GAAP 4		Page 33

Chubb Limited

Non-GAAP Financial Measures—5

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


YTD 2020		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	8,123		$	2,406		$	1,221		$	3,935		$	314		$	342		$	16,341
Realized (gains) losses on crop derivatives			—			—			2			—			—			—			2

Adjusted losses and loss expenses	A	$	8,123		$	2,406		$	1,223		$	3,935		$	314		$	342		$	16,343

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(1,838	)		(436	)		(24	)		(584	)		(81	)		—			(2,963	)
Reinstatement premiums collected (expensed) on catastrophe losses			(3	)		(1	)		—			(16	)		7			—			(13	)

Catastrophe losses, gross of related adjustments			(1,835	)		(435	)		(24	)		(568	)		(88	)		—			(2,950	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			451			(48	)		(4	)		100			29			(339	)		189
Net premiums earned adjustments on PPD—unfavorable (favorable)			32			—			3			—			—			—			35
Expense adjustments—unfavorable (favorable)			(1	)		—			—			—			(2	)		—			(3	)
PPD reinstatement premiums—unfavorable (favorable)			—			(8	)		—			—			(1	)		—			(9	)

PPD, gross of related adjustments—favorable (unfavorable)			482			(56	)		(1	)		100			26			(339	)		212

CAY loss and loss expense ex Cats	B	$	6,770		$	1,915		$	1,198		$	3,467		$	252		$	3		$	13,605

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	2,203		$	923		$	108		$	2,662		$	155		$	214		$	6,265
Expense adjustments—favorable (unfavorable)			1			—			—			—			2			—			3

Policy acquisition costs and administrative expenses, adjusted	D	$	2,204		$	923		$	108		$	2,662		$	157		$	214		$	6,268

Denominator
Net premiums earned	E	$	10,427		$	3,623		$	1,441		$	6,838		$	520					$	22,849
Reinstatement premiums (collected) expensed on catastrophe losses			3			1			—			16			(7	)					13
Net premiums earned adjustments on PPD—unfavorable (favorable)			32			—			3			—			—						35
PPD reinstatement premiums—unfavorable (favorable)			—			(8	)		—			—			(1	)					(9	)

Net premiums earned excluding adjustments	F	$	10,462		$	3,616		$	1,444		$	6,854		$	512					$	22,888

P&C combined ratio
Loss and loss expense ratio	A/E		77.9	%		66.4	%		84.9	%		57.6	%		60.3	%					71.5	%
Policy acquisition cost and administrative expense ratio	C/E		21.1	%		25.5	%		7.4	%		38.9	%		29.8	%					27.4	%

P&C combined ratio			99.0	%		91.9	%		92.3	%		96.5	%		90.1	%					98.9	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		64.7	%		53.0	%		83.0	%		50.6	%		49.0	%					59.4	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		21.1	%		25.5	%		7.4	%		38.8	%		30.7	%					27.4	%

CAY P&C combined ratio ex Cats			85.8	%		78.5	%		90.4	%		89.4	%		79.7	%					86.8	%

Combined ratio
Combined ratio																					98.9	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					98.9	%


Reconciliation Non-GAAP 5		Page 34

Chubb Limited

Non-GAAP Financial Measures—6

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


Q3 2019		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	2,051		$	674		$	866		$	1,154		$	79		$	38		$	4,862
Realized (gains) losses on crop derivatives			—			—			14			—			—			—			14

Adjusted losses and loss expenses	A	$	2,051		$	674		$	880		$	1,154		$	79		$	38		$	4,876

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(88	)		(83	)		(3	)		(35	)		(23	)		—			(232	)
Reinstatement premiums collected (expensed) on catastrophe losses			—			—			—			—			2			—			2

Catastrophe losses, gross of related adjustments			(88	)		(83	)		(3	)		(35	)		(25	)		—			(234	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			109			62			(18	)		25			25			(36	)		167
Net premiums earned adjustments on PPD—unfavorable (favorable)			39			—			—			—			1			—			40
Expense adjustments—unfavorable (favorable)			3			—			—			—			(1	)		—			2
PPD reinstatement premiums—unfavorable (favorable)			(1	)		(1	)		—			1			—			—			(1	)

PPD, gross of related adjustments—favorable (unfavorable)			150			61			(18	)		26			25			(36	)		208

CAY loss and loss expense ex Cats	B	$	2,113		$	652		$	859		$	1,145		$	79		$	2		$	4,850

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	715		$	312		$	60		$	887		$	51		$	74		$	2,099
Expense adjustments—favorable (unfavorable)			(3	)		—			—			—			1			—			(2	)

Policy acquisition costs and administrative expenses, adjusted	D	$	712		$	312		$	60		$	887		$	52		$	74		$	2,097

Denominator
Net premiums earned	E	$	3,185		$	1,187		$	941		$	2,256		$	160					$	7,729
Reinstatement premiums (collected) expensed on catastrophe losses			—			—			—			—			(2	)					(2	)
Net premiums earned adjustments on PPD—unfavorable (favorable)			39			—			—			—			1						40
PPD reinstatement premiums—unfavorable (favorable)			(1	)		(1	)		—			1			—						(1	)

Net premiums earned excluding adjustments	F	$	3,223		$	1,186		$	941		$	2,257		$	159					$	7,766

P&C combined ratio
Loss and loss expense ratio	A/E		64.4	%		56.9	%		93.5	%		51.1	%		49.6	%					63.1	%
Policy acquisition cost and administrative expense ratio	C/E		22.5	%		26.2	%		6.4	%		39.4	%		31.5	%					27.1	%

P&C combined ratio			86.9	%		83.1	%		99.9	%		90.5	%		81.1	%					90.2	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		65.5	%		55.1	%		91.3	%		50.7	%		49.9	%					62.4	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		22.1	%		26.2	%		6.4	%		39.3	%		32.2	%					27.1	%

CAY P&C combined ratio ex Cats			87.6	%		81.3	%		97.7	%		90.0	%		82.1	%					89.5	%

Combined ratio
Combined ratio																					90.0	%
Add: impact of gains and losses on crop derivatives																					0.2	%

P&C combined ratio																					90.2	%


Reconciliation Non-GAAP 6		Page 35

Chubb Limited

Non-GAAP Financial Measures—7

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

P&C combined ratio (continued)


YTD 2019		North America Commercial P&C Insurance			North America Personal P&C Insurance			North America Agricultural Insurance			Overseas General Insurance			Global Reinsurance			Corporate			Total P&C
Numerator
Losses and loss expenses
Losses and loss expenses		$	6,238		$	2,178		$	1,155		$	3,385		$	245		$	83		$	13,284
Realized (gains) losses on crop derivatives			—			—			8			—			—			—			8

Adjusted losses and loss expenses	A	$	6,238		$	2,178		$	1,163		$	3,385		$	245		$	83		$	13,292

Catastrophe losses and related adjustments
Catastrophe losses, net of related adjustments			(319	)		(329	)		(7	)		(69	)		(33	)		—			(757	)
Reinstatement premiums collected (expensed) on catastrophe losses			—			—			—			—			2			—			2

Catastrophe losses, gross of related adjustments			(319	)		(329	)		(7	)		(69	)		(35	)		—			(759	)

PPD and related adjustments
PPD, net of related adjustments—favorable (unfavorable)			425			88			43			49			33			(79	)		559
Net premiums earned adjustments on PPD—unfavorable (favorable)			38			—			32			—			1			—			71
Expense adjustments—unfavorable (favorable)			(3	)		—			(3	)		—			(1	)		—			(7	)
PPD reinstatement premiums—unfavorable (favorable)			(1	)		(4	)		—			1			—			—			(4	)

PPD, gross of related adjustments—favorable (unfavorable)			459			84			72			50			33			(79	)		619

CAY loss and loss expense ex Cats	B	$	6,378		$	1,933		$	1,228		$	3,366		$	243		$	4		$	13,152

Policy acquisition costs and administrative expenses
Policy acquisition costs and administrative expenses	C	$	2,132		$	919		$	99		$	2,626		$	153		$	211		$	6,140
Expense adjustments—favorable (unfavorable)			3			—			3			—			1			—			7

Policy acquisition costs and administrative expenses, adjusted	D	$	2,135		$	919		$	102		$	2,626		$	154		$	211		$	6,147

Denominator
Net premiums earned	E	$	9,660		$	3,509		$	1,374		$	6,595		$	487					$	21,625
Reinstatement premiums (collected) expensed on catastrophe losses			—			—			—			—			(2	)					(2	)
Net premiums earned adjustments on PPD—unfavorable (favorable)			38			—			32			—			1						71
PPD reinstatement premiums—unfavorable (favorable)			(1	)		(4	)		—			1			—						(4	)

Net premiums earned excluding adjustments	F	$	9,697		$	3,505		$	1,406		$	6,596		$	486					$	21,690

P&C combined ratio
Loss and loss expense ratio	A/E		64.6	%		62.1	%		84.7	%		51.3	%		50.3	%					61.5	%
Policy acquisition cost and administrative expense ratio	C/E		22.0	%		26.2	%		7.2	%		39.8	%		31.4	%					28.4	%

P&C combined ratio			86.6	%		88.3	%		91.9	%		91.1	%		81.7	%					89.9	%

CAY P&C combined ratio ex Cats
Loss and loss expense ratio, adjusted	B/F		65.8	%		55.2	%		87.4	%		51.0	%		50.0	%					60.6	%
Policy acquisition cost and administrative expense ratio, adjusted	D/F		22.0	%		26.2	%		7.2	%		39.8	%		31.7	%					28.4	%

CAY P&C combined ratio ex Cats			87.8	%		81.4	%		94.6	%		90.8	%		81.7	%					89.0	%

Combined ratio
Combined ratio																					89.9	%
Add: impact of gains and losses on crop derivatives																					0.0	%

P&C combined ratio																					89.9	%


Reconciliation Non-GAAP 7		Page 36

Chubb Limited

Glossary

Chubb Limited Consolidated comprises all segments including Corporate.

P&C combined ratio: The sum of the loss and loss expense ratio, policy acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives.

Book value per common share: Shareholders’ equity divided by the shares outstanding.

Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding.

Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

Average yield on invested assets: Adjusted net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

Total capitalization: The sum of the short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

Chubb integration expenses: Chubb integration expenses comprise legal and professional fees and all other costs directly related to the integration activities of the Chubb Corp acquisition. Chubb integration expenses are incurred by the overall company and are therefore included in Corporate. These costs are not related to the on-going business activities of the segments and are therefore excluded from our definition of segment income.

Catastrophe losses (Cats): We generally define catastrophe loss events consistent with the definition of the Property Claims Service (PCS) for events in the U.S. and Canada. PCS defines a catastrophe as an event that causes damage of $25 million or more in insured losses and affects a significant number of insureds, including from pandemics such as COVID-19. For events outside of the U.S. and Canada, we generally use a similar definition. Catastrophe loss events are events that occurred in the current calendar year only. Changes in catastrophe loss estimates in the current calendar year that relate to loss events that occurred in previous calendar years are considered 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.

Reinstatement premiums are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences. The reinstatement premium amount is typically a pro rata portion of the original ceded premium paid based on how much of the reinsurance limit had been exhausted.

Net premiums earned adjustments within prior period development are adjustments to the initial premium earned on retrospectively rated policies based on actual claim experience that develops after the policy period ends. The premium adjustments correlate to the prior period loss development on these same policies and are fully earned in the period the adjustments are recorded.

Prior period expense adjustments typically relate to either profit commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies.

Segment income (loss) includes underwriting income (loss), adjusted net investment income, other income (expense) – operating, and amortization expense of purchased intangibles.

Commercial P&C lines includes Commercial P&C, Agriculture and Reinsurance lines of business.

Consumer P&C lines includes Personal and Global accident and health (A&H) lines of business.

NM: Not meaningful.


Glossary		Page 37


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value CHF 24.15 per share	CB	New York Stock Exchange
Guarantee of Chubb INA Holdings Inc. 0.30% Senior Notes due 2024	CB/24A	New York Stock Exchange
Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2027	CB/27	New York Stock Exchange
Guarantee of Chubb INA Holdings Inc. 1.55% Senior Notes due 2028	CB/28	New York Stock Exchange
Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2029	CB/29A	New York Stock Exchange
Guarantee of Chubb INA Holdings Inc. 1.40% Senior Notes due 2031	CB/31	New York Stock Exchange
Guarantee of Chubb INA Holdings Inc. 2.50% Senior Notes due 2038	CB/38A	New York Stock Exchange


Exhibit Number		Description

99.1		Press Release, Dated October 27, 2020, Reporting Third Quarter 2020 Results

99.2		Third Quarter 2020 Financial Supplement

104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


Chubb Limited

By:		/s/ Philip V. Bancroft
		Philip V. Bancroft
		Executive Vice President and Chief Financial Officer


							(Per Share)
	2020		2019		Change		2020		2019		Change
Net income		$1,194		$1,091		9.4%		$2.63		$2.38		10.5%
Amortization of fair value adjustment of acquired invested assets and long-term debt, and other, net of tax		19		26		(26.9)%		0.04		0.06		(33.3)%
Adjusted net realized (gains) losses, net of tax		(306)		119		NM		(0.67)		0.26		NM
Core operating income, net of tax		$907		$1,236		(26.6)%		$2.00		$2.70		(25.9)%


							(Per Share)
	2020		2019		Change		2020		2019		Change
Net income		$1,115		$3,281		(66.0)%		$2.46		$7.13		(65.5)%
Amortization of fair value adjustment of acquired invested assets and long-term debt, and other, net of tax		60		96		(37.5)%		0.13		0.21		(38.1)%
Adjusted net realized (gains) losses, net of tax		698		224		NM		1.54		0.49		NM
Core operating income, net of tax		$1,873		$3,601		(48.0)%		$4.13		$7.83		(47.3)%


Chubb®, Chubb logo® and Chubb. Insured.^SM are trademarks of Chubb.		1


Chubb Limited (in millions of U.S. dollars except for percentages)		Q3 2020		Q3 2019	Change
P&C
Net premiums written (increase of 6.4% in constant dollars)	$	8,468	$	8,010	5.7%
Underwriting income	$	392	$	754	(48.0)%
Combined ratio		95.2%		90.2%
Current accident year underwriting income excluding catastrophe losses	$	1,171	$	819	43.0%
Current accident year combined ratio excluding catastrophe losses		85.7%		89.5%

Global P&C (excludes Agriculture)
Net premiums written (increase of 6.6% in constant dollars)	$	7,482	$	7,072	5.8%
Underwriting income	$	327	$	753	(56.6)%
Combined ratio		95.5%		88.9%
Current accident year underwriting income excluding catastrophe losses	$	1,078	$	797	35.3%
Current accident year combined ratio excluding catastrophe losses		85.0%		88.3%

North America Agricultural Insurance
Net premiums written	$	986	$	938	5.0%
Underwriting income	$	65	$	1	NM
Combined ratio		93.3%		99.9%
Current accident year underwriting income excluding catastrophe losses	$	93	$	22	NM
Current accident year combined ratio excluding catastrophe losses		90.4%		97.7%


	September 30 2020		December 31 2019

Assets
Investments	$	116,047	$	109,234
Cash		1,707		1,537
Insurance and reinsurance balances receivable		10,588		10,357
Reinsurance recoverable on losses and loss expenses		15,670		15,181
Goodwill and other intangible assets		21,103		21,359
Other assets		22,671		19,275

Total assets	$	187,786	$	176,943


Liabilities
Unpaid losses and loss expenses	$	67,905	$	62,690
Unearned premiums		17,502		16,771
Other liabilities		45,966		42,151

Total liabilities	$	131,373	$	121,612


Shareholders’ equity
Total shareholders’ equity		56,413		55,331

Total liabilities and shareholders’ equity	$	187,786	$	176,943


Book value per common share	$	124.98	$	122.42
Tangible book value per common share	$	81.11	$	78.14
Book value per common share excluding cumulative translation losses ⁽¹⁾	$	129.59	$	126.71
Tangible book value per common share excluding cumulative translation losses ⁽¹⁾	$	84.28	$	81.16


	Three Months Ended September 30						Nine Months Ended September 30
	2020			2019			2020			2019
Gross premiums written	$	11,220		$	10,724		$	31,012		$	30,190
Net premiums written		9,078			8,622			25,410			24,278
Net premiums earned		8,765			8,327			24,687			23,355
Losses and loss expenses		5,835			5,052			16,897			13,865
Policy benefits		198			158			550			515
Policy acquisition costs		1,645			1,603			4,853			4,611
Administrative expenses		733			752			2,201			2,220
Net investment income		840			873			2,528			2,568
Net realized gains (losses)		(141	)		(155	)		(1,069	)		(475	)
Interest expense		130			138			390			418
Other income (expense):
Gains (losses) from separate account assets		24			(7	)		8			20
Other		461			64			364			306
Amortization of purchased intangibles		72			76			217			229
Chubb integration expenses		—			2			—			9
Income tax expense		142			230			295			626

Net income	$	1,194		$	1,091		$	1,115		$	3,281


Diluted earnings per share:
Net income	$	2.63		$	2.38		$	2.46		$	7.13
Core operating income	$	2.00		$	2.70		$	4.13		$	7.83

Weighted average diluted shares outstanding		453.3			458.2			453.6			459.9


P&C combined ratio
Loss and loss expense ratio		69.2%			63.1%			71.5%			61.5%
Policy acquisition cost ratio		18.0%			18.4%			18.8%			19.2%
Administrative expense ratio		8.0%			8.7%			8.6%			9.2%

P&C combined ratio		95.2%			90.2%			98.9%			89.9%

P&C underwriting income	$	392		$	754		$	241		$	2,193