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CHUBB LIMITED

(CB)
  Report
Delayed Nyse  -  04:00 2022-09-30 pm EDT
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CHUBB LTD Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

07/29/2022 | 02:19pm EDT
The following is a discussion of our results of operations, financial condition,
and liquidity and capital resources as of and for the three and six months ended
June 30, 2022.

All comparisons in this discussion are to the corresponding prior year period
unless otherwise indicated. All dollar amounts are rounded. However, percent
changes and ratios are calculated using whole dollars. Accordingly, calculations
using rounded dollars may differ.

Our results of operations and cash flows for any interim period are not
necessarily indicative of our results for the full year. This discussion should
be read in conjunction with our consolidated financial statements and related
notes and our Management's Discussion and Analysis of Financial Condition and
Results of Operations included in our Annual Report on Form 10-K for the year
ended December 31, 2021 (2021 Form 10-K).

Other Information
We routinely post important information for investors on our website
(investors.chubb.com). We use this website as a means of disclosing material,
non-public information and for complying with our disclosure obligations under
Securities and Exchange Commission (SEC) Regulation FD (Fair Disclosure).
Accordingly, investors should monitor the Investor Information portion of our
website, in addition to following our press releases, SEC filings, public
conference calls, and webcasts. The information contained on, or that may be
accessed through, our website is not incorporated by reference into, and is not
a part of, this report.

MD&A Index                                                                                   Page
  Forward-Looking Statements                                                                 38
  Overview                                                                                   39
  Outlook                                                                                    39
  Consolidated Operating Results                                                             40

  Segment Operating Results                                                                  45
  Net Realized and Unrealized Gains (Losses)                                                 56
  Effective Income Tax Rate                                                                  57
  Non-GAAP Reconciliation                                                                    58
  Amortization of Purchased Intangibles and Other Amortization                               63
  Net Investment Income                                                                      64
  Interest Expense                                                                           65
  Investments                                                                                65
  Critical Accounting Estimates                                                              69

  Unpaid Losses and Loss Expenses                                                            69
  Asbestos and Environmental (A&E)                                                           69
  Fair Value Measurements                                                                    69
  Catastrophe Management                                                                     70
  Global Property Catastrophe Reinsurance Program                                            71

  Liquidity                                                                                  72
  Capital Resources                                                                          73
  Information Provided In Connection With Outstanding Debt of Subsidiaries                   74



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                          Forward-Looking Statements


The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Any written or oral statements made by us or on
our behalf may include forward-looking statements that reflect our current views
with respect to future events and financial performance. The words "believe,"
"anticipate," "estimate," "project," "should," "plan," "expect," "intend,"
"hope," "feel," "foresee," "will likely result," "will continue," and variations
thereof and similar expressions, identify forward-looking statements. These
forward-looking statements are subject to certain risks, uncertainties, and
other factors that could, should potential events occur, cause actual results to
differ materially from such statements. These risks, uncertainties, and other
factors, which are described in more detail elsewhere herein and in other
documents we file with the U.S. Securities and Exchange Commission (SEC),
include but are not limited to:

•actual amount of new and renewal business, premium rates, underwriting margins,
market acceptance of our products, and risks associated with the introduction of
new products and services and entering new markets; the competitive environment
in which we operate, including trends in pricing or in policy terms and
conditions, which may differ from our projections and changes in market
conditions that could render our business strategies ineffective or obsolete;

•losses arising out of natural or man-made catastrophes; actual loss experience
from insured or reinsured events and the timing of claim payments; the
uncertainties of the loss-reserving and claims-settlement processes, including
the difficulties associated with assessing environmental damage and
asbestos-related latent injuries, the impact of aggregate-policy-coverage
limits, the impact of bankruptcy protection sought by various asbestos producers
and other related businesses, and the timing of loss payments;

•infection rates and severity of COVID-19 and related risks, and their effects
on our business operations and claims activity, and any adverse impact to our
insureds, brokers, agents, and employees; actual claims may exceed our best
estimate of ultimate insurance losses incurred which could change including as a
result of, among other things, the impact of legislative or regulatory actions
taken in response to COVID-19;

•changes in the distribution or placement of risks due to increased
consolidation of insurance and reinsurance brokers; material differences between
actual and expected assessments for guaranty funds and mandatory pooling
arrangements; the ability to collect reinsurance recoverable, credit
developments of reinsurers, and any delays with respect thereto and changes in
the cost, quality, or availability of reinsurance;

•uncertainties relating to governmental, legislative and regulatory policies,
developments, actions, investigations, and treaties; judicial decisions and
rulings, new theories of liability, legal tactics, and settlement terms; the
effects of data privacy or cyber laws or regulation; global political conditions
and possible business disruption or economic contraction that may result from
such events;

•developments in global financial markets, including changes in interest rates,
stock markets, and other financial markets; increased government involvement or
intervention in the financial services industry; the cost and availability of
financing, and foreign currency exchange rate fluctuations; changing rates of
inflation; and other general economic and business conditions, including the
depth and duration of potential recession;

•the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; the amount of dividends received from subsidiaries;

•changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available for sale fixed maturity investments before their anticipated recovery;


•actions that rating agencies may take from time to time, such as financial
strength or credit ratings downgrades or placing these ratings on credit watch
negative or the equivalent;

•the effects of public company bankruptcies and accounting restatements, as well
as disclosures by and investigations of public companies relating to possible
accounting irregularities, and other corporate governance issues;

•acquisitions made performing differently than expected, our failure to realize
anticipated expense-related efficiencies or growth from acquisitions, the impact
of acquisitions on our pre-existing organization, including with respect to our
announced acquisitions not closing; risks and uncertainties relating to our
planned purchases of additional interests in Huatai Insurance Group Co., Ltd.
(Huatai Group), including our ability to receive Chinese insurance regulatory
approval and complete the purchases;

•risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens; share repurchase plans and share cancellations;

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•loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame;


•the ability of our technology resources, including information systems and
security, to perform as anticipated such as with respect to preventing material
information technology failures or third-party infiltrations or hacking
resulting in consequences adverse to Chubb or its customers or partners; the
ability of our company to increase use of data analytics and technology as part
of our business strategy and adapt to new technologies; and

•management's response to these factors and actual events (including, but not limited to, those described above).


You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates. We undertake no obligation to
publicly update or review any forward-looking statements, whether as a result of
new information, future events or otherwise.


                                   Overview


Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of
Companies. Chubb Limited, which is headquartered in Zurich, Switzerland, and its
direct and indirect subsidiaries (collectively, the Chubb Group of Companies,
Chubb, we, us, or our) are a global insurance and reinsurance organization,
serving the needs of a diverse group of clients worldwide. At June 30, 2022, we
had total assets of $196 billion and shareholders' equity of $52 billion. Chubb
was incorporated in 1985 at which time it opened its first business office in
Bermuda and continues to maintain operations in Bermuda. We operate through six
business segments: North America Commercial P&C Insurance, North America
Personal P&C Insurance, North America Agricultural Insurance, Overseas General
Insurance, Global Reinsurance, and Life Insurance. For more information on our
segments refer to "Segment Information" under Item 1 in our 2021 Form 10-K.

                                   Outlook


On July 1, 2022, we completed the acquisition of the life and non-life insurance
companies that house the personal accident, supplemental health, and life
insurance business of Cigna in six Asia-Pacific markets. Chubb paid $5.36
billion in cash for the operations, which include Cigna's accident and health
(A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong, and
Indonesia. The efficiencies created by the transaction are expected to provide
greater flexibility for the company to invest in people, technology, products
and distribution in the region. With the acquisition completed on July 1, we
will have a full quarter of earnings in the third quarter of 2022. We now expect
expense synergies to reach a run-rate of about $100 million pre-tax, which is
higher than our initial estimate. To achieve that run-rate savings, we expect
one-time pre-tax integration costs over the next three years to be $140 million
on an economic basis, as the deal price was reduced by $30 million of non-cash
employee-related retention costs. The $30 million will also be recorded as an
integration cost, resulting in total expected integration costs of $170 million
pre-tax.






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Consolidated Operating Results - Three and Six Months Ended June 30, 2022 and 2021



                                                      Three Months Ended                                                 Six Months Ended
                                                                 June 30                     % Change                             June 30                  % Change
(in millions of U.S. dollars, except for
percentages)                                    2022             2021                   Q-22 vs. Q-21           2022              2021            YTD-22 vs. YTD-21
Net premiums written                     $    10,302          $ 9,546                          7.9  %       $ 19,501          $ 18,208                       7.1  %
Net premiums written - constant dollars
(1)                                                                                           10.0  %                                                        9.1  %
Net premiums earned                            9,557            8,813                          8.4  %         18,303            17,034                       7.4  %
Net investment income                            888              884                          0.4  %          1,710             1,747                      (2.1) %
Net realized gains (losses)                     (504)             (33)                             NM           (403)              854                           NM
Total revenues                                 9,941            9,664                          2.9  %         19,610            19,635                      (0.1) %
Losses and loss expenses                       5,408            5,006                          8.0  %         10,195            10,059                       1.3  %
Policy benefits                                  159              185                        (13.9) %            304               352                     (13.5) %
Policy acquisition costs                       1,739            1,698                          2.4  %          3,476             3,363                       3.4  %
Administrative expenses                          818              775                          5.4  %          1,596             1,519                       5.0  %
Interest expense                                 134              122                         10.7  %            266               244                       9.0  %
Other (income) expense                           101             (777)                             NM           (209)           (1,267)                    (83.5) %
Amortization of purchased intangibles             71               73                         (1.7) %            142               145                      (1.8) %
Cigna integration expenses                         3                -                              NM              3                 -                           NM
Total expenses                                 8,433            7,082                         19.1  %         15,773            14,415                       9.4  %
Income before income tax                       1,508            2,582                        (41.6) %          3,837             5,220                     (26.5) %
Income tax expense                               293              317                         (7.7) %            648               655                      (1.1) %
Net income                               $     1,215          $ 2,265                        (46.4) %       $  3,189          $  4,565                     (30.1) %


NM - not meaningful

(1)   On a constant-dollar basis. Amounts are calculated by translating prior
period results using the same local currency exchange rates as the comparable
current period.


Financial Highlights for the Three Months Ended June 30, 2022

•Net income was $1.2 billion compared with $2.3 billion in the prior year period. Net income in the current quarter was driven by strong underwriting results, including growth in net premiums earned and improvements in our combined ratios. Net income is lower compared to prior year, reflecting the after-tax mark-to-market losses on public and private equities of $345 million and $144 million, respectively, compared to gains of $82 million and $712 million, respectively, in the prior year. Additionally, losses in the fixed income portfolio were higher year-over-year by $362 million after-tax.


•Consolidated net premiums written were $10.3 billion, up 7.9 percent, or 10.0
percent in constant dollars, primarily from growth in commercial lines and
consumer lines of 10.6 percent and 2.5 percent, respectively, or 12.1 percent
and 5.5 percent in constant dollars, respectively.

•Consolidated net premiums earned were $9.6 billion, up 8.4 percent, or 10.7
percent in constant dollars. Commercial lines growth was 13.0 percent, or 14.8
percent in constant dollars, while consumer lines were essentially flat, or up
2.8 percent in constant dollars.

•Total pre-tax and after-tax catastrophe losses were $291 million (3.2
percentage points of the P&C combined ratio) and $241 million, respectively,
compared with $280 million (3.4 percentage points of the P&C combined ratio) and
$226 million, respectively, in the prior year period. Catastrophe losses in the
current quarter were from weather-related events globally with approximately 79
percent in the U.S. and 21 percent internationally.
•Total pre-tax and after-tax favorable prior period development were $247
million (2.7 percentage points of the P&C combined ratio) and $205 million,
respectively, including pre-tax adverse development of $155 million for
molestation claims, predominantly reviver statute-related. Excluding the adverse
development, we had pre-tax favorable development of

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$402 million, with 59 percent in long-tail lines, and 41 percent in short-tail
lines. This compares with pre-tax and after-tax favorable prior period
development of $268 million (3.3 percentage points of the P&C combined ratio)
and $224 million, respectively, in the prior year period.

•The P&C combined ratio was 84.0 percent compared with 85.5 percent in the prior
year period. The P&C current accident year (CAY) combined ratio excluding
catastrophe losses was 83.5 percent compared with 85.4 percent in the prior year
period. The current year ratios decreased due to underlying loss ratio
improvement, including earned rate exceeding lost cost trends, and the favorable
impact of higher net premiums earned on the expense ratio.

•Net investment income was a record $888 million compared with $884 million in the prior year period.

•Operating cash flow was $2.7 billion for the quarter compared with $3.1 billion in the prior year period.


•Shareholders' equity decreased by $5.0 billion in the quarter, as net income of
$1.2 billion was more than offset by net unrealized losses on investments of
$4.1 billion after-tax from rising interest rates and $746 million related to
cumulative foreign exchange translation. In addition, shareholders' equity
reflected total capital returned to shareholders in the quarter of $1.5 billion,
including share repurchases of $1.1 billion, at an average purchase price of
$206.11 per share, and dividends of $348 million.


                                           Three Months Ended                                           Six Months Ended                            %
Net Premiums Written                                  June 30                     % Change                       June 30                       Change
                                                                                        C$                                                         C$
(in millions of U.S. dollars,                                     Q-22 vs.        Q-22 vs.                                    YTD-22 vs.   YTD-22 vs.
except for percentages)                    2022       2021            Q-21            Q-21           2022        2021             YTD-21       YTD-21
Commercial casualty                 $     1,773    $ 1,609         10.2  %         11.9  %       $  3,610    $  3,258            10.8  %      12.4  %
Workers' compensation                       546        546         (0.1) %         (0.1) %          1,149       1,109             3.6  %       3.6  %
Financial lines                           1,275      1,263          0.9  %          2.6  %          2,457       2,353             4.4  %       6.1  %
Surety                                      172        138         24.1  %         24.9  %            325         296             9.6  %      10.8  %
Commercial multiple peril (1)               341        316          8.2  %          8.2  %            631         579             9.0  %       9.0  %

Property and other short-tail lines 1,970 1,740 13.2 %

       15.8  %          3,747       3,334            12.4  %      15.1  %
Total Commercial P&C lines                6,077      5,612          8.3  %          9.9  %         11,919      10,929             9.1  %      10.7  %

Agriculture                                 738        512         44.0  %         44.0  %            800         695            15.1  %      15.1  %

Personal automobile                         423        364         16.2  %         17.6  %            835         751            11.2  %      13.2  %
Personal homeowners                       1,057      1,025          3.2  %          4.0  %          1,887       1,800             4.9  %       5.6  %
Personal other                              460        464         (0.8) %          4.2  %            955         932             2.4  %       6.4  %
Total Personal lines                      1,940      1,853          4.7  %          6.7  %          3,677       3,483             5.6  %       7.4  %

Total Property and Casualty lines 8,755 7,977 9.8 %

       11.4  %         16,396      15,107             8.5  %      10.2  %

Global A&H lines (2)                        958        951          0.7  %          5.3  %          1,933       1,933               -          4.0  %
Reinsurance lines                           262        274         (4.0) %         (3.2) %            515         481             7.2  %       7.9  %
Life                                        327        344         (4.9) %         (1.0) %            657         687            (4.5) %      (0.6) %
Total consolidated                  $    10,302    $ 9,546          7.9  %         10.0  %       $ 19,501    $ 18,208             7.1  %       9.1  %


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

The increase in consolidated net premiums written for the three and six months
ended June 30, 2022 reflects growth across most lines of business. For the three
months ended June 30, 2022, commercial lines growth was 10.6 percent and
consumer lines growth was 2.5 percent, or 12.1 percent and 5.5 percent,
respectively, on a constant dollar basis, driven by higher new business,
positive rate increases, and strong renewal retention.

                                                                            

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•Commercial casualty grew primarily in North America, Europe, and Asia, driven
by higher new business and strong retention, including exposure and rate
increases.
•Workers' compensation growth for the six months ended June 30, 2022 was due to
exposure increases in North America.
•Financial lines grew in North America, Asia, and Europe reflecting higher new
business, strong retention and positive rate increases.
•Commercial multiple peril increased due to strong new business and renewal
retention, including exposure and positive rate increases in North America.
•Property and other short-tail lines grew globally due to strong new business
and renewal retention, including positive rate increases and increased exposure.
•Agriculture increased for the three and six months ended June 30, 2022 due to
underlying growth in crop insurance, reflecting higher commodity prices and
policy count growth. Partially offsetting growth for the six months was a return
of premium to the U.S. government in the first quarter of 2022 of $161 million.
•Personal lines grew in most regions reflecting new business and strong renewal
retention, from both rate and exposure increases, primarily in homeowners and
automobile in North America, high net worth and specialty lines in Asia, and
specialty lines and automobile in Latin America. Partially offsetting growth in
North America were additional cancellations in parts of California exposed to
wildfires.
•Global A&H lines grew in Asia, Latin America, Europe, and Japan on a constant
dollar basis, driven by higher new business and recovery from less travel volume
and reduced consumer activity in the prior year. Our North American Combined
Insurance supplemental A&H business decreased primarily due to the non-renewal
of a large program.
•Reinsurance lines decreased for the quarter as the impact of new treaties bound
was offset by a one-time portfolio transfer in the prior year. The year-to-date
increase reflects continued growth in the portfolio from the impact of new
treaties bound in the current year and in 2021; and favorable premium
adjustments.
•International life operations declined, as new business in Asia, primarily in
Thailand, was offset by lower business in Hong Kong, driven by the continued
impact of the pandemic on our agency force, and Latin America, principally
reflecting the non-renewal of certain large account business in Chile.
For additional information on net premiums written, refer to the segment results
discussions.


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Net Premiums Earned
Net premiums earned for short-duration contracts, typically P&C contracts,
generally reflect the portion of net premiums written that was recorded as
revenues for the period as the exposure periods expire. Net premiums earned for
long-duration contracts, typically traditional life contracts, generally are
recognized as earned when due from policyholders. For the three months ended
June 30, 2022, net premiums earned increased $744 million, or 8.4 percent,
comprising 13.0 percent positive growth in commercial lines, or 14.8 percent in
constant dollars, while consumer lines were flat, or up 2.8 percent in constant
dollars, as the acceleration of growth in net premiums written described above
are not yet reflected in net premiums earned. For the six months ended June 30,
2022, net premiums earned increased $1,269 million, or 7.4 percent, comprising
11.5 percent positive growth in commercial lines, or 13.0 percent in constant
dollars, while consumer lines were flat, or up 2.7 percent in constant dollars.

Catastrophe Losses and Prior Period Development


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. For events outside of the
U.S. and Canada, we generally use a similar definition. We also define losses
from certain pandemics, such as COVID-19, as a catastrophe loss.


Prior period development includes adjustments relating 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. Refer to
the Non-GAAP Reconciliation section for further information on reinstatement
premiums on catastrophe losses and adjustments to prior period development.


                                                  Three Months Ended                Six Months Ended
                                                             June 30                         June 30
(in millions of U.S. dollars)                        2022       2021                 2022       2021
Catastrophe losses                   $      291              $ 280      $     624            $ 980
Favorable prior period development   $      247              $ 268      $     487            $ 460



Catastrophe losses through June 30, 2022 and 2021 were primarily from the
following events:
•2022: Severe weather-related events in the U.S. and internationally, Australia
storms, and Colorado wildfires.
•2021: Winter storm losses in the U.S. and other severe weather-related events
in the U.S. and internationally.

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.

Pre-tax net favorable PPD for the three months ended June 30, 2022 was $247
million, including adverse development of $155 million for molestation claims,
predominantly reviver statute-related. Excluding the adverse development, we had
favorable development of $402 million, with 59 percent in long-tail lines,
principally from accident years 2017 and prior, and 41 percent in short-tail
lines, primarily in A&H, specialty, and automobile lines.

Pre-tax net favorable PPD for the six months ended June 30, 2022 was
$487 million, including adverse development of $155 million for molestation
claims described above, predominantly reviver statute-related. This molestation
adverse development includes no change to the previously established reserve for
the Boy Scouts of America settlement. Excluding the adverse development, we had
favorable development of $642 million with 39 percent in long-tail lines,
principally from accident years 2017 and prior, and 61 percent in short-tail
lines, primarily in A&H, property, and specialty lines.

Pre-tax net favorable PPD for the three months ended June 30, 2021 was $268
million, including adverse development of $68 million for molestation claims.
Excluding the adverse development, we had favorable development of $336 million
with 28 percent in long-tail lines, principally from accident years 2017 and
prior, and 72 percent in short-tail lines, primarily in A&H, property, and
surety lines.

Pre-tax net favorable PPD for the six months ended June 30, 2021 was $460
million, including adverse development of $68 million for molestation claims
described above. Excluding the adverse development, we had favorable development
of $528 million with 25 percent in long-tail lines, principally from accident
years 2017 and prior, and 75 percent in short-tail lines, primarily in A&H,
property, and surety lines.

                                                                            

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Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.


P&C Combined Ratio
In evaluating our segments excluding Life Insurance financial performance, we
use the P&C combined ratio. We calculate this ratio by dividing the respective
expense amounts by net premiums earned. We do not calculate this ratio for the
Life Insurance segment as we do not use this measure to monitor or manage that
segment. A P&C combined ratio under 100 percent indicates underwriting income,
and a combined ratio exceeding 100 percent indicates underwriting loss.

                                                                         Three Months Ended                            Six Months Ended
                                                                                    June 30                                     June 30
                                                                 2022                  2021                  2022                  2021
Loss and loss expense ratio
CAY loss ratio excluding catastrophe losses                   57.8  %               58.6  %               57.1  %               57.9  %
Catastrophe losses                                             3.2  %                3.5  %                3.6  %                6.2  %
Prior period development                                      (2.7) %               (3.4) %               (3.3) %               (3.0) %
Loss and loss expense ratio                                   58.3  %               58.7  %               57.4  %               61.1  %
Policy acquisition cost ratio                                 17.6  %               18.4  %               18.5  %               18.9  %
Administrative expense ratio                                   8.1  %                8.4  %                8.3  %                8.6  %
P&C Combined ratio                                            84.0  %               85.5  %               84.2  %               88.6  %



The loss and loss expense ratio and the CAY loss ratio excluding catastrophe
losses decreased for the three and six months ended June 30, 2022, reflecting
earned rate exceeding loss cost trends. The loss and loss expense ratio for the
three months ended June 30, 2022 was favorably impacted by higher net premiums
earned, partially offset by higher catastrophe losses and lower favorable prior
period development. The loss and loss expense ratio for the six months ended
June 30, 2022 benefited from higher net premiums earned, lower catastrophe
losses compared to the prior year, and higher favorable prior period
development.

The policy acquisition cost ratio decreased for the three and six months ended
June 30, 2022, primarily due to a higher percentage of net premiums earned from
commercial P&C lines that have a lower acquisition cost ratio.

The administrative expense ratio decreased for the three and six months ended
June 30, 2022, primarily due to the favorable impact of higher net premiums
earned, partially offset by increased investment to support growth and higher
employee-related expenses.

Policy benefits
Policy benefits represent losses on contracts classified as long-duration and
generally include accident and supplemental health products, term and whole life
products, endowment products, and annuities. Refer to the Life Insurance segment
operating results section for further discussion.

For the three months ended June 30, 2022 and 2021, Policy benefits were $159
million and $185 million, respectively, which included (gains) losses from fair
value changes in separate account liabilities that do not qualify for separate
account reporting under GAAP of $(18) million and $15 million, respectively. The
offsetting movements of these liabilities are recorded in Other (income) expense
on the Consolidated statements of operations. Excluding the separate account
gains and losses, Policy benefits were $177 million and $170 million for the
three months ended June 30, 2022 and 2021, respectively.

For the six months ended June 30, 2022 and 2021, Policy benefits were
$304 million and $352 million, respectively, which included (gains) losses from
fair value changes in separate account liabilities that do not qualify for
separate account reporting under GAAP of $(49) million and $19 million,
respectively. The offsetting movements of these liabilities are recorded in
Other (income) expense on the Consolidated statements of operations. Excluding
the separate account gains and losses, Policy benefits were $353 million and
$333 million for the six months ended June 30, 2022 and 2021, respectively.

Refer to the respective sections that follow for a discussion of Net investment
income, Other (income) expense, Net realized gains (losses), Amortization of
purchased intangibles, and Income tax expense.

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Segment Operating Results - Three and Six Months Ended June 30, 2022 and 2021



We operate through six business segments: North America Commercial P&C
Insurance, North America Personal P&C Insurance, North America Agricultural
Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.
For more information on our segments refer to "Segment Information" under Item 1
in our 2021 Form 10-K.


North America Commercial P&C Insurance


The North America Commercial P&C Insurance segment comprises operations that
provide property and casualty (P&C) and accident & health (A&H) insurance and
services to large, middle market, and small commercial businesses in the U.S.,
Canada, and Bermuda. This segment includes our North America Major Accounts and
Specialty Insurance division (large corporate accounts and wholesale business),
and the North America Commercial Insurance division (principally middle market
and small commercial accounts).

                                                       Three Months Ended                                                   Six Months Ended
                                                                  June 30                         % Change                           June 30                         % Change
(in millions of U.S. dollars, except for
percentages)                                     2022             2021                       Q-22 vs. Q-21          2022             2021                   YTD-22 vs. YTD-21
Net premiums written                        $   4,665          $ 4,285                              8.9  %       $ 8,704          $ 7,949                              9.5  %
Net premiums earned                             4,248            3,803                             11.7  %         8,362            7,477                             11.8  %
Losses and loss expenses                        2,446            2,426                              0.8  %         4,943            4,986                             (0.9) %
Policy acquisition costs                          545              489                             11.5  %         1,118            1,003                             11.5  %
Administrative expenses                           277              245                             13.4  %           542              499                              8.6  %
Underwriting income                               980              643                             52.6  %         1,759              989                             78.0  %
Net investment income                             522              535                             (2.5) %         1,011            1,075                             (6.0) %
Other (income) expense                              -               14                                  NM             6               16                            (61.9) %
Segment income                              $   1,502          $ 1,164                             29.1  %       $ 2,764          $ 2,048                             35.0  %
Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses      61.4  %          63.7  %                   (2.3)      pts          61.5  %          63.6  %                   (2.1)      pts
Catastrophe losses                                2.9  %           4.3  %                   (1.4)      pts           2.4  %           7.0  %                   (4.6)      pts
Prior period development                         (6.7) %          (4.2) %                   (2.5)      pts          (4.8) %          (3.9) %                   (0.9)      pts
Loss and loss expense ratio                      57.6  %          63.8  %                   (6.2)      pts          59.1  %          66.7  %                   (7.6)      pts
Policy acquisition cost ratio                    12.8  %          12.9  %                   (0.1)      pts          13.4  %          13.4  %                      -       pts
Administrative expense ratio                      6.5  %           6.4  %                    0.1       pts           6.5  %           6.7  %                   (0.2)      pts
Combined ratio                                   76.9  %          83.1  %                   (6.2)      pts          79.0  %          86.8  %                   (7.8)      pts


NM - not meaningful

Catastrophe Losses and Prior Period Development                   Three Months Ended                       Six Months Ended
                                                                             June 30                                June 30
(in millions of U.S. dollars)                                    2022           2021                    2022           2021
Catastrophe losses                                      $      124          $ 165          $     205               $ 527
Favorable prior period development                      $      287          $ 156          $     395               $ 283



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Catastrophe losses through June 30, 2022 and 2021 were primarily from severe weather-related events and winter storm losses in the U.S.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Premiums

Net premiums written increased $380 million, or 8.9 percent, and $755 million,
or 9.5 percent, for the three and six months ended June 30, 2022, respectively,
comprising:
•Commercial lines: Positive growth of 8.7 percent and 9.6 percent, respectively,
reflecting strong premium retention, including both rate and exposure increases,
as well as new business across a number of retail and wholesale lines, including
property, primary and excess casualty, commercial multiple peril, surety, and
financial lines. Growth for the six months ended June 30, 2022 also reflects
strong premium retention, including rate and exposure increases, from workers'
compensation.
•Consumer lines: Positive growth of 11.6 percent and 7.9 percent, respectively,
due to recovery in A&H lines from exposure declines in the prior year and strong
new business.

Net premiums earned increased $445 million, or 11.7 percent, and $885 million,
or 11.8 percent for the three and six months ended June 30, 2022, respectively,
reflecting the growth in net premiums written described above.

Combined Ratio
The loss and loss expense ratio decreased for the three and six months ended
June 30, 2022, reflecting lower catastrophe losses, higher favorable prior
period development, and earned rate exceeding loss cost trends.

The administrative expense ratio was relatively flat for the three and six months ended June 30, 2022, primarily due to the favorable impact of higher net premiums earned, offset by higher employee-related expenses and increased investment to support growth.

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North America Personal P&C Insurance

The North America Personal P&C Insurance segment comprises operations that provide high net worth personal lines products, including homeowners and complementary products such as valuable articles, excess liability, automobile, and recreational marine insurance and services in the U.S. and Canada.

                                                       Three Months Ended                                                   Six Months Ended
                                                                  June 30                         % Change                           June 30                         % Change
(in millions of U.S. dollars, except for
percentages)                                     2022             2021                       Q-22 vs. Q-21          2022             2021                   YTD-22 vs. YTD-21
Net premiums written                        $   1,426          $ 1,363                              4.7  %       $ 2,606          $ 2,461                              5.9  %
Net premiums earned                             1,271            1,224                              3.9  %         2,518            2,408                              4.6  %
Losses and loss expenses                          773              676                             14.5  %         1,486            1,495                             (0.6) %
Policy acquisition costs                          258              245                              5.2  %           518              492                              5.1  %
Administrative expenses                            73               67                              8.9  %           142              127                             12.0  %
Underwriting income                               167              236                            (29.4) %           372              294                             26.7  %
Net investment income                              64               64                                -              123              129                             (4.5) %
Other (income) expense                              1               (5)                                 NM             2               (4)                                 NM
Amortization of purchased intangibles               3                3                                -                5                6                             (5.2) %
Segment income                              $     227          $   302                            (25.0) %       $   488          $   421                             15.8  %
Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses      53.6  %          53.6  %                      -       pts          53.4  %          53.4  %                      -       pts
Catastrophe losses                                7.4  %           5.3  %                    2.1       pts           7.7  %          12.2  %                   (4.5)      pts
Prior period development                         (0.2) %          (3.7) %                    3.5       pts          (2.1) %          (3.5) %                    1.4       pts
Loss and loss expense ratio                      60.8  %          55.2  %                    5.6       pts          59.0  %          62.1  %                   (3.1)      pts
Policy acquisition cost ratio                    20.3  %          20.0  %                    0.3       pts          20.5  %          20.4  %                    0.1       pts
Administrative expense ratio                      5.8  %           5.5  %                    0.3       pts           5.7  %           5.3  %                    0.4       pts
Combined ratio                                   86.9  %          80.7  %                    6.2       pts          85.2  %          87.8  %                   (2.6)      pts


NM - not meaningful

Catastrophe Losses and Prior Period Development                   Three Months Ended                       Six Months Ended
                                                                             June 30                                June 30
(in millions of U.S. dollars)                                    2022           2021                    2022           2021
Catastrophe losses                                      $       95          $  61          $     195               $ 301
Favorable prior period development                      $        3          $  44          $      54               $  84



Catastrophe losses through June 30, 2022 and 2021 were primarily from the following events: •2022: Severe weather-related events in the U.S. and Colorado wildfires. •2021: Winter storm losses and other severe weather-related events in the U.S.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Premiums

Net premiums written increased $63 million, or 4.7 percent, and $145 million, or
5.9 percent for the three and six months ended June 30, 2022, respectively,
primarily driven by new business and strong renewal retention, from both rate
and exposure increases, primarily in homeowners and automobile; partially offset
by additional cancellations in parts of California exposed to wildfires.

Net premiums earned increased $47 million, or 3.9 percent, and $110 million, or 4.6 percent for the three and six months ended June 30, 2022, respectively, reflecting the growth in net premiums written described above.

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Combined Ratio
The loss and loss expense ratio increased for the three months ended June 30,
2022, primarily from higher catastrophe losses and lower favorable prior period
development. The loss and loss expense ratio decreased for the six months ended
June 30, 2022, reflecting lower catastrophe losses compared to the prior year,
partially offset by lower favorable prior period development. The CAY loss ratio
excluding catastrophe losses was flat for the three and six months ended June
30, 2022, reflecting slightly higher losses in automobile, offset by earned rate
exceeding loss cost trends in homeowners.

The policy acquisition cost ratio increased for the three and six months ended
June 30, 2022, primarily due to a higher year-over-year amount of supplemental
commissions.

The administrative expense ratio increased for the three and six months ended June 30, 2022, primarily due to increased investment to support growth and higher employee-related expenses.

North America Agricultural Insurance


The North America Agricultural Insurance segment comprises our North American
based businesses that provide a variety of coverages in the U.S. and Canada
including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and
crop-hail through Rain and Hail Insurance Service, Inc. (Rain and Hail) as well
as farm and ranch and specialty P&C commercial insurance products and services
through our Chubb Agribusiness unit.

                                                          Three Months Ended                                                   Six Months Ended
                                                                     June 30                         % Change                           June 30                         % Change
(in millions of U.S. dollars, except for
percentages)                                    2022                 2021                       Q-22 vs. Q-21           2022            2021                   YTD-22 vs. YTD-21
Net premiums written                        $    738                $ 512                             44.0  %       $    800           $ 695                             15.1  %
Net premiums earned                              573                  410                             39.6  %            544             520                              4.6  %
Losses and loss expenses                         478                  331                             44.1  %            386             416                             (7.3) %
Policy acquisition costs                          31                   27                             14.2  %             43              39                             10.4  %
Administrative expenses                            2                    3                            (24.3) %              1               6                            (86.6) %
Underwriting income                               62                   49                             26.9  %            114              59                             93.9  %
Net investment income                              7                    8                             (1.0) %             14              15                             (5.3) %

Amortization of purchased intangibles              6                    6                                -                13              13                                -
Segment income                              $     63                $  51                             25.6  %       $    115           $  61                             90.1  %
Loss and loss expense ratio:
CAY loss ratio excluding catastrophe losses     79.6   %             79.7  %                   (0.1)      pts           77.9   %        77.9  %                      -       pts
Catastrophe losses                               3.7   %              1.0  %                    2.7       pts            4.0   %         2.3  %                    1.7       pts
Prior period development                           -                    -                         -       pts          (11.0)  %        (0.2) %                  (10.8)      pts
Loss and loss expense ratio                     83.3   %             80.7  %                    2.6       pts           70.9   %        80.0  %                   (9.1)      pts
Policy acquisition cost ratio                    5.4   %              6.7  %                   (1.3)      pts            8.0   %         7.6  %                    0.4       pts
Administrative expense ratio                     0.4   %              0.7  %                   (0.3)      pts            0.1   %         1.1  %                   (1.0)      pts
Combined ratio                                  89.1   %             88.1  %                    1.0       pts           79.0   %        88.7  %                   (9.7)      pts






Catastrophe Losses and Prior Period Development                     Three Months Ended                 Six Months Ended
                                                                               June 30                          June 30
(in millions of U.S. dollars)                                     2022            2021              2022           2021
Catastrophe losses                                      $        21          $    4          $     21          $  12
Favorable prior period development                      $         -          $    -          $     26          $   2



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Catastrophe losses through June 30, 2022 and 2021 were primarily from severe weather-related events in Chubb Agribusiness and winter storm losses in the U.S.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

Premiums

Net premiums written increased $226 million, or 44.0 percent for the three
months ended June 30, 2022, primarily due to an increase in MPCI, primarily
reflecting higher commodity prices and policy count growth. Net premiums written
increased $105 million, or 15.1 percent for the six months ended June 30, 2022,
primarily due to an increase in MPCI due to the factors noted above, partly
offset by a return of premium to the U.S. government in the first quarter of
2022 of $161 million. Under the profit-sharing agreement, we returned additional
premiums to the government because of the lower losses experienced in certain
states in 2021. This return of premium reduced net premiums written growth for
the six months ended June 30, 2022 by 23.2 percentage points.

Net premiums earned increased $163 million, or 39.6 percent, and increased $24 million, or 4.6 percent for the three and six months ended June 30, 2022, respectively, reflecting the growth in net premiums written described above.


Combined Ratio
The combined ratio for the six months ended June 30, 2022, was impacted by the
return of premium to the U.S. government under the profit-sharing agreement
related to the profitable 2021 crop year described above. This prior period
development resulted in a reduction to net premiums earned of $161 million and a
corresponding reduction to incurred losses, with no net impact to underwriting
income.

The loss and loss expense ratio increased for the three months ended June 30,
2022, primarily from higher catastrophe losses. The loss and loss expense ratio
decreased for the six months ended June 30, 2022, primarily due to the impact of
the return of premium described above. The CAY loss ratio excluding catastrophe
losses was relatively flat for the three and six months ended June 30, 2022.

The policy acquisition cost ratio decreased for the three months ended June 30,
2022, primarily due to the favorable impact of higher net premiums earned from
MPCI. The policy acquisition cost ratio increased for the six months ended June
30, 2022, primarily due to the impact of the return of premium described above.
The CAY policy acquisition cost ratio, which excludes the unfavorable impact of
catastrophe losses and prior period development of 1.7 percentage points,
decreased 1.3 percentage points for the six months ended June 30, 2022, mainly
due to the favorable impact of higher net premiums earned from MPCI.

The administrative expense ratio decreased for the three and six months ended
June 30, 2022, reflecting the favorable impact of higher net premiums earned
from MPCI, higher Administrative and Operating (A&O) reimbursements on the MPCI
business, and strong expense management.


                                                                            

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Overseas General Insurance

Overseas General Insurance segment comprises Chubb International and Chubb
Global Markets (CGM). Chubb International comprises our international commercial
P&C traditional and specialty lines serving large corporations, middle market
and small customers; A&H and traditional and specialty personal lines business
serving local territories outside the U.S., Bermuda, and Canada. CGM, our
London-based international commercial P&C excess and surplus lines business,
includes Lloyd's of London (Lloyd's) Syndicate 2488. Chubb provides funds at
Lloyd's to support underwriting by Syndicate 2488 which is managed by Chubb
Underwriting Agencies Limited.

                                                       Three Months Ended                                                   Six Months Ended
                                                                  June 30                         % Change                           June 30                       % Change
(in millions of U.S. dollars, except for
percentages)                                     2022             2021                       Q-22 vs. Q-21          2022             2021                 YTD-22 vs. YTD-21
Net premiums written                        $   2,640          $ 2,497                              5.7  %       $ 5,719          $ 5,387                            6.2  %
Net premiums written - constant dollars                                                            12.4  %                                                          12.1  %
Net premiums earned                             2,696            2,579                              4.6  %         5,324            5,057                            5.3  %
Losses and loss expenses                        1,224            1,186                              3.2  %         2,613            2,449                            6.7  %
Policy acquisition costs                          697              699                             (0.3) %         1,376            1,367                            0.6  %
Administrative expenses                           278              279                             (0.4) %           547              545                            0.4  %
Underwriting income                               497              415                             19.9  %           788              696                           13.2  %
Net investment income                             162              149                              8.7  %           309              290                            6.5  %
Other (income) expense                              3                2                             30.8  %             5                3                           45.8  %
Amortization of purchased intangibles              14               13                             17.4  %            28               25                           13.8  %
Segment income                              $     642          $   549                             16.9  %       $ 1,064          $   958                           11.1  %

Loss and loss expense ratio:

  CAY loss ratio excluding catastrophe
losses                                           50.0  %          50.6  %                   (0.6)      pts          49.7  %          50.3  %                 (0.6)      pts
  Catastrophe losses                              1.8  %           1.6  %                    0.2       pts           3.8  %           1.8  %                  2.0       pts
  Prior period development                       (6.4) %          (6.2) %                   (0.2)      pts          (4.4) %          (3.7) %                 (0.7)      pts
Loss and loss expense ratio                      45.4  %          46.0  %                   (0.6)      pts          49.1  %          48.4  %                  0.7       pts
Policy acquisition cost ratio                    25.9  %          27.1  %                   (1.2)      pts          25.8  %          27.0  %                 (1.2)      pts
Administrative expense ratio                     10.3  %          10.8  %                   (0.5)      pts          10.3  %          10.8  %                 (0.5)      pts
Combined ratio                                   81.6  %          83.9  %                   (2.3)      pts          85.2  %          86.2  %                 (1.0)      pts



Catastrophe Losses and Prior Period Development

                                                  Three Months Ended                Six Months Ended
                                                             June 30                         June 30
(in millions of U.S. dollars)                        2022       2021                 2022       2021
Catastrophe losses                   $       49              $  40      $     200            $  90
Favorable prior period development   $      173              $ 156      $     233            $ 181



Catastrophe losses through June 30, 2022 and 2021 were primarily from the following events: •2022: International weather-related events and storms in Australia. •2021: Winter storm losses in the U.S. and international weather-related events.

Refer to the prior period development discussion in Note 6 to the Consolidated Financial Statements for additional information.

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Net Premiums Written by Region                                                                                                          Three months ended June 30
(in millions of U.S. dollars,
except for percentages)                                  2022                                     2021               C$                                    C$ Q-22
Region                             2022            % of Total          2021                 % of Total             2021        Q-22 vs. Q-21              vs. Q-21
Europe, Middle East, and
Africa                         $  1,203                 46  %       $ 1,188                      48  %       $ 1,106                  1.3  %                8.7  %
Latin America                       549                 21  %           451                      18  %           446                 21.5  %               23.2  %
Asia Pacific                        690                 26  %           652                      26  %           613                  5.6  %               12.5  %
Japan                               143                  5  %           162                       6  %           142                (11.7) %                0.8  %

Other (1)                            55                  2  %            44                       2  %            41                 28.3  %               36.8  %
Net premiums written           $  2,640                100  %       $ 2,497                     100  %       $ 2,348                  5.7  %               12.4  %



                                                                                                                                        Six months ended June 30
(in millions of U.S. dollars,
except for percentages)                                 2022                                     2021               C$                                   C$ Y-22
Region                            2022            % of Total          2021                 % of Total             2021       Y-22 vs. Y-21              vs. Y-21
Europe, Middle East, and
Africa                         $ 2,857                 50  %       $ 2,739                      51  %       $ 2,588                 4.3  %               10.4  %
Latin America                    1,154                 20  %           988                      18  %           958                16.8  %               20.5  %
Asia Pacific                     1,333                 23  %         1,255                      23  %         1,184                 6.2  %               12.6  %
Japan                              258                  5  %           286                       6  %           255                (9.8) %                1.1  %

Other (1)                          117                  2  %           119                       2  %           115                (1.7) %                1.7  %
Net premiums written           $ 5,719                100  %       $ 5,387                     100  %       $ 5,100                 6.2  %               12.1  %

(1) Includes the international supplemental A&H business of Combined Insurance and other international operations including mainland China.

Premiums

Overall, net premiums written increased $143 million and $332 million, or
$292 million and $619 million on a constant dollar basis, for the three and six
months ended June 30, 2022, respectively, reflecting growth in both commercial
and consumer lines. For the three and six months ended June 30, 2022, commercial
lines grew 7.0 percent and 7.9 percent, or 13.0 percent and 13.3 percent on a
constant-dollar basis, respectively, and consumer lines grew 3.9 percent and 3.4
percent, or 11.6 percent and 10.2 percent on a constant-dollar basis,
respectively.

Growth in our European division for the three and six months ended June 30, 2022
was supported by both our wholesale and retail divisions. This growth was
primarily driven by higher new business, premium retention, and positive rate
increases in commercial lines, including commercial property and casualty, and
financial lines. Consumer lines increased primarily due to A&H, reflecting
increased travel volume. Additionally, A&H in the prior year was adversely
impacted by restrictions resulting from the COVID-19 pandemic.

Latin America increased for the three and six months ended June 30, 2022 driven
by growth in consumer lines, including automobile in personal and travel in A&H.
Commercial lines also grew due to exposure increases, positive rate increases,
and new business, primarily property.

Asia Pacific increased for the three and six months ended June 30, 2022 driven
by higher new business, higher retention and positive rate increases in
commercial lines, including property and casualty, financial lines, and growth
in consumer lines, primarily specialty and high net worth in personal, and
travel in A&H.

Japan increased for the three and six months ended June 30, 2022 on a constant-dollar basis primarily from new business in A&H.


Net premiums earned increased $117 million and $267 million, or $270 million and
$531 million on a constant-dollar basis, for the three and six months ended June
30, 2022, respectively, reflecting the increase in net premiums written
described above.

Combined Ratio
The loss and loss expense ratio decreased for the three months ended June 30,
2022, due to underlying loss ratio improvement and higher favorable prior period
development, partially offset by higher catastrophe losses. The loss and loss
expense ratio increased for the six months ended June 30, 2022, primarily due to
higher catastrophe losses, partially offset by higher

                                                                            

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favorable prior period development. The CAY loss ratio excluding catastrophe
losses decreased for the three and six months ended June 30, 2022, primarily
reflecting underlying loss ratio improvement, including earned rate exceeding
loss cost trends.

The policy acquisition cost ratio decreased for the three and six months ended
June 30, 2022, primarily due to a change in the mix of business, including
higher premiums earned from commercial lines that have a lower acquisition cost
ratio than consumer lines.

The administrative expense ratio decreased for the three and six months ended
June 30, 2022, reflecting continued expense management control and the favorable
impact of higher net premiums earned.

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Global Reinsurance

The Global Reinsurance segment represents our reinsurance operations comprising
Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International,
and Chubb Tempest Re Canada. Global Reinsurance markets its reinsurance products
worldwide primarily through reinsurance brokers under the Chubb Tempest Re brand
name and provides a broad range of traditional and non-traditional reinsurance
coverage to a diverse array of primary P&C companies.

                                                    Three Months Ended                                             Six Months Ended
                                                               June 30                   % Change                           June 30                        % Change
(in millions of U.S. dollars, except
for percentages)                          2022                 2021                 Q-22 vs. Q-21           2022            2021                  YTD-22 vs. YTD-21
Net premiums written                  $    262                $ 274                       (4.0) %       $    515           $ 481                             7.2  %
Net premiums written - constant
dollars                                                                                   (3.2) %                                                            7.9  %
Net premiums earned                        222                  192                       15.2  %            457             372                            22.7  %
Losses and loss expenses                   139                  110                       26.9  %            254             230                            10.4  %
Policy acquisition costs                    57                   47                       19.5  %            119              92                            29.1  %
Administrative expenses                     10                   10                          -                19              18                             4.6  %
Underwriting income                         16                   25                      (38.3) %             65              32                           101.6  %
Net investment income                       76                   81                       (5.6) %            161             151                             6.6  %
Other (income) expense                       1                    -                            NM              1               -                                 NM

Segment income                        $     91                $ 106                      (14.3) %       $    225           $ 183                            22.9  %

Loss and loss expense ratio:
  CAY loss ratio excluding
catastrophe losses                        49.7   %             50.9  %             (1.2)      pts           49.8   %        49.6  %                   0.2       pts
  Catastrophe losses                       0.8   %              5.2  %             (4.4)      pts            0.6   %        14.2  %                 (13.6)      pts
  Prior period development                12.1   %              0.7  %             11.4       pts            5.1   %        (2.1) %                   7.2       pts
Loss and loss expense ratio               62.6   %             56.8  %              5.8       pts           55.5   %        61.7  %                  (6.2)      pts
Policy acquisition cost ratio             25.6   %             24.7  %              0.9       pts           26.1   %        24.8  %                   1.3       pts
Administrative expense ratio               4.6   %              5.1  %             (0.5)      pts            4.1   %         4.8  %                  (0.7)      pts
Combined ratio                            92.8   %             86.6  %              6.2       pts           85.7   %        91.3  %                  (5.6)      pts


NM - not meaningful

Catastrophe Losses and Prior Period Development


                                                                  Three Months Ended                   Six Months Ended
                                                                             June 30                            June 30
(in millions of U.S dollars)                                     2022           2021                2022           2021
Catastrophe losses                                      $        2          

$ 10 $ 3 $ 50 (Unfavorable) favorable prior period development $ (25) $ - $ (22) $ 7

Catastrophe losses through June 30, 2022 were primarily from storms in Australia. Catastrophe losses through June 30, 2021 were primarily from winter storm losses in the U.S.

Premiums

Net premiums written decreased $12 million for the three months ended June 30,
2022 as the impact of new treaties bound was offset by a one-time portfolio
transfer in the prior year. Net premiums written increased $34 million for the
six months ended June 30, 2022 due to continued growth in the portfolio
reflecting the impact of new treaties bound in the current year and in 2021, and
favorable premium adjustments.

Net premiums earned increased $30 million and $85 million for the three and six
months ended June 30, 2022, respectively, primarily reflecting the factors as
described above. The change was also due to the impact of higher new business
written in the prior year for which premiums are earned in the current year.

                                                                            

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Combined Ratio
The loss and loss expense ratio increased for the three months ended June 30,
2022, primarily due to unfavorable prior period development in the current year.
The loss and loss expense ratio decreased for the six months ended June 30,
2022, primarily due to lower catastrophe losses, partially offset by unfavorable
prior period development in the current year. The CAY loss ratio excluding
catastrophe losses decreased for the three months ended June 30, 2022 primarily
due to a shift in the mix of business.

The policy acquisition cost ratio increased for the three and six months ended June 30, 2022, primarily due to a shift in the mix of business.

The administrative expense ratio decreased for the three and six months ended June 30, 2022, primarily from the favorable impact of higher net premiums earned.

Life Insurance


The Life Insurance segment comprises our international life operations, Chubb
Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and
life business of Combined Insurance. We assess the performance of our life
business based on Life Insurance underwriting income, which includes Net
investment income and (Gains) losses from fair value changes in separate account
assets that do not qualify for separate account reporting under GAAP.

                                                       Three Months Ended                                                Six Months Ended
                                                                  June 30                    % Change                             June 30                 % Change
(in millions of U.S. dollars, except for
percentages)                                       2022           2021                  Q-22 vs. Q-21            2022             2021           YTD-22 vs. YTD-21
Net premiums written                         $      571          $ 615                        (7.2) %       $   1,157          $ 1,235                     (6.4) %
Net premiums written - constant dollars                                                       (4.9) %                                                      (4.2) %
Net premiums earned                                 547            605                        (9.6) %           1,098            1,200                     (8.5) %
Losses and loss expenses                            148            185                       (20.8) %             302              383                    (21.5) %
Policy benefits                                     177            170                         3.9  %             353              333                      6.0  %
Policy acquisition costs                            151            191                       (20.4) %             302              370                    (18.1) %
Administrative expenses                              88             83                         5.3  %             172              165                      3.7  %
Net investment income                               109            101                         7.5  %             212              199                      6.3  %
Life Insurance underwriting income                   92             77                        20.9  %             181              148                     22.7  %
Other (income) expense                              (12)           (26)                      (56.3) %             (40)             (60)                   (34.0) %
Amortization of purchased intangibles                 3              1                        65.8  %               5                2                     99.2  %
Segment income                               $      101          $ 102                         0.3  %       $     216          $   206                      5.2  %



Premiums
Net premiums written decreased $44 million and $78 million, or $29 million and
$50 million on a constant-dollar basis, for the three and six months ended June
30, 2022, respectively. For our international life operations, net premiums
written decreased 4.9 percent for the three months ended June 30, 2022, as
growth in Asia from new business, principally in Thailand and Indonesia, was
offset by lower business in Hong Kong and Korea, driven by the continued impact
of the pandemic on our agency force, and Latin America, principally reflecting
the non-renewal of certain large account business in Chile. For the six months
ended June 30, 2022, net premiums written declined 4.7 percent as growth in
Thailand, Taiwan, Indonesia and Vietnam were more than offset by declines in
Hong Kong, Korea, and Latin America as noted above. Net premiums written in our
North American Combined Insurance business declined 10.2 percent and 8.8
percent, for the three and six months ended June 30, 2022, respectively,
primarily due to the non-renewal of a large program.


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Deposits
The following table presents deposits collected on universal life and investment
contracts:
                                                       Three Months Ended                                                                        Six Months Ended
                                                                  June 30                               % Change                                          June 30                                 % Change
                                                                                                              C$                                                                                        C$
(in millions of U.S. dollars,                                          C$           Q-22 vs.            Q-22 vs.                                                            Y-22 vs.              Y-22 vs.
except for percentages)                2022           2021           2021               Q-21                Q-21           2022             2021          C$ 2021               Y-21                  Y-21
Deposits collected on
universal life and investment
contracts                      $   427            $ 605          $ 591              (29.3) %            (27.5) %       $ 984          $ 1,156          $ 1,145              (14.9) %              (14.1) %



Deposits collected on universal life and investment contracts (life deposits)
are not reflected as revenues in our Consolidated statements of operations in
accordance with GAAP. New life deposits are an important component of
production, and although they do not significantly affect current period income
from operations, they are key to our efforts to grow our business. Life deposits
collected decreased $178 million and $172 million for the three and six months
ended June 30, 2022, respectively, primarily in Taiwan, reflecting challenging
market conditions for deposit products. The prior year benefited from successful
sales campaigns in broker and bank channels in Taiwan.

Life Insurance underwriting income and Segment income
Life Insurance underwriting income increased $15 million and $33 million for the
three and six months ended June 30, 2022, respectively, reflecting lower
year-over-year COVID-related losses and lower policy acquisition costs primarily
due to the decrease in net premiums written and deposits collected noted above.
Segment income was flat for the three months ended June 30, 2022. Segment income
increased $10 million for the six months ended June 30, 2022, primarily due to
the increase in underwriting income described above, partially offset by lower
income from our investment in Huatai, our partially-owned insurance entity in
China.

Corporate

Corporate results primarily include the results of our non-insurance companies,
income and expenses not attributable to reportable segments and loss and loss
expenses of asbestos and environmental (A&E) liabilities and certain other
non-A&E run-off exposures, including molestation.
                                                                Three Months Ended                                                   Six Months Ended
                                                                           June 30                    % Change                                June 30                 % Change
(in millions of U.S. dollars, except for
percentages)                                          2022                 2021                  Q-22 vs. Q-21              2022                 2021        YTD-22 vs. YTD-21
Losses and loss expenses                     $         191               $   89                       116.2  %       $       201          $     98                    105.9  %
Administrative expenses                                 90                   88                         0.3  %               173               159                      8.9  %
Underwriting loss                                      281                  177                        58.6  %               374               257                     45.8  %
Net investment income (loss)                            (4)                 (15)                      (75.6) %                (9)              (32)                   (74.4) %
Interest expense                                       134                  122                        10.7  %               266               244                      9.0  %
Net realized gains (losses)                           (513)                 (36)                            NM              (413)              852                          NM
Other (income) expense                                 138                 (708)                            NM              (121)           (1,123)                   (89.2) %
Amortization of purchased intangibles                   45                   50                        (8.0) %                91                99                     (7.8) %
Cigna integration expenses                               3                    -                             NM                 3                 -                          NM
Income tax expense                                     293                  317                        (7.5) %               648               655                     (1.0) %
Net income (loss)                            $      (1,411)              $   (9)                            NM       $    (1,683)         $    688                          NM


NM - not meaningful

Losses and loss expenses primarily includes unfavorable prior period development for molestation claims.


Administrative expenses were relatively flat for the three months ended June 30,
2022. Administrative expenses increased $14 million for the six months ended
June 30, 2022, primarily due to higher employee-related expenses and increased
investment to support growth.

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Cigna integration expenses are one-time in nature and are not related to the
on-going business activities of the segments. The Chief Executive Officer does
not manage segment results or allocate resources to segments when considering
these costs and they are therefore excluded from our definition of segment
income.

Refer to the respective sections that follow for a discussion of Net realized
gains (losses), Net investment income (loss), Amortization of purchased
intangibles, and Income tax expense (benefit). Refer to Note 11 to the
Consolidated Financial Statements for additional information on Other (income)
expense.

                   Net Realized and Unrealized Gains (Losses)


We take a long-term view with our investment strategy, and our investment
managers manage our investment portfolio to maximize total return within
specific guidelines designed to minimize risk. The majority of our investment
portfolio is available for sale and reported at fair value. Our held to maturity
investment portfolio is reported at amortized cost, net of valuation allowance.

The effect of market movements on our fixed maturities portfolio impacts Net
income (through Net realized gains (losses)) when securities are sold, when we
write down an asset, or when we record a change to the valuation allowance for
expected credit losses. For a further discussion related to how we assess the
valuation allowance for expected credit losses and the related impact on Net
income, refer to Note 1 e) to the Consolidated Financial Statements in our 2021
Form 10-K. Additionally, Net income is impacted through the reporting of changes
in the fair value of equity securities, private equity funds where we own less
than three percent, and derivatives, including financial futures, options,
swaps, and GLB reinsurance. Changes in unrealized appreciation and depreciation
on available for sale securities, resulting from the revaluation of securities
held, changes in cumulative foreign currency translation adjustment, and
unrealized postretirement benefit obligations liability adjustment, are reported
as separate components of Accumulated other comprehensive income in
Shareholders' equity in the Consolidated balance sheets.

The following tables present our net realized and unrealized gains (losses):
                                                                                                                            Three Months Ended June 30
                                                                                          2022                                                    2021
                                                    Net                  Net                                  Net                 Net
                                               Realized           Unrealized                             Realized          Unrealized
                                                  Gains                Gains               Net              Gains               Gains              Net
(in millions of U.S. dollars)                  (Losses)             (Losses)            Impact           (Losses)            (Losses)           Impact
Fixed maturities                           $    (442)         $    (4,344) 

$ (4,786) $ 12 $ 694 $ 706 Fixed income and equity derivatives

              (81)                   -               (81)               (91)                  -              (91)
Public equity
Sales                                            163                    -               163                 45                   -               45
Mark-to-market                                  (426)                   -              (426)               105                   -              105
Private equity (less than 3 percent
ownership)

Mark-to-market                                     4                    -                 4                 62                   -               62
Total investment portfolio                      (782)              (4,344)           (5,126)               133                 694              827
Mark-to-market from variable annuity
reinsurance derivative transactions, net
of applicable hedges                               1                    -                 1                (72)                  -              (72)
Other derivatives                                  9                    -                 9                  3                   -                3
Foreign exchange                                 268                 (777)             (509)               (97)                308              211
Other                                              -                    5                 5                  -                  (9)              (9)
Net gains (losses), pre-tax                $    (504)         $    (5,116)         $ (5,620)         $     (33)         $      993          $   960



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                                                                                                                                 Six Months Ended June 30
                                                                                           2022                                                      2021
                                                    Net                  Net                                   Net                  Net
                                               Realized           Unrealized                              Realized           Unrealized
                                                  Gains                Gains                Net              Gains                Gains               Net
(in millions of U.S. dollars)                  (Losses)             (Losses)             Impact           (Losses)             (Losses)            Impact
Fixed maturities                           $    (578)         $    (8,996) 

$ (9,574) $ 36 $ (1,623) $ (1,587) Fixed income and equity derivatives

              (34)                   -                (34)                18                    -                18
Public equity
Sales                                            418                    -                418                 90                    -                90
Mark-to-market                                  (625)                   -               (625)               427                    -               427
Private equity (less than 3 percent
ownership)

Mark-to-market                                    59                    -                 59                100                    -               100
Total investment portfolio                      (760)              (8,996)            (9,756)               671               (1,623)             (952)
Mark-to-market from variable annuity
reinsurance derivative transactions, net
of applicable hedges                              78                    -                 78                203                    -               203
Other derivatives                                 10                    -                 10                  2                    -                 2
Foreign exchange                                 343                 (710)              (367)               (21)                 330               309
Other (1)                                        (74)                  24                (50)                (1)                 (37)              (38)
Net gains (losses), pre-tax                $    (403)         $    (9,682)         $ (10,085)         $     854          $    (1,330)         $   (476)

(1) Other realized losses include impairment of assets related to Chubb's Russian entities.


Pre-tax net unrealized losses of $4,344 million and $8,996 million in our
investment portfolio for the three and six months ended June 30, 2022,
respectively, were principally the result of an increase in interest rates. In
addition, there were realized losses of $782 million and $760 million for the
three and six months ended June 30, 2022, respectively, primarily from
mark-to-market losses on public equities and sales in fixed income securities.

The variable annuity reinsurance derivative transactions consist of changes in
the fair value of GLB liabilities and gains or losses on other derivative
instruments we maintain that decrease in fair value when the S&P 500 index
increases. The variable annuity reinsurance derivative transactions resulted in
realized gains of $1 million for the three months ended June 30, 2022,
reflecting a net loss of $143 million, primarily from an increase in the fair
value of the GLB liabilities, and a net realized gain of $144 million related to
these derivative instruments. The variable annuity reinsurance derivative
transactions resulted in realized gains of $78 million for the six months ended
June 30, 2022, reflecting a net loss of $108 million, primarily from an increase
in the fair value of the GLB liabilities, and a net realized gain of $186
million related to these derivative instruments. The increase in the fair value
of the GLB liabilities for the three and six months ended June 30, 2022, was
primarily due to lower global equity markets and higher volatility, partially
offset by higher interest rates.

For the three months ended June 30, 2021, the variable annuity reinsurance
derivative transactions resulted in realized losses of $72 million, reflecting
principally a net realized loss of $64 million related to these other
derivatives. The fair value of the GLB liabilities remained relatively flat for
the three months ended June 30, 2021, as the impact of higher global equity
markets was offset by lower interest rates. For the six months ended June 30,
2021, the variable annuity reinsurance derivative transactions resulted in
realized gains of $203 million reflecting a net gain of $311 million principally
related to a decrease in the fair value of the GLB liabilities due to higher
interest rates and higher global equity markets, partially offset by a net
realized loss of $108 million related to these other derivatives.

                          Effective Income Tax Rate


Our effective tax rate (ETR) reflects a mix of income or losses in jurisdictions
with a wide range of tax rates, permanent differences between GAAP and local tax
laws, and the impact of discrete items. A change in the geographic mix of
earnings could impact our ETR.


                                                                            

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For the three and six months ended June 30, 2022 our ETR was 19.4 percent and
16.9 percent, respectively. This compares to an ETR of 12.3 percent and 12.5
percent for the three and six months ended June 30, 2021, respectively. The ETR
for each period was impacted by our mix of earnings among various jurisdictions
and discrete tax benefits.

                            Non-GAAP Reconciliation


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 GAAP.

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 book value comparisons to less acquisitive peer
companies are more meaningful when adjusted for goodwill and other intangible
assets. The calculation of tangible book value per share does not consider the
embedded goodwill attributable to our investments in partially-owned insurance
companies until we consolidate.

We provide financial measures, including net premiums written, net premiums
earned, and underwriting income on a constant-dollar basis. 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.

P&C performance metrics comprise consolidated operating results (including
Corporate) and exclude the operating results of the Life Insurance segment. We
believe that these measures are useful and meaningful to investors as they are
used by management to assess the company's P&C operations which are the most
economically similar. We exclude the Life Insurance segment because the results
of this business do not always correlate with the results of our P&C operations.

P&C combined ratio is 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.
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.

CAY P&C combined ratio excluding catastrophe losses (CATs) excludes CATs and
prior period development (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.

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 PPD 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 adjustable 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.



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The following tables present the calculation of combined ratio, as reported for each segment to P&C combined ratio, adjusted for CATs and PPD:


Three Months Ended
June 30, 2022                                       North America            North America
(in millions of U.S. dollars except                Commercial P&C             Personal P&C                North America       Overseas General              Global
for ratios)                                             Insurance                Insurance       Agricultural Insurance              Insurance         Reinsurance           Corporate         Total P&C
Numerator

Losses and loss expenses                   A $       2,446              $       773              $          478               $    1,224             $      139          $      191          $  5,251
Catastrophe losses and related
adjustments
Catastrophe losses, net of related
adjustments                                           (124)                     (95)                        (21)                     (49)                    (2)                  -              (291)
Reinstatement premiums collected
(expensed) on catastrophe losses                         -                        -                           -                        -                      -                   -                 -
Catastrophe losses, gross of
related adjustments                                   (124)                     (95)                        (21)                     (49)                    (2)                  -              (291)
PPD and related adjustments
PPD, net of related adjustments -
favorable (unfavorable)                                287                        3                           -                      173                    (25)               (191)              247
Net premiums earned adjustments on
PPD - unfavorable (favorable)                            3                        -                           -                        -                      -                   -                 3
Expense adjustments - unfavorable
(favorable)                                             (1)                       -                           -                        -                      -                   -                (1)
PPD reinstatement premiums -
unfavorable (favorable)                                  -                        -                           -                        -                     (3)                  -                (3)
PPD, gross of related adjustments -
favorable (unfavorable)                                289                        3                           -                      173                    (28)               (191)              246
CAY loss and loss expense ex CATs          B $       2,611              $       681              $          457               $    1,348             $      109          $        -          $  5,206
Policy acquisition costs and
administrative expenses
Policy acquisition costs and
administrative expenses                    C $         822              $       331              $           33               $      975             $       67          $       90          $  2,318
Expense adjustments - favorable
(unfavorable)                                            1                        -                           -                        -                      -                   -                 1
Policy acquisition costs and
administrative expenses, adjusted          D $         823              $       331              $           33               $      975             $       67          $       90          $  2,319
Denominator
Net premiums earned                        E $       4,248              $     1,271              $          573               $    2,696             $      222                              $  9,010

Net premiums earned adjustments on
PPD - unfavorable (favorable)                            3                        -                           -                        -                      -                                     3
PPD reinstatement premiums -
unfavorable (favorable)                                  -                        -                           -                        -                     (3)                                   (3)
Net premiums earned excluding
adjustments                                F $       4,251              $     1,271              $          573               $    2,696             $      219                              $  9,010
P&C Combined ratio
Loss and loss expense ratio              A/E          57.6      %              60.8      %                 83.3       %             45.4     %             62.6  %                               58.3  %
Policy acquisition cost and
administrative expense ratio             C/E          19.3      %              26.1      %                  5.8       %             36.2     %             30.2  %                               25.7  %
P&C Combined ratio                                    76.9      %              86.9      %                 89.1       %             81.6     %             92.8  %                               84.0  %
CAY P&C Combined ratio ex CATs
Loss and loss expense ratio,
adjusted                                 B/F          61.4      %              53.6      %                 79.6       %             50.0     %             49.7  %                               57.8  %
Policy acquisition cost and
administrative expense ratio,
adjusted                                 D/F          19.4      %              26.1      %                  5.8       %             36.2     %             30.7  %                               25.7  %
CAY P&C Combined ratio ex CATs                        80.8      %              79.7      %                 85.4       %             86.2     %             80.4  %                               83.5  %
Combined ratio
Combined ratio                                                                                                                                                                                   84.1  %
Add: impact of gains and losses on
crop derivatives                                                                                                                                                                                 (0.1) %
P&C Combined ratio                                                                                                                                                                               84.0  %

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.

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Three Months Ended
June 30, 2021                                      North America            North America
(in millions of U.S. dollars                      Commercial P&C           
 Personal P&C                North America       Overseas General
except for ratios)                                     Insurance                Insurance       Agricultural Insurance              Insurance         Global Reinsurance           Corporate         Total P&C
Numerator

Losses and loss expenses                  A $       2,426              $       676              $          331               $    1,186             $           110            $       89          $  4,818
Catastrophe losses and related
adjustments
Catastrophe losses, net of related
adjustments                                          (165)                     (61)                         (4)                     (40)                        (10)                    -              (280)
Reinstatement premiums collected
(expensed) on catastrophe losses                        -                        7                           -                        -                           1                     -                 8
Catastrophe losses, gross of
related adjustments                                  (165)                     (68)                         (4)                     (40)                        (11)                    -              (288)
PPD and related adjustments
PPD, net of related adjustments -
favorable (unfavorable)                               156                       44                           -                      156                           -                   (88)              268
Net premiums earned adjustments on
PPD - unfavorable (favorable)                          11                        -                           -                        -                           -                     -                11

PPD reinstatement premiums -
unfavorable (favorable)                                 6                        1                           -                        7                          (2)                    -                12
PPD, gross of related adjustments
- favorable (unfavorable)                             173                       45                           -                      163                          (2)                  (88)              291
CAY loss and loss expense ex CATs         B $       2,434              $       653              $          327               $    1,309             $            97            $        1          $  4,821
Policy acquisition costs and
administrative expenses
Policy acquisition costs and
administrative expenses                   C $         734              $       312              $           30               $      978             $            57            $       88          $  2,199
Expense adjustments - favorable
(unfavorable)                                           -                        -                           -                        -                           -                     -                 -
Policy acquisition costs and
administrative expenses, adjusted         D $         734              $       312              $           30               $      978             $            57            $       88          $  2,199
Denominator
Net premiums earned                       E $       3,803              $     1,224              $          410               $    2,579             $           192                                $  8,208
Reinstatement premiums (collected)
expensed on catastrophe losses                          -                       (7)                          -                        -                          (1)                                     (8)
Net premiums earned adjustments on
PPD - unfavorable (favorable)                          11                        -                           -                        -                           -                                      11
PPD reinstatement premiums -
unfavorable (favorable)                                 6                        1                           -                        7                          (2)                                     12
Net premiums earned excluding
adjustments                               F $       3,820              $     1,218              $          410               $    2,586             $           189                                $  8,223
P&C Combined ratio
Loss and loss expense ratio             A/E          63.8      %              55.2      %                 80.7       %             46.0     %                  56.8    %                               58.7  %
Policy acquisition cost and
administrative expense ratio            C/E          19.3      %              25.5      %                  7.4       %             37.9     %                  29.8    %                               26.8  %
P&C Combined ratio                                   83.1      %              80.7      %                 88.1       %             83.9     %                  86.6    %                               85.5  %
CAY P&C Combined ratio ex CATs
Loss and loss expense ratio,
adjusted                                B/F          63.7      %              53.6      %                 79.7       %             50.6     %                  50.9    %                               58.6  %
Policy acquisition cost and
administrative expense ratio,
adjusted                                D/F          19.2      %              25.6      %                  7.4       %             37.8     %                  30.3    %                               26.8  %
CAY P&C Combined ratio ex CATs                       82.9      %              79.2      %                 87.1       %             88.4     %                  81.2    %                               85.4  %
Combined ratio
Combined ratio                                                                                                                                                                                         85.5  %
Add: impact of gains and losses on
crop derivatives                                                                                                                                                                                          -
P&C Combined ratio                                                                                                                                                                                     85.5  %

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.






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Six Months Ended
June 30, 2022                                       North America            North America
(in millions of U.S. dollars except                Commercial P&C             Personal P&C                North America       Overseas General
for ratios)                                             Insurance                Insurance       Agricultural Insurance              Insurance         Global Reinsurance           Corporate         Total P&C
Numerator

Losses and loss expenses                   A $       4,943              $     1,486              $          386               $    2,613             $           254            $      201          $  9,883
Catastrophe losses and related
adjustments
Catastrophe losses, net of related
adjustments                                           (205)                    (195)                        (21)                    (200)                         (3)                    -              (624)
Reinstatement premiums collected
(expensed) on catastrophe losses                         -                        -                           -                        -                           -                     -                 -
Catastrophe losses, gross of
related adjustments                                   (205)                    (195)                        (21)                    (200)                         (3)                    -              (624)
PPD and related adjustments
PPD, net of related adjustments -
favorable (unfavorable)                                395                       54                          26                      233                         (22)                 (199)              487
Net premiums earned adjustments on
PPD - unfavorable (favorable)                            3                        -                         159                        -                           -                     -               162
Expense adjustments - unfavorable
(favorable)                                              5                        -                          (1)                       -                           -                     -                 4
PPD reinstatement premiums -
unfavorable (favorable)                                  -                        -                           -                        -                          (2)                    -                (2)
PPD, gross of related adjustments -
favorable (unfavorable)                                403                       54                         184                      233                         (24)                 (199)              651
CAY loss and loss expense ex CATs          B $       5,141              $     1,345              $          549               $    2,646             $           227            $        2          $  9,910
Policy acquisition costs and
administrative expenses
Policy acquisition costs and
administrative expenses                    C $       1,660              $       660              $           44               $    1,923             $           138            $      173          $  4,598
Expense adjustments - favorable
(unfavorable)                                           (5)                       -                           1                        -                           -                     -                (4)
Policy acquisition costs and
administrative expenses, adjusted          D $       1,655              $       660              $           45               $    1,923             $           138            $      173          $  4,594
Denominator
Net premiums earned                        E $       8,362              $     2,518              $          544               $    5,324             $           457                                $ 17,205

Net premiums earned adjustments on
PPD - unfavorable (favorable)                            3                        -                         159                        -                           -                                     162
PPD reinstatement premiums -
unfavorable (favorable)                                  -                        -                           -                        -                          (2)                                     (2)
Net premiums earned excluding
adjustments                                F $       8,365              $     2,518              $          703               $    5,324             $           455                                $ 17,365
P&C Combined ratio
Loss and loss expense ratio              A/E          59.1      %              59.0      %                 70.9       %             49.1     %                  55.5    %                               57.4  %
Policy acquisition cost and
administrative expense ratio             C/E          19.9      %              26.2      %                  8.1       %             36.1     %                  30.2    %                               26.8  %
P&C Combined ratio                                    79.0      %              85.2      %                 79.0       %             85.2     %                  85.7    %                               84.2  %
CAY P&C Combined ratio ex CATs
Loss and loss expense ratio,
adjusted                                 B/F          61.5      %              53.4      %                 77.9       %             49.7     %                  49.8    %                               57.1  %
Policy acquisition cost and
administrative expense ratio,
adjusted                                 D/F          19.7      %              26.3      %                  6.4       %             36.1     %                  30.3    %                               26.4  %
CAY P&C Combined ratio ex CATs                        81.2      %              79.7      %                 84.3       %             85.8     %                  80.1    %                               83.5  %
Combined ratio
Combined ratio                                                                                                                                                                                          84.3  %
Add: impact of gains and losses on
crop derivatives                                                                                                                                                                                        (0.1) %
P&C Combined ratio                                                                                                                                                                                      84.2  %

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.




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Six Months Ended
June 30, 2021                                       North America            North America
(in millions of U.S. dollars except                Commercial P&C             Personal P&C                North America       Overseas General
for ratios)                                             Insurance                Insurance       Agricultural Insurance              Insurance         Global Reinsurance           Corporate         Total P&C
Numerator

Losses and loss expenses                   A $       4,986              $     1,495              $          416               $    2,449             $           230            $       98          $  9,674
Catastrophe losses and related
adjustments
Catastrophe losses, net of related
adjustments                                           (527)                    (301)                        (12)                     (90)                        (50)                    -              (980)
Reinstatement premiums collected
(expensed) on catastrophe losses                         -                      (16)                          -                        -                           6                     -               (10)
Catastrophe losses, gross of
related adjustments                                   (527)                    (285)                        (12)                     (90)                        (56)                    -              (970)
PPD and related adjustments
PPD, net of related adjustments -
favorable (unfavorable)                                283                       84                           2                      181                           7                   (97)              460
Net premiums earned adjustments on
PPD - unfavorable (favorable)                           11                        -                          (2)                       -                           -                     -                 9
Expense adjustments - unfavorable
(favorable)                                              3                        -                           -                        -                           -                     -                 3
PPD reinstatement premiums -
unfavorable (favorable)                                  6                        1                           -                        7                           1                     -                15
PPD, gross of related adjustments -
favorable (unfavorable)                                303                       85                           -                      188                           8                   (97)              487
CAY loss and loss expense ex CATs          B $       4,762              $     1,295              $          404               $    2,547             $           182            $        1          $  9,191
Policy acquisition costs and
administrative expenses
Policy acquisition costs and
administrative expenses                    C $       1,502              $       619              $           45               $    1,912             $           110            $      159          $  4,347
Expense adjustments - favorable
(unfavorable)                                           (3)                       -                           -                        -                           -                     -                (3)
Policy acquisition costs and
administrative expenses, adjusted          D $       1,499              $       619              $           45               $    1,912             $           110            $      159          $  4,344
Denominator
Net premiums earned                        E $       7,477              $     2,408              $          520               $    5,057             $           372                                $ 15,834
Reinstatement premiums (collected)
expensed on catastrophe losses                           -                       16                           -                        -                          (6)                                     10
Net premiums earned adjustments on
PPD - unfavorable (favorable)                           11                        -                          (2)                       -                           -                                       9
PPD reinstatement premiums -
unfavorable (favorable)                                  6                        1                           -                        7                           1                                      15
Net premiums earned excluding
adjustments                                F $       7,494              $     2,425              $          518               $    5,064             $           367                                $ 15,868
P&C Combined ratio
Loss and loss expense ratio              A/E          66.7      %              62.1      %                 80.0       %             48.4     %                  61.7    %                               61.1  %
Policy acquisition cost and
administrative expense ratio             C/E          20.1      %              25.7      %                  8.7       %             37.8     %                  29.6    %                               27.5  %
P&C Combined ratio                                    86.8      %              87.8      %                 88.7       %             86.2     %                  91.3    %                               88.6  %
CAY P&C Combined ratio ex CATs
Loss and loss expense ratio,
adjusted                                 B/F          63.6      %              53.4      %                 77.9       %             50.3     %                  49.6    %                               57.9  %
Policy acquisition cost and
administrative expense ratio,
adjusted                                 D/F          20.0      %              25.5      %                  8.7       %             37.8     %                  30.0    %                               27.4  %
CAY P&C Combined ratio ex CATs                        83.6      %              78.9      %                 86.6       %             88.1     %                  79.6    %                               85.3  %
Combined ratio
Combined ratio                                                                                                                                                                                          88.6  %
Add: impact of gains and losses on
crop derivatives                                                                                                                                                                                           -
P&C Combined ratio                                                                                                                                                                                      88.6  %

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.





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          Amortization of Purchased Intangibles and Other Amortization

Amortization expense related to purchased intangibles was $71 million and $142 million for the three and six months ended June 30, 2022, respectively, and principally relates to the Chubb Corp acquisition.


The following table presents, as of June 30, 2022, the estimated pre-tax
amortization expense (benefit) of purchased intangibles, at current foreign
currency exchange rates, for the third and fourth quarters of 2022 and for the
next five years:

                                                Associated with the Chubb Corp Acquisition
                                                           Fair value
For the Years Ending                                    adjustment on                                                                    Total
December 31                  Agency distribution        Unpaid losses                                                          Amortization of
(in millions of U.S.           relationships and             and loss                              Other intangible                  purchased
dollars)                          renewal rights             expenses            Total (1)               assets (2)                intangibles

Third quarter of 2022     $                49          $        (3)         $        46          $            24          $              70
Fourth quarter of 2022                     49                   (3)                  46                       25                         71
2023                                      177                   (6)                 171                       94                        265
2024                                      159                   (5)                 154                       88                        242
2025                                      143                   (5)                 138                       86                        224
2026                                      129                   (6)                 123                       84                        207
2027                                      116                  (10)                 106                       82                        188
Total                     $               822          $       (38)         $       784          $           483          $           1,267


(1)Recorded in Corporate.

(2)Recorded in applicable segment(s) that acquired the intangible assets.


Reduction of deferred tax liability associated with Other intangible assets
At June 30, 2022, the deferred tax liability associated with Other intangible
assets (excluding the fair value adjustment on Unpaid losses and loss expense)
was $1,171 million.

The following table presents as of June 30, 2022, the expected reduction to the
deferred tax liability associated with the amortization of Other intangible
assets, at current foreign currency exchange rates, for the third and fourth
quarters of 2022 and for the next five years:

                                                                              Reduction to
                                                                              deferred tax
                                                                                 liability
For the Years Ending December 31                                           associated with
(in millions of U.S. dollars)                                            intangible assets

Third quarter of 2022                                                                16
Fourth quarter of 2022                                                               16
2023                                                                                 60
2024                                                                                 55
2025                                                                                 51
2026                                                                                 48
2027                                                                                 45
Total                                                                  $            291




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Amortization of the fair value adjustment on acquired invested assets and
assumed long-term debt
The following table presents at June 30, 2022, the expected amortization expense
of the fair value adjustment on acquired invested assets related to the Chubb
Corp acquisition, at current foreign currency exchange rates, and the expected
amortization benefit from the fair value adjustment on assumed long-term debt
for the third and fourth quarters of 2022 and for the next five years:
                                                               Amortization 

(expense) benefit of the fair

                                                                                      value adjustment on
For the Years Ending December 31                              Acquired invested         Assumed long-term
(in millions of U.S. dollars)                                        assets (1)                  debt (2)

Third quarter of 2022                                                    (15)                        5
Fourth quarter of 2022                                                   (14)                        6
2023                                                                     (50)                       21
2024                                                                     (15)                       21
2025                                                                       -                        21
2026                                                                       -                        21
2027                                                                       -                        21
Total                                                      $             (94)         $            116

(1)Recorded as a reduction to Net investment income in the Consolidated statements of operations.

(2)Recorded as a reduction to Interest expense in the Consolidated statements of operations.


The estimate of amortization expense of the fair value adjustment on acquired
invested assets could vary based on current market conditions, bond calls,
overall duration of the acquired investment portfolio, and foreign exchange.

                             Net Investment Income


                                                              Three Months Ended               Six Months Ended
                                                                         June 30                        June 30
(in millions of U.S. dollars)                             2022              2021         2022              2021
Fixed maturities (1)                             $      853          $    836    $   1,652          $  1,676
Short-term investments                                   15                 8           24                17
Other interest income                                     4                 3            7                 5
Equity securities                                        34                41           72                77
Other investments                                        27                43           46                66
Gross investment income (1)                             933               931        1,801             1,841
Investment expenses                                     (45)              (47)         (91)              (94)
Net investment income (1)                        $      888          $    884    $   1,710          $  1,747
 (1) Includes amortization expense related to
fair value adjustment of acquired invested
assets

related to the Chubb Corp acquisition $ (14) $ (22) $ (30) $ (48)




Net investment income is influenced by a number of factors including the amounts
and timing of inward and outward cash flows, the level of interest rates, and
changes in overall asset allocation. Net investment income increased 0.4 percent
for the three months ended June 30, 2022, primarily due to higher reinvestment
rates on fixed maturities, offset by reduced call activity in fixed income
securities, and lower income from equity securities and private equities, which
are included in Other investments. Net investment income decreased 2.1 percent
for the six months ended June 30, 2022, due to reduced call activity in fixed
income securities and lower income from equity securities, and private equities,
which are included in Other investments.


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For private equities where we own less than three percent, investment income is
included within Net investment income in the table above. For private equities
where we own more than three percent, investment income is included within Other
income (expense) in the Consolidated statements of operations. Excluded from Net
investment income is the mark-to-market movement for private equities, which is
recorded within either Other income (expense) or Net realized gains (losses)
based on our percentage of ownership. The total mark-to-market movement for
private equities excluded from Net investment income was as follows:

                                                                Three Months Ended                  Six Months Ended
                                                                           June 30                           June 30
(in millions of U.S. dollars)                               2022              2021            2022              2021

Total mark-to-market gain (loss) on private
equity, pre-tax                                   $      (130)         $    736    $     180             $  1,174


                               Interest Expense


Interest expense was $266 million for the six months ended June 30, 2022,
including a benefit of $10 million related to the amortization of the fair value
of debt assumed in the Chubb Corp acquisition. Pre-tax interest expense for our
existing debt obligations and fees based on expected usage of certain
facilities, including letters of credit, collateral fees, and repurchase
agreements, is expected to be $297 million for the rest of 2022, or, $573
million for the full year 2022 based on current foreign exchange rates. This is
an increase of about $30 million from our previous estimate of $543 million for
full year 2022 as disclosed in our 2021 Form 10-K. This increase is primarily
driven by interest from an additional $2.0 billion in repurchase agreements
which Chubb entered into during the second quarter of 2022 to finance a portion
of the acquisition of Cigna's accident and health (A&H) and life business in six
Asia-Pacific markets. The $2.0 billion repurchase agreements are due to expire
by the end of 2022. In addition, we expect a benefit of $11 million related to
the fair value of debt amortization for the rest of 2022, or, $21 million for
the full year 2022. For more information on our debt obligations, refer to Note
9 to the Consolidated Financial Statements, under Item 8 in our 2021 Form 10-K.

                                  Investments


Our investment portfolio is invested primarily in publicly traded, investment
grade, fixed income securities with an average credit quality of A/A as rated by
the independent investment rating services Standard and Poor's (S&P)/Moody's
Investors Service (Moody's) at June 30, 2022. The portfolio is externally
managed by independent, professional investment managers and is broadly
diversified across geographies, sectors, and issuers. Other investments
principally comprise direct investments, investment funds, and limited
partnerships. We hold no collateralized debt obligations in our investment
portfolio, and we provide no credit default protection. We have long-standing
global credit limits for our entire portfolio across the organization. Exposures
are aggregated, monitored, and actively managed by our Global Credit Committee,
comprising senior executives, including our Chief Financial Officer, our Chief
Risk Officer, our Chief Investment Officer, and our Treasurer. We also have
well-established, strict contractual investment rules requiring managers to
maintain highly diversified exposures to individual issuers and closely monitor
investment manager compliance with portfolio guidelines.

The average duration of our fixed income securities, including the effect of
options and swaps, was 4.3 years and 4.1 years at June 30, 2022 and December 31,
2021, respectively. We estimate that a 100 basis point (bps) increase in
interest rates would reduce the valuation of our fixed income portfolio by
approximately $4.1 billion at June 30, 2022. The following table shows the fair
value and cost/amortized cost, net of valuation allowance, of our invested
assets:


                                                   June 30, 2022             December 31, 2021
                                                           Cost/                         Cost/
                                             Fair      Amortized           Fair      Amortized
(in millions of U.S. dollars)               Value      Cost, Net          Value      Cost, Net
Fixed maturities available for sale   $  82,069      $  88,438      $  93,108      $  90,479
Fixed maturities held to maturity         9,333          9,532         10,647         10,118
Short-term investments                    3,431          3,433          3,146          3,147
Fixed income securities                  94,833        101,403        106,901        103,744
Equity securities                         2,649          2,649          4,782          4,782
Other investments                        12,168         12,168         11,169         11,169
Total investments                     $ 109,650      $ 116,220      $ 122,852      $ 119,695




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The fair value of our total investments decreased $13.2 billion during the six
months ended June 30, 2022 due to unrealized losses on fixed maturities, sales
of fixed income securities, and share repurchases, partially offset by strong
operating cash flows.

The following tables present the fair value of our fixed income securities at
June 30, 2022 and December 31, 2021. The first table lists investments according
to type and second according to S&P credit rating:

                                                                                        June 30, 2022                           December 31, 2021
                                                                         Fair                                        Fair
(in millions of U.S. dollars, except for percentages)                   Value              % of Total               Value              % of Total
U.S. Treasury / Agency                                       $       3,450                       4  %       $    3,458                       3  %
Corporate and asset-backed securities                               36,793                      38  %           41,264                      39  %
Mortgage-backed securities                                          18,933                      20  %           22,292                      21  %
Municipal                                                            8,338                       9  %            9,650                       9  %
Non-U.S.                                                            23,888                      25  %           27,091                      25  %
Short-term investments                                               3,431                       4  %            3,146                       3  %
Total                                                        $      94,833                     100  %       $  106,901                     100  %
AAA                                                          $      13,946                      15  %       $   15,364                      14  %
AA                                                                  30,771                      32  %           35,179                      33  %
A                                                                   17,326                      18  %           20,171                      19  %
BBB                                                                 15,726                      17  %           17,362                      16  %
BB                                                                   8,514                       9  %            9,084                       8  %
B                                                                    8,167                       9  %            9,202                       9  %
Other                                                                  383                       -  %              539                       1  %
Total                                                        $      94,833                     100  %       $  106,901                     100  %



Corporate and asset-backed securities
The following table presents our 10 largest global exposures to corporate bonds
by fair value at June 30, 2022:

(in millions of U.S. dollars)      Fair Value
Bank of America Corp             $      596
JP Morgan Chase & Co                    568
Wells Fargo & Co                        487
Morgan Stanley                          449
Comcast Corp                            414
Verizon Communications Inc              412
AT&T Inc                                387
Citigroup Inc                           385
Goldman Sachs Group Inc                 366
HSBC Holdings Plc                       324




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Mortgage-backed securities

The following table shows the fair value and amortized cost, net of valuation allowance, of our mortgage-backed securities:


                                                                                                                             Fair           Amortized
                                                                                              S&P Credit Rating             Value           Cost, Net
June 30, 2022                                                                                            BB and
(in millions of U.S. dollars)               AAA                AA              A            BBB           below             Total               Total
Agency residential mortgage-backed
securities (RMBS)                    $     8          $ 15,399          $   -          $   -          $    -          $ 15,407          $   16,571
Non-agency RMBS                          366                45             68             38               5               522                 577
Commercial mortgage-backed
securities                             2,567               268            154             12               3             3,004               3,155

Total mortgage-backed securities $ 2,941 $ 15,712 $ 222 $ 50 $ 8 $ 18,933 $ 20,303

Municipal

As part of our overall investment strategy, we may invest in states,
municipalities, and other political subdivisions fixed maturity securities
(Municipal). We apply the same investment selection process described previously
to our Municipal investments. The portfolio is highly diversified primarily in
state general obligation bonds and essential service revenue bonds including
education and utilities (water, power, and sewers).

Non-U.S.

Our exposure to the Euro results primarily from Chubb European Group SE which is
headquartered in France and offers a broad range of coverages throughout the
European Union, Central, and Eastern Europe. Chubb primarily invests in Euro
denominated investments to support its local currency insurance obligations and
required capital levels. Chubb's local currency investment portfolios have
strict contractual investment guidelines requiring managers to maintain a high
quality and diversified portfolio to both sector and individual issuers.
Investment portfolios are monitored daily to ensure investment manager
compliance with portfolio guidelines.

Our non-U.S. investment grade fixed income portfolios are currency-matched with
the insurance liabilities of our non-U.S. operations. The average credit quality
of our non-U.S. fixed income securities is A and 45 percent of our holdings are
rated AAA or guaranteed by governments or quasi-government agencies. Within the
context of these investment portfolios, our government and corporate bond
holdings are highly diversified across industries and geographies. Issuer limits
are based on credit rating (AA-two percent, A-one percent, BBB-0.5 percent of
the total portfolio) and are monitored daily via an internal compliance system.
We manage our indirect exposure using the same credit rating based investment
approach. Accordingly, we do not believe our indirect exposure is material.

The following table summarizes the fair value and amortized cost, net of valuation allowance, of our non-U.S. fixed income portfolio by country/sovereign for non-U.S. government securities at June 30, 2022:

(in millions of U.S. dollars)             Fair Value       Amortized Cost, Net
Republic of Korea                      $       949      $                982
Canada                                         890                       956
Federative Republic of Brazil                  605                       629
Province of Ontario                            575                       616
United Mexican States                          508                       548
United Kingdom                                 440                       461
Kingdom of Thailand                            435                       461
Socialist Republic of Vietnam                  426                       339
Commonwealth of Australia                      411                       470
Province of Quebec                             400                       422
Other Non-U.S. Government Securities         4,562                     4,983
Total                                  $    10,201      $             10,867



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The following table summarizes the fair value and amortized cost, net of valuation allowance, of our non-U.S. fixed income portfolio by country/sovereign for non-U.S. corporate securities at June 30, 2022:

      (in millions of U.S. dollars)             Fair Value       Amortized
Cost, Net
      United Kingdom                         $     2,106      $              2,266
      Canada                                       1,687                     1,822
      United States (1)                            1,088                     1,229
      France                                       1,038                     1,115
      Australia                                      932                     1,014
      Japan                                          722                       766
      Switzerland                                    518                       565
      Germany                                        502                       552
      Netherlands                                    495                       530
      China                                          386                       413
      Other Non-U.S. Corporate Securities          4,213                   
 4,583
      Total                                  $    13,687      $             14,855

(1) The countries that are listed in the non-U.S. corporate fixed income portfolio above represent the ultimate parent company's country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.


Below-investment grade corporate fixed income portfolio
Below-investment grade securities have different characteristics than investment
grade corporate debt securities. Risk of loss from default by the borrower is
greater with below-investment grade securities. Below-investment grade
securities are generally unsecured and are often subordinated to other creditors
of the issuer. Also, issuers of below-investment grade securities usually have
higher levels of debt and are more sensitive to adverse economic conditions,
such as recession or increasing interest rates, than investment grade issuers.
At June 30, 2022, our corporate fixed income investment portfolio included
below-investment grade and non-rated securities which, in total, comprised
approximately 16 percent of our fixed income portfolio. Our below-investment
grade and non-rated portfolio includes 1,739 issuers, with the greatest single
exposure being $143 million.

We manage high-yield bonds as a distinct and separate asset class from
investment grade bonds. The allocation to high-yield bonds is explicitly set by
internal management and is targeted to securities in the upper tier of credit
quality (BB/B). Our minimum rating for initial purchase is BB/B. Fourteen
external investment managers are responsible for high-yield security selection
and portfolio construction. Our high-yield managers have a conservative approach
to credit selection and very low historical default experience. Holdings are
highly diversified across industries and generally subject to a 1.5 percent
issuer limit as a percentage of high-yield allocation. We monitor position
limits daily through an internal compliance system. Derivative and structured
securities (e.g., credit default swaps and collateralized debt obligations) are
not permitted in the high-yield portfolio.

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                         Critical Accounting Estimates


As of June 30, 2022, there were no material changes to our critical accounting
estimates. For a full discussion of our critical accounting estimates, refer to
Item 7 in our 2021 Form 10-K.

Unpaid losses and loss expenses
As an insurance and reinsurance company, we are required by applicable laws and
regulations and GAAP to establish loss and loss expense reserves for the
estimated unpaid portion of the ultimate liability for losses and loss expenses
under the terms of our policies and agreements with our insured and reinsured
customers. With the exception of certain structured settlements, for which the
timing and amount of future claim payments are reliably determinable, and
certain reserves for unsettled claims, our loss reserves are not discounted for
the time value of money.

The following table presents a roll-forward of our unpaid losses and loss expenses:


                                                                  Gross               Reinsurance               Net
(in millions of U.S. dollars)                                    Losses           Recoverable (1)            Losses
Balance at December 31, 2021                                $ 72,943          $         16,184          $ 56,759
Losses and loss expenses incurred                             13,003                     2,808            10,195
Losses and loss expenses paid                                (11,027)                   (2,180)           (8,847)
Other (including foreign exchange translation)                  (827)                     (239)             (588)
Balance at June 30, 2022                                    $ 74,092          $         16,573          $ 57,519

(1)Net of valuation allowance for uncollectible reinsurance.


The estimate of the liabilities includes provisions for claims that have been
reported but are unpaid at the balance sheet date (case reserves) and for
obligations on claims that have been incurred but not reported (IBNR) at the
balance sheet date. IBNR may also include provisions to account for the
possibility that reported claims may settle for amounts that differ from the
established case reserves. Loss reserves also include an estimate of expenses
associated with processing and settling unpaid claims (loss expenses).

Refer to Note 6 to the Consolidated Financial Statements for a discussion on the changes in the loss reserves.


Asbestos and Environmental (A&E)
There was no significant A&E reserve activity during the three and six months
ended June 30, 2022. A&E reserves are included in Corporate. Refer to our 2021
Form 10-K for further information on our A&E exposures.

Fair value measurements
Accounting guidance defines fair value as the price to sell an asset or transfer
a liability (an exit price) in an orderly transaction between market
participants and establishes a three-level valuation hierarchy based on the
reliability of the inputs. The fair value hierarchy gives the highest priority
to quoted prices in active markets (Level 1 inputs) and the lowest priority to
unobservable data (Level 3 inputs). Level 2 includes inputs, other than quoted
prices within Level 1, that are observable for assets or liabilities either
directly or indirectly. Refer to Note 4 to the Consolidated Financial Statements
for information on our fair value measurements.


                                                                            

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                            Catastrophe Management


We actively monitor and manage our catastrophe risk accumulation around the
world from natural perils, including setting risk limits based on probable
maximum loss (PML), and purchasing catastrophe reinsurance, to ensure sufficient
liquidity and capital to meet the expectations of regulators, rating agencies
and policyholders, and to provide shareholders with an appropriate risk-adjusted
return. Chubb uses internal and external data together with sophisticated
analytical, catastrophe loss and risk modeling techniques to ensure an
appropriate understanding of risk, including diversification and correlation
effects, across different product lines and territories. The table below
presents our modeled pre-tax estimates of natural catastrophe PML, net of
reinsurance, at June 30, 2022, and does not represent our expected catastrophe
losses for any one year.

                                                                            

Modeled Net Probable Maximum Loss (PML) Pre-tax

                                             Worldwide (1)                                    U.S. Hurricane (2)                            California Earthquake (3)
                                            Annual Aggregate                                   Annual Aggregate                                 Single Occurrence
(in millions of U.S.                                       % of Total                                       % of Total                                         % of Total
dollars, except for                                      Shareholders'                                    Shareholders'                                      Shareholders'
percentages)                       Chubb                     Equity                   Chubb                   Equity                    Chubb                    Equity
1-in-10                      $        2,177                          4.2  %       $    1,132                          2.2  %       $        146                          0.3  %
1-in-100                     $        4,558                          8.8  %       $    2,916                          5.6  %       $      1,314                          2.5  %
1-in-250                     $        7,475                         14.5  %       $    5,443                         10.5  %       $      1,500                          2.9  %


(1)  Worldwide aggregate is comprised of losses arising from tropical cyclones,
convective storms, earthquakes, U.S. wildfires and inland floods, and excludes
"non-modeled" perils such as man-made and other catastrophe risks including
pandemic.

(2) U.S. hurricane losses include losses from wind and storm-surge and exclude rainfall.

(3) California earthquakes include the fire-following sub-peril.


The PML for worldwide and key U.S. peril regions are based on our in-force
portfolio at April 1, 2022, and reflect the April 1, 2022, reinsurance program
(see Global Property Catastrophe Reinsurance Program section) as well as inuring
reinsurance protection coverages. These estimates assume that reinsurance
recoverable is fully collectible.

According to the model, for the 1-in-100 return period scenario, there is a one
percent chance that our pre-tax annual aggregate losses incurred in any year
from U.S. hurricane events could be in excess of $2,916 million (or 5.6 percent
of our total shareholders' equity at June 30, 2022). Effective December 31,
2021, our worldwide PMLs include losses from U.S. wildfire and U.S. inland
flood.

The above estimates of Chubb's loss profile are inherently uncertain for many
reasons, including the following:
•While the use of third-party modeling packages to simulate potential
catastrophe losses is prevalent within the insurance industry, the models are
reliant upon significant meteorology, seismology, and engineering assumptions to
estimate catastrophe losses. In particular, modeled catastrophe events are not
always a representation of actual events and ensuing additional loss potential;
•There is no universal standard in the preparation of insured data for use in
the models, the running of the modeling software and interpretation of loss
output. These loss estimates do not represent our potential maximum exposures
and it is highly likely that our actual incurred losses would vary materially
from the modeled estimates;
•The potential effects of climate change add to modeling complexity; and
•Changing climate conditions could impact our exposure to natural catastrophe
risks. Published studies by leading government, academic and professional
organizations combined with extensive research by Chubb climate scientists
reveal the potential for increases in the frequency and severity of key natural
perils such as tropical cyclones, inland flood, and wildfire. To understand the
potential impacts on the Chubb portfolio, we have conducted stress tests on our
peak exposure zone, namely in the U.S., using parameters outlined by the
Intergovernmental Panel on Climate Change (IPCC) Climate Change 2021 report.
These parameters consider the impacts of climate change and the resulting
climate peril impacts over a timescale relevant to our business. The tests are
conducted by adjusting our baseline view of risk for the perils of hurricane,
inland flood, and wildfire in the U.S. to reflect increases in frequency and
severity across the modeled domains for each of these perils. Based on these
tests against the Chubb portfolio we do not expect material impacts to our
baseline PMLs from climate change through December 31, 2022. These tests reflect
current exposures only and exclude potentially mitigating factors such as
changes to building codes, public or private risk mitigation, regulation and
public policy.

Refer to Item 7 in our 2021 Form 10-K for more information on man-made and other catastrophes.

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                Global Property Catastrophe Reinsurance Program

Chubb's core property catastrophe reinsurance program provides protection against natural catastrophes impacting its primary property operations (i.e., excluding our Global Reinsurance and Life Insurance segments).


We regularly review our reinsurance protection and corresponding property
catastrophe exposures. This may or may not lead to the purchase of additional
reinsurance prior to a program's renewal date. In addition, prior to each
renewal date, we consider how much, if any, coverage we intend to buy and we may
make material changes to the current structure in light of various factors,
including modeled PML assessment at various return periods, reinsurance pricing,
our risk tolerance and exposures, and various other structuring considerations.

Chubb renewed its Global Property Catastrophe Reinsurance Program for our North
American and International operations effective April 1, 2022, through March 31,
2023, with no material changes in coverage from the expiring program. The
program consists of three layers in excess of losses retained by Chubb on a per
occurrence basis. In addition, Chubb renewed its terrorism coverage (excluding
nuclear, biological, chemical and radiation coverage, with an inclusion of
coverage for biological and chemical coverage for personal lines) for the United
States from April 1, 2022, through March 31, 2023 with the same limits and
retention and percentage placed except that the majority of terrorism coverage
is on an aggregate basis above our retentions without a reinstatement.

Loss Location                                 Layer of Loss              Comments                                  Notes
United States                            $0 million -                    Losses retained by Chubb                   (a)
(excluding Alaska and Hawaii)            $1.0 billion
United States                            $1.0 billion -                  All natural perils and terrorism           (b)
(excluding Alaska and Hawaii)            $1.15 billion
United States                            $1.15 billion -                 All natural perils and terrorism           (c)
(excluding Alaska and Hawaii)            $2.25 billion
United States                            $2.25 billion -                 All natural perils and terrorism           (d)
(excluding Alaska and Hawaii)            $3.5 billion
International                            $0 million -                    Losses retained by Chubb                   (a)
(including Alaska and Hawaii)            $175 million
International                            $175 million -                  All natural perils and terrorism           (c)
(including Alaska and Hawaii)            $1.275 billion
Alaska, Hawaii, and Canada               $1.275 billion -                All natural perils and terrorism           (d)
                                         $2.525 billion


(a)  Ultimate retention will depend upon the nature of the loss and the
interplay between the underlying per risk programs and certain other catastrophe
programs purchased by individual business units. These other catastrophe
programs have the potential to reduce our effective retention below the stated
levels.

(b) These coverages are partially placed with Reinsurers.

(c) These coverages are both part of the same Second layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(d) These coverages are both part of the same Third layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

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                                   Liquidity


We anticipate that positive cash flows from operations (underwriting activities
and investment income) should be sufficient to cover cash outflows under most
loss scenarios for the near term. In addition to cash from operations, routine
sales of investments, and financing arrangements, we have agreements with a
third-party bank provider which implemented two international multi-currency
notional cash pooling programs to enhance cash management efficiency during
periods of short-term timing mismatches between expected inflows and outflows of
cash by currency. The programs allow us to optimize investment income by
avoiding portfolio disruption. Should the need arise, we generally have access
to capital markets and to credit facilities with letter of credit capacity of
$3.7 billion with a sub-limit of $2.0 billion for revolving credit. At June 30,
2022, our usage under these facilities was $1.3 billion in letters of credit.
Our access to credit under these facilities is dependent on the ability of the
banks that are a party to the facilities to meet their funding commitments. The
facilities require that we maintain certain financial covenants, all of which we
met at June 30, 2022. Should the existing credit providers on these facilities
experience financial difficulty, we may be required to replace credit sources,
possibly in a difficult market. If we cannot obtain adequate capital or sources
of credit on favorable terms, on a timely basis, or at all, our business,
operating results, and financial condition could be adversely affected. To date,
we have not experienced difficulty accessing our credit facilities.

The payment of dividends or other statutorily permissible distributions from our
operating companies are subject to the laws and regulations applicable to each
jurisdiction, as well as the need to maintain capital levels adequate to support
the insurance and reinsurance operations, including financial strength ratings
issued by independent rating agencies. During the six months ended June 30,
2022, we were able to meet all our obligations, including the payments of
dividends on our Common Shares, with our net cash flows.

We assess which subsidiaries to draw dividends from based on a number of
factors. Considerations such as regulatory and legal restrictions as well as the
subsidiary's financial condition are paramount to the dividend decision. Chubb
Limited received dividends of $5.8 billion and $1.8 billion from its Bermuda
subsidiaries during the six months ended June 30, 2022 and 2021, respectively.
Chubb Limited received cash dividends of nil and $21 million and non-cash
dividends of nil and $536 million from a Swiss subsidiary during the six months
ended June 30, 2022 and 2021, respectively.

The U.S. insurance subsidiaries of Chubb INA Holdings Inc. (Chubb INA) may pay
dividends, without prior regulatory approval, subject to restrictions set out in
state law of the subsidiary's domicile (or, if applicable, commercial domicile).
Chubb INA's international subsidiaries are also subject to insurance laws and
regulations particular to the countries in which the subsidiaries operate. These
laws and regulations sometimes include restrictions that limit the amount of
dividends payable without prior approval of regulatory insurance authorities.
Chubb Limited received no dividends from Chubb INA during the six months ended
June 30, 2022 and 2021. Debt issued by Chubb INA is serviced by statutorily
permissible distributions by Chubb INA's insurance subsidiaries to Chubb INA as
well as other group resources. Chubb INA received $1.8 billion and $470 million
from its subsidiaries during the six months ended June 30, 2022 and 2021,
respectively.

Cash Flows
Our sources of liquidity include cash from operations, routine sales of
investments, and financing arrangements. The following is a discussion of our
cash flows for the six months ended June 30, 2022 and 2021.

Operating cash flows were $5.2 billion in both the six months ended June 30, 2022, and 2021.


Cash from (used for) investing was $1.1 billion in the six months ended June 30,
2022, compared to $(2.0) billion in the prior period, an increase of $3.1
billion. Cash from investing in the current period included higher net sales of
fixed maturities and equity securities of $3.7 billion, partially offset by
higher private equity contributions, net of distributions received, of $606
million. In addition, cash used related to acquisitions of Huatai Group
ownership interest was $113 million in 2022 compared to $65 million in 2021.

Cash used for financing was $0.7 billion in the six months ended June 30, 2022,
compared to $3.0 billion in the prior year period. This decrease of $2.3 billion
was the result of an additional $2.0 billion in repurchase agreements which
Chubb entered into during the second quarter of 2022 to finance a portion of the
acquisition of Cigna's A&H and life business in six Asia-Pacific markets. Chubb
uses repurchase agreements as a low-cost funding alternative. At June 30, 2022,
there were $3.4 billion in repurchase agreements outstanding with various
maturities over the next six months.


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Both internal and external forces influence our financial condition, results of
operations, and cash flows. Claim settlements, premium levels, and investment
returns may be impacted by changing rates of inflation and other economic
conditions. In many cases, significant periods of time, ranging up to several
years or more, may lapse between the occurrence of an insured loss, the
reporting of the loss to us, and the settlement of the liability for that loss.


                               Capital Resources

Capital resources consist of funds deployed or available to be deployed to support our business operations.


                                                                                    June 30          December 31
(in millions of U.S. dollars, except for ratios)                                       2022                 2021
Short-term debt                                                                $   1,474          $       999
Long-term debt                                                                    14,311               15,169
Total financial debt                                                              15,785               16,168
Trust preferred securities                                                           308                  308
Total shareholders' equity                                                        51,667               59,714
Total capitalization                                                           $  67,760          $    76,190
Ratio of financial debt to total capitalization                                     23.3  %              21.2  %
Ratio of financial debt plus trust preferred securities to total
capitalization                                                                      23.8  %              21.6  %


The ratios of financial debt to total capitalization in the table above are higher at June 30, 2022 compared to December 31, 2021 from the decline in shareholders' equity, principally reflecting net unrealized depreciation on investments in the current period compared to net unrealized appreciation in 2021.


Repurchase agreements are excluded from the table above and are disclosed
separately from short-term debt in the Consolidated balance sheets. The
repurchase agreements are collateralized borrowings where we maintain the right
and ability to redeem the collateral on short notice, unlike short-term debt
which comprises the current maturities of our long-term debt instruments.

For the six months ended June 30, 2022, we repurchased $2.1 billion of Common
Shares in a series of open market transactions under the Board of Directors
(Board) share repurchase authorization. At June 30, 2022, there were 41,081,627
Common Shares in treasury with a weighted-average cost of $165.36 per share, and
$2.5 billion in share repurchase authorization remained through June 30, 2023.
For the period July 1, 2022 through July 28, 2022, we repurchased 1,513,728
Common Shares for a total of $281 million in a series of open market
transactions. At July 28, 2022, $2.2 billion in share repurchase authorization
remained.

We generally maintain the ability to issue certain classes of debt and equity
securities via a Securities and Exchange Commission (SEC) shelf registration
statement which is renewed every three years. This allows us capital market
access for refinancing as well as for unforeseen or opportunistic capital needs.

Dividends

We have paid dividends each quarter since we became a public company in 1993.
Under Swiss law, dividends must be stated in Swiss francs though dividend
payments are made by Chubb in U.S. dollars. Refer to Note 8 to the Consolidated
Financial Statements for a discussion of our dividend methodology.

At our May 2022 annual general meeting, our shareholders approved an annual
dividend for the following year of up to $3.32 per share, or CHF 3.22 per share,
calculated using the USD/CHF exchange rate as published in the Wall Street
Journal on May 19, 2022, expected to be paid in four quarterly installments of
$0.83 per share after the general meeting by way of a distribution from capital
contribution reserves, transferred to free reserves for payment. The Board
determines the record and payment dates at which the annual dividend may be paid
until the date of the 2023 annual general meeting, and is authorized to abstain
from distributing a dividend at its discretion. The annual dividend approved in
May 2022 represented a $0.12 per share increase ($0.03 per quarter) over the
prior year dividend.

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The following table represents dividends paid per Common Share to shareholders of record on each of the following dates:

Shareholders of record as of:       Dividends paid as of:
December 17, 2021                   January 7, 2022            $0.80 (CHF 0.74)
March 18, 2022                      April 8, 2022              $0.80 (CHF 0.74)
June 17, 2022                       July 8, 2022               $0.83 (CHF 0.80)


Information provided in connection with outstanding debt of subsidiaries

Chubb INA Holdings Inc. (Subsidiary Issuer) is an indirect 100 percent-owned and consolidated subsidiary of Chubb Limited (Parent Guarantor). The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer.


The following table presents the condensed balance sheets of Chubb Limited and
Chubb INA Holdings Inc., after elimination of investment in any non-guarantor
subsidiary:

                                                                     Chubb Limited                     Chubb INA Holdings Inc.
                                                                (Parent Guarantor)                         (Subsidiary Issuer)
                                                     June 30           December 31               June 30           December 31
(in millions of U.S. dollars)                           2022                  2021                  2022                  2021
Assets
Investments                                $         -             $          -          $        149          $        149
Cash                                             3,917                        1                     3                   580

Due from parent guarantor/subsidiary
issuer                                               4                        2                 1,070                   348
Due from subsidiaries that are not issuers
or
  guarantors                                     1,814                    1,805                   571                   526
Other assets                                         5                       16                 2,195                 1,667
Total assets                               $     5,740             $      1,824          $      3,988          $      3,270
Liabilities
Due to parent guarantor/subsidiary issuer  $     1,070             $        348          $          4          $          2
Due to subsidiaries that are not issuers
or
  guarantors                                       239                      241                 1,823                 1,647
Affiliated notional cash pooling programs          243                        8                   425                     -
Short-term debt                                      -                        -                 1,474                   999
Long-term debt                                       -                        -                14,311                15,169
Trust preferred securities                           -                        -                   308                   308
Other liabilities                                  354                      363                 1,803                 1,803
Total liabilities                                1,906                      960                20,148                19,928
Total shareholders' equity                       3,834                      864               (16,160)              (16,658)
Total liabilities and shareholders' equity $     5,740             $      1,824          $      3,988          $      3,270






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The following table presents the condensed statements of operations and comprehensive income of Chubb Limited and Chubb INA Holdings Inc., excluding equity in earnings from non-guarantor subsidiaries:


Six Months Ended June 30, 2022              Chubb Limited          Chubb INA Holdings Inc.
(in millions of U.S. dollars)          (Parent Guarantor)              (Subsidiary Issuer)
Net investment income (loss)     $                 4            $           

(2)


Net realized gains (losses)                       14                        

200

Administrative expenses                           54                        

(52)

Interest (income) expense                        (29)                       

273

Other (income) expense                           (24)                       

20

Cigna integration expenses                         -                                   1
Income tax expense (benefit)                       6                        

(22)

Net income (loss)                $                11            $           

(22)

Comprehensive income (loss)      $                11            $           

(49)

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