Chubb Limited Annual Report Report Annual Limited Chubb Delivering Exceptional Service to Our Customers At Chubb, we’re proud of the service we provide to our customers — individuals, families and businesses of all sizes. For many customers, the ultimate test of our promise to them comes after they have suffered a loss. That’s why Chubb has built a claims handling capability 2017 that is second to none in the industry. At the same time, we are doing more to predict and prevent losses from happening in the first place through our Chubb Limited Bärengasse 32 Chubb Limited risk engineering, loss prevention and residential risk CH—8001 Zurich consulting services. There is nothing that provides Switzerland Annual Report us with greater satisfaction than hearing the powerful chubb.com 2017 personal stories of our customers. In 2017, a year of hurricanes, wildfires, earthquakes and everyday disasters and mishaps, there were more than the usual number of heartfelt, and even dramatic, stories. Turn the page to find just a few from our valued customers. 002CSN8D0E Chubb Limited Annual Report Report Annual Limited Chubb Delivering Exceptional Service to Our Customers At Chubb, we’re proud of the service we provide to our customers — individuals, families and businesses of all sizes. For many customers, the ultimate test of our promise to them comes after they have suffered a loss. That’s why Chubb has built a claims handling capability 2017 that is second to none in the industry. At the same time, we are doing more to predict and prevent losses from happening in the first place through our Chubb Limited Bärengasse 32 Chubb Limited risk engineering, loss prevention and residential risk CH—8001 Zurich consulting services. There is nothing that provides Switzerland Annual Report us with greater satisfaction than hearing the powerful chubb.com 2017 personal stories of our customers. In 2017, a year of hurricanes, wildfires, earthquakes and everyday disasters and mishaps, there were more than the usual number of heartfelt, and even dramatic, stories. Turn the page to find just a few from our valued customers. 002CSN8D0E “ Chain saws, lawn mowers, leaf “ A neighbor alerted me: ‘Sonoma blowers: they all pollute the air Valley is on fire and it’s coming we breathe. That’s why we made our way.’ As a homeowner, you our products electric. We wanted want to try everything to save to expand outside of China your home, and first responders but our liability risk was huge. can’t be everywhere at once. We could have lost everything. Chubb’s Wildfire Defense Chubb wrote a policy so we could Service, which supplemented export around the world without an unbelievable effort by first threatening everything we had responders, saved our home. built. And it worked.” I will be a Chubb customer for life.” — Huang Minda General Counsel, — Dick Fredericks Chervon Glen Ellen, California Nanjing, China “ Hurricane Irma caused major “ I had just completed a home damage to our home, uprooting renovation project. Everything dozens of trees, damaging was perfect. In the bedroom, our roof and destroying the I saw a giant bubble bulging in lanai. Chubb made a disastrous the wall. I poked it and water experience easy to navigate. ran down the wall. Then water Our claims adjuster was caring, was pouring from the ceiling like provided continuous updates rainfall. Water was everywhere. and was always available. Chubb When I called Chubb they delivered prompt, expedient jumped into action. As bad as service. We will remain a loyal the damage was, the experience client forever.” was awesome. I feel grateful to be a Chubb client.” — Joseph and Karen Benaroya Naples, Florida — Carol Wetmore Chicago, Illinois “ We awoke to water leaking at “ Betty called me at 6:00 a.m. the entrance to our house. The She thought it was a fire. It whole wall was coming down. was worse. A sinkhole opened I called my agent, who said, ‘I’ll up under our museum. Eight take care of it.’ Within an hour priceless Corvettes had plunged or two, Chubb had sent a team into it. Chubb was there within here to take care of the water hours. They made sure we had damage. I was overwhelmed by the right people — structural their response. They are honest engineers, construction and have incredible integrity.” managers, sinkhole experts. Everyone we needed to get the — Ed Krampf museum back up and running.” Sacramento, California — Wendell Strode Executive Director, National Corvette Museum Bowling Green, Kentucky “ Chain saws, lawn mowers, leaf “ A neighbor alerted me: ‘Sonoma blowers: they all pollute the air Valley is on fire and it’s coming we breathe. That’s why we made our way.’ As a homeowner, you our products electric. We wanted want to try everything to save to expand outside of China your home, and first responders but our liability risk was huge. can’t be everywhere at once. We could have lost everything. Chubb’s Wildfire Defense Chubb wrote a policy so we could Service, which supplemented export around the world without an unbelievable effort by first threatening everything we had responders, saved our home. built. And it worked.” I will be a Chubb customer for life.” — Huang Minda General Counsel, — Dick Fredericks Chervon Glen Ellen, California Nanjing, China “ Hurricane Irma caused major “ I had just completed a home damage to our home, uprooting renovation project. Everything dozens of trees, damaging was perfect. In the bedroom, our roof and destroying the I saw a giant bubble bulging in lanai. Chubb made a disastrous the wall. I poked it and water experience easy to navigate. ran down the wall. Then water Our claims adjuster was caring, was pouring from the ceiling like provided continuous updates rainfall. Water was everywhere. and was always available. Chubb When I called Chubb they delivered prompt, expedient jumped into action. As bad as service. We will remain a loyal the damage was, the experience client forever.” was awesome. I feel grateful to be a Chubb client.” — Joseph and Karen Benaroya Naples, Florida — Carol Wetmore Chicago, Illinois “ We awoke to water leaking at “ Betty called me at 6:00 a.m. the entrance to our house. The She thought it was a fire. It whole wall was coming down. was worse. A sinkhole opened I called my agent, who said, ‘I’ll up under our museum. Eight take care of it.’ Within an hour priceless Corvettes had plunged or two, Chubb had sent a team into it. Chubb was there within here to take care of the water hours. They made sure we had damage. I was overwhelmed by the right people — structural their response. They are honest engineers, construction and have incredible integrity.” managers, sinkhole experts. Everyone we needed to get the — Ed Krampf museum back up and running.” Sacramento, California — Wendell Strode Executive Director, National Corvette Museum Bowling Green, Kentucky “ During harvest time, any problems that shut down the production line are catastrophic. So Chubb used infrared detectors to find electrical boxes that might fail, and provided guidance when we started exporting internationally. Now we’re working with them on cyber security. My grandfather taught me to make a wine that over–delivers. Chubb over–delivers.” — Tony Torres Director, Trinchero Family Estates St. Helena, California “ In the 20 years I have been with Chubb, there have been too many incidents to remember them all. Once, when traveling to Hong Kong, my wife got sick and saw several doctors. When we came back we filed a claim and all of the expenses were covered. Whenever I need them, Chubb will settle the claim for me quickly.” — Alfred Lun Seattle, Washington “ Several Grupo Xtra properties in Mexico City were damaged in the earthquake. While the buildings remained standing, we had to reinforce and fix several collapsed walls. Chubb’s response was excellent. Their expert team assessed and evaluated each of our buildings, and our claims payments were made in a timely matter. Chubb was positive and gave us peace of mind.” — Isaac Michan Real Estate Operations Director, Grupo Xtra Mexico City, Mexico Financial Summary 1 Chairman and CEO Letter to Shareholders 2 Review of Operations 22 Sustainability and Global Citizenship 40 Chubb Group Corporate Officers and Other Executives 42 Chubb Limited Board of Directors 44 Shareholder Information 45 Non–GAAP Financial Measures 46 Form 10–K Swiss Statutory Financial Statements Swiss Statutory Compensation Report Environmental Statement Financial Summary In millions of U.S. dollars except per share data and ratios Year Ended Year Ended Dec. 31, 2017 Dec. 31, 2016 Percentage Change Gross premiums written $36,376 $34,983 ((((4.0% Net premiums written 29,244 28,145 3.9% Net premiums earned 29,034 28,749 1.0% P&C combined ratio 94.7% 88.7% NM Current accident year combined ratio excluding catastrophe losses 87.6% 89.0% NM Core operating income 3,784 4,716 –19.7% Net income 3,861 4,135 –6.6% Diluted earnings per share — net income 8.19 8.87 –7.7% Diluted earnings per share — core operating income 8.03 10.12 –20.7% Total investments 102,444 99,094 3.4% Total assets 167,022 159,786 4.5% Shareholders’ equity 51,172 48,275 6.0% Book value per share 110.32 103.60 6.5% Tangible book value per share 65.87 60.64 8.6% Core operating return on equity 7.8% 10.5% NM This document contains non–GAAP financial measures. Refer to pages 46–47 for reconciliations to the most directly comparable GAAP measures. NM—not meaningful 1 Evan G. Greenberg Chairman and Chief Executive Officer Chubb Limited/Chubb Group 2 To My Fellow Shareholders The weather events of the third and As a reminder of who we are and fourth quarters, notably the hurricanes what we do, Chubb is the world’s that struck Texas, Florida and the largest publicly traded P&C insurer as Caribbean, the Mexican earthquakes measured by a market cap of $67 billion and the wildfires of northern and at the time of this writing, and we are southern California, were among the largest commercial insurer in the the major headlines of 2017 and United States.