Equity method investment, additional 7.1 percentage agreed on

[Table of Contents](#i529cc89e10964e18ae4139b5b2341a84_7)  
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)Chubb Limited and Subsidiaries  
The following table summarizes the results of operations of the acquired Cigna business in Asia since the acquisition date that have been included within our Consolidated statements of operations for both the three and nine months ended September 30, 2022.  


|  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |
| (in millions of U.S. dollars) |  |  |  |
| Total revenues | $ | 681  |  |  |  |
| Net income | $ | 21  |  |  |  |

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


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |
| (in millions of U.S. dollars) | Amount |  | Weighted-average useful life |
| Definite life |  |  |  |
|   Agency distribution relationships and renewal rights | $ | 190  |  |  | 20 years |
|   Unearned premium reserves (UPR) intangible asset | 9  |  |  | 1 year |
|  |  |  |  |
| Indefinite life |  |  |  |
|   Trademarks | 70  |  |  | Indefinite |
|  |  |  |  |
| Total identified intangible assets | $ | 269  |  |  |  |

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


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |
| Pro forma: | September 30 |  | September 30 |
| (in millions of U.S. dollars) | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Net premiums earned | $ | 11,535  |  |  | $ | 10,788  |  |  | $ | 31,362  |  |  | $ | 29,406  |  |
| Total revenues | $ | 12,132  |  |  | $ | 11,632  |  |  | $ | 33,253  |  |  | $ | 32,879  |  |
| Net income | $ | 825  |  |  | $ | 1,894  |  |  | $ | 4,203  |  |  | $ | 6,649  |  |
|  |  |  |  |  |  |  |  |

  
Huatai Group  
Chubb maintains a direct investment in Huatai Insurance Group Co., Ltd. (Huatai Group). Huatai Group is the parent company of, and owns 100 percent of, Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), approximately 80 percent of Huatai Life Insurance Co., Ltd. (Huatai Life), and approximately 82 percent of Huatai Asset Management Co., Ltd. (collectively, Huatai). Huatai Group's insurance operations have more than 700 branches and approximately 19 million customers in China.  
As of September 30, 2022, Chubb's aggregate ownership interest in Huatai Group was approximately 47.3 percent. Chubb applies the equity method of accounting to its investment in Huatai Group by recording its share of net income or loss in Other (income) expense in the Consolidated statements of operations.   
During 2021, Chubb entered into agreements with several counterparties to purchase incremental ownership interests in Huatai Group totaling approximately 31.8 percent for approximately $2.2 billion. In connection with these agreements, Chubb paid approximately $1.1 billion in deposits. In January 2022, we paid $113 million relating to these agreements. Chubb entered into an agreement to acquire an approximate 7.1 percent ownership interest in Huatai Group for approximately $0.5 billion, which was paid as a deposit in 2020. The purchase of the additional ownership interest is contingent upon important conditions.  
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