Intangible assets
Included in Goodwill and other intangible assets in the consolidated balance sheets at December 31, 2013 and 2012, are goodwill of $4.6 billion and $4.3 billion, respectively, and other intangible assets of $801 million and $656 million, respectively.
The following table presents a roll-forward of Goodwill by segment:
|
| | | | | | | | | | | | | | | | | | | | | | | |
(in millions of U.S. dollars) | Insurance – North American P&C |
| | Insurance – North American Agriculture |
| | Insurance – Overseas General |
| | Global Reinsurance |
| | Life |
| | ACE Consolidated |
|
Balance at December 31, 2011 | $ | 1,216 |
| | $ | 134 |
| | $ | 1,603 |
| | $ | 365 |
| | $ | 830 |
| | $ | 4,148 |
|
Purchase price allocation adjustment | — |
| | — |
| | — |
| | — |
| | 4 |
| | 4 |
|
Acquisition of JaPro | — |
| | — |
| | 123 |
| | — |
| | — |
| | 123 |
|
Foreign exchange revaluation and other | 3 |
| | — |
| | 38 |
| | — |
| | 3 |
| | 44 |
|
Balance at December 31, 2012 | $ | 1,219 |
| | $ | 134 |
|
| $ | 1,764 |
| | $ | 365 |
| | $ | 837 |
| | $ | 4,319 |
|
Acquisition of Fianzas Monterrey | — |
| | — |
| | 135 |
| | — |
| | — |
| | 135 |
|
Acquisition of ABA Seguros | — |
| | — |
| | 283 |
| | — |
| | — |
| | 283 |
|
Foreign exchange revaluation and other | (4 | ) | | — |
| | (128 | ) | | — |
| | (2 | ) | | (134 | ) |
Balance at December 31, 2013 | $ | 1,215 |
| | $ | 134 |
| | $ | 2,054 |
| | $ | 365 |
| | $ | 835 |
| | $ | 4,603 |
|
Included in other intangible assets at December 31, 2013 and 2012, are intangible assets subject to amortization of $695 million and $554 million, respectively, and intangible assets not subject to amortization of $106 million and $102 million, respectively. Intangible assets subject to amortization include agency relationships, software, client lists, renewal rights, and trademarks, primarily attributable to the acquisitions of Rain and Hail, Fianzas Monterrey, and ABA Seguros. The majority of the balance of intangible assets not subject to amortization relates to Lloyd's of London (Lloyd's) Syndicate 2488 (Syndicate 2488) capacity. Amortization expense related to other intangible assets amounted to $95 million, $51 million, and $29 million for the years ended December 31, 2013, 2012, and 2011, respectively.
The following table presents a roll-forward of VOBA:
|
| | | | | | | | | | | |
(in millions of U.S. dollars) | 2013 |
| | 2012 |
| | 2011 |
|
Balance, beginning of year | $ | 614 |
| | $ | 676 |
| | $ | 634 |
|
Acquisition of New York Life's Korea operations and Hong Kong operations | — |
| | — |
| | 151 |
|
Amortization expense | (64 | ) | | (82 | ) | | (108 | ) |
Foreign exchange revaluation | (14 | ) | | 20 |
| | (1 | ) |
Balance, end of year | $ | 536 |
| | $ | 614 |
| | $ | 676 |
|
The following table presents estimated amortization expense related to other intangible assets and VOBA for the next five years:
|
| | | | | | | |
For the Year Ending December 31 | Other intangible assets |
| | VOBA |
|
(in millions of U.S. dollars) | |
2014 | $ | 81 |
| | $ | 55 |
|
2015 | 62 |
| | 50 |
|
2016 | 55 |
| | 45 |
|
2017 | 52 |
| | 40 |
|
2018 | 49 |
| | 35 |
|
Total | $ | 299 |
| | $ | 225 |
|
