CHUBB CORP | 2013 | FY | 3


(11)  Comprehensive Income

Comprehensive income is defined as all changes in shareholders’ equity, except those arising from transactions with shareholders. Comprehensive income includes net income and other comprehensive income or loss, which for the Corporation consists of changes in unrealized appreciation or depreciation of investments carried at fair value, changes in unrealized other-than-temporary impairment losses of fixed maturities, changes in postretirement benefit costs not yet recognized in net income and changes in foreign currency translation gains or losses.

The components of other comprehensive income or loss were as follows:

 

    Years Ended December 31  
    2013     2012     2011  
    Before
Tax
    Income
Tax
    Net of
Tax
    Before
Tax
    Income
Tax
    Net of
Tax
    Before
Tax
    Income
Tax
    Net of
Tax
 
          (in millions)        

Net unrealized holding gains (losses) arising
during the year

  $ (1,000   $ (350   $ (650   $ 556      $ 195      $ 361      $ 1,029      $ 359      $ 670   

Unrealized other-than-temporary
impairment losses arising during the year

                         (2     (1     (1     (1            (1

Reclassification adjustment for net realized
gains included in net income

    212        74        138        127        44        83        81        28        53   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net unrealized gains (losses) recognized in other comprehensive income or loss

    (1,212     (424     (788     427        150        277        947        331        616   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Postretirement benefit gain (loss) not yet
recognized in net income arising during the year

    622        218        404        (128     (45     (83     (400     (140     (260

Reclassification adjustment for the
amortization of net actuarial loss and prior service cost included in net income (a)

    (93     (33     (60     (83     (30     (53     (71     (26     (45
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in postretirement benefit
costs not yet recognized in net income

    715        251        464        (45     (15     (30     (329     (114     (215
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign currency translation gains (losses)

    (111     (39     (72     (16     (5     (11     6        2        4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

  $ (608   $ (212   $ (396   $ 366      $ 130      $ 236      $ 624      $ 219      $ 405   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Postretirement benefit costs recognized in net income during the period are included among several of the loss and expense components presented in the consolidated statements of income.

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