Note 9 Insurance information

For the year ended 31 December

Premiums earned and fees assessed against policyholders

2011 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Admin Re^®	Group items	Total
Premiums earned, thereof:
Direct		27	1 837	1 138		3 002
Reinsurance	13 076	10 073	452	167	22	23 790
Intra-group transactions (assumed and ceded)	–116	109	116	–109		0
Premiums earned before retrocession to external parties	12 960	10 209	2 405	1 196	22	26 792
Reinsurance ceded to external parties	–2 825	–1 892	–476	–299		–5 492
Net premiums earned	10 135	8 317	1 929	897	22	21 300

Fee income from policyholders, thereof:
Direct				650		650
Reinsurance		83		155		238
Intra-group transactions (assumed and ceded)		16		–16		0
Gross fee income before retrocession to external parties		99		789		888
Fee income ceded to external parties		–12				–12
Net fee income	0	87	0	789	0	876


2012 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Admin Re^®	Group items	Total
Premiums earned, thereof:
Direct		179	2 196	1 204		3 579
Reinsurance	16 097	10 506	385	196	6	27 190
Intra-group transactions (assumed and ceded)	–278	250	278	–250		0
Premiums earned before retrocession to external parties	15 819	10 935	2 859	1 150	6	30 769
Reinsurance ceded to external parties	–3 490	–1 885	–575	–158		–6 108
Net premiums earned	12 329	9 050	2 284	992	6	24 661

Fee income from policyholders, thereof:
Direct				587		587
Reinsurance		64		134		198
Intra-group transactions (assumed and ceded)		8		–8		0
Gross fee income before retrocession to external parties		72		713		785
Fee income ceded to external parties						0
Net fee income	0	72	0	713	0	785

For the year ended 31 December

Claims and claim adjustment expenses

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2011 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Admin Re^®	Group items	Consoli- dation	Total
Claims paid, thereof:
Gross claims paid to external parties	–9 285	–8 147	–2 120	–3 094	4		–22 642
Intra-group transactions (assumed and ceded)	–1 214	–121	1 214	121			0
Claims before receivables from retrocession to external parties	–10 499	–8 268	–906	–2 973	4		–22 642
Receivables from retrocession to external parties	1 545	1 991	263	390			4 189
Net claims paid	–8 954	–6 277	–643	–2 583	4	0	–18 453

Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof:
Gross – with external parties	–486	36	652	514	–2	15	729
Intra-group transactions (assumed and ceded)	1 500	67	–1 500	–67			0
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties	1 014	103	–848	447	–2	15	729
Reinsurance ceded to external parties	559	–106	30	17			500
Net unpaid claims and claim adjustment expenses; life and health benefits	1 573	–3	–818	464	–2	15	1 229

Claims and claim adjustment expenses; life and health benefits	–7 381	–6 280	–1 461	–2 119	2	15	–17 224


2012 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Admin Re^®	Group items	Consoli- dation	Total
Claims paid, thereof:
Gross claims paid to external parties	–9 553	–8 341	–1 915	–2 868	–18		–22 695
Intra-group transactions (assumed and ceded)	–818	–130	818	130			0
Claims before receivables from retrocession to external parties	–10 371	–8 471	–1 097	–2 738	–18		–22 695
Receivables from retrocession to external parties	1 620	2 209	379	293			4 501
Net claims paid	–8 751	–6 262	–718	–2 445	–18	0	–18 194

Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof:
Gross – with external parties	910	–42	400	297	4		1 569
Intra-group transactions (assumed and ceded)	1 219	–85	–1 225	91			0
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties	2 129	–127	–825	388	4		1 569
Reinsurance ceded to external parties	316	–398	95	–29			–16
Net unpaid claims and claim adjustment expenses; life and health benefits	2 445	–525	–730	359	4	0	1 553

Claims and claim adjustment expenses; life and health benefits	–6 306	–6 787	–1 448	–2 086	–14	0	–16 641

Acquisition costs

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2011 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Admin Re^®	Group items	Consoli- dation	Total
Acquisition costs, thereof:
Gross acquisition costs with external parties	–2 745	–2 024	–298	–298	–8	–7	–5 380
Intra-group transactions (assumed and ceded)	7	–27	–7	27			0
Acquisition costs before impact of retrocession to external parties	–2 738	–2 051	–305	–271	–8	–7	–5 380
Retrocession to external parties	890	306	125	38			1 359
Net acquisition costs	–1 848	–1 745	–180	–233	–8	–7	–4 021


2012 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Admin Re^®	Group items	Consoli- dation	Total
Acquisition costs, thereof:
Gross acquisition costs with external parties	–3 522	–2 057	–362	–177	–3		–6 121
Intra-group transactions (assumed and ceded)	55	–14	–55	14			0
Acquisition costs before impact of retrocession to external parties	–3 467	–2 071	–417	–163	–3		–6 121
Retrocession to external parties	1 151	284	117	21			1 573
Net acquisition costs	–2 316	–1 787	–300	–142	–3	0	–4 548

Reinsurance receivables

Reinsurance receivables as of 31 December were as follows:

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USD millions

2011

2012

During 2012 the Group revised its classification of reinsurance receivables and, as a result, the notional amounts of some receivables that were previously classified as premium receivables invoiced are now classified as receivables from ceded re/insurance business. The 2011 figures have been revised accordingly.

Premium receivables invoiced

1 681¹

1 254

Receivables from ceded re/insurance business

747¹

447

Assets arising from the application of the deposit method of accounting and meeting the definition of financing receivables

707

1 322

Recognised allowance

–132

–109

Policyholder dividends

Policyholder dividends are recognised as an element of policyholder benefits. The relative percentage of participating insurance of the life and health policy benefits in 2011 and 2012 was 7% and 8%, respectively. The amount of policyholder dividend expense in 2011 and 2012 was USD 134 million and USD 124 million, respectively.