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8 Insurance information

For the year ended 31 December

Premiums earned and fees assessed against policyholders

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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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance

Corporate Solutions

Admin Re®

Group items

Total

Premiums earned, thereof:

 

 

 

 

 

 

Direct

 

624

2 564

946

 

4 134

Reinsurance

16 594

10 481

473

191

1

27 740

Intra-group transactions (assumed and ceded)

–228

254

228

–254

 

0

Premiums earned before retrocession to external parties

16 366

11 359

3 265

883

1

31 874

Reinsurance ceded to external parties

–1 824

–1 392

–343

–39

 

–3 598

Net premiums earned

14 542

9 967

2 922

844

1

28 276

 

 

 

 

 

 

 

Fee income from policyholders, thereof:

 

 

 

 

 

 

Direct

 

 

 

401

 

401

Reinsurance

 

56

 

85

 

141

Intra-group transactions (assumed and ceded)

 

 

 

 

 

0

Gross fee income before retrocession to external parties

 

56

 

486

 

542

Fee income ceded to external parties

 

 

 

 

 

0

Net fee income

0

56

0

486

0

542

For the year ended 31 December

Claims and claim adjustment expenses

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2012
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance

Corporate Solutions

Admin Re®

Group items

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

–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

1 553

 

 

 

 

 

 

 

Claims and claim adjustment expenses; life and health benefits

–6 306

–6 787

–1 448

–2 086

–14

–16 641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance

Corporate Solutions

Admin Re®

Group items

Total

Claims paid, thereof:

 

 

 

 

 

 

Gross claims paid to external parties

–10 421

–8 564

–3 086

–2 269

–2

–24 342

Intra-group transactions (assumed and ceded)

–1 417

–334

1 422

331

–2

0

Claims before receivables from retrocession to external parties

–11 838

–8 898

–1 664

–1 938

–4

–24 342

Receivables from retrocession to external parties

1 713

1 230

425

65

 

3 433

Net claims paid

–10 125

–7 668

–1 239

–1 873

–4

–20 909

 

 

 

 

 

 

 

Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof:

 

 

 

 

 

 

Gross – with external parties

1 581

–482

1 189

511

6

2 805

Intra-group transactions (assumed and ceded)

1 695

121

–1 698

–118

 

0

Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties

3 276

–361

–509

393

6

2 805

Reinsurance ceded to external parties

–1 035

–46

–25

–26

 

–1 132

Net unpaid claims and claim adjustment expenses; life and health benefits

2 241

–407

–534

367

6

1 673

 

 

 

 

 

 

 

Claims and claim adjustment expenses; life and health benefits

–7 884

–8 075

–1 773

–1 506

2

–19 236

Acquisition costs

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2012
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance

Corporate Solutions

Admin Re®

Group items

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

–4 548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance

Corporate Solutions

Admin Re®

Group items

Total

Acquisition costs, thereof:

 

 

 

 

 

 

Gross acquisition costs with external parties

–3 429

–2 005

–432

–34

 

–5 900

Intra-group transactions (assumed and ceded)

49

–2

–49

2

 

0

Acquisition costs before impact of retrocession to external parties

–3 380

–2 007

–481

–32

 

–5 900

Retrocession to external parties

619

309

75

2

 

1 005

Net acquisition costs

–2 761

–1 698

–406

–30

0

–4 895

Reinsurance recoverable on unpaid claims and policy benefits

For the year ended 2013 the Group recorded a reinsurance recoverable of USD 8.3 billion. The concentration of credit risk is regularly monitored and evaluated. The reinsurance programme with Berkshire Hathaway and subsidiaries accounts for 62% of the Group’s reinsurance recoverable.

Reinsurance receivables

Reinsurance receivables as of 31 December were as follows:

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USD millions

2012

2013

Premium receivables invoiced

1 254

1 482

Receivables invoiced from ceded re/insurance business

447

446

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

1 322

1 273

Recognised allowance

–109

–101

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 2012 and 2013 was 8% and 7%, respectively. The amount of policyholder dividend expense in 2012 and 2013 was USD 124 million and USD 139 million, respectively.