8 Insurance information

For the year ended 31 December

Premiums earned and fees assessed against policyholders

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.