3 Insurance information

Premiums earned and fees assessed against policyholders

For the year ended 31 December

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2014
USD millions

Property & Casualty Rein­surance

Life & Health Rein­surance

Corporate Solutions

Admin Re®

Group items

Total

Premiums earned, thereof:

 

 

 

 

 

 

Direct

 

758

2 745

651

 

4 154

Reinsurance

16 233

11 431

705

165

 

28 534

Intra-group transactions (assumed and ceded)

–157

272

157

–272

 

0

Premiums earned before retrocession to external parties

16 076

12 461

3 607

544

 

32 688

Retrocession to external parties

–478

–1 249

–163

–42

 

–1 932

Net premiums earned

15 598

11 212

3 444

502

0

30 756

 

 

 

 

 

 

 

Fee income from policyholders, thereof:

 

 

 

 

 

 

Direct

 

 

 

363

 

363

Reinsurance

 

54

 

90

 

144

Intra-group transactions (assumed and ceded)

 

 

 

 

 

0

Gross fee income before retrocession to external parties

 

54

 

453

 

507

Retrocession to external parties

 

–1

 

 

 

–1

Net fee income

0

53

0

453

0

506

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2015
USD millions

Property & Casualty Rein­surance

Life & Health Rein­surance

Corporate Solutions

Admin Re®

Group items

Total

Premiums earned, thereof:

 

 

 

 

 

 

Direct

 

736

2 732

500

 

3 968

Reinsurance

15 301

11 354

872

142

 

27 669

Intra-group transactions (assumed and ceded)

57

244

–57

–244

 

0

Premiums earned before retrocession to external parties

15 358

12 334

3 547

398

 

31 637

Retrocession to external parties

–268

–1 420

–168

–30

 

–1 886

Net premiums earned

15 090

10 914

3 379

368

0

29 751

 

 

 

 

 

 

 

Fee income from policyholders, thereof:

 

 

 

 

 

 

Direct

 

 

 

323

 

323

Reinsurance

 

50

 

91

 

141

Intra-group transactions (assumed and ceded)

 

 

 

 

 

0

Gross fee income before retrocession to external parties

 

50

 

414

 

464

Retrocession to external parties

 

–1

 

 

 

–1

Net fee income

0

49

0

414

0

463

Claims and claim adjustment expenses

For the year ended 31 December

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2014
USD millions

Property & Casualty Rein­surance

Life & Health Rein­surance

Corporate Solutions

Admin Re®

Group items

Total

Claims paid, thereof:

 

 

 

 

 

 

Gross claims paid to external parties

–10 176

–9 120

–2 068

–2 153

–9

–23 526

Intra-group transactions (assumed and ceded)

–427

–238

428

238

–1

0

Claims before receivables from retrocession to external parties

–10 603

–9 358

–1 640

–1 915

–10

–23 526

Retrocession to external parties

1 022

1 162

345

68

 

2 597

Net claims paid

–9 581

–8 196

–1 295

–1 847

–10

–20 929

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Gross – with external parties

1 662

–967

–136

459

–22

996

Intra-group transactions (assumed and ceded)

395

8

–395

–8

 

0

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

2 057

–959

–531

451

–22

996

Retrocession to external parties

–969

–39

–228

–19

 

–1 255

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

1 088

–998

–759

432

–22

–259

 

 

 

 

 

 

 

Claims and claim adjustment expenses; life and health benefits

–8 493

–9 194

–2 054

–1 415

–32

–21 188

Acquisition costs

For the year ended 31 December

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2014
USD millions

Property & Casualty Rein­surance

Life & Health Rein­surance

Corporate Solutions

Admin Re®

Group items

Total

Acquisition costs, thereof:

 

 

 

 

 

 

Gross acquisition costs with external parties

–3 514

–2 681

–462

–184

 

–6 841

Intra-group transactions (assumed and ceded)

25

–1

–25

1

 

0

Acquisition costs before impact of retrocession to external parties

–3 489

–2 682

–487

–183

 

–6 841

Retrocession to external parties

107

193

24

2

 

326

Net acquisition costs

–3 382

–2 489

–463

–181

0

–6 515

Claims and claim adjustment expenses

For the year ended 31 December

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2015
USD millions

Property & Casualty Rein­surance

Life & Health Rein­surance

Corporate Solutions

Admin Re®

Group items

Total

Claims paid, thereof:

 

 

 

 

 

 

Gross claims paid to external parties

–8 651

–9 415

–2 726

–1 826

–38

–22 656

Intra-group transactions (assumed and ceded)

–739

–214

739

214

 

0

Claims before receivables from retrocession to external parties

–9 390

–9 629

–1 987

–1 612

–38

–22 656

Retrocession to external parties

540

1 168

278

54

 

2 040

Net claims paid

–8 850

–8 461

–1 709

–1 558

–38

–20 616

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Gross – with external parties

567

148

754

796

37

2 302

Intra-group transactions (assumed and ceded)

941

–3

–941

3

 

0

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

1 508

145

–187

799

37

2 302

Retrocession to external parties

–550

26

–59

–31

 

–614

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

958

171

–246

768

37

1 688

 

 

 

 

 

 

 

Claims and claim adjustment expenses; life and health benefits

–7 892

–8 290

–1 955

–790

–1

–18 928

Acquisition costs

For the year ended 31 December

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2015
USD millions

Property & Casualty Rein­surance

Life & Health Rein­surance

Corporate Solutions

Admin Re®

Group items

Total

Acquisition costs, thereof:

 

 

 

 

 

 

Gross acquisition costs with external parties

–3 898

–2 229

–492

–141

 

–6 760

Intra-group transactions (assumed and ceded)

–6

–1

6

1

 

0

Acquisition costs before impact of retrocession to external parties

–3 904

–2 230

–486

–140

 

–6 760

Retrocession to external parties

68

244

27

2

 

341

Net acquisition costs

–3 836

–1 986

–459

–138

0

–6 419

Reinsurance recoverable on unpaid claims and policy benefits

As of 31 December 2014 and 2015, the Group had a reinsurance recoverable of USD 6 950 million and USD 6 578 million, respectively. The concentration of credit risk is regularly monitored and evaluated. The reinsurance programme with Berkshire Hathaway and subsidiaries accounted for 60% of the Group’s reinsurance recoverable as of year-end 2014 and 52% as of year-end 2015.

Reinsurance receivables

Reinsurance receivables as of 31 December were as follows:

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USD millions

2014

2015

Premium receivables invoiced

1 355

1 441

Receivables invoiced from ceded re/insurance business

341

201

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

779

171

Recognised allowance

–86

–56

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 2014 and 2015 was 8% and 8%, respectively. The amount of policyholder dividend expense in 2014 and 2015 was USD 113 million and USD 126 million, respectively.