3 Insurance information

Premiums earned and fees assessed against policyholders

For the year ended 31 December

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.