6 Deferred acquisition costs (DAC) and acquired present value of future profits (PVFP)
As of 31 December, the DAC were as follows:
| Download |
2014 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Admin Re® |
Total |
Opening balance as of 1 January |
1 591 |
2 845 |
319 |
1 |
4 756 |
Deferred |
3 563 |
490 |
507 |
|
4 560 |
Effect of acquisitions/disposals and retrocessions |
|
–28 |
|
|
–28 |
Amortisation |
–3 332 |
–448 |
–463 |
|
–4 243 |
Effect of foreign currency translation |
–66 |
–136 |
–3 |
|
–205 |
Closing balance as of 31 December |
1 756 |
2 723 |
360 |
1 |
4 840 |
| Download |
2015 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Admin Re® |
Total |
Opening balance as of 1 January |
1 756 |
2 723 |
360 |
1 |
4 840 |
Deferred |
4 132 |
1 053 |
486 |
|
5 671 |
Effect of acquisitions/disposals and retrocessions |
7 |
2 |
|
|
9 |
Amortisation |
–3 793 |
–594 |
–459 |
|
–4 846 |
Effect of foreign currency translation |
–51 |
–152 |
|
|
–203 |
Closing balance as of 31 December |
2 051 |
3 032 |
387 |
1 |
5 471 |
Retroceded DAC may arise on retrocession of reinsurance portfolios, including reinsurance undertaken as part of a securitisation. The associated potential retrocession recoveries are determined by the nature of the retrocession agreements and by the terms of the securitisation.
As of 31 December, the PVFP was as follows:
| Download |
|
2014 |
2015 |
||||
USD millions |
Life & Health Reinsurance |
Admin Re® |
Total |
Life & Health Reinsurance |
Admin Re® |
Total |
Opening balance as of 1 January |
1 451 |
2 086 |
3 537 |
1 294 |
2 003 |
3 297 |
Effect of acquisitions/disposals and retrocessions |
|
165 |
165 |
|
2 |
2 |
Amortisation |
–156 |
–261 |
–417 |
–159 |
–191 |
–350 |
Interest accrued on unamortised PVFP |
44 |
103 |
147 |
40 |
84 |
124 |
Effect of foreign currency translation |
–45 |
–90 |
–135 |
–41 |
–77 |
–118 |
Effect of change in unrealised gains/losses |
|
|
0 |
|
9 |
9 |
Closing balance as of 31 December |
1 294 |
2 003 |
3 297 |
1 134 |
1 830 |
2 964 |
Retroceded PVFP may arise on retrocession of reinsurance portfolios, including reinsurance undertaken as part of a securitisation. The associated potential retrocession recoveries are determined by the nature of the retrocession agreements and by the terms of the securitisation.
The percentage of PVFP which is expected to be amortised in each of the next five years is 9%, 9%, 8%, 8% and 7%.