3 Insurance information

Premiums earned and fees assessed against policyholders

For the years ended 31 December

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2015
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance¹

Corporate Solutions

Life Capital¹

Total

¹	As of 1 January 2016, the primary life and health insurance business (individual and group) is reported in the Life Capital segment instead of the Life & Health Reinsurance segment. Comparative information for 2015 has been adjusted accordingly.

Premiums earned, thereof:

Direct

2 732

1 197

3 968

Reinsurance

15 301

11 353

872

143

27 669

Intra-group transactions (assumed and ceded)

595

–57

–595

Premiums earned before retrocession to external parties

15 358

11 987

3 547

745

31 637

Retrocession to external parties

–268

–1 420

–168

–30

–1 886

Net premiums earned

15 090

10 567

3 379

715

29 751

Fee income from policyholders, thereof:

Direct

323

Reinsurance

141

Gross fee income before retrocession to external parties

414

464

Retrocession to external parties

–1

Net fee income

414

463

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2016 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Premiums earned, thereof:
Direct		45	2 879	1 293	4 217
Reinsurance	17 166	12 204	968	173	30 511
Intra-group transactions (assumed and ceded)	113	594	–113	–594	0
Premiums earned before retrocession to external parties	17 279	12 843	3 734	872	34 728
Retrocession to external parties	–271	–1 357	–231	–178	–2 037
Net premiums earned	17 008	11 486	3 503	694	32 691

Fee income from policyholders, thereof:
Direct				410	410
Reinsurance		40		89	129
Gross fee income before retrocession to external parties		40		499	539
Retrocession to external parties		1			1
Net fee income	0	41	0	499	540

Claims and claim adjustment expenses

For the year ended 31 December

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2015 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance¹	Corporate Solutions	Life Capital¹	Group items	Total
Claims paid, thereof:
Gross claims paid to external parties	–8 651	–8 931	–2 726	–2 310	–38	–22 656
Intra-group transactions (assumed and ceded)	–739	–456	739	456		0
Claims before receivables from retrocession to external parties	–9 390	–9 387	–1 987	–1 854	–38	–22 656
Retrocession to external parties	540	1 168	278	54		2 040
Net claims paid	–8 850	–8 219	–1 709	–1 800	–38	–20 616

Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof:
Gross – with external parties	567	218	754	726	37	2 302
Intra-group transactions (assumed and ceded)	941	–37	–941	37		0
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties	1 508	181	–187	763	37	2 302
Retrocession to external parties	–550	26	–59	–31		–614
Net unpaid claims and claim adjustment expenses; life and health benefits	958	207	–246	732	37	1 688

Claims and claim adjustment expenses; life and health benefits	–7 892	–8 012	–1 955	–1 068	–1	–18 928

Acquisition costs

For the year ended 31 December

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2015
USD millions

Property & Casualty Reinsurance

Life & Health Reinsurance¹

Corporate Solutions

Life Capital¹

Total

¹	As of 1 January 2016, the primary life and health insurance business (individual and group) is reported in the Life Capital segment instead of the Life & Health Reinsurance segment. Comparative information for 2015 has been adjusted accordingly.

Acquisition costs, thereof:

Gross acquisition costs with external parties

–3 898

–2 137

–492

–233

–6 760

Intra-group transactions (assumed and ceded)

–6

–72

Acquisition costs before impact of retrocession to external parties

–3 904

–2 209

–486

–161

–6 760

Retrocession to external parties

244

341

Net acquisition costs

–3 836

–1 965

–459

–159

–6 419

Claims and claim adjustment expenses

For the year ended 31 December

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2016 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Claims paid, thereof:
Gross claims paid to external parties	–8 546	–10 032	–2 563	–3 384	–24 525
Intra-group transactions (assumed and ceded)	–502	–477	502	477	0
Claims before receivables from retrocession to external parties	–9 048	–10 509	–2 061	–2 907	–24 525
Retrocession to external parties	342	1 205	223	227	1 997
Net claims paid	–8 706	–9 304	–1 838	–2 680	–22 528

Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof:
Gross – with external parties	–2 014	392	257	833	–532
Intra-group transactions (assumed and ceded)	702	–34	–702	34	0
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties	–1 312	358	–445	867	–532
Retrocession to external parties	–283	–17	20	–83	–363
Net unpaid claims and claim adjustment expenses; life and health benefits	–1 595	341	–425	784	–895

Claims and claim adjustment expenses; life and health benefits	–10 301	–8 963	–2 263	–1 896	–23 423

Acquisition costs

For the year ended 31 December

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2016 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Acquisition costs, thereof:
Gross acquisition costs with external parties	–4 458	–2 094	–589	–137	–7 278
Intra-group transactions (assumed and ceded)	–16	–59	16	59	0
Acquisition costs before impact of retrocession to external parties	–4 474	–2 153	–573	–78	–7 278
Retrocession to external parties	69	210	56	15	350
Net acquisition costs	–4 405	–1 943	–517	–63	–6 928

Reinsurance recoverable on unpaid claims and policy benefits

As of 31 December 2015 and 2016, the Group had a reinsurance recoverable of USD 6 578 million and USD 7 461 million, respectively. The concentration of credit risk is regularly monitored and evaluated. The reinsurance programme with Berkshire Hathaway and subsidiaries accounted for 52% of the Group’s reinsurance recoverable as of year-end 2015 and 40% as of year-end 2016.

Reinsurance receivables

Reinsurance receivables as of 31 December were as follows:

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USD millions	2015	2016
Premium receivables invoiced	1 441	1 717
Receivables invoiced from ceded re/insurance business	201	177
Assets arising from the application of the deposit method of accounting and meeting the definition of financing receivables	171	141
Recognised allowance	–56	–60

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 2015 and 2016 was 8% and 10%, respectively. The amount of policyholder dividend expense in 2015 and 2016 was USD 126 million and USD 279 million, respectively.