3 Insurance information

Premiums earned and fees assessed against policyholders

For the years ended 31 December

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

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2017 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Premiums earned, thereof:
Direct		55	3 229	1 465	4 749
Reinsurance	16 901	12 829	862	128	30 720
Intra-group transactions (assumed and ceded)	137	315	–137	–315	0
Premiums earned before retrocession to external parties	17 038	13 199	3 954	1 278	35 469
Retrocession to external parties	–371	–1 348	–303	–328	–2 350
Net premiums earned	16 667	11 851	3 651	950	33 119

Fee income from policyholders, thereof:
Direct				362	362
Reinsurance		130		95	225
Gross fee income before retrocession to external parties		130		457	587
Retrocession to external parties		–1			–1
Net fee income	0	129	0	457	586

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

Claims and claim adjustment expenses

For the year ended 31 December

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2017 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Claims paid, thereof:
Gross claims paid to external parties	–9 866	–9 505	–2 571	–3 170	–25 112
Intra-group transactions (assumed and ceded)	–177	–226	177	226	0
Claims before receivables from retrocession to external parties	–10 043	–9 731	–2 394	–2 944	–25 112
Retrocession to external parties	279	1 162	192	357	1 990
Net claims paid	–9 764	–8 569	–2 202	–2 587	–23 122

Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof:
Gross – with external parties	–3 791	–533	–1 016	727	–4 613
Intra-group transactions (assumed and ceded)	365	–53	–365	53	0
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties	–3 426	–586	–1 381	780	–4 613
Retrocession to external parties	18	–56	25	–65	–78
Net unpaid claims and claim adjustment expenses; life and health benefits	–3 408	–642	–1 356	715	–4 691

Claims and claim adjustment expenses; life and health benefits	–13 172	–9 211	–3 558	–1 872	–27 813

Acquisition costs

For the year ended 31 December

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2017 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Acquisition costs, thereof:
Gross acquisition costs with external parties	–4 297	–2 277	–621	–155	–7 350
Intra-group transactions (assumed and ceded)	–19	–12	19	12	0
Acquisition costs before impact of retrocession to external parties	–4 316	–2 289	–602	–143	–7 350
Retrocession to external parties	63	225	48	37	373
Net acquisition costs	–4 253	–2 064	–554	–106	–6 977

Reinsurance recoverable on unpaid claims and policy benefits

As of 31 December 2016 and 2017, the Group had a reinsurance recoverable of USD 7 461 million and USD 7 942 million, respectively. The concentration of credit risk is regularly monitored and evaluated. The reinsurance programme with Berkshire Hathaway and subsidiaries accounted for 40% and 34% of the Group’s reinsurance recoverable as of year-end 2016 and 2017, respectively.

Reinsurance receivables

Reinsurance receivables as of 31 December were as follows:

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USD millions	2016	2017
Premium receivables invoiced	1 717	3 135
Receivables invoiced from ceded re/insurance business	177	427
Assets arising from the application of the deposit method of accounting and meeting the definition of financing receivables	141	147
Recognised allowance	–60	–71

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 2016 and 2017 was 10% and 10%, respectively. The amount of policyholder dividend expense in 2016 and 2017 was USD 279 million and USD 146 million, respectively.