3 Insurance information
Premiums earned and fees assessed against policyholders
For the years ended 31 December
| Download |
2017 |
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 |
| Download |
2018 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
Premiums earned, thereof: |
|
|
|
|
|
Direct |
|
67 |
3 429 |
2 053 |
5 549 |
Reinsurance |
16 314 |
13 358 |
916 |
110 |
30 698 |
Intra-group transactions (assumed and ceded) |
161 |
577 |
–161 |
–577 |
0 |
Premiums earned before retrocession to external parties |
16 475 |
14 002 |
4 184 |
1 586 |
36 247 |
Retrocession to external parties |
–380 |
–1 319 |
–259 |
–414 |
–2 372 |
Net premiums earned |
16 095 |
12 683 |
3 925 |
1 172 |
33 875 |
|
|
|
|
|
|
Fee income from policyholders, thereof: |
|
|
|
|
|
Direct |
|
|
|
337 |
337 |
Reinsurance |
|
153 |
|
97 |
250 |
Gross fee income before retrocession to external parties |
|
153 |
|
434 |
587 |
Retrocession to external parties |
|
–1 |
|
|
–1 |
Net fee income |
0 |
152 |
0 |
434 |
586 |
Claims and claim adjustment expenses
For the year ended 31 December
| Download |
2017 |
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 |
| Download |
2018 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
Claims paid, thereof: |
|
|
|
|
|
Gross claims paid to external parties |
–10 802 |
–10 346 |
–3 150 |
–3 454 |
–27 752 |
Intra-group transactions (assumed and ceded) |
–209 |
–408 |
209 |
408 |
0 |
Claims before receivables from retrocession to external parties |
–11 011 |
–10 754 |
–2 941 |
–3 046 |
–27 752 |
Retrocession to external parties |
748 |
1 214 |
444 |
501 |
2 907 |
Net claims paid |
–10 263 |
–9 540 |
–2 497 |
–2 545 |
–24 845 |
|
|
|
|
|
|
Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof: |
|
|
|
|
|
Gross – with external parties |
–1 251 |
–629 |
–261 |
1 031 |
–1 110 |
Intra-group transactions (assumed and ceded) |
294 |
–78 |
–294 |
78 |
0 |
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties |
–957 |
–707 |
–555 |
1 109 |
–1 110 |
Retrocession to external parties |
–394 |
–33 |
–189 |
–53 |
–669 |
Net unpaid claims and claim adjustment expenses; life and health benefits |
–1 351 |
–740 |
–744 |
1 056 |
–1 779 |
|
|
|
|
|
|
Claims and claim adjustment expenses; life and health benefits |
–11 614 |
–10 280 |
–3 241 |
–1 489 |
–26 624 |
Acquisition costs
For the year ended 31 December
| Download |
2017 |
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 |
| Download |
2018 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
Acquisition costs, thereof: |
|
|
|
|
|
Gross acquisition costs with external parties |
–4 073 |
–2 211 |
–660 |
–364 |
–7 308 |
Intra-group transactions (assumed and ceded) |
–4 |
–58 |
4 |
58 |
0 |
Acquisition costs before impact of retrocession to external parties |
–4 077 |
–2 269 |
–656 |
–306 |
–7 308 |
Retrocession to external parties |
65 |
224 |
49 |
51 |
389 |
Net acquisition costs |
–4 012 |
–2 045 |
–607 |
–255 |
–6 919 |
Reinsurance recoverable on unpaid claims and policy benefits
As of 31 December 2017 and 2018, the Group had a reinsurance recoverable of USD 7 942 million and USD 7 058 million, respectively. The concentration of credit risk is regularly monitored and evaluated. The reinsurance programme with Berkshire Hathaway and subsidiaries accounted for 34% and 29% of the Group’s reinsurance recoverable as of year-end 2017 and 2018, respectively.
Reinsurance receivables
Reinsurance receivables as of 31 December were as follows:
| Download |
USD millions |
2017 |
2018 |
Premium receivables invoiced |
3 135 |
3 041 |
Receivables invoiced from ceded re/insurance business |
427 |
445 |
Assets arising from the application of the deposit method of accounting and meeting the definition of financing receivables |
147 |
124 |
Recognised allowance |
–71 |
–58 |
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 2017 and 2018 was 10% and 9%, respectively. The amount of policyholder dividend expense in 2017 and 2018 was USD 194 million and USD 245 million, respectively. The Group revised the presentation of policyholder dividend expense. Comparative information for 2017 has been adjusted accordingly.