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Annual Report 2018

3 Insurance information

Premiums earned and fees assessed against policyholders

For the years ended 31 December

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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

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2018
USD millions

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

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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

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2018
USD millions

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

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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

Download

2018
USD millions

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:

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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.