3 Insurance information

Premiums earned and fees assessed against policyholders

For the years ended 31 December

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

Download

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

Download

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

Download

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

Download

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:

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.