3 Insurance information
Premiums earned and fees assessed against policyholders
For the years ended 31 December
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 |
2019 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
|---|---|---|---|---|---|
Premiums earned, thereof: |
|
|
|
|
|
Direct |
|
14 |
3 837 |
2 211 |
6 062 |
Reinsurance |
19 577 |
13 836 |
910 |
95 |
34 418 |
Intra-group transactions (assumed and ceded) |
265 |
205 |
–265 |
–205 |
0 |
Premiums earned before retrocession to external parties |
19 842 |
14 055 |
4 482 |
2 101 |
40 480 |
Retrocession to external parties |
–567 |
–1 220 |
–316 |
–403 |
–2 506 |
Net premiums earned |
19 275 |
12 835 |
4 166 |
1 698 |
37 974 |
|
|
|
|
|
|
Fee income from policyholders, thereof: |
|
|
|
|
|
Direct |
|
|
|
360 |
360 |
Reinsurance |
|
170 |
|
91 |
261 |
Gross fee income before retrocession to external parties |
|
170 |
|
451 |
621 |
Retrocession to external parties |
|
–1 |
|
|
–1 |
Net fee income |
0 |
169 |
0 |
451 |
620 |
Claims and claim adjustment expenses
For the year ended 31 December
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 |
2019 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
|---|---|---|---|---|---|
Claims paid, thereof: |
|
|
|
|
|
Gross claims paid to external parties |
–12 453 |
–10 077 |
–3 836 |
–3 481 |
–29 847 |
Intra-group transactions (assumed and ceded) |
–585 |
–165 |
585 |
165 |
0 |
Claims before receivables from retrocession to external parties |
–13 038 |
–10 242 |
–3 251 |
–3 316 |
–29 847 |
Retrocession to external parties |
352 |
1 049 |
264 |
472 |
2 137 |
Net claims paid |
–12 686 |
–9 193 |
–2 987 |
–2 844 |
–27 710 |
|
|
|
|
|
|
Change in unpaid claims and claim adjustment expenses; life and health benefits, thereof: |
|
|
|
|
|
Gross – with external parties |
–2 151 |
–1 394 |
–1 143 |
409 |
–4 279 |
Intra-group transactions (assumed and ceded) |
–25 |
–8 |
25 |
8 |
0 |
Unpaid claims and claim adjustment expenses; life and health benefits before impact of retrocession to external parties |
–2 176 |
–1 402 |
–1 118 |
417 |
–4 279 |
Retrocession to external parties |
79 |
8 |
205 |
–73 |
219 |
Net unpaid claims and claim adjustment expenses; life and health benefits |
–2 097 |
–1 394 |
–913 |
344 |
–4 060 |
|
|
|
|
|
|
Claims and claim adjustment expenses; life and health benefits |
–14 783 |
–10 587 |
–3 900 |
–2 500 |
–31 770 |
Acquisition costs
For the year ended 31 December
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 |
2019 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
|---|---|---|---|---|---|
Acquisition costs, thereof: |
|
|
|
|
|
Gross acquisition costs with external parties |
–4 875 |
–2 148 |
–729 |
–458 |
–8 210 |
Intra-group transactions (assumed and ceded) |
–28 |
–4 |
28 |
4 |
0 |
Acquisition costs before impact of retrocession to external parties |
–4 903 |
–2 152 |
–701 |
–454 |
–8 210 |
Retrocession to external parties |
93 |
177 |
61 |
45 |
376 |
Net acquisition costs |
–4 810 |
–1 975 |
–640 |
–409 |
–7 834 |
Reinsurance recoverable on unpaid claims and policy benefits
As of 31 December 2018 and 2019, the Group had a reinsurance recoverable of USD 7 058 million and USD 5 898 million, respectively. The concentration of credit risk is regularly monitored and evaluated. The reinsurance programme with Berkshire Hathaway and subsidiaries accounted for 29% and 33% of the Group’s reinsurance recoverable as of year-end 2018 and 2019, respectively.
Reinsurance receivables
Reinsurance receivables as of 31 December were as follows:
USD millions |
2018 |
2019 |
|---|---|---|
Premium receivables invoiced |
3 041 |
3 589 |
Receivables invoiced from ceded re/insurance business |
445 |
444 |
Assets arising from the application of the deposit method of accounting and meeting the definition of financing receivables |
124 |
249 |
Recognised allowance |
–58 |
–56 |
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 2018 and 2019 was 9% and 10%, respectively. The amount of policyholder dividend expense in 2018 and 2019 was USD 245 million and USD 165 million, respectively.