6 Deferred acquisition costs (DAC) and acquired present value of future profits (PVFP)
As of 31 December, the DAC were as follows:
2018 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
|---|---|---|---|---|---|
Opening balance as of 1 January |
2 146 |
4 234 |
454 |
37 |
6 871 |
Deferred |
4 048 |
1 235 |
634 |
978 |
6 895 |
Amortisation |
–4 012 |
–496 |
–595 |
–187 |
–5 290 |
Effect of foreign currency translation and other changes |
–26 |
–189 |
–5 |
–39 |
–259 |
Closing balance |
2 156 |
4 784 |
488 |
789 |
8 217 |
2019 |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Total |
|---|---|---|---|---|---|
Opening balance as of 1 January |
2 156 |
4 784 |
488 |
789 |
8 217 |
Deferred |
5 269 |
434 |
621 |
229 |
6 553 |
Effect of acquisitions/disposals and retrocessions |
|
–256 |
|
68 |
–188 |
Amortisation |
–4 809 |
–445 |
–626 |
–240 |
–6 120 |
Effect of foreign currency translation and other changes |
–3 |
12 |
|
24 |
33 |
Reclassified to assets held for sale |
|
|
|
–657 |
–657 |
Closing balance |
2 613 |
4 529 |
483 |
213 |
7 838 |
Retroceded DAC may arise on retrocession of reinsurance portfolios, including reinsurance undertaken as part of a securitisation. The associated potential retrocession recoveries are determined by the nature of the retrocession agreements and by the terms of the securitisation.
As of 31 December, the PVFP was as follows:
|
Life & Health Reinsurance |
|
Life Capital |
|
Total |
||
|---|---|---|---|---|---|---|---|
2018 |
|
|
Positive |
Negative |
Total |
|
|
Opening balance as of 1 January |
921 |
|
1 612 |
–544 |
1 068 |
|
1 989 |
Amortisation |
–140 |
|
–170 |
40 |
–130 |
|
–270 |
Interest accrued on unamortised PVFP |
45 |
|
107 |
–17 |
90 |
|
135 |
Effect of change in unrealised gains/losses |
|
|
18 |
|
18 |
|
18 |
Effect of foreign currency translation |
–22 |
|
–62 |
30 |
–32 |
|
–54 |
Closing balance |
804 |
|
1 505 |
–491 |
1 014 |
|
1 818 |
|
Life & Health Reinsurance |
|
Life Capital |
|
Total |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
2019 |
|
|
Positive |
Negative |
Total |
|
|
||||
|
|||||||||||
Opening balance as of 1 January |
804 |
|
1 505 |
–491 |
1 014 |
|
1 818 |
||||
Effect of acquisitions/disposals and retrocessions |
–1611 |
|
2032 |
|
203 |
|
42 |
||||
Amortisation |
–108 |
|
–220 |
46 |
–174 |
|
–282 |
||||
Interest accrued on unamortised PVFP |
32 |
|
103 |
–15 |
88 |
|
120 |
||||
Effect of change in unrealised gains/losses |
|
|
–13 |
|
–13 |
|
–13 |
||||
Effect of foreign currency translation |
10 |
|
43 |
–16 |
27 |
|
37 |
||||
Reclassified to assets held for sale |
|
|
–1 156 |
476 |
–680 |
|
–680 |
||||
Closing balance |
577 |
|
465 |
0 |
465 |
|
1 042 |
||||
Retroceded PVFP may arise on retrocession of reinsurance portfolios, including reinsurance undertaken as part of a securitisation. The associated potential retrocession recoveries are determined by the nature of the retrocession agreements and by the terms of the securitisation.
The percentage of PVFP which is expected to be amortised in each of the next five years is 16%, 14%, 13%, 12% and 12%.