Zurich Insurance Group Annual Report 2012 Consolidated financial statements 213
Table 8.3
Development of in USD millions, as of December 31 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
insurance losses, Gross reserves for losses and
net loss adjustment expenses 51,068 57,765 60,425 64,535 67,890 65,218 68,126 68,274 67,762 69,986
Reinsurance recoverable (14,055) (14,279) (14,231) (13,722) (13,179) (12,232) (12,182) (12,093) (12,421) (12,601)
Initial net reserves for losses
and loss adjustment expenses 37,013 43,486 46,194 50,814 54,712 52,986 55,944 56,180 55,341 57,385
Cumulative paid
as of December 31:
One year later (9,930) (9,464) (11,423) (11,237) (12,551) (13,047) (12,716) (13,092) (13,525)
Two years later (15,550) (16,273) (18,044) (18,362) (19,660) (19,909) (19,821) (21,073)
Three years later (20,407) (21,234) (23,077) (23,421) (24,428) (24,693) (25,623)
Four years later (23,941) (24,945) (26,850) (26,839) (27,735) (28,808)
Five years later (26,616) (27,798) (29,425) (29,224) (30,690)
Six years later (28,668) (29,810) (31,189) (31,483)
Seven years later (30,245) (31,148) (33,030)
Eight years later (31,274) (32,655)
Nine years later (32,423)
Cumulative incurred
as of December 31:
One year later 1,964 141 (218) (1,219) (1,271) (1,059) (1,378) (1,302) (571)
Two years later 3,400 1,520 (367) (2,171) (2,152) (2,350) (2,565) (1,819)
Three years later 4,991 1,839 (897) (2,686) (2,844) (3,048) (2,700)
Four years later 5,241 1,808 (945) (3,003) (3,533) (3,176)
Five years later 5,457 2,118 (1,044) (3,438) (3,580)
Six years later 6,004 2,194 (1,184) (3,279)
Seven years later 6,094 2,254 (841)
Eight years later 6,223 2,686
Nine years later 6,662
Net reserves re-estimated
as of December 31:
One year later 38,977 43,627 45,976 49,594 53,441 51,927 54,565 54,878 54,770
Two years later 40,413 45,006 45,827 48,642 52,559 50,637 53,379 54,361
Three years later 42,004 45,325 45,297 48,127 51,868 49,939 53,243
Four years later 42,254 45,294 45,249 47,811 51,179 49,810
Five years later 42,470 45,604 45,150 47,376 51,131
Six years later 43,017 45,680 45,010 47,535
Seven years later 43,107 45,740 45,353
Eight years later 43,236 46,172
Nine years later 43,675
Financial information
Cumulative (deficiency)/
redundancy of net reserves (6,662) (2,686) 841 3,279 3,580 3,176 2,700 1,819 571
Cumulative (deficiency)/
redundancy as a percentage
of initial net reserves (18.0%) (6.2%) 1.8% 6.5% 6.5% 6.0% 4.8% 3.2% 1.0%
Gross reserves re-estimated
as of December 31, 2012 60,188 61,592 60,182 60,669 63,258 60,993 64,138 65,876 67,086
Cumulative (deficiency)/
redundancy of gross reserves (9,120) (3,827) 243 3,866 4,633 4,225 3,988 2,398 676
Cumulative (deficiency)/
redundancy as a percentage
of initial gross reserves (17.9%) (6.6%) 0.4% 6.0% 6.8% 6.5% 5.9% 3.5% 1.0%