Reinsurance (Tables)

12 Months Ended

Dec. 31, 2014

The following table presents direct, assumed, and ceded premiums:



	December 31			December 31
(in millions of U.S. dollars)	2014			2013
Reinsurance recoverable on unpaid losses and loss expenses ⁽¹⁾		$	11,307		$	10,612
Reinsurance recoverable on paid losses and loss expenses ⁽¹⁾		685			615
Net reinsurance recoverable on losses and loss expenses		$	11,992		$	11,227



	December 31
(in millions of U.S. dollars, except for percentages)	2014			Provision			% of Gross
Categories
Largest reinsurers		$	6,141		$	79	1.3	%
Other reinsurers balances rated A- or better		2,537			38		1.5	%
Other reinsurers balances with ratings lower than A- or not rated		501			94		18.8	%
Pools		324			11		3.4	%
Structured settlements		557			12		2.2	%
Captives		1,986			23		1.2	%
Other		303			100		33.0	%
Total		$	12,349		$	357	2.9	%



	Years Ended December 31
(in millions of U.S. dollars)	2014			2013		2012
GMDB
Net premiums earned	$	71		$	77	$	85
Policy benefits and other reserve adjustments	$	50		$	73	$	60
GLB
Net premiums earned	$	138		$	149	$	160
Policy benefits and other reserve adjustments	36			27		61
Net realized gains (losses)	(213		)	929		203
Gain (loss) recognized in Net income	$	(111	)	$	1,051	$	302
Net cash received	$	125		$	126	$	149
Net (increase) decrease in liability	$	(236	)	$	925	$	153



(in millions of U.S. dollars, except for percentages)		Net amount at risk
Reinsurance covering		2014		2013		2014 Future claims discount rate	Other assumptions	Total claims at 100% mortality at December 31, 2014⁽¹⁾
GMDB Risk Only		$	418	$	586	2.5% - 3.5%	No lapses or withdrawals	$	245
							Mortality according to 100% of the Annuity 2000 mortality table
GLB Risk Only		$	440	$	136	3.5% - 4.5%	No deaths, lapses or withdrawals	N/A
							Annuitization at a frequency most disadvantageous to ACE ⁽²⁾
							Claim calculated using interest rates in line with rates used to calculate reserve
Both Risks: ⁽³⁾	GMDB	$	76	$	73	3.5% - 4.5%	No lapses or withdrawals	$	19
							Mortality according to 100% of the Annuity 2000 mortality table
	GLB	$	235	$	141	3.5% - 4.5%	Annuitization at a frequency most disadvantageous to ACE ⁽²⁾	$	—
							Claim calculated using interest rates in line with rates used to calculate reserve

⁽¹⁾ Takes into account all applicable reinsurance treaty claim limits.

⁽²⁾ Annuitization at a level that maximizes claims taking into account the treaty limits.

⁽³⁾ Covering both the GMDB and GLB risks on the same underlying policyholders.