Acquisitions and Disposals of Subsidiaries

29 Acquisitions and Disposals of Subsidiaries

Assets and liabilities from acquisitions

In CHF million	2007	2007	2006	2006

	Fair value	Carrying amount in accordance with IFRS before combination	Fair value	Carrying amount in accordance with IFRS before combination

Cash and cash equivalents	65	65	1	1

Insurance receivables and other receivables	178	178	0	0

Financial assets at fair value through profit or loss	5 084	5 084	–	–

Financial assets available for sale	113	113	–	–

Loans	3	3	1	1

Investment property	34	34	–	–

Property and equipment	0	0	0	0

Present value of profits from acquired insurance portfolios	8	–	–	–

Customer relationships and other intangible assets	60	–	2	–

Other assets	47	47	1	1

Insurance payables and other payables	–153	–153	–1	–1

Financial liabilities at fair value through profit or loss	–4 332	–4 332	–	–

Investment contracts	–879	–879	–	–

Borrowings	–19	–19	–1	–1

Insurance liabilities	–29	–29	–	–

Policyholder participation liabilities	–10	–10	–	–

Provisions	–2	–2	–	–

Deferred income tax liabilities	–5	0	–	–

Other liabilities	–10	–10	0	0

Net identifiable assets acquired	153	90	3	1



Cash used for acquisitions	284		3

Direct costs relating to the acquisitions	0		–

Non-cash consideration	18		–

Total purchase consideration	302		3

Net identifiable assets acquired	–153		–3

Minority interest	–		–

Goodwill	149		–



Consideration paid in cash	–284		–3

Cash and cash equivalents acquired	65		1

Net cash outflow from acquisitions	–219		–2

In November 2007, the Swiss Life Group acquired Meeschaert Assurances, Paris. The acquisition cost amounted to CHF 40 million.

In August 2007, the Swiss Life Group acquired the banking activities of Fideuram Wargny, France. The total purchase consideration amounted to CHF 29 million.

In July 2007, two real estate companies were acquired in Belgium for a total purchase consideration of CHF 13 million.

On 27 March 2007, the Swiss Life Group acquired CapitalLeben Versicherung AG, Schaan, a company headquartered in Liechtenstein, which specialises in structured life insurance solutions. Regulatory approval was obtained on the same date. CapitalLeben Versicherung AG, Schaan, contributed total income of CHF 38 million and a net profit of CHF 5 million to the Group for the period from 27 March 2007 to 31 December 2007. If the acquisition had occurred on 1 January 2007, the contribution to total income would have been CHF 49 million and the net profit CHF 8 million for the period under review.

The Swiss Life Group acquired an insurance broker in Belgium in December 2006. The acquisition cost amounted to CHF 3 million.

Assets and liabilities from disposals

In CHF million	2007	2006

Cash and cash equivalents	67	143

Derivatives (assets)	93	19

Financial assets at fair value through profit or loss	11 034	0

Financial assets available for sale	13 338	478

Loans and receivables	425	1 815

Financial assets held to maturity	–	0

Investment property	85	79

Investments in associates	–	0

Property and equipment	1	7

Goodwill	–	47

Customer relationships and other intangible assets	3	0

Other assets	20	24

Derivatives (liabilities)	–	–8

Investment contracts and other financial liabilities	–21 898	–1 495

Borrowings	–39	–548

Insurance liabilities	–1 985	–236

Provisions	0	–21

Other liabilities	–663	–76

Net assets disposed of	481	228



Cash received from disposals	372	262

Deferred consideration	–	25

Total disposal consideration	372	287

Net assets disposed of	–481	–228

Foreign currency translation differences	2	–14

Gains/losses recognised directly in equity	–1	0

Minority interest	251	–1

Gain (+)/loss (–) on disposals	143	44



Cash received from disposals	372	262

Cash and cash equivalents disposed of	–67	–143

Net cash inflow (+)/outflow (–) from disposals	305	119

In July 2007, the Swiss Life Group sold its majority stakes in ERISA, Paris and ERISA IARD, Paris. The sales price amounted to CHF 372 million and the gain realised on the sale was CHF 143 million.

The Italian insurance operations were sold in December 2006. The sales price amounted to CHF 25 million and the loss realised on the sale totalled CHF 11 million.

In February 2006, the Swiss Life Group sold Banca del Gottardo (Monaco). The sales price amounted to CHF 146 million and the gain realised on the sale was CHF 23 million.

In January 2006, Dreieck Industrie Leasing was sold. The sales price amounted to CHF 97 million and the gain realised on the sale was CHF 27 million.

Additionally, a real estate company in Belgium and a service company in Switzerland were sold in January 2006. The sales prices of these transactions amounted to CHF 19 million in total. The gain realised on the sales amounted to CHF 5 million.

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