12 Intangible Assets including Intangible Insurance Assets

In CHF million   30.06.200831.12.2007
Intangible insurance assets   2 8142 644
Other intangible assets   2 243507
Total intangible assets   5 0573 151


Intangible insurance assets
In CHF million Notes  2008 HY2007 YE2008 HY2007 YE2008 HY2007 YE2008 HY2007 YE
 
 
 
 
 
 
 
 
  Present
value of
future
profits from
acquired
insurance
portfolios
(PVP)
Present
value of
future
profits from
acquired
insurance
portfolios
(PVP)




Deferred
acquisition
costs
(DAC)




Deferred
acquisition
costs
(DAC)




Deferred
origination
costs
(DOC)




Deferred
origination
costs
(DOC)







Total







Total
Balance as at 1 January   24172 6122 52682462 6442 789
Additions   26545215266457
Additions from business combinations   88
Amortisation 6  0–1–193–388–1–2–194–391
Impairment due to liability adequacy test   –2–1–2–1
Effect of gains/losses recognised directly in equity   00148326148326
Changes from discontinued operations   27–1116
Classification as assets held for sale and other disposals      – – – –372 – –231 – –603
Foreign currency translation differences   –10–474201–4843
Balance as at end of period   23242 7832 612882 8142 644


Present value of future profits (PVP) | The present value of future profits relates to portfolios of insurance contracts and investment contracts with discretionary participation acquired in a business combination or transfer of portfolios. These amounts, representing the present value of future profits amortised in proportion to gross profits over the effective life of the acquired insurance and investment contracts, primarily relate to contracts acquired in Germany and France.

On the acquisition of Meeschaert Assurances, Paris, in November 2007, present value of future profits amounting to CHF 8 million was recognised.

Deferred acquisition costs (DAC) | Certain acquisition costs relating to new and renewed insurance contracts and investment contracts with discretionary participation features are deferred.

Deferred origination costs (DOC) | These costs are recoverable and are directly attributable to securing investment management contracts. They primarily relate to contracts in Luxembourg.

Intangible insurance assets of CHF 600 million relating to the insurance operations in the Netherlands and Belgium were reclassified to assets held for sale in 2007.

Other intangible assets
In CHF million Notes  2008 HY2007 YE2008 HY2007 YE2008 HY2007 YE2008 HY2007 YE
 
 
 
 

Goodwill


Goodwill
Customer
relation-
ships
Customer
relation-
ships

Brands
and other

Brands
and other


Total


Total
  
Cost  
Balance as at 1 January   5991 43060181341757931 623
Additions   3333
Additions from business combinations 19  1 3001653176013301 750225
Additions from internal development   00
Classification as assets held for sale and other disposals      – –996 – –19 –1 –52 –1 –1 067
Changes from discontinued operations   033
Foreign currency translation differences   0–11–45–56
Balance as at end of period   1 899599376602651342 540793
  
Accumulated amortisation and impairment  
Balance as at 1 January   –163–738–2–11–121–156–286–905
Amortisation recognised in income 6  –9–4–6–7–15–11
Impairment losses   00
Classification as assets held for sale and other disposals      – 575 – 16 1 48 1 639
Changes from discontinued operations   –3–2–5
Foreign currency translation differences   –205–43–4
Balance as at end of period   –163–163–13–2–121–121–297–286
  
Total other intangible assets as at end of period   1 73643636358144132 243507


Goodwill | Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities, if applicable, at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on associates is included in the carrying amount of the investment.

Goodwill totalling CHF 1300 million on the acquisition of AWD Holding AG, Hanover, was recognised in the period under review. The cost that led to the recognition of goodwill relates to the anticipated future business of AWD.

Goodwill totalling CHF 149 million on the acquisition of CapitalLeben Versicherung AG, Schaan, was recognised in 2007. The cost that led to the recognition of goodwill related to the anticipated future business of the Liechtenstein operation. Goodwill on the acquisition of CapitalLeben Versicherung AG, Schaan, has been allocated to the segment “Insurance Other”.

In 2007, goodwill amounting to CHF 16 million was recognised on the purchase of additional shares of Banca del Gottardo Italia, Bergamo. The proportion of ownership interest increased by 19% to 90%.

Goodwill relating to Lloyd Continental has been allocated to the segment “Insurance France”.

The net carrying amount of goodwill totalling CHF 1736 million as at 30 June 2008 (YE 2007: CHF 436 million) relates to:

In CHF million   30.06.0831.12.0730.06.0831.12.0730.06.0831.12.07
 
 
  Lloyd
Continental
Lloyd
Continental

CapitalLeben

CapitalLeben

AWD

AWD
Net carrying amount of goodwill   2872871491491 300
Impairment losses  


Goodwill amounting to CHF 421 million relating to Banca del Gottardo (including CHF 16 million relating to the purchase of additional shares of Banca del Gottardo Italia, Bergamo) has been reclassified to assets held for sale in 2007.

Customer relationships | The acquisition of AWD Holding AG, Hanover, led to the recognition of a customer relationship asset of CHF 312 million. The acquisition of Placement Direct, France, led to a customer relationship asset amounting to CHF 5 million.

On the acquisition of CapitalLeben Versicherung AG, Schaan, a customer relationship asset of CHF 33 million was recognised in 2007. In August 2007, the Swiss Life Group acquired the banking activities of Fideuram Wargny, France, which led to the recognition of a customer relationship asset of CHF 12 million. In November 2007, Meeschaert Assurances, Paris, was acquired and a customer relationship asset amounting to CHF 15 million was recognised.

Brands and other | Consist of brands, trademarks, computer software and other intangible assets.

The acquisition of AWD Holding AG, Hanover, led to the recognition of the brand name of “AWD” of CHF 120 million and computer software of CHF 13 million.

 
Back