19 Acquisitions and Disposals of Subsidiaries

Assets and liabilities from acquisitions
In CHF million Notes  2008 HY2008 HY2007 HY2007 HY
 
 
 
 
 


Fair value
Carrying amount
in accordance
with IFRS before
combination



Fair value
Carrying amount
in accordance
with IFRS before
combination
Cash and cash equivalents   2872874949
Insurance receivables and other receivables   1911916060
Financial assets at fair value through profit or loss   4 3244 324
Other financial assets   3636
Property and equipment   818100
Customer relationships and other intangible assets   44513330
Other assets   1616
Insurance payables and other payables   –343–343
Financial liabilities at fair value through profit or loss   –4 332–4 332
Insurance liabilities   –23–23
Provisions   00–1–1
Deferred income tax liabilities   –123–3–50
Other liabilities   –166–166–34–34
Net identifiable assets acquired   4241127143
  
Cash used for acquisitions   1 516220
Direct costs relating to the acquisitions   120
Non-cash consideration   182
Total purchase consideration   1 710220
Net identifiable assets acquired   –424–71
Minority interest   14
Goodwill 12  1 300149
  
Consideration paid in cash   –1 528–220
Cash and cash equivalents acquired   28749
Net cash outflow from acquisitions   –1 2411–171
1   of which paid in 2007: CHF 264 million


On 19 March 2008, 96.7% of the AWD Holding shares (including 10.46% shares under option) were acquired by the Swiss Life Group. The AWD Group specialises in independent financial advisory services and is one of Europe’s top financial services providers for the medium and high-income customer segments. The acquisition cost amounted to CHF 1710 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.

Assets and liabilities from disposals
In CHF million   2008 HY
 
 
  Insurance
(Discontinued)
Banking
(Discontinued)

Total
Cash and cash equivalents   1 0503 3324 382
Derivatives (assets)   78547625
Financial assets at fair value through profit or loss   3 9572 5516 508
Financial assets available for sale   19 72168320 404
Loans and receivables   1 3595 9497 308
Financial assets held to maturity   11141152
Investment property   210210
Investments in associates   099
Reinsurance assets   4747
Property and equipment   101138239
Intangible assets including intangible insurance assets   5774241 001
Other assets   46331377
Insurance payables and other payables   –1 261–119–1 380
Derivatives (liabilities)   –2–720–722
Financial liabilities at fair value through profit or loss   –245–438–683
Investment contracts and other financial liabilities   –2 613–11 217–13 830
Insurance liabilities   –20 789–20 789
Policyholder participation liabilities   –427–427
Employee benefit liabilities   –304–307–611
Provisions   –6–34–40
Other liabilities   –345–55–400
Net assets disposed of   1 2651 1152 380
  
Cash received from disposals   2 4461 7734 219
Direct costs relating to the disposals   –58–49–107
Total disposal consideration   2 3881 7244 112
Transfer to financial assets at fair value through profit or loss   1616
Net assets disposed of   –1 265–1 115–2 380
Foreign currency translation differences   12–57
Gains/losses recognised directly in equity   –131–8–139
Treasury shares   –12–12
Minority interest   14721
Gain (+)/loss (–) on disposals   1 0345911 625


On 29 April 2008, the Swiss Life Group sold the Dutch and Belgian businesses. The disposal consideration amounted to CHF 2388 million. The gain realised on the sale was CHF 1034 million. For the purposes of segment reporting the Dutch and Belgian businesses have been presented as a separate segment “Insurance (Discontinued)”.

On 7 March 2008, Banca del Gottardo was disposed of for a total consideration of CHF 1724 million. The gain realised on the sale amounted to CHF 591 million. Banca del Gottardo has been presented as a separate segment “Banking (Discontinued)”.

Results from discontinued operations
In CHF million   2008 HY2007 HY2008 HY2007 HY2008 HY2007 HY
 
 
  Insurance
(Discontinued)
Insurance
(Discontinued)
Banking
(Discontinued)
Banking
(Discontinued)

Total

Total
Income   1 1641 6721034381 2672 110
Expenses   –1 095–1 577–95–321–1 190–1 898
Gain/loss on remeasurement to fair value less costs to sell  
Gain/loss on disposal of operations   1 0345911 625
Profit before income tax   1 103955991171 702212
Income tax expense on profit from ordinary activities from discontinued operations      –62 20 –3 –22 –65 –2
Income tax expense on the gain/loss on remeasurement to fair value less costs to sell/disposal of operations      –150 – –2 – –152 –
Net profit from discontinued operations   891115594951 485210


 
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