23 Insurance Liabilities and Reinsurance Assets

In CHF million  31.12.0831.12.0731.12.0831.12.0731.12.0831.12.07
 
Gross

Gross
Reinsurance
assets
Reinsurance
assets

Net

Net
Claims under non-life insurance contracts  1 1811 2842202309611 054
Claims under life insurance contracts  6 6327 155741196 5587 036
Unearned premiums  14716922145167
Future life policyholder benefits  77 83180 84615162477 68080 222
Deposits under insurance contracts  5 2335 0385 2335 038
Total insurance liabilities and reinsurance assets  91 02494 49244797590 57793 517
of which for the account and risk of the Swiss Life Group's customers  952931952931


Claims under non-life insurance contracts
In CHF million  20082007
 
Balance as at 1 January 
Gross claims under non-life insurance contracts  1 2841 440
Less: reinsurance recoverable  –230–243
Net claims under non-life insurance contracts  1 0541 197
 
Claims and claim settlement costs incurred 
Reporting period  434395
Prior reporting periods  –81–35
Total claims and claim settlement costs incurred  353360
 
Claims and claim settlement costs paid 
Reporting period  –185–198
Prior reporting periods  –156–158
Total claims and claim settlement costs paid  –341–356
 
Claims and claim settlement costs from discontinued operations  0
Reclassifications and other disposals  –179
Foreign currency translation differences  –10532
 
Balance as at 31 December 
Net claims under non-life insurance contracts  9611 054
Plus: reinsurance recoverable  220230
Total gross claims under non-life insurance contracts  1 1811 284


Claims under non-life insurance contracts represent the liability needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the financial reporting date. The estimated liability includes the amount that will be required for future payments on both claims that have been reported to the insurer and claims relating to insured events that have occurred but have not been reported to the insurer as at the date the liability is estimated. Loss development tables are generally used to make these estimates.

Claims under life insurance contracts
In CHF million  200820072008200720082007
 
Gross

Gross
Reinsurance
assets
Reinsurance
assets

Net

Net
Balance as at 1 January  7 1557 7731191227 0367 651
Accretion of interest  11912122117119
Claims incurred, benefits paid and surrenders  –113–49–7–3–106–46
Effect of changes in actuarial assumptions and other movements  –291–156–31–3–260–153
Reclassifications and other disposals  –570–3–567
Changes from discontinued operations  –280–28
Foreign currency translation differences  –23864–94–22960
Balance as at 31 December  6 6327 155741196 5587 036


Claims under life insurance contracts represent the liability for unpaid portions of claims incurred. It includes an estimate of the liability for claims incurred but not reported (IBNR). The measurement at reporting date is a best estimate of ultimate future claim payments.

Unearned premiums

Unearned premiums represent the portion of the premiums written relating to the unexpired terms of coverage.

Future life policyholder benefits
In CHF million  200820072008200720082007
 
Gross

Gross
Reinsurance
assets
Reinsurance
assets

Net

Net
Balance as at 1 January  80 84693 34262460080 22292 742
Additions from business combinations  2323
Savings premiums  8 8428 71572678 7708 648
Accretion of interest  2 2352 2369182 2262 218
Claims incurred, benefits paid and surrenders  –11 665–8 806–27–45–11 638–8 761
Effect of changes in actuarial assumptions and other movements  33–123–495–4528–119
Reclassifications and other disposals  –16 588–5–16 583
Changes from discontinued operations  1 387–241 411
Foreign currency translation differences  –2 460660–3217–2 428643
Balance as at 31 December  77 83180 84615162477 68080 222


For participating contracts where the contribution principle applies to the allocation of the policyholder bonus, future life policy benefit liabilities are determined by using the net-level-premium method on the basis of appropriate mortality and interest rate assumptions.

The valuation of other long-duration contracts is also based on the net-level-premium method with actuarial assumptions as to mortality, persistency, expenses and investment returns including provisions for adverse deviation.

Deposits under insurance contracts
In CHF million  20082007
Balance as at 1 January  5 0386 708
Additions from business combinations  6
Deposits received  1 213453
Interest credited  146162
Participating bonuses  5451
Policy fees and insurance charges  –57–75
Deposits released for payments on death, surrender and other terminations during the year  –782–787
Other movements  3609
Reclassifications and other disposals  –7–2 396
Changes from discontinued operations  187
Foreign currency translation differences  –375120
Balance as at 31 December  5 2335 038


For investment-type contracts with significant insurance risk, savings premiums collected are reported as deposits (deposit accounting).

Insurance liabilities with and without discretionary participation
In CHF million  31.12.200831.12.2007
Insurance liabilities with discretionary participation  80 06182 891
Insurance liabilities without discretionary participation  10 01110 670
Insurance liabilities for the account and risk of the Swiss Life Group's customers  952931
Total insurance liabilities  91 02494 492


Non-discretionary policyholder bonuses and other liabilities

Policyholder liabilities are recognised in accordance with legal or contractual requirements and ratified by management.

 
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