30 Assets Held for Sale and Discontinued Operations

In November 2007, the Swiss Life Group entered into a sale agreement to dispose of Banca del Gottardo, Lugano. The transaction was completed on 7 March 2008. Banca del Gottardo, Lugano, is presented as a separate segment “Banking (Discontinued)” for segment reporting purposes.

Also in November 2007, the Swiss Life Group announced the sale of its Dutch and Belgian businesses. The transaction was completed on 29 April 2008. For the purposes of segment reporting the Dutch and Belgian businesses are presented as a separate segment “Insurance (Discontinued)”.

Banca del Gottardo, Lugano, as well as the insurance operations in the Netherlands and in Belgium are presented as discontinued operations in the consolidated statement of income.

The calculation for the impairment testing in 2007 of the goodwill relating to Banca del Gottardo, Lugano, was based on the fair value less costs to sell. The fair value less costs to sell was determined based on the sale agreement to dispose of Banca del Gottardo, Lugano. No impairment loss was recognised in 2007.

Results from discontinued operations
In CHF million  200820072008200720082007
  Insurance
(Discontinued)
Insurance
(Discontinued)
Banking
(Discontinued)
Banking
(Discontinued)

Total

Total
Income  1 1653 1291038571 2683 986
Expenses  –1 095–2 648–95–650–1 190–3 298
Gain/loss on disposal of operations  1 0345911 625
Profit before income tax  1 1044815992071 703688
Income tax expense on profit from ordinary activities from discontinued operations   –62 –11 –3 –35 –65 –46
Income tax expense on the gain/loss on remeasurement to fair value less costs to sell/disposal of operations   –148 – –2 – –150 –
Net profit from discontinued operations  8944705941721 488642


Based on a ruling by the Dutch tax administration, the Swiss Life Group was able to reduce its tax liability by CHF 94 million in 2007.

Assets held for sale and associated liabilities
In CHF million  31.12.0831.12.0731.12.0831.12.0731.12.0831.12.0731.12.0831.12.07
  Disposal
group
Insurance
Disposal
group
Insurance
Disposal
group
Banking
Disposal
group
Banking

Non-current
assets

Non-current
assets


Total


Total
Derivatives  88546634
Financial assets at fair value through profit or loss  4 0302 5516 581
Financial assets available for sale  19 84467220 516
Loans and receivables  8195 9506 769
Financial assets held to maturity  11941160
Investment property  21911219
Investments in associates  099
Property and equipment  104138242
Foreclosed property  1234316
Intangible assets including intangible insurance assets   – 606 – 424 – – – 1 030
Other assets  1 3072 9854 292
Total assets held for sale  27 13613 32844440 468
 
Derivatives  655655
Investment contracts and other financial liabilities  6 37010 77017 140
Insurance liabilities  18 01518 015
Other liabilities  1 3133791 692
Total liabilities associated with assets held for sale  25 69811 80437 502
 
Gain (+)/loss (–) recognised directly in equity  relating to assets held for sale   – –31 – –9 – – – –40


Net cash flows from discontinued operations
In CHF million  200820072008200720082007
  Insurance
(Discontinued)
Insurance
(Discontinued)
Banking
(Discontinued)
Banking
(Discontinued)

Total

Total
Net cash flows from operating activities  –487–92405895–82803
Net cash flows from investing activities  0–16–320–48
Net cash flows from financing activities  43369–38163395232
Net cash flows from discontinued operations  –54–393671 026313987


 
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