13 Intangible Assets including Intangible Insurance Assets

In CHF million  30.06.200931.12.2008
Intangible insurance assets  2 5452 446
Other intangible assets  2 2442 205
Total intangible assets  4 7894 651


Intangible insurance assets
In CHF million  2009 HY2008 YE2009 HY2008 YE2009 HY2008 YE 2009 HY 2008 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  21242 4172 612882 4462 644
Additions  23953423241537
Amortisation  0–1–265–425–1–2–266–428
Impairment due to liability adequacy test  00
Effect of gains/losses recognised directly in equity  0092–15192–151
Classification as assets held for sale and other disposals   – – –1 – – – –1 –
Foreign currency translation differences  0–233–1530–133–156
Balance as at end of period  21212 5152 417982 5452 446


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, relate to contracts acquired in Germany and France.

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

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

Other intangible assets
In CHF million  2009 HY2008 YE2009 HY2008 YE 2009 HY 2008 YE2009 HY2008 YE
 

Goodwill


Goodwill
Customer
relation-
ships
Customer
relation-
ships

Brands
and other

Brands
and other


Total


Total
 
Cost 
Balance as at 1 January  1 890599368602531342 511793
Additions  410410
Additions from business combinations  161 38243340139201 855
Classification as assets held for sale and other disposals   – – – – –2 –7 –2 –7
Foreign currency translation differences  29–916–266–2341–140
Balance as at end of period  1 9351 8903783682612532 5742 511
 
Accumulated amortisation and impairment 
Balance as at 1 January  –163–163–29–2–114–121–306–286
Amortisation  –17–27–5–13–22–40
Impairment losses 
Classification as assets held for sale and other disposals   – – – – 2 6 2 6
Foreign currency translation differences  –10–314–414
Balance as at end of period  –163–163–47–29–120–114–330–306
 
Total other intangible assets as at end of period  1 7721 7273313391411392 2442 205


Goodwill | Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of 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 of CHF 11 million was recognised on the acquisition of a financial advisory business in France in 2009.

In the period under review, the remaining 49.4% of the non-controlling interests of Cegema, France, were acquired, which led to additional goodwill of CHF 5 million.

Goodwill totalling CHF 79 million was recognised on the acquisition of Deutsche Proventus AG, Bremen, in 2008.

Goodwill totalling CHF 1303 million on the acquisition of AWD Holding AG, Hanover, was recognised in 2008. The cost that led to the recognition of goodwill concerns the anticipated future business of AWD.

Goodwill relating to Lloyd Continental and goodwill relating to “Other” have been allocated to the “Insurance France” segment. Goodwill relating to CapitalLeben has been allocated to the “Insurance Other” segment. Goodwill relating to the acquisitions of AWD Holding AG and Deutsche Proventus AG has been allocated to the “Insurance Switzerland”, “Insurance Germany” and “AWD” segments.

The net carrying amount of goodwill totalling CHF 1772 million as at 30 June 2009 (31 December 2008: CHF 1727 million) relates to:

In CHF million  30.06.0931.12.0830.06.0931.12.0830.06.0931.12.08
  Lloyd
Continental
Lloyd
Continental

CapitalLeben

CapitalLeben

Other

Other
Net carrying amount of goodwill  28728714914916
Impairment losses 


In CHF million  30.06.0931.12.0830.06.0931.12.0830.06.0931.12.08
  Insurance
Switzerland
Insurance
Switzerland
Insurance
Germany
Insurance
Germany

AWD

AWD
Net carrying amount of goodwill  8181323316916894
Impairment losses 


Customer relationships | A customer relationship asset of CHF 4 million was recognised on the acquisition of a financial advisory business in France in 2009.

In 2008, the following acquisitions led to the recognition of customer relationship assets: On the acquisition of Deutsche Proventus AG, a customer relationship asset of CHF 8 million was recognised. On the acquisition of Fonds de Commerce Arpège, a customer relationship asset of CHF 9 million was recognised. The acquisition of AWD Holding AG, 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.

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

In 2008, the following acquisitions led to the recognition of brands and other intangible assets: On the acquisition of Deutsche Proventus AG, the brand name “Proventus” was recognised at CHF 6 million. The acquisition of AWD Holding AG, led to the recognition of the brand name “AWD” at CHF 120 million, which has an indefinite useful life, as well as of computer software of CHF 13 million. The brand names of “Proventus” and “AWD” are expected to generate cash inflows without legal or similar limits on an indefinite basis.

 
Back