12 Loans and Receivables

In CHF million 
  Gross amount Allowance for impairment lossesCost/amortised cost (carrying amount)
Notes  31.12.200931.12.200831.12.200931.12.200831.12.200931.12.2008
 
Loans
 
Mortgages
  5 4465 592–29–345 4175 558
Policy loans
  470538470538
Other originated loans
  9671 449–29671 447
Purchased loans
  11 41210 89511 41210 895
Assets previously classified as available for sale
36  12 16914 685–79–4412 09014 641
Total loans
  30 46433 159–108–8030 35633 079
 
Receivables
 
Insurance receivables
  1 1431 265–20–171 1231 248
Receivables from reinsurers
  157168157168
Investment contracts ceded to reinsurers
  4949
Accrued income
  1 7681 7471 7681 747
Other
  6727880–1672787
Total receivables
  3 7893 968–20–183 7693 950
 
Total loans and receivables
32  34 25337 127–128–9834 12537 029


Allowance for impairment losses
In CHF million 
  Individual evaluation of impairmentCollective evaluation of impairment Total
  200920082009200820092008
 
Loans
 
Balance as at 1 January
  80548054
Impairment losses
  71327132
Write-offs
  –43–6–43–6
Foreign currency translation differences
  0000
Balance as at end of period
  1088010880
 
Receivables
 
Balance as at 1 January
  3315151818
Impairment losses
  4087127
Write-offs
  –10–8–5–9–5
Foreign currency translation differences
  –100–2–1–2
Balance as at end of period
  5315152018
 
Total allowance for impairment losses
  11383151512898


An allowance is recognised for the difference between the carrying value and the estimated recoverable amount, if lower.

Interest income accrued on impaired loans from continuing operations was CHF 2 million as at 31 December 2009 (2008: CHF 2 million). The Group’s loan portfolio is monitored closely through the review of information such as debt service, annual reports and assessments. This information is evaluated in light of current economic conditions and other factors such as diversification of the property portfolio. This evaluation is part of the regular review to determine whether the allowance for potential loan losses is warranted. Management believes that the allowance for loan losses is sufficient. However, management cannot predict with assurance the impact of future economic circumstances or how the mortgage and real estate portfolios would be affected by various economic circumstances.

The effect of the reclassification of financial assets available for sale to loans as at 1 July 2008 is shown in note 36.

 
Back