22 Insurance Liabilities and Reinsurance Assets

In CHF million 
  GrossReinsurance assetsNet
Notes  31.12.200931.12.200831.12.200931.12.200831.12.200931.12.2008
Claims under non-life insurance contracts
  1 1971 181228220969961
Unearned premiums non-life
  8187118086
Claims under life insurance contracts
  6 5056 63281746 4246 558
Future life policyholder benefits
  78 52877 83110115178 42777 680
Unearned premiums life
  5960115859
Deposits under insurance contracts
  5 9475 2335 9475 233
Total insurance liabilities and reinsurance assets
  92 31791 02441244791 90590 577
of which for the account and risk of the Swiss Life Group's customers5  742952742952


Claims under non-life insurance contracts
In CHF million 
  20092008
 
Balance as at 1 January
 
Gross claims under non-life insurance contracts
  1 1811 284
Less: reinsurance recoverable
  –220–230
Net claims under non-life insurance contracts
  9611 054
 
Claims and claim settlement costs incurred
 
Reporting period
  447434
Prior reporting periods
  –78–81
Total claims and claim settlement costs incurred
  369353
 
Claims and claim settlement costs paid
 
Reporting period
  –188–185
Prior reporting periods
  –157–156
Total claims and claim settlement costs paid
  –345–341
 
Reclassifications and other disposals
  –10
Foreign currency translation differences
  –6–105
 
Balance as at end of period
 
Net claims under non-life insurance contracts
  969961
Plus: reinsurance recoverable
  228220
Total gross claims under non-life insurance contracts
  1 1971 181


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 
  GrossReinsurance assetsNet
  200920082009200820092008
Balance as at 1 January
  6 6327 155741196 5587 036
Accretion of interest
  11411912113117
Claims incurred, benefits paid and surrenders
  –206–1137–7–213–106
Effect of changes in actuarial assumptions and other movements
  –23–2910–31–23–260
Foreign currency translation differences
  –12–238–1–9–11–229
Balance as at end of period
  6 5056 63281746 4246 558


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.

Future life policyholder benefits
In CHF million 
  GrossReinsurance assetsNet
  200920082009200820092008
Balance as at 1 January
  77 83180 84615162477 68080 222
Savings premiums
  7 7168 842155727 5618 770
Accretion of interest
  2 0482 235192 0472 226
Claims incurred, benefits paid and surrenders
  –8 929–11 665–132–27–8 797–11 638
Effect of changes in actuarial assumptions and other movements
  –1133–75–49564528
Foreign currency translation differences
  –127–2 4601–32–128–2 428
Balance as at end of period
  78 52877 83110115178 42777 680


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 
  20092008
Balance as at 1 January
  5 2335 038
Deposits received
  1 3291 213
Interest credited
  139146
Participating bonuses
  4754
Policy fees and insurance charges
  –56–57
Deposits released for payments on death, surrender and other terminations during the year
  –716–782
Other movements
  43
Reclassifications and other disposals
  –7
Foreign currency translation differences
  –33–375
Balance as at end of period
  5 9475 233


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 
  31.12.200931.12.2008
Insurance liabilities with discretionary participation
  80 45980 061
Insurance liabilities without discretionary participation
  11 11610 011
Insurance liabilities for the account and risk of the Swiss Life Group's customers
  742952
Total insurance liabilities
  92 31791 024


Non-discretionary policyholder bonuses and other liabilities

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

Unearned premiums

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

 
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