13 Intangible Assets including Intangible Insurance Assets

In CHF million  
  30.06.2010 31.12.2009
Intangible insurance assets
  2 012 2 338
Other intangible assets
  2 039 2 238
Total intangible assets
  4 051 4 576


Intangible insurance assets
In CHF million  
  Present value of future profits from acquired insurance portfolios (PVP) Deferred acquisition costs (DAC) Deferred origination costs (DOC) Total
  2010 HY 2009 YE 2010 HY 2009 YE 2010 HY 2009 YE 2010 HY 2009 YE
Balance as at 1 January
  20 21 2 299 2 417 19 8 2 338 2 446
Additions
  227 481 13 18 240 499
Amortisation
  0 –1 –276 –533 –5 –7 –281 –541
Impairment due to liability adequacy test
  0 0
Effect of shadow accounting
  0 0 –130 –59 –130 –59
Classification as assets held for sale and other disposals
  –1 –1
Foreign currency translation differences
  –3 0 –151 –6 –1 0 –155 –6
Balance as at end of period
  17 20 1 969 2 299 26 19 2 012 2 338


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 acqui sition 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 the right for investment management services within investment contract policies. They relate to contracts in Luxembourg and Switzerland.

Other intangible assets
In CHF million  
  Goodwill Customer relationships Brands and other Total
  2010 HY 2009 YE 2010 HY 2009 YE 2010 HY 2009 YE 2010 HY 2009 YE
 
Cost
 
Balance as at 1 January
  1 947 1 890 370 368 261 253 2 578 2 511
Additions
  60 6 14 6 74
Additions from business combinations
  11 4 0 15
Classification as assets held for sale and other disposals
  –6 –3 –4 –3 –10
Foreign currency translation differences
  –140 –8 –37 –2 –29 –2 –206 –12
Balance as at end of period
  1 807 1 947 333 370 235 261 2 375 2 578
 
Accumulated amortisation and impairment
 
Balance as at 1 January
  –157 –163 –63 –29 –120 –114 –340 –306
Amortisation
  –17 –35 –3 –10 –20 –45
Impairment losses
  0 0
Classification as assets held for sale and other disposals
  6 3 4 3 10
Foreign currency translation differences
  8 1 13 0 21 1
Balance as at end of period
  –157 –157 –72 –63 –107 –120 –336 –340
 
Total other intangible assets as at end of period
  1 650 1 790 261 307 128 141 2 039 2 238


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.

In November 2009, the squeeze-out of the remaining AWD Holding shareholders representing 3.3% of the shares was completed. The purchase price of the shares amounted to CHF 58 million and led to additional goodwill of CHF 55 million.

Goodwill of CHF 11 million was recognised in 2009 on the acquisition of a financial advisory business in France.

Also in 2009, the remaining 49.4% of the non-controlling interests of Cegema, France, were acquired, which led to additional goodwill of CHF 5 million.

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.

In CHF million  
  Lloyd Continental CapitalLeben Other
  30.06.2010 31.12.2009 30.06.2010 31.12.2009 30.06.2010 31.12.2009
Net carrying amount of goodwill
  287 287 149 149 13 15
Impairment losses
 


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.

In CHF million  
  Insurance Switzerland Insurance Germany AWD
  30.06.2010 31.12.2009 30.06.2010 31.12.2009 30.06.2010 31.12.2009
Net carrying amount of goodwill
  81 81 280 314 840 944
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.

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

 
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