20 Investment Contracts

In CHF million  
Notes  31.12.2011 31.12.2010
Investment contracts with discretionary participation with deposit accounting
  9 605 9 694
Investment contracts with discretionary participation with actuarial valuation
  1 463 1 179
Investment contracts without discretionary participation at amortised cost
33  53 170
Investment contracts without discretionary participation at fair value through profit or loss
  237 236
Total investment contracts
  11 358 11 279
of which for the account and risk of the Swiss Life Group's customers
 
investment contracts with discretionary participation
  2 623 2 559
investment contracts without discretionary participation
  205 229


Investment contracts with discretionary participation with deposit accounting
In CHF million  
  2011 2010
Balance as at 1 January
  9 694 10 566
Deposits received
  1 797 2 451
Interest credited
  95 111
Participating bonuses
  187 221
Policy fees
  –108 –118
Deposits released
  –1 188 –1 280
Reclassifications and other movements
  –626 –501
Foreign currency translation differences
  –246 –1 756
Balance as at end of period
  9 605 9 694


Investment contracts with discretionary participation with actuarial valuation
In CHF million  
Notes  2011 2010
Balance as at 1 January
  1 179 820
Additions from acquisition of insurance portfolio
31  15
Savings premiums
  684 521
Accretion of interest
  25 21
Liabilities released for payments on death, surrender and other terminations during the year
  –437 –164
Effect of changes in actuarial assumptions and other movements
  0 2
Foreign currency translation differences
  –3 –21
Balance as at end of period
  1 463 1 179


In the case of contracts that do not have significant insurance risk but contain discretionary participation features, the Swiss Life Group primarily bases its accounting policies on the requirements of the Generally Accepted Accounting Principles in the United States (US GAAP).

For investment-type contracts, savings premiums collected are reported as deposits (deposit accounting). These amounts relate to contracts issued in France and Luxembourg.

In the case of traditional contracts in the life insurance business, future life policy benefit liabilities are determined by using the net-level-premium method on the basis of actuarial assumptions as to mortality, persistency, expenses and investment return, including a margin for adverse deviation. 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. These amounts relate to contracts issued in Switzerland and France.

Certain contracts that do not contain significant insurance risk and do not have discretionary participation features are carried at amortised cost or fair value.

Investment contracts without discretionary participation at amortised cost
In CHF million  
  2011 2010
Balance as at 1 January
  170 433
Deposits received
  20 173
Interest credited
  2 9
Policy fees
  0 0
Deposits released
  –136 –411
Other movements
  –1 –1
Foreign currency translation differences
  –2 –33
Balance as at end of period
  53 170


Investment contracts without discretionary participation at fair value through profit or loss
In CHF million  
  2011 2010
Balance as at 1 January
  236 270
Deposits received
  16 12
Fair value changes
  6 23
Policy fees
  –2 –3
Deposits released
  –20 –20
Other movements
  6 –4
Foreign currency translation differences
  –5 –42
Balance as at end of period
  237 236


 

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