23 Insurance Liabilities and Reinsurance Assets

In CHF million  
  Gross Reinsurance assets Net
  31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
Claims under non-life insurance contracts
  960 998 196 203 764 795
Unearned premiums non-life
  66 68 0 0 66 68
Claims under life insurance contracts
  6 332 6 274 92 66 6 240 6 208
Future life policyholder benefits
  80 172 77 173 92 95 80 080 77 078
Unearned premiums life
  43 50 1 43 49
Deposits under insurance contracts
  5 792 5 742 5 792 5 742
Total insurance liabilities and reinsurance assets
  93 365 90 305 380 365 92 985 89 940
of which for the account and risk of the Swiss Life Group's customers
  1 108 961 1 108 961


Unearned premiums

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

Claims under non-life insurance contracts
In CHF million  
  2011 2010
 
Balance as at 1 January
 
Gross claims under non-life insurance contracts
  998 1 197
Less: reinsurance recoverable
  –203 –228
Net claims under non-life insurance contracts
  795 969
 
Claims and claim settlement costs incurred
 
Reporting period
  344 381
Prior reporting periods
  –76 –90
Total claims and claim settlement costs incurred
  268 291
 
Claims and claim settlement costs paid
 
Reporting period
  –144 –157
Prior reporting periods
  –129 –158
Total claims and claim settlement costs paid
  –273 –315
 
Reclassifications and other disposals
  –6
Foreign currency translation differences
  –20 –150
 
Balance as at end of period
 
Net claims under non-life insurance contracts
  764 795
Plus: reinsurance recoverable
  196 203
Total gross claims under non-life insurance contracts
  960 998


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  
  Gross Reinsurance assets Net
Notes  2011 2010 2011 2010 2011 2010
Balance as at 1 January
  6 274 6 505 66 81 6 208 6 424
Additions from acquisition of insurance portfolio
31  146 12 134
Accretion of interest
  102 110 1 1 101 109
Claims incurred, benefits paid and surrenders
  –72 –72 17 –2 –89 –70
Effect of changes in actuarial assumptions and other movements
  –69 89 –2 –2 –67 91
Foreign currency translation differences
  –49 –358 –2 –12 –47 –346
Balance as at end of period
  6 332 6 274 92 66 6 240 6 208


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  
  Gross Reinsurance assets Net
Notes  2011 2010 2011 2010 2011 2010
Balance as at 1 January
  77 173 78 528 95 101 77 078 78 427
Additions from acquisition of insurance portfolio
31  1 459 1 459
Savings premiums
  7 329 7 250 36 143 7 293 7 107
Accretion of interest
  1 923 1 966 1 1 1 922 1 965
Claims incurred, benefits paid and surrenders
  –8 182 –7 738 –50 –246 –8 132 –7 492
Effect of changes in actuarial assumptions and other movements
  998 938 11 108 987 830
Foreign currency translation differences
  –528 –3 771 –1 –12 –527 –3 759
Balance as at end of period
  80 172 77 173 92 95 80 080 77 078


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  
  2011 2010
Balance as at 1 January
  5 742 5 947
Deposits received
  282 390
Interest credited
  100 118
Participating bonuses
  27 38
Policy fees and insurance charges
  –35 –39
Deposits released for payments on death, surrender and other terminations during the year
  –582 –666
Reclassifications and other disposals
  370 724
Foreign currency translation differences
  –112 –770
Balance as at end of period
  5 792 5 742


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  
  31.12.2011 31.12.2010
Insurance liabilities with discretionary participation
  81 943 79 306
Insurance liabilities without discretionary participation
  10 314 10 038
Insurance liabilities linked to assets for the account and risk of the Swiss Life Group's customers
  1 108 961
Total insurance liabilities
  93 365 90 305


 

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