27 Equity

Share capital

As approved by the shareholders at the General Meeting of Swiss Life Holding (SLH) on 5 May 2011, a reduction in the par value of CHF 4.50 per registered SLH share was effected in 2011 (2010: CHF 2.40 per registered share). The payout took place on 28 July 2011 and led to a reduction in the share capital of SLH of CHF 144 million (2010: CHF 77 million).

As at 31 December 2011, the share capital of SLH consisted of 32 081 054 fully-paid shares with a par value of CHF 5.10 each. In exercising voting rights, no shareholder can collect more than 10% of the total share capital directly or indirectly in respect of own shares or shares they represent. As at 31 December 2010 SLH had 32 081 054 registered shares with a par value of CHF 9.60 per share. Conditional share capital was CHF 12 032 868.60 as at 31 December 2011 (2010: CHF 22 650 105.60).

Share premium

Share premium comprises additional paid-in capital in excess of the par value (net of transaction costs), gains/losses on own equity instruments and equity compensation benefits.

Due to the reduction in the par value of CHF 4.50 per registered SLH share in 2011 (2010: CHF 2.40 per registered SLH share), an amount of CHF 1 million was credited to share premium in respect of treasury shares (2010: CHF 0.4 million).

Number of shares

The following table shows the development of SLH shares issued and treasury shares held by the Swiss Life Group during the period:

Number of shares  
  2011 2010
 
Shares issued as at end of period
  32 081 054 32 081 054
 
Treasury shares
 
Balance as at 1 January
  168 556 232 158
Purchases of treasury shares
  66 900 11 217
Sales of treasury shares
  –11 126 –74 819
Balance as at end of period
  224 330 168 556


Foreign currency translation differences

Foreign currency translation differences comprise the resulting differences arising on the translation of assets, liabilities, income and expenses of Group entities denominated in foreign currencies into Swiss francs.

Gains/losses recognised directly in equity

Gains/losses recognised directly in equity comprise fair value changes of available-for-sale investments, unrealised losses on financial assets reclassified from available for sale to loans due to the disappearance of an active market, revaluation surpluses on the transfer of owner-occupied property to investment property and the effective portion of the gain or loss on hedging derivatives in qualifying cash flow hedges. These amounts are net of certain policyholder bonuses and other policyholder liabilities, deferred acquisition costs, deferred income taxes and non-controlling interests.

Amounts recognised directly in equity for the year 2011
In CHF million  
  Gains/losses recognised directly in equity


Notes 
Foreign currency
translation
differences

Financial assets
available for sale

Cash flow
hedges


Other


Total
Net balance as at 1 January
  –762 369 2 –162 209
Gains/losses arising during the period
  –80 3 360 3 360
Hedging gains/losses arising during the period
9  9 175 175
Revaluation surplus on investment property
17  16 16
Transfer in respect of assets classified as held for sale
  0 0
Gains/losses transferred to the income statement
89  –200 –2 109 –93
Effects of
 
policyholder participation
  –1 655 42 –25 –1 638
shadow accounting
  –70 –27 –44 –141
income tax
  0 –281 –45 –17 –343
foreign currency translation differences
  0 0 –1 –1
non-controlling interests
  0 0 0 0 0
Net balance as at end of period
  –833 1 523 145 –124 1 544


Amounts recognised directly in equity for the year 2010
In CHF million  
  Gains/losses recognised directly in equity


Notes 
Foreign currency
translation
differences

Financial assets
available for sale

Cash flow
hedges


Other


Total
Net balance as at 1 January
  –216 232 –273 –41
Gains/losses arising during the period
  –596 917 917
Hedging gains/losses arising during the period
9  44 2 2
Revaluation surplus on investment property
17  3 3
Gains/losses transferred to the income statement
89  –321 232 –89
Effects of
 
policyholder participation
  –355 –133 –488
shadow accounting
  –62 36 –26
income tax
  –1 –35 0 –25 –60
disposals of subsidiaries
  0
foreign currency translation differences
  –7 –2 –9
non-controlling interests
  7 0 0 0
Net balance as at end of period
  –762 369 2 –162 209


The gains/losses transferred to the income statement of CHF 109 million in 2011 (2010: CHF 232 million) shown in “Other” relate to financial assets reclassified to loans in 2008.

Retained earnings

Retained earnings comprise accumulated retained earnings of the Group entities which have not been distributed to the shareholders. The distribution of profit is subject to restrictions in the various jurisdictions where the Group entities are located.

The Group’s insurance subsidiaries are subject to regulatory restrictions on the amount of dividends, cash loans and advances which can be remitted to the Group. Certain foreign jurisdictions have restrictions that allow the payment of dividends but may cause a delay in their remittance. Dividends payable are not accrued until they have been ratified at the General Meeting.

 

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