13 Loans and Receivables

In CHF million  
 
Gross amount

Allowance for impairment losses
Cost/amortised cost
(carrying amount)
Notes  31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011
 
Loans
 
Mortgages
  5 488 5 147 –24 –24 5 464 5 123
Policy loans
  299 330 299 330
Other originated loans
  955 1 292 –8 –7 948 1 285
Note loans
  7 970 8 176 7 970 8 176
Debt securities previously classified as available for sale
  6 434 7 976 –31 –31 6 403 7 945
Debt securities designated as loans
  529 663 529 663
Repurchase agreements
  93 93
Total loans
33  21 675 23 677 –63 –62 21 612 23 615
 
Receivables
 
Insurance receivables
  1 180 972 –19 –23 1 162 949
Reinsurance receivables
  240 167 240 167
Accrued income
  1 651 1 758 1 651 1 758
Settlement accounts
  40 172 40 172
Other
  784 542 –1 –1 783 541
Total receivables
33  3 895 3 611 –20 –24 3 876 3 587
 
Total loans and receivables
  25 570 27 288 –82 –86 25 488 27 202


Allowance for impairment losses
In CHF million  
  Individual
evaluation of impairment
Collective
evaluation of impairment

Total
  2012 2011 2012 2011 2012 2011
 
Loans
 
Balance as at 1 January
  53 70 9 9 62 79
Impairment losses
  1 0 0 1 0
Write-offs
  0 –17 0 0 –17
Foreign currency translation differences
  0 0 0 0
Balance as at end of period
  54 53 9 9 63 62
 
Receivables
 
Balance as at 1 January
  7 8 17 16 24 24
Impairment losses
  2 2 4 2 6 4
Write-offs
  –3 –3 –7 –1 –10 –4
Foreign currency translation differences
  0 0 0 0 0 0
Balance as at end of period
  5 7 14 17 20 24
 
Total allowance for impairment losses
  59 60 23 26 82 86


Interest income accrued on impaired loans was CHF 1 million as at 31 December 2012 (2011: CHF 1 million). The Group’s loan port­folio is monitored closely through the review of information such as debt service, annual reports and assessments. This information is evaluated in light of current economic conditions and other factors such as diversification of the property portfolio. This evaluation is part of the regular review to determine whether the allowance for potential loan losses is warranted. Management believes that the allowance for loan losses is sufficient. However, management cannot predict with assurance the impact of future economic circumstances or how the mortgage and real estate portfolios would be affected by various economic circumstances.

As at 1 July 2008, certain financial assets were reclassified from financial assets available for sale to loans due to the disappearance of an active market. The financial assets reclassified primarily consist of corporate debt instruments and debt instruments relating to emerging markets. The fair value as at 1 July 2008 of the financial assets reclassified amounted to CHF 14 966 million. At the date of reclassification the effective interest rate ranged from 0.8% to 9.7%, and the amount of cash flows expected to be recovered was estimated at CHF 32 658 million. In 2008, unrealised losses of CHF 740 million were recognised in equity in respect of these assets.

Further details with regard to the financial assets reclassified are as follows:

DEBT Securities previously classified as available for sale
In CHF million  
  2012 2011
Carrying amount as at 31 December
  6 403 7 945
Fair value as at 31 December
  7 647 8 680
Gains (+)/losses (–) that would have been recognised in other comprehensive income if the assets had not been reclassified (excluding adjustments for income tax and policyholder participation)
  679 –58
Gains (+)/losses (–) recognised in profit or loss (including impairment)
  –46 –19
Interest income
  423 490


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