23 Insurance Liabilities and Reinsurance Assets

In CHF million  
  Gross Reinsurance assets Net
  31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011
Claims under non-life insurance contracts
  954 960 191 196 763 764
Unearned premiums non-life
  66 66 0 0 65 66
Claims under life insurance contracts
  6 414 6 332 87 92 6 328 6 240
Future life policyholder benefits
  84 177 80 172 91 92 84 085 80 080
Unearned premiums life
  38 43 0 38 43
Deposits under insurance contracts
  5 825 5 792 5 825 5 792
Total insurance liabilities and reinsurance assets
  97 474 93 365 369 380 97 104 92 985
of which for the account and risk of the Swiss Life Group's customers
  1 603 1 108 1 603 1 108


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  
  2012 2011
 
Balance as at 1 January
 
Gross claims under non-life insurance contracts
  960 998
Less: reinsurance recoverable
  –196 –203
Net claims under non-life insurance contracts
  764 795
 
Claims and claim settlement costs incurred
 
Reporting period
  313 344
Prior reporting periods
  –58 –76
Total claims and claim settlement costs incurred
  256 268
 
Claims and claim settlement costs paid
 
Reporting period
  –121 –144
Prior reporting periods
  –130 –129
Total claims and claim settlement costs paid
  –250 –273
 
Reclassifications and other disposals
  –6
Foreign currency translation differences
  –6 –20
 
Balance as at end of period
 
Net claims under non-life insurance contracts
  763 764
Plus: reinsurance recoverable
  191 196
Total gross claims under non-life insurance contracts
  954 960


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  2012 2011 2012 2011 2012 2011
Balance as at 1 January
  6 332 6 274 92 66 6 240 6 208
Additions from acquisition of insurance portfolio
31  146 12 134
Accretion of interest
  100 102 1 1 99 101
Claims incurred, benefits paid and surrenders
  –66 –72 –2 17 –64 –89
Effect of changes in actuarial assumptions and other movements
  64 –69 –4 –2 67 –67
Reclassifications and other disposals
  0 0
Foreign currency translation differences
  –15 –49 –1 –2 –15 –47
Balance as at end of period
  6 414 6 332 87 92 6 328 6 240


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  2012 2011 2012 2011 2012 2011
Balance as at 1 January
  80 172 77 173 92 95 80 080 77 078
Additions from acquisition of insurance portfolio
31  1 459 1 459
Savings premiums
  7 658 7 329 149 36 7 510 7 293
Accretion of interest
  1 852 1 923 1 1 1 851 1 922
Claims incurred, benefits paid and surrenders
  –7 931 –8 182 –140 –50 –7 791 –8 132
Effect of changes in actuarial assumptions and other movements
  1 830 998 –10 11 1 840 987
Reclassifications and other disposals
  757 757
Foreign currency translation differences
  –162 –528 0 –1 –162 –527
Balance as at end of period
  84 177 80 172 91 92 84 085 80 080


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  
  2012 2011
Balance as at 1 January
  5 792 5 742
Deposits received
  257 282
Interest credited
  84 100
Participating bonuses
  21 27
Policy fees and insurance charges
  –30 –35
Deposits released for payments on death, surrender and other terminations during the year
  –565 –582
Other movements
  8 370
Reclassifications and other disposals
  293
Foreign currency translation differences
  –35 –112
Balance as at end of period
  5 825 5 792


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  
  31.12.2012 31.12.2011
Insurance liabilities with discretionary participation
  83 706 81 943
Insurance liabilities without discretionary participation
  12 164 10 314
Insurance liabilities linked to assets for the account and risk of the Swiss Life Group's customers
  1 603 1 108
Total insurance liabilities
  97 474 93 365


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