27 Equity

Share capital
As at 31 December 2012 and 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. Conditional share capital was CHF 12 032 868.60 as at 31 December 2012 (2011: CHF 12 032 868.60).

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. The payout took place on 28 July 2011 and led to a reduction in the share capital of SLH of CHF 144 million.

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.

In 2012, a distribution to shareholders out of the capital contribution reserve of CHF 144 million (CHF 4.50 per registered share) was made.

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

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  
  2012 2011
 
Shares issued
 
Shares issued as at end of period
  32 081 054 32 081 054
 
Treasury shares
 
Balance as at 1 January
  224 330 168 556
Purchases of treasury shares
  10 000 66 900
Sales of treasury shares
  –10 000 –11 126
Allocation under equity compensation plans
  –73 978
Balance as at end of period
  150 352 224 330


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 2012
In CHF million  
  Foreign currency
translation
differences


Gains/losses recognised directly in equity


Total

Notes 

Financial assets
available for sale
Cash flow
hedges

Other

Total

Net balance as at 1 January
  –833 1 523 145 –124 1 544 711
Net other comprehensive income
  –22 971 153 68 1 192 1 170
Net balance as at end of period
  –855 2 494 299 –56 2 736 1 882
 
Details of net other comprehensive income
 
Gains/losses arising during the period
  –25 4 567 4 567 4 542
Hedging gains/losses arising during the period
9  3 408 408 412
Revaluation surplus on investment property
17  62 62 62
Share of other comprehensive income of associates
16  0 0 0
Gains/losses on assets held for sale
  1 1 1
Gains/losses transferred to the income statement
89  –753 170 –583 –583
Effects of
 
policyholder participation
  –2 506 –219 –128 –2 854 –2 854
shadow accounting
  –11 6 –13 –19 –19
income tax
  0 –326 –41 –23 –390 –390
disposals of subsidiaries
  0 0 0 0
foreign currency translation differences
  0 0 0 0 0
Net other comprehensive income before non-controlling interests
  –21 972 153 67 1 192 1 171
Non-controlling interests
  0 0 0 0 0 0
Net other comprehensive income
  –22 971 153 68 1 192 1 171


Amounts recognised directly in equity for the year 2011
In CHF million  
  Foreign currency
translation
differences


Gains/losses recognised directly in equity


Total

Notes 

Financial assets
available for sale
Cash flow
hedges

Other

Total

Net balance as at 1 January
  –762 369 2 –162 209 –553
Net other comprehensive income
  –71 1 154 143 38 1 335 1 264
Net balance as at end of period
  –833 1 523 145 –124 1 544 711
 
Details of net other comprehensive income
 
Gains/losses arising during the period
  –80 3 360 3 360 3 280
Hedging gains/losses arising during the period
9  9 175 175 184
Revaluation surplus on investment property
17  16 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 –93
Effects of
 
policyholder participation
  –1 655 42 –25 –1 638 –1 638
shadow accounting
  –70 –27 –44 –141 –141
income tax
  0 –281 –45 –17 –343 –343
foreign currency translation differences
  0 0 –1 –1 –1
Net other comprehensive income before non-controlling interests
  –71 1 154 143 38 1 335 1 264
Non-controlling interests
  0 0 0 0 0 0
Net other comprehensive income
  –71 1 154 143 38 1 335 1 264


The gains/losses transferred to the income statement of CHF 170 million in 2012 (2011: CHF 109 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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