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- 1 of 37 General Information
- 2 of 37 Summary of Significant Accounting Policies
- 3 of 37 Critical Accounting Estimates and Judgements in Applying Accounting Policies
- 4 of 37 Segment Information
- 5 of 37 Risk Management Policies and Procedures
- 6 of 37 Earnings per Share
- 7 of 37 Premiums, Policy Fees and Deposits Received
- 8 of 37 Details of Certain Items in the Consolidated Statement of Income
- 9 of 37 Derivatives
- 10 of 37 Financial Assets and Liabilities at Fair Value through Profit or Loss
- 11 of 37 Financial Assets Available for Sale
- 12 of 37 Financial Assets Pledged as Collateral
- 13 of 37 Loans and Receivables
- 14 of 37 Financial Assets Held to Maturity
- 15 of 37 Investment Property
- 16 of 37 Investments in Associates
- 17 of 37 Property and Equipment
- 18 of 37 Intangible Assets including Intangible Insurance Assets
- 19 of 37 Other Assets and Liabilities
- 20 of 37 Investment Contracts
- 21 of 37 Borrowings
- 22 of 37 Other Financial Liabilities
- 23 of 37 Insurance Liabilities and Reinsurance Assets
- 24 of 37 Employee Benefits
- 25 of 37 Income Taxes
- 26 of 37 Provisions
- 27 of 37 Equity
- 28 of 37 Capital Management
- 29 of 37 Acquisitions and Disposals of Subsidiaries
- 30 of 37 Assets Held for Sale and Associated Liabilities
- 31 of 37 Acquisition of Insurance Portfolio
- 32 of 37 Related Party Transactions
- 33 of 37 Fair Value of Financial Instruments
- 34 of 37 Guarantees and Commitments
- 35 of 37 Collateral
- 36 of 37 Future Minimum Lease Payments under Non-Cancellable Operating Leases – Lessor
- 37 of 37 Scope of Consolidation
34 Guarantees and Commitments
|In CHF million|
Private equity commitments
Other capital commitments
Operating lease commitments
Contractual obligations to purchase or construct investment property
Other contingent liabilities and commitments
|1 215||1 793|
|In CHF million|
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
The Group has issued financial guarantees and transaction-related guarantees and similar instruments. Financial guarantees provide for specified payments to be made to reimburse the holder for a loss incurred in the event that a client fails to make payment when due.
The Group has also entered into irrevocable commitments to extend credit in the form of loans and other instruments. They represent undrawn credit lines which are available to clients to secure their liquidity needs. With respect to credit risk, these commitments are contingent upon clients maintaining certain credit standards, and the Group monitors its exposure on a regular basis.
The total amount of credit commitments includes commitments to lend at fixed rates, which expose the Group to interest rate risk. These commitments are entered into for restricted periods of time. As at 31 December 2012, committed principal amounts stood at EUR 15 million and CHF 105 million (2011: EUR 13 million and CHF 68 million). The range of committed interest rates is 2.5% to 5.9% for commitments in euro and 1.0% to 2.4% for commitments in Swiss francs.
Private equity commitments represent unfunded commitments to make investments in direct private equity or private equity funds. Such commitments do not involve credit or market risk, as the Group purchases investments at market value at the time the commitments are invoked.
Other capital commitments include commitments to make investments (capital calls) and agreements to provide liquidity to protection funds in the insurance industry.
The Group has entered into various operating leases as a lessee. Rental expenses recognised in income for these items totalled CHF 40 million for the year ended 31 December 2012 (2011: CHF 42 million). Minimum lease payments totalled CHF 40 million in 2012 (2011: CHF 42 million).
Contractual obligations for repairs and maintenance of investment property amounted to CHF 85 million as at 31 December 2012, which are included in this line item (2011: CHF 69 million).
The Group is involved in various legal proceedings, claims and litigation generally relating to its insurance operations. The outcome of such current legal proceedings, claims and litigation could have a material effect on operating results or cash flows when resolved in a future period. However, in the opinion of the management these matters are adequately provided for as at the balance sheet date.