3 Segment Information


Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by management (corporate executive board) in deciding how to allocate resources and in assessing performance.

The accounting policies for the segments are the same as those described in the Summary of Significant Accounting Policies section. Inter-segmental services and transfers of assets and liabilities are treated as if the transactions were with third parties, i.e. at market prices applicable at the time of the transaction.

Corporate costs were not allocated to the individual segments as they consist of general administrative expenses and head office expenses that relate to the Swiss Life Group as a whole.

The reportable segments have been identified based on information about the components of the entity that management uses to make decisions about operating matters. The business is managed based on IFRS results.

The information provided to management focuses on product lines and services. The organisational and management structure within the insurance business is geographical. The reportable segments have therefore been identified as follows:

Switzerland
France
Germany
International
Asset Managers
Other

Switzerland, France, Germany and International primarily consist of life insurance operations and distribution units. The life insurance operations offer a broad range of life, pension, health, annuity and investment-type policies to both groups and individuals, including disability coverage. The Group’s strategy focuses primarily on life and pensions in Switzerland, France and Germany and on cross-border business from Liechtenstein, Luxembourg and Singapore. These segments also include a number of companies which hold investments primarily pertaining to life insurance.

“International” comprises the cross-border insurance operations in Liechtenstein, Luxembourg and Singapore, the Swiss Life Select units operating in Austria, Czech Republic and Poland as well as Chase de Vere operating in the United Kingdom.

Non-life operations involve operations in France and Luxembourg and mainly include property and casualty, liability and motor insurance, accident and health insurance and payment protection insurance. These operations are included in the segments “France” and “Other”.

“Asset Managers” refers to the management of assets for institutional clients and the Group’s insurance business, as well as the provision of expert advice for such clients.

“Other” refers principally to various finance and service companies, as well as payment protection insurance.

The statement of income and the balance sheet for the segments are provided in the following pages:
Statement of income for the 6 months ended 30 June 2014
In CHF million  
 

Switzer-
land



France



Germany


Inter-
national


Asset
Managers



Other
Total
before
elimi-
nations


Elimi-
nations



Total
 
Income
 
Premiums earned on insurance contracts
  6 051 1 375 708 25 6 8 165 –37 8 128
Premiums earned on investment contracts with discretionary participation
  368 368 368
Premiums ceded to reinsurers
  –16 –93 –12 –6 0 –127 37 –90
Net earned premiums
  6 403 1 282 695 20 6 8 406 0 8 406
Policy fees earned on insurance contracts
  4 7 0 11 11
Policy fees earned on investment and unit-linked contracts
  20 63 9 43 136 136
Net earned policy fees
  24 70 9 43 147 147
Commission income
  68 58 173 74 185 37 595 –160 435
Investment income
  1 521 340 339 18 0 33 2 250 –33 2 217
Net gains/losses on financial assets
  –60 45 114 1 0 –8 92 92
Net gains/losses on financial instruments at fair value through profit or loss
  122 47 3 1 0 6 179 179
Net gains/losses on investment property
  98 14 20 0 132 132
Share of profit or loss of associates
  2 0 2 2
Other income
  9 1 1 0 1 3 15 –1 14
Total income
  8 186 1 859 1 353 157 187 76 11 818 –195 11 623
of which inter-segment
  46 –21 12 –21 116 63 195 –195
 
Expenses
 
Benefits and claims under insurance contracts
  –6 568 –1 172 –793 –3 3 –8 533 24 –8 509
Benefits and claims under investment contracts with discretionary participation
  –387 –387 –387
Benefits and claims recovered from reinsurers
  11 51 9 1 –2 70 –24 46
Net insurance benefits and claims
  –6 945 –1 120 –784 –2 2 –8 850 0 –8 849
Policyholder participation
  –379 –68 –202 –16 0 –665 0 –665
Interest expense
  –30 –62 –7 –8 0 0 –108 3 –105
Commission expense
  –205 –172 –123 –57 –20 –1 –578 162 –416
Employee benefits expense
  –125 –100 –73 –31 –64 –3 –397 0 –397
Depreciation and amortisation expense
  –41 –136 –71 –2 –2 –1 –253 –253
Impairment of property and equipment and intangible assets
  0 –1 –1 –1
Other expenses
  –53 –81 –43 –23 –27 –6 –233 –1 –233
Total expenses
  –7 778 –1 741 –1 303 –139 –113 –10 –11 084 165 –10 919
of which inter-segment
  –138 14 –22 0 –14 –4 –165 165
 
Segment result
  407 118 50 18 74 66 733 –30 704
of which inter-segment
  –92 –8 –10 –22 102 58 30 –30
 
Unallocated corporate costs
  –27
Profit from operations
  677
Borrowing costs
  –87 0 –2 –1 –17 –108 30 –78
Income tax expense
  –112
Net profit
  487


Statement of income for the 6 months ended 30 June 2013
In CHF million  
 

Switzer-
land



France



Germany


Inter-
national


Asset
Managers



Other
Total
before
elimi-
nations


Elimi-
nations



Total
 
Income
 
Premiums earned on insurance contracts
  5 421 1 414 768 25 0 7 629 –44 7 584
Premiums earned on investment contracts with discretionary participation
  344 344 344
Premiums ceded to reinsurers
  –16 –102 –18 –5 0 –141 45 –97
Net earned premiums
  5 749 1 312 750 20 0 7 832 0 7 832
Policy fees earned on insurance contracts
  4 9 0 13 13
Policy fees earned on investment and unit-linked contracts
  22 57 19 42 140 140
Net earned policy fees
  26 65 19 42 153 153
Commission income
  54 49 161 73 169 36 542 –149 393
Investment income
  1 494 311 334 17 0 40 2 197 –43 2 154
Net gains/losses on financial assets
  866 53 225 0 0 2 1 146 1 146
Net gains/losses on financial instruments at fair value through profit or loss
  –478 32 –15 –1 0 –2 –463 –463
Net gains/losses on investment property
  357 25 3 0 385 385
Share of profit or loss of associates
  1 2 0 2 0 5 5
Other income
  –31 1 2 0 0 1 –27 –1 –27
Total income
  8 039 1 851 1 480 152 172 77 11 770 –193 11 577
of which inter-segment
  51 –22 –14 3 108 67 193 –193
 
Expenses
 
Benefits and claims under insurance contracts
  –6 105 –1 059 –854 –5 6 –8 017 30 –7 986
Benefits and claims under investment contracts with discretionary participation
  –357 –357 –357
Benefits and claims recovered from reinsurers
  10 71 11 1 –3 90 –31 59
Net insurance benefits and claims
  –6 452 –989 –843 –4 3 –8 284 0 –8 284
Policyholder participation
  –675 –211 –296 –12 0 –1 193 0 –1 193
Interest expense
  –33 –77 –8 –8 0 0 –126 3 –124
Commission expense
  –189 –189 –112 –52 –18 –1 –561 149 –412
Employee benefits expense
  –129 –99 –75 –31 –58 –2 –395 0 –394
Depreciation and amortisation expense
  –38 –124 –46 –2 –1 –1 –212 –212
Impairment of property and equipment and intangible assets
  –4 0 –4 –4
Other expenses
  –51 –69 –48 –34 –24 –13 –238 0 –238
Total expenses
  –7 567 –1 757 –1 430 –144 –101 –14 –11 014 152 –10 862
of which inter-segment
  –138 18 –19 1 –10 –4 –152 152
 
Segment result
  472 93 50 8 71 63 756 –41 715
of which inter-segment
  –87 –5 –32 4 99 63 41 –41
 
Unallocated corporate costs
  –28
Profit from operations
  688
Borrowing costs
  –85 0 –12 –1 –11 –109 41 –68
Income tax expense
  –148
Net profit
  472


Balance sheet as at 30 June 2014
In CHF million  
 

Switzer-
land



France



Germany


Inter-
national


Asset
Managers



Other
Total
before
elimi-
nations


Elimi-
nations



Total
 
Assets
 
Cash and cash equivalents
  1 509 514 561 2 490 70 533 5 677 0 5 677
Derivatives
  1 205 231 74 14 4 1 527 –30 1 497
Financial assets at fair value through profit or loss
  3 804 8 510 1 045 17 632 0 30 992 30 992
Financial assets available for sale
  62 374 17 299 7 249 1 210 40 812 88 984 88 984
Loans and receivables
  14 562 2 248 9 904 181 153 1 402 28 450 –2 893 25 557
Financial assets pledged as collateral
  395 1 087 1 482 1 482
Investment property
  16 267 2 015 1 069 3 19 355 19 355
Investments in associates
  10 60 205 11 288 288
Reinsurance assets
  32 388 58 5 3 486 –89 398
Property and equipment
  227 43 184 2 2 15 474 474
Intangible assets including intangible insurance assets
  650 444 1 434 239 16 3 2 788 2 788
Other assets
  496 7 5 4 43 1 556 –90 466
Segment assets
  101 532 32 847 21 789 21 778 325 2 788 181 060 –3 103 177 957
Income tax assets
  65
Total assets
  178 022
 
Liabilities and equity
 
Liabilities
 
Derivatives
  715 28 4 30 777 –30 747
Financial liabilities at fair value through profit or loss
  2 974 523 775 19 718 23 990 23 990
Investment contracts
  2 375 10 307 6 811 13 498 13 498
Other financial liabilities
  4 320 3 231 739 377 30 163 8 860 –934 7 926
Insurance liabilities
  73 240 14 022 17 310 220 22 104 814 –113 104 701
Policyholder participation liabilities
  5 003 2 398 1 493 34 0 8 928 –2 8 926
Employee benefit liabilities
  1 282 72 106 4 42 0 1 506 1 506
Provisions
  19 12 71 29 6 3 139 139
Other liabilities
  125 90 43 21 3 3 283 0 283
Segment liabilities
  90 053 30 654 20 571 21 217 80 222 162 796 –1 079 161 717
Borrowings
  3 808
Income tax liabilities
  1 546
Equity
  10 952
Total liabilities and equity
  178 022


Balance sheet as at 31 December 2013
In CHF million  
 

Switzer-
land



France



Germany


Inter-
national


Asset
Managers



Other
Total
before
elimi-
nations


Elimi-
nations



Total
 
Assets
 
Cash and cash equivalents
  1 504 713 320 2 668 109 774 6 089 –1 6 088
Derivatives
  1 068 109 118 0 0 1 296 –28 1 268
Financial assets at fair value through profit or loss
  3 673 9 626 1 008 17 180 0 31 486 31 486
Financial assets available for sale
  56 954 16 022 6 493 1 104 37 461 81 071 81 071
Loans and receivables
  14 331 2 100 10 267 163 180 1 454 28 496 –2 947 25 548
Financial assets pledged as collateral
  826 1 173 1 999 1 999
Investment property
  15 600 1 874 1 040 3 18 517 18 517
Investments in associates
  12 59 185 4 10 271 271
Reinsurance assets
  31 391 51 4 6 482 –86 396
Property and equipment
  230 44 154 2 3 16 448 448
Intangible assets including intangible insurance assets
  702 463 1 512 238 16 5 2 937 2 937
Other assets
  426 40 6 2 25 1 501 –99 402
Segment assets
  95 359 32 615 21 153 21 361 374 2 731 173 593 –3 161 170 432
Income tax assets
  99
Total assets
  170 530
 
Liabilities and equity
 
Liabilities
 
Derivatives
  785 4 16 9 28 842 –28 814
Financial liabilities at fair value through profit or loss
  2 809 1 784 713 19 488 24 794 24 794
Investment contracts
  2 188 10 146 24 772 13 130 13 130
Other financial liabilities
  5 183 3 573 747 275 22 170 9 969 –930 9 040
Insurance liabilities
  70 454 13 580 17 258 220 30 101 541 –109 101 432
Policyholder participation liabilities
  2 957 1 455 1 046 24 0 5 483 –2 5 481
Employee benefit liabilities
  1 327 71 100 5 48 1 1 553 1 553
Provisions
  23 12 91 66 5 3 200 200
Other liabilities
  185 88 49 11 2 1 336 –22 314
Segment liabilities
  85 910 30 715 20 044 20 869 78 232 157 848 –1 091 156 757
Borrowings
  3 677
Income tax liabilities
  1 077
Equity
  9 018
Total liabilities and equity
  170 530


Premiums and policy fees from external customers
In CHF million  
  Net earned premiums Net earned policy fees
  2014 HY 2013 HY 2014 HY 2013 HY
 
Life
 
Individual life
  1 790 1 857 142 149
Group life
  6 416 5 780 5 4
Total life
  8 206 7 637 147 153
 
Non-life
 
Accident and health
  7 7
Property, casualty and other
  193 188
Total non-life
  199 194
 
Total
  8 406 7 832 147 153


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