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.

Intercompany trademark fees charged and received for the use of the Swiss Life brand have been excluded from the segment result. The statement of income for the 6 months ended 30 June 2014 has been represented accordingly.

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 mainly 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 2015
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
  6 370 1 199 578 21 4 8 173 –32 8 141
Premiums earned on investment contracts with discretionary participation
  518 518 518
Premiums ceded to reinsurers
  –6 –80 –13 –5 0 –104 32 –72
Net earned premiums
  6 883 1 119 565 16 4 8 587 0 8 587
Policy fees earned on insurance contracts
  4 6 0 0 10 10
Policy fees earned on investment and unit-linked contracts
  17 63 6 40 125 125
Net earned policy fees
  21 69 6 40 135 135
Commission income
  75 51 162 71 259 24 641 –165 477
Investment income
  1 507 357 300 15 2 32 2 212 –31 2 182
Net gains/losses on financial assets
  –1 853 77 301 24 –2 –96 –1 549 –1 549
Net gains/losses on financial instruments at fair value through profit or loss
  1 906 –38 –254 –1 0 92 1 704 1 704
Net gains/losses on investment property
  301 36 14 0 351 351
Share of profit or loss of associates
  0 2 2 0 5 5
Other income
  313 0 1 –22 3 1 296 –1 296
Total income
  9 154 1 672 1 094 143 263 56 12 383 –196 12 187
of which inter-segment
  41 –20 –18 11 133 49 196 –196
 
Expenses
 
Benefits and claims under insurance contracts
  –7 176 –957 –616 –5 1 –8 753 26 –8 726
Benefits and claims under investment contracts with discretionary participation
  –537 –537 –537
Benefits and claims recovered from reinsurers
  5 51 10 1 0 67 –26 41
Net insurance benefits and claims
  –7 708 –905 –606 –4 0 –9 223 0 –9 223
Policyholder participation
  –580 –157 –183 –11 0 –931 0 –931
Interest expense
  –25 –55 –6 –7 0 0 –93 3 –90
Commission expense
  –209 –167 –113 –50 –23 0 –563 164 –399
Employee benefits expense
  –119 –87 –63 –30 –96 –2 –397 0 –397
Depreciation and amortisation expense
  –59 –101 –41 –2 –6 –1 –209 –209
Impairment of property and equipment and intangible assets
  –4 0 –4 –4
Other expenses
  –49 –67 –31 –18 –36 –10 –212 –1 –212
Total expenses
  –8 753 –1 539 –1 041 –122 –162 –14 –11 631 166 –11 465
of which inter-segment
  –147 22 –20 2 –18 –4 –166 166
 
Segment result
  400 133 53 21 101 43 752 –30 722
of which inter-segment
  –106 2 –38 12 115 46 30 –30
 
Unallocated corporate costs
  –30
Profit from operations
  692
Borrowing costs
  –76 0 –3 0 –4 –15 –98 30 –69
Income tax expense
  –130
Net profit
  493


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 23 581 –147 435
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 63 11 804 –182 11 623
of which inter-segment
  46 –21 12 –21 116 50 182 –182
 
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
  –198 –169 –121 –56 –19 –1 –565 148 –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
  –7 772 –1 738 –1 301 –138 –112 –10 –11 071 152 –10 919
of which inter-segment
  –132 17 –20 1 –13 –4 –152 152
 
Segment result
  414 121 52 19 75 53 733 –30 704
of which inter-segment
  –86 –5 –8 –21 103 45 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


Balance sheet as at 30 June 2015
In CHF million  
 

Switzer-
land



France



Germany


Inter-
national


Asset
Managers



Other
Total
before
elimi-
nations


Elimi-
nations



Total
 
Assets
 
Cash and cash equivalents
  1 218 826 511 2 345 63 218 5 181 0 5 181
Derivatives
  2 588 300 67 47 32 3 034 –31 3 003
Assets held for sale
  4 4 4
Financial assets at fair value through profit or loss
  4 372 8 613 1 142 17 256 0 31 382 31 382
Financial assets available for sale
  69 188 16 031 7 093 1 139 42 1 008 94 500 94 500
Loans and receivables
  15 072 2 930 8 156 313 208 1 671 28 349 –3 048 25 301
Financial assets pledged as collateral
  1 229 1 184 2 413 2 413
Investment property
  17 644 1 778 1 390 3 20 814 20 814
Investments in associates
  8 54 3 4 1 70 70
Reinsurance assets
  31 342 62 4 1 440 –84 355
Property and equipment
  221 35 132 2 3 13 406 406
Intangible assets including intangible insurance assets
  630 409 1 306 230 180 1 2 756 2 756
Other assets
  501 6 3 5 195 1 710 –171 539
Segment assets
  112 705 32 506 19 865 21 340 694 2 948 190 059 –3 335 186 724
Income tax assets
  71
Total assets
  186 795
 
Liabilities and equity
 
Liabilities
 
Derivatives
  1 028 18 328 11 31 1 417 –31 1 386
Financial liabilities at fair value through profit or loss
  3 311 791 814 19 358 24 274 24 274
Investment contracts
  3 037 9 292 0 861 13 190 13 190
Other financial liabilities
  6 795 4 522 691 281 192 279 12 760 –1 170 11 590
Insurance liabilities
  77 374 13 180 15 082 190 13 105 839 –109 105 730
Policyholder participation liabilities
  6 373 2 427 1 653 38 0 10 492 –2 10 490
Employee benefit liabilities
  1 599 67 115 10 71 0 1 863 1 863
Provisions
  16 8 35 25 8 3 95 95
Other liabilities
  138 76 36 16 5 4 275 –1 273
Segment liabilities
  99 671 30 383 18 754 20 790 276 331 170 205 –1 313 168 892
Borrowings
  4 381
Income tax liabilities
  1 756
Equity
  11 767
Total liabilities and equity
  186 795


Balance sheet as at 31 December 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
  1 819 642 629 2 489 160 322 6 062 0 6 062
Derivatives
  1 769 439 113 68 2 389 –30 2 358
Assets held for sale
 
Financial assets at fair value through profit or loss
  4 133 8 478 1 172 18 607 0 32 389 32 389
Financial assets available for sale
  68 179 18 749 8 080 1 219 45 891 97 162 97 162
Loans and receivables
  15 903 3 292 9 815 272 157 1 588 31 027 –3 079 27 948
Financial assets pledged as collateral
  1 682 1 081 2 763 2 763
Investment property
  16 385 2 026 1 182 3 19 596 19 596
Investments in associates
  9 60 202 3 11 284 284
Reinsurance assets
  31 389 64 4 2 490 –93 397
Property and equipment
  225 41 156 2 3 15 442 442
Intangible assets including intangible insurance assets
  606 429 1 484 239 213 3 2 972 2 972
Other assets
  331 40 5 3 124 1 504 –73 431
Segment assets
  111 072 35 667 22 900 22 901 705 2 836 196 081 –3 275 192 807
Income tax assets
  48
Total assets
  192 854
 
Liabilities and equity
 
Liabilities
 
Derivatives
  1 865 18 247 8 57 2 195 –30 2 165
Financial liabilities at fair value through profit or loss
  3 233 651 847 20 684 25 415 25 415
Investment contracts
  2 714 10 444 1 911 14 070 14 070
Other financial liabilities
  7 246 4 167 881 384 99 149 12 925 –869 12 056
Insurance liabilities
  74 202 14 547 17 277 209 18 106 253 –117 106 136
Policyholder participation liabilities
  6 838 3 217 2 063 36 0 12 154 –2 12 152
Employee benefit liabilities
  1 504 77 149 5 86 0 1 821 1 821
Provisions
  18 13 57 30 9 2 128 128
Other liabilities
  153 74 45 10 8 1 290 –1 289
Segment liabilities
  97 773 33 207 21 566 22 276 203 227 175 251 –1 018 174 233
Borrowings
  3 798
Income tax liabilities
  1 991
Equity
  12 831
Total liabilities and equity
  192 854


Premiums and policy fees from external customers
In CHF million  
  Net earned premiums Net earned policy fees
  2015 HY 2014 HY 2015 HY 2014 HY
 
Life
 
Individual life
  1 667 1 790 131 142
Group life
  6 751 6 416 4 5
Total life
  8 418 8 206 135 147
 
Non-life
 
Accident and health
  5 7
Property, casualty and other
  164 193
Total non-life
  169 199
 
Total
  8 587 8 406 135 147


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