Annual Report 2012 - Swiss Life

113 Consolidated Financial Statements
Notes to the Consolidated Financial Statements
1 General Information
The Swiss Life Group is one of Europe’s leading comprehensive life and pensions and financial solutions
providers. In its core markets of Switzerland, France and Germany, Swiss Life offers individuals and
corporations comprehensive and individual advice plus a broad range of own and partner products
through its sales force and distribution partners such as brokers and banks.
Swiss Life Select (formerly AWD), tecis, HORBACH, Proventus and Chase de Vere advisors choose
suitable products for customers from the market according to the Best Select approach. Swiss Life
Asset Managers offers institutional and private investors access to investment and asset management
solutions. Swiss Life provides multinational corporations with employee benefits solutions and high
net worth individuals with structured life and pensions products.
Distribution out of capital contribution reserve
For the 2011 financial year, a distribution was made to the shareholders of Swiss Life Holding Ltd
(hereinafter referred to as “Swiss Life Holding”), instead of a dividend payment from profit, from the
capital contribution reserve. This amounted to CHF 144 million (CHF 4.50 per registered share) and
was paid in the first half of 2012.
Approval of financial statements
On 13 March 2013, the Board of Directors approved the annual financial statements and the financial
report and authorised them for issue. The financial report, therefore, only reflects events up to that
date.
2 Summary of Significant Accounting Policies
The principal accounting policies are set out below. These policies have been applied consistently to
all the periods presented unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of Swiss Life have been prepared in accordance with and comply
with International Financial Reporting Standards (IFRS). The consolidated financial statements
have been prepared on a historical cost basis, except for the following assets and liabilities which are
stated at their fair value: derivatives, financial assets and liabilities at fair value through profit or loss,
financial assets classified as available for sale and investment property.
The preparation of financial statements in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity,
or areas where assumptions and estimates are significant to the consolidated financial statements,
are disclosed in note 3.
2.2 Changes in accounting policies
Standards and Interpretations effective in the current period
In December 2010, an amendment to IAS 12 Income Taxes was issued by the International Accounting
Standards Board. The amendment is set out in Deferred Tax: Recovery of Underlying Assets. It can be
difficult and subjective to assess whether recovery will be through use or through sale when the asset
Swiss Life – Annual Report 2012