Annual Report 2012 - Swiss Life

138 Consolidated Financial Statements
The interest rates used in actuarial formulae to determine the present value of future benefits and
contributions caused by an insurance contract are called technical interest rates. The technical interest
rates have to be approved by the regulator. In certain countries, the insurance liabilities are based on
the technical interest rates.
Impairment of goodwill
Goodwill is tested for impairment annually (in autumn), or more frequently if events or changes in
circumstances indicate that goodwill might be impaired. The recoverable amounts of the business
relating to the goodwill have been determined based on value-in-use calculations. These calculations
require the use of estimates which are set out in note 18.
Defined benefit liabilities
The Swiss Life Group uses certain assumptions relating to the calculation of the defined benefit liabilities.
These assumptions comprise the expected return on plan assets as well as future salary increases
and future pension increases which have been derived from estimates based on past experience. The
expected return on the plan assets takes into consideration the investment policy relating to the
assets and their projected returns.
The assumptions are set out in note 24.
Income taxes
Deferred tax assets are recognised for unused tax-loss carryforwards and unused tax credits to the
extent that realisation of the related tax benefit is probable. The assessment of the probability with
regard to the realisation of the tax benefit involves assumptions based on the history of the entity and
budgeted data for the future.
Provisions
The recognition of provisions involves assumptions about the probability, amount and timing of an
outflow of resources embodying economic benefits. A provision is recognised to the extent that an
outflow of resources embodying economic benefits is probable and a reliable estimate can be made.
4 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.
Swiss Life – Annual Report 2012