Annual Report 2012 - Swiss Life

In CHF million
CHF EUR USD GBP JPY Other
In CHF million
CHF EUR USD GBP JPY Other
158 Consolidated Financial Statements
at covering its exposure mainly from an economic perspective. The instruments which the Swiss Life
Group uses to hedge exposure may not be perfectly correlated to the related assets, so the Group will
still be exposed to losses if the value of the hedge and the value of the underlying asset or liability do
not correspond appropriately.
Due to the limitations of the Swiss capital market with regard to liquidity, investments in Switzerland
are also made in currencies other than the Swiss franc.
The balance sheet currency exposure is to a large extent hedged using foreign currency derivatives.
The following table shows the Group’s foreign currency exposure against the major functional currencies
Swiss franc and euro:
Currency Exposure as At 31 December 2012
Balance sheet currency exposure
Entities with functional currency CHF – 7 197 18 410 4 165 110 3 041
Entities with functional currency EUR –21 – 1 961 179 0 185
Hedging effect
Entities with functional currency CHF – –6 323 –17 533 –3 732 –100 –2 840
Entities with functional currency EUR – – –1 434 –174 – –163
Currency Exposure as At 31 December 2011
Balance sheet currency exposure
Entities with functional currency CHF – 13 820 13 919 3 872 100 2 838
Entities with functional currency EUR 6 – 1 335 301 7 373
Hedging effect
Entities with functional currency CHF – –12 595 –13 490 –3 169 –100 –2 211
Entities with functional currency EUR – – –906 –111 – –207
Swiss Life – Annual Report 2012