Annual Report 2012 - Swiss Life

In CHF million
2012 2011
180 Consolidated Financial Statements
tion is part of the regular review to determine whether the allowance for potential loan losses is warranted.
Management believes that the allowance for loan losses is sufficient. However, management
cannot predict with assurance the impact of future economic circumstances or how the mortgage
and real estate portfolios would be affected by various economic circumstances.
As at 1 July 2008, certain financial assets were reclassified from financial assets available for sale to
loans due to the disappearance of an active market. The financial assets reclassified primarily consist
of corporate debt instruments and debt instruments relating to emerging markets. The fair value as
at 1 July 2008 of the financial assets reclassified amounted to CHF 14 966 million. At the date of
reclassification the effective interest rate ranged from 0.8% to 9.7%, and the amount of cash flows
expected to be recovered was estimated at CHF 32 658 million. In 2008, unrealised losses of
CHF 740 million were recognised in equity in respect of these assets.
Further details with regard to the financial assets reclassified are as follows:
DEBT Securities previously classified as available for sale
Carrying amount as at 31 December 6 403 7 945
Fair value as at 31 December 7 647 8 680
Gains (+)/losses (–) that would have been recognised in other comprehensive income if the assets had not been reclassified
(excluding adjustments for income tax and policyholder participation) 679 –58
Gains (+)/losses (–) recognised in profit or loss (including impairment) –46 –19
Interest income 423 490
14 Financial Assets Held to Maturity
In CHF million Allowance for impairment Cost/amortised cost
Gross amount losses (carrying amount)
Notes 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011
Debt securities – 5 046 – – – 5 046
Other – – – – – –
Total financial assets held to maturity 33 – 5 046 – – – 5 046
Financial assets held to maturity of CHF 4.1 billion were sold in 2012 due to the unstable situation
in the euro zone. The remaining financial assets held to maturity of CHF 1.3 billion were reclassified
to financial assets available for sale.
Swiss Life – Annual Report 2012