Annual Report 2012 - Swiss Life

206 Consolidated Financial Statements
Amounts recognised directly in equity for the year 2011
In CHF million
Foreign currency
translation
differences Gains/losses recognised directly in equity Total
Financial assets Cash flow
Notes available for sale hedges Other Total
Net balance as at 1 January –762 369 2 –162 209 –553
Net other comprehensive income –71 1 154 143 38 1 335 1 264
Net balance as at end of period –833 1 523 145 –124 1 544 711
Details of net other comprehensive income
Gains/losses arising during the period –80 3 360 – – 3 360 3 280
Hedging gains/losses arising during the period 9 9 – 175 – 175 184
Revaluation surplus on investment property 17 – – – 16 16 16
Transfer in respect of assets classified as held for sale – 0 – 0 – –
Gains/losses transferred to the income statement 8, 9 – –200 –2 109 –93 –93
Effects of
policyholder participation – –1 655 42 –25 –1 638 –1 638
shadow accounting – –70 –27 –44 –141 –141
income tax 0 –281 –45 –17 –343 –343
foreign currency translation differences – 0 0 –1 –1 –1
Net other comprehensive income before non-controlling interests –71 1 154 143 38 1 335 1 264
Non-controlling interests 0 0 0 0 0 0
Net other comprehensive income –71 1 154 143 38 1 335 1 264
The gains/losses transferred to the income statement of CHF 170 million in 2012 (2011: CHF 109 million)
shown in “Other” relate to financial assets reclassified to loans in 2008.
Retained earnings
Retained earnings comprise accumulated retained earnings of the Group entities which have not
been distributed to the shareholders. The distribution of profit is subject to restrictions in the various
jurisdictions where the Group entities are located.
The Group’s insurance subsidiaries are subject to regulatory restrictions on the amount of dividends,
cash loans and advances which can be remitted to the Group. Certain foreign jurisdictions have
restrictions that allow the payment of dividends but may cause a delay in their remittance. Dividends
payable are not accrued until they have been ratified at the General Meeting.
28 Capital Management
The Group’s objectives when managing capital are as follows: to comply with the regulatory capital
requirements, to define and manage economic capital and to fulfill the company’s target on rating
capital. The company also actively manages the composition and quality of the capital to continuously
optimise its capital structure and interest cover ratio.
Swiss Life – Annual Report 2012