Annual Report 2012 - Swiss Life

213 Consolidated Financial Statements
For more detailed descriptions of the determination of the fair values of financial instruments refer
to note 3.
No significant transfers were made between level 1 and level 2 of the fair value hierarchy.
As at 31 December 2012, financial assets of CHF 944 million (2011: CHF 975 million) were included
in level 3 of the fair value hierarchy (excluding financial assets for the account and risk of the Swiss Life
Group’s customers). The exposure primarily consists of alternative investments such as hedge funds,
private equity, infrastructure and real estate funds. These investments are valued based on regular
reports from the issuing funds. Fair values are reviewed by a team of in-house investment professionals
and may be adjusted based on their understanding.
Financial assets measured at fair value based on level 3 for the year 2012
In CHF million
Financial assets
for the account
and risk of the
Swiss Life
Group’s
Derivatives Debt securities equity securities customers
At fair value
At fair value
through Available through Available
profit or loss for sale profit or loss for sale
Balance as at 1 January – 187 2 28 758 246
Total gains/losses recognised in profit or loss – 5 1 1 39 53
Total gains/losses recognised in other comprehensive income – – 2 – 13 –
Purchases – – 3 – 93 –
Sales – –37 –3 –1 –142 –231
Transfers out of level 3 – – – – – –
Foreign currency translation differences – –2 0 – –1 –
Balance as at end of period – 154 4 27 759 68
Total gains/losses recognised in profit or loss are presented in
net gains/losses on financial assets – – 1 – 39 –
net gains/losses on financial instruments at fair value through profit or loss – 5 – 1 – 53
Gains/losses recognised in profit or loss for assets held at end of period
are presented in
net gains/losses on financial assets – – 0 – –9 –
net gains/losses on financial instruments at fair value through profit or loss – 5 – 1 – 0
Swiss Life – Annual Report 2012