Annual Report 2012 - Swiss Life

67 Market Consistent Embedded Value (MCEV)
Contents
68 1 Introduction
68 1.1 Basis of Preparation
68 1.2 Covered Business and Non-Covered Business
68 1.3 Definitions
70 2 Summary of MCEV Results
70 2.1 Key Results
71 2.2 MCEV of Covered Business
72 2.3 Value of New Business
73 2.4 Group MCEV – Analysis of Earnings
74 2.5 Covered Business – Analysis of Earnings
77 2.6 Sensitivities
77 2.7 Reconciliation of IFRS Net Asset Value to Group MCEV
79 3 Information by Market Unit
79 3.1 Market Units
80 3.2 Results by Market Unit
86 4 Methodology
86 4.1 MCEV Components for Covered Business
89 4.2 New Business
89 4.3 Asset and Liability Data
90 4.4 Economic Scenario Generator
91 4.5 Dynamic Management Actions and Policyholder Behaviour
91 4.6 Look-Through Principle
92 4.7 Consolidation
92 4.8 Employee Pension Schemes and Share-Based Payment Programmes
93 5 Assumptions
93 5.1 Economic Assumptions
97 5.2 Taxation and Legislation
97 5.3 Operating Assumptions
98 6 Auditor’s Report on Embedded Value
100 7 Glossary and List of Abbreviations
Swiss Life – Annual Report 2012