Market Consistent Embedded Value (MCEV) - Swiss Life - Online ...

Market Consistent Embedded Value55Covered business relates to the operations in:– Switzerland– Germany– France: sub-consolidated– Luxembourg– Liechtenstein– SingaporeThe sum of all market consistent embedded values for themarket units of the covered business forms the totalMCEV for covered business.Non-covered business comprises all other entities of theSwiss Life Group that are valued at the unadjusted IFRSnet asset value on a consolidated level, such as the distributionunit AWD or investment management, financingand holding companies. Non-covered business is addedto the MCEV results from the covered business to formthe Group MCEV.4.8 EMPLOYEE PENSION SCHEMES AND SHARE-BASED PAYMENT PROGRAMMESAllowance is made for gains or losses arising from thedefined benefit pension plans for Swiss Life’s ownemployees. In Switzerland there is a semi-autonomouspension fund with biometric risks covered by an insurancecontract. In other units the major part is covered byinsurance contracts. The remaining part is modelled ascommensurate expenses in the projections.The costs of share-based payment programmes foremployees are not included in the MCEV, other than tothe extent that they are allowed for in the local statutoryaccounts upon which the shareholder net assets arebased. Further information on the costs of share-basedpayment programmes is given in the Group’s IFRS financialstatements.For future MCEV publications, other units will beincluded under covered business as soon as their MCEVis significant.Swiss Life — Financial Statements 2010