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

Market Consistent Embedded Value412.3.2 VALUE OF NEW BUSINESS — ANALYSIS OF CHANGEValue of New Business – Analysis of ChangeCHF million200109–12209160120123–97721480400VNB2009EconomicvariancesVolume, businessmix and pricingvariancesExpensevariancesOthervariancesFXvariancesVNB2010Amounts in CHF million NBM Change in NBMPVNBP VNB (% PVNBP) (% PVNBP)VALUE OF NEW BUSINESS 2009 14 390 123 0.9%Economic variances –450 –97 -0.7%Volume, business mix and pricing variances 967 72 0.5%Expense variances –2 14 0.1%Other variances 741 109 0.7%FX variances –1 039 –12 0.0%VALUE OF NEW BUSINESS 2010 14 607 209 1.4%New business values as well as new business margins aresignificantly higher than in the previous year. Main driversare pricing measures, changes in business mix, expensereductions, experience driven changes to demographicassumptions, and changes to the profit sharing approach.Negative effects resulted from capital market conditionsand currency effects, notably the weakened euro.2.4 GROUP MCEV — ANALYSIS OF EARNINGSThe table below shows the change in Group MCEV splitby components from 31 December 2009 to 31 December2010.In CHF million Covered business Non-coveredMCEV business IFRS Total Group MCEV Total Group MCEV2010 2009OPENING GROUP MCEV 4 132 2 745 6 877 6 321Opening adjustments –139 64 –75 –161ADJUSTED OPENING GROUP MCEV 3 993 2 809 6 803 6 161Operating MCEV earnings 2 301 52 2 353 120Non-operating MCEV earnings –904 –25 –929 531TOTAL MCEV EARNINGS 1 397 27 1 424 651Other movements in IFRS net equity n/a 1 1 43Closing adjustments – 431 –202 –633 22CLOSING GROUP MCEV 4 959 2 636 7 595 6 8771 n/a: not applicableSwiss Life — Financial Statements 2010