Annual Report 2021

22 Insurance Liabilities

In CHF million
	Gross		Ceded		Net
	31.12.2021	31.12.2020	31.12.2021	31.12.2020	31.12.2021	31.12.2020
Claims under non-life insurance contracts	871	918	185	184	686	734
Unearned premiums non-life	42	44	1	1	40	42
Claims under life insurance contracts	6 537	6 569	119	107	6 418	6 462
Future life policyholder benefits	109 669	109 554	144	142	109 525	109 412
Unearned premiums life	70	62	0	0	70	62
Deposits under insurance contracts	13 070	11 629	–	–	13 070	11 629
Total insurance liabilities	130 258	128 776	449	434	129 809	128 342
of which for the account and risk of the Swiss Life Group's customers	10 448	8 399	1	1	10 447	8 398

Unearned premiums

Unearned premiums represent the portion of the premiums written relating to the unexpired terms of coverage.

Claims under life insurance contracts

Claims under life insurance contracts represent the liability for unpaid portions of claims incurred. The liability includes an estimate for claims incurred but not reported (IBNR). The measurement at reporting date is a best estimate of ultimate future claim payments.

Claims under non-life insurance contracts– gross

In CHF million
	2021	2020
Balance as at 1 January	918	896
Claims and claim settlement costs incurred
Reporting period	334	295
Prior reporting periods	–64	–25
Claims and claim settlement costs paid
Reporting period	–139	–116
Prior reporting periods	–141	–130
Foreign currency translation differences	–37	–2
Balance as at end of period	871	918

Claims under non-life insurance contracts represent the liability needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the financial reporting date. The estimated liability includes the amount that will be required for future payments on both claims that have been reported to the insurer and claims relating to insured events that have occurred but have not been reported to the insurer as at the date the liability is estimated. Loss development tables are generally used to make these estimates.

Future life policyholder benefits and claims– gross

In CHF million
	2021	2020
Balance as at 1 January	116 123	113 289
Premiums received	10 063	11 077
Interest credited	1 625	1 684
Claims incurred, benefits paid and surrenders	–10 701	–10 399
Effect of changes in actuarial assumptions and other movements	256	613
Reclassifications	11	–61
Foreign currency translation differences	–1 172	–79
Balance as at end of period	116 206	116 123

For participating contracts where the contribution principle applies to the allocation of the policyholder bonus, future life policy benefit liabilities are determined by using the net-level-premium method on the basis of appropriate mortality and interest rate assumptions.

The valuation of other long-duration contracts is also based on the net-level-premium method with actuarial assumptions as to mortality, persistency, expenses and investment returns including provisions for adverse deviation.

Deposits under insurance contracts– gross

In CHF million
	2021	2020
Balance as at 1 January	11 629	10 696
Deposits received	235	212
Interest credited	55	27
Participating bonuses	4	6
Policy fees and insurance charges	–47	–41
Deposits released for payments on death, surrender and other terminations during the year	–226	–261
Other movements	282	15
Reclassifications	1 672	995
Foreign currency translation differences	–536	–19
Balance as at end of period	13 070	11 629

For investment-type contracts with significant insurance risk, savings premiums collected are reported as deposits (deposit accounting).

Insurance liabilities with and without discretionary participation

In CHF million
	31.12.2021	31.12.2020
Insurance liabilities with discretionary participation	104 565	104 998
Insurance liabilities without discretionary participation	15 245	15 379
Insurance liabilities linked to assets for the account and risk of the Swiss Life Group's customers	10 448	8 399
Total insurance liabilities	130 258	128 776