Annual Report 2022

22 Insurance Liabilities

In CHF million
	Gross		Ceded		Net
	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021
Claims under non-life insurance contracts	873	871	194	185	680	686
Unearned premiums non-life	38	42	1	1	37	40
Claims under life insurance contracts	8 121	6 537	1 795	119	6 326	6 418
Future life policyholder benefits	107 546	109 669	146	144	107 400	109 525
Unearned premiums life	100	70	27	0	72	70
Deposits under insurance contracts	13 233	13 070	–	–	13 233	13 070
Total insurance liabilities	129 911	130 258	2 163	449	127 748	129 809
of which for the account and risk of the Swiss Life Group's customers	11 228	10 448	1	1	11 227	10 447

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
	2022	2021
Balance as at 1 January	871	918
Claims and claim settlement costs incurred
Reporting period	331	334
Prior reporting periods	–3	–64
Claims and claim settlement costs paid
Reporting period	–139	–139
Prior reporting periods	–143	–141
Foreign currency translation differences	–43	–37
Balance as at end of period	873	871

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
	2022	2021
Balance as at 1 January	116 206	116 123
Additions from business combinations	1 618	–
Premiums received	9 503	10 063
Interest credited	1 558	1 625
Claims incurred, benefits paid and surrenders	–11 713	–10 701
Effect of changes in actuarial assumptions and other movements	–408	256
Reclassifications	276	11
Foreign currency translation differences	–1 373	–1 172
Balance as at end of period	115 667	116 206

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
	2022	2021
Balance as at 1 January	13 070	11 629
Deposits received	228	235
Interest credited	22	55
Participating bonuses	3	4
Policy fees and insurance charges	–46	–47
Deposits released for payments on death, surrender and other terminations during the year	–195	–226
Other movements	–335	282
Reclassifications	1 109	1 672
Foreign currency translation differences	–624	–536
Balance as at end of period	13 233	13 070

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
	31.12.2022	31.12.2021
Insurance liabilities with discretionary participation	102 012	104 565
Insurance liabilities without discretionary participation	16 671	15 245
Insurance liabilities linked to assets for the account and risk of the Swiss Life Group's customers	11 228	10 448
Total insurance liabilities	129 911	130 258