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Annual Report 2023
Annual Report 2023
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13 Intangible Assets

Intangible assets for the year 2023

In CHF million
    Notes   Goodwill   Customer relationships   Computer software   Brands and other   Total
Balance as at 1 January       1 568   96   40   10   1 714
Additions       –   0   20   0   20
Additions from internal development       –   –   6   –   6
Additions from business combinations   24    53   6   3   0   62
Disposals   24    –   –   0   –   0
Amortisation       –   –17   –12   –1   –30
Impairment losses       –   –   –   –2   –2
Foreign currency translation differences       –60   –6   –3   0   –69
Balance as at end of period       1 560   80   54   7   1 701
                         
Cost       1 860   274   240   26   2 399
Accumulated amortisation and impairment       –299   –194   –186   –18   –698
Total intangible assets as at end of period       1 560   80   54   7   1 701

Intangible assets for the year 2022

In CHF million
    Notes   Goodwill   Customer relationships   Computer software   Brands and other   Total
Balance as at 1 January       1 575   123   35   25   1 758
Additions       –   0   21   2   23
Additions from internal development       –   –   0   –   0
Additions from business combinations   24    52   17   0   0   71
Disposals   24    –3   0   –3   –16   –22
Amortisation       –   –36   –11   –1   –49
Foreign currency translation differences       –56   –8   –1   0   –66
Balance as at end of period       1 568   96   40   10   1 714
                         
Cost       2 020   300   231   30   2 581
Accumulated amortisation and impairment       –452   –204   –191   –21   –867
Total intangible assets as at end of period       1 568   96   40   10   1 714
Goodwill

Goodwill represents the excess of the fair value of the consideration transferred and the amount of any non-controlling interest recognised, if applicable, over the fair value of the assets and liabilities recognised at the date of acquisition. Goodwill includes amounts relating to both the Swiss Life Group’s interest and the non-controlling interest in the business acquired in the case where non-controlling interest is measured at fair value. Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on associates is included in the carrying amount of the investment.

In September 2023, the Swiss Life Group acquired two financial advisory businesses in the United Kingdom. The acquisitions resulted in goodwill of CHF 8 million in the segment “International”.

In January 2023, goodwill of CHF 41 million was recognised in the segment “Germany” in relation to the acquisition of fb research GmbH, based in Hanover, Germany. Due to the acquisition of a financial advisory business in Slovakia in the first half of 2023, goodwill of CHF 4 million was recognised in the segment “International”.

In July 2022, Swiss Life acquired elipsLife, an insurance company for institutional clients headquartered in Liechtenstein. The acquisition resulted in goodwill of CHF 51 million in the segment “International”.

The calculations relating to the recoverable amounts, which have been determined on a value-in-use basis, use cash flow projections based on financial budgets approved by management. The projection covers a three-year period. The calculations are based on present values that use a single set of estimated cash flows and a single discount rate.

Goodwill

In CHF million
    Switzerland   France   Germany   International   Asset Managers
    31.12.2023   31.12.2022   31.12.2023   31.12.2022   31.12.2023   31.12.2022   31.12.2023   31.12.2022   31.12.2023   31.12.2022
Net carrying amount of goodwill   152   152   294   294   413   399   381   379   320   344
Impairment   –   –   –   –   –   –   –   –   –   –
                                         
Key assumptions used for impairment tests
Eternal growth rate   1.5%   1.0%   1.6%   1.6%   2.0%   2.0%   2.0%   2.0%   1.9%   2.0%
Discount rate   7.4%   8.3%   10.5%   10.8%   10.8%   10.4%   10.0%   9.9%   7.8%   8.6%

The discount rates used for the value-in-use calculations are based on weighted average cost of capital (WACC) derived from the Capital Asset Pricing Model. Peer group comparisons and the beta of the Swiss Life Group are used for determining the beta used in the calculation. Capital structure reflected in the WACC calculation is in line with the target capital structure of the Swiss Life Group.

The growth rates reflect the long-term inflation expectations of the International Monetary Fund.

Customer relationships

As at 31 December 2023, the “France” segment comprises customer relationships of CHF 1 million (31.12.2022: CHF 2 million), the “Germany” segment CHF 5 million (31.12.2022: nil) and the “Asset Managers” segment CHF 42 million (31.12.2022: CHF 58 million). The “International” segment comprises customer relationships of CHF 32 million (31.12.2022: CHF 36 million). In relation to the acquisition of fb research GmbH, based in Hanover, Germany, in 2023, customer relationships of CHF 6 million were recognised. Customer relationships are amortised over their useful lives. Customer relationships were included in the impairment test of the respective cash-generating unit.

Brands and other

As at 31 December 2023, “Brands and other” comprises the brands Mayfair and Beos. Brands are amortised over their useful lives.