Annual Report 2023

16 Insurance and Investment Contracts with Discretionary Participation

Insurance contracts and investment contracts with DPF issued presented in the consolidated balance sheet

In CHF million
	Assets		Liabilities
	31.12.2023	31.12.2022	31.12.2023	31.12.2022
VFA life	4	5	–155 676	–152 467
of which prepaid acquisition costs and premiums	4	5	0	3
BBA life	–	0	–1 148	–995
of which prepaid acquisition costs and premiums	–	–	–	–
PAA life	9	–	–2 213	–1 882
of which prepaid acquisition costs and premiums	–	–	–1	–71
PAA health and protection	–	–	–198	–154
of which prepaid acquisition costs and premiums	–	–	133	124
PAA non-life	–	–	–595	–617
of which prepaid acquisition costs and premiums	–	–	–	–
Total	13	5	–159 830	–156 115
of which prepaid acquisition costs and premiums	4	5	132	57

Reinsurance contracts held presented in the consolidated balance sheet

In CHF million
	Assets		Liabilities
	31.12.2023	31.12.2022	31.12.2023	31.12.2022
BBA	623	721	–17	–12
PAA	1 456	971	–1	–2
Total	2 079	1 692	–18	–14

Contractual service margin

The following table shows the contractual service margin of insurance contracts and investment contracts with DPF broken down by measurement model.

Contractual service margin of insurance contracts and investment contracts with DPF issued

In CHF million
	31.12.2023	31.12.2022
VFA life	14 753	15 817
BBA life	650	567
Total	15 402	16 385

The following tables illustrate when the Group expects to recognise the remaining CSM in profit or loss.

In CHF million
	1–5 years	5–10 years	10–15 years	15–20 years	20–30 years	More than 30 years	Total

For the year 2023
VFA life	4 536	3 277	2 349	1 681	2 034	875	14 753
BBA life	212	146	107	78	80	26	650
Reinsurance contracts held	–32	–16	–9	–6	–5	–1	–69
Total	4 716	3 407	2 448	1 753	2 109	900	15 333



For the year 2022
VFA life	4 267	3 384	2 565	1 950	2 552	1 099	15 817
BBA life	179	127	93	70	74	24	567
Reinsurance contracts held	–42	–21	–12	–7	–5	–1	–87
Total	4 405	3 490	2 647	2 013	2 621	1 122	16 297

The following table shows total net finance income/expenses from insurance and investment contracts with DPF and reinsurance contracts held. These amounts are primarily recognised in relation to the fair value return of underlying items of the VFA contracts.

In CHF million
	Net finance income/expenses from insurance contracts and investment contracts with DPF		Net finance income/expenses from reinsurance contracts held
	2023	2022	2023	2022
Recognised in profit or loss	–4 757	–1 564	38	4
Recognised in OCI	–5 272	23 619	74	–85
Total	–10 029	22 055	112	–82

The following reconciliations show how the net carrying amounts of insurance and reinsurance contracts changed during the year as a result of cash flows and amounts recognised in the statement of profit or loss and other comprehensive income. For each measurement model, the Group presents a table that separately analyses movements in the liabilities for remaining coverage and movements in the liabilities for incurred claims and reconciles these movements to the line items in the consolidated statement of income and the consolidated statement of other comprehensive income. A second reconciliation is presented for contracts not measured under the PAA, which separately analyses changes in the estimates of the present value of future cash flows, the risk adjustment for non-financial risk and the CSM.

Life insurance contracts and investment contracts with DPF issued under VFA – analysis by measurement component for the year 2023

In CHF million
	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	CSM: Contracts under modified retrospective approach	CSM: Contracts under FV approach	CSM: Other contracts	Total
Opening insurance contract assets	0	–	–	–	–	0
Opening insurance contract liabilities	–136 363	–290	–15 075	–	–742	–152 470
Net opening balance	–136 363	–290	–15 075	–	–742	–152 470
Cash flows incurred before or at initial recognition	5	–	–	–	–	5
Changes that relate to current services
CSM recognised for services provided	–	–	1 164	–	67	1 231
Change in risk adjustment for non-financial risk for risk expired	–	18	–	–	–	18
Experience adjustments	–	–	–	–	–	–
Changes that relate to future services
Contracts initially recognised in the year	616	–15	–	–	–601	–
Changes in estimates that adjust the CSM	–9 770	2	8 905	–	863	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	0	–	–	–	–	0
Changes that relate to past services
Adjustments to liabilities for incurred claims	–69	–	–	–	–	–69
Insurance service result	–9 223	4	10 068	–	331	1 180
Net finance income/expenses from insurance contracts	2	–	–8 521	–	–1 101	–9 620
Foreign currency translation differences	2 999	8	246	–	43	3 296
Total changes in the statement of profit or loss and OCI	–6 222	12	1 793	–	–727	–5 145
Cash in- and outflows for the period	1 934	–	–	–	–	1 934
Net closing balance	–140 646	–278	–13 283	–	–1 470	–155 676
Closing insurance contract assets	0	–	–	–	–	0
Closing insurance contract liabilities	–140 646	–278	–13 283	–	–1 470	–155 676

Life insurance contracts and investment contracts with DPF issued under VFA – analysis by measurement component for the year 2022

In CHF million
	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	CSM: Contracts under modified retrospective approach	CSM: Contracts under FV approach	CSM: Other contracts	Total
Opening insurance contract assets	0	–	–	–	–	0
Opening insurance contract liabilities	–160 672	–276	–16 965	–	–	–177 913
Net opening balance	–160 672	–276	–16 965	–	–	–177 912
Cash flows incurred before or at initial recognition	3	–	–	–	–	3
Changes that relate to current services
CSM recognised for services provided	–	–	1 124	–	31	1 155
Change in risk adjustment for non-financial risk for risk expired	–	14	–	–	–	14
Changes that relate to future services
Contracts initially recognised in the year	554	–15	–	–	–539	–
Changes in estimates that adjust the CSM	21 362	–19	–21 298	–	–45	–
Changes that relate to past services
Adjustments to liabilities for incurred claims	–24	–	–	–	–	–24
Insurance service result	21 893	–21	–20 174	–	–553	1 144
Net finance income/expenses from insurance contracts	3	–	21 866	–	–196	21 674
Foreign currency translation differences	2 592	7	197	–	7	2 804
Total changes in the statement of profit or loss and OCI	24 488	–14	1 889	–	–742	25 622
Cash in- and outflows for the period	–183	–	–	–	–	–183
Net closing balance	–136 363	–290	–15 075	–	–742	–152 470
Closing insurance contract assets	0	–	–	–	–	0
Closing insurance contract liabilities	–136 363	–290	–15 075	–	–742	–152 470

Life insurance contracts and investment contracts with DPF issued under VFA – analysis by remaining coverage and incurred claims for the year 2023

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims	Total
	Excluding loss component	Loss component
Opening insurance contract assets	0	–	–	0
Opening insurance contract liabilities	–151 254	–	–1 216	–152 470
Net opening balance	–151 254	–	–1 216	–152 470
Cash flows incurred before or at initial recognition	5	–	–	5
Changes in the statement of profit or loss and OCI
Insurance revenue
Contracts under the modified retrospective approach	4 244	–	–	4 244
Other contracts	516	–	–	516
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–3 228	–3 228
Amortisation of insurance acquisition cash flows	–283	–	–	–283
Losses and reversal of losses on onerous contracts	–	0	–	0
Adjustments to liabilities for incurred claims	–	–	–69	–69
Insurance service result	4 477	0	–3 297	1 180
Net finance income/expenses from insurance contracts	–9 620	–	–	–9 620
Foreign currency translation differences	3 282	0	14	3 296
Total changes in the statement of profit or loss and OCI	–1 862	0	–3 283	–5 145
Investment components	12 669	–	–12 669	–
Cash flows
Premiums received	–14 442	–	–	–14 442
Claims and other insurance service expenses paid	–	–	15 821	15 821
Insurance acquisition cash flows	555	–	–	555
Total cash flows	–13 888	–	15 822	1 934
Net closing balance	–154 329	0	–1 347	–155 676
Closing insurance contract assets	0	–	–	0
Closing insurance contract liabilities	–154 329	0	–1 347	–155 676

Life insurance contracts and investment contracts with DPF issued under VFA – analysis by remaining coverage and incurred claims for the year 2022

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims	Total
	Excluding loss component	Loss component
Opening insurance contract assets	–	–	0	0
Opening insurance contract liabilities	–176 646	–	–1 266	–177 913
Net opening balance	–176 646	–	–1 266	–177 912
Cash flows incurred before or at initial recognition	3	–	–	3
Changes in the statement of profit or loss and OCI
Insurance revenue
Contracts under the modified retrospective approach	4 556	–	–	4 556
Other contracts	89	–	–	89
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–3 207	–3 207
Amortisation of insurance acquisition cash flows	–269	–	–	–269
Adjustments to liabilities for incurred claims	–	–	–24	–24
Insurance service result	4 375	–	–3 231	1 144
Net finance income/expenses from insurance contracts	21 674	–	–	21 674
Foreign currency translation differences	2 794	–	9	2 804
Total changes in the statement of profit or loss and OCI	28 843	–	–3 222	25 622
Investment components	12 132	–	–12 132	–
Cash flows
Premiums received	–16 146	–	–	–16 146
Claims and other insurance service expenses paid	–	–	15 403	15 403
Insurance acquisition cash flows	560	–	–	560
Total cash flows	–15 586	–	15 403	–183
Net closing balance	–151 254	–	–1 216	–152 470
Closing insurance contract assets	0	–	–	0
Closing insurance contract liabilities	–151 254	–	–1 216	–152 470

Life insurance contracts issued under BBA – analysis by measurement component for the year 2023

In CHF million
	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	CSM: Contracts under modified retrospective approach	CSM: Contracts under FV approach	CSM: Other contracts	Total
Opening insurance contract assets	0	–	–	–	–	0
Opening insurance contract liabilities	–395	–33	–394	–	–173	–995
Net opening balance	–395	–33	–394	–	–173	–995
Additions from business combinations	–	–	–	–	–	–
Changes that relate to current services
CSM recognised for services provided	–	–	42	–	11	53
Change in risk adjustment for non-financial risk for risk expired	–	2	–	–	–	2
Experience adjustments	71	–	–	–	–	71
Changes that relate to future services
Contracts initially recognised in the year	42	–3	–	–	–40	–1
Changes in estimates that adjust the CSM	118	–1	–96	–	–21	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	–2	0	–	–	–	–2
Changes that relate to past services
Adjustments to liabilities for incurred claims	–36	0	–	–	–	–36
Insurance service result	193	–2	–55	–	–49	87
Net finance income/expenses from insurance contracts	–64	–3	–10	–	–2	–79
Foreign currency translation differences	18	2	21	–	12	53
Total changes in the statement of profit or loss and OCI	146	–3	–44	–	–39	61
Cash in- and outflows for the period	–213	–	–	–	–	–213
Net closing balance	–461	–36	–439	–	–211	–1 148
Closing insurance contract assets	–	–	–	–	–	–
Closing insurance contract liabilities	–461	–36	–439	–	–211	–1 148

Life insurance contracts issued under BBA – analysis by measurement component for the year 2022

In CHF million
	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	CSM: Contracts under modified retrospective approach	CSM: Contracts under FV approach	CSM: Other contracts	Total
Opening insurance contract assets	595	–39	–396	–	–89	71
Opening insurance contract liabilities	–419	–3	–75	–	0	–498
Net opening balance	176	–42	–471	–	–89	–427
Additions from business combinations	–511	–3	–	–	–17	–532
Changes that relate to current services
CSM recognised for services provided	–	–	40	–	9	49
Change in risk adjustment for non-financial risk for risk expired	–	3	–	–	–	3
Experience adjustments	54	–	–	–	–	54
Changes that relate to future services
Contracts initially recognised in the year	106	–18	–	–	–88	–1
Changes in estimates that adjust the CSM	–17	–1	13	–	5	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	–7	0	–	–	–	–7
Changes that relate to past services
Adjustments to liabilities for incurred claims	–42	–	–	–	–	–42
Insurance service result	93	–16	53	–	–75	56
Net finance income/expenses from insurance contracts	–55	25	–12	–	–1	–42
Foreign currency translation differences	–26	2	36	–	9	22
Total changes in the statement of profit or loss and OCI	13	12	77	–	–67	36
Cash in- and outflows for the period	–72	–	–	–	–	–72
Net closing balance	–395	–33	–394	–	–173	–995
Closing insurance contract assets	0	–	–	–	–	0
Closing insurance contract liabilities	–395	–33	–394	–	–173	–995

Life insurance contracts issued under BBA – analysis by remaining coverage and incurred claims for the year 2023

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims	Total
	Excluding loss component	Loss component
Opening insurance contract assets	0	–	–	0
Opening insurance contract liabilities	–709	–14	–273	–995
Net opening balance	–709	–14	–273	–995
Changes in the statement of profit or loss and OCI
Insurance revenue
Contracts under the modified retrospective approach	375	–	–	375
Other contracts	403	–	–	403
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–615	–615
Amortisation of insurance acquisition cash flows	–37	–	–	–37
Losses and reversal of losses on onerous contracts	–	–3	–	–3
Adjustments to liabilities for incurred claims	–	–	–36	–36
Insurance service result	741	–3	–651	87
Net finance income/expenses from insurance contracts	–74	0	–5	–79
Foreign currency translation differences	38	1	14	53
Total changes in the statement of profit or loss and OCI	706	–2	–643	61
Investment components	12	–	–12	–
Cash flows
Premiums received	–923	–	–	–923
Claims and other insurance service expenses paid	–	–	655	655
Insurance acquisition cash flows	56	–	–	56
Total cash flows	–868	–	655	–213
Net closing balance	–858	–16	–274	–1 148
Closing insurance contract assets	–	–	–	–
Closing insurance contract liabilities	–858	–16	–274	–1 148

Life insurance contracts issued under BBA – analysis by remaining coverage and incurred claims for the year 2022

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims	Total
	Excluding loss component	Loss component
Opening insurance contract assets	253	–6	–175	71
Opening insurance contract liabilities	–379	0	–119	–498
Net opening balance	–126	–6	–295	–427
Additions from business combinations	–532	–	–	–532
Changes in the statement of profit or loss and OCI
Insurance revenue
Contracts under the modified retrospective approach	508	–	–	508
Other contracts	231	–	–	231
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–591	–591
Amortisation of insurance acquisition cash flows	–43	–	–	–43
Losses and reversal of losses on onerous contracts	–	–8	–	–8
Adjustments to liabilities for incurred claims	–	–	–42	–42
Insurance service result	697	–8	–633	56
Net finance income/expenses from insurance contracts	–55	0	13	–42
Foreign currency translation differences	–9	0	31	22
Total changes in the statement of profit or loss and OCI	633	–8	–590	36
Investment components	10	–	–10	–
Cash flows
Premiums received	–737	–	–	–737
Claims and other insurance service expenses paid	–	–	621	621
Insurance acquisition cash flows	43	–	–	43
Total cash flows	–694	–	621	–72
Net closing balance	–709	–14	–273	–995
Closing insurance contract assets	0	–	–	0
Closing insurance contract liabilities	–709	–14	–273	–995

Life insurance contracts issued under PAA – analysis by remaining coverage and incurred claims for the year 2023

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims		Total
	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk
Opening insurance contract assets	–	–	–	–	–
Opening insurance contract liabilities	–21	–	–1 786	–4	–1 811
Net opening balance	–21	–	–1 786	–4	–1 811
Cash flows incurred before or at initial recognition	–36	–	–	–	–36
Additions from business combinations	–	–	–	–	–
Changes in the statement of profit or loss and OCI
Insurance revenue	1 341	–	–	–	1 341
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–1 134	–2	–1 136
Amortisation of insurance acquisition cash flows	–62	–	–	–	–62
Adjustments to liabilities for incurred claims	–	–	–36	0	–36
Insurance service result	1 280	–	–1 170	–1	108
Net finance income/expenses from insurance contracts	–	–	–113	0	–113
Foreign currency translation differences	–1	–	110	0	109
Total changes in the statement of profit or loss and OCI	1 279	–	–1 173	–1	104
Investment components	–	–	–	–	–
Cash flows
Premiums received	–1 174	–	–	–	–1 174
Claims and other insurance service expenses paid	–	–	653	–	653
Insurance acquisition cash flows	61	–	–	–	61
Total cash flows	–1 113	–	653	–	–459
Net closing balance	109	–	–2 307	–5	–2 203
Closing insurance contract assets	35	–	–26	–	9
Closing insurance contract liabilities	74	–	–2 281	–5	–2 212

Life insurance contracts issued under PAA – analysis by remaining coverage and incurred claims for the year 2022

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims		Total
	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk
Opening insurance contract assets	–	–	–	–	–
Opening insurance contract liabilities	20	–	–1 034	–	–1 014
Net opening balance	20	–	–1 034	–	–1 014
Cash flows incurred before or at initial recognition	–18	–	–	–	–18
Additions from business combinations	–282	–	–797	–	–1 079
Changes in the statement of profit or loss and OCI
Insurance revenue	786	–	–	–	786
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–613	–	–613
Amortisation of insurance acquisition cash flows	–13	–	–	–	–13
Adjustments to liabilities for incurred claims	–	–	45	–4	41
Insurance service result	773	–	–568	–4	202
Net finance income/expenses from insurance contracts	–	–	143	–	143
Foreign currency translation differences	–1	–	59	0	59
Total changes in the statement of profit or loss and OCI	772	–	–365	–4	403
Cash flows
Premiums received	–527	–	–	–	–527
Claims and other insurance service expenses paid	–	–	410	–	410
Insurance acquisition cash flows	13	–	–	–	13
Total cash flows	–514	–	410	–	–104
Net closing balance	–21	–	–1 786	–4	–1 811
Closing insurance contract assets	–	–	–	–	–
Closing insurance contract liabilities	–21	–	–1 786	–4	–1 811

Health and protection insurance contracts issued under PAA – analysis by remaining coverage and incurred claims for the year 2023

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims		Total
	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk
Opening insurance contract assets	–	–	–	–	–
Opening insurance contract liabilities	203	–17	–456	–8	–278
Net opening balance	203	–17	–456	–8	–278
Cash flows incurred before or at initial recognition	72	–	–	–	72
Changes in the statement of profit or loss and OCI
Insurance revenue	1 547	–	–	–	1 547
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–1 389	0	–1 389
Amortisation of insurance acquisition cash flows	–186	–	–	–	–186
Losses and reversal of losses on onerous contracts	–	5	–	–	5
Adjustments to liabilities for incurred claims	–	–	–13	–1	–13
Insurance service result	1 361	5	–1 401	–1	–35
Net finance income/expenses from insurance contracts	–	–	–27	0	–27
Foreign currency translation differences	–13	1	32	1	20
Total changes in the statement of profit or loss and OCI	1 348	6	–1 396	0	–43
Investment components	–	–	–	–	–
Cash flows
Premiums received	–1 522	–	–	–	–1 522
Claims and other insurance service expenses paid	–	–	1 326	–	1 326
Insurance acquisition cash flows	114	–	–	–	114
Total cash flows	–1 409	–	1 326	–	–83
Net closing balance	215	–10	–527	–9	–331
Closing insurance contract assets	–	–	–	–	–
Closing insurance contract liabilities	215	–10	–527	–9	–331

Health and protection insurance contracts issued under PAA – analysis by remaining coverage and incurred claims for the year 2022

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims		Total
	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk
Opening insurance contract assets	–	–	–	–	–
Opening insurance contract liabilities	190	–41	–559	–9	–418
Net opening balance	190	–41	–559	–9	–418
Cash flows incurred before or at initial recognition	68	–	–	–	68
Changes in the statement of profit or loss and OCI
Insurance revenue	1 468	–	–	–	1 468
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–1 307	0	–1 307
Amortisation of insurance acquisition cash flows	–187	–	–	–	–187
Losses and reversal of losses on onerous contracts	–	23	–	–	23
Adjustments to liabilities for incurred claims	–	–	21	0	21
Insurance service result	1 282	23	–1 286	0	18
Net finance income/expenses from insurance contracts	–	–	44	1	45
Foreign currency translation differences	–10	2	26	0	18
Total changes in the statement of profit or loss and OCI	1 272	24	–1 217	1	80
Cash flows
Premiums received	–1 446	–	–	–	–1 446
Claims and other insurance service expenses paid	–	–	1 319	–	1 319
Insurance acquisition cash flows	119	–	–	–	119
Total cash flows	–1 327	–	1 319	–	–8
Net closing balance	203	–17	–456	–8	–278
Closing insurance contract assets	–	–	–	–	–
Closing insurance contract liabilities	203	–17	–456	–8	–278

Non-life insurance contracts issued under PAA – analysis by remaining coverage and incurred claims for the year 2023

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims		Total
	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk
Opening insurance contract assets	–	–	–	–	–
Opening insurance contract liabilities	–1	–	–610	–6	–617
Net opening balance	–1	–	–610	–6	–617
Cash flows incurred before or at initial recognition	–	–	–	–	–
Changes in the statement of profit or loss and OCI
Insurance revenue	370	–	–	–	370
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–276	0	–276
Amortisation of insurance acquisition cash flows	–54	–	–	–	–54
Losses and reversal of losses on onerous contracts	–	–	–	–	–
Adjustments to liabilities for incurred claims	–	–	–24	0	–25
Insurance service result	315	–	–301	0	14
Net finance income/expenses from insurance contracts	–	–	–31	0	–32
Foreign currency translation differences	0	–	37	0	37
Total changes in the statement of profit or loss and OCI	315	–	–295	0	20
Investment components	–	–	–	–	–
Cash flows
Premiums received	–369	–	–	–	–369
Claims and other insurance service expenses paid	–	–	316	–	316
Insurance acquisition cash flows	54	–	–	–	54
Total cash flows	–315	–	316	–	1
Net closing balance	0	–	–589	–6	–595
Closing insurance contract assets	–	–	–	–	–
Closing insurance contract liabilities	0	–	–589	–6	–595

Non-life insurance contracts issued under PAA – analysis by remaining coverage and incurred claims for the year 2022

In CHF million
	Liabilities for remaining coverage		Liabilities for incurred claims		Total
	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk
Opening insurance contract assets	–	–	–	–	–
Opening insurance contract liabilities	–7	–8	–719	–5	–738
Net opening balance	–7	–8	–719	–5	–738
Cash flows incurred before or at initial recognition	–	–	–	–	–
Changes in the statement of profit or loss and OCI
Insurance revenue	379	–	–	–	379
Insurance service expenses
Incurred claims and other insurance service expenses	–	–	–285	0	–284
Amortisation of insurance acquisition cash flows	–60	–	–	–	–60
Losses and reversal of losses on onerous contracts	–	8	–	–	8
Adjustments to liabilities for incurred claims	–	–	–32	–2	–34
Insurance service result	320	8	–317	–2	9
Net finance income/expenses from insurance contracts	–	–	111	1	112
Foreign currency translation differences	0	0	33	0	34
Total changes in the statement of profit or loss and OCI	320	8	–172	–1	155
Investment components	–	–	–	–	–
Cash flows
Premiums received	–471	–	–	–	–471
Claims and other insurance service expenses paid	–	–	280	–	280
Insurance acquisition cash flows	157	–	–	–	157
Total cash flows	–314	–	280	–	–33
Net closing balance	–1	–	–610	–6	–617
Closing insurance contract assets	–	–	–	–	–
Closing insurance contract liabilities	–1	–	–610	–6	–617

The table below illustrates how estimates of cumulative claims for the Group’s non-life business have developed over time for each accident year and reconciles the cumulative claims to the amount included in the consolidated balance sheet. Balances have been translated at the exchange rates prevailing at the reporting date.

Development of claims under non-life insurance contracts

In CHF million
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total

Estimates of undiscounted cumulative claims gross of reinsurance
At end of accident year	342	296	267	297	331	304	295	321	227	203	n/a
One year later	346	322	331	317	352	369	298	270	218	-	n/a
Two years later	309	322	276	282	325	306	211	205	-	-	n/a
Three years later	324	291	259	269	279	229	186	-	-	-	n/a
Four years later	296	273	255	241	219	205	-	-	-	-	n/a
Five years later	279	266	228	193	198	-	-	-	-	-	n/a
Six years later	271	227	185	173	-	-	-	-	-	-	n/a
Seven years later	238	184	162	-	-	-	-	-	-	-	n/a
Eight years later	187	187	-	-	-	-	-	-	-	-	n/a
Nine years later	182	-	-	-	-	-	-	-	-	-	n/a
Cumulative gross claims paid	–164	–160	–144	–147	–166	–170	–148	–158	–159	–79	n/a
Gross liabilities – for the current and 9 previous years	18	27	18	26	32	35	38	46	59	124	422
Gross liabilities – for prior years beyond 10 years											225
Effect of discounting											–52
Gross liabilities for incurred claims											595

Reinsurance contracts held under BBA – analysis by measurement component for the year 2023

In CHF million
	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	CSM: Contracts under modified retrospective approach	CSM: Contracts under FV approach	CSM: Other contracts	Total
Opening reinsurance contracts held – assets	668	3	28	–	21	721
Opening reinsurance contracts held – liabilities	–50	0	38	–	–	–12
Net opening balance	618	3	66	–	21	708
Cash flows incurred before or at initial recognition	–	–	–	–	–	–
Additions from business combinations	–	–	–	–	–	–
Changes that relate to current services
CSM recognised for services provided	–	–	–9	–	–4	–13
Change in risk adjustment for non-financial risk for risk expired	–	0	–	–	–	0
Experience adjustments	–35	–	–	–	–	–35
Changes that relate to future services
Contracts initially recognised in the year	–4	0	–	–	4	–
Changes in estimates that adjust the CSM	7	0	6	–	–13	–
Changes in losses and reversal of ceded losses	4	–	–	–	–	4
Changes that relate to past services
Changes to incurred claims component	–16	–	–	–	–	–16
Net expenses from reinsurance contracts	–43	0	–3	–	–14	–60
Net finance income/expenses from reinsurance contracts	32	0	2	–	0	35
Effect of changes in non-performance risk of reinsurers	0	–	–	–	–	0
Foreign currency translation differences	–22	0	–4	–	–1	–27
Total changes in the statement of profit or loss and OCI	–34	0	–4	–	–14	–52
Cash flows
Cash in- and outflows for the period	–50	–	–	–	–	–50
Net closing balance	534	3	62	–	7	606
Closing reinsurance contracts held – assets	590	2	25	–	5	623
Closing reinsurance contracts held – liabilities	–56	1	37	–	2	–17

Reinsurance contracts held under BBA – analysis by measurement component for the year 2022

In CHF million
	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	CSM: Contracts under modified retrospective approach	CSM: Contracts under FV approach	CSM: Other contracts	Total
Opening reinsurance contracts held – assets	–3	1	35	–	–	32
Opening reinsurance contracts held – liabilities	–97	0	60	–	–	–36
Net opening balance	–100	1	95	–	–	–4
Additions from business combinations	505	3	–	–	17	525
Changes that relate to current services
CSM recognised for services provided	–	–	–10	–	–5	–15
Change in risk adjustment for non-financial risk for risk expired	–	0	–	–	–	0
Experience adjustments	1	–	–	–	–	1
Changes that relate to future services
Contracts initially recognised in the year	2	0	–	–	2	4
Changes in estimates that adjust the CSM	13	0	–20	–	7	–
Changes that relate to past services
Changes to incurred claims component	–34	–	–	–	–	–34
Net expenses from reinsurance contracts	–17	–1	–29	–	5	–41
Net finance income/expenses from reinsurance contracts	–10	0	3	–	0	–7
Effect of changes in non-performance risk of reinsurers	0	–	–	–	–	0
Foreign currency translation differences	–4	0	–4	–	0	–9
Total changes in the statement of profit or loss and OCI	–32	–1	–29	–	5	–57
Cash flows
Cash in- and outflows for the period	245	–	–	–	–	245
Net closing balance	618	3	66	–	21	708
Closing reinsurance contracts held – assets	668	3	28	–	21	721
Closing reinsurance contracts held – liabilities	–50	0	38	–	–	–12

Reinsurance contracts held under BBA – analysis by remaining coverage and incurred claims

In CHF million
	Remaining coverage component		Incurred claims component		Total
	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022
Opening reinsurance contracts held – assets	703	11	18	21	721	32
Opening reinsurance contracts held – liabilities	–40	–67	27	30	–12	–36
Net opening balance	663	–56	45	52	708	–4
Additions from business combinations	–	525	–	–	–	525
Changes in the statement of profit or loss and OCI
Net expenses from reinsurance contracts	–167	–133	107	92	–60	–41
Net finance income/expenses from reinsurance contracts	32	–5	2	–2	35	–7
Effect of changes in non-performance risk of reinsurers	0	0	–	–	0	0
Foreign currency translation differences	–24	–6	–3	–2	–27	–9
Total changes in the statement of profit or loss and OCI	–159	–144	107	87	–52	–57
Cash flows
Premiums paid	62	338	–	–	62	338
Amounts received	–	–	–111	–93	–111	–93
Total cash flows	62	338	–111	–93	–50	245
Net closing balance	566	663	41	45	606	708
Closing reinsurance contracts held – assets	610	703	14	18	623	721
Closing reinsurance contracts held – liabilities	–44	–40	27	27	–17	–12

Reinsurance contracts held under PAA – analysis by remaining coverage and incurred claims

In CHF million
	Remaining coverage component		Incurred claims component		Total
	2023	2022	2023	2022	2023	2022
Opening reinsurance contracts held – assets	–128	9	1 099	242	971	252
Opening reinsurance contracts held – liabilities	–2	–1	0	0	–2	–1
Net opening balance	–130	8	1 099	242	969	251
Cash flows incurred before or at initial recognition	80	78	–	–	80	78
Additions from business combinations	–	327	–	750	–	1 077
Changes in the statement of profit or loss and OCI
Net expenses from reinsurance contracts	–817	–471	734	363	–83	–108
Net finance income/expenses from reinsurance contracts	–	–	77	–75	77	–75
Foreign currency translation differences	1	2	–60	–19	–58	–17
Total changes in the statement of profit or loss and OCI	–815	–469	751	269	–64	–200
Cash flows
Premiums paid	865	–75	–	–	865	–75
Amounts received	–	–	–395	–162	–395	–162
Total cash flows	865	–75	–395	–162	470	–237
Net closing balance	–1	–130	1 456	1 099	1 455	969
Closing reinsurance contracts held – assets	0	–128	1 455	1 099	1 456	971
Closing reinsurance contracts held – liabilities	–1	–2	1	0	–1	–2

Contracts initially recognised in the year

The following tables present the effect on the measurement components of insurance and reinsurance contracts arising from the initial recognition of contracts not measured under the PAA that were initially recognised in the year.

Effect of contracts initially recognised in the year – life

In CHF million
	Profitable contracts issued		Onerous contracts issued		Total contracts initially recognised		Contracts acquired from other entities in transfers
	2023	2022	2023	2022	2023	2022	2023	2022
Estimates of present value of future cash outflows
Insurance acquisition cash flows	–553	–530	–	–	–553	–530	–	–
Claims and other insurance service expenses payable	–7 880	–8 489	–3	–37	–7 883	–8 525	–	–808
Total estimates of present value of future cash outflows	–8 433	–9 019	–3	–37	–8 437	–9 055	–	–808
Estimates of present value of future cash inflows	9 096	9 682	3	36	9 100	9 718	–	297
Risk adjustment for non-financial risk	–18	–33	0	–	–18	–33	–	–3
Derecognition of pre-coverage assets	–5	–3	–	–	–5	–3	–	–
CSM	–641	–627	–	–	–641	–627	–	–17
Losses recognised on initial recognition	–	–	–1	–1	–1	–1	–	–

Effect of contracts initially recognised in the year – reinsurance contracts held

In CHF million
	Contracts originated expected to result in net cost		Contracts originated expected to result in net gain		Total contracts initially recognised		Contracts acquired from other entities in transfers
	2023	2022	2023	2022	2023	2022	2023	2022
Estimates of present value of cash inflows	10	11	–	4	10	15	–	512
Cash flows incurred before or at initial recognition	–	–	–	–	–	–	–	–
Estimates of present value of cash outflows	–14	–13	–	0	–14	–13	–	–7
Risk adjustment for non-financial risk	0	0	–	0	0	0	–	3
CSM	4	2	–	–	4	2	–	17
Profit or loss recognised at initial recognition	–	–	–	4	–	4	–	–

Insurance acquisition cash flows

Insurance acquisition cash flows that the Group pays before the related group of contracts is recognised are presented in the portfolio of insurance contracts to which they relate.

Assets for insurance acquisition cash flows

In CHF million
	2023	2022
Opening insurance contract assets	5	–
Opening insurance contract liabilities	132	121
Net opening balance	136	121
Cash flows incurred before or at initial recognition	96	93
Amounts derecognised and included in the measurement of insurance contracts	–77	–72
Foreign currency translation differences	–9	–6
Net closing balance	147	136
Closing insurance contract assets	4	5
Closing insurance contract liabilities	143	132

The cash flows are expected to be included in the insurance contract liabilities as follows:

Expected inclusion of insurance acquisition cash flows

In CHF million
	1–3 months		3–6 months		6–12 months		More than 12 months		Total
	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
Direct participating contracts under VFA	14	12	0	0	–	–	–	–	14	12
Other insurance contracts	17	15	17	17	33	30	66	62	133	124
Total	31	27	17	18	33	30	66	62	147	136