Annual Report 2024

7 Details of Certain Items in the Consolidated Statement of Income

Insurance revenue

In CHF million
	2024	2023

CSM recognised for services provided
from contracts to which the VFA has been applied	1 072	1 231
from contracts to which the BBA has been applied	54	53
Total CSM recognised for services provided	1 126	1 283

Change in risk adjustment for non-financial risk for risk expired
from contracts to which the VFA has been applied	16	18
from contracts to which the BBA has been applied	2	2
Total change in risk adjustment for non-financial risk for risk expired	18	20

Expected incurred claims and other insurance service expenses
from contracts to which the VFA has been applied	3 189	3 228
from contracts to which the BBA has been applied	617	615
Total expected incurred claims and other insurance service expenses	3 806	3 843

Recovery of insurance acquisition cash flows
from contracts to which the VFA has been applied	276	283
from contracts to which the BBA has been applied	38	37
Total recovery of insurance acquisition cash flows	314	320

Experience adjustments on premiums and related cash flows
from contracts to which the VFA has been applied	–	–
from contracts to which the BBA has been applied	18	71
Total experience adjustments on premiums and related cash flows	18	71

Insurance revenue from contracts to which the PAA has been applied	3 396	3 258

Total insurance revenue	8 678	8 797

Expenses

In CHF million
	Notes	2024	2023

Expenses from incurred claims and onerous contracts
Incurred claims		5 521	5 490
Losses and reversal of losses on onerous contracts		0	–2
Adjustments to liabilities for incurred claims		229	179
Total expenses from incurred claims and onerous contracts		5 750	5 667

Commission expense
Insurance agent and broker commissions		1 003	935
Asset management and banking commissions		136	132
Other commissions and fees		94	116
Total commission expense		1 232	1 183

Employee benefits expense
Wages and salaries		878	846
Social security		176	175
Defined benefit plans	19	83	70
Defined contribution plans		5	5
Other employee benefits		150	139
Total employee benefits expense		1 292	1 234

Depreciation and amortisation expense
Depreciation of property and equipment¹		57	53
Amortisation of intangible assets	13	29	30
Amortisation of investment contract costs		0	0
Total depreciation and amortisation expense		86	83

Impairment of property and equipment and intangible assets
Impairment of property and equipment		0	0
Impairment of intangible assets	13	–3	2
Total impairment of property and equipment and intangible assets		–3	2

Miscellaneous expenses
Marketing and advertising		55	60
Information technology and systems		174	149
Maintenance and repair		30	28
Short-term leases		2	4
Leases of low-value assets		1	2
Professional services		252	245
Cost of inventory property sold		203	170
Premium taxes and other non-income taxes		74	69
Other		110	100
Total miscellaneous expenses		903	825

Total expenses before amortisation of insurance acquisition cash flows		9 260	8 995

Amortisation of insurance acquisition cash flows		637	622
Total expenses		9 897	9 617
Thereof:
Insurance service expenses		7 608	7 445
Other expenses		2 289	2 172
¹ Including depreciation of right-of-use assets arising from leases of CHF 41 million (2023: CHF 38 million)

Other items in the income statement

In CHF million
	2024	2023

Commission income
Brokerage commissions	925	873
Asset management commissions	696	656
Other commissions and fees	312	401
Total commission income	1 933	1 929

Other income
Realised gains/losses on sales of subsidiaries, associates and other assets	–1	53
Revenue from sale of inventory property	230	203
Other foreign currency gains/losses	–56	345
Other	32	44
Total other income	203	646

Other interest expense
Interest expense on deposits	63	59
Negative interest on repurchase agreements	0	3
Interest expense on amounts due to banks	181	211
Interest expense on lease liabilities	6	5
Other interest expense	7	6
Total other interest expense	257	284

Investment result

In CHF million
	Notes	2024	2023

Investment income
Interest income on financial assets at fair value through other comprehensive income		2 377	2 310
Interest income on financial assets at amortised cost		283	286
Dividend income on financial assets at fair value through other comprehensive income	9	26	47
Net income on investment property		1 122	1 106
Net income on own-use property (underlying item in VFA)		–1	0
Other interest income		116	101
Total investment income		3 924	3 849

Net gains/losses including impairment losses on financial assets
Financial assets at fair value through other comprehensive income		–79	–167
Financial assets at amortised cost		–1	–3
Hedging gains/losses reclassified from other comprehensive income		34	97
Foreign currency gains/losses		1 162	–2 133
Net impairment losses on financial assets	5	–83	40
Total net gains/losses including impairment losses on financial assets		1 034	–2 165

Net gains/losses on financial instruments at fair value through profit or loss
Currency derivatives		–2 737	1 098
Interest rate derivatives		28	311
Equity derivatives		–450	–404
Other derivatives		–4	–28
Financial assets measured at fair value through profit or loss^1,2		–13	311
Financial assets mandatorily measured at fair value through profit or loss¹		5 805	4 597
Investments in associates³		–6	0
Investment contracts without discretionary participation	15	–1 349	–1 845
Third-party interests in consolidated investment funds		–83	–22
Other financial liabilities		1	1
Total net gains/losses on financial instruments at fair value through profit or loss		1 192	4 018

Net gains/losses on investment property
Net gains/losses on investment property	10	246	–839
Net gains/losses on own-use property (underlying item in VFA)	12	–28	–41
Total net gains/losses on investment property		218	–880
¹ Includes interest and dividend income of CHF 691 million (2023: CHF 624 million)
² Includes changes attributable to credit risk of nil (2023: nil)
³ Includes dividend income of nil (2023: CHF 1 million)