Annual Report 2025

7 Details of Certain Items in the Consolidated Statement of Income

Insurance revenue

In CHF million
	2025	2024

CSM recognised for services provided
from contracts to which the VFA has been applied	1 086	1 072
from contracts to which the BBA has been applied	69	54
Total CSM recognised for services provided	1 155	1 126

Change in risk adjustment for non-financial risk for risk expired
from contracts to which the VFA has been applied	15	16
from contracts to which the BBA has been applied	2	2
Total change in risk adjustment for non-financial risk for risk expired	18	18

Expected incurred claims and other insurance service expenses
from contracts to which the VFA has been applied	3 223	3 189
from contracts to which the BBA has been applied	603	617
Total expected incurred claims and other insurance service expenses	3 827	3 806

Recovery of insurance acquisition cash flows
from contracts to which the VFA has been applied	286	276
from contracts to which the BBA has been applied	35	38
Total recovery of insurance acquisition cash flows	321	314

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	–6	18
Total experience adjustments on premiums and related cash flows	–6	18

Insurance revenue from contracts to which the PAA has been applied	3 436	3 396

Total insurance revenue	8 750	8 678

Expenses

In CHF million
	Notes	2025	2024

Expenses from incurred claims and onerous contracts
Incurred claims		5 698	5 741
Losses and reversal of losses on onerous contracts		16	0
Adjustments to liabilities for incurred claims		–45	9
Total expenses from incurred claims and onerous contracts		5 668	5 750

Commission expense
Insurance agent and broker commissions		913	1 003
Asset management and banking commissions		133	136
Other commissions and fees		92	94
Total commission expense		1 138	1 232

Employee benefits expense
Wages and salaries		879	878
Social security		196	176
Defined benefit plans	19	97	83
Defined contribution plans		6	5
Other employee benefits		145	150
Total employee benefits expense		1 323	1 292

Depreciation and amortisation expense
Depreciation of property and equipment¹		62	57
Amortisation of intangible assets	13	32	29
Amortisation of investment contract costs		0	0
Total depreciation and amortisation expense		94	86

Net impairment of property and equipment and intangible assets
Net impairment of property and equipment		0	0
Net impairment of intangible assets	13	–1	–3
Total net impairment of property and equipment and intangible assets		–1	–3

Miscellaneous expenses
Marketing and advertising		61	55
Information technology and systems		163	174
Maintenance and repair		40	30
Short-term leases		2	2
Leases of low-value assets		1	1
Professional services		242	252
Cost of inventory property sold		216	203
Premium taxes and other non-income taxes		87	74
Other		71	110
Total miscellaneous expenses		883	903

Total expenses before amortisation of insurance acquisition cash flows		9 106	9 260

Amortisation of insurance acquisition cash flows		651	637
Total expenses		9 757	9 897
Thereof:
Insurance service expenses		7 542	7 608
Other expenses		2 215	2 289
¹ Including depreciation of right-of-use assets arising from leases of CHF 39 million (2024: CHF 41 million)

Other items in the income statement

In CHF million
	2025	2024

Commission income
Brokerage commissions	957	925
Asset management commissions	595	696
Other commissions and fees	301	312
Total commission income	1 854	1 933

Other income
Realised gains/losses on sales of subsidiaries, associates and other assets	–5	–1
Revenue from sale of inventory property	218	230
Other foreign currency gains/losses	123	–56
Other	25	32
Total other income	361	203

Other interest expense
Interest expense on deposits	45	63
Negative interest on repurchase agreements	–3	0
Interest expense on amounts due to banks	119	181
Interest expense on lease liabilities	7	6
Other interest expense	5	7
Total other interest expense	173	257

Investment result

In CHF million
	Notes	2025	2024

Investment income
Interest income on financial assets at fair value through other comprehensive income		2 262	2 377
Interest income on financial assets at amortised cost		259	283
Dividend income on financial assets at fair value through other comprehensive income	9	1	26
Net income on investment property		1 158	1 122
Net income on own-use property (underlying item in VFA)		–2	–1
Other interest income		64	116
Total investment income		3 741	3 924

Net gains/losses including impairment losses on financial assets
Financial assets at fair value through other comprehensive income		31	–79
Financial assets at amortised cost		0	–1
Hedging gains/losses reclassified from other comprehensive income		12	34
Foreign currency gains/losses		–2 003	1 162
Net impairment losses on financial assets	5	–30	–83
Total net gains/losses including impairment losses on financial assets		–1 990	1 034

Net gains/losses on financial instruments at fair value through profit or loss
Currency derivatives		1 411	–2 737
Interest rate derivatives		–32	28
Equity derivatives		–999	–450
Other derivatives		3	–4
Financial assets designated as at fair value through profit or loss^1,2		1	–13
Financial assets mandatorily measured at fair value through profit or loss¹		4 226	5 805
Investments in associates³		–3	–6
Investment contracts without discretionary participation	15	–326	–1 349
Third-party interests in consolidated investment funds		–279	–83
Other financial liabilities		0	1
Total net gains/losses on financial instruments at fair value through profit or loss		4 003	1 192

Net gains/losses on investment property
Net gains/losses on investment property	10	768	246
Net gains/losses on own-use property (underlying item in VFA)	12	9	–28
Total net gains/losses on investment property		777	218
¹ Includes interest and dividend income of CHF 740 million (2024: CHF 691 million)
² Includes changes attributable to credit risk of nil (2024: nil)
³ Includes dividend income of CHF 21 million (2024: nil)