Notes to the Financial Statements

Accounting Rules

The 2015 Financial Statements are the first to incorporate the provisions of Swiss accounting law (Title 32 of the Swiss Code of Obligations). The previous year’s balance sheet and income statement have been amended accordingly to ensure comparability. Treasury shares in particular are now represented as a negative value in equity. The reserve for treasury shares has been accordingly released. The valuation method for participations has also been adapted to the new Code of Obligations. With the introduction of new provisions, participations have been revalued by CHF 41 million. This adaptation is contained in the position “Unrealised gain/loss of capital assets”. Swiss Life Holding’s Financial Statements are presented in millions of Swiss francs (CHF), which is the presentation currency. Figures may not add up exactly due to rounding.

Explanations on the balance sheet and statement of income

Participations
Currency
 
Authorised
share capital
in 1000

31.12.2015
Direct share
 
Currency
 
Authorised
share capital
in 1000

31.12.2014
Direct share
 
Swiss Life Ltd, ZürichCHF587 350100.00%CHF587 350100.00%
Swiss Life Deutschland Holding GmbH, HannoverEUR25100.00%EUR25100.00%
Swiss Life Intellectual Property Management AG, ZürichCHF250100.00%CHF250100.00%
Swiss Life International Holding AG, ZürichCHF1 000100.00%CHF1 000100.00%
Swiss Life Investment Management Holding AG, ZürichCHF50 000100.00%CHF50 000100.00%
Swiss Life Schweiz Holding AG, ZürichCHF250100.00%CHF250100.00%

Loans to Group companies
CHF 556 million of the loans to Group companies is classified as subordinated.

Major shareholders
The following shareholders hold over 5% of Swiss Life Holding’s share capital.

As % of total share capital
31.12.201531.12.2014
Deutsche Bank AG5.35%5.35%
BlackRock Inc.5.58%5.58%

Share capital
As at 31 December 2015, the share capital of Swiss Life Holding consisted of 32 081 054 fullypaid shares with a par value of CHF 5.10 each. In exercising voting rights, no shareholder can collect more than 10% of the total share capital directly or indirectly in respect of his own shares and those he represents. As at 31 December 2014, Swiss Life Holding had 32 081 054 registered shares outstanding with a par value of CHF 5.10 per share. Conditional share capital was CHF 30 600 000.00 as at 31 December 2015 (2014: 30 600 000.00).

Statutory capital reserve
The statutory capital reserve consists of the reserve from capital contribution reserves of CHF 862 million. Following the distribution of CHF 6.50 per share, the capital contribution reserve was reduced by CHF 207 million during the year under review from CHF 1070 million to CHF 862 million as at 31 December 2015. Of this amount CHF 691 million is recognised by the Federal Tax Administration, while the legal qualification of CHF 171 million is still open and is to be reassessed according to future legal developments.

Statutory retained earnings
Statutory retained earnings comprise the general reserves.

Free reserves
Dieser Posten umfasst kumulierte Gewinnreserven, welche nicht an die Aktionäre ausgeschüttet wurden.

Issue of a convertible bond in 2013
On 2 December 2013, Swiss Life Holding launched a bond issue in the amount of CHF 500 million with a coupon of 0%, due in 2020. The bonds may be converted into registered Swiss Life Holding shares. The conversion price is set at CHF 240.70.

In 2015 no convertible bonds were converted into Swiss Life Holding shares.

Issue of two senior bonds in 2013
Two senior bonds for a total amount of CHF 425 million were issued on 21 June 2013, split into a tranche of CHF 225 million with a tenor of six years until 2019 (coupon of 1.125%) and a tranche of CHF 200 million with a tenor of ten years until 2023 (coupon of 1.875%).

Treasury shares
In the year under review the companies in the Swiss Life Group purchased a total of 158 001 Swiss Life Holding shares at an average price of CHF 219.76. No shares were sold in the same period. As at 31 December 2015, the Swiss Life Group held 254 495 treasury shares.

Contingencies
Swiss Life Holding acts as warrantor for all Swiss Life Ltd liabilities with regard to the various tranches of the subordinated perpetual step-up loans (hybrid debt), which amounted to an equivalent value of CHF 3730 million at the balance sheet date.

Swiss Life Holding further provides capital guarantees for a maximum net asset value of CHF 1100 million to Swiss Life Ltd, CHF 150 million to Swiss Life Funds, CHF 185 million to Swiss Life Products, CHF 7 million to Swiss Life Liechtenstein and CHF 7 million to Corpus Sireo.

In addition, Swiss Life Holding grants a line of credit in the amount of CHF 16 million to Swiss Life Products, a line of credit in the amount of CHF 6 million to Swiss Life Schweiz Holding and a line of credit in the amount of CHF 83 million to Corpus Sireo.

Financial assets pledged as collateral
In the year under review, Swiss Life Holding pledged no liquid assets as margin cover for currency forward transactions.

Statement of changes in equity for the years ended 31 December

In CHF million
20152014
SHARE CAPITAL
Balance as at 1 January164164
TOTAL SHARE CAPITAL164164
STATUTORY CAPITAL RESERVE
Balance as at 1 January1 0701 246
Distribution of profit from the capital contribution  reserve-207-176
TOTAL STATUTORY CAPITAL RESERVE8621 070
STATUTORY RETAINED EARNINGS
General reserves
Balance as at 1 January3232
Total general reserves3232
TOTAL STATUTORY RETAINED EARNINGS3232
VOLUNTARY RETAINED EARNINGS
Free reserves
Balance as at 1 January3 2143 098
Allocation to free reserves25990
Release of reserve for treasury shares-26
Total free reserves3 4733 214
Profit shown in the balance sheet
Balance as at 1 January25991
Allocation to free reserves-259-90
Annual profit349258
Total profit shown in the balance sheet349259
TOTAL VOLUNTARY RETAINED EARNINGS3 8223 473
OWN CAPITAL SHARES
Balance as at 1 January-31-26
Change in own capital shares-18-5
TOTAL OWN CAPITAL SHARES-49-31
TOTAL EQUITY4 8324 708

As a result of the adaptation to new provisions of the Code of Obligations, treasury shares are now represented as a negative value in equity capital. A reserve for treasury shares is thus now only to be created if other Group companies hold treasury shares. Since no other Group companies hold treasury shares, the reserve for treasury shares has been accordingly released to free reserves.

Number of full-time positions
The number of full-time positions is not above 50 employees on average over the year.

Events after the Reporting Period

On 2 March 2016, Swiss Life Ltd issued a perpetual subordinated bond for CHF 450 million with an initial optional call date in September 2021 and a subordinated bond for CHF 150 million maturing in 2046 with an initial optional call date in September 2026. Both bonds are guaranteed by Swiss Life Holding Ltd on a subordinated basis.

Disclosure of compensation to the Board of Directors and the Corporate Executive Board in accordance with Art. 663bbis of the Swiss Code of Obligations (CO) and Art. 14–16 of the Federal Ordinance against Excessive Compensation in Listed Stock Companies, and disclosure of the shareholdings of members of the Board of Directors and the Corporate Executive Board in accordance with Art. 663c of the CO

Compensation in 2015
The Board of Directors is responsible for drawing up a written compensation report each year to include the information required by Articles 14–16 of the Federal Ordinance against Excessive Compensation in Listed Stock Companies (Compensation Ordinance). This compensation report supersedes the details in the notes to the balance sheet according to Art. 663bbis CO. Swiss Life’s compensation report for the 2015 financial year is provided on this page.

The following tables contain information on the share ownership and participation rights of members of the Board of Directors and the Corporate Executive Board in accordance with Art. 663c CO.

Share ownership/participation rights as at 31 December 2015
As at 31 December 2015, acting members of the Board of Directors and the Corporate Executive Board (including closely linked parties) held the following number of registered Swiss Life Holding shares and future subscription rights to Swiss Life Holding shares in the form of Restricted Share Units (RSUs).

Board of Directors

SLH shares
31.12.2015
Rolf Dörig, Chairman of the Board of Directors38 850
Gerold Bührer6 740
Frank Schnewlin4 393
Wolf Becke822
Adrienne Corboud Fumagalli302
Ueli Dietiker522
Damir Filipovic1 285
Frank W. Keuper522
Henry Peter8 258
Franziska Tschudi Sauber2 739
Klaus Tschütscher522
TOTAL BOARD OF DIRECTORS64 955

Corporate Executive Board

SLH shares
31.12.2015
Patrick Frost, Group CEO14 130
Thomas Buess14 854
Nils Frowein300
Ivo Furrer2 000
Markus Leibundgut1 420
Stefan Mächler500
Charles Relecom3 130
TOTAL CORPORATE EXECUTIVE BOARD36 334
Restricted
Share Units (RSUs)
31.12.2015 1
Patrick Frost, Group CEO                                      9 218
Thomas Buess7 148
Nils Frowein5 942
Ivo Furrer7 148
Markus Leibundgut4 946
Stefan Mächler1 591
Charles Relecom5 694
TOTAL CORPORATE EXECUTIVE BOARD41 687

Share ownership/participation rights as at 31 December 2014
As at 31 December 2014, acting members of the Board of Directors and the Corporate Executive Board (including closely linked parties) held the following number of registered Swiss Life Holding shares and future subscription rights to Swiss Life Holding shares in the form of Restricted Share Units (RSUs).

Board of Directors

SLH shares
31.12.2014
Rolf Dörig, Chairman of the Board of Directors 37 308
Gerold Bührer6 289
Frank Schnewlin3 942
Wolf Becke654
Adrienne Corboud Fumagalli134
Ueli Dietiker354
Damir Filipovic1 117
Frank W. Keuper354
Henry Peter7 052
Franziska Tschudi Sauber2 571
Klaus Tschütscher354
TOTAL BOARD OF DIRECTORS60 129

Corporate Executive Board

SLH shares
31.12.2014
Patrick Frost, Group CEO 10 000
Thomas Buess10 874
Ivo Furrer1 300
Markus Leibundgut500
Stefan Mächler500
Charles Relecom1 410
TOTAL CORPORATE EXECUTIVE BOARD24 584
Restricted
Share Units (RSU)
31.12.2014 1
Patrick Frost, Group CEO9 704
Thomas Buess8 869
Ivo Furrer8 869
Markus Leibundgut5 044
Stefan Mächler0
Charles Relecom7 201
TOTAL CORPORATE EXECUTIVE BOARD39 687

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