Valuation

Investments in subsidiaries and affiliated companies

Differences in valuation: SST reports investments in subsidiaries and affiliated companies at market-consistent value. In statutory reporting, participations are carried at cost, less necessary and legally permissible depreciation, fixed at historical FX rates.

Fixed-income securities

Differences in valuation: SST carries fixed-income securities at market value. In statutory reporting, fixed-income securities are valued at their amortised cost less necessary depreciation to address other-than-temporary market value decreases.

Loans

Differences in valuation: In SST, intra-group loans are valued by discounting future estimated cash flows at risk-free rates, while under statutory reporting those loans are carried at nominal value. Value adjustments are recorded where the expected recovery value is lower than the nominal value.

Equity securities

Differences in scope: In SST, some shares in public equity investment funds are included in equity securities. Under statutory reporting, those shares are part of other investments.

Other investments

Differences in scope: In SST, short-term investments are defined on the basis of the remaining duration at time of purchase. Statutory reporting classifies short-term investments between cash and cash equivalents and other investments on the basis of initial duration. In SST, some public equity investment funds are classified as part of the equity securities. In statutory reporting, shares in investment funds are classified as other investments.

Differences in valuation: SST reports other investments such as shares in investment funds, private equity or hedge funds at market value. In statutory reporting, those securities are valued at cost, less necessary and legally permissible depreciation.

Cash and cash equivalents

Differences in scope: statutory reporting classifies short-term investments between cash and cash equivalents and other investments on the basis of initial duration, while SST classifies them on the basis of remaining duration at time of purchase.

Funds held by ceding companies and other receivables from reinsurance

Differences in valuation: In SST, funds withheld for which a fixed interest is credited are valued by discounting future estimated cash flows at risk-free rates. Under statutory reporting, those are generally measured at the consideration received or at market value of the underlying assets.

Other assets

Differences in scope: in SST, reinsurance recoverables are part of re/insurance liabilities, whereas they are disclosed in other assets in statutory reporting.

Differences in valuation: In SST, other assets are measured at fair value. In statutory reporting, other assets are generally carried at nominal value. Deferred acquisition costs are not valued for SST.

Re/insurance liabilities

Differences in scope: In SST, reinsurance recoverables are shown in re/insurance liabilities. In statutory reporting, reinsurance recoverables are disclosed within other assets.

Differences in valuation: In SST, liabilities are generally discounted using current risk-free rates. In statutory reporting, there is generally no discounting for non-life technical provisions.

Debt

Differences in valuation: In SST, debt qualified as SST supplementary capital is carried at fair value. In statutory reporting, debt is carried at redemption value.

Other liabilities

Differences in valuation: Derivative financial instruments are measured at fair value under SST. In statutory reporting, derivatives generally are carried at cost, less necessary and legally permissible depreciation.