1 Insurance under KVG This segment comprises the companies that offer mandatory health care insurance and voluntary daily benefits insurance under the KVG.
2 Insurance under VVG This segment comprises the companies that offer insurance products under the VVG.
3 Insurance under UVG This segment comprises the companies that offer insurance products under the UVG.
4 Other This segment comprises all other companies.
The consolidated financial statements 2019 are presented in accordance with the Swiss GAAP accounting and reporting recommendations (Swiss GAAP FER) and provide a true and fair view of the Groupʼs assets, finances and earnings. Swiss GAAP FER represents a complete body of rules. All recommendations must be applied.
Swiss GAAP FER 41 entered into force for the individual financial statements of KVG health insurers on 1 January 2012. The Helsana Group has applied Swiss GAAP FER 30 (Consolidation) in conjunction with Swiss GAAP FER 41 since financial year 2015. The application of Swiss GAAP FER is voluntary.
The consolidated financial statements include all companies that are directly or indirectly controlled by Helsana. Control means the decisive influence on the operational and financial activities in order to derive the corresponding benefit therefrom. This is usually the case if Helsana directly or indirectly holds more than 50 per cent of the voting rights in a company. Companies acquired during the financial year are included from the date on which control over the business activities was transferred to Helsana, and all companies disposed of during the year are excluded from the Group statements from the date of sale.
There was no change in the scope of consolidation in the year under review.
All amounts in the annual financial statements are rounded to thousand Swiss francs. This means that the sum of several rounded amounts added together can differ from the rounded total that is reported.
Companies are included in the Group statements based on the full consolidation method. Capital consolidation is carried out using the Anglo-Saxon method (purchase method). Assets and borrowed capital of companies acquired are revalued at the time of control changes in accordance with the Helsana Groupʼs principles; unrealised gains and losses are carried under the relevant balance sheet items and the remaining difference between the purchase price and equity, i.e. goodwill, calculated according to the accounting policies of the Group, is fully amortised over five years or in the year of consolidation. Any third-party participations in fully consolidated companies are shown separately as non-controlling interests in equity and income.
Companies in which Helsana holds between a 20 and 50 per cent stake are stated in the balance sheet at the value corresponding to the pro rata equity capital in line with the equity method.
The reporting date for all companies included is 31 December.
There were no significant events after the reporting date until the date of signature by the responsible body (4 February 2020).
All intragroup transactions, relationships and earnings are eliminated as part of the consolidation process.
Valuation is carried out in line with standardised criteria. In general, the principle of the individual valuation of assets and liabilities applies.
Foreign currency positions are converted at current exchange rates at year-end.
The following exchange rates were used:
Real estate includes both investment properties and owner-occupied properties, and is recognised in the balance sheet at current market value. Market values are estimated at least once every three years by an independent consulting firm. The values are determined using the discounted cash flow method or another recognised method during the intervening years.
Fixed-income securities are recognised in the balance sheet using the amortised cost method if the debtor is able to pay the interest and amortisation payments. Periodic changes in the carrying amount are recognised in the income statement. If there are justified doubts about the debtorʼs ability to pay interest and amortisation payments, fixed-income securities are recognised in the balance sheet at their current value. Investments in similar securities without a fixed term (e.g. bond funds) or without a defined redemption price are reported at their market value.
Equities include equity securities such as stocks and similar securities. Such assets are marketable and are valued at market price. Periodic changes in the carrying amount are recognised in the income statement. Any impairments are booked accordingly.
Collective investment schemes (equity funds, alternative investments, real estate funds, etc.) are reported as a separate item. They are measured at current value. Periodic changes in the carrying amount are recognised in the income statement.
Derivatives include foreign exchange and option contracts, certificates on equity indices and futures. Forward exchange transactions are used to hedge exchange rate and market price fluctuations and are measured at market value.
These include investments in companies that are held for strategic purposes. These investments are measured using the last known pro rata equity (equity method) or are valued at cost.
Loans and mortgages are stated in the balance sheet at nominal value less any necessary write-downs.
Assets from the employer contribution reserve are, provided they are not subject to a waiver of usage, recognised in the balance sheet at their nominal value and deducted from staff costs accordingly if they are used. The value is reviewed annually and, if necessary, the item is written down.
All investments and cash holdings of the KVG, VVG and UVG segments, with the exception of shareholdings, loans and mortgages as well as assets from the employer contribution reserves, are reported as tied assets.
With intangible assets, a distinction is drawn between purchased software and projects. The latter are amortised on a straight-line basis over the course of their useful life. With purchased software, amounts below CHF 5,000 are expensed.
Projects are generally amortised over a period of five years from launch, up to a maximum of ten years in justified cases. They must provide a benefit over several years. At maximum, they are measured at cost of acquisition or production. These costs must be measurable and allocable to the project. Projects may only be capitalised if they are strategic in nature or involve an investment in excess of CHF 3 million.
Property, plant and equipment are depreciated on a straight-line basis over the course of their useful life. Any acquisitions or collective acquisitions for amounts of more than CHF 5,000 are capitalised under fixtures and fittings. Amounts below this limit are expensed.
Useful life for each asset category:
The value is reviewed annually and the item is written down accordingly.
This item includes expenses during the reporting year that are deducted as an expense in the following financial year, and income that only leads to revenue in the following financial year.
Receivables due from third parties, such as policyholders, insurance organisations, agents and brokers, cantons and other parties, are measured at nominal value. The security is determined on the basis of the maturity structure and recognisable credit risks. In addition to individual write-downs for specific known receivable risks, impairments are formed using statistical information about the risk of default. The calculation of the necessary value adjustments also includes the type of receivable (private customer, corporate customer, co-payment) in addition to the maturity structure. The assumptions are based on historical figures from previous years. Assuming the losses on accounts remain constant as in previous years, an allowance for doubtful receivables is made for the unpaid receivables of up to 180 days with a rate of 0.25 per cent. For older receivables, the effects of Art. 64a KVG (depending on the canton) are included in the calculation of the allowance for doubtful receivables of the KVG companies. The totals of the receivables are included in the ratio of the debt collection proceedings initiated to the resulting certificates of debt.
The receivables due from affiliates are measured at nominal value, taking account of operationally necessary impairments.
Cash and cash equivalents include cash on hand as well as postal and bank account balances. Cash and cash equivalents are measured at nominal value. Any impairments are booked accordingly.
The item for net technical provisions includes provisions for claims and benefits, actuarial reserves, provisions for profit sharing, technical equalisation reserves and provisions for guarantees as well as other technical provisions. Provisions for claims and benefits are calculated according to actuarial methods recognised by the supervisory authorities (e.g. chain ladder). In doing so, the following parameters are taken into account for the year of occurrence and the year of processing:
The reserves for annuities are calculated according to the accounting principles pursuant to Art. 108 UVV. The calculation is based on the annuity without cost of living bonuses. For ceded co-insurance, we assume our portion of the individual actuarial reserve as reported by the company that carries it.
For group sickness benefits, provisions for profit sharing are formed for contracts that include agreements on profit sharing. They are calculated as the expected value of the profit share paid out after the reporting date for contracts for profit sharing that are in effect through the reporting date. The estimate of provisions for profit sharing takes account of the active portfolio and the empirical claims experience as at the reporting date.
The equalisation reserves and provisions for guarantees protect the capital base against the effects of unusual fluctuations in the technical result. They are endowed in accordance with the technical result. The maximum amount results from the difference between the expected shortfall and the level α and the expected value. α is 95 per cent for long-term care insurance. For the other product groups, α is set at 90 per cent. The lower limit is zero.
The other technical provisions include additional actuarial provisions that are measured according to the applicable and approved business plan.
If an outflow of funds is probable, a corresponding provision is raised for legal and actual obligations on an event in the past. The amount is determined by analysing the relevant past result and the economic risk. If time has a significant impact, the provision requirement must be discounted. The provisions are revalued annually.
The provisions for investment risk map the long-term volatilities of the capital market. The provisions are based on the total portfolio and are reviewed annually. The target provisions and the range for investment risk are calculated according to an analytical model (normal distribution) on the basis of sensitivities in the investments.
If the investments during the reporting period experience above-average losses in value, the provisions for investment risk can also be liquidated in the income statement, either in full or in part. If the values of the investments increase by more than the average during the reporting period, the provisions for investment risk can also be increased in full or in part to the target value in the income statement.
This item includes deferred income during the reporting year that is credited as income in the following financial year, and expenses for the reporting year that are only paid the following financial year.
This item mainly includes obligations to policyholders or service providers as well as premiums billed in advance. Loans due are also recognised in this item. The liabilities are recognised in the balance sheet at their nominal amount.
1 Other investment income comprises retrocession repayments by the custodian financial institution.
1 The market value of the bonds (excluding accrued interest) is CHF 4,336,590 (CHF 4,030,708 as at 31 December 2018).
1 The bond hedges are included in the bond asset class.
1 The amount of reinsurance in the provisions for claims and benefits was CHF 0 as at 31 December 2019 CHF (0 as at 31.12.2018).
2 The actuarial reserves were discounted with a technical interest rate of 2.75 per cent for the accident years up to 2013 and 2.0 per cent for 2014, 2015, 2016, 2017, 2018 and 2019 (average term: 15 years).
3 The other technical provisions comprise provisions for other compulsory health insurance products (OKP; models such as HAV/HMO). Ageing reserves were discounted with a technical interest rate of 1.0 per cent.
1 The restructuring provisions include the costs of the organisational changes that were made as part of the cost reduction programme.
2 The provisions for holiday and overtime claims as well as staff bonuses and broker fees are included under “Personnel/brokers”.
3 The process risks include subsequent licensing requirements. Any payments were deferred accordingly.
4 The Swiss Financial Market Supervisory Authority (FINMA) has ordered a restriction for the awarding of discounts. The potential compensation payment to individual policyholders was set aside conservatively in 2017 at CHF 65 million.
1 The information is based on the audited 2017 and 2018 annual financial statements of the staff pension fund foundation of Helsana Insurance Company Ltd.
On 31 December 2019, there was no collateral for own liabilities.
Within the scope of Group VAT taxation, the Helsana Group is jointly and severally liable to the Swiss Federal Tax Administration. Stiftung Fondation Sana is also included in the VAT group together with the fully consolidated companies.
1 The transactions with associated companies include the sum of the statements of these companies, which include the transferred net premiums less any profit sharing and compensation for administration.
2 The figures have been taken from the annual reports for 2018 and 2017.
