Zurich Insurance Group Annual Report 2012 Consolidated financial statements 231
Table 20.8
Deferred tax in USD millions, as of December 31 2012 2011
assets/(liabilities) Assets Liabilities Assets Liabilities
analysis Gross deferred tax
by source Deferred acquisition and origination costs 35 (677) 24 (655)
Depreciable and amortizable assets 45 (63) 30 (73)
Life policyholders’ benefits and deposits 1 13 (15) 96 (49)
Unrealized (gains)/losses on available-for-sale investments
and cash flow hedges 251 (511) 410 (522)
Accruals and deferred income 158 (1) 191 (2)
Reserves for losses and loss adjustment expenses 434 (132) 457 (4)
Reserves for unearned premiums 765 (59) 729 (61)
Pensions and other employee benefits 544 – 541 –
Other assets / liabilities 785 (89) 756 (296)
Tax loss carryforwards 484 – 617 –
Gross deferred tax assets/(liabilities)
before valuation allowance 3,514 (1,549) 3,851 (1,662)
Valuation allowance (112) – (113) –
Gross deferred tax assets/(liabilities)
after valuation allowance 3,403 (1,549) 3,738 (1,662)
Deferred tax assets 1,854 2,076
Deferred acquisition and origination costs 89 (2,662) 60 (2,565)
Depreciable and amortizable assets 247 (2,585) 287 (2,620)
Life policyholders’ benefits and deposits 1 1,162 (961) 956 (777)
Unrealized (gains)/losses on available-for-sale investments
and cash flow hedges 209 (1,364) 303 (1,075)
Accruals and deferred income 116 (94) 109 (169)
Reserves for losses and loss adjustment expenses 149 (82) 142 (243)
Reserves for unearned premiums 50 (72) 47 (64)
Deferred front-end fees 616 – 634 –
Pensions and other employee benefits 482 (40) 457 (37)
Other assets / liabilities 744 (1,357) 923 (1,128)
Tax loss carryforwards 127 – 203 –
Gross deferred tax assets/(liabilities)
before valuation allowance 3,992 (9,218) 4,121 (8,678)
Valuation allowance (12) – (12) –
Gross deferred tax assets/(liabilities)
after valuation allowance 3,980 (9,218) 4,109 (8,678)
Deferred tax liabilities (5,238) (4,569)
Net deferred tax liabilities (3,384) (2,493)
1
Includes reserves for unit-linked contracts.
Financial information
The Group’s deferred tax assets and liabilities are recorded by its tax paying entities throughout the world, which may
include several legal entities within each tax jurisdiction. Legal entities are grouped as a single taxpayer only when
permitted by local legislation and when deemed appropriate. The first part of table 20.8 includes single taxpayers with
a net deferred tax asset position and the second part includes single taxpayers with a net deferred tax liability position.
As of December 31, 2012 and 2011, the aggregate amount of temporary differences associated with investments in
subsidiaries, branches and associates and interests in joint ventures, for which deferred tax liabilities have not been
recognized amount to approximately USD 22 billion and USD 21 billion, respectively. In the remote scenario in which
these temporary differences were to reverse simultaneously, the resulting tax liabilities would be very limited due to
participation exemption rules.