To the Board of Directors of
Swiss Life Holding Ltd
We have audited the Market Consistent Embedded Value Report (“MCEV Report”) of Swiss Life Holding Ltd and its subsidiaries (the Group) for the year ended 31 December 2016.
In our opinion, the embedded value information included in the MCEV Report has been prepared, in all material respects, in accordance with the MCEV Principles issued by the European Insurance CFO Forum, as described in sections 1 and 4 of the MCEV Report.Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those provisions and standards are further described in the “Auditor’s responsibilities for the audit of the MCEV Report” section of our report.
We are independent of the Group in accordance with the IESBA Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Emphasis of matter – Basis of accounting
We draw attention to sections 4 and 5 of the MCEV Report, which describe the basis of MCEV methodology and assumptions. The MCEV Report is prepared in compliance with the MCEV Principles and as a result, the MCEV Report may not be suitable for another purpose. This report does not extend to any financial statements of Swiss Life Holding Ltd. Our opinion is not modified in respect of this matter.Other information in the annual report
The Board of Directors is responsible for the other information in the annual report. The other information comprises all information included in the annual report, but does not include the MCEV Report of Swiss Life Holding Ltd and our auditor’s reports thereon.
Our opinion on the MCEV Report does not cover the other information in the annual report and we do not express any form of assurance conclusion thereon.
In connection with our audit of the MCEV Report, our responsibility is to read the other information in the annual report and, in doing so, consider whether the other information is materially inconsistent with the MCEV Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.Responsibilities of the Board of Directors for the MCEV Report
The Board of Directors is responsible for the preparation of the MCEV Report in accordance with the MCEV Principles, including the applied methodology and the assumptions used and for such internal controls as determined necessary to enable the preparation of the MCEV Report that is free from material misstatement, whether due to fraud or error.
In preparing the MCEV Report, the Board of Directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern assumptions unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.Auditor’s responsibilities for the audit of the MCEV Report
Our objectives are to obtain reasonable assurance about whether the MCEV Report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the MCEV Report.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
We communicate with the Audit Committee of the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Zurich, 2 March 2017