The Southern District of New York court announced the deferred prosecution agreement with Swiss Life Holding AG, Swiss Life (Liechtenstein) AG, Swiss Life (Singapore) Pte Ltd, and Swiss Life (Luxembourg) last Friday, with all parties agreeing to accept full responsibility for their criminal conduct.

The three-year agreement resolves the charge that Swiss Life conspired to defraud the US Internal Revenue Service (IRS) by concealing more than $1.45bn (£1.02bn) in offshore insurance policies.

The insurance group will pay $16.3m restitution to the IRS which represents the approximate unpaid taxes resulting from the Swiss Life entities’ participation in the conspiracy, and will also pay $35.7m to the US, which represents the approximate gross fees, not profits, that the company earned on the penalised insurance policies and related policy investment accounts between 2005 and 2014.