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Notes to the Accounts

33 Contingent Liabilities and Commitments
               
P&C insurance        
               
EURm         2010 2009
Off-balance sheet items            
  Guarantees         57 19
  Other irrevocable commitments         27 69
Total         84 88
               
Assets pledged as collateral for liabilities or contingent liabilities
               
        2010 2009
EURm     Assets pledged Liabilities/ commitments Assets pledged Liabilities/ commitments
Assets pledged as collateral            
Cash at balances at central banks     10 8 9 7
Investments            
  Investment securities     133 111 124 101
             
             
Commitments for non-cancellable operating leases         2010 2009
Minimum lease payments            
  not later than one year         32 32
  later than one year and not later than five years         78 82
  later than five years         101 106
Total         212 220
             
Lease and sublease payments recognised as an expense in the period    
  minimum lease payments         -34 -34
  sublease payments         0 0
Total         -34 -34
               
The subsidiaries If P&C Insurance Ltd and If P&C Insurance Company Ltd provide insurance with mutual undertakings within the Nordic Nuclear Insurance Pool and within the Norwegian Natural Perils’ Pool.
 
In connection with the transfer of property and casualty insurance business from the Skandia group to the If Group as of March 1, 1999, If P&C Holding Ltd and If P&C Insurance Ltd issued a guarantee for the benefit of Försäkringsaktiebolaget Skandia (publ.) whereby the aforementioned companies in the If Group mutually guarantee that companies in the Skandia group will be indemnified against any claims or actions due to guarantees or similar commitments made by companies in the Skandia group within the property and casualty insurance business transferred to the If Group.
 
With respect to certain IT systems that If and Sampo use jointly, If has undertaken to indemnify Sampo for any costs that Sampo may incur in relation to the owner of the systems.
 
If P&C Holding Ltd and If P&C Insurance Ltd have separately entered into contracts with Försäkringsaktiebolaget Skandia (publ.) and Tryg-Baltica Forsikrings AS whereby Skandia and Tryg-Baltica will be indemnified against any claims attributable to guarantees issued by Försäkringsaktiebolaget Skandia (publ.) and Vesta Forsikring AS, on behalf of Skandia Marine Insurance Company (U.K.) Ltd. (now Marlon Insurance Company Ltd.) in favor of the Institute of London Underwriters. Marlon Insurance Company Ltd. was disposed during 2007, and the purchaser issued a guarantee in favour of If for the full amount that If may be required to pay under these guarantees.
 
If P&C Holding Ltd has issued a guarantee to the benefit of TietoEnator Corporation whereby If Holdings guarantees the commitments incurred by the If Group company If It Services A/S with TietoEnator based on an agreement covering IT-services. The guarantee will indemnify TietoEnator if If IT Services A/S is declared bankrupt, suspends payments in general, seeks a composition of creditors or in any other way is deemed to be insolvent.
 
If P&C Holding Ltd has issued a guarantee to the benefit of Svenska Handelsbanken Ab (publ) whereby If Holdings guarantees the commitments incurred by the If P&C Insurance Ltd deriving from short term credits up to an amount of EURm 56 and for commitments deriving from derivates transaction and - on behalf of - If P&C Insurance Ltd, If P&C Insurance Company Ltd and Capital Assurance Company for those companies commitments relating to Letters of Credits issued on behalf of their insurance operations. Capital Assurance Company Inc was sold during 2008, and the purchaser issued a guarantee in favor of If for the amount that If may be required to pay under the standby letters of credit pertaining to Capital Assurance Company Inc.
 
If P&C Insurance Company Ltd has outstanding commitments to private equity funds totalling EURm 43, which is the maximum amount that the company has committed to invest in the funds. Capital will be called to these funds over several years as the funds make investments.
 
If P&C Insurance Ltd has according to a shareholders’ agreement between the shareholders in Hemfosa Fastigheter AB committed to up until 30 June 2014 supply the company with a subordinated loan (shareholders’ loan) up to a maximum amount of EURm 11.
               
Life insurance            
               
EURm         2010 2009
Off-balance sheet items            
  Fund commitments         348 357
               
Other commitments            
  Acquisition of IT-software         2 0
               
Lended securities            
  Domestic shares            
  Number of shares         9,990,868 837,000
  Remaining acquisition cost         112 10
  Fair value         145 11
               
Security lendings can be interrupted at any time and they are secured.
               
EURm         2010 2009
Commitments for non-cancellable operating leases            
  Minimum lease payments            
  not later than one year         2 2
  later than one year and not later than five years         6 7
  later than five years         - 1
Total         8 10
               
Total of sublease payments expected to be received under non-cancellable operating sub-leases at 31 Dec. 0 0
               
Lease and sublease payments recognised as an expense in the period        
  minimum lease payments         -3 -2
  sublease payments         0 0
Total         -3 -2
               
               
Holding            
               
EURm         2010 2009
Off-balance sheet items            
  Subscription liabilities         1 3
               
Assets pledged as collateral for liabilities or contingent liabilities
               
        2010 2009
EURm     Assets pledged Liabilities/ commitments Assets pledged Liabilities/ commitments
Assets pledged as collateral            
Investments            
  Mortgaged collateral notes     - - 15 6
             
EURm         2010 2009
Commitments for non-cancellable operating leases            
  Minimum lease payments            
  not later than one year         1 1
  later than one year and not later than five years         3 3
  later than five years         1 2
Total         5 7
               
               
The Group had at the end of 2009 premises a total of 188,589 m2 (180,872) taken as a lessee. The contracts have been made mainly for 3 to 10 years.
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