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Notes to the Accounts

2 Net Income from Investments
             
P&C insurance
             
EURm     2010 2009
Financial assets        
  Derivative financial instruments      
    Gains/losses     28 55
             
Financial assets designated as at fair value through p/l    
  Debt securities      
    Interest income     4 9
    Gains/losses     2 19
  Equity securities      
    Gains/losses     2 10
    Dividend income     1 0
Total     9 38
             
Loans and receivables      
    Interest income     13 13
             
Financial assets available-for-sale      
  Debt securities      
    Interest income     358 366
    Impairment losses     -3 1
    Gains/losses     91 44
  Equity securities      
    Gains/losses     66 18
    Impairment losses     -19 -86
    Dividend income     27 14
Total     519 357
             
Total from financial assets   569 463
             
Other assets      
  Investment properties      
    Gains/losses     -1 0
    Other     -1 -1
Total from other assets   -2 0
             
Expense on other than financial liabilities -16 -3
         
Effect of discounting annuities -58 -59
         
Fee and commission expenses      
    Asset management     -8 -6
P&C insurance, total   487 394
             
Net income from investments includes exchange differences    
    Arising from insurance business     -4 13
    Arising from investments     29 -16
             
Included in gains/losses from financial assets available-for-sale is a net gain of EURm -143 (26) transferred from the fair value reserve.
             
Life insurance
             
EURm   2010 2009
Financial assets      
  Derivative financial instruments    
    Gains/losses     -7 50
             
Financial assets designated as at fair value through p/l    
  Debt securities      
    Interest income     3 3
    Gains/losses     2 2
  Equity securities      
    Gains/losses     0 0
    Dividend income     0 0
Total   6 6
             
Investments related to unit-linked contracts    
  Debt securities      
    Interest income     27 13
    Gains/losses     21 30
  Equity securities      
    Gains/losses     281 314
    Dividend income     2 0
  Loans and receivables      
    Interest income     -1 0
  Other financial assets      
    Gains/losses     2 2
Total   333 359
             
Loans and receivables      
    Interest income     4 4
    Gains/losses     0 0
Total   4 4
             
Financial assets available-for-sale      
  Debt securities      
    Interest income     151 184
    Gains/losses     38 5
  Equity securities      
    Gains/losses     72 109
    Impairment losses     -7 -140
    Dividend income     42 27
Total   297 184
             
Total financial assets   631 604
             
Other assets      
  Investment properties      
    Gains/losses     0 15
    Impairment losses     0 0
    Other     5 6
Total other assets     5 20
             
Net fee income        
    Asset management     -15 -13
    Fee income     23 17
Total     8 5
             
Life insurance, total   645 629
             
Net income from investments includes exchange differences    
  Arising from investments   9 1
             
Included in gains/losses from financial assets available-for-sale is a net gain of EURm 86 (-21) transferred from the fair value reserve.
             
             
Holding        
             
EURm     2010 2009
Financial assets      
  Derivative financial instruments      
    Gains/losses     26 15
             
  Loans and receivables      
    Interest income     1 1
    Gains/losses     20 7
Total   21 8
             
Financial assets available-for-sale      
  Debt securities      
    Interest income     9 19
    Gains/losses     1 -4
  Equity securities      
    Gains/losses     0 -19
    Impairment losses     -1 -1
    Dividend income     2 81
Total   11 77
             
Total financial assets   58 100
             
Other assets      
  Investment properties      
    Gains/losses     2 1
    Other     0 0
Total other assets   2 1
         
Net fee income   1 8
         
Holding, total   60 109
             
Included in gains/losses from financial assets available-for-sale is a net gain of EURm 1 (23) transferred from the fair value reserve.
             
Elimination items between segments -9 24
         
Group, total   1,183 1,155
             
The changes in the fair value reserve are disclosed in the Statement of changes in equity.
 
Other income and expenses comprise rental income, maintenance expenses and depreciation of investment property.
 
All the income and expenses arising from investments are included in Net income from investments. Gains/losses include realised gains/losses on sales, unrealised and realised changes in fair values and exchange differences. Unrealised fair value changes for financial assets available-for-sale are recorded in other comprehensive income and presented in the fair value reserve in equity.
 
The effect of discounting annuities in P&C insurance is disclosed separately. The provision for annuities is calculated in accordance with actuarial principles taking anticipated inflation and mortality into consideration, and discounted to take the anticipated future return on investments into account. To cover the costs for upward adjustment of annuity provisions required for the gradual reversal of such discounting, an anticipated return on investments is added to annuity results.
             
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