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Notes to the Accounts

3 Claims Incurred  
                 
P&C insurance          
                 
    2010 2009  
EURm Gross Ceded Net Gross Ceded Net  
P&C insurance              
  Claims cost attributable to current-year operations              
  Claims paid -1,555 20 -1,534 -1,345 23 -1,321  
  Claims portfolio 14 - 14 - - -  
  Change in provision for claims outstanding (incurred and reported losses) -782 110 -672 -674 67 -607  
  Change in provision for claims outstanding (incurred but not reported losses, IBNR) -605 17 -588 -631 18 -613  
  Claims-adjustment costs -13 - -13 -8 - -8  
  Change in claims provision for annuities -9 - -9 -15 - -15  
  Total claims cost attributable to current-year operations -2,950 147 -2,803 -2,673 108 -2,564  
                 
  Claims costs attributable to prior-year operations              
  Claims paid -1,149 96 -1,053 -1,103 66 -1,037  
  Annuities paid -28 - -28 -25 - -25  
  Claims portfolio -5 - -5 -14 14 0  
  Change in provision for claims outstanding (incurred and reported losses) 743 -103 640 703 -36 667  
  Change in provision for claims outstanding (incurred but not reported losses, IBNR) 592 -33 559 513 -31 482  
  Total claims cost attributable to prior-year operations 154 -40 113 74 13 87  
                 
  Insurance claims paid              
  Claims paid -2,704 116 -2,588 -2,448 89 -2,358  
  Annuities paid -39 - -39 -34 - -34  
  Claims portfolio 9 - 9 -14 14 0  
  Total claims paid -2,734 116 -2,618 -2,496 103 -2,393  
                 
  Change in provision for claims outstanding              
  Change in provision for claims outstanding (incurred and reported losses) -39 7 -32 29 31 61  
  Change in provision for claims outstanding (incurred but not reported losses, IBNR) -13 -16 -29 -109 -13 -122  
  Change in claims provision for annuities 3 - 3 -8 0 -8  
  Claims-adjustment costs -13 - -13 -15 0 -15  
  Total change in provision for claims outstanding -62 -9 -71 -103 18 -85  
                 
P&C insurance, total -2,796 107 -2,689 -2,598 121 -2,477  
                 
The provision for annuities is valued in accordance with normal actuarial principles taking anticipated inflation and mortality into consideration, and discounted to take the anticipated future investment return into account. To cover costs for the costs for the upward adjustment of annuity provisions required for the gradual reversal of such discounting, an anticipated return is added to the annuity results. Provisions for incurred but not reported losses pertaining to annuities in Finland are discounted. The provisions in 2010 amounted to EURm 281 (290). The non-discounted value was EURm 472 (444). The change is partly due to foreign exchange effects and partly to porlonged estimated payment pattern.  
                 
Interest rate used in calculating the technical provisions of annuities (%)  
                 
              2010 2009
  Sweden           1.3 % 1.5 %
  Finland           3.1 % 3.2 %
  Denmark           2.0 % 2.0 %
                 
                 
Life insurance              
           
    Claims paid Provision
for claims
outstanding
Claims incurred
EURm 2010 2009 2010 2009 2010 2009  
Insurance contracts              
  Life insurance              
  Contracts with discretionary participation feature (DPF) -68 -76 1 -2 -67 -78  
  Other contracts 0 -2 0 0 0 -2  
  Unit-linked contracts -153 -121 -2 1 -155 -120  
  Total -222 -199 -1 -1 -223 -200  
                 
  Pension insurance              
  Contracts with discretionary participation feature (DPF) -331 -306 -64 -65 -395 -371  
  Unit-linked contracts -10 -6 -1 -1 -11 -7  
  Total -342 -312 -65 -66 -407 -378  
                 
  Assumed reinsurance -1 0 0 0 -1 0  
                 
Insurance contracts total, gross -564 -511 -66 -67 -629 -577  
               
Reinsurers´ share 4 4 0 0 4 4  
               
Insurance contracts total, net -560 -507 -66 -67 -626 -574  
               
Investment contracts              
  Capital redemption policies              
  Contracts with discretionary participation feature (DPF) -37 -27 - - -37 -27  
  Unit-linked contracts -181 -27 - - -181 -27  
  Investment contracts, total -218 -53 - - -218 -53  
                 
Life insurance, total -778 -560 -66 -67 -844 -628  
                 
                 
Claims paid by type of benefit              
                 
EURm         2010 2009  
Insurance contracts              
  Life insurance              
  Surrender benefits         -9 -15  
  Death benefits         -26 -24  
  Maturity benefits         -26 -32  
  Loss adjustment expenses         0 0  
  Other         -8 -8  
  Total         -69 -78  
                 
  Life insurance, unit-linked              
  Surrender benefits         -90 -71  
  Death benefits         -23 -21  
  Maturity benefits         -40 -29  
  Loss adjustment expenses         - 0  
  Other         - 0  
  Total         -153 -121  
                 
  Pension insurance              
  Pension payments         -303 -291  
  Surrender benefits         -24 -9  
  Death benefits         -4 -7  
  Loss adjustment expenses         0 0  
  Other         - 0  
  Total         -331 -306  
                 
  Pension insurance, unit-linked              
  Pension payments         -2 -1  
  Surrender benefits         -7 -3  
  Death benefits         -2 -1  
  Other         0 0  
  Total         -10 -6  
                 
Assumed reinsurance         -1 0  
               
Insurance contracts total, gross         -564 -511  
               
Reinsurers´ share         4 4  
               
Insurance contracts total, net         -560 -507  
               
Investment contracts              
  Capital redemption policy, with-profit              
  Surrender benefits         -23 -1  
  Loss adjustment expenses         -14 -26  
  Other         - 0  
  Total         -37 -27  
                 
Investment contracts              
  Capital redemption policy, unit-linked              
  Surrender benefits         -178 -25  
  Loss adjustment expenses         -2 -2  
  Total         -181 -27  
                 
Investment contracts total, gross         -218 -53  
               
Claims paid total, gross         -782 -564  
Claims paid total, net         -778 -560  
               
Group, total         -3,533 -3,105  
                 
                 
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