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Notes to the Group’s Financial Statements

3 Claims incurred
P&C insurance
2013 2012
EURm Gross Ceded Net Gross Ceded Net
P&C insurance
Claims cost attributable to current-year operations
Claims paid -1,718 21 -1,697 -1,694 30 -1,665
Change in provision for claims outstanding (incurred and reported losses) -715 19 -696 -894 166 -727
Change in provision for claims outstanding (incurred but not reported losses, IBNR) -633 13 -620 -622 13 -609
Claims-adjustment costs -4 0 -4 2 - 2
Change in claims provision for annuities -7 0 -7 -9 - -9
Total claims cost attributable to current-year operations -3,078 53 -3,025 -3,218 209 -3,009
Claims costs attributable to prior-year operations
Claims paid -1,274 165 -1,108 -1,426 139 -1,288
Annuities paid -77 0 -77 -20 -0 -20
Change in provision for claims outstanding (incurred and reported losses) 915 -140 775 938 -100 837
Change in provision for claims outstanding (incurred but not reported losses, IBNR) 508 -18 489 647 -44 603
Total claims cost attributable to prior-year operations 71 7 79 139 -6 133
Insurance claims paid
Claims paid -2,991 186 -2,805 -3,121 168 -2,952
Annuities paid -129 - -129 -42 - -42
Total claims paid -3,120 186 -2,935 -3,163 168 -2,995
Change in provision for claims outstanding
Change in provision for claims outstanding (incurred and reported losses) 199 -121 79 44 66 110
Change in provision for claims outstanding (incurred but not reported losses, IBNR) -126 -5 -131 25 -31 -6
Change in claims provision for annuities 45 0 45 13 -0 13
Claims-adjustment costs -4 - -4 2 - 2
Total change in provision for claims outstanding 114 -126 -12 84 35 119
P&C insurance, total -3,006 60 -2,946 -3,079 203 -2,876
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 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 2013 amounted to EURm 282 (289). The non-discounted value was EURm 453 (513). The exchange effect on the discounted provisions was an increase of EURm 9. The acquired businesses increased the the provision by some EURm 9. The real decrease EURm 15 is partly explained by the model adjustment for Motor Third Party Liability and Workers' Compensation insurances.
Interest rate used in calculating the technical provisions of annuities (%)
2013 2012
Sweden 1.19% 0.18%
Finland 2.50% 3.00%
Denmark 2.00% 2.00%
Life insurance
Claims paid Change in provision for claims outstanding Claims incurred
EURm 2013 2012 2013 2012 2013 2012
Insurance contracts
Life insurance
Contracts with discretionary participation feature (DPF) -50 -77 -0 -3 -50 -80
Other contracts -0 -0 -0 -1 -0 -1
Unit-linked contracts -160 -155 0 4 -160 -152
Total -211 -233 0 0 -210 -233
Pension insurance
Contracts with discretionary participation feature (DPF) -344 -346 24 51 -320 -296
Unit-linked contracts -12 -10 -16 -10 -29 -20
Total -357 -357 8 41 -349 -315
Assumed reinsurance -1 -1 -1 0 -2 -1
Insurance contracts total, gross -568 -590 7 41 -561 -548
Reinsurers´ share 3 4 -1 0 2 4
Insurance contracts total, net -565 -586 7 41 -559 -545
Investment contracts
Capital redemption policies
Contracts with discretionary participation feature (DPF) -1 -1 - - -1 -1
Unit-linked contracts -172 -123 - - -172 -123
Investment contracts, total -173 -124 - - -173 -124
Life insurance, total -738 -710 7 41 -731 -669
Claims paid by type of benefit
EURm 2013 2012
Insurance contracts
Life insurance
Surrender benefits -10 -8
Death benefits -21 -26
Maturity benefits -9 -33
Loss adjustment expenses -0 -0
Other -10 -10
Total -50 -77
Life insurance, unit-linked
Surrender benefits -115 -89
Death benefits -34 -27
Maturity benefits -12 -40
Loss adjustment expenses 0 -0
Total -160 -155
Pension insurance
Pension payments -319 -320
Surrender benefits -20 -19
Death benefits -5 -7
Loss adjustment expenses -0 -0
Total -344 -346
Pension insurance, unit-linked
Surrender benefits -9 -8
Death benefits -4 -2
Other -0 -0
Total -12 -10
Assumed reinsurance -1 -1
Insurance contracts total, gross -569 -590
Reinsurers´ share 3 4
Insurance contracts total, net -565 -586
Investment contracts
Capital redemption policy, with-profit
Surrender benefits -0 -0
Loss adjustment expenses -0 -0
Total -1 -1
Investment contracts
Capital redemption policy, unit-linked
Surrender benefits -170 -123
Loss adjustment expenses -2 -0
Total -172 -123
Investment contracts total, gross -173 -124
Claims paid total, gross -741 -714
Claims paid total, net -738 -710
Elimination items between segments - 4
EURm 2013 2012
Group, total -3,677 -3,541
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