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Notes to the Group’s Financial Statements

15 Financial assets
Group's financial assets comprise investments in derivatives, financial assets designated as at fair value through p/l, loans and receivables, available-for-sale financial assets and investments in subsidiaries. The Holding segment includes also investments in subsidiaries.
The Group uses derivative instruments for trading and for hedging purposes. The derivatives used are foreign exchange, interest rate and equity derivatives. Fair value hedging has been applied during the financial year both in P&C and Life insurance.
EURm 2014 2013
P&C insurance
Derivative financial instruments 42 5
Loans and receivables 238 246
Financial assets available-for-sale 10,741 11,014
P&C insurance, total 11,021 11,265
Life insurance
Derivative financial instruments 3 33
Financial assets designated as at fair value through p/l 48 48
Loans and receivables 27 19
Financial assets available-for-sale 5,587 5,023
Life insurance, total 5,665 5,122
Holding
Derivative financial instruments 34 41
Loans and receivables 1 1
Financial assets available-for-sale 555 737
Investments in subsidiaries 2,370 2,370
Holding, total 2,959 3,148
Elimination items between segments -2,715 -2,712
Group, total 16,930 16,824
P&C insurance
Derivative financial instruments
2014 2013
Contract/ Fair value Contract/ Fair value
EURm notional
amount
Assets Liabilities notional
amount
Assets Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Intrerest rate swaps 68 - -2 1,165 - 4
Exchange traded derivatives
Interest rate futures 85 - -1 85 1 1
Total interest rate derivatives 153 - -3 1,250 1 5
Foreign exchange derivatives
OTC derivatives
Currency forwards 2,714 41 20 2,147 4 20
Currency options, bought and sold 294 2 1 42 0 -
Total foreign exchange derivatives 3,008 42 21 2,189 4 20
Total derivatives held for trading 3,162 42 18 3,439 5 25
Other financial assets
EURm 2014 2013
Loans and receivables
Deposits with ceding undertakings 1 1
Other 237 245
Total loans and receivables 238 246
Financial assets available-for-sale
Debt securities
Issued by public bodies 1,606 1,327
Certificates of deposit issued by banks 3,031 2,741
Other debt securities 4,551 5,462
Total debt securities 9,188 9,531
Equity securities
Listed 1,365 1,277
Unlisted 188 207
Total 1,553 1,483
Total financial assets available-for-sale 10,741 11,014
Financial assets available-for-sale for P&C insurance include impairment losses EURm 243 (242).
P&C insurance, total financial assets 11,021 11,265
Life insurance
Derivative financial instruments
2014 2013
Contract/ Fair value Contract/ Fair value
EURm notional
amount
Assets Liabilities notional
amount
Assets Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Interest rate swaps 1,443 - 19 5,978 25 7
Credit risk swaps 577 - 1 508 0 2
Total 2,019 - 20 6,486 25 10
Foreign exchange derivatives
OTC derivatives
Currency forwards 1,184 1 14 955 7 1
Currency options, bought and sold 193 2 1 0 0 0
Total foreign exchange derivatives 1,377 3 15 955 7 1
Equity derivatives
OTC derivatives
Equity and equity index options 1 0 0 1 0 0
Total derivatives held for trading 3,398 3 35 7,441 32 11
Derivatives held for hedging
Fair value hedges
Currency forwards 583 0 50 501 1 0
Interest rate swaps 0 0 0
Total 583 0 50 501 1 0
Total derivatives held for hedging 583 0 50 501 1 0
Total derivatives 3,981 3 86 7,942 33 11
Fair value hedges
Fair value hedging is used to hedge a proportion of foreign exchange and interest risk in available-for-sale financial assets. The interest elements of forward contracts have been excluded from hedging relationships in foreign exchange hedges. Net result from exchange derivatives designated as fair value hedges amounted to EURm -74 (18). Net result from hedged risks in fair value hedges of available for sale financial assets amounted to EURm 74 (-18).
Cash flow hedges
The interest rate derivatives hedging cash flows fell due in 2013 and no new cash flow hedges have been started.
Other financial assets
EURm 2014 2013
Financial assets designated as at fair value
through p/l
Debt securities
Issued by public bodies 1 11
Issued by banks 4 35
Other debt securities 43 -
Total debt securities 47 46
Listed equity securities 2 2
Total financial assets designated as at fair value
through p/l
48 48
Loans and receivables
Deposits with ceding undertakings - 1
Loans 27 18
Total loans and receivables 27 19
Financial assets available-for-sale
Debt securities
Issued by public bodies 388 727
Issued by banks 889 632
Other debt securities 1,619 1,548
Total debt securities 2,895 2,907
Equity securities
Listed 1,852 1,379
Unlisted 839 737
Total 2,691 2,116
Total financial assets available-for-sale 5,587 5,023
Financial assets available-for-sale for life insurance include impairment losses EURm 41 (33).
Life insurance, total financial assets 5,665 5,122
Financial assets available for sale / debt securities: Debt securities available for sale include EURm 1,963 (2,553) investments in bonds and EURm 932 (354) investments in money market instruments.
Financial assets available for sale /shares and participations: Listed equity securities include EURm 632 (641) listed equities. Unlisted equity securities include EURm 708 (640) investments in capital trusts.
Holding
Derivative financial instruments
2014 2013
Contract/ Fair value Contract/ Fair value
EURm notional
amount
Assets Liabilities notional
amount
Assets Liabilities
Derivatives held for trading
Interest derivatives
OTC-derivatives
Interest rate swaps 800 23 - 800 26 -
Credit risk swaps - - - 20 0 -
Total interest derivatives 800 23 0 820 26 -
Foreign exchange derivatives
OTC-derivatives
Currency forwards 3 1 0 21 0 1
Equity derivatives
Exchange traded derivatives
Equity and euqity index options 69 10 11 88 14 16
Total derivatives 872 34 11 930 41 18
Other financial assets
EURm 2014 2013
Loans and receivables
Deposits 1 1
Financial assets available-for-sale
Debt securities
Certificates of deposit issued by banks 110 350
Other debt securities 360 360
Total debt securities 470 709
Equity securities
Listed 41 7
Unlisted 45 21
Total 85 28
Total financial assets available-for-sale 555 737
Financial assets available-for-sale for Holding business do not include impairment losses.
Investments in subsidiaries 2,370 2,370
Holding, total financial assets 2,959 3,148
Elimination items between segments -2,715 -2,712
EURm 2014 2015
Group, total 16,930 16,824
Note
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