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Notes to the Group’s Financial Statements

3 Claims incurred
P&C insurance
2014 2013
EURm Gross Ceded Net Gross Ceded Net
P&C insurance
Claims cost attributable to current-year operations
Claims paid -1,643 14 -1,629 -1,718 21 -1,697
Change in provision for claims outstanding (incurred and reported losses) -695 15 -680 -715 19 -696
Change in provision for claims outstanding (incurred but not reported losses, IBNR) -594 11 -583 -633 13 -620
Claims-adjustment costs -8 - -8 -4 0 -4
Change in claims provision for annuities -10 - -10 -7 0 -7
Total claims cost attributable to current-year operations -2,951 41 -2,910 -3,078 53 -3,025
Claims costs attributable to prior-year operations
Claims paid -1,199 181 -1,019 -1,274 165 -1,108
Annuities paid -255 0 -255 -77 0 -77
Change in provision for claims outstanding (incurred and reported losses) 798 -183 615 915 -140 775
Change in provision for claims outstanding (incurred but not reported losses, IBNR) 687 -21 666 508 -18 489
Total claims cost attributable to prior-year operations 32 -24 8 71 7 79
Insurance claims paid
Claims paid -2,843 195 -2,648 -2,991 186 -2,805
Annuities paid -127 - -127 -129 - -129
Total claims paid -2,969 195 -2,774 -3,120 186 -2,935
Change in provision for claims outstanding
Change in provision for claims outstanding (incurred and reported losses) 103 -168 -65 199 -121 79
Change in provision for claims outstanding (incurred but not reported losses, IBNR) -88 -10 -98 -126 -5 -131
Change in claims provision for annuities 43 0 43 45 0 45
Claims-adjustment costs -8 - -8 -4 - -4
Total change in provision for claims outstanding 50 -178 -128 114 -126 -11
P&C insurance, total -2,919 17 -2,902 -3,006 60 -2,946
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 2014 amounted to EURm 257 (282). The non-discounted value was EURm 388 (453). The exchange effect on the discounted provisions was an increase of EURm 16. The real decrease EURm 26 is explained by the model adjustment for Motor Third Party Liability and Workers' Compensation insurances.
Interest rate used in calculating the technical provisions of annuities (%)
2014 2013
Sweden 1,75% 1,19%
Finland 2,00% 2,50%
Denmark 1,47% 2,00%
Life insurance
Claims paid Change in provision for claims outstanding Claims incurred
EURm 2014 2013 2014 2013 2014 2013
Insurance contracts
Life insurance
Contracts with discretionary participation feature (DPF) -45 -50 1 -0 -44 -50
Other contracts -0 -0 -12 -0 -12 -0
Unit-linked contracts -177 -160 0 0 -177 -160
Total -223 -211 -11 0 -233 -210
Pension insurance
Contracts with discretionary participation feature (DPF) -350 -344 35 24 -316 -320
Unit-linked contracts -13 -12 -23 -16 -36 -29
Total -364 -357 12 8 -351 -349
Assumed reinsurance -1 -1 1 -1 0 -2
Insurance contracts total, gross -587 -568 3 7 -585 -560
Reinsurers´ share 3 3 -0 -1 3 2
Insurance contracts total, net -585 -565 3 7 -582 -559
Investment contracts
Capital redemption policies
Contracts with discretionary participation feature (DPF) -0 -1 - - -0 -1
Unit-linked contracts -294 -172 - - -294 -172
Investment contracts, total -294 -173 - - -294 -173
Life insurance, total -879 -738 3 7 -876 -731
Claims paid by type of benefit
EURm 2014 2013
Insurance contracts
Life insurance
Surrender benefits -8 -10
Death benefits -21 -21
Maturity benefits -5 -9
Loss adjustment expenses -0 -0
Other -10 -10
Total -45 -50
Life insurance, unit-linked
Surrender benefits -114 -115
Death benefits -50 -34
Maturity benefits -13 -12
Loss adjustment expenses -0 0
Total -177 -160
Pension insurance
Pension payments -319 -319
Surrender benefits -25 -20
Death benefits -6 -5
Loss adjustment expenses -0 -0
Total -350 -344
Pension insurance, unit-linked
Surrender benefits -10 -9
Death benefits -3 -4
Other -0 -0
Total -13 -12
Assumed reinsurance -1 -1
Insurance contracts total, gross -587 -569
Reinsurers´ share 3 3
Insurance contracts total, net -585 -565
Investment contracts
Capital redemption policy, with-profit
Surrender benefits -0 -0
Loss adjustment expenses - -0
Total -0 -1
Investment contracts
Capital redemption policy, unit-linked
Surrender benefits -316 -170
Loss adjustment expenses 22 -2
Total -294 -172
Investment contracts total, gross -295 -173
Claims paid total, gross -882 -741
Claims paid total, net -879 -738
Elimination items between segments 8 -
EURm 2014 2013
Group, total -3,771 -3,677
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