Sampo Group’s Online Annual Report 2012 and Sampo’s video ‘25 Years as a Listed Company’ have been granted the international Red Dot Communication Design 2013 Awards.

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Notes to the Group’s financial statements

3 Claims incurred
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P&C insurance
  2012 2011
EURm Gross Ceded Net Gross Ceded Net
P&C insurance            
  Claims cost attributable to current-year operations            
  Claims paid -1,694 30 -1,665 -1,680 27 -1,653
  Change in provision for claims outstanding (incurred and reported losses) -894 166 -727 -834 126 -708
  Change in provision for claims outstanding (incurred but not reported losses, IBNR) -622 13 -609 -589 17 -572
  Claims-adjustment costs 2 - 2 3 - 3
  Change in claims provision for annuities -9 - -9 -7 - -7
  Total claims cost attributable to current-year operations -3,218 209 -3,009 -3,107 171 -2,936
               
  Claims costs attributable to prior-year operations            
  Claims paid -1,341 139 -1,203 -1,146 96 -1,049
  Annuities paid -105 0 -105 -196 0 -196
  Claims portfolio - - - - - 0
  Change in provision for claims outstanding (incurred and reported losses) 938 -100 837 833 -104 729
  Change in provision for claims outstanding (incurred but not reported losses, IBNR) 647 -44 603 677 -25 652
  Total claims cost attributable to prior-year operations 139 -6 133 169 -33 135
               
  Insurance claims paid            
  Claims paid -3,036 168 -2,867 -2,826 124 -2,702
  Annuities paid -127 - -127 -121 - -121
  Total claims paid -3,163 168 -2,994 -2,947 124 -2,823
               
  Change in provision for claims outstanding            
  Change in provision for claims outstanding (incurred and reported losses) 44 66 110 0 22 22
  Change in provision for claims outstanding (incurred but not reported losses, IBNR) 25 -31 -6 88 -8 80
  Change in claims provision for annuities 13 0 13 -82 - -82
  Claims-adjustment costs 2 - 2 3 - 3
  Total change in provision for claims outstanding 84 35 119 9 14 23
               
P&C insurance, total -3,079 203 -2,876 -2,938 138 -2,801
               
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 2012 amounted to EURm 289 (274).
               
The non-discounted value was EURm 513 (492). The exchange effect on the discounted provisions was a decrease of EURm 11, the real increase amounted to EURm 14. The increase is partly explained by the decrease in the discount rate in Finland from 3.15 % to 3.0 %.
 
Interest rate used in calculating the technical provisions of annuities (%):
    2012 2011
Sweden         0.18 % 0.24 %
Finland         3.00 % 3.15 %
Denmark         2.00 % 2.00 %
               
               
Life insurance
  Claims paid Change in provision for
claims outstanding
Claims incurred
EURm 2012 2011 2012 2011 2012 2011
Insurance contracts            
  Life insurance            
  Contracts with discretionary participation feature (DPF) -77 -84 -3 1 -80 -83
  Other contracts 0 0 -1 0 -1 0
  Unit-linked contracts -155 -187 4 -3 -152 -190
  Total -233 -271 0 -2 -233 -273
               
  Pension insurance            
  Contracts with discretionary participation feature (DPF) -346 -353 51 -114 -296 -467
  Unit-linked contracts -10 -9 -10 -1 -20 -10
  Total -357 -362 41 -115 -315 -478
               
  Assumed reinsurance -1 -1 0 0 -1 -1
               
Insurance contracts total, gross -590 -634 41 -117 -548 -750
               
Reinsurers´ share 4 3 0 0 4 3
               
Insurance contracts total, net -586 -631 41 -117 -545 -748
               
Investment contracts            
  Capital redemption policies            
  Contracts with discretionary participation feature (DPF) -1 -17 - - -1 -17
  Unit-linked contracts -123 -157 - - -123 -157
  Investment contracts, total -124 -174 - - -124 -174
               
Life insurance, total -710 -805 41 -117 -669 -922
               
               
Claims paid by type of benefit
               
EURm         2012 2011
Insurance contracts            
  Life insurance            
  Surrender benefits         -8 -16
  Death benefits         -26 -25
  Maturity benefits         -33 -35
  Loss adjustment expenses         0 0
  Other         -10 -9
  Total         -77 -84
               
  Life insurance, unit-linked            
  Surrender benefits         -89 -121
  Death benefits         -27 -27
  Maturity benefits         -40 -40
  Loss adjustment expenses         0 0
  Total         -155 -187
               
  Pension insurance            
  Pension payments         -320 -310
  Surrender benefits         -19 -38
  Death benefits         -7 -5
  Loss adjustment expenses         0 0
  Total         -346 -353
               
  Pension insurance, unit-linked            
  Surrender benefits         -8 -8
  Death benefits         -2 -2
  Other         0 0
  Total         -10 -9
               
Assumed reinsurance         -1 -1
               
Insurance contracts total         -590 -634
               
Reinsurers´ share         4 3
               
Insurance contracts total, net         -586 -631
               
Investment contracts            
  Capital redemption policy, with-profit            
  Surrender benefits         0 -1
  Loss adjustment expenses         0 -16
  Total         -1 -17
               
Investment contracts            
  Capital redemption policy, unit-linked            
  Surrender benefits         -123 -157
  Loss adjustment expenses         0 -1
  Total         -123 -157
               
Investment contracts total, gross         -124 -174
               
Claims paid total, gross         -714 -808
Claims paid total, net         -710 -805
               
EURm         2012 2011
Group, total         -3,545 -3,723