ING Direct 2008 Annual Report Download - page 130

2.1 Consolidated annual accounts
17 INSURANCE AND INVESTMENT CONTRACTS, REINSURANCE CONTRACTS
The gross amounts for provisions for insurance and investment contracts, net of reinsurance (i.e. the provision for ING’s own account)
is presented in the balance sheet gross under ‘Insurance and investment contracts’ and ‘Reinsurance contracts’.
Insurance and investment contracts, reinsurance contracts
Provision net of reinsurance Reinsurance contracts
Insurance and
investment contracts
2008 2007 2008 2007 2008 2007
Provision for non-participating life policy liabilities 67,120 70,401 4,822 4,481 71,942 74,882
Provision for participating life policy liabilities 55,266 54,645 217 175 55,483 54,820
Provision for (deferred) profit sharing and rebates 147 1,601 25149 1,606
Provision for life insurance for risk of policyholders 84,279 100,753 541 639 84,820 101,392
Life insurance provisions 206,812 227, 4 0 0 5,582 5,300 212,394 232,700
Provision for unearned premiums and unexpired risks 1,756 2,614 13 99 1,769 2,713
Reported claims provision 3,995 5,051 202 475 4,197 5,526
Claims incurred but not reported (IBNR) 1,345 1,121 1,345 1,121
Claims provisions 5,340 6,172 202 475 5,542 6,647
Total provisions for insurance contracts 213,908 236,186 5,797 5,874 219,705 242,060
Investment contracts for risk of company 9,804 9,520 9,804 9,520
Investment contracts for risk of policyholders 11,281 14,132 11,281 14,132
Total provisions for investment contracts 21,085 23,652 21,085 23,652
Total 234,993 259,838 5,797 5,874 240,790 265,712
For insurance contracts with discretionary participation features a deferred profit sharing liability is recognised for the full amount of the
unrealised revaluation on allocated investments. Upon realisation, the profit sharing on unrealised revaluation is reversed and a deferred
profit sharing liability is recognised for the share of realised results on allocated investments that is expected to be shared with
policyholders. The deferred profit sharing liability is reduced by the actual allocation of profit sharing to individual policyholders. The
change in the deferred profit sharing liability (net of deferred tax) is recognised in equity in the Revaluation reserve. The deferred profit
sharing liability is included in Provision for (deferred) profit sharing and rebates and amounts to EUR –876 million as at 31 December 2008
(2007: EUR 318 million).
Changes in life insurance provisions
Provision net of reinsurance Reinsurance contracts
Insurance and
investment contracts
2008 2007 2008 2007 2008 2007
Opening balance 227,400 231,946 5,300 5,773 232,700 237,719
Changes in the composition of the group –15,050 –3,475 –25 2–15,075 –3,473
212,350 228,471 5,275 5,775 217,625 234,246
Current year provisions 33,078 27,224 884 139 33,962 27, 363
Change in deferred profit sharing liability –1,169 –1,546 –1,169 –1,546
Prior year provisions:
– benefit payments to policyholders –24,626 –21,933 –719 –82 –25,345 –22,015
– interest accrual 4,059 6,794 –15 –40 4,044 6,754
– valuation changes for risk of policyholders –32,408 5,612 –32,408 5,612
– effect of changes in discount rate assumptions –1 –1
– effect of changes in other assumptions –32 2 –32 2
–53,008 –9,525 –734 –122 –53,742 –9,647
Exchange rate differences 9,918 –15,583 259 –501 10,177 –16,084
Other changes 5,643 –1,641 –102 95,541 –1,632
Closing balance 206,812 227, 4 0 0 5,582 5,300 212,394 232,700
Changes in the composition of the group in 2008 relate mainly to the sale of ING Life Taiwan. Reference is made to Note 21 ‘Other
liabilities’.
Notes to the consolidated balance sheet of ING Group (continued)
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