ING Direct 2009 Annual Report Download - page 138

16 OTHER BORROWED FUNDS
Other borrowed funds by remaining term
2009 2010 2011 2012 2013 2014 There after Total
Subordinated loans of group companies 1,107 3,570 1,671 681 81 7,320 14,430
Preference shares of group companies 1,040 1,040
Loans contracted 2,985 74 1,636 4,695
Loans from credit institutions 2,046 201 32 29 24 654 2,986
6,138 3,771 1,703 710 179 10,650 23,151
Other borrowed funds by remaining term
2008 2009 2010 2011 2012 2013 There after Total
Subordinated loans of group companies 553 1,058 1,502 1,706 652 10,398 15,869
Preference shares of group companies 1,071 1,071
Loans contracted 5,590 1,126 1,756 8,472
Loans from credit institutions 4,580 279 180 1746 5,786
10,723 2,463 1,682 1,707 652 13,971 31,198
Subordinated loans of group companies relate to capital debentures and private loans which are subordinated to all current and future
liabilities of ING Bank N.V.
Preference shares of group companies comprise non-cumulative guaranteed Trust Preference Securities which are issued by wholly owned
subsidiaries of ING Groep N.V. These securities have a liquidation preference of a certain amount plus any accrued interest and unpaid
dividend. Dividends with regard to these preference securities are presented as an interest expense in the profit and loss account. These
trust preference securities have no voting rights.
17 INSURANCE AND INVESTMENT CONTRACTS, REINSURANCE CONTRACTS
The provisions for insurance and investment contracts, net of reinsurance (i.e. the provision for ING Group’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
2009 2008 2009 2008 2009 2008
Provision for non-participating life policy liabilities 69,641 67,120 4,798 4,822 74,439 71,942
Provision for participating life policy liabilities 50,102 55,266 200 217 50,302 55,483
Provision for (deferred) profit sharing and rebates 1,600 147 321,603 149
Provision for life insurance for risk of policyholders 99,299 84,279 374 541 99,673 84,820
Life insurance provisions 220,642 206,812 5,375 5,582 226,017 212,394
Provision for unearned premiums and unexpired risks 361 1,756 413 365 1,769
Reported claims provision 2,580 3,995 96 202 2,676 4,197
Claims incurred but not reported (IBNR) 493 1,345 5498 1,345
Claims provisions 3,073 5,340 101 202 3,174 5,542
Total provisions for insurance contracts 224,076 213,908 5,480 5,797 229,556 219,705
Investment contracts for risk of company 5,896 9,804 5,896 9,804
Investment contracts for risk of policyholders 5,406 11,281 5,406 11, 281
Total provisions for investment contracts 11,302 21,085 11,302 21,085
Total 235,378 234,993 5,480 5,797 240,858 240,790
For insurance contracts with discretionary participation features a deferred profit sharing amount 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 amount is recognised for the share of realised results on allocated investments that is expected to be shared with
policyholders. The deferred profit sharing amount is reduced by the actual allocation of profit sharing to individual policyholders. The
change in the deferred profit sharing amount on unrealised revaluation (net of deferred tax) is recognised in equity in the Revaluation
reserve. The deferred profit sharing amount on unrealised revaluation is included in Provision for (deferred) profit sharing and rebates
and amounts to EUR 313 million as at 31 December 2009 (2008: EUR –1,174 million).
2.1 Consolidated annual accounts
ING Group Annual Report 2009
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Notes to the consolidated balance sheet of ING Group (continued)