ING Direct 2009 Annual Report Download - page 140

Changes in provision for unearned premiums and unexpired risks
Provision net of reinsurance Reinsurance contracts
Insurance and
investment contracts
2009 2008 2009 2008 2009 2008
Opening balance 1,756 2,614 13 99 1,769 2,713
Changes in the composition of the group –1,454 –643 –11 –93 –1,465 –736
302 1,971 26304 1,977
Premiums written 1,702 4,747 70 196 1,772 4,943
Premiums earned during the year –1,704 –4,719 –68 –190 –1,772 –4,909
Exchange rate differences 58 –231 –1 58 –232
Other changes 3–12 23–10
Closing balance 361 1,756 413 365 1,769
Changes in the composition of the group in 2009 relate mainly to the sale of ING Canada. Reference is made to Note 30 ‘Companies
acquired and companies disposed’.
Changes in claims provisions
Provision net of reinsurance Reinsurance contracts
Insurance and
investment contracts
2009 2008 2009 2008 2009 2008
Opening balance 5,340 6,172 202 475 5,542 6,647
Changes in the composition of the group –2,366 –401 –110 –135 –2,476 –536
2,974 5,771 92 340 3,066 6,111
Additions
– for the current year 1,111 2,934 21 –93 1,132 2,841
– for prior years –361 –583 –6 –12 –367 –595
– interest accrual of provision 277 291 277 291
1,027 2,642 15 –105 1,042 2,537
Claim settlements and claim settlement costs
– for the current year 485 1,399 28487 1,407
– for prior years 574 1,209 10 18 584 1,227
1,059 2,608 12 26 1,071 2,634
Exchange rate differences 95 –407 4–26 99 –433
Other changes 36 –58 219 38 –39
Closing balance 3,073 5,340 101 202 3,174 5,542
Changes in the composition of the group in 2009 relate mainly to the sale of ING Canada. Reference is made to Note 30 ‘Companies
acquired and companies disposed’.
ING Group had an outstanding balance of EUR 42 million as at 31 December 2009 (2008: EUR 52 million) relating to environmental and
asbestos claims of the insurance operations. In establishing the liability for unpaid claims and claims adjustment expenses related to
asbestos related illness and toxic waste clean-up, the management of ING Group considers facts currently known and current legislation
and coverage litigation. Liabilities are recognised for IBNR claims and for known claims (including the costs of related litigation) when
sufficient information has been obtained to indicate the involvement of a specific insurance policy, and management can reasonably
estimate its liability. In addition, liabilities are reviewed and updated regularly.
Where discounting is used in the calculation of the claims provisions, based on weighted averages, the rate is within the range of 3.0%
to 4.0% (2008: 3.0% to 4.0%).
2.1 Consolidated annual accounts
ING Group Annual Report 2009
138
Notes to the consolidated balance sheet of ING Group (continued)