annual report 2020 - Flipbook - Side 34
INDUSTRIENS PENSIONSFORSIKRING A/S ANNUAL REPORT 2020
and costs, fixed at best estimate. The yield curve
defined in the Executive Order on Presentation
of Financial Statements is applied as the
discount rate. Industriens Pension applies the
EIOPA yield curve without volatility adjustments.
When calculating the life-assurance provisions,
a risk margin has been added, which constitutes
the amount likely to be payable to a buyer of lifeassurance products in order for the buyer to be
willing to accept the risk that the costs
associated with settling the portfolio deviate
from the calculated present value of the
expected cash flows.
The provisions contain an estimated amount to
cover benefits from insured events occurring in
the financial year but not reported at the end of
the financial year.
In the notes, life-assurance provisions are
divided into guaranteed benefits and into
individual and collective bonus potentials.
Guaranteed benefits include commitments to
pay the benefits attached to the pension
scheme. Guaranteed benefits are calculated as
the present value of the expected future
benefits, as well as the present value of the
expected future expenses for administration of
the insurance policy, less the present value of
the agreed future premiums. The risk margin is
added to this.
Individual bonus potentials include the ability to
provide a bonus in the future and are calculated
as members’ savings less the present value of
the guaranteed benefits. The bonus potential
cannot be negative. Collective bonus potentials
include the members’ share of realised results,
and these are allocated collectively to future
bonuses.
NOTES
associated with settling the portfolio deviate
from the calculated present value of the
expected cash flows.
Life-assurance provisions at market rate
Life-assurance provisions at market rate are
calculated at the fair value of the related assets.
The provisions also include provisions for claims
outstanding and bonus provisions for the group
life scheme for death, disability and critical
illness.
Provisions for bonus and premium rebates
Provisions for bonus and premium rebates are
amounts in sickness and accident insurance
provided for the policy holders owing to a
favourable result in the financial year or previous
years.
Contingent liabilities
Commitments
regarding
pledges
on
investments, guarantees and sureties etc. on
non-insurance matters are disclosed in a note to
the annual report (see note 17).
Key figures and financial ratios
The company’s financial ratios have been
calculated in accordance with the regulations in
the Executive Order on Presentation of Financial
Statements.
Deferred tax liabilities
Provisions for claims outstanding amount to the
present value of expected future payments
pertaining to insurance events occurring under
the group life scheme as well as bonus
provisions for this scheme, denoting saved-up
profits for use in reducing future premiums.
Deferred tax liabilities are calculated on the
basis of temporary differences between
accounting and tax values of assets and
liabilities included in the collective tax basis
(basis for tax on yields of certain pensionscheme assets at institution level).
Provisions for claims outstanding for
sickness and accident insurance
Deferred tax on yields of certain pensionscheme assets is offset against deferred tax
assets relating to tax on yields of certain
pension-scheme assets.
These include insurance benefits due but not
yet paid, including bonuses as well as an
estimate of expected payments pertaining to
insurance events occurring in the financial year
or earlier under the sickness and accident
scheme.
Provisions for claims outstanding settled by
regular payments have been calculated as the
present value of expected future payments,
including costs, applying the yield curve defined
in the Executive Order on Presentation of
Financial Statements.
Risk margin on sickness and accident
insurance
The risk margin includes the amount likely to be
payable to a buyer of sickness and accident
insurance products in order for the buyer to be
willing to accept the risk that the costs
Debt to credit institutions
Debt to credit institutions includes debt related
to commitments to repurchase securities in
repurchase agreements. The debt is measured
at fair value.
Other debt
Derivative financial instruments are measured at
fair value. Derivative financial instruments with
negative fair value are included under other
debt. Other amounts payable included under
other debt are measured at amortised cost,
which normally corresponds to the nominal
value.
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