EKN Årsredovisning 2008

Notes on the income statement and balance sheet

All amounts in SEK thousands.

Note 1. Premium income
2008 2007
Total premium income 524,555 406,369
Premium income, gross 736,178 183,681
Other premium-related costs -135 -93
Premium income, net 736,043 183,588
Changes to claims relating to premiums in arrears, nominal -192,844 226,923
Changes to claims relating to premiums in arrears, adjusted for present value -5,118 -16,003
Changes to claims relating to premiums in arrears, risk adjustment -13,526 11,861
Changes to claims relating to premiums in arrears, net -211,488 222,781
Note 2. Technical reserves for estimated risk in exposure
Provisions for actuarially calculated risk of the exposure: gross (before re-insurance):
Provision for
expected losses
Provision for
unexpected losses
Total provision
OB 2007 -4,120,000 -5,485,000 -9,605,000
Change during the year 255,000 73,000 328,000
CB 2007 / OB 2008 -3,865,000 -5,412,000 -9,277,000
Change during the year -1,239,000 -687,000 -1,926,000
CB 2008 -5,104,000 -6,099,000 -11,203,000
Reinsurer’s share of provisions for actuarially calculated risk in the exposure:
Provision for
expected losses
Provision for
unexpected losses
Total provision
OB 2007 487,000 687,000 1,174,000
Change during the year 31,000 99,000 130,000
CB 2007 / OB 2008 518,000 786,000 1,304,000
Change during the year 168,000 240,000 408,000
CB 2008 686,000 1,026,000 1,712,000
Provisions for actuarially calculated risk in the exposure: net (after re-insurance):
Provision for
expected losses
Provision for
unexpected losses
Total provision
OB 2007 -3,633,000 -4,798,000 -8,431,000
Change during the year 286,000 172,000 458,000
CB 2007 / OB 2008 -3,347,000 -4,626,000 -7,973,000
Change during the year -1,071,000 -447,000 -1,518 000
CB 2008 -4,418,000 -5,073,000 -9,491,000
Note 3. Recoveries
2008 2007
Total recovered claims 433,982 924,908
Principal, own insurance 200,393 720,110
Principal, from re-insurers 42,293 7,535
Principal, re-insurers’ share -3,138 -3,051
Total principal  239,548 724,594
Capitalised interest, own insurance 164,017 248,283
Capitalised interest, from re-insurers 4,930 306
Capitalised interest, re-insurers’ share -160 -131
Total capitalised interest 168,787 248,458
Interest, own insurance 60,347 216,416
Interest, from re-insurers 1,291 2,797
Interest, re-insurers’ share -3,590 -5,200
Total interest 58,048 214,013
Recovered claims without specific allocation -32,401 -262,157

Recoveries with agreed due dates up to and including the closing date are stated as income for the year. As of the closing date, recovered claims of SEK 20,279 thousand had been received, and were still to be allocated. Of this total, some 80%, or SEK 16,223 thousand was stated as income without specific allocation. The remaining 20% has been stated as a liability to guarantee-holders. In the previous year, a sum of SEK 48,624 thousand was stated without specific allocation. The net difference between the amounts without specific allocation in 2008 and 2007 (SEK -32,401 thousand) is included in the result for the year.

Note 4. Actuarially calculated net value of claims
Gross value Provision for expected Provision for unexpected losses Net value
OB 2007 8,264,000 -6,214,000 -137,000 1,913,000
Change during the year -1,397,000 864,000 13,000 -520,000
CB 2007 / OB 2008 6,867,000 -5,350,000 -124,000 1,393,000
Change during the year 33,000 75,000 57,000 165,000
CB 2008 6,900,000 -5,275,000 -67,000 1,558,000
Note 5. Other operating income
2008 2007
TOTAL 158,525 0
Estimated currency gains on premiums 158,230 0
Other 295 0
Note 6. Other operating costs
2008 2007
TOTAL -10,129 -6,104
Premiums PA91 and PA03 -8,980 -7,502
Change in pension provision -1,149 1,398
Note 7. Operating expenses
2008 2007
TOTAL -125,743 -117,762
Personnel expenses -89,027 -78,708
Cost of premises -11,479 -11,079
Other operating expenses -27,479 -26,887
Depreciation -907 -1,270
Administrative payments 3,149 182

Taxable Board fees of SEK 68,500 were paid to the departing Chairman of the Board Lennart Nilsson for the period up to and including July. SEK 55,000 was paid to the new Chairman Dag Klackenberg. SEK 109,500 was paid to the first deputy chairman Göran Johnsson and SEK 92,500 to the second deputy chairman Ulla Holm. Board fees of SEK 38,000 were paid to departing Board member Kristina Alsér for the period up to and including July. Wilhelm Alstermark received SEK 96,460 and Anna-Karin Jatko 76,000. Yvonne Gustafsson, Andreas Skinnars and Teppo Tauriainen each received SEK 55,000.

Director General Karin Apelman received remuneration of SEK 1,199,513. No remuneration was made for her Board work.

No other benefits or future commitments have been agreed for EKN’s Board and Director General.

EKN’s Board members held the following positions and directorships with other government agencies and companies:

Dag Klackenberg, Member of the Board of Atrium Ljungberg AB.
Göran Johnsson, Chairman of the Swedish Labour Movement think tank, Chairman of Unionkonsult AB, Chairman of Calmando AB, Board member of Swedbank AB, Elanders AB, AB Swedish Television, IQ- Initiative AB, Fourth Swedish National Pension Fund, Swedish Foundation for Strategic Research and Umeå University.
Karin Apelman, Board member of the Swedish Export Credit Corporation and the Delegation for Financing in the Swedish Radiation Safety Authority (SSM).
Yvonne Gustafsson, Director General of the Swedish Agency for Public Management, Chairman of the National Government Employee Pensions Board, Chairman of the Swedish Nuclear Waste Fund, Board member of BAE Systems AB, the Swedish National Defence College and ESO.
Andreas Skinnars, Member of the Board of Scandinavian Special Projects AB (SSP AB).
Wilhelm Alstermark, Ulla Holm, Teppo Tauriainen and Anna-Karin Jatko did not have other directorships.

Note 8. Currency fluctuations
2008 2007
TOTAL 286,245 -2,716
Realised currency gains/losses on assets -93,089 10,775
Realised currency gains/losses on liabilities 0 0
Unrealised currency gains/losses on assets 450,067 -51,064
Unrealised currency gains/losses on liabilities -70,733 37,573
Note 9. Computers and other equipment
2008 2007
Acquisition value Accumulated depreciation Acquisition value Accumulated depreciation
Net value stated in balance sheet 1,582 2,011
Opening balance 23,312 -21,301 21,939 -20,031
Acquisitions during the year 477 0 1,373 0
Depreciation for the year   -906 0 -1,270
Closing balance 23,789 -22,207 23,312 -21,301
Note 10. Pension funds and provisions for pension liabilities

Pension funds amounting to SEK 23,053 thousand have been funded with the Swedish National Debt Office for future pension payments and corresponded to pension provisions. Pension provisions refer to previous employees who as of 31 Dec 2003 received a retirement pension.

Note 11. Other long-term holdings of securities

The breakdown of EKN’s other long-term holdings of securities was as follows:

2008 2007
Currency Amount in
Currency thousand
Equivalent
value in
SEK 000s
Amount in
Currency thousand
Equivalent
value in
SEK 000s
TOTAL 11,972,471 10,217,045
SEK 9,500,000 9,500,000 7,500,000 7,500,000
USD 190,915 1,472,200 240,882 1,551,278
EUR 91,749 1,000,271 123,361 1,165,767

At 31 December 2008, EKN’s Other long-term holdings of securities consisted of SEK fixed-interest investments with the Swedish National Debt Office (RGK) totalling SEK 9,500,000 thousand, with a fixed duration of up to five years, USD bonds equivalent to SEK 1,472,200 thousand, issued by Swedish and European banks and Swedish state-owned companies, with a duration of up to five years, and EUR bonds equivalent to SEK 1,000,271 thousand, issued by Swedish and European commercial banks and Swedish state-owned companies, with a duration of up to five years.

Note 12 . Receivables from guarantee holders
2008 2007
Total receivables from guarantee-holders 1,707,438 1,606,935
Debited premiums owing 48,826 12,729
Premiums relating to binding offers 273,961 369,577
Investment guarantee premiums 0 0
Counter-guarantee premiums 2,272 1,336
Total receivables from guarantee holders, advance payments 325,059 383,642
Premiums in arrears, nominal 1,662,898 1,716,384
Premiums in arrears, change in capitalized value -97,090 -337,796
Premiums in arrears, adjusted for risk -183,429 -155,295
Total receivables from guarantee-holders, payments in arrears 1,382,378 1,223,293
Note 13. Accruals and deferrals
Prepaid costs and accrued income consisted of the following: 2008 2007
Accrued interest income on investments at fixed rates of interest 254,103 147,838
Prepaid rent for first quarter of coming year 2,543 2,457
Other 61 84
TOTAL 256,707 150,379
Accrued costs and deferred income consisted of the following: 2008 2007
Interest compensation to guarantee holders for recoveries without specific allocation 944 1,592
Accrued vacation and overtime pay 4,508 3,554
Other 201 235
Prepaid premium 17,124 0
TOTAL 22,777 5,381
Note 14. Short-term investments and cash & bank balances

EKN’s cash & cash equivalents and securities by currency:

2008 2007
Currency Amount in currency, thousand Equivalent value in SEK thousand Amount in currency, thousand Equivalent value in SEK thousand
TOTAL     4,626,649 4,368,660
SEK 4,225,337 4,225,337 3,113,702 3,113,702
USD 20,809 160,466 171,865 1,106,814
EUR 14,107 153,803 6,379 60,280
CHF 45 327 2,838 16,121
JPY 1,010,674 86,716 1,195,716 71,743

At 31 December 2008, EKN’s cash & cash equivalents consisted of SEK bank deposits of SEK 4,225,337 thousand. SEK 4 193 380 thousand of this figure was deposited in interest-bearing accounts at the Swedish National Debt Office (RGK), and SEK 31,957 thousand was deposited with Swedish commercial banks. Foreign currency bank deposits amounted to the equivalent of SEK 45,748 thousand. Foreign-currency fixed-rate investments consisted of currency deposits with Swedish commercial banks amounting to the equivalent of SEK 355,564 thousand.

Note 15. Loans for fixed assets, Swedish National Debt Office (RGK)

EKN’s loan limit for fixed assets equalled SEK 6,500 thousand at 31 Dec 2008

2008 2007
Closing liability 1,651 2,108
Opening liability 2,108 2,781
Amount of loan 243 600
Amortisation payments -700 -1,273