Notes

To the income statement and balance sheet

Note 1. Premium income

All amounts are in SEK ’000s
2009 2008
Premium income, gross 1,545,785 1,545,785
Other premium-related costs -47 -135
PREMIUM INCOME, NET 1,545,738 736,043
Changes to claims relating to premiums in arrears, nominal 1,400,331 -192,844
Changes to claims relating to premiums in arrears, adjusted for present value -84,099 -5,118
Changes to claims relating to premiums in arrears, risk adjustment -635 -13,526
Changes to claims relating to premiums in arrears, net 1,315,597 -211,488
TOTAL PREMIUM INCOME 2,861,335 524,555


Note 2. Provisions for actuarially calculated risk in the exposure

Provisions for actuarially calculated risk in the
exposure: gross (before re-insurance)		 Provision for
anticipated
losses		 Provision for
unanticipated
losses		 Total
provisions
B/f 2008 -3,865,000 -5,412,000 -9,277,000
Change during the year -1,239,000 -687,000 -1,926,000
C/f 2008 / B/f 2009 -5,104,000 -6,099,000 -11,203,000
Change during the year -1,552,000 23,000 -1,529,000
C/f 2009 -6,656,000 -6,076,000 -12,732,000

Reinsurer’s share of provisions for
actuarially calculated risk in the exposure:

      
B/f 2008 518,000 786,000 1,304,000
Change during the year 168,000 240,000 408,000
C/f 2008 / B/f 2009 686,000 1,026,000 1,712,000
Change during the year -81,000 -290,000 -371,000
C/f 2009 605,000 736,000 1,341,000
Provisions for actuarially calculated risk in the
exposure: net (after re-insurance)		      
B/f 2008 -3,347,000 -4,626,000 -7,973,000
Change during the year -1,071,000 -447,000 -1,518,000
C/f 2008 / B/f 2009 -4,418,000 -5,073,000 -9,491,000
Change during the year -1,633,000 -267,000 -1,900,000
C/f 2009 -6,051,000 -5,40,000 -11,391,000


Note 3. Recoveries

Recoveries with agreed due dates up to and including the closing date are recognised as income for the year. As of the closing date, recovered claims of SEK 25,542 thousand had been received, and were still to be allocated. Of this total, some 80%, or SEK 20,433 thousand, was stated as income without specific allocation. The remaining 20% has been stated as liabilities to guarantee holders. In the previous year, a sum of SEK 16,223 thousand was stated without specific allocation. The net difference between the amounts without specific allocation in 2009 and 2008 (SEK 4,210 thousand) is included in the result for the year.
2009 2008
Principal, own insurance 96,122 200,393
Principal, from re-insurers 141 42,293
Principal, re-insurers’ share -1,763 -3,138
TOTAL PRINCIPAL 94,500 239,548
Capitalised interest, own insurance 135,724 164,017
Capitalised interest, from re-insurers -15 4,930
Capitalised interest, re-insurers’ share -9 -160
TOTAL CAPITALISED INTEREST 135,700 168,787
Interest, own insurance 68,768 60,347
Interest, from re-insurers 354 1,291
Interest, re-insurers’ share -2,303 -3,590
TOTAL INTEREST 66,819 58,048
RECOVERED CLAIMS WITHOUT SPECIFIC ALLOCATION 4,210 -32,401
TOTAL RECOVERED CLAIMS 301,229 433,982


Note 4. Actuarially calculated net value of indemnified claims

  Gross value Provision
for
anticipated
losses		 Provision
for
unanticipated
losses		 Net value
B/f 2008 6,867,000 -5,350,000 -124,000 1,393,000
Change during the year 33,000 75,000 57,000 165,000
C/f 2008 / B/f 2009 6,900,000 -5,275,000 -67,000 1,558,000
Change during the year -197,000 -32,000 21,000 -208,000
C/F 2009 6,703,000 -5,307,000 -46,000 1,350,000


Note 5. Other operating income

2009 2008
Estimated currency gains on premiums 16 158,230
Other 10,011 295
TOTAL 10,027 158,525


Note 6. Other operating costs

2009 2008
Estimated currency losses on premiums -156,649 0
Premiums PA91 and PA03 -10,452 -8,980
Change in pension provision 239 -1,149
TOTAL -166,862 -10,129


Note 7. Operating expenses

2009 2008
Salary costs -66,297 -59,482
Taxes & charges -26,887 -20,602
Other personnel costs -5,112 -8,943
Cost of premises -13,551 -11,479
Other operating costs -40,076 -27,479
Depreciation -1,079 -907
Administrative compensation 1,157 3,149
TOTAL OPERATING EXPENSES -151,845 -125,743

The sum of SEK 110,000 was paid to the Chairman, Dag Klackenberg. SEK 82,500 was paid to the First Deputy Chairman Göran Johnsson and SEK 71,500 to the Second Deputy Chairman Ulla Holm. Wilhelm Alstermark received SEK 70,356. SEK 55,000 each was paid to Anna-Karin Jatko, Yvonne Gustafsson, Andreas Skinnars and Teppo Tauriainen.

Compensation of SEK 1,331,050 was paid to Karin Apelman, the Director General. No compensation has been paid to her in her capacity as a member of the board.

No other benefits or future commitments have been agreed in favour of any members of the EKN board or its Director General.

Members of EKN’s Board held the following positions as members of the boards of other state authorities or companies.

Dag Klackenberg, board member of Atrium Ljungberg Ltd. Göran Johnsson, chairman of Arbetarrörelsen’s think tank and chairman of Unionkonsult Ltd and of Calmando Ltd, board member of Elanders Ltd, the Swedish Television Ltd, IQ-Initiativet Ltd, 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 Pension Board, chairman of the Swedish Nuclear Waste Fund, board member of the Swedish National Defence College and ESO (The Export Group on Public Finance). Andreas Skinnars, member of the board of Vesper Ltd. Wilhelm Alstermark, Ulla Holm, Teppo Tauriainen and Anna-Karin Jatko had no other board appointments.


Note 8. Exchange rate differences

2009 2008
Realised currency gains/losses on assets -11,999 -93,089
Realised currency gains/losses on liabilities -11 0
Unrealised currency gains/losses on assets -319,646 450,067
Unrealised currency gains/losses on liabilities 17,335 -70,733
TOTAL -314,321 286,245


Note 9. Computers and other equipment

  2009 2008
  Acquisition
value		 Accumulated
depreciation		 Acquisition
value		 Accumulated
depreciation
Opening balance 23,789 -22,207 23,312 -21,301
Acquisitions during the year 2,628 0 477 0
Depreciation for the year   -1 080   -906
Closing balance 26,417 -23,286 23,789 -22,207
Net value stated in balance sheet 3,131 1,582


Note 10. Pension funds and provisions for pension liabilities

Pension funds amounting to SEK 23,188 thousand have been funded with the Swedish National Debt Office for future pension payments. Pension provisions refer to former employees who as of 31 Dec 2003 receive 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:
  2009 2008
Currency Amount in
currency
thousands		 Equivalent
value in
SEK 000s		 Amount in
currency
thousands		 Equivalent
value in
SEK 000s
SEK 10,000,000 10,000,000 9,500,000 9,500,000
USD 330,246 2,368,292 190,915 1,472,200
EUR 81,678 843,508 91,749 1,000,271
TOTAL   13,211,800   11,972,471
As at 31 Dec 2009, EKN’s other long-term holdings consisted of fixed interest securities in SEK with the Swedish National Debt Office [RGK], for a duration of up to five years to an amount of SEK 10,000,000 thousand; bonds in USD issued by Swedish and European banks, and Swedish State-owned enterprises with a duration of up to 5 years equivalent to SEK 2,368,292 thousand; and bonds in EUR issued by Swedish and European banks and by Swedish State-owned enterprises with a duration of up to five years equivalent to SEK 843,508 thousand.


Note 12. Receivables from guarantee holders

2009 2008
Debited premiums owing 28,028 48,826
Premiums relating to binding offers 508,436 273,961
Investment guarantee premiums 0 0
Counter-guarantee premiums 860 2,272
TOTAL RECEIVABLES FROM GUARANTEE HOLDERS, ADVANCE PAYMENTS 537,324 325,059
Premiums in arrears, nominal 2,925,343 1,662,898
Premiums in arrears, change in capitalised value -217,442 -97,090
Premiums in arrears, adjusted for risk -176,281 -183,429
Total receivables from guarantee-holders, payments in arrears 2,531,620 1,382,378
TOTAL RECEIVABLES FROM GUARANTEE-HOLDERS 3,068,944 1,707,438


Note 13. Accruals and deferrals

Prepaid costs and accrued income consisted of the following: 2009 2008
Accrued interest income on fixed interest investments 294,538 254,103
Prepaid rent for first quarter of coming year 2,280 2,543
Other prepaid costs 379 61
SUMMA 297,197 256,707
Accrued costs and deferred income consisted of the following: 2009 2008
Interest compensation to guarantee holders for recoveries
without specific allocation		 280 944
Accrued vacation and overtime pay 5,129 4,508
Other accrued costs -7 201
Prepaid premiums 67,998 17,124
TOTAL 73,400 22,777


Note 14. Short-term investments , plus cash and bank balances

The breakdown of EKN’s cash and cash equivalents and securities by currency was as follows:
  2009

2008
Currency Amount in
currency
thousands		 Equivalent
value in
SEK 000s		 Amount in
currency
thousands		 Equivalent
value in
SEK 000s
SEK 3,675,050 3,675,050 4,225,337 4,225,337
USD 114,472 820,915 20,809 160,466
EUR 28,289 292,146 14,107 153,803
CHF 233 1,617 45 327
JPY 1,800,241 140,959 1,010,674 86,716
TOTAL   4,930,687   4,626,649
As at 31 Dec 2009, EKN’s cash and cash equivalents consisted of bank deposits in SEK of SEK 3,675,050 thousand, of which SEK 3,652,858 thousand were placed in interest-bearing accounts at the Swedish National Debt Office (RGK), and SEK 22,192 thousand was invested with Swedish commercial banks. Foreign currency bank deposits amounted to the equivalent of SEK 1,255,637 thousand. Fixed-interest investments in foreign currencies consisted of foreign currency deposits in Swedish commercial banks to an equivalent value of SEK 1,113,268 thousand.


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

EKN’s loan limit for fixed assets at 31 December 2009 was SEK 6,500 thousand.
2009 2008
Liability b/f 1,651 2,108
Amount of loan 1,588 243
Amortisation payments 0 -700
LIABILITY C/F 3,239 1,651


Compilation of material information

Pursuant to chapter 2 section 4 of the Ordinance concerning Annual Reports and Budgets

 
SEK million 2009 2008 2007 2006 2005
Loan limit at the National Debt Office for indemnifications, granted Unlimited Unlimited Unlimited Unlimited Unlimited
Loan limit at the National Debt Office for indemnifications, utilised 0 0 0 0 0
Loan limit at the National Debt Office for fixed assets, granted 6,5 6,5 6,5 6,5 6,5
Loan limit at the National Debt Office for fixed assets, utilised 3,2 1,7 2,1 2,8 2,3
Future obligations = outstanding guarantees 147,152 105,407 88,861 91,576 82,945
Premium income 2,861 525 422 1,591 775
Profit for the year 856 820 1,755 1,784 1,925
Profit brought forward 10,192 9,372 7,617 5,830 3,905
Number of permanent employees 129 115 101 95 95
Average number of employees 138 131 114 109 111
Operating expenses per annual work unit, in SEK 000s 1,186 1,121 1,168 1,136 1,110


Statutory limits and outstanding guaranteed amounts

Relates to guarantee amounts in SEK million.      
Export credit guarantees 2009-12-31 2008-12-31 2008-12-31 2006-12-31
Maximum amount of liability permitted by Parliament 350,000 200,000 200,000 200,000
Amount authorised by the Government to EKN 350,000 175,000 175,000 175,000
Outstanding guarantee commitments* 264,162 150,786 129,110 126,217
Investment guarantees        
Maximum amount of liability permitted by Parliament 10,000 10,000 10,000 10,000
Amount authorised by the Government to EKN 10,000 10,000 10,000 10,000
Outstanding guarantee commitments* 0 0 0 128
* guarantees and 50% offers        
Limits for EKN

Parliament decides on a limit for the guarantees to which EKN may commit the Swedish state. The total value of guarantees and binding offers is then netted off against the limit by 100%. Offers are netted off against the limit at 50% of their amounts. Indemnified claims are not included in the outstanding guaranteed amounts.

The limit set by Parliament for export credit guarantees was increased to SEK 350 billion from the previous figure of 200 billion on 1 January 2009. The amount that the Government authorised EKN to use was also set at SEK 350 billion. At the end of the year, EKN had utilised SEK 264 billion of its limit. The amount utilised at the end of the previous year was SEK 151 billion. There is a special limit of SEK 10 billion for investment guarantees. At the year-end, it had not been used at all. Following a decision by the Government and Parliament in December 2009, EKN’s limit was raised to SEK 500 billion as at 1 January 2010.