Annual Report IPF 2021 - Flipbook - Side 31
INDUSTRIENS PENSIONSFORSIKRING A/S
ANNUAL REPORT 2021
For a more detailed description of the valuation in this
area, see the section on investment assets and note 21,
which includes a breakdown of investment assets and
financial liabilities according to the fair value hierarchy
(levels 1-3) as well as a breakdown and further
information on the valuation etc. of level 3 assets.
Intragroup transactions
Transactions between group undertakings are made on
the basis of written agreements and settlement is on a
cost-recovery basis or on commercial market terms.
General principles for recognition and
measurement
Revenues and costs are recognised in the income
statement as they are earned or incurred. All value
adjustments, both realised and unrealised, are therefore
recognised in the net profit or loss for the year. However,
special rules apply to value adjustments of owneroccupied properties, and under certain conditions these
adjustments are recognised under other comprehensive
income, see the principles for measurement of owneroccupied properties on page 32.
Assets are recognised in the balance sheet when it is
probable that future economic benefits will flow to the
company and the value of the asset can be reliably
measured.
A liability is recognised in the balance sheet when it is
probable that future financial benefits will flow out of the
company, and the value of the liability can be measured
reliably.
Financial instruments and derivative financial
instruments are recognised on the trading day. At initial
recognition, intangible and tangible assets are measured
at cost, while other assets and liabilities are measured at
fair value. Measurements after initial recognition take
place as described for each item below.
NOTES
For recognition and measurement, unpredictable risks and
losses that arise before the annual report is presented, and
which confirm or disconfirm conditions that existed on the
reporting date, are taken into account.
Foreign currency translation
Transactions denominated in foreign currencies are
translated at the exchange rate ruling at the transaction
date. Gains and losses that arise between the exchange
rate at the transaction date and the settlement date are
recognised in the income statement. Monetary assets and
liabilities in foreign currency are translated at the
exchange rate ruling on the reporting date. Similarly,
currency adjustments arising between the date of the
transaction and the reporting date are also recognised in
the income statement under value adjustments.
Income statement and
comprehensive income
statement
of
Income from insurance activities
Premiums, net of reinsurance
Includes premiums and contributions due in the financial
year. Labour-market contributions and A-tax withheld are
deducted from the premium income.
Investment returns
Income from group and associated undertakings
Includes the company's share of the result after tax in
group and associated undertakings calculated in
accordance with Industriens Pension's accounting policies.
Interest income and dividends, etc.
Includes the interest earned and dividends received on
financial investment assets and liquid assets for the
financial year, including index adjustments for index-linked
bonds and interest income on lending to group and
associated undertakings.
Value adjustments
Value adjustments contain both realised and unrealised
gains and losses on investment assets, including foreign
currency translation adjustments except for gains and
losses on group undertakings and associated
undertakings.
Interest payable
Includes interest on other debt and repo transactions etc.
Administration costs in connection with
investment activities
Includes costs in connection with trading in securities,
depositary charges, remuneration for external
management, as well as own costs for administration of
investment assets, including management fees from
group undertakings.
Tax on yields of certain pension-scheme assets
The tax on yields of certain pension-scheme assets for the
financial year is recognised as an income/expense in the
income statement. Tax includes tax on the return
ascribed individually to members' deposits as well as tax
on the return ascribed to collective reserves (equity and
collective bonus potential, etc.). Tax is calculated at
15.3% of the tax base, which is calculated on the basis of
the annual investment return. Deferred tax on yields of
certain pension-scheme assets is also provided at 15.3%.
Expenses of insurance activities
Insurance benefits paid net of reinsurance.
Includes pension scheme benefits due in the year.
Change in life-assurance provisions
Includes change in life-assurance provisions for the year.
Change in excess capital
Change in excess capital includes the change in excess
capital (special bonus provision type B) and other
subordinated loan capital (special bonus provisions type
A).
The change includes returns and net accumulation during
the year, any risk return for this and previous years, and a
proportionate share of the result of sickness and accident
insurance etc.
Administration costs
Retained investment returns
Retained investment returns make up the part of the
investment returns not included in the technical result.
Retained investment returns therefore comprise
investment returns regarding sickness and accident
insurance, as well as investment returns on equity.
Technical result of sickness and accident
insurance, net of reinsurance
The result of sickness and accident insurance has been
calculated according to the accounting rules for non-life
insurance. The result is detailed in the notes.
Contribution and profit
Appropriation of the realised profit is described in the
agreement with members. Therefore, Industriens Pension is
not subject to the Executive Order on the Contribution
Principle and therefore members with insurance policies
entitled to a bonus are not divided into contribution classes.
The realised profit is calculated and appropriated in
accordance with reported principles for appropriation of
profits.
The return after tax on the associated investment assets is
added to the equity and subordinated loan capital, and a risk
return for providing risk capital can also be added to equity
and subordinated loan capital.
Excess capital, which comprises special bonus provisions
type B, is composed of the realised profit or positive subelements of this. The percentage corresponds to the
percentage deduction in contributions, deposits and
transfers, excluding unit supplement.
31
