Notes to the Group's Financial Statements

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33 CONTINGENT LIABILITIES AND COMMITMENTS

P&C insurance

EURm				2011	2010
Off-balance sheet items
	Guarantees			43	57
	Other irrevocable commitments			11	27
	Total			54	84

Assets pledged as collateral for liabilities or contingent liabilities

		2011		2010
EURm		Assets pledged	Liabilities/ commit- ments	Assets pledged	Liabilities/ commit- ments
	Assets pledged as collateral
	Cash at balances at central banks	10	8	10	8
	Investments
	- Investment securities	142	114	133	111


EURm				2011	2010
Commitments for non-cancellable operating leases
	Minimum lease payments
	not later than one year			41	32
	later than one year and not later than five years			105	78
	later than five years			120	101
	Total			266	212

	Lease and sublease payments recognised as an expense in the period
	- minimum lease payments			-36	-34
	- sublease payments			0	0
	Total			-36	-34

The subsidiaries If P&C Insurance Ltd and If P&C Insurance Company Ltd provide insurance with mutual undertakings within the Nordic Nuclear Insurance Pool and within the Norwegian Natural Perils’ Pool.

In connection with the transfer of property and casualty insurance business from the Skandia group to the If Group as of March 1, 1999, If P&C Holding Ltd and If P&C Insurance Ltd issued a guarantee for the benefit of Försäkringsaktiebolaget Skandia (publ.) whereby the aforementioned companies in the If Group mutually guarantee that companies in the Skandia group will be indemnified against any claims or actions due to guarantees or similar commitments made by companies in the Skandia group within the property and casualty insurance business transferred to the If Group.

With respect to certain IT systems that If and Sampo use jointly, If has undertaken to indemnify Sampo for any costs that Sampo may incur in relation to the owner of the systems.

If P&C Holding Ltd and If P&C Insurance Ltd have separately entered into contracts with Försäkringsaktiebolaget Skandia (publ.) and Tryg-Baltica Forsikrings AS whereby Skandia and Tryg-Baltica will be indemnified against any claims attributable to guarantees issued by Försäkringsaktiebolaget Skandia (publ.) and Vesta Forsikring AS, on behalf of Skandia Marine Insurance Company (U.K.) Ltd. (now Marlon Insurance Company Ltd.) in favor of the Institute of London Underwriters. Marlon Insurance Company Ltd. was disposed during 2007, and the purchaser issued a guarantee in favour of If for the full amount that If may be required to pay under these guarantees.

If P&C Holding Ltd has issued a guarantee to the benefit of TietoEnator Corporation whereby If Holdings guarantees the commitments incurred by the If Group company If It Services A/S with TietoEnator based on an agreement covering IT-services. The guarantee will indemnify TietoEnator if If IT Services A/S is declared bankrupt, suspends payments in general, seeks a composition of creditors or in any other way is deemed to be insolvent.

If P&C Holding Ltd has issued a guarantee to the benefit of Svenska Handelsbanken Ab (publ) whereby If Holdings guarantees the commitments incurred by the If P&C Insurance Ltd deriving from short term credits up to an amount of EURm 56 and for commitments deriving from derivates transaction and - on behalf of - If P&C Insurance Ltd, If P&C Insurance Company Ltd and Capital Assurance Company for those companies commitments relating to Letters of Credits issued on behalf of their insurance operations. Capital Assurance Company Inc was sold during 2008, and the purchaser issued a guarantee in favor of If for the amount that If may be required to pay under the standby letters of credit pertaining to Capital Assurance Company Inc.

If P&C Insurance Company Ltd has outstanding commitments to private equity funds totalling EURm 11, which is the maximum amount that the company has committed to invest in the funds. Capital will be called to these funds over several years as the funds make investments.

If P&C Insurance Ltd has according to a shareholders’ agreement between the shareholders in Hemfosa Fastigheter AB committed to up until 30 June 2014 supply the company with a subordinated loan (shareholders’ loan) up to a maximum amount of EURm 56. The whole amount was used as of December 2011.

Life insurance

EURm				2011	2010
Off-balance sheet items
	Fund commitments			338	348

Other commitments
	Acquisition of IT-software			1	2

Lended securities
	Domestic shares
	Number of shares			7,867,000	9,990,868
	Remaining acquisition cost			86	112
	Fair value			73	145

Security lendings can be interrupted at any time and they are secured.


EURm				2011	2010
Commitments for non-cancellable operating leases
	Minimum lease payments
	not later than one year			2	2
	later than one year and not later than five years			5	6
	Total			7	8

	Total of sublease payments expected to be received under non-cancellable operating sub-leases at 31 Dec			1	0

	Lease and sublease payments recognised as an expense in the period
	- minimum lease payments			-3	-3
	- sublease payments			0	0
	Total			-3	-3


Holding

EURm				2011	2010
Off-balance sheet items
	Subscription liabilities			1	1


EURm				2011	2010
Commitments for non-cancellable operating leases
	Minimum lease payments
	not later than one year			1	1
	later than one year and not later than five years			3	3
	later than five years			0	1
	Total			5	5


The Group had at the end of 2011 premises a total of 180 598 m2 (188,589) taken as a lessee. The contracts have been made mainly for 3 to 10 years.

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