Notes to the Group’s Financial Statements

Select note 1–42
15 Financial assets
Group's financial assets comprise investments in derivatives, financial assets designated as at fair value through p/l, loans and receivables, available-for-sale financial assets and investments in subsidiaries. The Holding segment includes also investments in subsidiaries.
The Group uses derivative instruments for trading and for hedging purposes. The derivatives used are foreign exchange, interest rate and equity derivatives. Fair value hedging has been applied during the financial year both in P&C and Life insurance.
EURm 2016 2015
P&C insurance
Derivative financial instruments 14 21
Loans and receivables 84 108
Financial assets available-for-sale 11,569 10,437
P&C insurance, total 11,667 10,566
Life insurance
Derivative financial instruments 13 11
Financial assets designated as at fair value through p/l 24 48
Loans and receivables 20 24
Financial assets available-for-sale 5,612 5,956
Total 5,670 6,039
Assets held for sale -210 -
Life insurance, total 5,459 6,039
Holding
Derivative financial instruments 18 21
Loans and receivables 0 1
Financial assets available-for-sale 814 852
Investments in subsidiaries 2,370 2,370
Holding, total 3,201 3,243
Elimination items between segments -2,659 -2,659
Group, total 17,668 17,189
P&C insurance
Derivative financial instruments
2016 2015
Contract/ Fair value Contract/ Fair value
EURm notional amount Assets Liabilities notional amount Assets Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Intrerest rate swaps 67 0 4 2,069 0 2
Foreign exchange derivatives
OTC derivatives
Currency forwards 3,148 13 63 2,777 19 15
Currency options, bought and sold 30 0 0 101 1 0
Total foreign exchange derivatives 3,178 13 63 2,878 21 15
Equity derivatives
OTC derivatives
Equity and equity index options 0 1 - - - -
Total derivatives held for trading 3,245 14 67 4,948 21 17
Other financial assets
EURm 2016 2015
Loans and receivables
Deposits with ceding undertakings 1 1
Other 83 108
Total loans and receivables 84 108
Financial assets available-for-sale
Debt securities
Issued by public bodies 1,246 1,392
Certificates of deposit issued by banks 3,407 3,120
Other debt securities 5,370 4,404
Total debt securities 10,022 8,916
Equity securities
Listed 1,524 1,497
Unlisted 23 25
Total 1,547 1,522
Total financial assets available-for-sale 11,569 10,437
Financial assets available-for-sale for P&C insurance include impairment losses EURm 227 (197).
P&C insurance, total financial assets 11,667 10,566
Life insurance
Derivative financial instruments
2016 2015
Contract/ Fair value Contract/ Fair value
EURm notional amount Assets Liabilities notional amount Assets Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Interest rate swaps 144 1 0 4,618 0 1
Credit risk swaps - - - 643 - 0
Total 144 1 0 5,261 0 2
Foreign exchange derivatives
OTC derivatives
Currency forwards 1,691 10 11 1,633 8 22
Currency options, bought and sold 63 0 0 156 1 1
Total foreign exchange derivatives 1,754 10 11 1,789 9 22
Total derivatives held for trading 1,898 10 11 7,050 9 24
Derivatives held for hedging
Fair value hedges
Currency forwards 534 2 0 602 2 9
Total 534 2 0 602 2 9
Total derivatives held for hedging 534 2 0 602 2 9
Total derivatives 2,432 13 11 7,651 11 33
Fair value hedges
Fair value hedging is used to hedge a proportion of foreign exchange and interest risk in available-for-sale financial assets. The interest elements of forward contracts have been excluded from hedging relationships in foreign exchange hedges. Net result from exchange derivatives designated as fair value hedges amounted to EURm 19 (-69). Net result from hedged risks in fair value hedges of available for sale financial assets amounted to EURm -19 (68).
Other financial assets
EURm 2016 2015
Financial assets designated as at fair value through p/l
Debt securities
Issued by public bodies 15 13
Issued by banks 7 10
Other debt securities 0 23
Total debt securities 22 47
Listed equity securities 2 2
Total financial assets designated as at fair value through p/l 24 48
Loans and receivables
Loans 20 24
Financial assets available-for-sale
Debt securities
Issued by public bodies 19 30
Issued by banks 563 488
Other debt securities 2,523 2,896
Total debt securities 3,105 3,414
Equity securities
Listed 1,727 1,669
Unlisted 779 873
Total 2,507 2,542
Total financial assets available-for-sale 5,612 5,956
Financial assets available-for-sale for life insurance include impairment losses EURm 15 (19).
Total financial assets 5,670 6,039
Assets held for sale -210 -
Life insurance, total financial assets 5,459 6,039
Financial assets available for sale / debt securities: Debt securities available for sale include EURm 2,925 (3,334) investments in bonds and EURm 180 (95) investments in money market instruments.
Financial assets available for sale / shares and participations: Listed equity securities include EURm 913 (831) listed equities. Unlisted equity securities include EURm 727 (768) investments in capital trusts.
Holding
Derivative financial instruments
2016 2015
Contract/ Fair value Contract/ Fair value
EURm notional amount Assets Liabilities notional amount Assets Liabilities
Derivatives held for trading
Interest derivatives
OTC-derivatives
Interest rate swaps 523 12 - 800 10 -
Foreign exchange derivatives
OTC-derivatives
Currency forwards 478 4 1 74 1 2
Equity derivatives
OTC-derivatives
Equity and euqity index options 9 2 3 60 10 10
Total derivatives 1,010 18 3 933 21 12
Other financial assets
EURm 2016 2015
Loans and receivables
Deposits 0 1
Financial assets available-for-sale
Debt securities
Certificates of deposit issued by banks 250 196
Other debt securities 415 407
Total debt securities 666 603
Equity securities
Listed 129 228
Unlisted 20 20
Total 148 248
Total financial assets available-for-sale 814 852
Financial assets available-for-sale for Holding business do not include impairment losses.
Investments in subsidiaries 2,370 2,370
Holding, total financial assets 3,201 3,243
Elimination items between segments -2,659 -2,659
EURm 2016 2015
Group, total 17,668 17,189
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