Varma - Annual Report 2012

Technical provisions

Varma's technical provisions grew by 2.7 (-0.4) per cent to EUR 29,767 (28,966) million. They contain a provision of EUR 79 (74) million for current bonuses reserved for client bonuses, a provision of EUR 1,073 (1,556) million for future bonuses contained in the solvency capital, and EUR 190 (-180) million in an equity-linked provision for current and future bonuses, which transfers part of the equity returns of the earnings-related pension system to create a buffer. The equalisation provision amounted to EUR 1,108 (1,120) million.

At the end of the year, the assets covering the technical provisions were 118 (113) per cent of the technical provisions.