Note 16 - Financial investment assets

DKKm						2007	2006

	Financial investment assets
	Financial assets at fair value with value adjustment in the income statement, cf. IAS 39					35,844	36,052
	Receivables at amortized costs					2,555	1,776
						38,399	37,828

	Financial assets at fair value with value adjustment in the income statement
	Trading porfolio:
	Bonds					30,294	28,663
	Contains of:
	Cash allocated to portfolio management					-246	-228
	Unsettled securities trading					1,063	1,158
	Deposits, derivatives etc.					-302	749
						30,809	30,342
	Shares					4,445	5,384
	Cash in hand, Deposits and other investment assets					609	344
	Total other financial investment assets, cash and investments in associates in accordance with the balance sheet					35,863	36,070

	The Bond and share portfolio includes unit trusts in which the underlying assets are bonds and shares.

	In addition, the amounts include liquid assets allocated to the portfolio manager, money market deposits and debt and receivables from unsettled investment transactions.

							Adjusted duration of bond portfolio
	Bond portfolio					2007	2006
	Due in 1 year or less					12,112	19,220
	Due after 1 years through 5 years					15,293	9,698
	Due after 5 years through 10 years					3,386	1,291
	Due after more than 10 years					18	133
	Total					30,809	30,342

	The Bond portfolio includes unit trusts in which the underlying assets are bonds.

	The option adjusted duration is used to measure duration. The option adjustment relates primarily to Danish mortgage bonds and reflects the expected duration-shortening effect of the borrower's option to cause the bond to be redeemed through the mortgage institution at any point in time.


	Maturity of the group’s interest-bearing financial assets and debt
	2007	Total	0-1 year	1-5 years	> 5 years	Effective interest rate	Adjusted duration
	Bonds	30,809	5,257	18,326	7,226	5	2
	Cash in hand and at bank	601	601	0	0	4	0
	Debt	-1,700	-2	-597	-1,101	6	0
	Receivables	2,555	2,555	0	0	-	-
		32,265	8,411	17,729	6,125


	Maturity of the group’s interest-bearing financial assets and debt
	2006	Total	0-1 year	1-5 years	> 5 years	Effective interest rate	Adjusted duration
	Bonds	30,342	9,321	13,882	7,139	4	1
	Cash in hand and at bank	338	338	0	0	4	0
	Debt	-1,764	-65	-600	-1,099	5	0
	Receivables	1,776	1,776	0	0	-	-
		30,692	11,370	13,282	6,040
	The duration of interest-bearing debt is stated at zero as such debt is measured at amortised cost and is not subject to value adjustment.

	The note should be seen in conjunction with the expected cash flow from the Group’s provisions for unearned premiums and provisions for claims, see note 21.
	Please refer to the part 'Interest risk' in 'Risk management' in the 'Management report'.

	Listed shares
	Scandinavia					975	1,161
	United Kingdom					718	874
	Rest of Europe					1,160	1,477
	United States					828	1,245
	Asien etc.					527	418
	Total					4,208	5,175

	The portfolio of unlisted shares totals

	Unlisted Equity investments is measured on estimated fair value, cf 'Accounting policies'					237	209


Exposure to exchange rate risk 2007	Properties	Bonds	Shares	Insurance, etc.	Hedge	Exposure
USD	0	1,116	688	-251	-1,535	18
EUR	0	2,018	1,308	-1,136	-2,101	89
GBP	0	472	570	-1	-983	58
NOK	786	8,352	1,007	-5,756	-4,256	133
Other	0	4	642	-9	-619	18
Total	786	11,962	4,215	-7,153	-9,494	316


Exposure to exchange rate risk 2006	Properties	Bonds	Shares	Insurance, etc.	Hedge	Exposure
USD	0	1,217	1,245	-184	-2,080	198
EUR	0	1,987	1,443	-913	-2,214	303
GBP	0	537	873	103	-1,432	81
NOK	724	8,947	432	-5,230	-4,449	424
Other	0	0	611	53	-595	69
Total	724	12,688	4,604	-6,171	-10,770	1,075

Please refer to Market risk in the section headed Risk management in the Management’s report.


Sensitivity information
Impact on shareholders' equity from the following changes.
					2007	2006
Interest rate increase of 0.7-1.0 pct. point					-2	68
Interest rate fall of 0.7-1.0 pct. point					27	-56
Equity price fall of 12%					533	646
Fall in property prices of 8%					214	201
Exchange rate risk (VaR 99.5)					8	17
Loss on counterparties of 8%					220	220

The impact on the income statement is similar to the impact on shareholders' equity.

The calculation is made in accordance with the disclosure requirements of the executive order issued by the Danish FSA on the presentation of financial reports by insurance companies and profession-specific pension funds.

Please refer to the part 'Risk management' for an elaboration of risk management and risk exposure.

Derivative financial instruments
Derivatives with value adjustment in the income statement according to IAS 39:
Fair value:
			2007		2006

			Gross	Net	Gross	Net
Interest derivatives			3,659	-7	15,903	0
Inflation derivatives			681	26	0	0
Exchange rate derivatives			9,494	205	11,201	114


Derivative financial instruments used in connection with hedging of foreign subsidiaries:

				Gains	Losses	Net
Gains and losses on hedges charged to equity at 1 January				107	-119	-12
Reversed hedges in profit and loss				37	0	37
Gains and losses on hedges charged to equity in the period				0	-135	-135
Gains and losses on hedges charged to equity at 31 December				144	-254	-110


Receivables
Receivables from insurance enterprises					1,410	1,487
Receivables from subsidiaries					0	27
Exchange and inflation rate derivatives					190	73
Unsettled transactions					794	0
Other receivables					161	189
					2,555	1,776

Specification of writedowns on receivables
Balance at 1 January					129	148
Writedowns and reversed writedowns for the year					-23	-19
Balance at 31 December					106	129

Reversed impairment losses are estimated at around DKK 20-30m annually, but may vary due to major cases/disputes.

Please refer to the part 'Credit risk' in 'Risk management' in the 'Management report.'