Notes to OP Financial Group Financial Statements

NOTES TO CONTINGENT LIABILITIES AND DERIVATIVES

 

Note 51. Contingent liabilities and assets


Insurance companies belonging to OP Financial Group underwrite insurance policies through pools. Pool members are primarily responsible for their own proportionate share of the risk. Proportionate shares are based on contracts confirmed annually. In certain pools, pool members are responsible for an insolvent member's liabilities in proportion to their shares in the pool. Group insurance companies recognise liabilities and receivables based on joint liability if joint liability is likely to materialise.