ANNUAL REPORT 2014

a n n u a lr e p o r t 2 0 1 3

ANNUAL REPORT 2014 2

ANNUAL REPORT 2014

Annual Report 2014of the Board of Directors and of the Statutory Auditorto be presented atthe Annual General Meetingon 30th April 2015

Insurance company authorised by decision of the Management Committee NBB (formerly CBFA) on the 6th November 2003.to underwrite “Liability” (branch 13)(Moniteur Belge 04.12.2003 - Code 2275)

Registered Office: Av. Jules Bordet, 166 - B 3B 1140 BrusselsBelgium

Tel. +32 (0)2 702 90 10Fax. +32 (0)2 726 19 63

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ANNUAL REPORT 2014

In euro

Statement of Earnings 2014 2013 2012 2011 2010

Net premium earned 4.921.570 3.144.445 2.783.412 2.291.446 2.146.506

Claims -195.549 2 -38.637 -34.445 -3

Expenses -1.452.231 -1.167.688 -1.066.659 -835.294 -719.417

Other income 197.802 150.174 155.166 175.538 162.673

Net investment result 961.173 1.535 2.224.312 430.032 123.406

Earnings before distribution to

reserve for equalisation and

catastrophes 4.432.764 2.128.468 4.057.594 2.027.277 1.713.165

Variation in the reserve for

equalisation and catastrophes, net

of reinsurance -3.776.172 -2.169.630 -2.286.598 -1.682.654 -1.611.318

Taxes -21,41 -284 0 0 0

Earnings after distribution to

reserve for equalisation and

catastrophes 656.570 -41.446 1.770.996 344.623 101.847

Balance Sheet

Assets 76.363.388 71.742.994 50.835.317 41.933.065 38.716.682

Liabilities -3.186.881 -2.983.181 -1.110.006 -874.199 -900.447Guarantee fund 73.176.507 68.759.813 49.725.311 41.058.866 37.816.235

Financial Highlights

(including reserve for equalisation and catastrophes)

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ANNUAL REPORT 2014

C o n t e n t

6 Members

7 Member Representatives & Status

10 Board of Directors

11 Advisory Committees

13 Management

14 Letter from the Chairman

15 Description of Activities

18 Report of the Board of Directors

23 Corporate Governance Report

25 Statutory Auditor’s Report

27 Balance Sheet and Income Statement

31 Notes to the Financial Statements

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ANNUAL REPORT 2014

Members

AB SVAFO Forsmarks Kraftgrupp AB

AREVA NC Fortum Power and Heat Oy

Atomic Energy of Canada Ltd. (AECL) (**) Gemeenschappelijke Kernenergiecentrale Nederland BV (GKN)

Axpo Power AG (**) Kernkraftwerk Gösgen-Däniken AG (**)

Belgoprocess NV Kernkraftwerk Leibstadt AG (KKL) (**)

BKW Energie AG (**) MVM PAKS Nuclear Power Plant Ltd. (**)

British Energy Ltd New Brunswick Power Corporation (**)

Bruce Power Inc. OKG Aktiebolag

ČEZ, a. s. Ontario Power Generation (OPG)

E.ON Kernkraft GmbH (**) RHK Puram

E.ON Sverige AB Ringhals AB

EDF RWE Power AG (**)

Electrabel SA (**) SCK•CEN

Elektriciteits-Produktiemaatschappij Zuid-Nederland NV (EPZ) (**) Slovenske Elektrarne AS / ENEL

EnBW Kernkraft GmbH (**) Sogin S.p.A. (**)

Endesa (**) Studsvik AB

ENEL (**) Svensk Kärnbränslehantering AB (SKB)

Eskom Holdings SOC Ltd Teollisuuden Voima Oyj (TVO)

EURODIF SA Urenco Ltd. (**)

FBFC International SA Vattenfall Europe Nuclear Energy GmbH (*)Zwischenlager Würenlingen AG (ZWILAG) (**)

(*) supportive Member until 31 December 2014(**) non insured member

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ANNUAL REPORT 2014

Member Representatives & Status

Member Representative Status

BelgiumBelgoprocess NV Ph. Lannoy Insured

Electrabel SA M. Hecq Non Insured

FBFC International NV M. Van den Eynde Insured

SCK•CEN C. Legrain Insured

CanadaAtomic Energy of Canada Ltd. (AECL) D. Mills Non Insured

Bruce Power Inc. K. Kelly Insured

New Brunswick Power Corporation A. Slipp Non Insured

Ontario Power Generation (OPG) J. Floras Insured

Czech RepublicČEZ a.s. V. Hronek Insured

FinlandFortum Power & Heat Oy M. Huopalainen Insured

Teollisuuden Voima Oyj L. Noukka Insured

FranceAREVA NC Ph. Obert Insured

EDF J.L. Thébault Insured

Eurodif SA R. Jiménez-Shaw Insured

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ANNUAL REPORT 2014

Member Representatives & Status

Member Representative Status

GermanyEnBW Kernkraft GmbH E. Wissmann Non Insured

E.ON Kernkraft GmbH D. Prüske Non Insured

RWE Power AG J. Haaf Non Insured

Vattenfall Europe Nuclear Energy GmbH (*) Supportive

Great-BritainBritish Energy Ltd A. Russell Insured

URENCO Ltd I. Mance Non Insured

HungaryMVM Paks Nuclear Power Plant Ltd C. Szinger Non Insured

RHK Puram I. Barnabas Insured

ItalyENEL S.p.A. G. Frea Non Insured

Slovak RepublicSlovenské Elektrárne a.s. M. Ivanová Insured

South AfricaEskom Holdings SOC Ltd M. Molelekoa Insured

SpainENDESA E. Pérez Ferreiro Non Insured

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ANNUAL REPORT 2014

Member Representatives & Status

Member Representative Status

SwedenAB SVAFO S. Ordéus Insured

E.ON Sverige AB B. Svensson Insured

Forsmarks Kraftgrupp AB T. Hallqvist Insured

OKG Aktiebolag R. Danielsson Insured

Ringhals AB T. Hallqvist Insured

Svensk Kärnbränslehantering AB (SKB) A. Ingman Insured

Studsvik AB T. Samuelsson Insured

SwitzerlandAxpo Power AG T. Erb Non Insured

BKW Energie AG U. Schwegler Non Insured

Kernkraftwerk Gösgen-Däniken AG M. Plaschy Non Insured

Kernkraftwerk Leibstadt AG T. Erb Non Insured

Zwischenlager Würenlingen AG (Zwilag) T. Erb Non Insured

The NetherlandsEPZ NV B.P. Jobse Non Insured

Gemeenschappelijke Kernenergiecentrale Nederland BV (GKN) G.J. Geertsema Insured

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ANNUAL REPORT 2014

Board of Directors

Jean-Denis Treillard Chairman

Joachim Haaf Vice-Chairman

Bengt Svensson Vice-Chairman

Gabriele Frea

Christian Legrain

Daniel Martenet Independent Director

Mabaeti Molelekoa

Alvin Shuttleworth Independent Director

Jean-Louis Thébault

Danny Vanwelkenhuyzen Executive Committee

Marleen Vercammen Executive Committee

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ANNUAL REPORT 2014

Advisory Committees

Insurance Advisory Committee

Bengt Svensson Chairman

Thomas Erb

Nick Feldman

John Floras

Ann Geivaerts

Joachim Haaf

Martine Hecq

Václav Hronek

Bram-Paul Jobse

Mika Kautonen

Berndt Kockum

Maria Laguna

Hervé Loisy

Markus Mooser

Laura Noukka

Stéphane Yvon

Legal Advisory Committee

Alvin Shuttleworth Chairman

Marc Beyens

Rickard Danielsson

Etienne de Lempdes

Annette Dümmerling

Pia Maria Funari

Ann GeivaertsAntje-Susann Herzog

Maria Laguna

Jane Lasry

Pat Murphy

Jiri Ortman

Daniela Micinská

Risto Siilos

Ludo Veuchelen

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ANNUAL REPORT 2014

Advisory Committees

Finance and Investment Advisory Committee

Matts Ekman Chairman

Kevin Kelly

Jo Machtelinckx

Lauri Piekkari

Annemie Roefs

Marleen Vercammen

Audit Committee

Daniel Martenet Chairman

Jean-Louis Thébault

Christian Legrain

Internal Auditor

Willy Gemis

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ANNUAL REPORT 2014

Management

Executive Committee

Danny Vanwelkenhuyzen Managing Director

Marleen Vercammen Financial Manager

Staff

Wim Buysse Loss Prevention Manager

Ann Geivaerts Corporate Organisation & Legal Manager

Heiner Hefti General Manager Swiss Branch

Maria Laguna Senior Underwriter

Jo Machtelinckx Deputy Finance Manager

Henk Nuyts Underwriter

Annemie Roefs Asset Manager

Auditors

Deloitte

Berkenlaan 8b

BE - 1831 Diegem

Represented by

Réviseurs d'Entreprise

Actuary

Nicolaï & Partners

Duboisstraat 43

BE - 2060 Antwerpen

Mrs. Veerle Nicolaï

Mr. Yves Dehogne and Mr. Rik Neckebroeck

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ANNUAL REPORT 2014

L e t t e r f r o m t h e C h a i r m a n

Dear Members,

It is a pleasure to present ELINI’s 2014 Annual Report.

First of all, it would be fair to give a special tribute to the work performed by the Management of ELINI in making sure thatSolvency II requirements are implemented within the Mutual. Those matters are a major part of our agendas during thedifferent committees and the Management is committed on those aspects to allow ELINI to stand at a World Class positionwith regard to its internal governance and the control of their Members’ financial securities.

On the business activity, 2014 has shown two major trends:

o The first one is an ongoing growth of activity, which has a positive impact on the capacity. All Members have increased theirrespective participation in ELINI, which increased the capacity available for the Members who are using the Mutual in theirNuclear Third Party Liability insurance scheme. Moreover, some Non-Insured Members have also decided to become InsuredMembers and ELINI is also proud to have seen its membership growing.

o The second trend relates to the heart of ELINI’s business, which is Loss Prevention and Claims Handling, both aspects beingthe two faces of a same coin.

ELINI has developed a specific loss prevention program, which aims to be systematically sued amongst the candidates andexisting Members, in order to preserve the Mutual as a whole, and each Member’s participation individually.

ELINI has been recognised as having one of the most advanced Claims Handling System of the Nuclear Third Party Liabilityinsurance market. This aspect is key in the ongoing discussions with some national authorities such as Slovak Republic orFrance, in respect of future increase of limits and Post Nuclear Accident organization for potential victims’ indemnification.

Beside the mere business activities, ELINI is continuously recognised as one of the major actors representing the World’sNuclear Industry Community with regard to Nuclear Third Party Liability matters. In this way, discussions have been opened in2014 with the World Nuclear Transport Institute (WNTI), in which ELINI has applied for membership. No doubt that 2015 willsee the recognition of ELINI as a member of the WNTI.

2015 will be a challenging year to face more and more governments’ decisions to increase the limits of liability for theirnational nuclear operators, for which ELINI represents one of the key actors.

Yours sincerely,

Jean-Denis TREILLARDChairman of the Board of Directors.

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ANNUAL REPORT 2014

Description of Activities

ELINI is a Belgian mutual insurance association formed in December 2002 to provide insurancecapacity for nuclear liability risks to its Members. The present Members of ELINI include nuclearfacilities in Belgium, Canada, Czech Republic, Finland, France, Germany, Great-Britain, Hungary,Italy, Slovak Republic, South Africa, Spain, Sweden, Switzerland and the Netherlands.

The capacity provided by ELINI is independent of that provided by the various nuclear Pools.The main benefits to Members of ELINI include:

o Additional insurance capacity in view of the Revised Paris and Brussels SupplementaryConventions;

o Alternative insurance capacity for terrorism cover and 30 years prescription period;o Potential for contribution savings;o Information exchange and data centre for nuclear insurance matters.

U n d e rw r i t i ng & C l a i ms H a n d l in g

ELINI’s current portfolio is based on nuclear liability risks cover, in accordance with the decision ofthe Member, with the existing Pools and any other markets as coinsurer, reinsurer or leader withthe exception in those countries where a 100 % policy is taken out by the Member.

The prices of the insurance coverages are in accordance with own rating tables so that Membersof the Mutual will derive immediate benefit from reduced contributions.

Few years ago, ELINI has been working on a rating model, based on TPL surveys on-site. In2011 the Board of Directors agreed to link the results obtained from these surveys to thecontribution calculation. The strengths and weaknesses of a site are incorporated in thecontribution calculation and represent an incentive for each Member to improve the site safety.This model is applied as of January 1st, 2012.

If there is an incident resulting in offsite release of radiation, ELINI will offer its services to, and inclose collaboration with the local competent Authority and its Member, and act in accordance tothe instructions given and the expectations formulated by them. It is ELINI’s view that, in such acrisis situation, the entire insurance market should show solidarity.

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ANNUAL REPORT 2014

As an insurer, ELINI will contribute to the cost in accordance with the provisions of the Member’sinsurance policy.

In order to be prepared for a potential nuclear incident, ELINI decided to develop a unique webbased platform for claim handling allowing to register claims, manage claims and report in a detailedway to all parties involved and this both on a national and trans boundary basis.

ELINI contracted with highly specialised companies for the set-up of dedicated call centres anddispatching of claim experts and loss adjusters. The individual approach of the Members allows ELINIto take into consideration their expectations.

The implementation of the system is realised in close collaboration with the Member having decidedto organise its post incidental management together with ELINI.

Article 25 of the Articles of Association provides for additional contributions from Members if requiredto meet claims.

R e i n s ura nc e

ELINI can purchase reinsurance cover to supplement capacity and to spread risk as the Board deemsappropriate.

M a n a ge me n t S t r u c ture

ELINI is a mutual association constituted in Brussels under Belgian law and authorised by decision ofthe Management Committee of the NBB (formerly CBFA) on the 6th November 2003.

The strategic management of the Association is the responsibility of the Board of Directors which, withthe exception of those powers expressly reserved for the General Meeting, has full managerialauthority.

The administration and day to day management of the Association is the responsibility of theManaging Director together with the Executive Committee.

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ANNUAL REPORT 2014

M e m b e rs h ip

Only companies or authorities in the private or public sector operating, controlling or owning nuclearinstallations, or their representatives, and which have an insurable interest, can be Members of theAssociation.

Election of a new Member shall be submitted to the Board of Directors and shall become effectivewhen ratified by the General Meeting.

A new Member must take out or have the intention to take out at a later stage at least one insurancepolicy with unreserved acceptance of the rights and obligations included in the Articles of Association.

There are three kind of Members:

o Non Insured Members who do not take part in the constitution of the guarantee fund but pay anadministration fee;

o Non Insured Members who take part in the constitution of the guarantee fund (SupportiveMembers);

o Insured Members who have an insurance policy and have contributed to the constitution of theguarantee fund.

L o s s P r e v e nt ion S e r v i c e s

The ELINI loss prevention division supports the underwriting team as well as the Members to identifypotential loss exposures and to assess the adequacy of existing loss prevention measures. Based onon-site evaluations, review of technical documentation and discussions with site responsibles andtechnical staff, detailed risk reports are made up. The surveyor will evaluate and compare the facilitywith good engineering practices, legal requirements, insurance standards and similar risks. Strengthsand weaknesses of each site will be highlighted. Where required a comprehensive list of suggestionsand recommendations will be drawn up with a view to improve safety and to prevent or mitigatelosses. An in-house developed grading system supports the underwriting process by contribution rateadjustment and can support the Members’ loss prevention programs through contribution reduction.

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ANNUAL REPORT 2014

Report of the Board of Directors

to be presented to the Annual General Meeting of 30th April 2015

Dear Member,

We are pleased to present for your approval the financial statements of our Mutual for its twelfth year of operations,

which ended on 31st December 2014.

The financial statements include the figures from the ELINI branch in Switzerland.

The Board of Directors of ELINI is responsible for the information contained in the financial statements and other

sections of the annual report. The Board considers that the financial statements and related information have been

prepared in accordance with generally accepted accounting principles appropriate in the circumstances. These

financial statements include amounts that are based on Board’s judgment and best estimates.

ELINI maintains a system of internal accounting controls to provide reasonable assurance that our assets are

safeguarded against loss from unauthorized use or disposal and that the accounting records provide a reliable basis

for the preparation of the financial statements.

We engaged Deloitte, with your approval, as the independent auditors to audit the financial statements and to

express their opinion thereon. Their opinion is based on procedures considered by them to be sufficient to provide

reasonable assurance that the financial statements present fairly, in all material respects, the financial position, cash

flows and results of operations. Their report is joint with the annual accounts.

C a p a c i ty

The maximum insurance capacity per policy increased from € 89.000.000 in 2013 to € 100.000.000 in 2014 and

our own retention also increased from € 50.500.000 in 2013 to € 72.500.000 in 2014.

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ANNUAL REPORT 2014

C o n t r ib ut ions

The contributions written, and reinsurance premiums ceded are reflected in earnings on a pro-rata basis over the

terms of each policy. Unearned contributions represent the portion of contributions written, which are applicable

to the non-expired term of the policies in force.

Net contributions increased from € 4.005.565 in 2013 to € 6.153.238 in 2014 since one Member was added

into the insurance program as from 1 January 2014, and more Members are using the increased insurance

capacity.

Reinsurance costs also increased from € 861.121 to € 1.231.668 due to reinsurance bought with BlueRe. The

reinsurance coverage by BlueRe is situated on a higher risk level compared to the reinsurance coverage in

2013; hence the increase of the reinsurance costs.

C l a i ms

Provisions are made for the estimated cost of incurred losses on the basis of management estimates. These

estimates are based on information from the members, their brokers, nuclear pools, claims adjusters, independent

consultants and other relevant sources.

The total outstanding claim reserve at the end of the year amounts to € 847.379 and includes now 9 notified

incidents of which the reserves for the 2008 incident amounting to € 576.874.

During the financial year 2014, one new claim was advised. Since the management believes that the incident is not

covered under the ELINI policy, a symbolic claim provision was accounted for.

The management also decided to create an additional reserve, amounting to € 195.549 which is calculated as 30%

of the total reserve for all claims notified, and represents an estimate of 15% for internal claim handling fees and

another 15% for external claim handling fees. The calculation of this additional reserve is subject to an annual

review.

G e n e r a l e x p e ns e s

General expenses increased from € 1.167.688 in 2013 to € 1.452.231 or +24% in 2014 and is mainly due to

increases in acquisition costs (+ € 43.500), consultancy fees related to the application for a credit rating and a

market study to check the possibilities for an increase of the ELINI capacity (+ € 139.000), HR costs (+ € 88.500) and

a higher D&O insurance premium (+ € 33.500 €). On the other hand, communication costs and the costs made in

the Swiss branch decreased by respectively € 12.000 and € 6.500.

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ANNUAL REPORT 2014

I n v e s tm e nts

The total book value of the investments and liquidities increased from € 60.495.032 in 2013 to € 66.079.048 in 2014.The investment strategy of 47,5% corporate bonds, 47,5% liquidities and 5% in shares was changed to respectively47,5%, 42,5% and 10% around mid-year, resulting in a financial income of € 961.173, unrealized capital gains notincluded.

Book value and estimated fair market value of investments as of 31 December 2014 :

Euro Unrealized capitalBook value gains/losses Market value

--------------------------- ------------------------- -------------------------Corporate bond funds 29.865.711 1.908.314 31.774.025Money market funds 13.264.433 16.487 13.280.920Deposits 7.195.884 0 7.195.884Cash 9.987.851 0 9.987.851Equity fund 5.765.169 164.962 5.930.131

--------------------------- ------------------------- -------------------------66.079.048 2.089.763 68.168.811

Weighted average credit rating of the Money Market (including cash and deposits) and Bonds portfolioas of 31 December 2014 :

The overall average credit rating of the portfolioexcluding equity is A.

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ANNUAL REPORT 2014

Country Allocation and average duration by investment class as of 31 December 2014.

Corporate Bond funds:AT 1,28% • BE 1,03% • BM 0,01% • CH 2,48% • CI 0,02% • DE 13,95% • DK 0,82% • ES 8,72% • FI 0,79% • FR 18,72% • GB 7,29%• IE 0,57% • IT 7,83% • LU 0,20% • NL 6,90% • NO 1,04% • PL 0,54% • PT 0,11% • RU 0,61% • SE 2,71% • Europe others 0,75% •US 8,49% • CA 0,65% • AU 2,16% • NZ 0,10% • MX 1,25% • Latin America others 1,03% • CN 0,41% • Asia others 0,23% •AE 0,91% • Africa/Middle East others 0,13% • Supranational 7,03% • Cash 0,20% • Others 0,06%Average duration : 4,61 years

Money Market funds:AT 1,39% • BE 15,59% • CH 1,27% • CI 0,35% • DE 5,10% • DK 0,22% • ES 5,74% • FR 7,46% • GB 5,46% • IE 0,43% • IT 3,34% •LU 1,60% • NL 4,71% • Europe others 3,95% • US 1,89% • CA 32,45% • AU 2,99% • CN 2,08% • AE 2,01% • Cash 0,11% •Others 1,54%Average duration : 0,27 years

Equity funds:AT 0,66% • BE 4,29% • DE 30,22% • ES 11,62% • FI 2,95% • FR 32,16% • IE 1,08% • IT 7,45% • NL 9,10% • PT 0,47%

Overall portfolio:Country allocation:AT 0,92% • BE 21,29% • CH 1,80% • CI 0,08% • DE 10,13% • DK 0,43% • ES 6,19% • FI 0,62% • FR 12,98% • GB 4,46% • IE 0,45%• IT 4,95% • LU 0,41% • NL 12,31% • NO 0,49% • PL 0,25% • PT 0,09% • RU 0,28% • SE 1,27% • Europe others 1,12% • US 4,33%• CA 6,65% • AU 1,59% • NZ 0,05% • MX 0,58% • Latin America others 0,48% • CN 0,60% • Asia others 0,11% • AE 0,81% •Africa/Middle East others 0,06% • Supranational 3,28% • Cash 0,12% • Others 0,33% •

The overall average weighted duration of the portfolio (excluding equity) is 2,42 years

R e s u l t

The € 4.432.743 surplus for 2014 before allocation compares with a € 2.128.468 surplus before allocation for 2013.

The technical profit for 2013 of € 3.506.360 plus the part of the financial surplus earned on the technical reservesamounting to € 269.812 will be allocated to the reserve for equalization and catastrophes.

In accordance with our Articles of Association, the Board of Directors proposes to the Annual General Meeting thatthe financial surplus related to the Belgian activities for 2014 of € 692.429 shall be allocated to the guarantee fund,whereas the loss of € 35.858 in the Swiss branch is deferred to the next financial year, in accordance with the localregulations.

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ANNUAL REPORT 2014

G u a r a n te e F u n d

The guarantee fund and reserve for equalization now available to the members to be used as insurance capacity, ifyou agree to our proposal, will be € 73.176.507.

D i s c ha r ge f r o m l i a b i l i t i e s

The Board of Directors recommends to the Annual General Meeting to grant discharge to each member of theBoard of Directors and to the Statutory Auditor from all liability in respect of the exercise of their duties during thefinancial year 2014.

We look forward to a good operational year in 2015 and I would like to take this opportunity to thank you for yoursupport.

Jean-Denis TreillardChairman of the Board of DirectorsOn behalf of the Board of Directors

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ANNUAL REPORT 2014

Corporate Governance Report

To ensure the appropriate level of corporate governance, the Board has put in placearrangements which it believes are suitable for a Mutual carrying on insurance business andenable the Mutual to comply with the Royal Decree of 12 August 1994, the communicationD172 and the Circulars PPB-2006-8-CPA and PPB-2007-6-CPB-CPA. All the principles arewritten in the document “Memorandum of good governance”. In addition the ExecutiveCommittee presents annually to the Board the Report on internal control.

T h e B o a r d

There are currently 11 Board Members, including the Chairman and the two Vice-Chairmen,two Independent Directors and the two members of the Executive Committee.

All of the Board Members are nominated by the Annual General Meeting for a three-yearperiod and eligible for re-appointment.

The Board meets as often as the interest of the Association requires, and whenever five ormore Directors make a written request for such a meeting.

B o a rd C o m m i t te e s

The Board has a schedule of matters that it reserves for itself. These matters cover approval ofaccounts, significant changes to accounting policies, changes to the membership of the Boardand its Committees, recommendations of the strategy to be applied to the Members of theAssociation, approval of the annual operating budget.

In addition, the Board has appointed five Advisory Committees which report to the Board attheir meetings. The terms of reference for the Executive Committee, Audit Committee, Financeand Investment Advisory Committee, Legal Advisory Committee and Insurance AdvisoryCommittee, which are reviewed annually, have been agreed by the Members and the Board.The nomination of members within these Committees must be approved by the Board.

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ANNUAL REPORT 2014

B o a rd a n d C o m m i t te e P a p e rs

Appropriate and timely management information is circulated to Directors and Committee membersin good time before the Meetings.

A n n u a l G e n e r a l M e e t i ng

The sections of the Articles of Association relating to the Annual General Meeting have been compliedwith.

I n t e rna l C o n t ro l

The Board is ultimately responsible for the Mutual’s system of internal control and for reviewing itseffectiveness. However, such a system is designed to manage, rather than eliminate, the risk of failureto achieve business objectives, and can provide only reasonable and not absolute assurance againstmisstatements or loss.

C o n t ro l P r o c e d ure s

The Mutual has implemented control procedures designed to ensure complete and accurateaccounting for financial transactions and to limit the potential exposure to loss of assets or fraud.Measures taken include reviews by management as well as internal and external audits.

R i s k I d e nt i f i c a t ion

The Executive Committee is responsible for the identification and evaluation of the risks underwritten.These risks are assessed on a continual basis and may be associated with a variety of internal andexternal sources including regulatory requirements and/or authorities.

M o ni tor ing a n d C o r re c t i v e A c t i ons

The Mutual has a Procedures Manual which provides practical guidance for all staff. The internalauditor reports to the Audit committee on the effectiveness of the procedures.

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ANNUAL REPORT 2014

Statutory auditor's report to the shareholders’ meeting on the annual accountsfor the year ended 31 December 2014

European Liability Insurance for the Nuclear Industry (E.L.I.N.I.)

To the shareholders

As required by law and the company’s articles of association, we report to you in the context of our appointment asthe company’s statutory auditor. This report includes our report on the annual accounts together with our reporton other legal and regulatory requirements. These annual accounts comprise the balance sheet as at 31 December2014 and the income statement for the year then ended, as well as the summary of accounting policies and otherdisclosures.

Report on the annual accounts – Unqualified opinion

We have audited the annual accounts of E.L.I.N.I. (“the company”), prepared in accordance with the financialreporting framework applicable in Belgium, which show total assets of 76.363 (000) EUR and a surplus for the yearof 657 (000) EUR.

Board of directors’ responsibility for the preparation of the annual accounts

The board of directors is responsible for the preparation and fair presentation of annual accounts in accordancewith the financial-reporting framework applicable in Belgium, and for such internal control as the board of directorsdetermines is necessary to enable the preparation of annual accounts that are free from material misstatement,whether due to fraud or error.

Statutory auditor’s responsibility

Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted our auditin accordance with International Standards on Auditing (ISA). Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whether the annual accountsare free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annualaccounts. The procedures selected depend on the statutory auditor’s judgment, including the assessment of therisks of material misstatement of the annual accounts, whether due to fraud or error. In making those riskassessments, the statutory auditor considers internal control relevant to the company’s preparation and fairpresentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by the board of directors, as well as evaluating the overall presentation of the annual accounts. Wehave obtained from the company’s officials and the board of directors the explanations and information necessaryfor performing our audit.

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ANNUAL REPORT 2014

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Unqualified opinion

In our opinion, the annual accounts of E.L.I.N.I. give a true and fair view of the company’s net equity and financialposition as of 31 December 2014 and of its results for the year then ended, in accordance with the financialreporting framework applicable in Belgium.

Report on other legal and regulatory requirements

The board of directors is responsible for the preparation and the content of the directors’ report on the annualaccounts, as well as for maintaining the company’s accounting records in compliance with the legal and regulatoryrequirements applicable in Belgium and for the company’s compliance with the Companies Code and thecompany’s articles of association.As part of our mandate and in accordance with the Belgian standard which is complementary to the InternationalStandards on Auditing as applicable in Belgium, our responsibility is to verify, in all material respects, compliancewith certain legal and regulatory requirements. On this basis, we make the following additional statements, whichdo not modify the scope of our opinion on the annual accounts:• Without prejudice to certain formal aspects of minor importance, the accounting records are maintained in

accordance with the legal and regulatory requirements applicable in Belgium.• The appropriation of results proposed to the general meeting is in accordance with the relevant requirements

of the law and the company’s articles of association.• There are no transactions undertaken or decisions taken in violation of the company’s articles of association or

the Companies Code that we have to report to you.

Diegem, 20 March 2015

The statutory auditorDELOITTE Bedrijfsrevisoren / Reviseurs d’EntreprisesBV o.v.v.e. CVBA / SC s.f.d. SCRLRepresented by

------------------------------------------------ ---------------------------------------------------------Rik Neckebroeck Yves Dehogne

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ANNUAL REPORT 2014

ASSETS 31/12/2014 31/12/2013

C. Investments

III. Other financial investments

1. Parts in investment funds 48.895.313 38.379.151

6. Term deposits 7.195.884 7.172.128

56.091.197 45.551.279

D. bis. Part of reinsurance in the technical reserves

I. Reserve for non-earned premiums and current risks 35.166 2.620

III. Reserve for claim receivable 1.860 1.860

37.025 4.479

E. Receivables

I. Receivables from direct insurance

1. Insurers 1.979.914 40.927

2. Intermediaries 540.804 0

II. Receivables resulting from reinsurance 0 0

III. Other receivables 52.497 281.935

IV. Subscribed capital, not paid 7.448.976 10.653.666

10.022.192 10.976.528

F. Other assets

I. Tangible Assets 149.617 193.889

II. Liquidities 9.987.851 14.943.752

10.137.468 15.137.640

G. Transitory accounts

I. Interest and rent 75.506 73.067

75.506 73.067

TOTAL ASSETS 76.363.388 71.742.994

The accompanying notes are an integral part of these balance sheets.

Balance sheet as of 31 December 2014 and 2013(Currency - Euro)

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ANNUAL REPORT 2014

LIABILITIES 31/12/2014 31/12/2013

A. Equity

I. Subscribed capital or equivalent fund, net of uncalled

capital

1. Guarantee fund securities 57.300.900 56.702.984

V. Retained earnings

1. Surplus (Deficit) of the period (Switzerland) -78.463 -42.605

57.222.437 56.660.379

C. Technical reserves

I. Reserve for unearned premiums and unexpired risks 1.932.610 1.738.270

III. Reserve for claim payable 847.379 651.830

IV. Reserve for equalisation and catastrophes 15.875.607 12.099.434

18.655.596 14.489.535

G. Payables

I. Payables resulting from direct insurance business 144.815 42.761

II. Receivables resulting from reinsurance business 0 1.577

III. Other payables

1. Fiscal and Social payables

a) Property tax and VAT 14.219 33.441

b) Social payables 75.416 86.417

2. Other 177.533 165.022

411.982 329.217

H. Transitory accounts 73.373 263.863

73.373 263.863

TOTAL LIABILITIES 76.363.388 71.742.994

The accompanying notes are an integral part of these balance sheets.

Balance sheet as of 31 December 2014 and 2013(Currency - Euro)

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ANNUAL REPORT 2014

31/12/2014 31/12/2013

a) Gross premiums 6.347.578 5.649.231

• Premiums written 6.347.578 5.649.231

• Rebates to Members 0 0

-1.264.214 -859.906

-194.340 -1.643.666

32.546 -1.215

4.921.570 3.144.445

118.013 155.947

0 0

1.178.961 477.454

1.296.974 633.400

197.802 150.174

a) Net amount paid

aa) Gross amount 0 -2.145

bb) Part of reinsurers 0 0

-195.549 2.147

0 0

-195.549 2

-184.467 -140.970

-1.267.763 -1.026.718

-1.452.231 -1.167.688

Income Statement as of 31 December 2014 and 2013(Currency - Euro)

1. Earned premiums, net of reinsurance

d) Variation of the reserve for unearned premiums and

unexpired risks, reinsurers part (increase +, decrease -)

c) Variation of the reserve for unearned premiums and

unexpired risks, gross of reinsurance (increase -, decrease +)

b) Reinsurance Premiums

c) Administrative expenses

2bis. Investment Income

b) Income from other investments

c) Write-back of adjustments on investments

d) Realized capital gains

3. Other technical income net of reinsurance

4. Costs of claims, net of reinsurance

b) Variation of the claims services reserve, net of reinsurance

aa) Variation of the reserve for claims, gross of

reinsurance (increase -, decrease +)

bb) Variation of the reserve for claims, part of

reinsurance (increase -, decrease +)

7. Net operating expenses (-)

a) Acquisition expenses

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ANNUAL REPORT 2014

31/12/2014 31/12/2013

-93.052 -93.196

-11.111 -140.642

-231.638 -398.027

-335.801 -631.865

4.432.764 2.128.468

-3.776.172 -2.169.630

656.592 -41.162

-21 -284

656.570 -41.446

Income Statement as of 31 December 2014 and 2013(Currency - Euro)

- continued -

Surplus/(DEFICIT) of the period available for Distribution

15. Taxes

Result of the period

The accompanying notes are an integral part of this income statement

7bis. Expenses relating to investments (-)

a) Expenses for managing investments

b) Adjustments to investment values

c) Realized less values

SURPLUS/(DEFICIT) OF THE PERIOD BEFORE VARIATION

RESERVE FOR EGALIZATION AND CATASTROPHES

9. Variation in the reserve for egalization and catastrophes, net

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ANNUAL REPORT 2014

NOTES TO THE FINANCIAL STATEMENTS AS OF 31 DECEMBER 2014 AND 2013(Currency - Euro)

1 . A C T I V I T Y O F T H E A S S O C I A T I O N A N D S U M M A R Y O F T H E M A I N A C C O U N T I N GP R I N C I P L E S

The association’s objective is to insure the civil liability (Branch 13) of its insured members in the context of andlimited to the responsibility specified in the Convention of Paris on civil liability in the area of nuclear energy and/orspecified in the national legislations of the countries where the Convention of Paris is not applicable.By a decision of the Belgian Prudential Authority taken on 6 November 2003, the association has been granted theagreement to execute insurance activities of the branch “Civil Liability” (Branch 13).

During the year 2014, the maximum insurance capacity of E.L.I.N.I. is 100.000.000 EUR of which:

� For those Members not using the BlueRe capacity :• 100% of any amount in excess of 72.500.000 EUR up to 92.500.000 EUR is reinsured by way of treaty

reinsurance contract• 100% of any amount in excess of 92.500.000 EUR is reinsured by way of a facultative reinsurance contract

� For those Members using the BlueRe capacity :• The first layer of 30.000.000 EUR is covered by E.L.I.N.I.• 100% of any amount in excess of 30.000.000 EUR up to 38.440.000 EUR is reinsured by way of treaty by

BlueRe• 100% of any amount in excess of 38.440.000 EUR up to 80.940.000 EUR is covered by the E.L.I.N.I.

capacity• 100% of any amount in excess of 80.940.000 EUR up to 100.000.000 EUR is reinsured by way of treaty

The risk for E.L.I.N.I. is limited to 72.500.000 EUR as of 31 December 2014.

The accounting principles of E.L.I.N.I. can be summarized as follows:

a. Overview of the amortization rates appliedOther assets – tangible fixed assets % per yearInstallations, electronic equipment and office tools 33,33Furniture 10Vehicles 20

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ANNUAL REPORT 2014

b. Technical provisions

The association constitutes technical provisions based on premiums received not earned, claims payable anda reserve for equalization and catastrophes in accordance with Articles 10 and 11 of the Royal Decree of 22February 1991 relating to regulations applicable to insurance companies.

c. Shares and other non-fixed income securities

The investments denominated in foreign currencies are converted in Euro using the year-end exchange rate.The exchange gains are deferred whereas the exchange losses are recorded in the income statement.Shares and other non-fixed income securities are recorded at acquisition cost. The incidental costs areexpensed as incurred. Unrealised losses are recorded if the Board of Directors evaluates that there is apermanent less value on those securities. Such less values are recorded in the income statement.

d. Foreign exchange rate contracts

The foreign exchange rate contracts are converted in Euro using the exchange rate as of the balance sheetdate. The exchange gains are deferred whereas the exchange losses are recorded in the income statement.

e. Accounts payable and receivable in foreign currency

The foreign currency denominated accounts are converted in Euro using the exchange rate as of the balancesheet date.

The foreign currency denominated accounts of the income statement are converted into Euro on a monthly basisusing the exchange rate in force at the end of the previous month.

The unrealized exchange gains and losses are recorded in the income statement under the caption “Investmentincome” and “Expenses relating to investments”, except for the above-mentioned unrealized exchange gains.

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ANNUAL REPORT 2014

2. G U A R A N T E E F U N D

The Board of Directors proposes to the Annual General Meeting to allocate 692.429 EUR, the surplus of the year2014, to the Guarantee Fund. Note that the result of the year 2014 of the Swiss Branch will not be transferred tothe Guarantee Fund, but will be reported separately as retained earnings (-35.858 EUR).The evolution of the Guarantee Fund over 2014 is as follows:

3 . R E P R E S E N T A T I V E A S S E T S

The assets that represent the technical provisions have to be invested in accordance with the rules set out in Article10 of the Royal Decree of 22 February 1991.As of 31 December 2014 and 2013, the Mutual association had invested its representative assets as follows:

Guarantee fund at 31 December 2013 56.702.984

Capitalisation members 5.487

Exit of Members -100.000

Transfer of the Surplus of the year 2014 692.429

Guarantee fund at 31 December 2014 57.300.900

Retained earnings at 31 December 2013 -42.605

Loss of the Swiss branch -35.858

Retained earnings at 31 December 2014 -78.463

31/12/2014 31/12/2013

Investment funds 18.718.193 14.522.787

Cash 49.419 19.147

18.767.612 14.541.934

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ANNUAL REPORT 2014

4 . R E S E R V E F O R E G A L I Z A T I O N A N D C A T A S T R O P H E S

In application to Article 11, §1, A, 3° of the Royal Decree dated 22 February 1991 on the general rules on thecontrol of insurance companies, the association started in 2004 to build a reserve for egalization andcatastrophes. The purpose thereof is to create a reserve that would smooth out variations in claims or wouldcover exceptional risks. Based on the current regulations, the theoretical target amount that should be providedfor within the Associations’ egalization and catastrophes reserve is 72.500.000 EUR. The yearly movementhowever depends on the income or loss of the association before (net) investment income (exclusive the resultfrom the Swiss Branch). An income results in an addition to the reserve for the amount of the income, and a lossresults in a usage of the reserve for the amount of the loss. The application of this rule resulted in an addition of3.776.172 EUR for the year 2014 and an addition of 2.169.630 EUR for the year 2013 which brings the totalreserve up to 15.875.607 EUR. It should however be noted that at the end of 2014 the guarantee fund amountsto 57.300.900 EUR (excluding the result of the Swiss branch). Including this guarantee fund, the total amountthat can be used to cover the obligation of the mutual is 73.176.507 EUR.

5 . M A N A G E M E N T

The investment management of the Association is outsourced.

Reinsurance commissions refunded to E.L.I.N.I. are 60.450 EUR for 2014 and 51.428 EUR for 2013 and arededucted from the reinsurance premium charges.

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ANNUAL REPORT 2014

2 0 1 4

E L I N I

EUROPEAN LIABILITYINSURANCE FOR THENUCLEAR INDUSRTY

ASSOCIATIOND’ASSURANCES MUTUELLES

AV. JULES BORDET, 166 - B3 B 1140 BRUSSELS BELGIQUE

Tel. + 32 (0)2 702 90 10Fax + 32 (0)2 726 19 63www.elini.net

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