OK, how about this explanation model:
For every 100 000 cases of chicken pox in kids, 200 are admitted to hospital (=2/1000)
For each 100 000 children under 16 in any given year there will be 0.82 with severe complications from chicken pox they have contracted. This is the annual incidence of severe complications from chicken pox within the defined population (kids under 16).
Children will only be at risk at one point in time during their 16 years (or whatever the chosen limit is) rather than continuously, and this is where the discrepancy Ivor is getting at appears to come from.
Put another way, take 100 000 under 16 year olds and study them for a year. How many might get chicken pox in that time? Ivors assumption is that it is close to 100 000, but it is not, it will be less than 1/16th of this (say arbitrarily 1/20th)
This is 5000 children.
Out of these 5000 children, we know that 2 in each 1000 will be admitted to hospital (ie 10 children).
But we know the hospitalisation rate with severe complications of chicken pox is 0.85 per 100 000 of the relevant population - lets call it 1/100 000 for simplicity).
This means that of the 10 hospitalised cases, one will have severe complications.
That seems to kind of work out about right, doesn't it Ivor?