Non-operating result

(€ million) 31.12.2011 31.12.2010 Fourth
quarter
2011
Fourth
quarter
2010
YE2011
/YE2010
Fourth
quarter
2011
/Fourth
quarter
2010
Consolidated non-operating result -2,013.1 -1,199.9 -549.7 -175.0 67.8% 214.1%
Net non-operating income from financial instruments at fair value through profit or loss -34.2 37.4 -6.0 0.1 -191.3% -4283.0%
Net non-operating income from other financial instruments (**) -907.1 -31.8 -193.0 100.6 2753.2% -291.7%
Net non-operating realized gains on other financial instruments and land and buildings (investment properties)                                        
180.1 479.9 99.9 202.0 -62.5% -50.6%
Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) -1,087.2 -511.7 -292.8 -101.3 112.5% 189.0%
Non-operating holding expenses -679.6 -726.1 -183.4 -164.8 -6.4% 11.2%
Interest expenses on financial debt -645.7 -704.5 -161.5 -164.8 -8.3% -2.0%
Other non-operating holding expenses -33.9 -21.7 -21.9 -0.1 56.2% 26379.7%
Net other non-operating expenses (***) -392.2 -479.4 -167.3 -111.0 -18.2% 50.8%

(**) The amount is gross of interest expense on liabilities linked to financing activities.

(***) The amount is net of the share attributable to the policyholders in Germany and Austria.

The above-mentioned performance of financial markets also influenced the non-operating result of the Group, which sharply decreased from € -1,199.9 million at 31 December 2010 to € -2,013.1 million.

More specifically, the non-operating result from investments was characterized by lower net realized gains, which went from € 479.9 million at 31 December 2010 to € 180.1 million, as well as by net impairment losses — considered as non-operating as they relate to financial instruments of shareholders' funds or instruments, the impairment of which did not affect the statutory reserves to the extent they were not included in the deferred policyholder liabilities — which went from € -511.7 million at 31 December 2010 to € -1,087.2 million. In detail, the latter were attributable for € 308.6 million to the aforementioned impairment losses on Greek bonds and for € 444.4 million to the impairment of the equity portfolio, of which € 185.5 million refer to the investment in Telco.

Finally, net realized gains included the gain realized on the investment in Banorte for about € 108 million and on the investment in B-Source for about € 41 million.

Lastly, net non-operating income from financial instruments at fair value through profit or loss amounted to € -34.2 million (€ 37.4 million at 31 December 2010), as they were also affected by the volatility of financial markets.

Net other non-operating expenses, which include net non-recurring income and the amortization of the value of portfolios acquired directly or by obtaining control of insurance or financial companies, amounted to € -392.2 million (€ -479.4 million at 31 December 2010), of which € 196.4 million was associated with the amortization of the value of acquired portfolios (€ 195.6 million at 31 December 2010). The decline was largely attributable to the lower non-recurring costs.

Non-operating holding expenses went from € -726.1 million at 31 December 2010 to € -679.6 million, due to the decrease in interest expense on liabilities linked to financing activities, whereas 2010 was marked by higher interest expenses resulting from the early refinancing of a senior bond expiring in July 2010.