Financial liabilities

In accordance with the IAS/IFRS managerial model adopted by the Generali Group, consolidated liabilities were split into two categories:

  • liabilities linked to consolidated operating activities, which are all financial liabilities related to specific consolidated balance sheet items. This category also includes liabilities related to investment contracts issued by insurance companies;
  • liabilities linked to financing actvities includes other consolidated financial liabilities, as several subordinated liabilities, bonds issued and loans received. For instance, liabilities arising from transactions carried out to acquire controlling shareholdings belong to this category.

Total liabilities were as follows:

(€ million) 31.12.2011 30.09.2011 31.12.2010 Change
Liabilities linked to operating activities 46,914.5 46,434.7 41,631.0 1.0%
Liabilities linked to financing activities 12,218.9 12,369.1 12,272.7 -1.2%
Subordinated liabilities 6,610.9 6,425.1 6,492.9 2.9%
Other non subordinated liabilities linked to financing activities 5,608.0 5,944.0 5,779.8 -5.7%
Total 59,133.4 58,803.8 53,903.8 0.6%

The weighted average rate of liabilities linked to financing activities was 5.37% at 31 December 2011, stable compared to 31 December 2010 (5.36%), with an average duration of 5.88 31 December 2011  (6.87 at 31 December 2010).

Liabilities linked to operating activities reported a growth due to the increase in liabilities toward the bank customers.

The related interest expense is broken down as follows:

(€ million) 31.12.2011 30.09.2011 31.12.2010 Change
Interest expense on liabilities linked to operating activities 614.0 433.3 499.7 41.7%
Interest expense on liabilities linked to financing activities 645.7 484.2 704.5 33.4%
Total(*) 1,259.7 917.5 1,237.1 37.3%

(*) Without taking into account the interest expenses on deposits under reinsurance business accepted which have been deducted from the related interest income and are not included in the operating debt.

 

 

Financial liabilities at fair value through profit or loss
 Financial liabilities
held for trading
Financial liabilities designated as at fair value through profit or lossTotal
(€ million) 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
Financial liabilities related to inv estment contracts issued by insurance companies 0.0 0.0 11,563.0 11,499.7 11,563.0 11,499.7
where the inv estment risk is borne by the policyholders 0.0 0.0 10,260.4 10,418.7 10,260.4 10,418.7
pension funds 0.0 0.0 1,079.9 787.4 1,079.9 787.4
other financial liabilities related to investment contracts 0.0 0.0 222.8 293.6 222.8 293.6
Derivatives 1,148.3 914.2 826.4 789.0 1,974.7 1,703.2
Other financial liabilities 0.0 0.0 1,001.5 489.9 1,001.5 489.9
Total 1,148.3 914.2 13,391.0 12,778.5 14,539.3 13,692.7
Other financial liabilities
(€ million) 31.12.2011 31.12.2010
Subordinated liabilities 6,610.9 6,492.9
Loans and bonds 15,698.6 15,202.3
Deposits received from reinsurers 983.5 1,070.8
Bonds 5,021.9 4,992.7
Other loans 4,623.1 4,568.2
Financial liabilities related to investment contracts issued by insurance companies 4,106.8 3,871.4
Hedging derivatives 963.2 699.2
Liabilities to banks or customers 22,284.7 18,506.5
Liabilities to banks 995.3 421.5
Liabilities to customers 21,289.4 18,084.9
Total 44,594.1 40,201.7

Here below a list of the main subordinated issuances in the market and their features:

Issuer
Coupon Outstanding (*) Currency Amortised cost(**) Issue date Call date Maturity
Assicurazioni Generali 6.90% 750.0 EUR 738.3 20.07.2000 20.07.2012 20.07.2022
Generali Finance B.V. 5.32% 1,275.0 EUR 1,268,5 16.06.2006 16.06.2016 Perp
Generali Finance B.V. 6.21% 700.0 GBP 833.7 16.06.2006 16.06.2016 Perp
Assicurazioni Generali 6.27% 350.0 GBP 415.5 16.06.2006 16.06.2026 Perp
Generali Finance B.V. 5.48% 1,250.0 EUR 975.2 08.02.2007 08.02.2017 Perp
Assicurazioni Generali 6.42% 495.0 GBP 586.3 08.02.2007 08.02.2022 Perp

(*) In million, in currency

(**) In million, euro

In this category there are also classified the unquoted private placements issued by Assicurazioni Generali S.p.A., which amount to € 1,500 million.

The fair value of subordinated liabilities amounts to € 5,884.7 million.

The amount of bonds issued includes senior issues, whose a list of main quoted ones is shown:

 Issuer
Coupon Outstanding (*) Currency
Amortised cost(**) Issue date Maturity
Generali Finance B.V. 4.75% 1,500.0 EUR 1,489.2 12.05.1999 12.05.2014
Generali Finance B.V. 3.88% 500.0 EUR 498.6 06.05.2005 06.05.2015
Assicurazioni Generali 4.88% 750.0 EUR 740.6 11.03.2009 11.11.2014
Assicurazioni Generali 5.13% 1,750.0 EUR 1,715.2 16.09.2009 16.09.2024

(*) in million in currency

(**) In million, in euro.

The fair value of bonds issued (mainly fixed interest rate bonds) amounts to € 4,363.9 million.

Liabilities to banks and customers are mainly payable on demand or short term liabilities.

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Financial debt schedule59.94 KB