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:

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:

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

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:

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.