Insurance provisions

Insurance provisions
(€ million)
31.12.2011 30.09.2011 31.12.2010
Insurance provisions - life segment (*) 304,378.4 306,558.7 308,986.3
Net insurance provisions and financial liabilities: 316,563.6 315,998.8 313,347.9
traditional 258,310.9 258,714.1 252,387.6
linked 58,252.7 57,284.7 60,960.3
Deferred policyholders liabilities -12,185.2 -9,440.0 -4,361.6
Insurance provisions - non-life segment (*) 30,603.7 30,760.9 30,235.8
Provisions for unearned premiums 5,661.0 5,617.3 5,450.4
Provisions for outstanding claims 24,560.3 24,760.1 24,413.7
Other insurance provisions 382.4 383.5 371.7
Insurance provisions 334,982.1 337,319,. 339,222.2
Reservation ratio - non-life segment 146.2% n.a. 148.8%

 

(*) After the elimination of intra-group transactions between segments.

 

Total insurance provisions, including life and non-life insurance provisions as well as financial liabilities related to investment contracts, rose from € 339,222.2 million at 31 December 2010 to € 334,982.1 million (down 1.2%).

Life insurance provisions and financial liabilities related to investment contracts excluding deferred policyholders liabilities(1)went from € 313,347.9 million at 31 December 2010 to € 316,563.6 million (up 1.0%).

Moreover, as a result of the significant decrease in value recognized during the year mainly on the Group’s bond portfolios, the deferred policyholders liabilities amounted to € -12,185.2 million  (€ -4,361.6 million at 31 December 2010).

Amounts ceded to reinsurers from insurance provisions
 
Direct insurance Direct insurance Total
(€ million) 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
Non-life amounts ceded to reinsurers from insurance provisions(*) 3,030.8 3,288.5 1,015.0 946.2 4,045.8 4,234.7
Provisions for unearned premiums 516.4 509.2 113.3 93.8 629.7 603.0
Provisions for outstanding claims 2,510.5 2,774.4 897.8 852.0 3,408.3 3,626.4
Other insurance provisions 3.9 5.0 3.8 0.4 7.8 5.3
Life amounts ceded to reinsurers from insurance provisions(*) 826.8 766.8 805.4 763.8 1,632.2 1,530.6
Provisions for outstanding claims 249.9 233.8 140.4 123.3 390.3 357.1
Mathematical provisions 292.7 428.3 664.2 640.4 956.9 1,068.7
Provisions for policies where the investment risk is borne
by the policyholders and provisions for pension funds
160.2 0.5 0.0 0.0 160.2 0.5
Other insurance provisions 124.0 104.2 0.9 0.1 124.9 104.2
Total 3,857.6 4,055.3 1,820.4 1,710.0 5,678.0 5,765.3

(*) After the elimination of intra-group transactions between segments.

 

Insurance provisions
 Direct insuranceAccepted insuranceTotal
(€ million) 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
Non-life insurance provisions (*) 33,189.3 32,928.8 1,460.0 1,541.7 34,649.3 34,470.6
Provisions for unearned premiums 6,153.5 5,906.8 137.1 146.7 6,290.6 6,053.4
Provisions for outstanding claims 26,649.7 26,649.6 1,318.9 1,390.5 27,968.6 28,040.1
Other insurance provisions 386.1 372.4 4.0 4.6 390.0 377.0
of which provisions for liability adequacy test 7.2 4.9 0.0 0.0 7.2 4.9
Life insurance provisions (*) 288,208.3 293,371.9 2,132.5 1,773.8 290,340.8 295,145.8
Provisions for outstanding claims 4,486.8 4,984.1 802.8 668.8 5,289.6 5,652.8
Mathematical provisions 231,587.5 225,837.2 1,084.6 901.9 232,672.2 226,739.1
Provisions for policies where the investment risk is borne by the policyholders and provisions for pension funds 46,804.2 49,385.8 45.7 75.0 46,849.8 49,460.9
Other insurance provisions 5,329.8 13,164.8 199.4 128.1 5,529.2 13,292.9
of which provisions for liability adequacy test 1,174.7 1,251.9 92.2 34.2 1,266.8 1,286.1
of which deferred policyholder liabilities -12,185.2 -4,361.6 0.0 0.0 -12,185.2 -4,361.6
Total 321,397.6 326,300.7 3,592.5 3,315.6 324,990.1 329,616.3

(*) After the elimination of intra-group transactions between segments.

 

 

The increase in the non-life insurance provisions (+ 0.5% compared to 2010) is attributable to the development of the premium, whereas claims provisions were stable compared to 2010.

In the life segment the insurance provisions decreased by 1.6%; this trend is determined by the worsening of the financial markets, that contributed to the decrease of the market value of the funds linked to unit/index linked policies and of the deferred policyholder liabilities.

The overall total of the other life insurance provisions includes both the provision for profit sharing and premium refunds, which amounts to € 7,213.3 million compared to € 7,793.8 million in 2010, and the ageing provisions for life segment, which amount to € 9,076.8 million compared to € 8,411.8 million in 2010.

(1) Effective 30 September 2011, a part of the Israeli insurance portfolio, previously classified to the traditional business, was reclassified among unit and index-linked portfolios to ensure a placement that better reflects the technical characteristics of the products issued. As a consequence, all investments hedging that portfolio have been reclassified accordingly for the comparative periods as well.