Investment by asset classes

 
31.12.2011 31.12.2010
(€ million)  Total
book value
Impact
(%)
Total
book value
Impact
(%)
Equity instruments (*) 17,098.0 5.5 23,345.4 7.5
Available for sale financial assets 14,384.1 4.6 20,517.8 6.6
Financial assets at fair value through profit or loss 2,713.9 0.9 2,827.6 0.9
Fixed income instruments (**) 241,277.7 77.6 249,276.5 80.0
Bonds 211,436.8 68.0 222,533.0 71.4
Other fix ed income instruments (**) 29,840.8 9.6 26,743.5 8.6
Held to maturity investments 5,293.3 1.7 4,544.9 1.5
Loans 68,029.7 21.9 69,175.0 22.2
Available for sale financial assets 158,834.6 51.1 165,721.2 53.2
Financial assets at fair value through profit or loss 9,120.0 2.9 9,835.4 3.2
Land and buildings (investment properties) (***) 15,321.8 4.9 15,026.4 4.8
Other investments 12,457.7 4.0 11,769.7 3.8
Investments in subsidiaries, associated companies and joint ventures 1,904.8 0.6 2,439.2 0.8
Derivatives (****) 563.5 0.2 204.1 0.1
Receivables from banks or customers 8,847.1 2.8 7,476.4 2.4
Other investments 1,142.5 0.4 1,650.0 0.5
Cash and cash equivalents (*****) 24,659.1 7.9 12,100.2 3.9
Total (******) 310,814.3 100.0 311,518.1 100.0
Investments back to unit and index-linked policies 58,312.0
60,637.0
Total investments 369,126.3
372,155.1

(*) Investment fund units amount to 3.638,1 million ( 4.213,9 million at 31 December 2010).

(**) Investment fund units amount to 8.013,2 million ( 8.110,9 million at 31 December 2010).

(***) Investment fund units amount to 2.240,1 million ( 2.412,3 million at 31 December 2010).

(****) Include derivative instruments accounted for as financial liabilities which amount to -1.974,7 milion (-1.703,2 milion at 31 December 2010).

(*****) Include Reverse REPO which amount to 213,6 milion (2.557,5 milion at 31 December 2010) and REPO which amount to -1.114,4milion (-1.447,7 million al 31 December 2010).

(******) Include derivatives accounted for as financial liabilities and REPO.

At 31 December 2011, the value of the total investments decreased due to the effect of the financial markets performance, going from € 372,155.1 million at 31 December 2010 to € 369,126.3 million. In detail, investments other than investments back to linked policies amounted to € 310,814.3 million (€ 311,518.1 million at 31 December 2010), and the latter amounted to € 58,312.0 million (€ 60,637.0 million at 31 December 2010). Effective 30 September 2011, a part of the Israeli insurance portfolio, previously classified in the traditional business, was reclassified among 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. For further information please refer to the ‘Changes in the presentation of consolidated financial statements’ section in the Notes.

Considering the exceptional situation of financial market turbulence characterized by the sovereign debt crisis, which cast doubt on the territorial diversification strategies of the investments in EU government bonds by European companies, the Group has taken various measures within the context of its overall de-risking strategy.

In further detail, within the Euro Area it is pursuing the gradual goal of eliminating cross-border exposure within this area by matching the liabilities of each country with securities from that same country, without prejudice to the principle of matching assets and liabilities by currency. Turning to corporate non-financial securities, portfolio management maintained the overall stability of exposure to the segment, while shortening the term.

Moreover, in last part of the year the Group has prudently increased the liquidity of the portfolio, increasing the weight of cash and cash equivalents from 3.9% at 31 December 2010 to 7.9%. In this context, while the weight of fixed income instruments declined, falling from 80.0% at 31 December 2010 to 77.6%, as did the weight of equity instruments, which decreased from 7.5% at 31 December 2010 to 5.5%. In further detail, with reference to the composition of the bond portfolio, there was an increase in the corporate component, which amounted to 46.2% (44.0% at 31 December 2010), whereas the government bond component fell to 53.8% (56.0% at 31 December 2010). The average duration of bond portfolios remained substantially stable at 5.8 years.

Lastly, real estate investments increased slightly to 4.9% (4.8% al 31 December 2010), characterized by greater weight in the life segment (from 3.3% at 31 December 2010 to 3.9%) and a reduction in exposure in the non-life segment (from 17.5% at 31 December 2010 to 15.7%) consistently with the strategy undertaken by the Group in the segments aimed at optimize capital management.

 

Investments by country
(€ million) 31.12.2011 30.09.2011 31.12.2010 Change
Total investments 310,814.3 315,483.5 311,518.1 -0.2%
Italy 82,246.6 83,595.0 87,631.7 -6.1%
France 69,928.4 72,849.8 72343.1 -3.3%
Germany 8,4404.4 84,274.1 82,238.3 2.6%
Central and Eastern Europe 9,184.0 9,436.5 9,441.3 -2.7%
Rest of Europe 50,380.0 51,034.8 46,168.8 9.1%
of which Spain 9,140.9 9,326.2 9,430.1 -3.1%
of which Austria 9,996.6 9,971.4 9,814.4 1.9%
of which Switzerland 21,919.4 22,216.7 17,701.8 23.8%
Rest of World 14,671.0 14,293.3 13,695.0 7.1%


AttachmentSize
Life investment strategy and yelds66.72 KB
P&C investment strategy and yelds66.24 KB
Quality of FY11 fixed income portfolio64.58 KB
Focus on FY11 government bond portfolio81.12 KB
Focus on FY11 corporate bond portfolio63.96 KB
Focus on FY11 equity portfolio63.9 KB
FY11 Group real estate assets (1/2)63.49 KB
FY11 Group real estate assets (2/2)61.8 KB