Shareholders’equity

The shareholders’ equity attributable to the Group amounted to € 15,485.6 million (17,489.8 million at 31 December 2010). The decrease (down 11.5%) was essentially due to the exceptional macroeconomic and financial scenario that has characterized the result of the year and also the performance of the reserve for unrealized gains and losses on available for sale financial assets, which in particular showed a further worsening compared to 30 September 2011.

In detail, the reserve for unrealized gains and losses on available for sale financial assets, i.e., the balance between unrealized gains and losses on financial assets, net of life deferred policyholder liabilities and deferred taxes, went from € -184.4  million at 31 December 2010 to € -2,155.5 million. The change of the period of € -1,971.1 million was attributable to the decrease in value of all the Group’s investments. In detail, the change for € -1,218.2 was attributable to the negative performance  of the bond portfolio both with reference to the government bonds  (€ -819.9 million), influenced, in particular in the fourth quarter, by the rise of the interest rates in particular on the Italian bond, and with reference to corporate bonds (€ -398.3 million). Even if the fourth quarter shows a recovery of the equity prices, the change of the period attributable to the equity portfolio was negative (€ -659.4 million).

Shareholders' equity
(€ million) 31.12.2011 31.12.2010
Shareholders' equity attributable to the Group 15,485.6 17,489.8
Share capital 1,556.9 1,556.9
Capital reserves 7,097.9 7,098.3
Revenue reserves and other reserves 8,153.6 7,289.1
(Own shares) -403.4 -403.3
Reserve for currency translation differences 614.9 557.2
Reserve for unrealized gains and losses on available for sale financial assets -2,155.5 -184.4
Reserve for other unrealized gains and losses through equity -234.9 -125.8
Result of the period 856.1 1,701.9
Shareholders' equity attributable to minority interests 2,635.0 2,574.7
Total 18,120.5 20,064.5

The share capital is made up of 1,556,873,283 ordinary shares with a par value of € 1 each.

The Group’s own shares amounted to € 403.4 million (15,997,470 shares) and were stable compared to € 403.3 million (15,999,446 shares) on 31 December 2010.

The reserve for currency translation differences arising from the translation of the subsidiaries' financial statements denominated in foreign currencies, amounted to € 614.9 million (€ 557.2 million at 31 December 2010). The increase was due by the appreciation of some foreign currencies against the euro in 2011 (Swiss franc, US dollar and British pound), which had more than compensated the  depreciation of other foreign currencies (Czech koruna, Israeli shekel and Argentine peso).
The reserve for unrealized gains and losses on available for sale financial assets, i.e. the balance between unrealized gains and losses on financial assets, net of life deferred policyholder liabilities and deferred taxes, amounted to € - 2,155.5 million (€ - 184.4 million on 31December 2010). The worsening of the just mentioned reserve was due to a decrease in the value of both the government and corporate bonds as well as to the equity components.

The reserve for other unrealized gains and losses through equity includes gains and losses on GBP/Euro exchange rate and interest expense rates hedging derivative instruments, classified as cash flow hedge, realized following the issue of some subordinated liabilities. The unrealized gains and losses on hedging derivatives are deferred through this reserve of the shareholders’ capital and reversed to profit and loss account when the gains or losses on hedged items are recognized.

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IFRS Shareholders equity roll forward60.71 KB
AFS reserve breakdown93.97 KB