Insurance provisions

Net insurance provisions of the life segment
(€ 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

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

Excluding deferred policyholders liabilities, insurance provisions and financial liabilities related to investment(1) went from € 313,347.9 million at 31 December 2010 to € 316,563.6 million, thanks to the rise in both traditional portfolio provisions (up 2.3%), reflecting the metioned contribution of the net cash inflow and the investment result shared with policyholders.

(1) 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.

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).

Insurance provisions (gross)
 Direct insuranceAccepted reinsuranceTotal
(€ million) 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
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

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

 

 

Amounts ceded to reinsurers from insurance provisions
 Direct insuranceAccepted reinsuranceTotal
(€ million) 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010
Life amounts ceded to reinsurers from insurance provisions(*) 826.8 766.8 805.4 763.8 1632.2 1530.6
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 1068.7
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

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

Insurance provisions and financial liabilities related to policies of the life segment
 
Net
(€ million) 31.12.2011 31.12.2010
Insurance contracts 207,312.5 200,618.7
Investment contracts with discretionary participation feature 80,165.4 82,908.5
Total insurance provisions 287,477.9 283,527.2
Investments contracts fair valued 11,563.0 11,499.7
Investments contracts at amortised cost 4,106.8 3,871.4
Total financial liabilities 15,669.8 15,371.2
Total 303,147.7 298,898.4

Total insurance provisions include the following items: the mathematical provisions, and  the provisions for policies where the investment risk is borne by the policyholders and for pension fund net of reinsurance, which amounted to € 231,715.3 million and € 46,689.6 million, respectively; net ageing provisions for life segment, which amounted to € 9,073.0 million and were accounted for in other insurance provisions of the life segment.

The policies with significant insurance risk account for 68.4% of the total life portfolio (67.1% in 2010), while the investment contracts with discretionary participation feature account for 26.4% (27.7% in 2010).
The investment contracts within the scope of IAS 39 accounted for 5.2% compared to 5.1% in 2010. They are mainly unit/index linked policies without significant insurance risk.

Mathematical provisions and ageing for life segment
  Gross direct amount
(€ million) 31.12.2011 31.12.2010
Carrying amount as at 31 December previous year 234,245.7 220,026.1
Foreign currency translation effects -34.6 1,436.3
Premiums and payments -2,593.3 5,146.8
Interests and bonuses credited to policyholders 9,185.7 7,673.1
Change of the management component -23.2 -9.9
Transfer to Non-current assets or disposal groups classified as held for sale 0.0 0.0
Acquisitions, disinvestments and other movements -119.7 -26.7
Carrying amount as at 31 December current year 240,660.5 234,245.7

Interest and bonuses credited to policyholders include the attribution of financial return.
The decrease in premiums and payments was mainly attributable to the decline in net inflows in the traditional business recorded in the period.

Provisions for policies where the investment risk is borne by the policyholders and for pension funds
  Gross direct amount
(€ million) 31.12.2011 31.12.2010
Carrying amount as at 31st December previous year 49,385.8 41,926.4
Foreign currency translation effects -384.2 1,827.7
Premiums and claims 1,385.2 2,095.8
Interests and bonuses credited to policyholders -3,159.8 3,956.6
Acquisitions, disinvestments and other -422.8 -420.7
Transfer to Non-current assets or disposal groups classified as held for sale 0.0 0.0
Carrying amount as at 31st December current year 46,804.2 49,385.8

The development of the provisions for policies where the investment risk is borne by the policyholder and for pension funds highlights the decrease of the profit shared with policyholders due to the unrealised losses on assets backing unit/index linked policies triggered by the financial markets conditions.

Deferred policyholders liabilities
(€ million) 31.12.2011 31.12.2010
Carrying amount as at 31 December previous year -4,361.6 -559.2
Foreign currency translation effects 5.3 15.8
Change of the period -7,828.9 -3,818.1
Acquisitions and disinv estments 0.0 0.0
Carrying amount as at 31 December current year -12,185.2 -4,361.6

The development of the period was due to the significant decrease in value recorded mainly in the Group bond portfolio classified as available for sale instruments.

AttachmentSize
Life business development63.47 KB
FY11 technical reserves62.11 KB