Investments

Total investments in the non-life segment went from € 36,408.9 million at 31 December 2010 to  € 34,966.0 million (down 4.0%).

This reduction is conditioned by the financial context which, in particular in the third quarter of the year, was characterized by a sharp decline in the value of the equity investments which, at the end of 2011 amounted to € 3,218.2 million (€ 4,000.4 million at 31 December 2010).

Moreover, the prosecution of the reallocation policy of the real estate investment to the life segment resulted in the reduction of this asset class, which went from € 6,387.8 million at 31 December 2010 to
€ 5,473.9 million.

Moreover, as part of the bond portfolio investment strategy, taking into consideration the sharp decline in the value of the portfolios determined by the tensions stressed in the last quarter of the year, the Group continued to invest in this asset class, favouring the diversification of risks and issuers, thus maintaining this investments stable at € 22,193.6 million (21,876.6 million at 31 December 2010). Lastly, with reference to the corporate bonds, short deadlines are preferred medium, thus benefiting from a lower capital absorption.

The Group also increased the weight of their investments in liquidity instruments, which increased from € 3,183.7 million to € 3,456.6 million.

The undertaken investment strategy thus determined an increase of the weight of cash and cash equivalents to 9.9% (8.7% at 31 December 2010) and of the fixed-income investments to 63.5% (60.1% at 31 December 2010) whereas the exposure to both equities, which fell from 11.0% at 31 December 2010 to 9.2%, and the real estate, which weight of which declined to 15.7% (17.5% at 31 December 2010).

With reference to the composition of the bond portfolio, the Group continued to invest in government bonds, the exposure to which rose from 49.0% at 31 December 2010 to 50.2%, whereas the weight of the corporate bonds decreased to 49.8% (51.0% at 31 December 2010). Finally, the portfolio's average duration remained virtually stable at 4.4 years at 31 December 2011.

Breakdown of investments by asset classes of the Property & Casualty segment
 
31.12.2011 30.09.2011 31.12.2010
(€ million)Total book value% of totalTotal book value% of totalTotal book value% of total
Equity instruments(*) 3,218.2 9.2 3,460.4 9.8 4,000.4 11.0
Available for sale financial assets 2,962.5 8.5 3,203.0 9.1 3,689.0 10.1
Financial assets at fair value through profit or loss 255.7 0.7 257.3 0.7 311.4 0.9
Fixed income instruments (**) 22,193.6 63.5 23,039.6 65.2 21,876.6 60.1
Bonds 19,193.4 54.9 20,307.7 58.1 19,230.4 52.8
Other fixed income instruments(**) 3,000.2 8.6 2,731.8 7.7 2,646.2 7.3
Held to maturity investments 171.0 0.5 200.6 0.6 214.0 0.6
Loans 4,477.4 12.8 4,296.2 12.2 4,405.5 12.1
Available for sale financial assets 17,054.1 48.8 18,060.0 51.1 16,573.9 45.5
Financial assets at fair value through profit or loss 491.1 1.4 482.8 1.4 683.1 1.9
Land and buildings (investment properties) (***) 5,473.9 15.7 5,533.7 15.7 6,387.8 17.5
Other investments 623.8 1.8 826.6 2.3 960.4 2.6
Investments in subsidiaries, associated companies and joint ventures 580.7 1.7 783.1 2.2 907.9 2.5
Derivatives (****) 1.6 0.0 -15.3 0.0 15.3 0.0
Receivables from banks or customers 0.0 0.0 0.0 0.0 0.0 0.0
Other investments 41.5 0.1 58.7 0.2 37.2 0.1
Cash and cash equivalents (*****) 3,456.6 9.9 2,469.9 7.0 3,183.7 8.7
Total (******) 34,966.0 100.0 35,330.1 100.0 36,408.9 100.0

(*) Investment fund units amounted to € 551.2 million (€ 607.8 milion at 30 September 2011 and € 635.6 milion at 31 December 2010).

(**) Investment fund units amounted to € 561.5 million (€ 571.3 milion at 30 September 2011 and € 524.3 milion at 31 December 2010).

(***) Investment fund units amounted to € 160.8 million (€ 167.8 milion at 30 September 2011 and € 161.6 milion at 31 December 2010).

(****) Taking into account derivative instruments booked as liabilities which amount to € 56.8 million (€ 73.8 milion at 30 September 2011 and € 28.6 milion at 31 December 2010).

(*****) Taking into account Reverse REPO which amount to € 141.3 million (€ 228.7 milion at 30 September 2011 and € 317.7 milion at 31 December 2010) and REPO which amount to € 0 million (€ 9.0 milion at 30 September 2011 and € 7.8 milion at 31 December 2010).

(******) Taking into account derivative instruments booked as liabilities and REPO.

Breakdown of investments by country
(€ million) 31.12.2011 30.09.2011 31.12.2010 Change
YE2011/YE2010
Total investments - non-life segment 34,966.0 35,330.1 36,408.9 -4.0%
Italy 11,464.6 11,480.7 12,379.7 -7.4%
France 5,240.4 5,282.6 5,257.6 -0.3%
Germany 5,417.3 5,655.1 5,815.0 -6.8%
Central and Eastern Europe 3,273.0 3,331.5 3,364.9 -2.7%
Rest of Europe 8,108.7 8,195.3 8,172.0 -0.8%
of which Spain 1,737.0 1,729.5 1,897.1 -8.4%
of which Austria 2,655.7 2,689.7 2,606.3 1.9%
of which Switzerland 1,297.8 1,262.5 1,257.6 3.2%
Rest of World 1,462.0 1,384.8 1,419.8 3.0%