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 total | Total book value | % of total | Total 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% |