The Holding and other businesses segment includes the activities of the Group companies in the banking and asset management sectors, the costs incurred for the direction, coordination and financing activities, as well as all other operations that the Group considers to be ancillary to the core insurance business.
The operating result of the aforementioned business sectors are summarized in the table below:
Operating result of holding segment and other business by sector
| (in € million) | 31/12/2016 | 31/12/2015 | Change |
|---|---|---|---|
| Holding and other business Operating result | 59 | -74 | n.s. |
| Financial and other businesses | 513 | 384 | 33.6% |
| Holding operating expenses | -454 | -458 | -0.9% |
More specifically, the operating result of the Holding and other businesses segment amounted to € 59 million, considerably up compared to the € -74 million at 31 December 2016. This performance was mainly caused by the financial segment, particularly the excellent results of Banca Generali due to higher performance fees, as well as the positive results of the other asset management and real estate companies.
The operating result of the financial and other businesses segment grew to € 513 million (€ 384 million at 31 December 2016). The increase (33.6%) mainly reflects the above-mentioned result of Banca Generali, which rose from € 190 million to € 241 million at 31 December 2017, and due to the higher net commissions of Asset Management in Europe.
At 31 December 2017, the third-party assets managed by the Group banks and the asset management companies amounted to € 67,474 million (€ 56,324 million at 31 December 2016), up by 19.8%.
The net holding operating expenses stood at € -454 million (€ -458 million at 31 December 2016), down 0.9% owing to the € 12 million decrease in the holding expenses.
Operating and non operating result of the holding and other business segment
| (€ million) | 31/12/2017 | 31/12/2016 | Change |
|---|---|---|---|
| Holding and other businesses operating result | 59 | -74 | n.m. |
| Net earned premiums | 0 | 0 | -99.9% |
| Net insurance benefits and claims | 0 | 0 | n.m. |
| Acquisition and administration costs | -407 | -389 | 4.5% |
| Fee and commission income and income from financial service activities | 841 | 678 | 24.1% |
| Net operating income from financial instruments at fair value through profit or loss | 14 | 7 | 95.5% |
| Net operating income from other financial instruments | 166 | 190 | -12.8% |
| Interests and other income | 409 | 392 | 4.3% |
| Net operating realized gains on other financial instruments and land and buildings (investment properties) | 10 | 32 | -67.1% |
| Net operating impairment losses on other financial instruments and land and buildings (investment properties) | -8 | -2 | n.m. |
| Interest expenses on liabilities linked to to operating activities | -93 | -123 | -24.4% |
| Other expenses from other financial instruments and land and buildings (investment properties) | -152 | -109 | 40.5% |
| Net other operating expenses | -101 | -101 | -0.6% |
| Operating holding expenses | -454 | -458 | -0.9% |
| Holding and other businesses non-operating result | -767 | -815 | -5.9% |
| Net non-operating income from financial instruments at fair value through profit or loss | 15 | 14 | 9.7% |
| Holding and other businesses non-operating result | -782 | -829 | -5.7% |
| Net non-opeating income from other financial instruments | -2 | -12 | -81.7% |
| Net non-operating realized gains on ither financial instruments and land and buildings (investment properties) | 15 | 22 | -31.9% |
| Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) | -17 | -35 | -49.7% |
| Net other non-operating expenses | -24 | -23 | 2.8% |
| Non operating holding expenses | -756 | -794 | -4.7% |
| Interest expenses on financial debt | -673 | -723 | -6.9% |
| Holding non recurring expenses | -83 | -71 | 17.7% |
| Holding and other businesses result before taxes | -707 | -889 | -20.5% |