Operating result

The Group’s operating result amounted to € 4,895 million, up by 2.3% (€ 4,783 million at 31 December 20161), which reflects the positive performance of the Life and Holding and other businesses segments. The operating result of the P&C segment is confirmed solid regardless of the bigger impact of catastrophe claims.
The operating return on equity, the Group’s main economic profitability target, came to 13.4% (unchanged compared with the 31 December 2016 figure), confirming the achievement of the strategic target (>13%).

Total operating result by segment

(€ million)  31/12/201731/12/2016Change
Total operating result4,8954,7832.3%
Life segment3,1413,0841.8%
Property&Casualty segment1,9722,073-4.9%
Holding and other business59-74n.m
Consolidation adjustments-278-300-7.4%

In particular, the Life result, € 3,141 million, increased by 1.8% due to the performance of the investment result that benefited from higher realised gains and lower impairments. Technical performance net of insurance and other operating expenses instead fell.
The P&C operating result, which amounted to € 1,972 million, dropped by 4.9% as it reflected on the one hand the bigger impact of the natural catastrophes for € 124 million (including the US hurricanes in August and September and the storms that struck central Europe in July and August) and, on the other, the lower contribution of financial result in the context of a continuing low level of interest rates. The combined ratio came to 92.8%, ranking number one amongst our peers, consistent with the Group’s strategic policy of technical excellence.

Improvement of the operating result of the Holding and other businesses segment, which totalled € 59 million (€ -74 million at 31 December 2016), reflects the excellent performance of Banca Generali, the reduction in holding operating costs and the positive result of the other asset management and real estate businesses.

Operating result by country

Total operating result
(€ million)31/12/201731/12/2016
Central Eastern Europe481461
    Europ Assistance8890
Investments, Asset & Wealth Management**468321
Group holding, other companies and countries adjustments-532-615

* Adding to the above mentioned total International the part of the business related to the Global Business Lines “Global Business and Commercial” also signed in the countries, the total operating result for GBL & International amounts to € 1,191 mln.
** Adding to the above mentioned total Investments, Asset & Wealth Management also the result of AM of the Central and Eastern European countries, the total operating amounts
to of € 482 mln.

1 As aforementioned, The 2016 comparative figures were likewise reclassified For further information refer to paragraph “Changes in the presentation of the performance indicators of the Group” in Note on Management Report