Investments
Property and casualty segment investments
| (in € million) | 31/12/2017 | Impact (%) | 31/12/2016 | Impact (%) |
|---|---|---|---|---|
| Equity instruments | 2,254 | 5.8% | 2,151 | 5.5% |
| Fixed income instruments | 28,224 | 73.0% | 28,889 | 73.7% |
| Bonds | 25,399 | 65.7% | 25,581 | 65.3% |
| Other fixed income instruments | 2,825 | 7.3% | 3,308 | 8.4% |
| Land and buildings (investment properties) | 3,828 | 9.9% | 3,778 | 9.6% |
| Other investments | 1,782 | 4.6% | 1,475 | 3.8% |
| Investments in subsidiaries, associated companies and joint ventures | 1,778 | 4.6% | 1,494 | 3.8% |
| Derivatives | 8 | 0.0% | -27 | -0.1% |
| Other investments | -4 | 0.0% | 8 | 0.0% |
| Cash and cash equivalents | 2,551 | 6.6% | 2,891 | 7.4% |
| Total investments | 38,639 | 100.0% | 39,183 | 100.0% |
Total investments in the property&casualty segment fell from € 39,183 million at 31 December 2016 to € 38,639 million (-1.4%).
With reference to the exposure to the various asset classes, the fixed income portfolio was down to € 28,224 million, accounting for 73% of the total. On the other hand, there was a slight increase in the exposure to equity instruments, from 5.5% at 31 December 2016 to 5.8%, in the aftermath of the improved share prices, and the exposure to real estate investments increased from 9.6% to 9.9%.
Finally, the percentage of cash and cash equivalents decreased from 7.4% at 31 December 2016 to 6.6%.
With reference to the breakdown of the bond investment portfolio, in line with the Group’s ALM strategy, exposure to government bonds increased, standing at € 12,825 million (€ 12,166 million at 31 December 2016), amounting to 50.5% of the portfolio (47.6% at 31 December 2016), against a reduced corporate component, of € 12,574 million, with a ratio of 49.5% (52.4% at 31 December 2016).
Finally, the average duration of the bond portfolio was 5.5 years (5.4 years at 31 December 2016), in line with the Group’s ALM strategy.
Property&Casualty segment return on investments
| 31/12/2017 | 31/12/2016 | |
|---|---|---|
| Current return(*) | 3.0% | 3.0% |
| Harvesting rate | 0.7% | 0.5% |
| P&L return | 3.2% | 3.2% |
(*) Net of depreciations.
The net current return of total investments in the Property&Casualty segment was stable at 3% compared to 31 December 2016, with related incomes decreasing to € 1,168 million (€ 1,217 million at 31 December 2016).
The harvesting rate increased to 0.7% (0.5% at 31 December 2016).
Property&Casualty insurance provisions
Propery&Casualty: technical reserves
| (in milioni di euro) | 31/12/2017 | 31/12/2016 |
|---|---|---|
| Net provisions for unearned premiums | 4,974 | 5,011 |
| Net provisions for outstanding claims | 24,411 | 25,158 |
| Other net provisions | 302 | 476 |
| Property&Casualty insurance provisions | 29,687 | 30,645 |
| of which Motor | 13,417 | 13,631 |
| of which Non Motor | 16,270 | 17,014 |