Group financial position in the Property&Casualty segment


Property and casualty segment investments

(in € million)31/12/2017Impact (%)31/12/2016Impact (%)
Equity instruments2,2545.8%2,1515.5%
Fixed income instruments28,22473.0%28,88973.7%
Other fixed income instruments2,8257.3%3,3088.4%
Land and buildings (investment properties)3,8289.9%3,7789.6%
Other investments1,7824.6%1,4753.8%
Investments in subsidiaries, associated companies and joint ventures1,7784.6%1,4943.8%
Other investments-40.0%80.0%
Cash and cash equivalents2,5516.6%2,8917.4%
Total investments38,639100.0%39,183100.0%

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

Current return(*)3.0%3.0%
Harvesting rate0.7%0.5%
P&L return3.2%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)31/12/201731/12/2016
Net provisions for unearned premiums4,9745,011
Net provisions for outstanding claims24,41125,158
Other net provisions302476
Property&Casualty insurance provisions29,68730,645
  of which Motor13,41713,631
  of which Non Motor16,27017,014