The non-operating result of the Property&Casualty segment considerably improved to € -36 million (€ -250 million at 31 December 2016).
In particular, the non-operating result for financial management was up due to the lower losses on bond and equity investments, which fell from € -262 million at 31 December 2016 to € -135 million, and to lower net realized gains, which fell from € 400 million to € 290 million at 31 December 2017.
Net income from financial instruments at fair value through profit or loss increased, amounting to € 11 million (€ -110 million at 31 December 2016), while the other non-operating income and expenses decreased to € -202 million (€ -279 million at 31 December 2016), of which € -45 million related to the amortization of the value of acquired portfolios (€ -51 million at 31 December 2016).
This performance is basically attributable to the higher restructuring costs - for the most part in Germany - on the one hand, and on the other it benefits from € 196 million in income from the sale of the P&C portfolio in runoff of the UK branch last December.
Other information on the Property&Casualty segment
Property&Casualty segment operating and non operating result
| (€ million) | 31/12/2017 | 31/12/2016 | Change |
|---|---|---|---|
| Property&Casualty operating result | 1,972 | 2,073 | -4.9% |
| Net earned premiums | 19,661 | 19,446 | 1.1% |
| Net insurance benefits and claims | -12,804 | -12,663 | 1.1% |
| Acquisition and administration costs | -5,472 | -5,319 | 2.9% |
| Acquisition and administration costs related to insurance business | -5,469 | -5,316 | 2.9% |
| Other acquisition and administration costs | -3 | -2 | 14.7% |
| Fee and commission income and income from financial service activities | 0 | 0 | n.s. |
| Net operating income from financial instruments at fair value through profit or loss | 85 | 87 | -1.5% |
| Net operating income from other financial instruments | 873 | 903 | -3.3% |
| Interest income and other income | 1,139 | 1,165 | -2.2% |
| Interest expense on liabilities linked to operating activities | -64 | -83 | -23.3% |
| Other expenses from other financial instruments and land and buildings (investment properties) | -202 | -179 | 12.8% |
| Net other operating expenses | -372 | -381 | -2.3% |
| Property&Casualty non-operating result | -36 | -250 | n.m. |
| Net non-operating income from financial instruments at fair value through profit or loss | 11 | -110 | n.m. |
| Net non-operating income from other financial instruments | 155 | 139 | 11.9% |
| Net realized gains on other financial instruments and land and buildings (investment properties) | 290 | 400 | -27.4% |
| Net impairment losses on other financial instruments and land and buildings (investment properties) | -135 | -262 | -48.3% |
| Net other operating expenses | -202 | -279 | -27.8% |
| Property&Casualty earnings before taxes | 1,936 | 1,823 | 6.2% |