Investment by asset classes

  31.12.2012 31.12.2011
(€ million)  Total
book value
Impact
(%)
Total
book value
Impact
(%)
Equity instruments 15,652 4.6 17,098 5.5
Available for sale financial assets 12,980 3.8 14,384 4.6
Financial assets at fair value through profit or loss 2,672 0.8 2,714 0.9
Fixed income instruments  274,916 81.1 241,278 77.6
Bonds 243,771 71.9 211,437 68.0
Other fixed income instruments xInvestment fund units amounted to € 9,439.8 milion (€ 8,877.1 milion at 31 December 2009). 31,145 9.2 29,841 9.6
Held to maturity investments 7,538 2.2 5,293 1.7
Loans 61,347 18.1 68,030 21.9
Available for sale financial assets 197,066 58.2 158,835 51.1
Financial assets at fair value through profit or loss 8,965 2.6 9,120 2.9
Land and buildings (investment properties) 15,064 4.4 15,322 4.9
Other investments 12,598 3.7 12,458 4.0
Investments in subsidiaries, associated companies and joint ventures 1,692 0.5 1,905 0.6
Derivatives 707 0.2 563 0.2
Receivables from banks or customers 9,034 2.7 8,847 2.8
Other investments 1,165 0.3 1,142 0.4
Cash and cash equivalents 20,589 6.1 24,659 7.9
Total 338,817 100.0 310,814 100.0
Investments back to unit and index-linked policies 53,842   58,312  
Total investiments 392,659   369,126  

At 31 December 2012 total investments of the life segment increased to € 330,873 million (up 11.2% on equivalent consolidation area compared to 31 December 2011). Group investments amounted to € 277,032 million (up 11.1% on equivalent consolidation area), while linked policy investments reached € 53,842 million (up 11.8% on equivalent consolidation area).

In the life segment over the year the Group continued an investment strategy essentially based on an asset allocation in line with the technical reserve profile and, at the same time, keeping an adequate level of profitability for the undertakings with policyholders. In particular, within the Euro Area, measures were taken to pursue the objective of considerably reducing cross-border exposure, by matching the liabilities of each country of operations with domestic government bonds from that same country, without prejudice to the principle of matching assets and liabilities by currency.

The exposure to equity instruments decreased to 4.5% (5.3% at 31 December 2011), while the incidence of fixed income instruments increased from 81.7% at 31 December 2011 to 85.2%. The Group’s real estate investment was substantially stable with its weight of 3.5%, while the weight of cash and cash equivalents fell to 4.7% (6.8% at 31 December 2011).

Breaking down the bond investment portfolio, the exposure to government bonds slightly increased to € 119,019 million (€ 100,784 million at 31 December 2011), equal to 55.9% of this asset class (54.2% at 31 December 2011). The change of the period was due to both the recovery in value of investments and net acquisitions.

The corporate component also increased to € 93,954 million (€ 85,329 million at 31 December 2011), equal to 44.1% of the bond portfolio (45.8% at 31 December 2011). The increase was due to both the recovery in value of investments in the financial and non-financial sectors and net acquisitions carried out during the year; specifically, the Group preferred securities aiming at reducing credit risk and thereby optimizing the capital absorbed by this asset class.

AttachmentSize
Life investment strategy and yields81.95 KB
P&C investment strategy and yields81.19 KB
Quality of FY12 fixed income portfolio73.63 KB
Focus on FY12 government bond portfolio73 KB
Focus on FY12 corporate bond portfolio72.59 KB
Focus on FY12 equity portfolio73.38 KB
FY12 Group real estate assets (1/2)70.59 KB
FY12 Group real estate assets (2/2)68.89 KB