Return on investment
Return on investment
31.12.2012 | 31.12.2011 | |
---|---|---|
Current return | 3,9% | 4,3% |
Harvesting rate | -0,3% | -0,7% |
P&L return | 3,7% | 3,6% |
Comprehensive return | 11,7% | 0,1% |
The current return of life segment investments declined from 4.5% at 31 December 2011 to 4.1% owing to lower current income from the bond portfolio, due, in particular, to the de-risking policy on government bonds and equity portfolio, as well as to the incidence of cash, althought decreasing.
Instead, the contribution to the result of the period from harvesting operations improved, amounting to −0.3% −0.7% at 31 December 2011), which benefitted from both the decrease in impairment, in particular on bond portfolios, and the recovery in value of investments recognized through profit and loss.
The comprehensive return increased significantly from 0.1% at 31 December 2011 to 11.7%. This trend was attributable to the improvement in the financial markets conditions, which determined a recovery in value of equity and, mainly, bond portfolios recognized in particular in other comprehensive income, compared the drop in value of bond investments observed from the second quarter of 2011 due to the tensions surrounding the sovereign bonds of countries of the Euro Area with high public sector debt.
Business performace of life segment
(€ million) | 31.12.2012 | 31.12.2011 | Fourth quarter 2012 |
Fourth quarter 2011 |
---|---|---|---|---|
Net operating income from financial instruments at fair value through profit or loss | 5,937 | -3,055 | 1,615 | 1,167 |
of which net income from financial assets and liabilities related to unit and index -linked policies | 4,563 | -3,159 | 1,155 | 988 |
Net operating income from other financial instruments | 8,600 | 9,336 | 1,285 | 2,474 |
Interest income and other income | 10,441 | 11,030 | 2,553 | 2,788 |
Net operating realized gains on other financial instruments and land and buildings (investment properties) | 967 | 2,019 | 455 | 554 |
Net operating impairment losses on other financial instruments and land | -1,979 | -2,967 | -1,469 | -667 |
Interest expense on liabilities linked to operating activities | -309 | -269 | -107 | -66 |
Other expenses from other financial instruments and land and buildings (investment properties) | -521 | -476 | -146 | -134 |
Net non-operating income from other financial instruments | -754 | -579 | -527 | -189 |
Net non-operating realized gains on other financial instruments and land and buildings (investment properties)(1) |
-164 | -143 | -95 | -48 |
Net non-operating realized gains on other financial instruments and land and buildings (investment properties)(1) |
-590 | -436 | -433 | -141 |
Attachment | Size |
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Investment yields | 67.81 KB |
Life investment strategy and yields | 92.59 KB |