Business performance

Operating result
(€ million)   31.12.2012  31.12.2011 Fourth quarter
2012
Fourth quarter
2011
Operating result - non-life segment 1,664 1,561 505 357
Net earned premiums 20,700 20,662 4,937 5,295
Net insurance benefits and claims -14,114 -14,247 -3,165 -3,580
Acquisition and administration costs -5,716 -5,715 -1,421 -1,529
Acquisition and administration costs related to insurance business -5,699 -5,700 -1,415 -1,527
Other acquisition and administration costs -17 -16 -7 -2
Fee and commission income and income from financial service activities 0 0 0 0
Net operating income from financial instruments at fair value through profit or loss 50 41 16 17
Net operating income from other financial instruments 1,031 1,086 268 256
Interest income and other income 1,465 1,569 364 405
Interest expense on liabilities linked to operating activities -155 -171 -44 -67
Other expenses from other financial instruments and land and buildings (investment properties) -278 -312 -52 -83
Net other operating expenses -288 -266 -129 -103
Non-operating result - non-life segment -916 -606 -744 -89
Net non-operating income from financial instruments at fair value through profit or loss 30 -34 9 -6
Net non-operating income from other financial instruments -576 -409 -485 -9
Net realized gains on other financial instruments and land and buildings (investment properties) 170 244 49 150
Net impairment losses on other financial instruments and land and buildings (investment properties) -746 -653 -534 -158
Net other non-operating expenses -370 -162 -268 -74
Earnings before taxes - non-life segment 747 955 -238 268

Operating result: Other operating items

Other operating items in the property&casualty segment, which mainly include acquisition and administration costs not related to the insurance business, depreciation of tangible assets and amortization of multi-annual costs, provisions for recurring risks and other taxes, amounted to € −275 million (€−236 million at 31 December 2011) substantially due to higher indirect taxes.

 

Non-operating result

The non-operating result of the property&casualty segment was € −916 million (€ −606 million at 31 December 2011).

In particular, the worsening in the non-operating investment result was due to both the increase in impairment losses primarily on equity portfolios, amounting to € −746 million (€ −653 million at 31 December 2011) and the drop in net realized gains amounting to € 170 million (€ 244 million at 31 December 2011). Benefitting from the recovery in the value of investments, net income from financial instruments at fair value through profit or loss instead increased, amounting to € 30 million (€ −34 million at 31 December 2011).

Net other non-operating expenses went from € −162 million at 31 December 2011 to € −370 million, € -75 million of which related to the amortization of the value of acquired portfolios (€ -77 million at 31 December 2011), due to higher provisions for non-recurring risks.