Return on investment

  31.12.2012 31.12.2011
Current return 4.1% 4.3%
Harvesting rate -1.1% -0.5%
P&L return 2.2% 2.9%
Comprehensive return 7.5% 1.3%

The current return of total investments in the property&casualty segment remained substantially stable at 4.1% (4.3% at 31 December 2011), sustained in particular by the bond portfolio despite the de-risking measures implemented on the government component.

The slight worsening of the harvesting rate, which amounted to −1.1% (−0.5% at 31 December 2011), was caused by higher impairment recorded on equity instruments, only partly offset by the increase in net realized gains and the recovery in value recognized through profit and loss.

Lastly, the comprehensive return improved considerably, going from 1.3% at 31 December 2011 to 7.5% which benefitted from the recovery recorded, in particular in equity, of all asset classes.

(€ million)  31.12.2012  31.12.2011 Fourth quarter
2012
Fourth quarter
2011
Business performance of non - life segment 1,082 1,127 284 266
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 1,086 268 249
Interest income and other income(1)
1,465 1,569 364 384
Interest expense on liabilities linked to operating activities -155 -171 -44 -53
Other expenses from other financial instruments and land and buildings (investment properties) -278 -312 -52 -82
Non-operating income from investments        
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 49 149
Net impairment losses on other financial instruments and land and buildings (investment properties) -746 -653 -534 -158

(1) Starting from 31 march 2012, in order to give a fairer presentation of property development activities within the operating result framework, the related item "Interest income and other income" and "Interest expenses on liabilities linked to operating activities" (respectively € 21 million and € -28 million at 31 december 2011) have been reclassified into net other operating expenses, which includes all income and expenses typical of this business. Consequently, comparative periods has been restated accordingly.

 

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P&C investment strategy and yields90.77 KB
Investment yields67.81 KB
Operating ratio on investments76.82 KB