Investments

In the property&casualty segment, total investments went from € 34,966 million at 31 December 2011 to € 37,952 million (up 10.3% on equivalent consolidation area).

In line with the de-risking strategy implemented by the Group also in this segment, the investment policy continued to favor investments in fixed income instruments, both corporate and government bonds, by diversifying risks and issuers, while equity instruments and real estate investments decreased.

While the weight of the fixed income portfolio increased to 69.6% (63.5% at 31 December 2011), the exposure to equity instruments went from 9.2% at 31 December 2011 to 6.9%, and the exposure to real estate dropped to 13.9% (15.7% at 31 December 2011). The weight of cash and cash equivalents also fell to 8.0% (9.9% at 31 December 2011), despite remaining temporarily at high levels.

Breaking down the bond portfolio, the exposure to government bonds increased to € 11,279 (€ 9,642 million at 31 December 2011), equal to 50.4% (50.2% at 31 December 2011). The change of the period was due to both the recovery in value of investments and net acquisitions.

Corporate bonds also increased to € 11,077 million (€ 9,552 million at 31 December 2011), equal to 49.6% (49.8% at 31 December 2011). The change was attributable to both the recovery in value of investments and to net acquisitions carried out during the year. With reference to the new investments the Group favored securities from the non-financial sector.

Lastly, the average duration of the bond portfolio was 3.7 years (4.4 years at 31 December 2011).

  31.12.2012 30.09.2012 31.12.2011
(€ million) Total book value % of total Total book value % of total Total book value % of total
Equity instruments 2,601 6.9 2,759 7.6 3,218 9.2
Fixed income instruments 26,419 69.6 24,505 67.5 22,194 63.5
Bonds 22.356 58.9 21,353 58.8 19,193 54.9
Other fixed income instruments 4,126 10.9 3,153 8.7 3,000 8.6
Land and buildings (investment properties) 5,289 13.9 5,296 14.6 5,474 15.7
Other investments  612 1.6 572 1.6 624 1.8
Investments in subsidiaries, associated companies and joint ventures 559 1.5 535 1.5 581 1.7
Derivatives 29 0.1 4 0.0 2 0.0
  0 0.0 0 0.0 0 0.0
Other investments 24 0.1 33 0.1 42 0.1
Cash and cash equivalents 3,029 8.0 3,194 8.8 3,457 9.9
Total 37,950 100.0 36,326 100.0 34,966 100.0