Asset allocation


At 31 December 2014 total investments amounted to € 432.957 million, increasing by 12,99% over the previous year. Group investments amounted to € 365.250 million (+12,70%) and policy linked investments totaled € 67.707 million (+ 14,53%).

With reference to the weight of the main investment categories, there is an increase in exposure to fixed income securities, which amounted to 87,3% (84,8% at 31 December 2013) ) while that to equities, while increasing in absolute terms, is reduced at 4,8% (5,4% at 31 December 2013). A decrease in the weight of real estate investments, which amounted to 4,1% ( 4,6% at 31 December 2013) while other investments, mainly including receivables from banks or banking customers, investments and derivatives, remain stable at 1,0% (1,1% at 31 December 2013). Finally, the weight of liquidity decreased from 4,0% at 31 December 2013 at 2,8% in line with its progressive reinvestment.

Fixed income securities: bond portfolio

With reference to the composition of the bond portfolio, government securities, which accounted 56.8% (55.7% at 31 December 2013) show an increase amounting to € 165.014 million (€ 138.415 million at 31 December 2013). The change in the period is mainly attributable to the increase in the value of investments recorded in 2014. The exposure to individual bonds is mainly allocated to the respective countries of operation.

The corporate component increased in absolute terms to € 125.544 million (€ 110.117 million at 31 December 2013) equal to 43,2% of the bond portfolio (44,3% al 31 December 2013). The change is attributable to net purchases made during in the year.

The corporate component is divided between guaranteed bank corporate bonds, other financial sector bonds and bonds issued by industrial companies. With regards to new investments, non-financial sector bonds were preferred, with the aim of encouraging a greater level of diversification.

A breakdown by credit rating of the bond portfolio at December 31, 2014 split between corporate and government bonds follows:

Equity securities: equity portfolio

Equity securities increased slightly to € 17.610 million (€ 17.467 million at December 2013).

The change in the period is mainly attributable to the recovery of the value of investments, in particular direct investments that benefited from the positive trend in share prices.

Investment Property

Real estate investments in terms of book value amounted to € 14.872 (€ 14.935 million at 31 December 2013).

In particular, with reference to the composition of the property portfolio at fair value, amounting to € 17.650 million, the Group's investments are almost entirely allocated in Western Europe, mainly in Italy, France and Germany. In addition, the buildings are mainly allocated in their respective countries of operation.

Investment result 6

 31.12.2014 31.12.2013
Economic components    
Current income from fixed income instruments 10,651 10,359
Current income from equity instruments 639 501
Current income from investment properties(*) 862 890
Net realized gains 3.106 3.042
Net impairment losses -1,004 -852
Net unrealized gains 228 78
Average stock 345,860 322,008
Current return(*) 3.6% 3.7%
Harvesing rate 0.7% 0.7%
P&L return 4.4% 4.3%

(*) Net of depreciation of the period

6 For details on the calculation of this indicator, see the Methodological notes attached to this report.

The current return recorded a modest decline 3,5% (3,8% at 31 December 2013) while in absolute terms the current income increased to € 12.385 million (€ 12.081 million at 31 December 2013). The decline in the ratio is attributable to the significant increase in the average investments taking into account both, the reinvestment of cash at lower interest rates and the reduction in the credit spread of sovereign bonds of Eurozone countries.

The contribution to the result for the period from realized gains and losses through profit or loss (harvesting rate) remains unchanged at 0.7%.