Property and casualty segment financial position

Property and casualty segment financial position

Investments

(in € million)31/12/2014Impact (%)31/12/2013Impact (%)
Equity instruments 3,346 8.7% 3,348 9.3%
Fixed income instruments 25,948 67.3% 23,975 66.6%
  Bonds 23,654 61.3% 22,149 61.5%
  Other fixed income instruments 2,294 5.9% 1,826 5.1%
Land and buildings (investment properties) 4,290 11.1% 4,645 12.9%
Other investments 1,203 3.1% 1,079 3.0%
  Investments in subsidiaries, associated companies and joint ventures 1,267 3.3% 1,188 3.3%
Derivatives -77 -0.2% -135 -0.4%
Other investments 14 0.0% 26 0.1%
Cash and cash equivalents 3,772 9.8% 2,947 8.2%
Total investments 38,559 100.0% 35,994 100.0%

Total investments in the property&casualty segment went from € 35,994 million at 31 December 2013 to € 38,559 million (+ 7.1%).

With reference to the exposure to the various asset classes, despite an increase in the absolute values, the weight of the fixed income portfolio remained stable at 67.3% (66.6% at 31 December 2013). A downward trend is registered regarding the exposure to equity instruments equal to 9.3% at 31 December 2013 to 8.7%, and also the exposure to the real estate investments equal to 11.1% (12.9% at 31 December 2013). Finally, the weight of cash and cash equivalents increased from 8.2% at 31 December 2013 to 9.8%.

Government bonds amounted to € 10,021 million (€ 10,872 million at 31 December 2013), reducing their weight to 26% (30.2% at 31 December 2013).

Corporate bonds increased to € 13,611 million (€ 11,277 million at 31 December 2013), equal to 57.6% (50.9% at 31 December 2013).

Lastly the average duration of the bond portfolio is 4,6 years (4,1 years at 31 December 2013), consistently with ALM Group.
strategy.

  31.12.2014  31.12.2013 
Current return (*)  3.5%   3.9% 
 Harvesting rate  1.0%   1.4% 
 P&L return  3.9%   4.6% 

The current return of total investments in the property&casualty segment slightly decreased to 3.5% (3.9% at 31 December 2013), with the related incomes amounting at € 1,307 million.

The harvesting rate decreased to 1.0% (1.4% at 31 December 2013) due to an increase in the impairment losses.

Property and Casualty insurance provisions

(€ million)31/12/201431/12/2013
Net provisions for unearned premiums 5,006 5,027
Net provisions for outstanding claims 24,651 24,076
Other net provisions 459 430
Property&Casualty insurance provisions 30,117 29,533
  of which Motor 13,254 13,503
  of which Non Motor 16,863 16,030