Eng
ItaDebt
In accordance with the IAS/IFRS managerial model used by the Generali Group, consolidated liabilities were split into two categories:
- Liabilities linked to operating activities, which are all the consolidated financial liabilities related to specific consolidated balance sheet items. This category also includes liabilities related to investment contracts issued by insurance companies and liabilities to banks and customers of banks belonging to the group;
- Liabilities linked to financing activities, including other consolidated financial liabilities, such as subordinated liabilities, bonds issued and other loans received. This category includes, for example, liabilities arising from operations carried out to acquire controlling interests.
Total liabilities were as follows:
| (€ million) | 31.12.2013 | 30.09.2013 | 31.12.2012 |
|---|---|---|---|
| Liabilities linked to operating activities | 49,258 | 50,183 | 50,671 |
| Liabilities linked to financing activities | 12,758 | 12,713 | 13,234 |
| Subordinated liabilities | 7,612 | 7,577 | 7,833 |
| Senior bonds | 4,468 | 4,467 | 4,464 |
| Other non subordinated liabilities linked to financing activities | 678 | 670 | 937 |
| Total | 62,016 | 62,896 | 63,905 |
The variation of financial debt compared to the stock at 31 December 2012 is mainly due to the repayment in cash of a subordinated loan for a nominal amount of € 200 million and a senior debt, classified as "Other non-subordinated liabilities linked to financing activities" for a nominal amount of € 350 million.
The weighted average cost of financial debt at 31 December 2013 amounted to 5.93%, stable with respect to 30 September 2013 (5.93%) slightly increasing with respect to 31 Dicember 2012 at 5.85%. The weighted average cost reflects the annualized cost of financial debt considering the outstanding debt at the reporting date and the related activities of currency and interest rate hedging.
Interest expenses on total liabilities are detailed as follows:
| (€ million) | 31.12.2013 | 31.12.2012 | Variazione |
|---|---|---|---|
| Interest expense on liabilities linked to operating activities | 547 | 569 | -3.9% |
| Interest expense on liabilities linked to financing activities | 751 | 668 | 12.4% |
| Total(*) | 1,298 | 1,237 | 4.9% |
Financial liabilities at fair value through profit or loss
| Financial liabilities held for trading | Financial liabilities designated as at fair value through profit or loss | Total | ||||
|---|---|---|---|---|---|---|
| (€ million) | 31.12.2013 | 31.12.2012 | 31.12.2013 | 31.12.2012 | 31.12.2013 | 31.12.2012 |
| Financial liabilities related to investment contracts issued by insurance companies |
0 | 0 | 13,270 | 12,650 | 13,270 | 12,650 |
| where the investment risk is borne by the policyholders |
0 | 0 | 11,743 | 11,188 | 11,743 | 11,188 |
| pension funds | 0 | 0 | 1,484 | 1,414 | 1,484 | 1,414 |
| other financial liabilities related to investment contracts |
0 | 0 | 42 | 48 | 42 | 48 |
| Derivatives | 561 | 358 | 571 | 721 | 1,131 | 1,079 |
| Hedging derivatives | 0 | 0 | 894 | 1,028 | 894 | 1,028 |
| Other financial liabilities | 0 | 0 | 789 | 796 | 789 | 796 |
| Total | 561 | 358 | 15,523 | 15,194 | 16,084 | 15,553 |
Other financial liabilities
| (€ million) | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Subordinated liabilities | 7,612 | 7,833 |
| Loans and bonds | 14,312 | 15,641 |
| Deposits received from reinsurers | 997 | 1,077 |
| Bonds(**) | 4,915 | 4,975 |
| Other loans | 3,738 | 4,643 |
| Financial liabilities related to investment contracts issued by insurance companies | 4,663 | 4,947 |
| Liabilities to banks or customers | 24,008 | 24,880 |
| Liabilities to banks | 1,616 | 2,147 |
| Liabilities to customers | 22,392 | 22,733 |
| Total | 45,932 | 48,354 |
(**) Including senior bond issued in May 2010 to fund the tax recognition of goodwill related to the extraordinary operation Alleanza Toro for a nominal amount of € 560 million (at 31.12.2013 the related book value amounted to € 447 million). This issue was classified as operating debt because the debt structure provides a perfect correlation between cash flows arising from the recognition of taxes and loan repayments in terms of interest than capital.
Details of the main issuances
Subordinated liabilities
The table below summarizes the main subordinated issuances in the market and their features:
| Issuer | Coupon | Outstanding(***) | Currency | Amortised cost(****) | Issue date | Call date | Maturity |
|---|---|---|---|---|---|---|---|
| Generali Finance B.V. | 5.32% | 1,275 | EUR | 1,252 | 16.06.2006 | 16.06.2016 | Perp |
| Generali Finance B.V. | 6.21% | 700 | GBP | 839 | 16.06.2006 | 16.06.2016 | Perp |
| Assicurazioni Generali | 6.27% | 350 | GBP | 418 | 16.06.2006 | 16.06.2026 | Perp |
| Generali Finance B.V. | 5.48% | 1,250 | EUR | 938 | 08.02.2007 | 08.02.2017 | Perp |
| Assicurazioni Generali | 6.42% | 495 | GBP | 590 | 08.02.2007 | 08.02.2022 | Perp |
| Assicurazioni Generali | 10.13% | 750 | EUR | 747 | 10.07.2012 | 10.07.2022 | 10.07.2042 |
| Assicurazioni Generali | 7.75% | 1,250 | EUR | 1,245 | 12.12.2012 | 12.12.2022 | 12.12.2042 |
Subordinated liabilities issued by Assicurazioni Generali S.p.A. and other subsidiaries in the form of private placements are also classified in this category. The unquoted private placements issued by Assicurazioni Generali S.p.A. for a nominal amount of € 1,500 million, are accounted for at a corresponding amortized cost of € 1,485 million, including bank financing of € 500 million. The remaining subordinated liabilities are mainly issued by BSI, for a nominal amount USD 100 million, and other other debt issued by Austian companies. The total corresponding amortised cost amounted to € 98 million.
The fair value of subordinated liabilities amounts to € 8,053 million.
Senior bonds
The category of bonds includes various senior issues shown below:
| Issuer | Taux nominal | Outstanding(5) | Currency | Amortised cost(6) | Issue date | Maturity |
|---|---|---|---|---|---|---|
| Generali Finance B.V. | 4.75% | 1,500 | EUR | 1,492 | 12.05.1999 | 12.05.2014 |
| Generali Finance B.V. | 3.88% | 500 | EUR | 499 | 06.05.2005 | 06.05.2015 |
| Assicurazioni Generali | 4.88% | 750 | EUR | 742 | 11.03.2009 | 11.11.2014 |
| Assicurazioni Generali | 5.13% | 1,750 | EUR | 1,721 | 16.09.2009 | 16.09.2024 |
Other senior bonds issued by Ceska Pojistovna for a nominal amount of CZK 500 million corresponding to an amortized cost of € 14 million are also classified in this category.
The fair value of bonds issued (mainly fixed interest rate bonds) amounted to € 5,165 million.
Liabilities to banks and customers are mainly payable on demand or short term liabilities.
Other payables
| (€ million) | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Payables arising out of direct insurance operations | 3,190 | 3,314 |
| Payables arising out of direct insurance operations | 572 | 646 |
| Other payables | 4,367 | 4,073 |
| Payables to employees | 1,037 | 982 |
| Provision for defined benefit plans (employee severance pay) | 102 | 103 |
| Payables to clients and suppliers | 1,155 | 1,023 |
| Social security | 186 | 149 |
| Other payables | 1,887 | 1,817 |
| Total | 8,129 | 8,033 |
| Attachment | Size |
|---|---|
| Leverage | 111.35 KB |
| Focus on financial debt | 84.19 KB |
| Financial debt breakdown by expiry date/call date | 82.21 KB |