Non-operating result

Non-operating result
 31.12.201331.12.2012FOURTH QUARTER 2013FOURTH QUARTER 2012
Consolidated non-operating result -1,805 -2,441 -921 -1,401
Net non-operating income from financial instruments at fair value through profit or loss -206 28 -132 8
Net non-operating income from other financial instruments(**) 212 -1,384 108 -1,064
Net non-operating realized gains on other financial instruments and land and buildings (investment properties) 835 2 456 -45
Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) -623 -1,386 -348 -1,020
Non-operating  holding  expenses -806 -673 -209 -177
Interest expenses on financial debt -751 -668 -187 -175
Other non-operating holding expenses -55 -5 -22 -2
Net  other  non-operating  expenses(***) -1,004 -413 -688 -168

(**) The amount is gross of interest expense on liabilities linked to financing activities.

(***) The amount is net of the share attributable to the policyholders in Germany and Austria.

The non-operating result of the Group improved, from € -2,441 million at 31 December 2012 to € -1,805 million.

In detail:

  • net impairment losses decreased from € -1,386 million at 31 December 2012 to € -623 million, as a result of lower impairment losses on equity portfolios;
  • net realized gains increased from € 2 million al 31 dicembre 2012 a € 835 million due to higher gains, in particular from equity portfolios, and lower losses on bond portfolios, which had been negatively impacted by the Group’s de-risking policy in 2012. This item also includes the effect of € 290 million resulting from the new provisions relating to participation in Banca d’Italia4;
  • net non-operating income from financial instruments at fair value through profit or loss amounted to € -206 million (€ 28 million at 31 December 2012) mainly due to the minimal performance of various financial markets compared to the same period of the previous year;
  • net other non-operating expenses, which include net non-recurring income and the amortization of the value of acquired portfolios, amounted to € -1,004 million (€ -413 million at 31 December 2012), of which € 363 million was associated with the amortization of the value of acquired portfolios (€ 184 million at 31 December 2012). The increase was primarily attributable to : the revision of the useful life of the savings management customer portfolio referring to the Banca Svizzera Italiana group which resulted in the full amortization of the remaining value of the portfolio, for € 189 million; the one-off impact of € 193 million resulting from the strengthening of French claims reserves as a result of the new market regulation on bodily injury; € 131 million due to write-downs of certain properties classified as inventories; non-recurring expenses related to the corporate restructuring initiatives currently underway of approximately € 20 million;
  • non-operating holding expenses, essentially composed of interest expenses on financial liabilities, rose to € -806 million (€ -673 million at 31 December 2012) due to both higher interest expenses on financial liabilities mainly related to the issue of new bonds in July and December 2012, and the extraordinary entry bonus granted to some top managers, paid for in Parent Company’s shares and approved by the last General Shareholders’ Meeting, as well as other non-recurring expenses related to the Group’s reorganization projects of and non-recurring transactions incurred by the Parent Company in order to implement strategic initiatives announced in the financial community during 2013.

4. For further information, refer to the comments included in the non-operating result of the property&casualty segment.

Assicurazioni Generali S.p.A. - C.F. e P.IVA 00079760328