GROUP FINANCIAL POSITION IN THE PROPERTY&CASUALTY SEGMENT

Investments

Property and casualty segment: investments

(€ million)31/12/2015Composizione (%)31/12/2014Composizione (%)
Equity instruments 2,489 6.3% 3,346 8.7%
Fixed income instruments 26,680 67.3% 25,948 67.3%
  Bonds 23,793 60.0% 23,654 61.3%
  Other fixed income instruments 2,887 7.3% 2,294 5.9%
Land and buildings (investment properties) 4,338 10.9% 4,290 11.1%
Other investments 1,524 3.8% 1,203 3.1%
  Investments in subsidiaries, associated companies and joint ventures 1,541 3.9% 1,267 3.3%
  Derivatives -72 -0.2% -77 -0.2%
  Other investments 55 0.1% 14 0.0%
Cash and cash equivalents 4,593 11.6% 3,772 9.8%
Total investments 39,624 100.0% 38,559 100.0%

Total investments in the property&casualty segment rose from€ 38,559 million at 31 December 2014 to € 39,624 million (+ 2.8%).

With reference to the exposure to the various asset classes, against an increase in the absolute values, the percentage of the portfolio to fixed income remained stable at 67.3%. There was a fall in the exposure to equity instruments, which fell from 8.7% at 31 December 2014 to 6.3%, while the exposure to real estate investments was substantially stable at 10.9%. Finally, the percentage of cash and cash equivalents increased from 9.8% at 31 December 2014 to 11.6%.

With reference to the breakdown of the bond investment portfolio, exposure to government bonds increased, standing at € 10,317 million (€ 10,021 million at 31 December 2014), amounting to 43.4% of the portfolio (42.4% at 31 December 2014), against a reduction in the corporate component, of € 13,476 million (€ 13,633 million at 31 December 2014) with a ratio of 56.6% (57.6% at 31 December 2014).

Finally, the average duration of the bond portfolio was 5.0 years (4.6 years at 31 December 2014), in line with the ALM Group strategy.

Property&Casualty segment: return on investments

                         31/12/2015 31/12/2014 
Current return (*) 3.2% 3.5%
Harvesting rate 1.4% 1.0%
P&L return 4.1% 3.9%

(*) Net of depreciations.

The net current return of total investments in the property& casualty segment fell slightly to 3.2% (3.5% at 31 December 2014), with related incomes amounting at € 1,267 million (€ 1,307 million at 31 December 2014).

The harvesting rate increased to 1.4% (1.0% at 31 December 2014) due to a decrease in the impairment losses.

Property and Casualty insurance provisions 

Propery&Casualty: technical reserves 

(€ million)31/12/201531/12/2014
Net provisions for unearned premiums 4.972 5.006
Net provisions for outstanding claims 25.036 24.651
Other net provisions 475 459
Property&Casualty insurance provisions 30.482 30.117
  of which Motor 13.487 13.254
  of which Non Motor 16.996 16.863