UNIQA Group Report 2015 - 13. Investments

The investments are subdivided into the following classes or categories of investments:

as at 31 December 2015 In € thousand	Variable-income securities	Fixed-income securities	Loans and other investments	Derivative financial instruments	Investments under investment contracts	Total
Investments at fair value through profit or loss	76,892	354,607	0	126,545	58,452	616,497
Available-for-sale financial assets	659,499	18,495,071	0	0	0	19,154,570
Loans and receivables	0	510,092	1,111,317	0	0	1,621,409
Total	736,391	19,359,770	1,111,317	126,545	58,452	21,392,476
of which fair value-option	76,892	354,607	0	0	0	431,500

Enlarge table

as at 31 December 2014 In € thousand	Variable-income securities	Fixed-income securities	Loans and other investments	Derivative financial instruments	Investments under investment contracts	Total
Investments at fair value through profit or loss	98,005	364,630	0	122,340	53,664	638,639
Available-for-sale financial assets	625,189	18,016,323	0	0	0	18,641,512
Loans and receivables	0	715,656	633,546	0	0	1,349,202
Total	723,194	19,096,609	633,546	122,340	53,664	20,629,354
of which fair value-option	98,005	364,630	0	0	0	462,635

The fair values are comprised as follows:

as at 31 December 2015 In € thousand	Level 1	Level 2	Level 3	Total
Investments at fair value through profit or loss	15,091,868	4,460,070	201,207	19,753,145
Available-for-sale financial assets	14,891,290	4,062,073	201,207	19,154,570
Variable-income securities	282,976	175,315	201,207	659,499
Fixed-income securities	14,608,314	3,886,758	0	18,495,071
Investments at fair value through profit or loss	200,578	397,997	0	598,575
Variable-income securities	6,107	70,786	0	76,892
Fixed-income securities	152,355	202,252	0	354,607
Derivative financial instruments	0	108,623	0	108,623
Investments under investment contracts	42,116	16,336	0	58,452

as at 31 December 2014 In € thousand	Level 1	Level 2	Level 3	Total
Investments at fair value through profit or loss	14,364,591	4,250,790	632,281	19,247,662
Available-for-sale financial assets	14,164,806	3,852,616	624,090	18,641,512
Variable-income securities	235,397	195,422	194,371	625,189
Fixed-income securities	13,929,409	3,657,195	429,719	18,016,323
Investments at fair value through profit or loss	199,785	398,174	8,191	606,150
Variable-income securities	0	89,814	8,191	98,005
Fixed-income securities	158,976	205,654	0	364,630
Derivative financial instruments	0	89,851	0	89,851
Investments under investment contracts	40,808	12,855	0	53,664

Measurement procedures and input factors in ascertaining the fair values

Level	Financial instruments	Valuation method	Input factors
1	Listed securities	Market value oriented	Nominal values, stock exchange prices
2	not listed securities, derivatives, loans	Net present value approach	Cash flows already fixed or determined via forward rates, yield curve, credit risk of the contracting parties
2	Asset Backed Securities	Net present value approach	Probability of default Loss given default Expected advance payment Discount rate
3	Other shareholdings	Net present value approach	WACC (long-term) revenue growth rate (long-term) profit margins control premium

Net results by measurement categories in accordance with IFRS 7

	1-12/2015		1-12/2014
	Net results	of which: impairment	Net results	of which: impairment
Investments at fair value through profit or loss
- of which held for trading	–52,062	0	–97,252	0
- of which fair value-option	14,467	0	–9,525	0
Total	–37,595	0	–106,778	0

Available-for-sale financial assets
- of which recognised in profit/(loss) for the period	796,539	–24,686	989,967	–30,287
- of which recognised in other comprehensive income	–152,429	8,213	1,143,498	220
- of which reclassification from equity to consolidated income statement	–87,860	28,737	–174,736	3,149
Total	556,251	12,265	1,958,730	–26,918

Financial liabilities measured at amortised cost	–50,243	0	–37,343	0

The overall interest expenditure from financial instruments amounts to 51,902 thousand (2014: 35,797 thousand). The income from financial instruments amounts to 665,580 thousand (2014: 693,342 thousand).

Level 3 financial instruments

The shares in Raiffeisen Zentralbank Österreich Aktiengesellschaft (RZB shares) are essentially allocated to level 3 in accordance with the hierarchy according to IFRS 13. They come under the category “Available-for-sale”

Financial instrument	Fair value as at 31/12/2015	Valuation method	Non-observable input factors
RZB shares	135,848	DFC-method	WACC (long-term) revenue growth rate (long-term) profit margins control premium
Other	65,360	DFC-method	WACC (long-term) revenue growth rate (long-term) profit margins control premium

The following table shows the changes to the fair values of securities whose measurement procedures are not based on observable input factors.

In € thousand	RZB shares	ABS	Other	Total
As at 1 January 2015	138,935	437,638	55,707	632,281
Transfers into level 2	0	–215,062	–53	–215,115
Gains and losses recognised in the income statement	0	31,765	0	31,765
Gains and losses recognised in other comprehensive income	–3,087	610	5,850	3,372
Purchases	0	73,482	4,145	77,627
Sales/redemptions	0	–328,433	–287	–328,721
Changes from currency translation	0	0	–2	–2
Change in basis of consolidation	0	0	0	0
As at 31 December 2015	135,848	0	65,360	201,207

The sensitivity analysis was determined in the course of a valuation report and relates to a change in the discount interest rate and the increase or decrease in the growth rate.

The sensitivity analyses for the RZB shares are shown below.

Sensitivity analysis for RZB 2015	2015		2014
In € thousand	Upside	Downside	Upside	Downside
Through income statement	0	0	0	0
Through equity	19,886	–15,813	18,600	–14,900
Effect of changes in the discount rate (+/–1%)	19,886	–15,813	18,600	–14,900
Through income statement	0	0	0	0
Through equity	455	–557	300	–400
Effect of changes in the growth rate (+/–1%)	455	–557	300	–400

Loans

	Carrying amounts
In € thousand	31/12/2015	31/12/2014
Loans to affiliated companies	1,600	1,800
Loans to participations	8,000	0
Mortgage loans	27,962	34,651
Loans and advance payments on policies	12,674	14,236
Other loans	8,901	69,260
Reclassified bonds	510,092	715,656
Total	569,228	835,603

In € thousand	31/12/2015	31/12/2014
Impairments	30,101	30,382

On 1 July 2008, securities previously available for sale were reclassified in accordance with IAS 39/50E as other loans. Overall, fixed-income securities with a carrying amount of € 2,129,552 thousand were reclassified. The corresponding amount from the measurement of the financial instruments available-for-sale as at 30 June 2008 was €–98,208 thousand.

Reclassified bonds	2015	2014	2013	2012	2011	2010	2009	2008
In € thousand
Carrying amount as at 31 December	510,092	715,656	788,061	906,435	1,089,093	1,379,806	1,796,941	2,102,704
Fair value as at 31 December	534,468	759,872	812,455	928,162	981,394	1,345,580	1,732,644	1,889,108
Change in fair value	–19,839	19,822	129,426	129,426	–73,987	30,586	149,299	–213,596
Redemption income/expense	–697	2,391	348	348	332	473	5,917	–61
Impairment	0	–3,539	0	0	–25	–8,043	0	0

	Fair values
In € thousand	31/12/2015	31/12/2014
Loans to affiliated companies	1,600	1,800
Loans to participations	8,000	0
Mortgage loans	27,962	34,651
Loans and advance payments on policies	12,674	14,236
Other loans	8,901	69,260
Registered bonds
Reclassified bonds	534,468	759,872
Total	593,604	879,818

Contractual maturities	Fair values
In € thousand	31/12/2015	31/12/2014
No maturity date	8,000	10,647
up to 1 year	280,963	426,904
more than 1 year up to 5 years	176,383	282,047
more than 5 years up to 10 years	35,139	61,301
more than 10 years	93,119	98,920
Total	593,604	879,818

Impairment	31/12/2015	31/12/2014
Figures in € thousand	31/12/2015	31/12/2014
Change in impairment for current year	3,084	5,507
of which recognised in profit or loss	3,084	5,507