4. Net investment income
In € thousand |
Property and casualty insurance |
Health insurance |
Life insurance |
Total |
||||
1–12/2017 |
1–12/2016 |
1–12/2017 |
1–12/2016 |
1–12/2017 |
1–12/2016 |
1–12/2017 |
1–12/2016 |
|
Investment property |
–2,910 |
414 |
15,647 |
3,881 |
40,932 |
41,685 |
53,670 |
45,980 |
Financial assets accounted for using the equity method |
8,396 |
5,551 |
16,133 |
11,741 |
25,662 |
21,322 |
50,190 |
38,614 |
Variable-income securities |
21,878 |
41,134 |
17,788 |
4,675 |
13,062 |
–1,881 |
52,728 |
43,928 |
Available for sale |
21,878 |
40,460 |
16,597 |
1,479 |
23,048 |
–1,551 |
61,523 |
40,388 |
At fair value through profit or loss |
0 |
674 |
1,191 |
3,196 |
–9,986 |
–330 |
–8,795 |
3,540 |
Fixed-income securities |
82,332 |
85,258 |
54,203 |
96,678 |
229,231 |
272,743 |
365,767 |
454,679 |
Available for sale |
82,634 |
85,920 |
55,252 |
95,805 |
223,959 |
264,650 |
361,845 |
446,375 |
At fair value through profit or loss |
–302 |
–662 |
–1,049 |
873 |
5,272 |
8,093 |
3,921 |
8,304 |
Loans and other investments |
3,442 |
6,995 |
1,421 |
5,396 |
35,820 |
43,725 |
40,683 |
56,116 |
Loans |
2,210 |
1,691 |
2,695 |
3,569 |
7,735 |
10,481 |
12,640 |
15,742 |
Other investments |
1,232 |
5,303 |
–1,274 |
1,827 |
28,085 |
33,244 |
28,043 |
40,374 |
Derivative financial instruments |
14,576 |
6,909 |
20,647 |
512 |
4,147 |
–21,976 |
39,370 |
–14,555 |
Investment administration expenses, interest paid and other investment expenses |
–19,164 |
–13,635 |
–9,472 |
–7,976 |
–12,834 |
–14,259 |
–41,470 |
–35,869 |
Total |
108,550 |
132,626 |
116,368 |
114,907 |
336,019 |
341,360 |
560,937 |
588,892 |
In € thousand |
Current income/expenses |
Gains/losses from disposals and changes in value |
Total |
of which impairment |
||||||
1–12/2017 |
1–12/2016 |
1–12/2017 |
1–12/2016 |
1–12/2017 |
1–12/2016 |
1–12/2017 |
1–12/2016 |
|||
|
||||||||||
Financial assets recognised at fair value through profit or loss |
6,517 |
–4,074 |
27,979 |
1,363 |
34,496 |
–2,711 |
0 |
0 |
||
Variable-income securities (within the framework of fair value option) |
1,945 |
3,601 |
–10,740 |
–61 |
–8,795 |
3,540 |
0 |
0 |
||
Fixed-income securities (within the framework of fair value option) |
4,002 |
2,758 |
–81 |
5,546 |
3,921 |
8,304 |
0 |
0 |
||
Derivative financial instruments |
570 |
–10,432 |
38,800 |
–4,123 |
39,370 |
–14,555 |
0 |
0 |
||
Investments under investment contracts1) |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
||
Available-for-sale financial assets |
383,100 |
409,656 |
40,269 |
77,107 |
423,369 |
486,763 |
–38,964 |
–78,140 |
||
Variable-income securities |
25,414 |
34,292 |
36,109 |
6,096 |
61,523 |
40,388 |
–1,843 |
–42,494 |
||
Fixed-income securities |
357,686 |
375,364 |
4,160 |
71,011 |
361,845 |
446,375 |
–37,121 |
–35,646 |
||
Loans and receivables |
42,006 |
54,562 |
–1,323 |
1,554 |
40,683 |
56,116 |
0 |
–2,202 |
||
Fixed-income securities |
8,362 |
13,965 |
800 |
306 |
9,162 |
14,271 |
0 |
0 |
||
Loans and other investments |
33,645 |
40,597 |
–2,123 |
1,248 |
31,521 |
41,845 |
0 |
–2,202 |
||
Investment property |
70,241 |
73,282 |
–16,571 |
–27,302 |
53,670 |
45,980 |
–13,029 |
–144 |
||
Financial assets accounted for using the equity method |
50,190 |
39,557 |
0 |
–944 |
50,190 |
38,614 |
0 |
0 |
||
|
|
|
|
|
|
|
|
|
||
Investment administration expenses, interest paid and other investment expenses |
–41,470 |
–35,869 |
0 |
0 |
–41,470 |
–35,869 |
0 |
0 |
||
Total |
510,584 |
537,115 |
50,353 |
51,778 |
560,937 |
588,892 |
–51,993 |
–80,486 |
||
Income from available-for-sale fixed-income securities includes losses of €24,697 thousand (2016: losses of € 0 thousand) and income from fixed-income and variable-income securities at fair value through profit or loss includes losses of €2,657 thousand (2016: gains of €577 thousand) from Level 3 valuations.
The adjustment of valuation allowances relates to both the reversal of impairment losses as well as the impairment of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. The interest income from impaired portfolio items amounts to €12,286 thousand (2016: €22,860 thousand).
Net investment income includes realised and unrealised profits and losses of €50,353 thousand (2016: €51,778 thousand); these include currency losses of €62,262 thousand (2016: currency gains of €10,778 thousand). These currency losses are essentially the result of investments in US dollars. The currency losses in the underlying US dollar securities amounted to around €68,199 thousand (2016: currency gains of €22,149 thousand), as compared to income from derivative financial instruments as part of hedging transactions in the amount of €28,943 thousand (2016: expenses in the amount of €1,451 thousand). In addition, negative currency effects in the amount of €22,936 thousand (2016: positive currency effects in the amount of €5,356 thousand) were recognised directly in equity.
Income from investment property includes rent revenue in the amount of €109,449 thousand (2016: €105,679 thousand) and direct operational expenses in the amount of €39,208 thousand (2016: €32,397 thousand).
In € thousand |
1–12/2017 |
1–12/2016 |
||
|
||||
Financial assets recognised at fair value through profit or loss |
|
|
||
Recognised in profit/(loss) for the period |
34,496 |
–2,711 |
||
Available-for-sale financial assets |
|
|
||
Recognised in profit/(loss) for the period |
423,369 |
486,763 |
||
of which reclassified from equity to consolidated income statement |
–130,195 |
–82,551 |
||
of which recognised in other comprehensive income1) |
–148,323 |
243,315 |
||
Net income |
275,045 |
730,078 |
||
Loans and receivables |
|
|
||
Recognised in profit/(loss) for the period |
40,683 |
56,116 |
||
Financial liabilities measured at amortised cost |
|
|
||
Recognised in profit/(loss) for the period |
–53,017 |
–67,477 |
||
Technical items
Insurance and reinsurance contracts along with investment contracts with a discretionary participation feature fall within the scope of IFRS 4 – Insurance Contracts. In accordance with IAS 8, the provisions of US Generally Accepted Accounting Principles (US GAAP) in the version applicable on 1 January 2005 were applied to all cases for which IFRS 4 contains no specific regulations on assessment and measurement. For balancing the accounts and evaluation of the insurance-specific entries of life insurance with profit participation, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and FAS 113 for reinsurance. Unit-linked life insurance, where the policyholder bears the entire investment risk, was accounted for in accordance with FAS 97.
Based on the regulations, technical items must be covered by suitable assets (cover funds). As is standard in the insurance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the Group.
Insurance and investment contracts
Insurance contracts are contracts through which a significant insurance risk is assumed. Investment contracts, i.e. contracts that do not transfer a significant insurance risk and that do not include a discretionary profit participation feature. They fall under the scope of IAS 39 (Financial Instruments).
Reinsurance contracts
Ceded reinsurance is stated in a separate item under assets. The profit and loss items (premiums and payments) are deducted openly from the corresponding items in the gross account, while commission income is reported separately as its own item. Reinsurance acquired (indirect business) is recognised as an insurance contract.