Annual Report 2016

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7.2 Investment income

Table as Excel file: 
Investment income
in EUR thousand20162015
Income from real estate142,956140,994
Dividends27,4816,928
Interest income943,682993,218
Other investment income47,857112,303
Ordinary investment income1,161,9761,253,443
Profit or loss on shares in associated companies9,10119,169
Appreciation294616
Realised gains on investments294,017234,465
Realised losses on investments87,72198,618
Change in fair value of financial instruments26,066901
Impairments on real estate31,96628,212
Impairments on equity securities30,1411,889
Impairments on fixed-income securities6892,762
Impairments on participating interests and othe financial assets13,5265,851
Other investment expenses109,140101,202
Net income from assets under own management1,218,2711,270,060
Interest income on funds withheld and contract deposits453,643462,898
Interest expense on funds withheld and contract deposits121,49467,865
Total investment income1,550,4201,665,093

The impairments totalling EUR 47.4 million (EUR 15.0 million) were attributable in an amount of EUR 30.1 million (EUR 1.9 million) to equities or equity funds because their fair values had fallen either significantly (by at least 20%) or for a prolonged period (for at least nine months) below acquisition cost. Impairments of EUR 11.7 million (EUR 5.9 million) were taken on alternative investments, thereof EUR 11.4 million (EUR 5.9 million) on private equity. An impairment loss of just EUR 0.7 million (EUR 2.8 million) was taken in the area of fixed-income securities. In the real estate sector EUR 3.1 million (EUR 4.5 million) of the investments were recognised as impaired.

These write-downs contrasted with write-ups of EUR 0.3 million (EUR 0.6 million) made on investment property that had been written down in previous periods. The portfolio did not contain any overdue, unadjusted assets as at the balance sheet date since overdue securities are written down immediately.

Interest income on investments
in EUR thousand20162015
Fixed-income securities – held to maturity25,28061,439
Fixed-income securities – loans and receivables96,696106,911
Fixed-income securities – available for sale798,618802,858
Financial assets – at fair value through profit or loss3,1883,215
Other19,90018,795
Total943,682993,218

The net gains and losses on investments held to maturity, loans and receivables and the available-for-sale portfolio shown in the following table are composed of interest income, realised gains and losses as well as impairments and appreciation. In the case of the fixed-income securities at fair value through profit or loss designated in this category and the other financial assets, which include the technical derivatives, income and expenses from changes in fair value are also recognised.

Making allowance for the other investment expenses of EUR 109.1 million (EUR 101.2 million), net income from assets under own management of altogether EUR 1,218.3 million (EUR 1,270.1 million) was recognised in the year under review.

Table as Excel file: 
Net gains and losses on investments
2016
in EUR thousandOrdinary
investment
income1		Realised gains
and losses		Impairments / appreciationChange in
fair value		Net income from
assets under own
management2
Held to maturity
Fixed-income securities23,486(8)––23,478
Loans and receivables
Fixed-income securities95,8582,841––98,699
Available for sale
Fixed-income securities744,783161,068668–905,183
Equity securities21,1527,06030,141–(1,929)
Other invested assets138,30236,08615,342–159,046
Short-term investments15,41435––15,449
At fair value through profi or loss
Fixed-income securities3,622––(9,458)(5,836)
Other financial assets–––15,17715,177
Other invested assets–1,588–3,6525,240
Other128,460(2,374)29,87716,695112,904
Total1,171,077206,29676,02826,0661,327,411
1 Including income from associated companies, for reconciliation with the consolidated statement of income
2 Excluding other investment expenses
Table as Excel file: 
Net gains and losses on investments
2015
in EUR thousandOrdinary
investment
income1		Realised gains
and losses		Impairments
/ appreciation		Change in
fair value		Net income from
assets under own
management2
Held to maturity
Fixed-income securities61,6469812,365–60,262
Loans and receivables
Fixed-income securities103,7343,975––107,709
Available for sale
Fixed-income securities733,577170,517397–903,697
Equity securities2,1171141,889–342
Other invested assets192,9836466,694–186,935
Short-term investments18,65972––18,731
At fair value through profi or loss
Fixed-income securities3,215110–(260)3,065
Other financial assets1,099(5,684)–25,823(30,408)
Other invested assets–(23,525)–9,468(14,057)
Other155,582(11,359)26,75317,516134,986
Total1,272,612135,84738,0989011,371,262
1 Including income from associated companies, for reconciliation with the consolidated statement of income
2 Excluding other investment expenses
7.1 Gross written premium
7.3 Reinsurance result
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7.2 Investment income

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