Font size


Net investment income
in EUR million 2013 2012
1 Including depreciation/impairments on real estate
2 Portfolio at fair value through profit or loss
  1.1. - 31.3. +/-
previous year
1.1. - 31.3.
Ordinary investment income 246.1 -4.7% 258.2
Result from participations in associated companies 1.1 -39.6% 1.8
Realised gains/losses 34.8 -8.0% 37.8
Appreciation 0.2 -13.7% 0.2
Impairments on investments1 3.2 -55.1% 7.2
Unrealised gains/losses2 3.3 -96.1% 84.6
Investment expenses 21.3 +15.6% 18.4
Net investment income from assets under own management 260.9 -26.9% 356.9
Net investment income from funds withheld 93.8 +12.1% 83.7
Total investment income 354.7 -19.5% 440.6

Yields on US treasury securities and on German, French and UK government bonds remained broadly unchanged in the first quarter of the year. The picture as regards countries with higher risk premiums – presently the focus of so much attention – was a mixed one: while Spanish, Irish and Portuguese bonds recovered slightly, the same was only true of shorter durations in the case of Italian sovereign bonds; increases in yields were recorded here in the medium duration segment. Credit spreads in the area of European and US corporate bonds, on the other hand, largely remained stable across most rating classes. In total, the unrealised gains on our fixed-income securities decreased to EUR 1,658.6 million (EUR 1,714.6 million). Our portfolio of assets under own management continued to grow to EUR 32.5 billion (EUR 31.9 billion) thanks to the pleasing inflow of cash from the technical account and from investing activities.

Despite the sustained low level of interest rates, ordinary investment income excluding interest on deposits was only slightly lower than in the corresponding period of the previous year at EUR 246.1 million (EUR 258.2 million); this can be attributed principally to the enlarged investment portfolio, although the appreciable expansion of the corporate bonds asset class over the past two years is also a factor here. Interest on deposits increased from EUR 83.7 million to EUR 93.8 million.

Impairments of altogether just EUR 3.2 million (EUR 7.2 million) were taken. This includes impairments of EUR 0.3 million (EUR 3.3 million) on alternative investments. Scheduled depreciation on directly held real estate rose to EUR 2.9 million (EUR 2.6 million), a reflection of our greater involvement in this area. The write-downs contrasted with write-ups of EUR 0.2 million (EUR 0.2 million).

We recognise a derivative for the credit risk associated with special life reinsurance treaties (ModCo) under which securities deposits are held by cedants for our account; the performance of this derivative in the period under review gave rise to unrealised gains of EUR 5.6 million (EUR 36.8 million) recognised in investment income. The inflation swaps taken out in 2010 to hedge part of the inflation risks associated with the loss reserves in our technical account have produced unrealised losses in the year to date of EUR 1.7 million recognised in investment income, as against unrealised gains of EUR 42.6 million in the corresponding quarter of the previous year. The changes in the fair values of the inflation swaps are recognised in income as a derivative pursuant to IAS 39. In economic terms we assume a neutral development for these two items over time, and hence the volatility that can occur in specific quarters has scarcely any bearing on the actual business performance. Altogether, the unrealised gains on our assets recognised at fair value through profit or loss amounted to EUR 3.3 million (EUR 84.6 million).

The net balance of gains realised from the sale of securities stood at EUR 34.8 million (EUR 37.8 million); it can be attributed primarily to regrouping in our fixed-income holdings as part of regular portfolio management.

While our net investment income fell short of the level in the comparable period, which was boosted by exceptionally high unrealised gains, it was still highly gratifying in the face of a capital market climate that remains challenging. It amounted to EUR 260.9 million (EUR 356.9 million) in the period under review, equivalent to an annualised average return (including effects from derivatives) of 3.2% for our portfolio of assets under own management.


Your last visited pages:

More Information

Topic related links within the report:

Topic Navigation

Build your own individual report according to the topics you are interested in. Choose the topics which are essential for you.

show all

My Interim Report

Your page has been added successfully. Please click on "My Interim Report" in the service section to see your selection.

Link für Popup