The Asset Management segment includes the activities exercised by asset management companies operating within the Group.
This segment operates as a provider of products and services both to the insurance companies of the Generali Group and to third-party clients. The products include equity and fixed-income funds, as well as alternative products. The aim pursued by Asset Management is to identify investment opportunities and sources of growth for all of its clients, while managing risks.
The segment includes companies specialised in institutional and retail clients, rather than in Group insurance companies or third-party clients, or in products such as real assets, high conviction strategies or more traditional investments.
Its scope includes, for example, companies in the Generali Investments group, Generali Real Estate, Generali Investments CEE and Fortuna Investments, to which are added the other companies linked to the multi-boutique strategy and some companies operating in Asia.
| (€ million) | 31/12/2018 | 31/12/2017 | Change |
|---|---|---|---|
| Asset under Management (€ billion) | 456 | 463 | -2% |
| Operating result | 335 | 261 | 28% |
| Net result | 235 | 189 | 24% |
| Cost/Income ratio | 46% | 54% | -8 pps |
The operating result of Asset Management increased from € 261 million in 2017 to € 335 million in 2018 (+28.2%). This increase was mainly due to the increase in the operating result of the Generali Investments group, made possible following the renegotiation of commissions on the insurance mandates of Group companies and the larger volumes on real assets, which also resulted in the increase in non-recurring commissions.
A proper cost-containment policy, together with business development aimed at increasing Assets under Management and consequently revenues, led to the positive results described above. Asset Management segment
Asset Management operating and non operating result
| (in milioni di euro) | 31/12/2018 | 31/12/2017 | Change |
|---|---|---|---|
| Asset Management operating result | 335 | 261 | 28.2% |
| Acquisition and administration costs | -177 | -153 | 15.4% |
| Fee and commission income and income from financial service activities | 470 | 404 | 16.4% |
| Net operating income from financial instruments at fair value through profit or loss | 3 | 1 | 93.5% |
| Net operating income from other financial instruments | 25 | 10 | 0.0% |
| Interests and other income | 64 | 53 | 19.0% |
| Net operating realized gains on other financial instruments and land and buildings (investment properties) | -2 | 0 | 0.0% |
| Net operating impairment losses on other financial instruments and land and buildings (investment properties) | 0 | 0 | 0.0% |
| Interest expenses on liabilities linked to operating activities | -1 | -1 | 35.0% |
| Other expenses from other financial instruments and land and buildings (investment properties) | -35 | -42 | -15.4% |
| Net other operating expenses | 15 | -1 | 0.0% |
| Asset Management non-operating result | -2 | -15 | -84.0% |
| Net non-operating income from financial instruments at fair value through profit or loss | 0 | 1 | -71.8% |
| Net non-operating income from other financial instruments | 0 | 0 | 0.0% |
| Net other non-operating expenses | -3 | -16 | -83.0% |
| Asset Management segment earnings before taxes | 333 | 247 | 34.8% |