Asset Management segment

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)31/12/201831/12/2017Change
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)31/12/201831/12/2017Change
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%