The shareholders’ equity attributable to the Group amounted to €23,601 million, a decrease of 5.9% compared to €25,079 million at 31 December 2017. The change was mainly attributable to:
- the result of the period attributable to the Group, which amounted to € 2,309 million at 31 December 2018;
- the dividend distribution of € 1,330 million, carried out in 2018;
- other comprehensive income (€ -2,517) due to both the reduction in the reserve for unrealized gains or losses on available for sale financial assets of € -2,288 million, mainly arising from the performance of bonds as a result of expansion in spreads for the year, as well as the reduction in the reserve attributable to disposal groups of € -283 million, partially offset by the increase in unrealized gains or losses for defined benefit plans of € 81 million.
Rollforward of Shareholders’ equity
|Shareholders' equity attributable to the Group at the end of the previous period||25,079||24,545|
|Result of the period||2,309||2,110|
|Other comprehensive income||-2,517||-100|
|Reserve for unrealized gains and losses on available for sale financial assets||-2,288||162|
|Foreign currency translation differences||-32||-158|
|Net unrealized gains and losses on hedging derivatives||22||58|
|Net unrealized gains and losses on defined benefit plans||81||22|
|Other net unrealized gains and losses||-300||-183|
|Shareholders' equity attributable to the Group at the end of the period||23,601||25,079|
The Regulatory Solvency Ratio - which represents the regulatory view of the Group’s capital and is based on the use of the internal model, solely for companies that have obtained the relevant approval from IVASS, and on the Standard Formula for other companies - stood at 216% (207 % 31 December 2017; +9 pps). The trend was mainly determined by the solid normalized generation of capital and by the contribution of both the regulatory changes in the model (including expansion of the internal model to Austria and Switzerland) and the M&A activities completed during the year, which more than offset the negative economic variances of the period and the expected dividend distribution.
Starting from 31 December 2018, the Economic Solvency Ratio, which represented the economic view of the Group’s capital and was calculated by applying the internal model to the entire Group perimeter, will no longer be published, as the difference between the regulatory and economic view tapered with the reduction in the perimeter of entities still in the approval phase (Austria for the health business and Spain).
Risk Report, for additional information on the Group’s solvency position