The Holding and other businesses segment includes the activities of the Group companies in the banking and asset management sectors, the costs incurred for the direction, coordination and financing activities, as well as all other operations that the Group considers to be ancillary to the core insurance business.
The operating result of the aforementioned business sectors are summarized in the table below:
| (€ million) | 31/12/2018 | 31/12/2017 | Change |
|---|---|---|---|
| Holding and other businesses operating result | -70 | -163 | -57.1% |
| Financial and other businesses | 397 | 291 | 36.3% |
| Holding operating expenses | -467 | -454 | 2.9% |
The operating result of the Holding and other businesses segment came to € -70 million, an improvement compared to € -163 million at 31 December 2017.
In particular, the operating result of the financial and other businesses posted an increase, to € 397 million (€ 291 million at 31 December 2017). The 36.3% increase reflected mainly the performance, particularly in the last quarter, recorded in Lion River and Planvital. The result of Banca Generali was slightly lower at € 233 million (-3.6%).
Net holding operating expenses amounted to € -467 million (€ -454 million at 31 December 2017), reflecting higher costs for the disposal in Germany and the execution of the new asset management strategy, as well as lower revenues from brand fees.
Holding and other business segment operating and non operating result
| (€ million) | 31/12/2018 | 31/12/2017 | Change |
|---|---|---|---|
| Holding and other businesses segment operating result | -70 | -163 | -57.1% |
| Net earned premiums | 1 | 0 | n.m. |
| Net insurance benefits and claims | 0 | 0 | -50.5% |
| Acquisition and administration costs | -259 | -252 | 2.8% |
| Fee and commission income and income from financial service activities | 441 | 438 | 0.8% |
| Net operating income from financial instruments at fair value through profit or loss | 10 | 12 | -17.6% |
| Net operating income from other financial instruments | 245 | 193 | 27.1% |
| Interests and other income | 501 | 395 | 26.8% |
| Net operating realized gains on other financial instruments and land and buildings (investment properties) | 14 | 11 | 27.9% |
| Net operating impairment losses on other financial instruments and land and buildings (investment properties) | -19 | -8 | n.m. |
| Interest expenses on liabilities linked to operating activities | -97 | -92 | 5.2% |
| Other expenses from other financial instruments and land and buildings (investment properties) | -154 | -113 | 35.9% |
| Net other operating expenses | -42 | -100 | -58.4% |
| Operating holding expenses | -467 | -454 | 2.9% |
| Holding and other businesses non operating result | -717 | -751 | -4.5% |
| Net non-operating income from financial instruments at fair value through profit or loss | 3 | 14 | -79.7% |
| Holding and other businesses non-operating result | -720 | -765 | -5.9% |
| Net non-operating income from other financial instruments | 109 | -2 | n.m. |
| Net non-operating realized gains on other financial instruments and land and buildings (investment properties) | 88 | 15 | n.m. |
| Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) | 21 | -17 | n.m. |
| Net other non-operating expenses | -34 | -8 | n.m. |
| Non-operating holding expenses | -795 | -755 | 5.2% |
| Interest expenses on financial debt | -666 | -673 | -1.0% |
| Holding non recurring expenses | -128 | -82 | 56.1% |
| Holding and other businesses segment earnings before taxes | -787 | -914 | -13.9% |