Property & Casualty segment investments
| (€ million) | 31/12/2018 | Impact (%) | 31/12/2017 | Impact (%) |
|---|---|---|---|---|
| Equity instruments | 2,279 | 6.0% | 2,254 | 5.9% |
| Fixed income instruments | 26,751 | 70.8% | 27,686 | 72.8% |
| Bonds | 23,574 | 62.4% | 24,861 | 65.3% |
| Other fixed income instruments | 3,177 | 8.4% | 2,825 | 7.4% |
| Land and buildings (investment properties) | 4,012 | 10.6% | 3,828 | 10.1% |
| Other investments | 2,034 | 5.4% | 1,774 | 4.7% |
| Investments in subsidiaries, associated companies and joint ventures | 2,008 | 5.3% | 1,766 | 4.6% |
| Derivatives | 25 | 0.1% | 8 | 0.0% |
| Other investments | 1 | 0.0% | 0 | 0.0% |
| Cash and cash equivalents | 2,729 | 7.2% | 2,502 | 6.6% |
| Total investments | 37,806 | 100.0% | 38,044 | 100.0% |
Total investments in the Property & Casualty (P&C) segment fell from € 38,044 million at 31 December 2017 to € 37,806 million (-0.6%).
With reference to the exposure to the various asset classes, the fixed income portfolio showed a slight increase, amounting to € 26,751 million, with a weight to total of 71%. Following the net purchasing position adopted by Group, the exposure to equity instruments increased slightly, from 5.9% at 31 December 2017 to 6.0%, while the exposure to investment properties went from 10.1% to 10.6%. Finally, the weight of cash and other cash equivalents increased from 6.6% at 31 December 2017 to 7.2%.
With reference to the bond portfolio breakdown, the exposure to government bonds decreased, standing at € 11,625 million (€ 12,441 million at 31 December 2017), with a weight of 43.5% (44.9% at 31 December 2017), as did the exposure to corporate bonds, amounting to €11,949 million, with a weight of 44.7% (44.9% at 31 December 2017).
The average duration of the bond portfolio was 5.5 years (5.5 years at 31 December 2017), in line with the Group’s ALM strategy.
Property & Casualty segment return on investments
| 31/12/2018 | 31/12/2017 | |
|---|---|---|
| Current return (*) | 3.1% | 3.0% |
| Harvesting rate | 0.1% | 0.7% |
| P&L return | 2.6% | 3.2% |
(*) Net of depreciations.
The net current return on investments in the P&C segment increased compared to 31 December 2017, standing at 3.1%, with the relative income amounting to € 1,180 million (€ 1,154 million at 31 December 2017).
The harvesting rate decreased to 0.1% (0.7% at 31 December 2017), due to a more prudent harvesting policy and a greater impact of the impairment losses.