Consolidated financial statements Consolidated financial

Transcription

ITAS
ITAS MUTUA
MUTUA
Consolidated
Consolidated
financial
financial
statements
statements
As
As at
at 31
31stst December
December
2014
2014
Oscar di Bilancio
Imprese di Assicurazione
Quotate e Non Quotate
VINCITORE
2013
INDEX
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31ST DECEMBER 2014
PART A – Management Report .....................................................................
1
PART B – Consolidated Financial Statements ................................................. 24
Balance Sheet ............................................................................................ 24
Income Statement ...................................................................................... 26
Statement of Comprehensive Income ............................................................ 27
Statement of Changes in Equity .................................................................... 28
Statement of Cash Flow ............................................................................... 29
Explanatory Notes to the Consolidated Financial Statements .................. 30
PART C – General Approach and Scope of Consolidation ................................. 30
PART D – Valuation Methods ....................................................................... 35
PART E – Risk Report ................................................................................. 61
PART F – Specific supporting information on items in the Financial Statements.. 83
PART G – Other Information........................................................................ 114
PART H – Annexes to the Consolidated Financial Statements ........................... 118
................................................................................................................ 145
AS AT 31ST DECEMBER 2014
MANAGEMENT REPORT
The Consolidated Financial Statements of Gruppo ITAS Assicurazioni as at 31 st December 2014
have been prepared in accordance with the International Financial Reporting Standards adopted by
the European Union on 31st December 2014. The term International Financial Reporting Standards
(“IFRS”) refers to all the international accounting conventions and standards termed International
Financial Reporting Standards (abbreviated hereafter as “IFRS”) and International Accounting
Standards (abbreviated hereafter as “IAS”), and related interpretations of the standards by the
International Financial Reporting Interpretations Committee (“IFRIC”), formerly known as the
Standing Interpretations Committee (“SIC”).
The Consolidated Financial Statements aggregate the financial position and earnings results of the
Group’s Companies on a “line-by-line” basis.
In order to provide a clearer representation of the total amounts stated in direct alignment with the
size of the Group, the consolidated financial statements, as governed by ISVAP Regulation n. 7 of
13th July 2007 (as amended by the stipulations under Regulations n. 2784 of 8th March 2010, n. 14
of 28th January 2014, n. 21 of 21st October 2014 and n. 29 of 27th January 2015), are expressed to
the nearest Euro cent. The amounts present in the Explanatory Notes to the Consolidated Financial
Statements are expressed in thousands of Euros (€k), unless otherwise stated.
The accounting figures used for consolidation purposes have been approved by the relevant
Board(s) of Directors, and have been reclassified and amended in order to align them with those of
the Parent Company.
Compared to the previous reporting period, the composition of Gruppo ITAS has changed following
the formation of the Società per Azioni a Socio Unico (Joint-Stock Company with Sole Shareholder)
ITAS Patrimonio S.p.A., to which the real estate arm of ITAS Mutua has been transferred, with a
total book value of €118 million. In this manner, the Group’s intention has been to give greater
specialisation and dynamism to the management of the rich real estate asset base built up over
almost two centuries of the Group’s existence.
1
MANAGEMENT REPORT
GRUPPO ITAS – GROUP STRUCTURE AS AT 31ST DECEMBER 2014:
m. € = thousands of Euros (€k)
The transaction has not generated impacts at the Consolidated Financial Statement level, in that
the Real Estate arm has been transferred at constant carrying and tax amounts and the Parent
Company is the holder of 100% of the shares of the transferred arm.
2
MANAGEMENT REPORT
THE MACROECONOMIC ENVIRONMENT AND THE INSURANCE INDUSTRY
The year that has just been ended has been characterised by a recovery in the Eurozone’s
economy: according to EUROSTAT data, gross domestic product recorded an annual growth rate of
0.9% compared to 2013.
After having posted marked declines in GDP in the past few years, the value of total economic
output registered only a modest decline of -0.3% in real terms. For 2015, the forecasts of the
Banca d’Italia (the Italian Central Bank) instead signal an expected growth rate of over half a
percentage point: the economy should be driven in particular by growth in private consumption,
thanks to growth in disposable income and gradual (albeit modest) growth in employment. The
unexpected decline in crude oil prices could, in addition, contribute to giving greater impetus to the
competitiveness of the Italian industrial sector, as well as increasing available spending power for
consumption.
GDP Growth Rate (2013-2014)
0.5%
0.3%
Growth Rate %
0.1%
-0.1%
-0.3%
-0.5%
Q3 - 2013
Q4 - 2013
Q1 - 2014
Italy
Q2 - 2014
Q3 - 2014
Q4 - 2014
Euro Zone (19 Countries)
Source: Eurostat (Gross Domestic Product at market prices - seasonally adjusted)
In 2014, Italian financial markets registered a stabilisation in bond market prices, with
Government bond yields having fallen in particular. The extraordinary programme of measures put
in place by the European Central Bank through the reduction of the official discount rate, as well as
through massive injections of liquidity in the form of loans to the banking system, in fact translated
into increases in demand for Government securities right from the commencement of the
programme. The net effect of these measures resulted in the yield of the Italian 10 Year BTP falling
from 4.125% at the end of 2013 to 1.890% at the end of 2014. The overall market context is also
leading to capital being directed towards equity markets, which has set the scene for support and
growth of market prices, even if the instability of the socio-political environment may threaten the
trend’s full continuity.
3
MANAGEMENT REPORT
TREND IN THE 10-YR ITALIAN BTP/GERMAN BUND SPREAD
BTP-Bund Spread
Source: www.borse.it
The challenging economic conditions experienced in the last few years have also had a negative
impact on the insurance industry: according to the most recent data issued by ANIA (the Italian
National Association of Insurance Companies), total written premiums in the non-life sector
recorded their second consecutive year of contraction compared to the previous year (-3.5%
compared to December 2013).1 The decrease is particularly attributable to the Motor Third Party
Liability line, which recorded a decrease in written premiums of 6.8%, due to intense price
competition and flat total vehicle numbers in Italy. The other lines of business in the non-life sector
experienced a modest increase (at +1.1%) due, however, to the growth in secondary lines.
Lines of business in the life sector reaffirmed their sustained trend of development, driven
by Class I policies, with estimated growth of 32.5% in written premiums when compared to
December 2013. The macroeconomic and financial market conditions mentioned above are driving
Italians to direct their savings towards (life) insurance products.
2
1
Source: IVASS – Q3 2014 Insurance Industry Survey (total premiums).
4
MANAGEMENT REPORT
GRUPPO ITAS CORPORATE STRATEGY – INFORMATION AND RELEVANT FACTS
Over the course of the year, the Group has once again proved able to steer itself above market
pressures, recording a significant increase in the volume of business, as evidenced by gross earned
premiums reaching €842 million (+36.8% over 2013 volumes). When analysed at the segment
level, the figures reveal growth of 6.3% in premiums for the Non-Life segment in the context of a
marked contraction in the market as a whole and growth of 125.3% in premiums for the Life
segment (with the Life market as a whole experiencing growth of 30.2% in premium income).
Total premium income, also including investment contracts2, amounted to €908 million in the
year, which was an increase of €234 million over the total for 2013.
The strong business performance recorded confirms the Group’s ability to reinforce and, indeed,
reach its own objectives as set out in the 2013-2015 Strategic Plan “Qrescere Qonsapevoli”
(“Growing with awareness”), with the results having been achieved under a particularly
balanced business environment, as evidenced by a loss ratio (i.e. claims to premiums ratio)
for retained business in the non-life segment of 69.0%, representing a marked improvement on
the equivalent for 2013 (74.9%). The technical performance contributed to the enhancement of
the result from insurance operations and investment management which, at the end of the
year, recorded a remarkable profit (€36,630 thousand), an increase of €27,934 thousand over
that achieved in 2013.
With particular reference to the non-life sector, the significant recovery in the combined ratio is
highlighted, having reached 99.0% - an improvement of over 4 percentage points compared
to that recorded in the preceding year.
Notwithstanding the general decrease in market interest rates, on the financial front, the result
on the income statement grew by almost €12 million, thanks to a financial management policy
which identified positive developments in the solvency of so-called peripheral countries (of the
Eurozone), and so invested in sufficiently-yielding securities.
The results provide an endorsement of the Group’s strategy, in that it is following a positive
trajectory oriented towards balanced growth of the portfolio, pursued through prudent investment
geared towards the introduction of innovative technology processes dedicated to technicaladministrative management both internally and in support of the extensive intermediary network,
as evidenced in the following section (Technological evolution and respect for the environment).
The management of infrastructure investments is undertaken in a synergistic manner at Group
level, thus raising economies of scale, which is advantageous more than ever in particular in terms
of fixed (overhead) costs. In this vein, the Parent Company has continued to pay close attention to
the shared services which it controls, in particular those of an administrative and technological
nature, on the basis of dedicated service agreement protocols.
2
As defined under IFRS 4
5
MANAGEMENT REPORT
On the commercial front, in addition to the long-established Agency network which today numbers
188 points of sale (and over 2,000 collaborators), the Group also distributes its products through
important bancassurance agreements.
For the year as a whole, the Group recorded a highly satisfactory gross consolidated profit of
€35 million, which, net of tax, amounted to €20 million (€2 million in 2013), which grew total
Shareholders’ Equity of the Group further still in 2014 to €346,301 thousand (an increase of
€74,618 thousand compared to 2013). The result is very much one of distinction, rounding off an
exceptional year in which the fundamental technical and organisational abilities of the Group have
been demonstrated in view of the challenges ahead, linked to the launch of Solvency II, amongst
others. In Summer 2014, the Parent Company proceeded to explore the dossiers of a number of
Italian companies with care and attention in order to consider the opportunity of evaluating the
competencies acquired by the Group in the almost two centuries of its existence and to expand
through inorganic means (i.e. through acquisitions). ITAS’s focus was then concentrated on the
Italian branches of Royal Sun Alliance (RSA). Following the completion of due diligence, the
Board of Directors of ITAS Mutua then provided its formal approval on 10 th September 2014 for its
Offer of the acquisition of the Italian branches of Royal Sun Alliance (RSAI and Sun Insurance
Office), the long-established insurance group founded in 1710 and headquartered in London. The
execution of the transaction is now subject to the so-called Part VII Transfer Process under English
Law3 and for the attainment of the necessary authorisations by the relevant Supervisory
Authorities. It is expected that the transaction will be completed in the second half of 2015, with
effect from 1st January 2016.
The Offer agreement is for a total payment of €24 million. The two branches (RSAI and Sun
Insurance Office), which operate only in the Non-Life segment, earned premiums of almost €250
million in the latest full year, with a balanced portfolio mix (55% of the premiums were in nonmotor lines of business) and through distribution channels mainly comprised of independent or
multi-tied agents and brokers. The branches’ business is considered to be complementary to that
of ITAS both in terms of territory covered (RSA operates predominantly in North-West Italy) and its
targets. Through the acquisition, ITAS will strengthen its position in the Italian Non-Life insurance
market and will acquire important additional expertise and “know how” in specialist risk classes.
Details on other important events which occurred during the reporting period follow.
3
Financial Services and Markets Act 2000
6
MANAGEMENT REPORT
ESTABLISHMENT OF ITAS PATRIMONIO S.P.A.
ITAS Patrimonio S.p.A., the Società per Azioni a Socio Unico (Joint-Stock Company with Sole
Shareholder) was incorporated with its civil and tax status effective as of Midnight on 1st July 2014,
pursuant to IVASS Order No. 51-14-000574 issued on 15th April 2014 and, therefore, following the
final resolution passed by the Board of Directors during its Meeting of 24th June 2014.
The concerned (real-estate) arm of the business was transferred at constant carrying and tax
amounts with a total book value of €118,000 thousand, which is the total share capital of the
subsidiary ITAS Patrimonio, recorded under Assets in the Balance Sheet of ITAS Mutua as item C II
– Investimenti in imprese del gruppo ed in altre partecipate (“Investments in Group Companies
and other related companies”).
In general, with regards to the transferred arm, residential properties for use by third parties and
owned-capital properties designated for business use by third parties were transferred on the date
of transfer, while own-use properties for the Group’s commercial activities remained with the
transferring company (in particular, the new complex in Le Albere, Trento, as well as satellite
claims settlement offices). In addition, payables and receivables relating to the real estate assets in
question were part of the transferred arm, as well as the assets relating to employees, software
and equipment.
TRANSFER OF REGISTERED OFFICES
Upon the completion of construction work, in February 2014 the Companies of the Group which are
headquartered in Trento transferred their Registered Offices and Corporate Headquarters to the
new Le Albere complex (located at Piazza delle Donne Lavoratrici 2, Trento). The previous site of
the Headquarters at Via Mantova n. 67 in Trento was leased to third parties in March.
FITCH RATING
In October, Fitch Ratings confirmed the rating of ITAS Mutua, in its position as the Parent Company
of the Group, at BBB with stable outlook. The agency’s assessment of the Company’s rating was
made with particular consideration of its pursuit of a strategy of greater diversification of risks both
in geographic terms and with regards to its insurance product offering, taking account of the
announced acquisition of the Italian branches of the British insurer RSA.
7
MANAGEMENT REPORT
TECHNOLOGICAL EVOLUTION AND RESPECT FOR THE ENVIRONMENT
During the year, technology-based processes and procedures have once again been developed to
provide ever greater efficiency to business processes, following leading-edge practices with
absolute respect for the environment.
Particular mention is made of the launch of the new Portal 2.0, the flagship of a new generation
of innovative projects which will lead the Company to operate increasingly in the online
environment, whether on Web-based, Social Media or Mobile platforms, with direct regard to its
mutualist spirit, always working for the benefit of the Company’s partner-insureds, but also in
support of the distribution network. The same logic is found in the launch of the new Agency
Management CRM platform (project QUORE), therefore improving business processes and enabling
ever more efficient sales initiatives.
http://www.gruppoitas.it/
In addition to the by now well-established process of the biometric signature of contracts, the
process of complete dematerialisation of sales ledgers throughout the Agency network has also
been implemented. The technical-administrative management of the Business is, therefore, now
almost completely structured on an integrated Company/Agency system capable of processing data
in real time with a single shared database at its foundations.
8
MANAGEMENT REPORT
With reference to the internal processes of the Group’s companies, accounting books and technical
registers are nowadays also almost all dematerialised and kept in such a manner, including the
issuance of invoices in “electronic” mode, taking cues from the most recently enacted regulations.
In addition, documents relating to claims procedures have been subjected to a process of
digitalisation with substantial savings in the required archiving space.
Such initiatives are not just technological and cultural innovation per se, but also aid in the
development of ever more integrated processes enabling the creation of growing economies of
scale in support of the Business, while not neglecting the perennial objective of respecting the
environment. Company policies regarding the recycling of waste and environmentally-friendly
modes of transport such as car-sharing also enter into this domain.
9
MANAGEMENT REPORT
KEY FIGURES FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF GRUPPO ITAS ASSICURAZIONI
As noted, the net consolidated group profit achieved is considered to represent a healthy result
for the Group and amounts to €20,151 thousand (with taxes for the year amounting to €14,363
thousand), while profit under the Statement of Comprehensive Income, which also accounts for
revenues and costs charged directly to Shareholders’ Equity, totals some €68,572 thousand
(€15,450 thousand in 2013). In particular, gains from available for sale financial assets have
contributed to the achievement of this result, in part already recognised also in the previous
reporting period for a total of €13,166 thousand, in the face of a marked recovery in market prices.
In the following tables, the items considered to be the most significant in relation to operating
performance are reported (expressed in thousands of Euros), as calculated in accordance with
international accounting standards, extracted directly from the reclassified consolidated balance
sheet and income statements, together with key performance indicators widely used in the
industry.
Amounts in €k
Key indicators
2014
2013
Change
Chg. %
Investment and own-use properties
2,715,409
2,241,530
473,879
21.1
Net technical provisions
2,080,467
1,703,164
377,303
22.2
Financial Liabilities
473,284
403,010
70,274
17.4
Shareholders' Equity
346,301
271,683
74,618
27.5
The composition of the investment portfolio, including investments for which policyholders benefit
from and are risk-bearers of and of property assets categorised among tangible assets (i.e. under
the Land and Buildings item), recorded an increase of 21.1% compared to the previous year (in
2013, the increase over the previous year was 11.3%). Marked growth was recorded in particular
in available for sale financial assets (+37.0%), a development also supported by the recovery in
securities prices in the period leading up to the end of the year and in assets for which
policyholders benefit from and bear the risk of (+19.5%).
Investments held to maturity instead witnessed a decline (-9.9%), mainly due to the redemption of
bonds that matured.
Capitalisation levels attest to a wholly solid and balanced position, guaranteed by appropriate
technical provisions, which are suitably recorded under Assets.
10
MANAGEMENT REPORT
Amounts in €k
Key performance indicators
2014
2013
Change
Chg. %
Gross Written Premiums
Direct business - Non-Life
486,158
Indirect business - Non-Life
Direct business - Life
Total
Investment contracts - Life
Total income*
Net retained premiums
457,277
28,881
6.3
175
504
-329
-65.3
355,532
157,835
197,697
125.3
841,865
615,616
226,249
36.8
66,210
57,969
8,241
14.2
908,075
673,585
234,490
34.8
813,712
593,999
219,713
37.0
322,593
332,890
-10,297
-3.1
Gross Incurred Claims
Direct business - Non-Life
Indirect business - Non-Life
Direct business - Life
Total
Net incurred claims
Net income from financial instruments and
investment properties
-158
325
-483
-148.6
381,973
188,388
193,585
102.8
704,408
521,603
182,805
35.0
698,369
514,890
183,479
35.6
87,127
75,932
11,195
14.7
Operating expenses
149,957
134,264
15,693
11.7
Consolidated net profit for the period
20,151
1,966
18,185
925.0
* The term “income” is herein defined as the total of insurance premiums (as defined under IFRS 4), together
with the amounts relating to investment contracts (as defined under IFRS 4, which refers to IAS 39).
Taking account of premium income (including investment contracts) in relation to the overall
pensions environment and financial markets, an increase of 36.8% in the volume of business was
recorded, amounting to a total of €908,075 thousand (€673,585 thousand in the previous year).
In the Life business, total premium income amounted to €421,742 thousand, an increase of 95.4%
on the previous year. The increase was registered predominantly in the most traditional line of
business, that relating to length of human life, i.e. Class I policies (registering an increase of
€197,992 thousand), with the sale of products oriented towards saving and term life policies. Also,
the line of business dedicated to the management of complementary (or supplementary) pensions
has continued to demonstrate consolidation in its positive trend of development (recording growth
of €8,365 thousand), through the placement of policies in the Open-Ended Pension Fund “PensPlan
Plurifonds” of ITAS Vita S.p.A., which confirms itself as one of the top players in the marketplace.
At the end of the year, the assets of the Fund, as reported under COVIP (Commissione di Vigilanza
sui Fondi Pensione - the Italian Supervisory Authority of Pension Funds) rules, amounted to €446
million and recorded significant growth compared to the previous year of 19.8%; this growth is
reflected in the number of members of the Fund having increased by almost 4,000 over the course
of 2014 and now exceeds 47,000 members. All segments of the Fund have demonstrated positive
growth in returns with notable performance in the AequITAS and ActivITAS lines (of 10.7% and
6.8%, respectively).
11
MANAGEMENT REPORT
The Group’s efforts also recorded healthy rates of growth in the Non-Life segment (of +5.2% in
direct business), of great satisfaction when compared to the overall market’s contraction in
premium income (-3.5% year-on-year as at December 2014)4.
Claims paid and outstanding for the year amounted to €698,369 thousand, registering an increase
vis-à-vis the previous reporting year of 35.6%, in particular due to the effect of significant growth
in mathematical reserves tied to the strong growth of the Life segment.
The incidence of operating expenses (of €149,957 thousand) on total retained net premiums was
equal to 18.4%. Commissions and other acquisition costs – recorded under item 2.5.1 –
totalled €119,257 thousand altogether (€107,945 thousand in the previous reporting period),
registering an increase predominantly tied to premium growth, but with an incidence on total net
retained premiums which fell from 18.2% to 14.7%, a decrease of 3.5 percentage points
compared to 2013.
4
Source: IVASS – Q3 Insurance Industry Survey (2014): Total Premiums
12
MANAGEMENT REPORT
Amounts in €k
Items from
mandatory
statements
Reclassified Consolidated Statement of Financial
Position
2014
2013
Change
Chg. %
Assets
4.1
Property investments
79,008
71,058
7,950
11.2
2.1
Land and buildings
57,774
61,096
-3,322
-5.4
4.2
Investments in subsidiaries, associates and joint
ventures
0
0
0
4.4
Loans and receivables
4.3
Investments held to maturity
4.5
Available for sale financial assets
4.6
Financial assets at fair value through profit or loss
7
Cash and cash equivalents
1
Intangible assets
3
Technical provisions - reinsurers' share
5 - 6 - 2.2
Receivables, Other Assets and Other tangible
assets
Total Assets
Shareholders' Equity and Liabilities
Share Capital and Equity reserves
1.2
Shareholders' Equity attributable to the Group
Share Capital and Equity reserves attributable to
non-controlling interests
Profit (loss) for the year attributable to noncontrolling interests
Shareholders' Equity attributable to
Total Shareholders' Equity
3
Gross technical provisions - Non-Life
3
Gross technical provisions - Life
4
2-5-6
12,104
1,071
8.8
512,391
-50,952
-9.9
1,643,101
1,199,115
443,986
37.0
460,912
385,765
75,147
19.5
119,796
61,466
58,330
94.9
1,464
1,744
-280
-16.1
48,074
64,444
-16,370
-25.4
183,870
164,810
19,060
11.6
3,068,613 2,533,993
534,620
21.1
45,251
19.8
274,363
Group Profit (loss) for the year
1.1
13,175
461,439
229,112
17,391
1,435
291,754
230,547
15,956 1,111.9
61,207
26.5
51,787
40,605
11,182
27.5
2,760
531
2,229
419.8
54,547
41,136
13,411
32.6
346,301
271,683
74,618
27.5
711,424
690,895
20,529
3.0
1,417,117
1,076,713
340,404
31.6
Financial liabilities
473,284
403,010
70,274
17.4
Provisions, Payables and Other liabilities
120,487
91,692
28,795
31.4
3,068,613 2,533,993
534,620
21.1
Total Shareholders' Equity and Liabilities
13
MANAGEMENT REPORT
Amounts in €k
Items from
mandatory
statements
Reclassified Consolidated Income Statement
2014
2013
Change Chg. %
813,712
593,999
219,713
37.0
-698,369
-514,890
-183,479
35.6
-145,641
-129,274
-16,367
12.7
-15,883
-12,079
-3,804
31.5
-46,181
-62,244
16,063
-25.8
11,210
8,156
3,054
37.4
0
0
0
75,918
67,776
8,142
Insurance Operations
1.1
Net Premiums
2.1
Net claims costs
Operating expenses net of investment
2.5.1 -2.5.3
management expenses
1.6 - 2.6
Other technical income and expenses
Result of insurance business
Investment Portfolio
1.3
Income and charges from financial instruments
at fair value through profit or loss
1.4
Income from investments in subsidiaries,
associates and joint ventures
1.5 - 2.4
Net income from other financial instruments and
investment properties
1.2 - 2.2
Commission income net of payable commissions
2.5.2
1.6 - 2.6
12.0
0
0
0
n.a.
Investment management expenses
-4,317
-4,992
675
-13.5
Result of investment management
82,811
70,940
11,871
16.7
Result of insurance business and investment
management
36,630
8,696
27,934
321.2
-2,116
-889
-1,227
138.0
Profit before tax
34,514
7,807
26,707
342.1
Taxes
-14,363
-5,841
-8,522
145.9
20,151
1,966
18,185
925.0
0
0
0
20,151
1,966
18,185
17,391
1,435
2,760
531
Other income net of other expenses
Profit (loss) after tax
Profit (loss) from discontinued operations
Consolidated profit (loss)
Profit (loss) attributable to the Group
Profit (loss) attributable to non-controlling
interests
925.0
15,956 1,111.9
2,229
419.8
The overall performance of the investment management arm is reflected in the improvement of net
income from investments compared to the previous year, which led to the balance of profits from
the investment portfolio and from insurance operations totalling a wholly positive €36,630
thousand, markedly higher than that recorded in 2013 (€8,696 thousand).
14
MANAGEMENT REPORT
In the table below, the main ratios relating to the income statement are shown, split between the
Non-Life and Life segments.
Key indicators - Non-Life Retained Business
2014
2013
Net insurance benefits and claims / Net premiums
69.0
74.9
Operating expenses / Net premiums
29.9
28.5
Acquisition costs / Net premiums
25.0
25.1
5.2
4.4
99.0
103.3
2014
2013
Operating expenses / Premiums
3.4
5.9
Acquisition costs / Premiums
2.3
3.5
Other administrative expenses / Premiums
0.9
1.8
2014
2013
16.5
19.9
2.9
3.2
Other administrative expenses / Net premiums
(Net insurance benefits and claims + Operating expenses)/ Net premiums
Key indicators - Life business
Key indicators - Total
Operating expenses / Premiums
Other administrative expenses / Premiums
INTERNAL AND EXTERNAL ORGANISATION
The number of employees of the Companies of the Group as at 31st December 2014 totalled 451,
an increase of 24 heads compared to the previous year. Altogether, over 13,000 hours of training
were provided to employees over the course of 2014.
In the continuous process of the distribution network’s development, the Group wished to provide
greater impetus to its overall commercial structure, which today boasts some 188 Agency offices
(+3 Points of Sale compared to 2013), all the while maintaining the intensive training activity
dedicated to it (over 32,500 hours in 2014), with the aim of ensuring ever-higher standards of
professionalism and an ever-higher quality of service offered to policyholders.
FINANCIAL MANAGEMENT AND ANALYSIS OF RISKS
The financial policy of the Group has proven itself to be responsive to the prevailing
macroeconomic environment, and so has gained benefit from the general recovery in (securities)
prices, in particular those of bonds issued by the so-called peripheral countries of the Eurozone.
The profitability achieved by the Group has allowed it to obtain excellent results even on the more
strictly ‘commercial’ front through healthy returns on Separately Managed Funds, which have
contributed materially to the growth of the Life business, as well as supporting income.
Participation in the opportunities offered by the market have, moreover, always been tied to Asset
Liability Management analysis, therefore maintaining the Group’s fundamental objectives on
matters relating to financial risks; moreover, subscription to equity securities is limited to
insubstantial percentages.
15
MANAGEMENT REPORT
The following table details the composition of the Group’s portfolio through the categorisation of
assets by investment class and coupon type, providing in addition an indication of the sensitivities
inherent in the portfolio.
Amount of securities held expressed in €k; Duration in years
31/12/2014
Bonds
31/12/2013
1,966,954
93.5%
1,603,159
93.7%
Mutual Funds / Real Estate Funds
84,252
4.0%
57,033
3.3%
Investments in other companies
21,371
1.0%
25,968
1.5%
Listed equities
30,294
1.4%
25,347
1.5%
1,669
0.1%
0
0.0%
2,104,540
100.0%
1,711,507
100.0%
414,064
21.1%
368,498
23.0%
1,552,890
78.9%
1,234,661
77.0%
1,966,954
100.0%
1,603,159
100.0%
Other financial investments
Total
Floating-rate securities
Fixed-rate securities
Total
Fixed rate
Total portfolio
Fixed rate
Total portfolio
Duration
6.5
5.5
6.1
4.9
Modified duration
6.4
5.4
5.8
4.7
Percentage of securities with
ratings between BB+ and B-
2.5%
3.2%
With regards to risk management concerning the portfolio, the reader is referred to the
Explanatory Notes (specifically, to Part E – the “Risk Report”) for further details; immediately
below, a brief assessment of the types of risk to which the Group’s equity is exposed is given, as
well as the main strategies implemented to manage and control such risks.
MARKET RISK
Market risk is represented by the possible changes in the general price level of financial markets
which may impact on the Group’s operating result. Price risk, interest rate risk and currency risk
are components of market risk.
Price risk affects the equity and debt portions of the portfolio, where under a price change that
arises both from factors specific to either a single financial instrument or to its issuer, or from
factors influencing all instruments in the market, a decrease in the value of the asset held results.
In such a case, the risk measure used is the “VaR” (Value at Risk) of the portfolio. The VaR is the
maximum potential loss that a portfolio could suffer over a given time horizon and defined degree
of probability.
Interest rate risk affects debt securities and manifests itself as the risk that the value of a financial
instrument decreases following changes along yield curves (of interest rates). The risk is monitored
by analysing and observing the modified duration of the portfolio, with the italicised term being an
indicator of the sensitivity of the market value of the assets to changes in interest rates. The
modified duration of a security, or of a portfolio of securities, expresses the change in price of the
security given a one percentage point change of the reference market rate (of interest).
16
MANAGEMENT REPORT
Currency risk consists of the possibility that a portfolio of securities suffers decreases in value due
to the effect of a decrease in the value of the concerned assets’ reference currency. In this case,
the analysis undertaken is simply that of establishing a valuation for the portion of the portfolio
expressed in foreign currency and regularly monitoring gains or losses in light of its value within
the portfolios in question.
LIQUIDITY RISK
The Company is called upon daily to make payments which find their origin in stipulations made
under insurance contracts and in the obligations arising from them in both a direct and an indirect
manner. Liquidity risk manifests itself in the possibility that the funds the Company has available
may not be sufficient to meet its obligations.
In this case, the risk is monitored through an asset-liability management procedure and ensuring
that the near-totality of investments are tradable in regulated markets and, therefore, by
definition, in environments under which the assets can be liquidated at market prices and under
fair and generally accepted conditions. In addition to this, the balance between debt securities at
fixed and floating rates is assessed constantly, with the latter offering higher levels of guarantees
of ready liquidity without suffering significant (undue) losses.
CREDIT RISK
In carrying out its own investment policy, the Company limits credit risk through the selection of
issuers with a high degree of creditworthiness. Such exposure is constantly monitored, ensuring
that the near totality of bonds in the portfolio is classified in investment grade rating classes.
17
MANAGEMENT REPORT
PRODUCT INNOVATION
In support of the activities of the distribution network, over the course of the year new products for
various sectors were developed and launched. In the Non-Life segment, moreover, a review of the
contracts deemed to be of low profitability was carried out, through a thorough commercial
evaluation. Greater focus has been afforded to the placement of more profitable products,
however, not at the cost of sales plan competitiveness or of benefits to policyholders.
With specific reference to the Non-Life segment, the new CON TE – Critical illness (“WITH YOU –
Critical illness”) product was marketed, an innovative policy in the Sickness line of business
providing protection to policyholders for particularly serious events.
With regards to the important Motor line of business, on 1st May 2014, a new tariff aimed at
strengthening and increasing the portfolio of lower-risk profiles was introduced, reviewing in
particular the (pricing) coefficients relating to policyholder age and introducing increases on higherrisk sectors, among which are buses and motorcycles.
With the aim of enhancing the quote offering, the new “ITASclick – il preventivo in 2 mosse”
(“ITASclick – Your quote in 2 steps”) system was designed and introduced which, when accessed
through the Company’s official website, allows the user to obtain a quote immediately after
entering a few simple details.
In addition, a new policy specially designed for insurance coverage of businesses in the tourism
industry (the “Impresa Turismo” product) was introduced, characterised by competitive basic cover
and a wide range of choices for additional coverage.
With regards to the Life segment, in terms of broadening the product range in support of the
distribution network as a whole through tariffs always aimed at ensuring the stability of the
portfolio and appropriate margins of profitability, over the year the following have been placed onto
the market:
-
The new individual tariff CREDIT PROTECTION PLUS: a term life policy with annual
premiums and decreasing capital sums in relation to repayment schedules for bank loans;
-
The new individual tariff VENITAS GESTIONE GARANTITA: a single premium investment
policy with the possibility of additional payments;
-
Additional guarantee option for permanent disability on the PER LORO and PER LORO
MONOANNUALE products;
-
Additional guarantee “DOMANI SICURO” (“A secure tomorrow”) on the ITAS RISPARMIO
LIBERO product: provides for fulfilment of the payment plan for remaining recurring single
premiums up until maturity in the event of the death of the contract holder/policyholder
during the contract’s term.
18
MANAGEMENT REPORT
MAIN DATA FROM THE FINANCIAL STATEMENTS OF GRUPPO ITAS ASSICURAZIONI
The structure of the Group is described below and the most significant figures from the 2014
Financial Statements of the Parent Company “ITAS Mutua” and its subsidiaries, prepared in
accordance with Italian accounting standards, are set out.
ITAS MUTUA – PARENT COMPANY
The positive trend in the development of the portfolio (+5.2% written premiums) has been
confirmed in the year. The Company recorded a claims to direct earned premiums ratio of 67.4%
(versus 73.0% in 2013). The income statement shows a particularly positive technical (or
underwriting) result for the year totalling €12,464 thousand (€161 thousand in 2013) thanks to
following a key development objective of holding a balanced underwriting position, thus recording a
combined ratio which improved by nearly six percentage points compared to 2013, arriving at
96.5% of earned premiums.
On the financial front, notwithstanding marked declines in market interest rates, the Company
recorded an overall return for the year in the investment portfolio 5 in excess of 4%.
The income statement registered a highly satisfactory result, with a net profit of €9,443 thousand
(€2,256 thousand in the previous reporting period).
ITAS VITA S.P.A.
The Company is headquartered in Trento and operates in the Life segment, having written
premiums of €421,743 thousand, recording a stellar growth rate of 95.4% compared to the
previous year, thanks also to customer appeal generated by the returns of the Separately Managed
Funds. The growth mainly occurred in Class I lines of traditional policies, but also through the solid
growth of the Open-Ended Pension Fund due to an innovative product offering.
The year ended with a notable profit of €8,353 thousand.
ASSICURATRICE VAL PIAVE S.P.A.
The Company is headquartered in Belluno (in the Veneto region) and operates in the Non-Life
sector, predominantly in the Veneto and Friuli Venezia Giulia regions in the North East of Italy
through its own agency network. Assicuratrice Val Piave wrote premiums of €28,074 thousand,
recording growth of 3.3% on the previous year.
A wholly satisfactory net profit of €2,353 thousand was recorded in the income statement.
ITAS ASSICURAZIONI S.P.A.
The Company, 51% owned by ITAS Mutua, operates in the Non-Life sector and is headquartered in
Trento, with its main commercial activities in bancassurance. ITAS Assicurazioni wrote premiums of
5
Excluding investments of a strategic nature held for long-term investment purposes.
19
MANAGEMENT REPORT
€5,645 thousand, recording a healthy increase over the year (€4,973 thousand in 2013). The
income statement showed a profit of €148 thousand, a sharp increase compared to the previous
year, when profit stood at €11 thousand.
ITAS HOLDING S.R.L.
ITAS Holding is headquartered in Trento and manages the Group’s strategic shareholdings. Its
share capital, totalling €63,000 thousand, is wholly owned by ITAS Mutua.
A profit of €474 thousand was recorded, generated mainly by the receipt of dividends from
shareholdings and the recovery in values of Government Bonds included in the Company’s current
assets.
ITAS PATRIMONIO S.P.A.
The Company is headquartered in Trento and was incorporated with effect from 1st July 2014
through the transfer of the real estate arm of ITAS Mutua, with the objective of managing the
majority of the real estate assets of the Group which have been built up over almost two centuries.
The Company ended its first reporting period with a net profit of €783 thousand.
ITAS SERVICE S.R.L.
The Company handles the management of a small portion of the Group’s real estate assets and
ended the year with a loss of €543 thousand (versus a loss of €9 thousand in 2013). The
Company’s equity reserves are amply able to absorb the loss without significant erosions.
The Headquarters of the Company are in Trento.
20
MANAGEMENT REPORT
INFORMATION ON LITIGATION AND ONGOING DISPUTES
ITAS Mutua
The Complaints Department, in addition to undertaking investigations into internal processes linked
to any incidents, has continued to perform the task of monitoring the notifications or warnings it
receives. As at 31st December 2014, the number of complaints received was 462, against the 394
received in the previous year. The incidents, which mainly refer to the claims area within the Motor
TPL line, did not show evidence of any particular operational or organisational problems.
At the end of the year, there were no enforcement decisions pending by the Supervisory Authority;
some issues of modest scale relative to communications on corporate matters and transmission of
data (relating to the claims database) were remedied over the course of the year.
With regards to tax affairs, over the course of 2014, four charges were raised against ITAS Mutua –
of minor value and, moreover, widespread in the market – relating to the incorrect application of
IVA (Imposta sul Valore Aggiunto, Value Added Tax) on the debiting of co-insurance commissions.
It is noted that in previous years, charges with similar characteristics were received and such a
type of charge has already been the subject of appeals against the Tax Commission of Trento, with
first-instance rulings made in 2010 and 2014 in favour of the Company.
Assicuratrice Val Piave S.p.A.
During the first quarter of 2014, the Company accepted the proposal of a judicial settlement in
respect of the closure of investigations on IRES (Imposta sul Reddito delle Società – Italian
Corporate Income Tax) and IRAP (Imposta Regionale sulle Attività Produttive – Regional tax on
production activities) relating to the 2009 Fiscal/Reporting Year6.
In 2014, the number of complaints received was limited in number, totalling 17 (32 in 2013) and
was concentrated in the claims area.
ITAS Vita S.p.A.
As at the end of the reporting period, there were no enforcement decisions pending by the
Supervisory Authority, nor were there pending disputes on taxation matters. There were 8 actions
by the complaints authority, all of which have been examined and from which no deficiencies in the
business’s management were identified.
6
The Italian Fiscal Year runs from 1st January to 31st December, as does the Company’s (and the Group’s) Reporting Year.
21
MANAGEMENT REPORT
SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
The Group is carrying out its activities with regularity and as of the date of approval of this
document, no events of either economic or corporate significance which could materially impact on
the Group’s result for the year have occurred.
In order to guarantee the ample capitalisation levels of ITAS following the RSA transaction, in light
of a considerably more favourable market environment compared to the preceding months, the
Company has approved a resolution to issue a subordinated debt instrument reserved for
institutional investors. The transaction will be completed in the second half of 2015, subject to
market rates.
At the beginning of March 2015, the Headquarters of Assicuratrice Val Piave, a Subsidiary of ITAS
Mutua, were transferred to Company-owned offices in Via Ippolito Caffi n.83, Belluno, in a building
which has recently been renovated to high standards of energy efficiency.
OUTLOOK
Upon completion of the “Qrescere Qonsapevoli” Strategic Plan, launched in 2012, over the course
of 2015 – in light of an economic context of modest recovery – particular attention will be paid to
seizing the most favourable business opportunities, without neglecting the overarching priority of a
balanced underwriting position. In addition, management will, from now on, establish the optimal
organisational structure in view of the integration of the non-life classes of insurance of Royal Sun
Alliance, the British insurance company, in order to gain full commercial momentum from the start.
With particular reference to the financial side, investments will generally be held on the basis of
prudent positions, however, with attention paid to harvesting the most attractive incomegenerating opportunities available, also in consideration of a muted overall market environment
with yields in general contraction.
Economic and financial stability following exceptional events will continue to be guaranteed by
appropriate reinsurance treaties, almost unchanged in their structure compared to 2014, therefore
providing the necessary support to ensure stable and lasting development.
In the context of the Group’s Corporate Strategy and taking account of the impact of Solvency II, a
process of corporate reorganisation will soon be initiated, which could be executed through the
liquidation and concurrent merger of the ITAS Assicurazioni and ITAS Service subsidiaries into the
Parent Company.
22
MANAGEMENT REPORT
INTRA-GROUP DEALINGS AND TRANSACTIONS WITH OTHER RELATED PARTIES
As required by ISVAP (now IVASS) Regulation no. 25 dated 27th May 2008, the Companies of the
Group have approved the guidelines for intra-group dealings and those with other related parties in
relation to their bearing on the Group’s economic, financial and equity positions, including those
which may be considered atypical and unusual. The resolution was, moreover, adopted in the
context of the centralised management and coordination activities which are the responsibility of
the Parent Company and has been sent for review to the Supervisory Authority.
Intra-group transactions as a whole are organised in such a way as to be consistent with the
principles of sound and prudent management, avoiding the undertaking of transactions which could
result in negative effects for the solvency of the companies involved or have the effect of
prejudicing the interests of policyholders or other stakeholders.
In the Notes to the Financial Statements, transactions with related parties undertaken during the
year are set out, excluding those with companies consolidated on a line-by-line basis. These are
transactions which are mainly attributable to the ordinary activities of the companies and executed
under market conditions. Among these one can include, in particular, transactions regarding
payments to Directors, Statutory Auditors and Managers with strategic responsibilities, reinsurance
transactions, and also commission payments to intermediaries for the sale of insurance products.
A form of Group reinsurance continues to be fully operational, formalised in a specific series of
treaties and is oriented towards containment of coverage costs for the benefit of the individual
Companies of the Group. Such a form of reinsurance is stipulated on both a proportional and nonproportional basis.
In addition, the newco ITAS Patrimonio S.p.A. has provided real estate management services for
the Group during the reporting period.
Over the course of the year, no transactions that were atypical or unusual with respect to the
ordinary activities of the Company were carried out.
In view of the possibility of benefiting from the advantages related to the immediate liquidity
provided by any IRES (Imposta sul Reddito delle Società, Corporate Income Tax) receivables,
application of the Consolidated Income Tax regime was followed, as agreed with the Companies of
the Group. ITAS Patrimonio will be included within the Group’s Consolidated Income Tax regime
starting from the 2015 reporting period.
Trento, 19th March 2015
The Board of Directors
Chairman
Giovanni Di Benedetto
23
PART B - CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEET
BALANCE SHEET - ASSETS
ITAS MUTUA Consolidated financial statements as at 31/12/2014
1
1.1
1.2
2
2.1
2.2
3
4
4.1
4.2
4.3
4.4
4.5
4.6
5
5.1
5.2
5.3
6
6.1
6.2
6.3
6.4
6.5
7
INTANGIBLE ASSETS
Goodwill
Other intangible assets
TANGIBLE ASSETS
Land and buildings
Other tangible assets
TECHNICAL PROVISIONS - REINSURERS' SHARE
INVESTMENTS
Investment properties
Investments in subsidiaries, associates and joint ventures
RECEIVABLES
Receivables from direct insurance operations
Receivables from reinsurance transactions
Other receivables
OTHER ASSETS
Non-current assets or disposal groups classified as held for sale
Deferred acquisition costs
Deferred tax assets
Current tax assets
Other assets
CASH AND CASH EQUIVALENTS
TOTAL ASSETS
24
(F igure s to the ne a re s t Euro c e nt)
2014 Total
1,463,621.77
0.00
1,463,621.77
66,979,675.00
57,773,859.97
9,205,815.03
48,073,662.84
2,657,635,374.45
79,007,936.91
0.00
461,438,843.76
13,175,369.86
1,643,101,102.88
460,912,121.04
121,468,828.48
84,945,837.65
15,048,761.47
21,474,229.36
53,196,189.48
0.00
0.00
26,927,397.68
26,268,791.80
0.00
119,795,813.98
3,068,613,166.00
2013 Total
1,744,293.82
0.00
1,744,293.82
67,740,780.85
61,095,627.74
6,645,153.11
64,444,107.03
2,180,434,009.03
71,058,475.51
0.00
512,391,168.15
12,104,350.26
1,199,115,494.24
385,764,520.87
102,609,488.03
69,791,917.55
13,410,819.16
19,406,751.32
55,554,249.24
0.00
0.00
22,802,615.45
32,751,633.79
0.00
61,466,178.35
2,533,993,106.35
BALANCE SHEET - SHAREHOLDERS' EQUITY AND LIABILITES
1
1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9
1.2
1.2.1
1.2.2
1.2.3
2
3
4
4.1
4.2
5
5.1
5.2
5.3
6
6.1
6.2
6.3
6.4
SHAREHOLDERS' EQUITY
attributable to the Group
Share capital
Other equity instruments
Capital reserves
Retained earnings and other equity reserves
(Treasury shares)
Reserve for currency translation differences
Gains or losses on available for sale financial assets
Other gains or losses recognised directly in equity
Profit (loss) for the year attributable to the Group
attributable to non-controlling interests
Share capital and reserves attributable to non-controlling interests
Gains or losses recognised directly in equity
Profit (loss) for the year attributable to non-controlling interests
PROVISIONS
TECHNICAL PROVISIONS
FINANCIAL LIABILITIES
Financial liabilities at fair value through profit or loss
Other financial liabilities
PAYABLES
Payables arising from direct insurance operations
Payables arising from reinsurance transactions
Other payables
OTHER LIABILITIES
Liabilities of a disposal group held for sale
Deferred tax liabilities
Current tax liabilities
Miscellaneous liabilities
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
25
2014 Total
346,300,987.04
291,753,557.89
91,386,930.89
0.00
0.00
130,322,971.95
0.00
0.00
53,617,752.92
-964,789.40
17,390,691.53
54,547,429.15
39,147,081.18
12,639,853.82
2,760,494.15
2,144,094.34
2,128,541,074.68
473,284,492.28
460,719,279.42
12,565,212.86
60,575,215.24
11,222,145.91
5,207,669.15
44,145,400.18
57,767,302.42
0.00
44,564,112.01
3,581,878.58
9,621,311.83
3,068,613,166.00
2013 Total
271,683,142.90
230,546,731.48
85,275,270.29
0.00
0.00
128,907,465.79
0.00
0.00
15,372,925.29
-444,020.55
1,435,090.66
41,136,411.42
38,662,214.99
1,943,108.83
531,087.60
2,581,784.81
1,767,608,200.33
403,010,270.08
385,732,137.07
17,278,133.01
58,722,487.78
8,827,394.71
5,043,030.05
44,852,063.02
30,387,220.45
0.00
20,339,163.37
1,408,642.00
8,639,415.08
2,533,993,106.35
INCOME STATEMENT
INCOME STATEMENT
1.1
1.1.1
1.1.2
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1
2.1
2.1.1
2.1.2
2.2
2.3
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.5
2.5.1
2.5.2
2.5.3
2.6
2
3
4
Net premiums
Gross premiums earned
Earned premiums ceded to reinsurers
Commission income
Income and charges from financial instruments at fair value through profit or loss
Income from investments in subsidiaries, associates and joint ventures
Income from other financial instruments and investment properties
Interest income
Other income
Realised gains
Valuation gains
Other income
TOTAL REVENUES AND INCOME
Net charges relating to claims
Amounts paid and changes in technical provisions
Reinsurers' share
Commission expenses
Expenses from investments in subsidiaries, associates and joint ventures
Expenses from other financial instruments and investment properties
Interest expenses
Other charges
Realised losses
Valuation losses
Operating expenses
Commissions and other acquisition costs
Other administration costs
Other costs
TOTAL EXPENSES
PROFIT (LOSS) FOR THE YEAR BEFORE TAXES
Taxes
PROFIT (LOSS) FOR THE YEAR AFTER TAXES
PROFIT (LOSS) FROM DISCONTIUNED OPERATIONS
CONSOLIDATED PROFIT (LOSS)
attributable to Non-controlling interests
26
FY 2014 Total
813,711,795.40
841,865,483.03
-28,153,687.63
0.00
11,209,520.47
0.00
86,115,102.84
61,086,127.95
9,067,601.18
15,373,580.48
587,793.23
8,318,761.30
919,355,180.01
-698,368,603.70
-704,407,820.79
6,039,217.09
0.00
0.00
-10,197,568.13
-650,933.89
-1,378,784.52
-3,961,571.64
-4,206,278.08
-149,957,110.44
-119,256,644.85
-4,317,361.34
-26,383,104.25
-26,317,638.23
-884,840,920.50
34,514,259.51
-14,363,073.83
20,151,185.68
FY 2013 Total
593,999,024.20
615,615,918.90
-21,616,894.70
0.00
8,156,140.85
0.00
77,779,848.13
57,470,809.49
8,279,822.94
12,029,215.70
0.00
7,546,785.40
687,481,798.58
-514,890,448.73
-521,603,060.62
6,712,611.89
0.00
0.00
-10,004,195.47
-851,263.75
-1,364,442.06
-3,606,130.83
-4,182,358.83
-134,264,487.21
-107,945,008.55
-4,991,977.08
-21,327,501.58
-20,515,169.89
-679,674,301.30
7,807,497.28
-5,841,319.02
1,966,178.26
20,151,185.68
17,390,691.53
2,760,494.15
1,966,178.26
1,435,090.66
531,087.60
The following accounting statement shows revenue and expense items (including adjustments due to
reclassification) which are not recognised in profit for the year, insofar as they are recognised directly in
equity.
STATEMENT OF COMPREHENSIVE INCOME
Other income components net of taxes without reclassification
to the Income Statement
Changes in the Shareholders' Equity of investee companies
Changes in intangible assets revaluation reserve
Changes in tangible assets revaluation reserve
Income and charges relating to non-current assets or disposal groups
classified as held for sale
Actuarial gains and losses and adjustments relating to Defined Benefit plans
Other items
Other income components net of taxes with reclassification
Changes in currency translation reserve
Gains or losses on cash flow hedging instruments
Gains or losses on hedging instruments of net investments in a foreign
operation
Other items
TOTAL OF OTHER COMPONENTS OF THE STATEMENT OF
COMPREHENSIVE INCOME
TOTAL CONSOLIDATED COMPREHENSIVE INCOME
27
FY 2014 Total
20,151,185.68
FY 2013 Total
1,966,178.26
-557,101.74
317,790.18
-557,101.74
317,790.18
48,977,905.51
13,166,411.61
48,977,905.51
13,166,411.61
48,420,803.77
13,484,201.79
68,571,989.45
55,114,750.31
13,457,239.14
15,450,380.05
12,824,687.39
2,625,692.66
STATEMENT OF CHANGES IN EQUITY
ITAS MUTUA Consolidated Financial Statements as at 31/12/2014
(Figures to the nearest Euro cent)
Balance
at 31-12-2012
Other comprehensive income
-4,355,629.90
0.00 11,261,952.86
127,643.87
Total attributable to the Group
212,136,889.30
0.00 18,282,198.31
127,643.87
37,398,076.93
1,309,030.01
-151,496.23
38,555,610.71
Shareholders'
Equity
attributable to
non-controlling
interests
Total
Allocations
Adjustments due to
reclassifications
to the
Income Statement
79,704,391.95
0.00
0.00
123,102,468.78
0.00
5,790,720.56
3,539,308.01
Share capital
Shareholders'
Equity
attributable to
the Group
Change in
closing
balances
Capital reserves
(Treasury shares)
Profit (loss) for the year
Share capital and reserves attributable to
Total attributable to non-controlling interests
250,692,500.01
Transfers
Changes in
ownership
interests
5,570,878.34
Balance
at 31-12-2013
Change in
closing
balances
Allocations
Adjustments due to
reclassifications
to the
Income Statement
Transfers
Changes in
ownership
interests
Balance
at 31-12-2014
85,275,270.29
0.00
0.00
128,907,465.79
0.00
1,435,090.66
14,928,904.74
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,111,660.60
0.00
0.00
1,415,506.16
0.00
15,955,600.87
39,886,615.51
-2,162,556.73
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 230,546,731.48
0.00
63,369,383.14
-2,162,556.73
0.00
1,264,138.06
38,662,214.99
0.00
484,866.19
0.00
39,147,081.18
0.00
-777,942.41
2,616,388.25
-521,783.19
531,087.60
1,943,108.83
0.00
0.00
2,229,406.55
11,474,854.30
-778,109.31
0.00
0.00
2,760,494.15
12,639,853.82
0.00
3,102,583.90
-521,783.19
0.00
0.00
41,136,411.42
0.00
14,189,127.04
-778,109.31
0.00
0.00
54,547,429.15
0.00 21,384,782.21
-394,139.32
0.00
0.00 271,683,142.90
0.00
77,558,510.18
-2,940,666.04
0.00
0.00
346,300,987.04
5,804,997.01
0.00
28
91,386,930.89
0.00
0.00
130,322,971.95
0.00
17,390,691.53
52,652,963.52
0.00
291,753,557.89
STATEMENT OF CASH FLOW
STATEMENT OF CASH FLOW (Indirect method)
Profit (loss) for the year before taxes
Change in non-monetary items
Change in Non-Life premium provision
Change in claims provisions and other Non-Life technical provisions
Changes in mathematical reserves and other Life technical provisions
Change in deferred acquisition costs
Change in other provisions
Non-monetary income and charges from financial instruments, investment properties and equity
Other changes
Change in receivables and payables generated by operating activities
Change in receivables and payables arising from direct insurance operations and reinsurance transactions
Change in other receivables and payables
Taxes paid
Net cash generated/absorbed by monetary items relating to investing and financing activities
Liabilities from financial contracts issued by insurance companies
Payables to bank and interbank customers
Loans and receivables from bank and interbank customers
Other financial instruments at fair value through profit or loss
TOTAL NET CASH FLOW FROM OPERATING ACTIVITIES
FY 2014
34,514,259.51
406,603,769.80
2,322,101.34
30,159,403.48
344,821,813.72
0.00
-437,690.47
0.00
29,738,141.73
-17,006,612.99
-14,232,472.11
-2,774,140.88
-14,363,073.83
-160,457.82
0.00
0.00
0.00
-160,457.82
409,587,884.67
FY 2013
7,807,497.28
130,129,619.85
1,381,069.05
36,521,649.96
109,881,413.53
0.00
-831,060.28
0.00
-16,823,452.41
-5,763,205.55
-6,250,719.89
487,514.34
-5,841,319.02
-9,364.62
0.00
0.00
0.00
-9,364.62
126,323,227.94
Net cash generated/absorbed by investment properties
Net cash generated/absorbed by investments in subsidiaries and associates and interests in joint ventures
Net cash generated/absorbed by loans and receivables
Net cash generated/absorbed by investments held to maturity
Net cash generated/absorbed by available for sale financial assets
Net cash generated/absorbed by tangible and intangible assets
Other net cash flows generated/absorbed by investing activities
TOTAL NET CASH FLOW FROM INVESTING ACTIVITIES
-7,949,461.40
0.00
-1,071,019.60
50,952,324.39
-443,985,608.64
1,041,777.90
0.00
-401,011,987.35
-9,496,247.04
0.00
-845,827.65
12,920,292.22
-158,352,857.07
-8,104,335.07
0.00
-163,878,974.61
44,297,733.44
0.00
-481,598.56
10,650,523.58
0.00
-4,712,920.15
49,753,738.31
17,275,750.62
0.00
-300,999.10
2,049,713.11
0.00
-4,760,757.29
14,263,707.34
61,466,178.35
58,329,635.63
119,795,813.98
84,758,217.68
-23,292,039.33
61,466,178.35
Net cash generated/absorbed by equity instruments attributable to the Group
Net cash generated/absorbed by treasury shares
Distribution of dividends attributable to the Group
Net cash generated/absorbed by Share capital and Reserves attributable to non-controlling interests
Net cash generated/absorbed by subordinated liabilities and equity financial instruments
Net cash generated/absorbed by other financial liabilities
TOTAL NET CASH FLOW FROM FINANCING ACTIVITIES
Effect of changes in exchange rates on cash and cash equivalents
Cash and cash equivalents at the beginning of the reporting year
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at reporting year-end
29
EXPLANATORY NOTES
EXPLANATORY NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
PART C – GENERAL APPROACH AND SCOPE OF CONSOLIDATION
The Consolidated Financial Statements of Gruppo ITAS dated 31 st December 2014 have been prepared in
accordance with the International Financial Reporting Standards adopted by the European Union on 31st
December 2014. By International Financial Reporting Standards (“IFRS”), the Group intends all
international accounting standards termed International Financial Reporting Standards or IFRS and
International Accounting Standards or IAS, and the relative interpretations of the International Financial
Reporting Interpretations Committee (“IFRIC”), formerly known as the Standing Interpretations
Committee (“SIC”).
The IFRS and/or their Amendments which were not approved as of 31 st December 2014 have not been
used in the preparation of the Consolidated Financial Statements herein.
The consolidation and valuation methods used in the production of the Consolidated Financial Statements
are consistent with those used for the Consolidated Financial Statements of 31 st December 2013.
In this annual report, the financial statements and Notes to the Consolidated Financial Statements are
presented in compliance with the formats defined by ISVAP (now IVASS) Regulation no. 7 of 13 th July
2007, as amended by ruling no. 2784 of 8th March 2010, no. 14 of 28th January 2014, no. 21 of 21st
October 2014 and no. 29 of 27th January 2015.
As permitted by the above-mentioned Regulation, Gruppo ITAS has considered it appropriate to
supplement its Consolidated Financial Statements with specific items and tables, supplying further details
in the Explanatory Notes, in order to also satisfy the requirements of the IAS/IFRS international
accounting standards.
The Consolidated Financial Statements consist of the following:
Management Report;
Balance Sheet;
Income Statement (Profit and Loss Account);
Statement of Comprehensive Income;
Statement of Changes in Equity;
Statement of Cash Flow;
Explanatory Notes to the Consolidated Financial Statements.
The reference date of the Consolidated Financial Statements is 31 st December 2014, which is the Balance
Sheet date of the Parent Company, ITAS Mutua. All of the companies included in the consolidation issue
their balance sheets dated 31st December. All of the Group’s companies carry out their commercial
activities in Italy.
The Consolidated Financial Statements have been prepared on a historical cost basis, with the exception
30
EXPLANATORY NOTES
of derivative financial instruments and available for sale (AFS) financial assets which are recorded at fair
value. The book value of assets and liabilities, which are subject to fair value hedging and which would
otherwise be recorded at amortised cost, is adjusted to take into account the changes in fair value
attributable to the risks being hedged, where applicable.
This document is subject to the approval of the Board of Directors on 19th March 2015.
The Consolidated Financial Statements are presented in Euros, which is the functional currency of all the
companies included in the consolidation; the Consolidated Financial Statement tables required under
ISVAP (now IVASS) Regulation no. 7 of 13th July 2007, are expressed to the nearest Euro cent. Unless
otherwise indicated, the amounts are expressed in thousands of Euros (€ thousands, also denoted by €k).
Audit of the Consolidated Financial Statements
The Consolidated Financial Statements of 31st December 2014 have been subjected to a legal audit of the
accounts, as stipulated by article 102 of Law Decree 07.09.2005, no. 209 and from articles 14 and 16 of
Law Decree 27.01.2010, no. 39, carried out by the Group’s appointed Independent Auditors, “Reconta
Ernst & Young S.p.A.”.
Definition of the scope of consolidation
Subsidiaries are defined as entities over which the Parent Company exercises control.
Control is obtained when the Group is exposed to or has rights to variable returns, arising from its
relationship with the investee company and, at the same time, has the ability to influence those returns
by exercising its power over the company in question.
Specifically, the Group controls an investee if and only if the Group has:

Power over the investee entity (or holds valid rights which confer the current ability to direct the
relevant activities of the investee entity);

Exposure or rights to the variable returns arising from the relationship with the investee entity;

The ability to exert its power over the investee entity in order to influence its returns.
Control is presumed to exist when the Group possesses, directly or indirectly through its subsidiaries,
more than half (i.e. a majority of) the voting rights of another entity, unless it can be clearly
demonstrated in certain exceptional circumstances that possession of such rights does not constitute
control, including when:

contractual arrangements with other holders of voting rights;

rights arising from contractual agreements;

voting rights and potential voting rights of the Group.
The Group reassesses whether or not it has control over a subsidiary if the facts and circumstances
indicate that there have been changes in one or more of the three elements relevant to the definition of
control.
All subsidiaries are included in the scope of consolidation, starting from the date in which control is
assumed up until the date such control ceases to exist.
31
EXPLANATORY NOTES
Gruppo ITAS Assicurazioni and the Scope of Consolidation
Hereunder, the list of subsidiaries is provided, showing the percentages of direct and total shareholdings
and the method of consolidation.
Scope of Consolidation
Company Name
Banca d'Italia
Banca d'Italia
Country Code for
Country Code
Nature
Registered
for Corporate/ Method
of
Office/Location
Operating
(1)
business
of Legal
Headquarters
(2)
Headquarters
(5)
% Direct
holding
(086 = Italy)
ITAS VITA S.P.A.
ITAS SERVICE S.R.L.
ITAS HOLDING S.R.L.
086
086
086
086
086
086
G
G
G
G
G
G
1
1
10
1
4
10
51.00
100.00
61.90
100.00
100.00
%
of available
%
voting rights at
Total holding
Ordinary
(3)
Shareholders'
Meetings (4)
%
consolidation
51.00
65.12
100.00
77.59
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
(1) C onsolidation method: Line-by-line (or "full") = G, Proportionate = P, Line-by-line on unified basis (per management unit) = U
(2) 1 = Italian insurance co.; 2 = Non-Italian EU insurance co.; 3 = Non-EU insurance co.; 4 = Insurance Holding C o.; 5 = EU Reinsurance co.; 6 = Non-EU Reinsurance co.;
7 = Banks; 8 = SGR (Società di gestione del Risparmio - i.e. Asset Management companies); 9 = Other Holding cos.; 10 = Real Estate cos.; 11 = Other
(3) This is the product of the equity investments relating to all the companies which, placed along the investment chain, are potentially placed between the company preparing
the C onsolidated Financial Statements and the company in question. If the latter is directly held by two or more subsidiaries, the sum of each of the single products is used.
(4) Total voting rights at Ordinary General Meetings if different to total percentage of direct or indirect shareholding.
(5) This disclosure is only required when the C ountry of the C orporate/Operational Headquarters differs from that of the Registered Office/Legal Headquarters.
Compared to the previous reporting year, the composition of Gruppo ITAS has changed following the
incorporation of the Società per Azioni a Socio Unico (Joint-Stock Company with Sole Shareholder)
named ITAS Patrimonio, to which ITAS Mutua, the Parent Company, has transferred residential
properties for use by third parties and properties designated for business use by third parties. The
transaction has not generated significant impacts on the Consolidated Financial Statements, in that the
(real estate) arm of the Company has been transferred at constant carrying and tax amounts and ITAS
Mutua is the holder of 100% of the shares of the transferred arm.
32
EXPLANATORY NOTES
Details relating to companies controlled by ITAS Mutua which have significant non-controlling interests are shown in the following table. Specifically,
the Companies of the Group which are the subject of the analysis below are ITAS Vita S.p.A. and ITAS Assicurazioni S.p.A., which both have their
Legal and Corporate Headquarters located in the new real estate complex of Le Albere in Trento (at Piazza delle Donne Lavoratrici, 2).
Scope of Consolidation: investments in companies with significant non-controlling interests
Amounts to the nearest Euro cent
Company name
ITAS VITA S.P.A.
% Noncontrolling
interests
%
Available voting
Consolidated
rights at Ordinary
profit (loss)
Shareholders'
attributable to
attributable to
Meetings
non-controlling non-controlling interests
attributable to
interests
non-controlling
interests
34.88
49.00
34.88
49.00
2,136,217.00
71,396.67
-42,539,081.54
-5,024,408.19
Summary economic and financial data
Total Assets
Investments
Technical
Provisions
1,962,318,533.66 1,349,533,741.69 1,380,277,612.48
18,775,504.62
12,884,710.61
10,801,803.74
Financial
liabilities
Shareholders'
Equity
0.00 94,147,192.17
0.00
6,564,127.88
33
Profit (loss)
for the year
8,353,480.61
148,457.17
Dividends
distributed to
non-controlling
interests
Gross Written
Premiums
0.00 421,742,773.05
0.00
5,645,099.84
EXPLANATORY NOTES
Principles and methods of consolidation
Consolidation methodology:

The figures contained in the Consolidated Financial Statements have been drawn from the financial
statements of the individual Companies of the Group, reclassified for consistency of presentation and
adjusted only for aligning the accounting policies used by the subsidiaries with those of the Parent
Company.

The shares of net equity and profit attributable to non-controlling interests of the subsidiaries are
included in the specific liability items and in the Income Statement contained in the Consolidated
Financial Statements.

The consolidated companies’ adjusted net (shareholders’) equities are eliminated against the related
equity investments or amounts recorded in the financial statements of the holding companies.

Intra-group balances and transactions, including revenues, costs and dividends, are entirely netted
out. The gains and losses arising from intra-group transactions included in the carrying value of
assets such as inventory and property are fully netted out. Unrealised intra-group losses are netted
out except in cases where such a loss represents a permanent loss in the intrinsic value of the
transferred assets.
Changes in a parent's ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions.
If the parent loses control of a subsidiary, it:

Derecognises the assets (including any goodwill) and liabilities of the subsidiary;

Derecognises the carrying amounts of any non-controlling interests in the former subsidiary;

Derecognises cumulative foreign exchange gains and losses included in Shareholders’ Equity;

Recognises the fair value of the consideration received;

Recognises the fair value of any investments retained in the former subsidiary;

Recognises any (resulting difference as a) gain or loss in the Income Statement;

Reclassifies its share of amounts of the subsidiary previously recognised in the Statement of
Comprehensive Income to profit or loss or retained earnings, as appropriate.
34
EXPLANATORY NOTES
PART D – VALUATION METHODS
In this section, the accounting standards used in the preparation of the Consolidated Financial
Statements and the items reported in the new accounting schedules are summarised.
NEW ACCOUNTING STANDARDS, CHANGES IN ACCOUNTING POLICIES AND CHANGES IN THE
PRESENTATION OF ACCOUNTING TABLES
New accounting standards
Following the approval of the European Union, for the reporting year commencing 1 st January 2014, new
accounting standards and amendments to documents previously in force became effective. The changes
to accounting standards deemed most relevant for the Group in comparison to the Consolidated Financial
Statements of 31st December 2013 are detailed below. In addition, new or amended standards issued by
the International Accounting Standards Board (IASB), but which are not yet effective are discussed.
Changes to accounting standards are set out per thematic area.
IFRS 10 – Consolidated Financial Statements – approved by the European Union with EU Regulation no.
1254/2012.
From 1st January 2014, IFRS 10 became applicable, replacing SIC 12 and parts of IAS 27. The latter has
been renamed “Separate Financial Statements” and governs the accounting treatment of shareholdings
(including investments in subsidiaries) in separate statements.
Under IFRS 10, an investor has control of an investee (i.e. an entity which it has invested in) if and only
if, at the same time, it has all of the following elements: i) decision-making power over the investee to
direct its “relevant activities”, these being those which significantly affect the investee’s returns, ii)
exposure or rights to variable returns from its involvement with the investee, and iii) the ability to use its
power over the investee to affect the amount of its returns (as the investor).
The application of IFRS 10 has not given rise to any changes on the scope of consolidation for Gruppo
ITAS since the previous reporting year.
IFRS 11 – Joint Arrangements – approved by the European Union with EU Regulation no. 1254/2012.
IFRS 11 replaces SIC 13 and IAS 31. This new accounting standard stipulates that investments in jointly
controlled companies must be recognised using the net equity method and outlines the criteria for
identifying joint arrangements by focusing on the rights and obligations arising from the agreements,
rather than on their legal form.
The application of this accounting standard has not had any effects on the Consolidated Financial
Statements of Gruppo ITAS.
IFRS 12 – Disclosure of Interests in Other Entities – approved by the European Union with EU Regulation
no. 1254/2012.
This new accounting standard sets out the minimum disclosure requirements regarding the nature of and
risks arising from investments of an entity in one or other entities and the effects of those investments
on the equity position, operating performance and cash flows of the investing entity.
35
EXPLANATORY NOTES
IAS 32 – Financial Instruments: Presentation – Offsetting of financial assets and liabilities, approved by
the European Union with EU Regulation no. 1256/2012;
The amendments clarify the meaning of “currently has a legally enforceable right to offset”. The
amendments also clarify the application of the offsetting method in IAS 32 in the event that settlement
systems (for example centralised clearing houses) apply non-simultaneous gross settlement mechanisms.
In addition, the standard stipulates that a financial asset and liability can be offset if and only if an entity:

Currently has a legal(ly enforceable) right to set off the recognised amounts between financial
assets and liabilities or, in other words, has a right established by contract or otherwise, to settle
or otherwise eliminate all or a portion of an amount due to a creditor by applying against that
amount an amount due from the creditor, and

Intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
If both conditions are met, the net balance of the positions is shown on the balance sheet.
These amendments have not impacted upon the Group’s financial position or its performance.
IAS 36 – Impairment of Assets – Additional disclosures on the recoverable value of non-financial assets,
approved by the European Union with EU Regulation no. 1374/2013;
Following the entry into force of IFRS 13 Fair Value Measurement, IAS 36 has been extended to include
additional requirements regarding accounting disclosures on the recoverable value of non-financial assets
(including goodwill) defined as fair value less disposal costs. The amendments have been applicable since
1st January 2014.
The changes have not had any significant impact on the operating performance, the equity position or the
financial position of the Group.
IAS 39 – Financial Instruments: Recognition and Measurement – Novation of Derivatives and
Continuation of Hedge Accounting, approved by the European Union with EU Regulation no. 1375/2013.
The amendments to IAS 39 add an exception to the existing provisions on novation of derivatives and
continuation of hedge accounting, for cases in which the hedging derivative meets certain criteria.
36
EXPLANATORY NOTES
Accounting standards, amendments and interpretations thereof not yet applicable and not
adopted by the Group in advance
The standards which were already issued (by the relevant accounting standards boards and other bodies)
on the date of production of the Consolidated Financial Statements, but which were not yet in force, are
discussed below. The list relates to standards and interpretations thereof which the Group reasonably
expects to be applicable in the future. The Group intends to adopt these standards when they enter into
force.
IFRIC 21 Levies, approved by the European Union with EU Regulation no. 634/2014.
This interpretation provides guidelines on accounting methods regarding certain levies which do not fall
under the stipulations on taxation issued in IAS 12. In particular, it specifies what constitutes an
“obligating event” for the recognition of a liability associated with a levy (where, for example, the
obligation to pay the levy results from a minimum threshold, e.g. of revenues, being reached or from the
fact the entity will be operating as a going concern on a given future date). This interpretation is
applicable at the latest from reporting dates starting on or after 17 th June 2014.
“Annual Improvements Cycle 2011 – 2013” – IFRS 3, 13 and IAS 40, approved by the European Union
with EU Regulation no. 1361/ 2014.
These improvements form part of the ordinary streamlining and clarification process of international
accounting standards and are intended to resolve inconsistencies or provide clarification on matters of a
methodological nature. The amendments are applicable at the latest from reporting dates starting on or
after 1st January 2015.
“Annual Improvements Cycle 2010 – 2012” – IFRS 2, 3, 8 and IAS 16, 24, 37, 38, 39, approved by the
European Union with EU Regulation no. 28/2015.
These improvements form part of the ordinary streamlining and clarification process of international
accounting standards and are intended to resolve inconsistencies or provide clarification on matters of a
methodological nature. The above-quoted regulation, which entered into force in January 2015 following
its publication in the Official Journal of the European Union, decrees application of the amendments at the
latest from reporting dates starting on or after 1st February 2015.
Amendments to IAS 19 “Employee Benefits” - approved by the European Union with EU Regulation no.
29/2015.
The amendments concern accounting methods for Defined Benefit plans under which a contribution is
payable by employees, depending on whether or not the contribution is based on the number of years of
employee service. The above-quoted regulation, which entered into force in January 2015 following its
publication in the Official Journal of the European Union, decrees application of the amendments at the
latest from reporting dates starting on or after 1st February 2015.
37
EXPLANATORY NOTES
For completeness, it is noted that, as at the date of the approval of this document, the IASB has issued
the following new standards and interpretations or amendments of existing standards:

IFRS 9 “Financial Instruments” issued on 24th July 2014, replacing the previous versions published in
2009 and 2010 for the “Classification and Measurement” phase (the first phase of the IFRS 9 project)
and in 2013 for the “Hedge Accounting” phase. With this most recent publication, the project to
reform IAS 39 (which has consisted of the “Classification and Measurement”, “Impairment” and
“Hedge Accounting” phases) has been completed. Yet to be completed is the review of macro-hedge
accounting, which is governed by a separate project on IFRS 9. In essence, the new accounting
standard introduces new rules for:
-
The classification and measurement of financial assets, based on the business model within
which an asset is held and on the characteristics of the instrument;
-
A single impairment model based on the “forward-looking expected loss” concept, in order to
provide more timely recognition of losses compared to the “incurred loss” model under IAS
39, on the basis of which losses may be recognised only if there is objective evidence of
impairment which has occurred following the initial recognition of the assets;
-
The recognition and recording of hedge accounting, with the aim of providing better
alignment between the accounting of hedges and risk management;
-
Accounting of so-called “own credit”, i.e. changes in the fair value of liabilities elected to be
measured at fair value (“Fair Value Option”) attributable to fluctuations in the entity’s own
credit risk. The new standard stipulates that such changes should be recognised in a reserve
in Shareholders’ Equity, instead of through profit or loss as is the case under IAS 39, so
removing a source of volatility in financial results which has become particularly evident
during periods of economic and financial crisis.
-
The mandatory application of the standard is expected from 1 st January 2018, with the
possibility of early application of the entire standard or only of the changes relating to the
accounting treatment of “own credit” for financial liabilities designated at fair value.

Amendments to IFRS 10, 12 and IAS 28 issued on 18th December 2014 on the matter of
accounting of investment amounts;

Amendments to IAS 1 issued on 18th December 2014 regarding the project on improvements in
the presentation of and disclosures in financial statements, among which are included changes to
the presentation of tables on the overall income from changes in reserves which arise from the
portion of Shareholders’ Equity attributable to jointly-controlled interests or significant influence
interests;

Improvement projects for certain IFRS (2012-2014) standards issued on 25th September 2014;

Amendments to IFRS 10 and IAS 28, issued on 11th September 2014, which govern the
accounting treatment of asset disposal or transfer transactions between an investor and its
associate or joint venture, depending on whether or not the transaction qualifies as “business”, in
accordance with IFRS 3;

An amendment to IAS 27, issued on 12th August 2014, on the basis of which the possibility of
38
EXPLANATORY NOTES
using the net equity method in the separate financial statements for the valuation of investments
in subsidiaries, associates and jointly-controlled companies has been introduced, in addition to
the existing options of valuing at cost or at fair value;

Amendments to IAS 16 and IAS 41- Agriculture: Bearer Plants. The amendments modify the
accounting of biological assets which qualify as fruit trees. In accordance with the amendments,
biological assets which qualify as fruit trees no longer fall under the scope of IAS 41; IAS 16 will
be applicable instead. The amendments were issued on 30th June 2014;

IFRS 15 “Revenue from Contracts with Customers”, issued on 28th May 2014;

Amendments to IAS 16 and IAS 38 containing some clarification on the permitted methods for
the recognition of depreciation/amortisation of tangible and intangible assets, issued on 12 th May
2014;

Amendments to IFRS 11 relating to the accounting of jointly-controlled companies (joint
ventures), issued on 6th May 2014;

IFRS 14 “Regulatory Deferral Accounts”. IFRS 14 is an optional standard which allows an entity
whose business activities are subject to regulated tariffs to continue to apply previously used
accounting standards for amounts relating to rate regulation from the time of initial application of
IFRS standards. However, the standard cannot be applied by companies which already use IFRS.
IFRS 14 was issued on 30th January 2014.
39
EXPLANATORY NOTES
Actuarial valuation of TFR (Employee Severance Indemnity), seniority awards/bonuses and
healthcare services
The valuation undertaken takes account of the modifications to the TFR scheme (Trattamento di Fine
Rapporto, i.e. Termination Indemnity or Employee Severance Indemnity) introduced by the reform on
supplementary pensions as per Legislative Decree no. 252 of 5 th December 2005, on the basis of which
the following five cases can be defined:
a) TFR benefits set aside and remaining in the Company accrued to 31/12/2006,
b) TFR benefits set aside and remaining in the Company accrued after 31/12/2006,
c) TFR benefits allocated to Supplementary Pension Schemes (in any form),
d) TFR benefits allocated to the Treasury Fund established at INPS (Istituto Nazionale della Previdenza
Sociale, the Italian National Social Security Agency),
e) TFR benefits allocated outside the Company as a result of tacit consent.
On the basis of the Legislative Decree, the obligation of the Company to guarantee revaluations of
allocated TFR benefits – in the order of 75% of inflation (as published by ISTAT, the national statistics
agency) plus 1.5% – applies only to the benefits referred to in case a) and case b) above only for
companies with up to 49 employees. The actuarial valuation of TFR will only need to be maintained for
these specific categories of contributions as it is a post-employment benefit plan, in contrast to other
cases for which the obligations of the Company cease with the payment of defined contributions by the
employee or as prescribed by the relevant laws.
In accordance with IAS 19, TFR (for the cases specified above), Healthcare Services and Seniority
Bonuses all fall within the scope of “Defined Benefit” plans; the first two are post-employment
employment benefits, while the third (i.e. Seniority Bonuses) is classifiable within the category termed
“other long-term (employee) benefits”.
For these benefits, the amounts which the Company has undertaken to pay upon the occurrence of
defined events which concern the employee’s working life, and also (in particular cases established by
national industry-wide collective agreements) during his/her retirement period, are projected. The
(future) benefits are discounted (to their present value), using the “Projected unit credit method” in order
to take account of the time which will pass before the actual payment of benefits.
With regards to TFR benefits, the calculation takes account of the amount already accrued at the
valuation date and takes account of changes in the expected cash flows of future benefits, while for
Seniority Bonuses and Healthcare Services only expected future benefits are considered.
As outlined in the methodology set out above, the liability is determined taking into account a series of
variables (such as mortality, projections in future salary changes, the expected inflation rate, foreseeable
returns on investments, etc.). The resulting liability recorded in the financial statements represents the
present value of the foreseeable obligation, net of any assets serving the plans, adjusted to reflect any
actuarial losses or gains which are not amortised. The discount rate used for the discounting of future
cash flows (to their present value) is based on the Iboxx Corporate AA 10+ index, according to the
average residual duration of the collective subject of assessment. The resulting discount rate is 1.49%.
The actuarial assumptions used for the purposes of the calculation are periodically reviewed to confirm
40
EXPLANATORY NOTES
their validity and their consistency with the subject of assessment. In contrast to last year, actuarial
gains and losses arising from subsequent changes in the variables used in the production of estimates are
immediately recognised in Shareholders’ Equity in the year in which the actuarial gains or losses occur, in
accordance with IAS 19 (revised).
In order to measure the impact on valuations (and their estimates) and, therefore, on the Group’s
Balance Sheet of a change in the assumptions on the rate used to discount future cash flows, a sensitivity
analysis has been undertaken on the present value(s) of the obligations following a hypothetical increase
and decrease in the discount rate of 0.5 percentage points. The results are reported in the table below,
with the resulting amounts shown to the nearest Euro:
Amounts to the nearest €
Benefit type
TFR (Employee Severance Indemnity)
Shift of -50 bps
Change
Chg. %
208,458
5.0%
Shift of +50 bps
Change
Chg. %
-194,182
-4.6%
Seniority Bonuses
61,954
4.2%
-57,482
-3.9%
Healthcare Services
95,416
6.7%
95,416
6.7%
365,828
5.2%
-156,248
-2.2%
Total
41
EXPLANATORY NOTES
1 – Intangible assets
1.2 – Other intangible assets
Other intangible assets acquired are recorded as assets, in accordance with IAS 38 when:

It is probable that use of the asset will generate future economic benefits,

The Group has control over or the power to exploit such benefits,

The cost of the asset can be determined reliably.
The assets have been recognised at cost net of accumulated amortisation and impairment losses. The
assets are amortised on a straight-line basis over their estimated useful life.
The period and the method of amortisation applied to intangible assets with a finite useful life are
reviewed at least as often as at the close of every reporting year. Changes in the estimated useful life or
the manner in which the economic benefits associated with the assets will be achieved are accounted for
by changes in the amortisation period or method used, as appropriate, and are treated as changes in
accounting estimates. The amortisation amounts for intangible assets with finite useful lives are
recognised in the Income Statement in the expense category consistent with the function of the
intangible asset.
In accordance with international accounting standards, any impairment losses in the value of assets are
checked for at least once a year, and the difference between their carrying value and their recoverable
value is recorded as a loss; in addition, a test of adequacy for their remaining useful lives is carried out.
The intangible assets held by the Group have finite useful lives.
Other intangible assets held following the acquisition of a company are recorded separately from
goodwill, if their current value can be reliably determined. They are recorded at fair value on the
acquisition date.
2 - Tangible assets
This item lists land, buildings and other tangible assets employed in the normal course of the Company’s
business.
2.1 – Land and Buildings
In accordance with IAS 16, land and buildings held for use by the company are recorded under this
category.
Buildings used in the production or supply of goods or services or for administrative reasons are
considered instrumental.
These are recorded at acquisition cost or production cost net of accumulated depreciation and impairment
losses. Costs directly attributable to their acquisition are included.
Ordinary maintenance costs are charged directly to the Income Statement.
Costs incurred following purchase are capitalised only if they can be determined reliably and if they
42
EXPLANATORY NOTES
increase the future economic benefits of the asset(s) to which they relate; the other costs are recorded in
the Income Statement.
Depreciation, using the straight-line method, is performed over the estimated useful life of the asset (i.e.
the property) for a period of 60 years.
With an infinite useful life, land held is not depreciated; for this purpose, with regards to buildings owned
“ground-to-sky”, land and buildings are treated separately.
As required by IAS 36, any impairment losses in the value of assets are checked for at least once a year,
and the difference between their carrying value and their recoverable value is recorded as a loss.
2.2 – Other tangible assets
Plant and equipment (machinery) are booked at purchase cost or production cost net of accumulated
depreciation and impairment losses.
Costs directly attributable to the acquisition of the asset(s) are included.
Ordinary maintenance costs are charged directly to the Income Statement.
Costs incurred following purchase are capitalised only if they can be determined reliably and if they
increase the future economic benefits of the asset(s) to which they relate; the other costs are recorded in
Depreciation is performed taking account of the estimated useful life of the assets.
In accordance with international accounting standards, at least once a year any impairment losses in the
value of assets are checked for, and the difference between their carrying value and their recoverable
value is recorded as a loss; in addition, a test of adequacy for their remaining useful lives is carried out.
Impairments
At least once a year, the Group verifies the recoverability of the carrying value of intangible assets and of
property, plant and equipment, in order to determine whether the assets have suffered a loss in their
value. If there are indications that such a loss has been suffered, the recoverable value of the asset is
estimated in order to determine the extent of the loss in value.
The recoverable value of an asset is the greater of its fair value less disposal costs or its useful value. The
useful value of an asset is calculated through using estimates of future cash flows that the asset is
expected to generate from its continuous use and eventual disposal.
A loss in value is recorded if the recoverable value is lower than the book (or carrying) value. When, at a
later stage, an impairment of assets other than goodwill, no longer exists or decreases, the book value of
the asset or cash-generating unit is increased up to the new estimated recoverable amount without
exceeding the value that would have been determined if the impairment had not been recognised.
Impairment or its reversal, whether partial or total, is immediately booked in the Income Statement.
Various indicators of impairment are in use and are periodically reviewed, such as the tendency for
reduction in the market value of similar assets, unfavourable changes in the reference environment
(technological, legislative or competitive), obsolescence of or physical damage to an asset, evidence of
43
EXPLANATORY NOTES
performance inferior to that expected or the necessity for an asset to be restructured.
3 – Reinsurers’ share of technical provisions
Reinsurers’ obligations arising from reinsurance treaties, as governed by IFRS 4, are recorded under this
item. Reinsurers’ shares of provisions are recorded and recognised in accordance with the standards
applicable to the underlying direct insurance contracts.
4 – Investments
With regard to the recognition and measurement of financial instruments, financial assets which fall
under the scope of IAS 39 are classified, as applicable, among Financial assets at fair value through profit
or loss, Loans and Receivables, Investments held to maturity, Available for sale (AFS) financial assets, or
among derivatives designated as hedging instruments, where the hedge(s) is (are) efficient. The Group
determines the classifications of its financial assets upon initial recognition.
4.1 – Investment properties
In accordance with IAS 40 (Investment Property), investment properties are considered to be properties
that are held in order to earn rent or for capital appreciation (or both). Investment properties are initially
recorded at historical cost, inclusive of transaction costs. Following initial recognition, among the
possibilities indicated by IAS 40, the Group has opted for valuation under the cost method, following the
depreciation methods defined by IAS 16 (Property, plant and equipment); the reader is, therefore,
referred to point 2.1 – Land and Buildings as this method has already been discussed under that heading.
Investment properties are eliminated from the balance sheet when disposed of or when the investment
becomes permanently unusable and no future economic benefits from its disposal are expected. Any
gains or losses arising from the withdrawal or disposal of an investment property are recorded in the
Income Statement in the year in which the withdrawal or disposal takes place.
Reclassifications from/to investment property occur only when there is a change in use. For
reclassifications from investment property to owner-occupied property, the reference value of the
property for its subsequent recognition is its fair value at the date of change in use. If an owner-occupied
property becomes an investment property, the Group records such assets in accordance with the method
set out in point 2.1 – Land and Buildings, until the date of change in use.
4.3 – Investments held to maturity
Investments held to maturity are those which are non-derivative financial assets with fixed or
determinable payments and fixed maturity which the Group intends and is able to hold to maturity. The
following assets are not included under this category:

Assets booked at the time of initial recognition at fair value through profit or loss,

Assets designated as available for sale,

Assets which meet the definition of Loans and Receivables.
These assets are valued at amortised cost using the effective interest method. The amortised cost is
calculated by recording any discounts, purchase premiums, fees or costs which are an integral part of the
effective interest rate. The effective interest rate is included in the financial income item of the Income
44
EXPLANATORY NOTES
Statement.
If there is objective evidence that an impairment loss has been incurred, the carrying amount of the
asset shall be reduced, with the amount of the loss directly recognised in the Income Statement.
Income and charges relating to the amortisation process, as well as any difference between carrying
value and the consideration received at the time of elimination are recognised in the Income Statement.
4.4 – Loans and receivables
Loans and receivables are non-derivative assets, with fixed or determinable payments and are not listed
on an active market.
Assets held for trading are not classified as such and are recorded at fair value through profit or loss, or
otherwise designated as available for sale.
Such assets are valued at amortised cost using the effective interest method.
This category includes loans on Life Insurance policies, loans granted to employees and agents and
deposits under reinsurance contracts.
If there is objective evidence that an impairment loss has been incurred, the carrying amount of the
asset shall be reduced, with the amount of the loss directly recognised in the Income Statement. Trade
receivables are not included.
4.5 – Available for sale financial assets
This category includes assets designated as available for sale or otherwise not classified as:

Financial assets initially recognised at fair value through profit or loss,

Investments held to maturity,

Loans and Receivables.
Such assets are valued at their fair value.
Unrealised gains and losses are recognised directly in Shareholders’ Equity, with the exception of
impairments. At the time when the financial asset is sold or subjected to impairment, the accumulated
gains or losses, including those previously recorded in Shareholders’ Equity, are charged to the Income
Statement.
Accrued interest is recognised directly in the Income Statement with the effective interest method, which
includes the annual share of amortisation of the book value of bonds (or other qualifying interest-bearing
instruments). Dividends are recognised when Shareholders’ rights to receive payment has been
established.
4.6 – Financial assets at fair value through profit or loss
This item comprises financial assets held for trading, whose holding is strategically aimed at being sold in
the short term for the purpose of obtaining a profit and those that are designated at fair value through
profit or loss upon their initial recognition.
Specifically, in this item, the Group records financial assets which hedge investment contracts for which
the investment risk is borne by policyholders (Index-Linked and Unit-Linked products), as well as assets
45
EXPLANATORY NOTES
relating to the management of pension funds.
Such assets are measured at their fair value.
Gains and losses are recognised directly through profit or loss.
Initial measurement and subsequent valuation
All financial assets are initially recognised at fair value.
Transaction costs are included at initial recognition for all financial assets, except those which are
recognised at fair value through profit or loss, for which such costs are charged to the Income Statement.
Following initial recognition, financial instruments classified as available for sale and those measured at
fair value through profit or loss are valued at fair value, while financial instruments held to maturity and
loans and receivables are valued at amortised cost.
For securities which are traded on regulated markets, fair value is based on the official closing price as
published by the concerned exchange at the end of the trading day on the last day of the reporting year
(i.e. on the balance sheet date itself – unless 31st December falls on a market holiday for the reference
market, in which case, the valuation is based on the closing price of the last trading day before 31 st
December).
In the event that a market valuation is not available for an investment, fair value is based either on the
current market value of a similar financial instrument or through the application of appropriate valuation
techniques, which includes reference to recent transactions, analysis of discounted cash flows (DCF) or
models capable of providing reliable estimates of prices obtained in actual market transactions. Where
fair value may not be reliably determined, and in the case that the amount concerned represents a
marginal and not significant portion of the portfolio, the financial asset is valued at cost, adjusted for any
impairments.
Recognition date
Purchases and sales of financial assets are valued as of the trading date.
Impairment of financial assets
The Group reviews if there is objective evidence that financial assets have suffered impairment(s) at least
annually.
For Loans and Receivables and Investments Held to Maturity, carried at amortised cost, any loss is
calculated as the difference in the carrying value of the asset and the present value of estimated future
cash flows, discounted at the (asset’s) original effective interest rate, and is recognised in profit or loss.
If, in subsequent years, the amount of the loss decreases, a reverse entry is made in the income
statement, showing the reduction of the loss previously recorded . However, the new carrying amount
may not exceed what the amortised cost would have been had the impairment not been recognised.
For financial assets classified as available for sale, for which any decrease in fair value is directly
recognised in Shareholders’ Equity when there is objective evidence that the asset has suffered an
impairment, the cumulative loss is recognised in the Income Statement. These impairments (i.e. the
amount of cumulative loss removed from Shareholders’ Equity and recognised in the Income Statement)
46
EXPLANATORY NOTES
are calculated as the difference between acquisition cost (net of any principal repayment and
amortisation) and current fair value (less any impairment loss on that financial asset previously
recognised in the Income Statement). If, in subsequent years, the amount of loss decreases, a reversal
entry is made, in accordance with the rules in IAS 39.
For debt instruments classified as available for sale, impairments are determined with the same methods
used for financial assets carried at amortised cost. However, the impairment amount is given as the
cumulative loss, that is to say the difference between the amortised cost and current fair value, less any
impairment on the investment previously recognised in profit or loss.
Evidence of possible impairment includes, for example, significant financial difficulties of the issuer,
incomplete or missed payments of interest or principal (i.e. delinquency or default), the possibility that
the borrower will enter into bankruptcy or other financial restructuring and the disappearance of an active
market for the asset in question.
IAS 39.61 stipulates that, in addition to the types of events so described in paragraph 59, objective
evidence of impairment for an investment in an equity instrument includes information regarding
significant changes with an adverse effect that have taken place in the technological, market, economic
or legal environment in which the issuer operates and indicates that the cost of the investment in the
equity instrument may not be recoverable. A significant or prolonged decline in the fair value of an equity
instrument below its cost is, in addition, objective evidence of impairment.
IAS 39 does not specify rules regarding the quantification of “significant or prolonged” for the assessment
of impairment of equity financial instruments differing from those valued at fair value through profit or
loss.
The normalisation of market conditions is reflected in a general reduction in the volatility of the Group’s
financial markets of reference at the end of 2014. The threshold of significance has been defined at 30%,
while prolonged decline in fair value continues to be defined as a continuous decline in market value
below Group cost for 12 months and, as such, these have not been modified in this reporting year
(2014).
As governed by IAS/IFRS accounting standards, securities which have suffered impairment in the past
half-year or in previous years are also valued using the same methods upon preparation of the annual
financial statements, while maintaining the impairment already recognised.
In addition, with regards to Loans and Receivables, whenever an event occurs which presents objective
evidence of impairment, an analytical assessment of the individual assets for which an adjustment is
necessary is carried out; alternatively, the receivables are divided into homogenous categories of risk and
an estimate of the impairments for each is determined based on historical experience of losses.
47
EXPLANATORY NOTES
5 – Receivables
This category comprises:
5.1 - Receivables relating to direct insurance operations
This item includes receivables on premiums written in course of collection and are recognised at their
nominal value. With regards to their accounting treatment, such receivables are not discounted insofar as
they constitute short-term receivables.
Write-downs of premiums receivable are performed taking account of historical trends of collections. This
item also includes receivables from insurance intermediaries, from insurance companies for current
accounts shown net of write-downs where these have been applied, as appropriate, and depending on the
circumstances.
5.2 – Receivables arising from reinsurance transactions
These receivables are reported at their nominal value.
In the normal course of its business, the Group has adopted a policy of prudent management of risk,
ceding part of the insurance risk of Non-Life and Life segments to European reinsurance companies of
high standing. The amounts recoverable from reinsurers are estimated in a manner coherent with
liabilities and net of payables, in accordance with the treaties entered into. Reinsurance activities are
reviewed by management, which analyses the concerned trends with respect to the Group’s data.
Reinsurance assets and liabilities represent balances with reinsurance companies and are eliminated
when the relevant contractual rights cease to be valid and, consequently, the contract is transferred to a
third party. Following an event for which reinsurance cover is applicable and the Group does not receive
what was agreed, the loss in value is charged to the Income Statement.
5.3 – Other receivables
In this item, other receivables of a non-insurance nature are recorded; they are recognised at their
nominal value and are subsequently measured at their probable realisation value and are discounted
where appropriate.
6 – Other assets
This category consists of:
6.3 – 6.4 – Current and deferred tax assets
In these items, assets relating to current and deferred taxes are recorded, as defined and governed by
IAS 12, including receivables from the tax authorities for pre-paid taxes on mathematical reserves of the
Life insurance business, of which article 1, paragraph 2 of Law Decree No. 209/2002, as enacted into Law
by article 1 of Law No. 265/2002 and subsequent amendments.
Deferred tax assets are calculated using the so-called “liability method” on temporary differences existing
on the reporting date between the value of assets and liabilities for tax purposes and their corresponding
values as reported on the balance sheet.
Deferred tax assets are recorded against all deductible temporary differences and for unused tax credits
48
EXPLANATORY NOTES
and losses carried forward, to the extent that it is likely that there will be sufficient future taxable income
against which the deductible temporary differences and the tax credits and liabilities carried forward may
be utilised, except in cases for which:

the deferred tax asset associated with deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction which is not a business combination and, at the
time of the transaction, affects neither accounting profit nor taxable profit (or tax loss);

where deductible temporary differences are associated with investments in subsidiaries, associates
or joint ventures, the deferred tax assets are only recognised to the extent that it is probable that
the temporary differences will reversed in the foreseeable future and that sufficient taxable
income (profit) will be available against which the temporary differences may be used.
The carrying value of deferred tax assets is reviewed on each balance sheet (i.e. reporting) date and is
reduced to the extent that it is no longer probable that sufficient taxable income (profit) will be available
to allow part or all of such tax asset(s) to be utilised. Unrecognised deferred tax assets are also reviewed
on each reporting date and are recognised to the extent that it becomes probable that sufficient taxable
income (profits) will be available to permit their recovery.
Deferred tax assets and liabilities are measured on the basis of the tax rates which are expected to apply
to the period when the asset(s) is realised or when the liability will be settled, based on the tax rates and
tax laws that have been enacted or substantively enacted by the reference balance sheet date.
Deferred taxes relating to transactions or events not recognised in the Income Statement are also
recognised outside the Income Statement and are, therefore, recorded directly in Shareholders’ Equity or
in the Statement of Comprehensive Income, according to the element (i.e. transaction or event) to which
they refer.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred taxes pertain to the same taxation entity and
the same tax authority.
This item also includes withholding tax credits from the tax authorities and receivables for advance
payments of taxes.
6.5 – Other assets
If present, this item includes transitory reinsurance accounts, deferred commission expenses relating to
investment contracts (DAC – deferred acquisition cost) and prepaid expenses, mainly referring to general
expenses.
7 – Cash and cash equivalents
Cash and cash equivalents include cash-ready instruments, that is to say those which possess the
characteristics of being available to be cashed on demand or in the very short term, are certain in nature
(or, more precisely, have insignificant risk of not being payable) and are free of redemption charges;
these are recognised at their nominal value.
49
EXPLANATORY NOTES
BALANCE SHEET – SHAREHOLDERS’ EQUITY AND LIABILITIES
1 – Shareholders’ Equity is comprised of the following components:
1.1 – Shareholders’ Equity attributable to the Group:
1.1.1 – Share Capital
This item includes equity instruments which, in relation to the legal entity issuing the Consolidated
Financial Statements, are included in Share Capital or in the equivalent fund and are fully subscribed and
paid-up. Specifically, it is composed of paid-up share capital, with its value corresponding to the nominal
value.
1.1.4 – Retained earnings and other equity reserves
Specifically, this item includes:

Retained earnings (profit reserves) or losses carried forward;

The gains or losses arising from the initial application of IAS/IFRS accounting standards (IFRS 1);

Consolidation reserves;

Reserves formed in previous years prior to the application of international accounting standards, in
conformity with the Italian Civil Code and special laws, including those from the property
revaluation reserve;

Equalisation and catastrophe provisions not recognised as insurance provisions under IFRS 4.
Profits or losses for the period due to fundamental errors and changes in accounting standards or
estimates used (as per IAS 8) are included.
1.1.6 – Reserve for currency translation differences
This item comprises foreign exchange rate differences to be recognised in Shareholders’ Equity in
accordance with IAS 21, deriving from transactions in foreign currencies.
1.1.7 – Gains or losses on available for sale financial assets
Gains and losses in the value of investments classified as “available for sale financial assets” are recorded
in this item. The reader is referred to the corresponding item on the Balance Sheet for further details on
the nature and accounting treatment of this type of asset.
The amounts are shown net of that attributable to policyholders (as accounted for in insurance liabilities
and described more fully in the section “Deferred policyholders’ liabilities”) and of related deferred taxes.
1.1.8 – Other gains or losses recognised directly in equity
This item includes unrealised gains or losses through Shareholders’ Equity, with particular reference to
the reserve deriving from the recognition of actuarial gains or losses (specifically, the re-measurement of
net defined liability) ensuing from the application of IAS 19 (revised) – Employee Benefits.
1.1.9 – Profit (loss) for the year attributable to the Group
This item refers to the Group’s consolidated result for the period.
50
EXPLANATORY NOTES
1.2 – Shareholders’ Equity attributable to non-controlling interests:
This item comprises equity instruments (and representative components thereof) and related equity
reserves attributable to third party shareholders, collectively defined as “non-controlling interests”.
Also included are reserves for “gains or losses on available for sale financial assets” and “other gains or
losses recognised directly in equity” attributable to non-controlling interests.
2 - Provisions
The Group recognises provisions or funds for risks or charges, pursuant to IAS 37 when:

the Group has an obligation, whether legal or constructive, vis-à-vis third parties,

it is probable that Group resources will have to be used to meet the obligation concerned,

the amount of the obligation can be reliably estimated.
Provisions are established for an amount equal to the best estimate of the expenditure required to settle
the present obligation at the Balance Sheet date.
Changes in estimates are recognised in the Income Statement in the period in which the change occurs.
3 – Technical Provisions
This item comprises liabilities related to insurance contracts and financial instruments (investment
contracts) with discretionary participation features (DPF) gross of outward reinsurance.
In accordance with IFRS 4, contracts issued have been classified as insurance contracts or investment
contracts based on the significance of the underlying insurance risk.
IFRS 4 defines an insurance contract as a contract under which one party (the insurer) accepts significant
insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a
specified uncertain future event (the insured event) adversely affects the policyholder.
Insurance risk is defined as the risk, other than financial risk, that is transferred from the holder of the
contract (i.e. the policyholder) to the issuer of the insurance contract.
Financial risk is defined as the risk of a possible future change in one or more of a specified interest rate,
financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating
or credit index or other variable, provided that, in the case of a non-financial variable, the variable itself
is not specific to any one of the (counter)parties to the contract.
An insurance risk is significant if, and only if, an insured event could cause an insurer to pay significant
additional benefits in any scenario, excluding scenarios that lack commercial substance (i.e. those that
have no discernible effect on the economics of the transaction).
In respect of the definition of an insurance contract under IFRS 4, contracts relating to Index-Linked,
Unit-Linked and Open-Ended Pension Funds do not have significant insurance risk; they therefore fall
within the scope of IAS 39 (Financial Instruments: Recognition and Measurement) and of IAS 18
(Revenue). This matter will be discussed specifically in point 4 (headed ‘Financial Liabilities’).
For insurance contracts, the following considerations apply:
51
EXPLANATORY NOTES
1. Revenues attributable to fixed costs of contract issuance borne by the Policyholder are
immediately recognised in the Income Statement at the time of the contract’s acquisition;
2. Any economic components which have an annually recurring character, among which are
management fees and commissions recognised as relating to items beyond the costs of managing
the core risk portfolio (e.g. fixed service fees for roadside assistance/car breakdown services,
etc.), are charged directly to the Income Statement in the period in which they are generated;
3. Capital redemption policies and contracts which do not have a significant degree of insurance risk
are considered investment contracts with discretionary participation features (DPF) and, as
permitted
by paragraph 35 of IFRS 4, the premiums, payments and changes in reserves are
recognised in the Income Statement.
Technical Provisions – Life insurance
Provisions for contracts with significant insurance risk and contracts with discretionary participation
features (DPF) (IFRS 4) have had pre-existing national accounting standards (i.e. previous local GAAP)
applied to them. The technical reserves related to them have been determined analytically – contract by
contract – on the basis of appropriate actuarial assumptions and in such a way as to reflect the fulfilment
of liabilities in existence on the Balance Sheet date. These include mathematical reserves, provisions for
amounts to be paid and additional provisions. In relation only to investment contracts with DPF,
provisions calculated under local accounting standards have been adjusted to take account of shadow
accounting, i.e. the effect on provisions arising from the recognition of the assets covering them and of
the related income and expenses, at market value.
In particular, the provisions relating to contracts as classified under IFRS 4 concern the:

Reserve for payable amounts:
This item comprises the obligations to policyholders for transactions related to the settlement of claims,
surrenders and, with respect to policies that have matured, accrued principal and annuities;
consequently, the amounts referred to herein are not included in Mathematical Reserves.

Mathematical Reserves:
Reserves of the Life business are calculated on the basis of pure premiums and actuarial assumptions
deemed appropriate as at the date when contracts were underwritten, insofar as they remain valid. The
rate of return used in their calculation is determined on the basis of the related investments for the
respective with-profits benefits (which are revalued) and the mortality rate used for the calculation of
pure premiums. In accordance with current regulations, the “unearned premiums” component of
mathematical reserves is calculated on a pure premium basis.
The mathematical reserve is never lower than the surrender value of the policies.
In compliance with the requirements of Chapter II of IVASS (formerly ISVAP) Regulation no. 21, the
reserve for contracts with sums insured on a contractually guaranteed annuity conversion factor (i.e.
contracts with a guaranteed annuity rate), as well as for deferred annuities and for “living benefit
52
EXPLANATORY NOTES
annuities” (also known as “variable annuities with a living benefit”), has been adjusted to reflect updated
demographic survival assumptions.
When deemed necessary, mathematical reserves are adjusted with additional reserves to take account of
the decrease in rates of return on assets covering such reserves, calculated on the basis of an ALM (Asset
Liability Management) procedure.

Other reserves:
This item includes the following reserves:
-
Reserve for deferred policyholders’ liabilities: for products linked to a separate internal insurance
fund(s), the discretionary participation feature has been recognised in unrealised gains and losses.
This component has been allocated among technical reserves, supplementing the reserves relating to
the guaranteed component. It has been calculated as the difference between the technical reserves
allocated and the technical reserve that would have been allocated had all the (unrealised) gains and
losses been realised on the reporting date.
-
Liability Adequacy Test reserve: in accordance with IFRS 4, the Group assesses the adequacy of its
recognised insurance liabilities using current estimates of future cash flows deriving from its (own)
insurance contracts. Should that assessment show that the carrying amount of its insurance liabilities
is inadequate, the entire deficiency will be recognised in profit or loss (i.e. in the Income Statement).
-
In particular, the test of adequacy for such liabilities has been conducted by comparing mathematical
reserves less deferred acquisition costs with the present value of future cash flows, obtained by
projecting the expected cash flows generated by the portfolio in existence at the valuation date, on
the basis of current assumptions on mortality, redemptions and expected trends in expenses.
-
Profit participation and reversal reserve: profit participation includes all amounts, chargeable to the
reporting year, paid and to be paid to policyholders and other beneficiaries, including amounts used
to increase technical provisions or to reduce future premiums, provided that they constitute
distribution of technical profits arising from insurance operations relating to single portfolios in the
Non-Life and Life businesses, after the deduction of amounts accrued in previous years that are no
longer necessary.
Reversals consist of the amounts which are partial rebates of premiums on the basis of the
performance of each contract.
53
EXPLANATORY NOTES
Non-Life Technical Provisions
Insurance contracts are those which transfer significant insurance risks.
With regards to the Non-Life
business, all products present in the portfolio have been classified as insurance contracts and fall under
the scope of IFRS 4.

Premium reserves
Premium reserves for direct (non-life) insurance are determined using the pro rata temporis method for
individual contracts on the basis of gross written premiums, adjusted by the corresponding cost relating
to acquisition commissions and any other acquisition expenses directly attributable to the premium base.
In addition, where applicable, the premium reserve includes the reserve for unexpired risks. The latter is
calculated by applying an empirical calculation method based on the loss ratio of present claims recorded
in the reporting year and is measured as appropriate.

Ageing reserve in the Sickness Class of insurance
The ageing reserve is calculated on a flat rate (of 10%) basis for insurance contracts on sickness
belonging to the long-term Italian annual premium portfolio as indicated by article 47, paragraph 3 of
ISVAP Regulation no. 16 and on the basis of technical actuarial methods for insurance contracts of multiyear, single premium terms pursuant to article 46, paragraph 1 of the aforementioned Regulation.

Claims reserve
Claims reserves are allocated according to the “ultimate cost” method (where “ultimate cost” refers to the
estimate of all foreseeable costs based on a prudent assessment of factual evidence, e.g. documentation
and forecasts on expected claims settlement timeframes and related inflation rates), evaluating claims
practices with the Inventory Method, also including the use of actuarial methods for claims in the Motor
TPL lines of business. In fact, the determination of Motor TPL reserves occurs through a “multi phase”
methodology, which comprises an initial phase from the gathering of inventory estimates of individual
open positions on the part of settlement offices, which is followed by a second phase, assigned to
Company management, undertaken using statistical-actuarial methods.
In addition, a separate provision relating to claims reported late has been established, taking account of
trends recorded in previous years.

Liability Adequacy Test (L.A.T.) reserve
In accordance with IFRS 4, insurance companies are required to verify the adequacy of technical
provisions recorded on the Balance Sheet. For the Non-Life sector, the (calculations implicit in
determining the) reserve for unexpired risks is deemed to constitute a test of liability adequacy.
54
EXPLANATORY NOTES
4 – Financial Liabilities
Financial liabilities designated at fair value through profit or loss and financial liabilities valued at
amortised cost are included in this item.
4.1 – Financial liabilities at fair value through profit or loss
This item includes financial liabilities held for trading or designated at fair value through profit or loss.
These include liabilities relating to investment contracts where the financial risk is borne by policyholders,
namely Index-Linked, Unit-Linked and Open Ended Pension Funds which do not present significant
insurance risk and therefore fall under the scope of IAS 39.
Their value is determined on the basis of the fair value of the asset, together with the fair value of any
guarantees and options existing in the contract.
Gains and losses are recognised directly in profit or loss.
In particular, the following considerations have been made:
1. The financial assets and liabilities relating to these contracts are recognised at fair value and
changes in fair value are recognised through profit or loss;
2. The insurance components, where indentified in these contracts (for example death cover), are
treated as insurance contracts (i.e. following the “unbundling” principle);
3. Revenues attributable to fixed costs of contract issuance borne by the Policyholder are
immediately recognised in profit or loss in the year of acquisition;
4. The initial commissions and acquisition commissions attributable to intermediaries on the date of
the contract’s acquisition are recognised, respectively, in Other liabilities and Other assets and
charged to the Income Statement;
5. Any economic components which have an annually recurring character, among which are
management fees and commissions to the distribution network relating to items beyond the costs
of managing the core risk portfolio (e.g. fixed service fees for roadside assistance/car breakdown
services, etc.), are charged directly to the Income Statement in the period in which they are
generated.
4.2 – Other financial liabilities
This item includes the financial liabilities within the scope of IAS 39 which are not classified as “Financial
liabilities at fair value through profit or loss”, among which are deposits received from reinsurers, debt
securities issued, bank borrowings and any other financial liabilities other than trade payables.
Other financial liabilities are initially recognised at fair value and subsequently measured at amortised
cost using the effective interest method.
55
EXPLANATORY NOTES
5 - Payables
This item consists of:
5.1 – Payables arising from direct insurance operations, including those with insurance intermediaries,
those
arising
from
current
account
relationships
with
co-insurance
companies,
those
towards
policyholders in respect of premiums and those in respect of guarantee funds pertaining to policyholders.
These payables are recognised at nominal value.
5.2 – Payables arising from reinsurance transactions
These payables are recognised at nominal value. The reader is referred to point 5.2 – Receivables arising
from reinsurance transactions in the explanatory notes relating to the “Assets” section above, as this has
already been described under that point.
5.3 – Other Payables
Other payables include allocations for obligations towards employees for Trattamento di Fine Rapporto –
abbreviated as “TFR” (Employee Severance Indemnity), pursuant to IAS 19. The reader is referred to the
section on “Employee Benefits” for details on the measurement method. In addition, taxes payable by
policyholders, payables to pension and social security agencies, as well as payables to suppliers and
employees are also included in this item.
6 – Other liabilities
6.2 – 6.3 – Current and deferred tax liabilities
These items include liabilities relating to current and deferred taxes, as defined and governed by IAS 12.
These liabilities are recognised in accordance with current tax legislation and are recognised on an
accruals basis.
Deferred tax liabilities are calculated by applying the so-called “liability method” to temporary differences
between the tax values of assets and liabilities and their corresponding book values.
Deferred tax liabilities are recognised for all taxable temporary differences, with the following exceptions:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, neither the
accounting result nor the taxable result is affected;

The reversal of taxable differences, connected to investments in subsidiaries, associates and joint
ventures, can be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
when the assets are realised or the liabilities are settled, based on the tax rates in force and those
enacted, or substantively enacted, by the reporting date.
Deferred taxes relating to items recognised outside profit or loss are also recognised outside the Income
Statement and, therefore, in Shareholders’ Equity or in the Statement of Comprehensive Income,
56
EXPLANATORY NOTES
according to the element to which they refer.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred taxes pertain to the same taxation entity and
the same tax authority.
6.4 – Miscellaneous liabilities
This item includes reinsurance suspense accounts, deferred commission income on direct investment
contracts (DIR) (i.e. investment contracts issued by the Group’s insurance companies), accrued liabilities
and liabilities relating to Defined Benefit plans and other long-term employee benefits (Healthcare
Services and Seniority Bonuses). The reader is referred to the section on “Employee Benefits” for the
measurement approach relating to these items. Liabilities for commissions on premiums under collection
are also included in this item.
57
EXPLANATORY NOTES
INCOME STATEMENT
1 – Revenues and other income
Revenues are recognised to the extent that it is probable that the Group will receive economic benefits
and their amounts can be measured in a reliable way. Revenues are recognised net of discounts,
allowances and returns.
Revenues from services provided are recognised when they have been rendered, or according to their
completion status.
1.1 – Net premiums
This item includes earned premiums relating to insurance contracts and financial instruments (investment
contracts) with discretionary participation features, net of outward reinsurance, as set out in IFRS 4.
1.2 – Commission income
This item includes commission income for financial services provided which are not included in the
calculation of the effective interest of a financial instrument, as required by IAS 18.
Specifically, the item includes commissions relating to investment contracts not falling under the scope of
IFRS 4, namely such contracts as those issued by insurance companies such as explicit and implicit
loading encumbering the contracts issued and, for contracts that provide for investment in an internal
fund or sub-fund, management fee income and other similar items.
1.3 – Income and charges from financial instruments at fair value through profit or loss
This item includes realised gains and losses, interest, dividends, charges and increases or decreases in
the value of financial assets and liabilities measured at fair value through profit or loss, which includes
assets and liabilities relating to Index-Linked and Unit-Linked investments and to pension fund
management.
1.5 – Income from other financial instruments and investment properties
This item includes income recorded from investment properties and financial instruments that are not
recognised at fair value through profit or loss. The item mainly includes: interest income on financial
instruments measured using the effective interest method, and other investment income, which includes
dividends and revenue from third-party use of investment properties, as well as the gains made on
disposals of financial assets or liabilities or investment properties, the increases arising from reversal of
impairment losses and from the fair value measurement of investment properties subsequent to their
initial (fair value) recognition and those of financial assets and liabilities.
1.6 – Other income
This item includes:

Revenues arising from the sale of goods, the rendering of services other than financial services
and from the third-party use of tangible assets (i.e. property, plant and equipment) and intangible
assets and of other Group assets as established by IAS 18;

Other net technical income relating to insurance contracts;
58
EXPLANATORY NOTES

Foreign exchange gains or losses to be recognised in the Income Statement as per IAS 21;

Realised gains and reversals of impairment (pursuant to IAS 36.199) on tangible assets (i.e.
property, plant and equipment) and intangible assets relating to non-current assets and disposal
groups classified as held for sale, other than discontinued operations (pursuant to IFRS 5.37).
2 – Expenses
2.1 – Net charges relating to claims
This item includes, gross of settlement costs and net of recoveries and ceded (i.e. outward) reinsurance,
the amounts paid in respect of claims, maturities, surrenders and annuities payable, as well as the
amounts of changes in technical provisions relating to insurance contracts that fall under the scope of
IFRS 4.
The item also includes changes in provisions for deferred policyholders’ liabilities with impact on the
income statement, as well as for changes in the Liability Adequacy Test (L.A.T.) reserve.
2.2 – Commission expenses
This item includes commission expenses on financial services received which are not included in the
calculation of a financial instrument’s effective interest, as required by IAS 18. Specifically, it includes
acquisition costs relating to investment contracts not falling under the scope of IFRS 4.
2.4 – Expenses from other financial instruments and investment properties
This item comprises expenses deriving from investment properties and financial instruments that are not
recognised at fair value through profit or loss. The item mainly includes: interest expenses on financial
instruments measured using the effective interest method, expenses on investments, including expenses
on costs relating to investment properties such as condominium expenses and maintenance and repair
expenses which cannot be capitalised (that is to say, those expenses which are not recognised in the
carrying amount of investment properties), losses realised following the disposal of financial assets or
liabilities and of investment properties, depreciation or amortisation charges, impairment losses and from
the measurement of investment properties or financial assets or liabilities measured at fair value
subsequent to their initial recognition.
2.5 – Operating expenses
The following are recorded under this item:

Commissions and other acquisition costs, including acquisition costs, net of (outward) reinsurance,
relating to insurance contracts and financial instruments, as set out in IFRS 4;

Investment management costs, including general expenses and personnel expenses allocated to
the management of financial instruments, investment properties and equity investments. These
also comprise custody and administration costs;

Other administrative costs, including general expenses and personnel expenses which are not
otherwise allocated to either claims costs, insurance contract acquisition costs or investment
management costs.
59
EXPLANATORY NOTES
2.6 – Other costs
This item comprises:

Costs relating to the sale of goods, the rendering of services other than those of a financial nature,
the use of tangible and intangible assets and other assets of the Group by third parties, as set out in
IAS 18;

Other net technical expenses associated with insurance contracts;

Additional allocations to provisions during the year;

Losses on foreign currency accounted for under IAS 21;

Realised losses, impairment and depreciation of tangible assets not elsewhere allocated, and similarly
for the amortisation of intangible assets;

Losses relating to non-current assets and disposal groups held for sale, other than discontinued
operations.
3 - Taxes
Income taxes include all taxes calculated on the basis of the expected taxable income in each year and
are stated on an accruals basis in accordance with current legislation.
Income taxes are recorded on the Income Statement, with the exception of items directly charged or
credited to Shareholders’ Equity, for which the tax effect is recognised directly in Shareholders’ Equity.
Deferred taxes are calculated – with the exception of cases expressly referred to in paragraphs 15 and 24
of IAS 12 – on all temporary differences emerging between the taxable base of an asset or liability and
the related carrying amount in the consolidated financial statements, to the extent that it is probable that
taxable income will be realised for which the temporary deductible differences can be used.
Deferred tax assets on tax losses and unused tax credits that can be carried forward are recognised to
the extent that it is probable that there will be a future taxable income under which they can be
recovered.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply, on the basis
of the tax rates and tax laws that have been enacted (or substantively enacted) and are in force on the
reference balance sheet date, to the period when the temporary differences will be reversed (i.e. realised
or settled).
Current and deferred tax assets and liabilities are offset when income taxes are levied by the same tax
authority and when there is a legally enforceable right to do so.
Use of estimates
The preparation of financial statements in compliance with IAS/IFRS accounting standards requires the
Group to make use of estimates that affect the value of assets and liabilities reported, as well as the
disclosure of contingent assets and liabilities.
The estimates used are periodically reviewed and the effects of their changes are recognised immediately
in the Income Statement.
60
EXPLANATORY NOTES
PART E – RISK REPORT
FOREWORD
In this section, supplementary information is provided regarding the nature, scope and modalities of risk
management relating to the financial instruments and insurance contracts which the Group is exposed to
as it conducts its business.
Risk Philosophy: Gruppo ITAS Assicurazioni is progressively implementing a Risk Management System
which permits the identification, assessment and control of the most significant risks on a systematic
basis. The objective of this System is that of maintaining the identified and quantified risks at a level
commensurate with the available capital of each of the individual Companies of the Group. Considering
profitability and the associated risks together, it is possible to both protect the Company’s assets and
pursue value growth over the long term, in line with the principles of the core “Mission” of Gruppo ITAS.
The philosophy and risk positioning followed and approved by the Board of Directors makes direct
reference, where possible, to the Enterprise Risk Management (ERM) model. Through the adoption of a
framework of this type, the Group seeks to frame its Risk Management System within an integrated
model which is internationally recognised and validated.
The Group is continuing to fully align its risk assessment and risk management processes with those
required under the Solvency II framework over the course of the formal adoption process, starting with
the transitional regime in which preparation is undertaken for full implementation in January 2016.
The Risk Management processes involve and affect all Gruppo ITAS Companies.
THE RISK MANAGEMENT SYSTEM
The general process of risk assessment and management, the implementation of which is ongoing, lays
out a series of risk assessment and evaluation steps encompassing a “virtuous” circle of mapping,
measurement, absorption and allocation of capital, mitigation and reporting.
Clearly, the monitoring phase, as with that for internal and external communication, contributes to the
guarantee of improved risk management on top of a progressive diffusion of a culture of control and risk
management.
Before examining the different categories of risk, it is useful to dedicate a specific paragraph to the roles
and responsibilities of the corporate bodies concerned.
1 – Roles of the Corporate Bodies
As outlined above for the “risk philosophy”, the identification of the roles of the corporate bodies most
directly involved in risk management constitutes one of the cardinal elements of the so-called (in ERM
vernacular) “Internal Environment”.
The bodies which have direct responsibility regarding the Risk Management System are: the Boards of
Directors, the Internal Audit Committee, Senior Management and the Control Functions (Risk
Management, Compliance and Internal Audit). It is important to note that all personnel employed in the
61
EXPLANATORY NOTES
various operating business units are also constantly involved in the management of risk under their
domain.
In the context of works of a strategic and organisational nature, the respective Boards of Directors of
the Companies of the Group, in line with the decrees of the Parent Company, have deliberated with
regards to the policies on the assumption, evaluation and management of the most heavily significant
risks. Such policies, which are binding for the Operational units, have the scope of maintaining an
appropriate degree of control and of avoiding unforeseen growth in risk exposure.
The Boards have fixed and periodically reviewed risk tolerance levels, also on the basis of results
obtained in solvency tests and in the analyses resulting from stress testing.
Through the dedicated Internal Audit Committee, the Boards moreover verify that Senior Management
maintains an appropriate degree of integrity in the overall Risk Management System and strategy.
The administrative bodies of the Group’s entities are periodically informed and updated on the Risk
Management System and strategy through Risk Reports.
The Internal Audit Committee monitors the adequacy and suitability of the overall system of controls
in place, carrying out consultative activities with the Board of Directors.
In accordance with the Guidelines set out by the Board of Directors, in addition to the ordinary
responsibilities assigned to it, Senior Management is responsible for implementing, maintaining and
monitoring the Risk Management System and carries out the following functions in this respect:

Implements policies on the assumption, evaluation and management of risks as set out by the
Administrative body (i.e. the Board of Directors),

Has responsibility for maintenance of the overall functioning and suitability of the organisational
structure of the Risk Management System;

Proposes initiatives to the Administrative body (i.e. the Board of Directors) regarding the suitability
and strengthening of the Risk Management System.
Important tasks and functions pertaining to the Risk Management System are governed by ISVAP (now
IVASS) Regulation No. 20/2008 on the Risk Management function within insurance companies. Set on
the basis of the principles of “separation” and “independence” from operational areas, it decrees the
placement of the Boards of Directors of the Companies of the Group into a specific position in the
hierarchical structure.
The Regulation defines the Risk Management function’s main responsibilities as including those of:

Assessing, measuring and monitoring the business’s risk profile, verifying the coherence of the
models used;

Ensuring the execution of stress tests and the implementation of any corrective action needed;

Defining the risk management policy and the relative criteria and methodologies of risk
assessment and measurement, as well as defining the various phases which constitute the
process of managing the risks in question;

Defining the structure of operational limits, in accordance with the risk tolerance limits defined by
the Board of Directors;

Organising reporting for the Administrative Body (i.e. the Board of Directors), Senior
62
EXPLANATORY NOTES
Management and those designated ‘In Charge’ of the Operating Units in respect of the evolution
of risk and the violation of defined operational limits;
A fundamental part of the above concerns the updating of developments in Regulations on matters of
solvency, overseeing methodologies of risk measurement and processes of risk monitoring in accordance
with the requirements stipulated by the Supervisory Authorities and to the policies of the Group,
collaborating where necessary with the respective Operating Units.
A ‘holistic’ analysis of business risks is conducted, namely a study of the Company’s solvency in the
context of the Solvency II framework, in accordance with the guidelines indicated by EIOPA at the
European level.
With the aim of preventing the risk of incurring legal or administrative sanctions or penalties, financial
losses or damage to reputation as a result of infringement of legislation, regulations or orders of the
Supervisory Authorities or self-regulatory codes, a compliance function has been established in ITAS
Mutua. Among its main activities are those of:

ongoing identification of the regulations and laws applicable to the Company and assessment of their
impact on corporate processes and procedures;

assessing the adequacy and effectiveness of organisational measures adopted for preventing the risk
of non-compliance with laws and regulations and proposing organisational and procedural changes
aimed at ensuring adequate control of risk;

assessing the effectiveness of organisational adjustments resulting from the suggested changes;

providing and maintaining adequate information flows to the Company’s governing bodies and other
involved parties in regard to matters of compliance.
2 – Identification of the main risks
The objective of the mapping of risks (“Event Identification” in ERM) is that of highlighting in a timely
manner the onset of risks which could damage the equity and financial positions of the individual
Companies of the Group and, by extension, that of the Group as a whole or the violation of tolerance
thresholds decreed by the Board(s) of Directors. Particular attention is paid to the assessment of risks
arising from the offering of new products or entry into new markets.
For the classification of the types of risk, the so-called ‘standard’ approach is followed, in line with the
framework defined by EIOPA, moreover validated by the European Commission itself in Solvency II.
Valuable reference has therefore emerged in the modular method of “building blocks” for quantifiable
risks (i.e. the so-called “Pillar One”) for which both qualitative and quantitative profiling is carried out.
For risks not adequately captured in the “Pillar One” system of classification – for example, operational
risks, compliance risks, reputational risks, strategic risks and ‘risks of belonging to the Group’ (or
“Contagion Risk”) – an at least qualitative assessment is being established with a proactive and coherent
approach, in keeping with the future requirements of “Pillar Two” under the Solvency II regime itself.
63
EXPLANATORY NOTES
ASSESSMENT OF RISKS AND POLICIES RELATING TO THEIR MANAGEMENT
In compliance with the requirements of IFRS 7 – introduced by Regulation (EC) No. 108 of 11th January
2006, as amended (also with successive EC Regulations), qualitative and quantitative details regarding
the different classes of risk deriving from financial instruments are reported in the sub-sections that
follow. Assessments of a qualitative nature, relating for example to exposures to risk and company
policies regarding their management, are, in the interests of completeness, extended to the technical
risks of the Life and Non-Life businesses.
Finally, it is also noted that the results of the sensitivity analyses reported below do not take tax effects
into account.
1 – Financial Risks
Included in the field of Financial Risks are the macro-classes of Liquidity Risk, Market Risk and
Credit Risk (of which the last of these are pertinent to reinsurers, counterparties in financial derivative
instruments and intermediaries). Market risks are categorised in their own sub-classes of risk for
considering the oscillations in value of equities, debt, property, exchange rates or variations in credit
quality of issuers of securities held in the portfolio. In addition, a dedicated module for concentration risk
is evaluated.
1.1 Liquidity Risk
Liquidity risk, defined as the inability of or difficulty in meeting one’s obligations towards insured parties
and of the costs arising from the management of such obligations, is managed by Gruppo ITAS in a
strictly defined manner.
Within the domain of the Group’s Investment Policy, possible difficulties linked to asset liquidity are
explicitly considered, following dedicated guidelines on this theme. In fact, the risk of not being in
possession of sufficient liquid assets for meeting payment demands in respect of liabilities is also
associated with the need to be equipped with a suitable asset allocation policy which provides the ability
to meet liquidity demands even in periods of market duress and other unfavourable scenarios. Therefore,
a strategy which takes account of the presence of assets with a limited duration and which are tradable
on regulated markets has been implemented. The combination of these two factors permits the Group to
face possibly extra-ordinary funding demands, which may not be manageable over the normal premium
cycle, with the ability to transform investments into liquid means without excessive price or rate (of
various kinds - including penalties, charges, taxes, etc.) risks. For this reason, an investment policy has
been implemented in which exposure of not greater than 10% of technical provisions in securities not
quoted on regulated markets is not permitted and a minimum level of securities with a modified duration
lower than 2.5 has been stipulated.
Liquidity risk is pre-emptively monitored and managed, also through the analysis of future cash flows and
simulations based on various sensitivities and/or stress testing. These last two testing methodologies
have the scope of evaluating the Group’s vulnerability to extreme, but nonetheless plausible events.
In the Life sector, a full Asset Liability Management (ALM) evaluation is carried out at least six-monthly
with the aim of examining the coherence (i.e. “matching”) between the maturities of the liabilities of the
64
EXPLANATORY NOTES
portfolio of the FOREVER and FORIV (Separately) Managed Funds and of the portfolio of assets. In
addition, in compliance with ISVAP (now IVASS) Regulation no.21, an assessment on the possible
inclusion in the statutory financial statements of a specific reserve for the coverage of minimum
guaranteed obligations is carried out. In this context, the methodology resulting in the most conservative
approach and calculation is adopted.
Projections of future cash flows generated by managing the pool of insured risks (i.e. premiums, claims
and expenses) as well as those generated by portfolio assets are also carried out periodically for the
P&C/Non-Life business, and the relative level of mismatching is analysed. Due attention is given to a
rational distribution of acquired securities consistent with the observations made in the ALM exercises.
The table below reports the distribution by maturity of undiscounted contractual cash flows by financial
assets held in the portfolio, with a distinction made by accounting type (i.e. Available for Sale = AFS and
Held to Maturity = HTM).
Amounts in €k
Time bands
AFS
HTM
Total assets
Up to 1 year
177,434
34,141
211,575
1 to 2 years
152,451
34,517
186,968
2 to 4 years
280,229
81,940
362,169
4 to 8 years
506,470
296,196
802,666
8 to 12 years
401,327
86,917
488,244
12 to 16 years
138,290
14,307
152,597
Over 16 years
38,673
59,752
98,425
1,694,874
607,770
2,302,644
TOTAL
Assets with an undefined or perpetual maturity (shares or units of UCITS, denoted in Italian by the
abbreviation “OICVM”, for a total exposure of €137.6 million) are valued at “fair value” and have not
been included in the time bands indicated above given that they are considered to be “without a predefined contractual maturity or expiry”. Even assets designated at fair value through profit or loss are not
represented in the table in that they are composed of Class D products for which the risk does not remain
with the Company.
On the liability side, mathematical reserves are reported for the main Separately Managed Funds
managed by the Parent Company’s subsidiary, ITAS Vita S.p.A., and categorised by time to maturity.
Amounts in €k
Time to maturity
FORIV
FOREVER
FOREVER PROG. PREV.
Up to 1 year
17,155
211
From 1 to 2 years
11,370
521
8
From 2 to 4 years
11,679
23,670
88
From 4 to 8 years
16,022
41,250
591
From 8 to 12 years
17,595
100,197
1,092
From 12 to 16 years
16,580
25,553
1,046
Over 16 years
211,490
820,511
5,145
TOTAL
301,891
1,011,913
65
-
7,970
EXPLANATORY NOTES
In the following table, the classification of mathematical reserves for with-profit tariffs is also reported by
minimum guaranteed rate level; details of the reserve covering minimum guaranteed obligations follow
thereafter.
Mathematical Reserves in ascending order of minimum guaranteed rates are as follows:
Amounts in €k
as at 31/12/2014
Guaranteed
Rate
FORIV
as at 31/12/2013
FOREVER
PROGETTO
PREVIDENZA
FOREVER
Total Class C
With-profits
Policies
% of total
Total Class C
With-profits
Policies
% of total
0.0%
114
7
0
121
0.0
129
1.0%
0
9,014
0
9,014
0.7
0
1.5%
0
264,749
0
264,749
20.0
57,643
5.7
2.0%
28,072
704,797
7,971
740,840
56.0
642,441
63.1
2.5%
5,115
196
0
5,311
0.4
5,395
0.5
3.0%
22,210
0
0
22,210
1.7
25,522
2.5
4.0%
65,723
0
0
65,723
5.0
72,866
7.2
5.0%
888
0
0
888
0.1
1,155
0.1
TMO*
179,769
0
0
179,769
13.6
180,349
17.7
0
33,150
0
33,150
2.5
32,016
3.1
301,891
1,011,913
7,971
1,321,775
100.0
1,017,516
100.0
TMO -1
Total
0.0
-
* TMO = Tasso Medio di rendimento delle Obbligazioni di Stato (i.e. The average of the yields of the most recently issued Government Bonds cf. and the gross average of all those issued in the
preceding 36 months)
Where TMO is the average due rate guaranteeable in compliance with IVASS regulations.
Note that the table does not include ordinary tariffs – principally term life policies, in Italian “TCM” or “temporanee caso
morte” – and does not include the amount of premiums paid by the Fondo Pensione Aperto (Open-Ended Pension Fund) not
yet valued on the valuation date.
The reserves for coverage of minimum guaranteed obligations have been calculated in relation to the
Separately Managed Funds (FORIV and FOREVER), representing the near-totality of reserves for
“investment risk not borne by policyholders”. The provision for payment of such obligations has been
deemed necessary for both funds and totals €10,990 thousand altogether.
1.2 Market Risks
In carrying out its insurance activities, the Group naturally finds itself exposed to adverse movements in
financial markets, or, more directly, to unexpected price movements of the securities it holds, in its real
estate assets, in currencies and interest rates, as well as to changes in the credit quality of the issuers of
securities held in the portfolio.
Currency risk consists of the financial risk linked to the level and/or volatility of exchange rates. It is
applicable to the assets and liabilities in the portfolio which are sensitive to exchange rate movements.
Exposures to risk: Such activities are not highly significant for the Group and amount to approximately
€49 million. They are all classified within the assets categorised as Available for Sale (AFS).
66
EXPLANATORY NOTES
Amounts in €k
31/12/2014
31/12/2013
Book value
Book value
Fair Value
46,890
2,658
Fair Value
2,108
953
AFS
Fair Value
298
0
AFS
Fair Value
0
797
49,296
4,408
0
71
Classification
Valuation
Method
Exposure in USD
AFS
Exposure in GBP
AFS
Exposure in NOK
Exposure in CHF
Asset type
Total assets in foreign currency
Mathematical reserve for CHF contracts
Local
Management policies in place: Precise limits have been set out in the Group’s Investment Policy,
specifying a maximum percentage of the portfolio which can be invested in securities of single companies
denominated in foreign currencies and not adequately supported by instruments which hedge such risk.
Real Estate risk is linked to the level and volatility of market prices of real estate properties held onbalance sheet.
Exposures to risk: At the close of the reporting period, the real estate assets of the Group had a fair
value totalling €261.3 million (Euros). The corresponding book value amounts to €136.8 million. Also
present in the portfolio are investments in specialist Real Estate funds and investments in companies
operating in the sector for a total amount of €39.4 million. Both the properties themselves (section 2.1
of the Balance Sheet) and the investments in Real Estate (section 4.1) have been valued at cost net of
amortisation. Real Estate funds and shareholdings in companies operating in the Real Estate sector
(which are noted in section 4.5) have, instead, been classified within available for sale (AFS) financial
assets and have, therefore, been valued under the fair value method.
Amounts in €k
31/12/2014
Asset type
Valuation method
Fair value
Book value
31/12/2013
Fair value
Book value
Land and buildings
Amortised cost
64,138
57,774
81,783
61,096
Amortised cost
197,188
79,008
174,052
71,058
39,384
39,384
41,862
41,862
300,710
176,166
297,697
174,016
Equities and Real Estate Funds
Fair Value
Total
Management policies: ITAS Mutua follows a non-speculative investment policy in respect of the Real
Estate sector.
As stipulated by IAS 36, a verification process for any impairments of asset values is carried out at least
annually, for example losses in which the book value exceeds the recoverable value.
Various indicators of impairment are in use and are periodically reviewed, such as the tendency for
declines in the market value of similar assets, unfavourable changes in the reference environment
(technological, legislative or competitive), obsolescence of or physical damage to an asset, evidence of
performance inferior to that expected or the necessity for an asset to be restructured.
67
EXPLANATORY NOTES
Sensitivity analysis: In order to evaluate the impact on the asset base (balance sheet) and income of the
Group of a possible change in the price of real estate assets, a scenario-based testing approach has been
employed. In particular, both a decline and a recovery of 10% in land and building prices have been
hypothesised. The repercussions of such price movements have been evaluated both on the direct
exposures of the Group (i.e. those on its balance sheet), as well as on indirect exposures (in which
financial instruments linked to the Real Estate sector, e.g. SICAV Real Estate Funds, are included). The
above-mentioned adverse scenario testing calculates the effect on the balance sheet only for financial
investments in the Real Estate sector present in the portfolio and would lead to a decline in the equity of
the Group of approximately €3.9 million. Such a scenario would not, however, impact directly on the
physical real estate assets (i.e. properties) held, in that their value as recorded on the balance sheet
would nonetheless be lower than that of the “post shock” valuation.
Equity risk arises from the consequences generated by losses in Equity market valuations.
Risk exposure: On the valuation date, the equities component of the portfolio totalled €137.6 million. All
positions have been classified within the category of available for sale (AFS) financial assets and are,
therefore, valued under the fair value method.
Amounts in €k
31/12/2014
31/12/2013
Book value
Book value
Classification
Valuation
Method
Equities
AFS
Fair value
53,334
51,313
UCITS
AFS
Fair value
84,252
57,033
Asset type
Total
137,586
108,346
Impairment: Impairment tests have been carried out in this reporting period, for which writedowns are
recorded for the AFS securities which have experienced a significant or enduring decline in their fair value
below their actual acquisition cost. Further details are supplied in the section on this matter in the
Balance Sheet.
Management policies in place: For management purposes, equity risk is monitored periodically through
analysis based on VaR (Value at Risk), for all the portfolios of the Companies of the Group, in compliance
with the guidelines set out in the Investment Policy.
Sensitivity analysis: In order to evaluate the Group’s exposure to the volatility of financial markets,
scenario analysis has been conducted. The effects of both a decline in prices of 20% (i.e. meeting the
technical definition of a so-called “bear market”) and then an eventual recovery of 20% in prices
following the decline have been determined. The repercussions have been evaluated on the shares
(equities) present in the portfolio which nonetheless represent a relatively limited burden in overall
percentage terms.
As shown in the table, the entire pool of equity investments is categorised under available for sale (AFS)
financial assets and, therefore, the relative changes in value are recorded in Shareholders’ Equity,
excluding securities subject to impairment.
68
EXPLANATORY NOTES
Amounts in €k
-20% Equity Market Indices
Type of asset
Classification
Balance
Sheet
+ 20% Equity Market Indices
Income
Statement
Balance
Sheet
Income
Statement
Equities
AFS
-7,091
-2,742
7,588
0
UCITS
AFS
-4,691
-284
3,582
0
-11,782
-3,026
11,170
0
Total
In the event that the hypothesised adverse scenario would be realised, a decline in Shareholders’ Equity
totalling approximately 11.8 million Euros (€) and a loss posted to the Income Statement of €3 million
would be recorded.
Interest rate risk is linked to the level and volatility of interest rates; it is measured and realised in the
context of the probability of incurring losses as a result of an unfavourable movement in rates.
Risk exposure: Exposure to such risks mainly concerns fixed-rate securities held in the portfolio and in
particular those with a long maturity (and, by implication, high(er) duration). On the valuation date, the
composition of the bond portfolio – which totals €1,967 million was as follows: 79% with fixed rate
coupons (77% on 31st December 2013) and 21% with floating rate coupons (23% on 31st December
2013).
Amounts of AFS and HTM securities held expressed in €k; Duration expressed in years
Portfolio mix
Fixed rate securities
Floating rate securities
Bond Portfolio Total
AFS
HTM
Duration
Modified
Duration
1,108,396
444,494
5.7
5.5
397,119
16,945
1.1
1.1
1,505,515
461,439
4.2
4.2
Management policies in place: For management purposes, interest rate risk is monitored periodically
through sensitivity analysis (e.g. by examining modified duration) and risk analysis based on Value at
Risk (VaR) for all portfolios belonging to the Group.
Life insurance in particular is subject to (guaranteed) interest rate risk insofar as the structure of the
product must generate defined interest payments and guarantee the contractually agreed payment
amount. Such correlations are monitored through specific analysis of Asset Liability Management (ALM),
within which there is specific and explicit reference to the liquidity risk contained therein.
Sensitivity analysis: In order to evaluate the financial and balance sheet impact of a possible variation in
interest rates, a scenario analysis has been carried out. In particular, the effects on the consolidated
financial statements in two symmetrical market scenarios have been examined, one of a general increase
in and one of a general decline in the level of rates by 100 basis points (bps) for each maturity (i.e. both
an upward and downward parallel shift of the yield curve).
The majority of bonds in the investment portfolio are classified as Available for Sale (AFS) assets and,
therefore, any changes in value are recorded in Shareholders’ Equity (excluding any impairments).
23.5% of the securities in the portfolio are for long-term investment purposes and so are categorised
69
EXPLANATORY NOTES
under “assets held to maturity” (HTM).
The results of the analysis are reported in the table that follows.
Amounts in €k
Shift of +100 bps
Asset type
Classification
Balance
Sheet
Shift of -100 bps
Income
Statement
Balance
Sheet
Income
Statement
Bonds
AFS
-76,041
0
83,317
0
Bonds held for long-term
investment purposes
HTM
0
0
0
0
-76,041
0
83,317
0
Total
The hypothesised scenario of a parallel upward shift in interest rates of 100bps for each point along the
curve would result in a decrease (on the asset side) in the Shareholders’ Equity of the Group of
approximately 76 million Euros (€) (considering only the impact on equity reserves from AFS assets).
Spread risk is defined as the financial risk tied to the volatility of so-called credit risk premiums (credit
spread) compared to risk free rates.
Risk exposure: The portfolio of securities is characterised by a conservative investment approach, with
the issuers of the securities predominantly being Sovereign States (Governments).
Amounts in €k
Asset type
Classification
31/12/2014
Fair value
31/12/2013
Book value
Fair value
Book value
Corporate securities
AFS
367,113
367,113
278,426
278,426
HTM
52,787
50,519
89,797
88,144
419,900
417,632
368,223
366,570
Total
Amounts in €k
Asset type
Classification
31/12/2014
Fair value
31/12/2013
Book value
Fair value
Book value
Government securities
AFS
1,138,402
1,138,402
812,343
812,342
HTM
484,993
410,920
448,587
424,247
1,623,395
1,549,322
1,260,930
1,236,589
Total
70
EXPLANATORY NOTES
The following tables show total asset exposure to issuer credit risk, as per the various classifications of
securities, as recorded in the balance sheet and further categorised by type and rating band.
Rating
Total debt securities (€k)
% of total
AAA
54,977
2.8
AA
35,639
1.8
A
75,521
3.8
BBB
1,715,831
87.2
Non investment grade
40,286
2.0
Not rated
44,700
2.3
Total
1,966,954
100.0
As at 31/12/2014, securities with a BBB rating dominate in the portfolio, due to the holding of national
(Italian) Government Bonds.
Type of
Security
Rating Class
Sovereign
AAA
AA
A
Bank Paper
Total Debt
Securities
(€k)
% of total
3,019
51,958
54,977
2.8
0
24,155
24,155
1.2
0
0
0
407,900
1,062,291
1,470,191
0
0
0
0.0
Not rated
0
0
0
0.0
AAA
0
0
0
0.0
AA
0
5,043
5,043
0.3
A
2,090
24,116
26,206
1.3
BBB
7,529
28,222
35,751
1.8
3,036
3,317
6,353
0.3
Not rated
0
310
310
0.0
AAA
0
0
0
0.0
AA
0
6,441
6,441
0.3
A
19,293
30,022
49,315
2.5
BBB
11,548
198,341
209,889
7,024
26,909
33,933
1.7
0
44,390
44,390
2.3
461,439
1,505,515
1,966,954
BBB
Corporate
AFS
Financial assets
(€k)
HTM Assets
(€k)
Not rated
Bond portfolio total
0.0
74.7
10.7
100.0
Assets designated at fair value through profit or loss are not represented in the table above since their
constituents are products with investment risk not borne by Gruppo ITAS.
71
EXPLANATORY NOTES
Portfolio of Debt Securities – Geographic diversification
For informational purposes, the composition of the Group’s bond portfolio is categorised by Geographic
Area and by security type (Sovereign, Corporate or Bank Paper). There is a high incidence of Italian
issuers (at approximately 88% of the total) and exposure to other Eurozone countries such as Spain,
France and Germany. Within the section headed “Other”, there are mainly Luxembourgish, Dutch, Irish,
Austrian and other European Union issuers and the residual is made up principally of Belgian, Swiss and
Chinese issuers.
Type of Security
Issuer/Country of
issuer
Sovereign
Italy
Corporate
% of total
1,045,052
1,452,953
Germany
0
7,429
7,429
0.4
France
0
9,484
9,484
0.5
United Kingdom
0
0
0
0.0
Spain
0
17,236
17,236
0.9
Portugal
0
0
0
0.0
Greece
0
0
0
0.0
United States
0
13,092
13,092
0.7
Other
3,019
46,108
49,127
2.5
Italy
7,598
39,705
47,303
2.4
Germany
0
6,512
6,512
0.3
France
0
0
0
0.0
United Kingdom
0
0
0
0.0
3,036
7,257
10,293
0.5
Portugal
0
0
0
0.0
Greece
0
0
0
0.0
United States
0
5,043
5,043
0.3
2,021
2,493
4,514
13,812
222,363
236,175
0
15,117
15,117
0.8
Other
Italy
Germany
France
73.9
0.2
12.0
9,068
6,614
15,682
0.8
10,225
0
10,225
0.5
Spain
0
7,530
7,530
0.4
Portugal
0
0
0
0.0
Greece
0
0
0
0.0
United Kingdom
United States
Other
Bond portfolio total
Total Debt
Securities
(€k)
407,901
Spain
Bank Paper
AFS
Financial assets
(€k)
HTM Assets
(€k)
0
12,035
12,035
0.6
4,759
42,445
47,204
2.4
461,439
1,505,515
1,966,954
100.0
Management policies in place: The Parent Company has explicitly defined the control and management of
risk tied to (individual) issuers of securities within the Business’s overall policy on financial investments.
In this regard, it has set a series of parameters to operate under in its financial management, specifying
the minimum rating and the permissible percentage of unrated debt securities. All positions are
periodically monitored and, in addition, scenario analysis is conducted with the scope of quantifying the
impact on the portfolio’s valuation due to a given change in credit risk premiums (i.e. credit spreads).
Sensitivity analysis: The reference methodology is that of a simulation-based approach for each given
scenario. The simulations carried out have hypothesised both an increase and a decrease of 100bps in
72
EXPLANATORY NOTES
credit risk premiums. The exposures considered only concern corporate securities (i.e. Corporate bonds)
present in the portfolio on the valuation date for a total amount of €417.6 million, cross-referenced to
simulations for investments in Government securities.
The results of the analysis showing the expected effects on the ‘asset side’ of the corporate bond portfolio
are provided in the table below. As previously indicated, the reader is reminded that the majority of
positions are classified among available for sale (AFS) financial assets. The impacts following the
hypothesised market shock(s) are therefore translated into a change of Shareholders’ Equity (excluding
any impairments).
Amounts in €k
Asset type
Classification
+100 bps in credit spreads
-100 bps in credit spreads
Balance Sheet Income Statement
AFS
-17,301
0
18,957
0
HTM
0
0
0
0
-17,301
0
18,957
0
Total
Considering fears surrounding the (credit) risk of the Sovereign Debt of “Old Europe”, changes in risk
premiums for securities held in the portfolio issued by governments have also been simulated.
In fact, fears on the solidity of the Eurozone endure, moving markets and bringing the growing public
debt of its Member States under the scrutiny of analysts. Nowadays, the perception and valuation of such
a type of risk for most Eurozone countries has in fact worsened and the “weakest links” are represented
by the so-called “peripheral” countries. Given its structural difficulties and heavy historical debt burden,
Italy has also been characterised by heated volatility. Therefore, a scenario of changes in risk premiums
for Sovereign securities has been simulated. In particular, with the scope of considering the effects of
such volatility, fluctuations of 100bps in terms of both an increase and a decrease in risk premiums have
been hypothesised.
The results of the analysis conducted to this effect are reported below.
Amounts in €k
+100 bps in credit spreads
-100 bps in credit spreads
Asset type
Classification
AFS
-64,764
0
71,553
0
HTM
0
0
0
0
-64,764
0
71,553
0
Total
Finally, concentration risk is the financial risk in which significant exposures to the same counterparty
can be incurred. In view of this, quantitative limits of the permitted concentration per individual issuer
and per group have been established and compliance with these limits is monitored at regular intervals.
1.3 Counterparty Credit Risk
Credit risk as a whole is composed of the possibility that one of the parties in a financial contract does
not fulfil its obligations, causing a financial loss to the (other) counterparty. Gruppo ITAS manages the
level of credit risk it is exposed to through a careful, thorough and appropriate selection of
counterparties. Such risk is manifested in reinsurance, in financial derivative(s) instruments, in its
73
EXPLANATORY NOTES
commercial relationships with the distribution network and with insured clients. Reference to credit risk
tied to issuers of the securities in the portfolio has already been made in the previous section (“Spread
risk”), to which we refer the reader for further details.
Reinsurance credit risk: Covers in passive reinsurance have the aim of limiting exposure to claims
liability in the portfolio of policies. Reinsurance cessions, however, generate credit risk for cases in which
reinsurers may not be able to meet their contractual obligations, through reinsurance treaties entered
into by Gruppo ITAS. For this reason, a careful and responsible management process for the Group’s
exposure to reinsurance counterparties is in place.
Risk exposures: On the balance sheet date, reinsurers’ share of technical provisions (excluding intragroup transactions) amounted to €48.1 million.
Management policies in place: Reinsurers are periodically monitored and limits of exposure to each of
them are revised at least annually; this is in respect of the policy indicated by the Administrative Body of
each Company in light of the IVASS regulations pertaining to this matter and in particular that of Circular
no. 574/D of 23/12/2005 and successive modifications.
The creditworthiness of each reinsurer is evaluated through rating analysis, with the aim of control of
specific limits of exposure per individual company and on any need arising to write down reinsurancerelated receivables recorded on the balance sheet.
Rating Class
Life Segment
(€k)
AAA
Non-Life Segment
(€k)
TOTAL
(€k)
% of total
Cumulative %
0
0
0
0.0
0.0
15,533
24,950
40,483
84.2
84.2
A
0
6,449
6,449
13.4
97.6
BBB
0
0
0
0.0
97.6
Not Rated
0
1,142
1,142
2.4
100.0
15,533
32,541
48,074
AA
TOTAL
100.0
On the valuation date, the Companies of the Group had, by and large, relationships with Reinsurance
Companies with a Standard & Poor’s rating of A or above (or equivalent ratings of other Rating Agencies).
Counterparty risk in financial derivative(s) instruments: Transactions in financial derivative(s)
instruments undertaken by Gruppo ITAS are executed in compliance with the regulations issued by
Supervisory Authorities. It is incumbent upon the Companies of the Group to take out derivatives both for
the purposes of risk reduction, as well as for the optimal management of their investments. Such
contracts are taken out with counterparties with a high credit standing (measured, for example, by their
rating). Transactions in financial derivative(s) instruments are subjected to quarterly controls and checks
by IVASS and specific controls, as well as specific and timely reporting to the Board of Directors (which
have established defined operational methods and procedures in risk assessment).
Credit risk exposure to policyholders and intermediaries: With regards to credit risk exposure to
policyholders, one can argue that in the Life business, such risk is mitigated by specific contractual
safeguards under which the benefits are recalculated on the basis of premiums paid. Receivables due
from policyholders are, however, reviewed periodically to examine their recoverability.
In the non-life businesses, in addition, a policy on the management of excesses is in place, while
management with regards to credit on premium payments is delegated to the distribution network (the
agency channel, etc.).
74
EXPLANATORY NOTES
Credit risk exposure to intermediaries (insurance agents – both those which the Group has a current
relationship with and those with which the relationship has been discontinued or is no longer active,
brokers, banks, etc.) is managed through a strict selection policy, with reviews conducted through daily
and fortnightly checks, tests and inspections.
75
EXPLANATORY NOTES
2 – Insurance Risk
Insurance risks are classifiable into two main types: underwriting risks and reserve risks.
Underwriting risks are made up of the characteristic risk of the Company arising from the underwriting
of contracts linked to the events covered, the pricing processes followed, the selection of risks, and from
trends in the claims rate which are negative or less favourable in comparison to those projected.
The determination of tariffs relative to all classes of insurance/lines of business in the Life segment and
the Motor Third Party Liability line is carried out through the use of statistical studies on claims rates
relating to insurable events. In addition, the underwriting structure undertakes selections of risk,
applying modifications/supplements to standard tariffs (e.g. additional premiums for professional, health,
sports risks, etc.) if necessary. The tariffs relating to other Non-Life lines are determined on the basis of
technical trends relative to insured risks.
Reserve risks are those which are tied to the quantification of technical provisions and to the possibility
that they may be insufficient in relation to contractual obligations towards insured and injured or
damaged parties.
For the Non-Life business, in relation to reserve risks, the Group’s Companies continuously review and
scrutinise the development of provisions relative to claims incurred but not yet paid and changes in
these; and for the Life business, the adequacy of the technical bases adopted for the setting of
mathematical reserves are reviewed, which may lead to the need for additional provisions to be made. To
these ends, actuarial methods are used and their basis is established following prevailing regulations,
guidelines and principles as adopted by the relevant professional associations. Such methodologies are
followed for all lines of business in the Life Segment and for the Motor Third Party Liability (Motor TPL)
line, in which the “Appointed Actuary” carries out specific, designated functions. For the other Non-Life
lines of business, the maintenance of technical provisions on the balance sheet is monitored.
Information relating to the management of insurance risks in both the Life and Non-Life businesses is
reported in the pages that follow.
2.1 Life Insurance Risk
Main characteristics and contractual conditions
The classification of tariffs on the basis of insured events can be differentiated into the following
categories: death, mixed type, Index-Linked and Unit-Linked policies, capital redemption contracts (also
previously known as capitalisation agreements), personal pension plans and pension funds.
Main assumptions on Life Insurance Risks
The definition and quantification of the actuarial and financial assumptions used for the pricing of
tariffs imposes a significant undertaking on management. These same hypotheses are used for the
quantification of reserves without taking account of the possible positive effects of early redemptions.
Assumptions regarding death and disability are based on national (Italian) statistics relating to
death and disability derived from the national statistics agency (ISTAT – the Italian National Institute of
76
EXPLANATORY NOTES
Statistics, the CNR (Consiglio Nazionale delle Ricerche - The National Research Council of Italy), the
Ragioneria Generale dello Stato – the State General Accounting Department, ANIA – the Italian National
Association of Insurance Companies, etc. These statistics have also been used for the pricing of
premiums through actuarial methodologies and are differentiated by gender, age, policy type, health and
occupational profiles.
The probability of redemption refers to the probability that the policyholder decides to terminate the
contract, while the probability of termination refers to the probability that the policyholder ceases to
make payments while remaining “in contract” for a reduced benefit.
Such probabilities are estimated on the basis of the historical experience of the Life Insurance Company
and are material in their influence for the calculation of reserves to cover the minimum guaranteed
obligations.
With regards to the return on assets, it is noted that the majority of with-profits insurance and financial
products are tied to separate management pools in which the returns due to the policyholder are
calculated on the basis of contractual rules. The latter stipulate the following: the minimum guaranteed
rate, the retrocession rate of separate management and the minimum retained by the Company.
Through the Asset Liability Management technique, which considers cash flows generated by technical
provisions and those of the assets jointly, a dedicated reserve is calculated for the coverage of minimum
guaranteed obligations.
For the discounting of future values of the Company’s obligations and those of the policyholder,
the Group has adopted the same technical rates detailed in the tariff structures. In addition, possible
additional guaranteed minimums over and above the technical rates have been considered.
Finally, a dedicated reserve for future expenses is calculated on the basis of operating expenses as set
and implied by the tariffs, taking account of their transfer (or credit) to subsequent years. The reserve for
future expenses has particular relevance for single premium, multi-year contracts and for those in which
the payment of premiums is suspended (so-called “reduced paid-up policies”). For policies with an annual
premium, a future expenses reserve has been allocated in order to take account of the time lag between
the time of premium collection and that of the management of the contract up until the collection of any
subsequent premium(s).
The technical basis under which such a reserve is calculated is monitored through an examination of the
operating costs actually sustained or those projected.
Risks arising from contracts in the Life Insurance business
A brief description of the policies to mitigate risk underwritten through the contracts of the types
mentioned in the paragraph “Characteristics of the contracts, financial and actuarial assumptions and
sensitivity analysis” follows.
In relation to mortality or temporary or permanent disability risks, risk factors which could result in
an overall increase in their frequency could include epidemics and natural disasters which would have the
effect of significantly raising the sources of such risks compared to those (normally) expected. The
77
EXPLANATORY NOTES
Company undertakes to limit and stabilise exposure to such risks through diversification of policyholders
by age and gender. The Company uses tailored questionnaires for correct pricing, also with reference to
declarations made by policyholders regarding their own medical, professional and sporting circumstances.
In particular, the insured amount is underwritten through fixed, predefined rules included in an
“underwriting scale” categorised on the basis of the degrees of insured capital for which different types of
health checks are required. Premium surcharges may be applied in the case of professional and sporting
activities undertaken by the policyholder and/or the presence of medical conditions considered ‘higher
risk’.
Beyond a certain level of insured capital, the Company also obtains a range of financial information
regarding the Client in order to evaluate his/her financial circumstances and personal wealth and,
therefore, to verify that the offer is suitable and appropriate. In each case, beyond a certain threshold of
insured capital and/or age of the policyholder, a Health Assessment is requested without exception on the
basis of specific types of medical documentation. Moreover, for (insured) amounts beyond a given
threshold, the underwriting of risk is conditional on the explicit acceptance on the part of a Reinsurer.
Following the underwriting phase, a policy of risk limitation is adopted for the event that claimable events
beyond those expected arise, through the use of reinsurance contracts.
Longevity risk is that which is typical of annuity contracts and arises from the development of medical
science and, in general, from the improvement in public health and social conditions. This risk is
significant only in a forward-looking context. Annuities being paid are, in fact, not at all substantial in
terms of quantity, however the presence of certain tariffs (e.g. the Open-Ended Pension Fund and lifecontingent annuities, the latter which have not been marketed for several years) and of contractual
options included in lump-sum policies potentially expose the Company to this type of risk. In this regard,
the management policy adopted stipulates the allocation of a specific reserve which takes account of the
latest longevity projections in comparison to the statistics used in pricing. In calculating the reserve, the
propensity of policyholders to draw annuity income is also taken into account in a prudent manner.
In the following table, the amounts of longevity reserve held on the balance sheet for the different types
of contracts present in the portfolio are reported. For (individual) deferred annuity (also known as
“deferred capital”) contracts and mixed annuity contracts, different (annuity) rates are expected with
respect to those in individual (non-deferred) annuity contracts and collective life contracts.
Additional reserve for
demographic risk (€k)
Contract type
31/12/2014
Lump-sum insurance plans
31/12/2013
8
10
Annuities
411
379
Pensions
2,635
2,238
3,054
2,627
Total
The Risk of unfavourable behaviour of policyholders is tied to changes in redemptions and
reductions (termination of premium payments). Such risk is managed through the employment of
78
EXPLANATORY NOTES
suitable reserve techniques.
Expenses risk is that which arises from the higher incidence, over that implicitly expected in the
construction of the relevant tariffs, of the costs linked to honouring insurance contracts or of the
Company’s structure as a whole.
Life Catastrophe Risk originates from extreme and/or irregular events not considered in the pricing
phase. In reality, it is concerned with an additional risk level, which should take account of adverse
extreme movements both of biometric characteristics (mortality/longevity, disability) and redemptions.
Such risk is managed, in particular for collective contracts, through contractual limitations of coverage
and through the use of reinsurance contracts.
Test of adequacy in respect of obligations towards insured risks recorded in the balance sheet:
An evaluation of the maintenance of technical provisions recorded in the balance sheet through the socalled Liability Adequacy Test is undertaken periodically.
Through this test, the reserves are compared to the present value of cash flows deriving from contracts,
inclusive of all operating expenses linked to them. Insufficiencies of said provisions have not emerged
from the results of this test.
2.2 Non-Life Insurance Risk
The modalities of underwriting and reserve risk management are also outlined for the Non-Life Segment.
Underwriting risk is defined as the risk that premiums charged to policyholders may not be sufficient to
cover claims and future expenses. In general, for all lines of business, monitoring to this effect is carried
out monthly with the aid of key indicators concerning both trends in premium rates and claims rates. In
the Motor line, particular attention is paid to the main variables which determine pricing, such as: claims
frequency, average claims cost and expenses in such a way as to detect (pricing) leakage or otherwise of
the tariff.
The underwriting of non-life contracts is principally concerned with Individuals and Small & Medium Sized
Enterprises (SMEs), with the adoption of a rigorous policy which sets out the application of excesses,
limitation of insurable events and the ceding of risk to reinsurers, with the aim of creating a homogenous
base of insured risks characterised by low volatility of operating results.
The main non-life lines of business which the Company operates in are: Motor Third Party Liability (Motor
TPL), Other Property Damage lines, Fire, Accident, General Third Party Liability, Land Vehicle Hull and
Sickness. The origin of the Company’s premium income is concentrated in the North East of Italy.
Reserving risk is concerned with the uncertainty in reserve run-off, or the risk that claims reserves may
not be sufficient to cover liabilities towards insured and/or damaged parties. In general, such risk is
mitigated through monthly monitoring of the claims reserve run-off; given its status as a long-tail class of
insurance, statistical-actuarial methodologies are also used for the Motor TPL line.
The assumptions adopted under each method are comprehensively reported in the Technical Report
written by the Appointed Actuary for Motor TPL and sent to IVASS (formerly ISVAP), pursuant to
Regulation No. 16/2008, implementing article 37, paragraph 1 of Legislative Decree 209/2005 (Codice
delle Assicurazioni Private – Code of Private Insurance Companies).
79
EXPLANATORY NOTES
In the indicated report, an analysis of the sensitivity of the results dependent on the actuarial
assumptions (and changes in such assumptions) made under each method are reported, with the aim of
gaining a better understanding of the possible financial impact(s) of changes in said assumptions.
With regard to the other classes of insurance/lines of business, the assessment of reserves is mainly
based on the so-called Chain-Ladder method; currently, the analysis conducted and scenarios which have
been simulated show solid coverage of such risk on the part of Gruppo ITAS.
80
EXPLANATORY NOTES
3 – Compliance Risks
In the context of the system of Internal Controls and of Risk Management, the Group has furnished itself
with a Compliance function which is centralised at the Parent Company level and is responsible for the
following activities:

assessing whether the organisational structure and internal procedures of the Company are
suitable for preventing the risks of incurring legal or administrative sanctions or penalties,
financial losses or damage to reputation, as a result of infringement of legislation, regulations or
orders of the Supervisory Authorities or self-regulatory codes;

and to support the Board of Directors and Senior Management in the identification of the risk of
non-compliance with the relevant regulations.
To this end, a Group Compliance Policy has been established which details the principles and guidelines
on such matters. In the identification and assessment of the risk of non-compliance with laws and
regulations, particular attention is paid to compliance with regulations governing matters of transparency,
fairness of treatment and professional conduct towards insured and injured parties, pre-contractual and
contractual disclosures, the proper performance of contracts, specifically in regard to the management of
claims and, more generally, consumer protection.
4 – Operational risks
Operational
risk
considers
the
possibility
of
incurring
losses
derived
from
the
inadequacy,
underperformance or failure of internal processes, human resources and systems, or from other causes
which may result from external events.
Management of operational risks are principally assigned to the Heads of each Business Unit, who are
called on to identify and action risk mitigation initiatives.
In relation to Information & Communication Technology (ICT) systems, their relative efficacy is monitored
both internally and by analysis and testing procedures undertaken by companies specialised in this field.
Security and access requirements, as well as those of continuity and performance of ICT systems are
guaranteed at high levels, together with those in Disaster Recovery, which are physically located at some
distance away from the Group’s Corporate Headquarters.
The Group is equipped with a Disaster Recovery Plan, which is a strategic plan aimed at minimising data
and corporate information losses, as well as the times of their restoration in particularly critical
situations; the Plan defines the combination of technological measures needed to restore systems and
data and the infrastructure necessary for the provision of services in the event that exceptional and/or
catastrophic events occur.
In relation to the Group’s Organisational Structure, an important role is played by the mapping of
company processes (of business, governance and support) and from the formalisation and dissemination
of related information, including control hubs. In this regard, a Library of Company Processes of the
Group has been created, readily accessible when needed, including in Disaster Recovery situations.
The existing library of information will be enriched with progressive activity on the qualitative profiling of
81
EXPLANATORY NOTES
macro-classes of operational risks, thereby resulting in the development of an ever more integrated
system of processes, risk and aligned controls.
In relation to the measurement of the above-mentioned type of risk and the definition of the related
absorption of capital, the Group’s Risk Management function uses the methodology outlined by EIOPA
(European Insurance and Occupational Pensions Authority) under the so-called “Standard Formula” in the
Solvency II framework.
82
EXPLANATORY NOTES
PART F – SPECIFIC SUPPORTING INFORMATION ON ITEMS IN THE FINANCIAL STATEMENTS
The Balance Sheet is reported by business segment relating to the main items presented, with a
breakdown by Non-Life and Life businesses provided. The information does not report the disclosures
required under IFRS 8 (Operating Segments), inasmuch as the stipulated conditions are not applicable in
this case. The consolidation adjustments shown refer to the elimination of intra-group shareholdings, to
receivables and payables arising over the year and to items arising from the provision of services
between the Companies of the Group.
83
EXPLANATORY NOTES
Balance Sheet by business segment
Non-Life Segment
2014
1
2
3
4
4.1
4.2
4.3
4.4
4.5
4.6
5
6
6.1
6.2
7
1
2
3
4
4.1
4.2
5
6
INTANGIBLE ASSETS
TANGIBLE ASSETS
REINSURERS' SHARE OF TECHNICAL PROVISIONS
INVESTMENTS
RECEIVABLES
OTHER ASSETS
Other assets
TOTAL ASSETS
PROVISIONS
PAYABLES
OTHER LIABILITIES
Life Segment
2013
2014
1,297,069.69
1,650,720.55
166,552.08
66,959,679.39
67,721,190.57
19,995.61
32,540,506.43
44,493,143.01
15,533,156.41
810,356,528.23
753,050,449.12 1,914,793,011.29
73,839,000.64
65,803,242.52
5,168,936.27
64,436,124.28
64,436,124.28
3,078,040.79
149,667,443.17
163,970,233.58
311,771,400.59
12,048,178.10
10,870,648.94
1,127,191.76
510,365,782.04
447,970,199.80
1,132,735,320.84
0.00
0.00
460,912,121.04
108,124,176.17
93,904,909.53
19,125,259.13
33,423,962.26
38,513,866.11
19,772,227.22
0.00
0.00
0.00
33,423,962.26
38,513,866.11
19,772,227.22
36,772,805.14
15,820,169.71
83,023,008.84
1,089,474,727.31 1,015,154,448.60 2,052,433,210.58
1,728,312.91
711,423,960.93
0.00
0.00
0.00
52,855,632.78
37,160,815.78
2,175,584.81
415,781.43
690,895,092.69 1,417,117,113.75
0.00
473,284,492.28
0.00
460,719,279.42
0.00
12,565,212.86
51,912,729.94
13,500,189.28
23,649,517.05
20,606,486.64
84
Inter-segment eliminations
2013
2014
93,573.27
19,590.28
19,950,964.02
1,494,897,724.98
5,255,232.99
3,078,040.79
348,420,934.57
1,233,701.32
751,145,294.44
385,764,520.87
12,808,046.69
17,040,383.13
0.00
17,040,383.13
45,646,008.64
1,590,456,291.01
0.00
0.00
0.00
-67,514,165.07
0.00
-67,514,165.07
0.00
0.00
0.00
0.00
-5,780,606.82
0.00
0.00
0.00
0.00
-73,294,771.89
406,200.00
1,076,713,107.64
403,010,270.08
385,732,137.07
17,278,133.01
10,913,226.03
6,737,703.40
0.00
0.00
0.00
0.00
0.00
-5,780,606.82
0.00
2013
Total
2014
0.00
1,463,621.77
0.00
66,979,675.00
0.00
48,073,662.84
-67,514,165.07 2,657,635,374.45
0.00
79,007,936.91
-67,514,165.07
0.00
0.00
461,438,843.76
0.00
13,175,369.86
0.00
1,643,101,102.88
0.00
460,912,121.04
-4,103,468.19
121,468,828.48
0.00
53,196,189.48
0.00
0.00
0.00
53,196,189.48
0.00
119,795,813.98
-71,617,633.26 3,068,613,166.00
346,300,987.04
0.00
2,144,094.34
0.00 2,128,541,074.68
0.00
473,284,492.28
0.00
460,719,279.42
0.00
12,565,212.86
-4,103,468.19
60,575,215.24
0.00
57,767,302.42
3,068,613,166.00
2013
1,744,293.82
67,740,780.85
64,444,107.03
2,180,434,009.03
71,058,475.51
0.00
512,391,168.15
12,104,350.26
1,199,115,494.24
385,764,520.87
102,609,488.03
55,554,249.24
0.00
55,554,249.24
61,466,178.35
2,533,993,106.35
271,683,142.90
2,581,784.81
1,767,608,200.33
403,010,270.08
385,732,137.07
17,278,133.01
58,722,487.78
30,387,220.45
2,533,993,106.35
EXPLANATORY NOTES
ASSETS
Details on tangible and intangible assets are reported hereunder.
Details on tangible and intangible assets
ITAS MUTUA Consolidated Financial Statements as at 31/12/2014 (F igure s to the ne a re s t Euro c e nt)
At restated value or
At cost
Total book value
at Fair Value
79,007,936.91
0.00
79,007,936.91
Other property
57,773,859.97
0.00
57,773,859.97
9,205,815.03
0.00
9,205,815.03
1,463,621.77
0.00
1,463,621.77
1 – Intangible Assets
1.2 – Other intangible assets
The item “Other intangible assets” refers to costs of a multi-year character mainly incurred for the
purchase and development of IT applications relating to the development of the management systems of
the Group’s companies, the claims settlement network and the agency network. The values reported
relate to software products provided by companies outside the Group and include costs incurred for the
development of important IT projects, the costs of which will be amortised over their estimated useful life
of three years.
Amounts in €k
Changes in the year in intangible assets
2014
2013
Gross opening book value
+
24,128
22,487
Increases in the year
+
1,077
1,655
1,077
1,655
for: acquisitions or capital improvements
write-backs
revaluations
other changes
Decreases in the year
14
-
for: disposals or decreases
14
permanent write-downs
other changes
Gross closing book value (a)
25,205
24,128
Amortisations:
Opening book value
+
22,384
20,760
+
1,357
1,638
1,357
1,638
for: amortisation charges for the year
other changes
14
-
for: disposals
14
other changes
Closing book value: Amortisations (b)
Book value (a - b)
No impairment losses were recorded as a result of the analysis undertaken.
85
23,741
22,384
1,464
1,744
EXPLANATORY NOTES
2 – Tangible Assets
2.1 – Land and buildings
The main changes that occurred in the period and the fair value of the properties directly used by the
Parent Company and its subsidiaries for their business operations are shown in the table below:
Amounts in €k
Changes in the year in own-use properties
2014
2013
+
64,988
59,753
+
2,311
10,567
2,311
10,567
7,173
5,332
7,173
5,332
60,126
64,988
write-backs
revaluations
other changes
-
other changes
Depreciation:
Opening book value
+
3,892
3,569
+
690
323
690
193
for: depreciation charges for the year
other changes
130
-
2,230
for: disposals
other changes
2,230
Closing book value: Depreciation (b)
Book value (a - b)
Fair value
2,352
3,892
57,774
61,096
64,138
81,783
The “Other changes” relating to decreases in the year are mainly attributable to the change in designated
use of properties, from third party to own use for business operations, mainly as a result of the transfer
of the Registered Office/Legal and Corporate Headquarters of the Companies of the Group to the new
Le Albere complex in Trento.
The increases in the year principally relate to the completion of construction work for the Group’s new
Corporate Headquarters and to the acquisition of a property located in Verona (in the Veneto region of
North-East Italy) which has been designated for business use.
The market value of the properties has been determined through individual appraisals on each building
on the basis of their individual characteristics and taking account of their profitability. Specifically, the
purchase price of a new building of similar characteristics (e.g. structure/building type, size, location,
preservation status or other factors affecting value) has been considered, adjusted by coefficients on the
basis of the age, quality and condition of the property. For leased real estate properties, the rental (or
86
EXPLANATORY NOTES
lease) price in relation to the expiry of the contract has been taken account of. The values have been
calculated net of property ownership transfer taxes and duties, as well as any other charges. The
appraisals of (market) values of land and buildings are based on valuation reports commissioned to
qualified, independent third parties and updated in February 2011 and thereafter.
No real estate assets are leased.
2.2 – Other tangible assets
This item mainly includes furniture, fittings, office equipment and hardware.
Amounts in €k
Changes in the year in other tangible assets
2014
2013
+
21,133
18,630
+
3,800
4,268
3,800
4,268
515
1,765
515
1,765
24,418
21,133
write-backs
revaluations
other changes
-
other changes
Depreciation:
Opening book value
+
14,488
15,160
+
1,239
788
1,239
788
515
1,460
515
1,460
15,212
14,488
9,206
6,645
other changes
-
for: disposals
other changes
Book value (a - b)
The annual rates of depreciation applied by asset type are shown in the table below and are unchanged
from last year.
Asset type
Annual rate of depreciation
Furniture
12.0%
Fittings
15.0%
Plant and equipment
15.0%
Office equipment and hardware
20.0%
Telecommunications equipment
20.0%
Motor vehicles
25.0%
87
EXPLANATORY NOTES
3 – Reinsurers’ share of technical provisions
Details of technical provisions - reinsurers' share
Direct business
Non-Life Provisions
Premium provision
Claims provision
Other Non-Life provisions
Life Provisions
Provision for sums to be paid
Mathematical reserves
Technical provisions where the investment risk is borne by
policyholders and arising from Pension Fund management
Other Life provisions
Total technical provisions - reinsurers' share
Indirect business
Total book value
2014
32,523,898.93
6,491,570.34
26,032,328.59
0.00
15,533,156.41
1,582,730.80
13,621,728.72
2013
44,493,143.01
8,096,262.65
36,396,880.36
0.00
19,950,964.02
1,600,092.05
18,303,188.45
2014
16,607.50
7,007.50
9,600.00
0.00
0.00
0.00
0.00
2013
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2014
32,540,506.43
6,498,577.84
26,041,928.59
0.00
15,533,156.41
1,582,730.80
13,621,728.72
2013
44,493,143.01
8,096,262.65
36,396,880.36
0.00
19,950,964.02
1,600,092.05
18,303,188.45
0.00
0.00
0.00
0.00
0.00
0.00
328,696.89
48,057,055.34
47,683.52
64,444,107.03
0.00
16,607.50
0.00
0.00
328,696.89
48,073,662.84
47,683.52
64,444,107.03
4 - Investments
4.1 – Investment properties
Amounts in €k
Changes in the year in Investment properties
2014
2013
+
88,719
78,165
+
12,209
10,554
5,036
5,222
7,173
5,332
write-backs
revaluations
other changes
-
780
780
other changes
100,148
88,719
Depreciation:
Opening book value
+
17,661
16,603
+
3,715
1,189
1,485
1,189
other changes
2,230
-
for: disposals
236
131
236
other changes
131
21,140
17,661
Book value (a - b)
79,008
71,058
Fair value
197,188
174,052
An increase net of depreciation of €7,950 thousand was recorded for this item compared to last year,
with the item now amounting to 3.0% of total investments. The rise is mainly attributable to progress
88
EXPLANATORY NOTES
made on work for the part of the building designated for third-party use in the new Le Albere complex,
and to the completion of work on the extension of the residential-use building located in Piazza Silvio
Pellico in Trento and to the acquisition of two properties designated for third party business use. The
acquisitions related to a property located in Tione (in the Province of Trento) for €1,627 thousand and to
a property located in Verona (in the Veneto region) for €473 thousand.
The “Other changes” relating to increases for the year are mainly attributable to changes in designated
use, from own business use to third-party business use, resulting from the Group’s Real Estate
reorganisation.
The decreases in the year are instead attributable to the disposal of four properties designated for third
party business use, located in Ferrara, Forlì (both in the Emilia-Romagna region) and in Malè and Tione
(both in the Province of Trento).
As for real estate assets recorded under tangible assets, the current (market) value of land and buildings
has been determined on the basis of valuation reports commissioned to qualified, independent third
parties, updated in February 2011 and thereafter.
No assets in this category are leased.
89
EXPLANATORY NOTES
Financial Assets
Details on financial assets are shown in the table below.
Details of financial assets
2014
Equity securities and derivatives valued at cost
Equity securities at fair value
of which listed securities
Debt securities
UCITS/Fund units
Loans and receivables from bank customers
Interbank loans and receivables
Deposits held by ceding companies
Financial asset components of insurance contracts
Other loans and receivables
Non-hedging derivatives
Hedging derivatives
Total
0.00
0.00
0.00
461,438,843.76
451,971,123.31
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
461,438,843.76
2013
0.00
0.00
0.00
512,391,168.15
499,787,126.85
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
512,391,168.15
2014
2013
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13,175,369.86
12,104,350.26
0.00
0.00
0.00
0.00
0.00
0.00
13,175,369.86 12,104,350.26
2014
2013
1,731,874.84
2,146,640.24
51,602,180.96
49,167,308.37
30,293,730.49
25,347,381.39
1,505,515,430.10
1,090,768,055.54
1,437,263,495.41
1,055,972,386.69
84,251,616.98
57,033,490.09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,643,101,102.88 1,199,115,494.24
No reclassifications between financial asset categories have been made during the year.
90
Financial assets held for trading
2014
2013
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Financial assets designated at
fair value through profit or loss
2014
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8,593,016.43
8,593,016.43
78,313,491.39
78,313,491.39
367,551,774.92
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,453,838.30
460,912,121.04
2013
Total book value
2014
0.00
1,731,874.84
5,061,043.65
60,195,197.39
5,061,043.65
38,886,746.92
22,998,476.34
2,045,267,765.25
22,998,476.34
1,967,548,110.11
340,580,259.75
451,803,391.90
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13,175,369.86
0.00
0.00
0.00
0.00
17,124,741.13
6,453,838.30
385,764,520.87 2,578,627,437.54
2013
2,146,640.24
54,228,352.02
30,408,425.04
1,626,157,700.03
1,578,757,989.88
397,613,749.84
0.00
0.00
0.00
0.00
12,104,350.26
0.00
0.00
17,124,741.13
2,109,375,533.52
EXPLANATORY NOTES
4.3 – Investments held to maturity
Investments held to maturity are those which are non-derivative financial assets with fixed or
determinable payments and a fixed maturity which the Group intends and is able to hold to maturity.
Investments in this category recorded a decrease of €50,952 thousand compared to last year and now
amount to 17.4% of total investments.
The decrease (of 9.9%) is mainly due to the redemption of bonds which have matured.
The assets categorised under this item, mainly comprising listed debt securities, are valued at amortised
cost using the effective interest method.
4.4 – Loans and receivables
This item recorded an increase of €1,071 thousand compared to the previous year and amounts to 0.5%
of total investments.
The following table shows the composition of the Loans and Receivables item.
Amounts in €k
Due within 12
months
Description
Due in over 12
months
Loans on life policies
527
Loans to employees
325
582
1,792
9,949
2,644
10,531
Other: receivables due from and
loans to Agents
TOTAL
4.5 – Available for sale financial assets
This item recorded an increase of €443,986 thousand compared to the previous year and now amounts to
61.8% of total investments.
The balance of gains and losses on the valuation of available for sale financial assets is recognised in
Shareholders’ Equity, net of related deferred taxes and the portion of the shadow accounting provision
charged to Shareholders’ Equity. Any impairment losses are recognised in the Income Statement.
Following the performance of the impairment test on available for sale financial assets, as required under
IAS 39, impairment losses of €2,132 thousand were recorded.
The impairment recorded on the equity portfolio has been calculated on the basis of an assessment of the
durability or significance of losses incurred as of the end of the year, which in 2014 amounted to €2,132
thousand, of which €258 thousand was recorded on 30th June 2014 and a further €1,874 thousand on
31st December 2014.
No impairment losses were recorded for the bond portfolio in 2014.
91
EXPLANATORY NOTES
The following table shows the inventory of securities as at 31 st December 2014, detailing the relative
residual impairments.
Amounts in €k
Available for sale (AFS)
financial assets
Equities
Amortised cost
2014
2013
Impairments
2014
2013
Unrealised gains
2014
2013
Unrealised losses
2014
2013
Fair Value
2014
2013
54,171
51,353
-5,725
-6,573
5,799
7,204
-911
-670
53,334
51,314
Bonds
1,371,283
1,066,429
-351
-1,833
137,272
31,791
-2,688
-5,619
1,505,516
1,090,768
Other
81,942
54,030
-379
-207
5,034
4,049
-2,346
-839
84,251
57,033
1,507,396 1,171,812
-6,455
-8,613
148,105
43,044
-5,945
TOTAL
-7,128 1,643,101 1,199,115
The amount of €6,455 thousand refers to impairments recognised in previous years on securities still in
the portfolio as at 31st December 2014.
4.6 – Financial assets at fair value through profit or loss
This item recorded an increase of €75,148 thousand compared to the previous year and now amounts to
17.3% of total investments; it mainly consists of investment contracts for which the investment risk is
borne by Policyholders.
The following table shows the assets and liabilities concerned.
Details of the assets and liabilities relating to contracts issued by insurance companies where investment risk is borne by
policyholders and from Pension Fund management
Services relating to Investment
Funds and Market Indices
Assets recorded in financial statements
Intra-group assets *
Total Assets
Financial liabilities recorded in financial statements
Technical provisions recorded in financial statements
Intra-group liabilities *
Total Liabilities
2014
14,789,200.78
0.00
14,789,200.78
14,596,359.16
0.00
0.00
14,596,359.16
Services relating to
Pension Fund management
2013
13,326,883.15
0.00
13,326,883.15
13,294,499.35
0.00
0.00
13,294,499.35
Total
2014
2013
2014
2013
446,122,920.26 372,437,637.72
460,912,121.04 385,764,520.87
0.00
0.00
0.00
0.00
446,122,920.26 372,437,637.72 460,912,121.04 385,764,520.87
446,122,920.26 372,437,637.72
460,719,279.42 385,732,137.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
446,122,920.26 372,437,637.72 460,719,279.42 385,732,137.07
* Assets and liabilities eliminated in the consolidation process
In relation to financial assets represented by securities of the categories detailed in items 4.3, 4.5 and
4.6 in the Assets section of the Balance Sheet, a reconciliation of the initial and final balances for the year
is provided in the table below. Purchase and sale activity is summarised, as are any impairment losses.
Amounts in €k
Asset classification
Balance at
31/12/2013
Acquisitions
and
subscriptions
Sales and
repayments/
redemptions
Other changes
Effective
Fair value
interest
Impairments
adjustments
adjustments
Held to maturity (HTM)
512,391
4,607
55,666
1,134
1,199,115
759,885
422,500
721
- Equities and Share Capital assets
- Collective investment undertakings
e.g. UCITS
51,314
71,423
65,597
57,033
50,259
22,163
- Fixed rate securities
Designated at fair value through
profit or loss
1,090,768
638,203
334,740
368,640
224,275
164,483
2,080,146
988,767
642,649
721
106,242
-2,132
-1,646
-2,160
-523
-354
108,411
382
25,663
Change in
accruals
Other
Balance at
31/12/2014
-1,027
461,439
1,770
1,643,101
53,334
84,252
1,770
1,505,515
364
454,459
1,107
2,558,999
Held for trading
TOTAL
92
1,855
131,905
-2,132
EXPLANATORY NOTES
A comparison between the carrying value at amortised cost and fair value for each category of financial
asset is provided.
Amounts in €k
Financial instrument
classification
Amortised cost
Fair Value
Held to maturity (HTM)
461,439
537,779
1,507,396
1,643,101
460,912
460,912
13,175
13,175
2,442,922
2,654,967
Financial instruments at fair value
through profit or loss
TOTAL
The fair value of the assets has been determined with reference to the last traded market price on an
active market or valuations provided by issuers or dealers for securities which are not listed on liquid
markets.
Unquoted equity instruments (and derivatives linked to them), which have been measured at cost in
accordance with IAS 39 as their fair value cannot be measured reliably, are exclusively accounted for by
shareholdings in companies. The aggregate carrying value of the companies is not particularly significant
in relation to the portfolio as a whole and their estimated fair value is not materially different from that of
their current carrying value.
As required under IFRS 7.12, it is also noted that no financial assets were reclassified from being
recognised at cost or at amortised cost rather than at fair value and/or vice versa.
In the following table, the details required under IFRS 7.27B(a) on the classification of financial assets
and liabilities according to fair value hierarchy levels are reported, as set out in IFRS 7.27A.
Assets and liabilities measured at fair value on a recurring and non-recurring basis: breakdown by fair value levels
Level 1
2014
1,534,701,963.64
Level 2
2013
2014
1,098,482,795.62
Level 3
2013
88,315,365.53
2014
78,292,970.90
Total
2013
20,083,773.71
2014
22,339,727.72
2013
1,643,101,102.88
1,199,115,494.24
Financial assets at fair value
-
460,912,121.04
385,764,520.87
1,995,614,084.68
1,484,247,316.49
-
-
-
-
-
460,912,121.04
385,764,520.87
2,104,013,223.92
1,584,880,015.11
Tangible assets
Intangible assets
Total assets measured at fair value on a recurring basis
88,315,365.53
78,292,970.90
20,083,773.71
22,339,727.72
Financial liabilities held for trading
Financial liabilities at fair value
-
Financial liabilities designated at fair
value through profit or loss
Total liabilities measured at fair value on a recurring basis
460,719,279.42
385,732,137.07
460,719,279.42
385,732,137.07
-
-
-
-
-
460,719,279.42
385,732,137.07
460,719,279.42
385,732,137.07
Assets and liabilities measured at fair value on a non-recurring basis
With reference to the assets and liabilities categorised within hierarchy level 3, the following table reports
the details required under IFRS 7.27B(c) relating to the reconciliation of initial balances with final
balances and details of the changes which occurred in the reference period.
“Repurchases” denote the decreases in financial liabilities not resulting from repayments.
93
EXPLANATORY NOTES
A significant majority of the financial assets categorised under level 2 of the fair value hierarchy is
composed of Closed-End Real Estate Funds and unlisted bonds, while almost all of the securities
categorised under level 3 are unlisted equities. Financial assets for which mark-to-market or mark-tomodel valuations were not available on the valuation date (i.e. the reporting date) have been recorded by
using external valuations provided by trading counterparties. Where such valuations were not present,
the instruments have been conservatively categorised under level 3.
Details of changes in Level 3 Assets and Liabilities measured at fair value on a recurring basis
Financial assets
Financial liabilities at fair value through
profit or loss
Available for
sale financial
assets
Opening balance
Investment
properties
Financial assets
Financial assets designated at fair
held for trading
value through
profit or loss
Tangible
assets
Intangible
assets
designated at fair
held for trading
value through profit
or loss
22,339,727.72
0.00
0.00
0.00
0.00
79,422.75
-70,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Other changes
0.00
0.00
0.00
-2,265,376.76
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Closing balance
20,083,773.71
0.00
0.00
0.00
0.00
Purchases/Issues
Sales/Repurchases
Reimbursements
Gains or losses recognised through profit or loss
- of which valuation gains/losses
Gains or losses recognised in
Other Comprehensive Income
Transfers to Level 3
Transfers to Other Levels
0.00
0.00
0.00
For additional disclosures relating to the inherent risks and their analysis, the reader is referred to the
“Risk Report”.
In the following table, details on assets and liabilities not measured at fair value are reported:
Assets and Liabilities not measured at fair value: breakdown by fair value levels
Fair value
Book value
2014
Assets
Investments in subsidiaries,
Tangible assets
Total assets
Level 1
2013
2014
528,065,443.59
Level 2
2013
2014
525,770,504.43
Level 3
2013
-
2014
-
Total
2013
2014
2013
461,438,843.76
512,391,168.15
9,713,599.22
12,604,041.44
537,779,042.81
538,374,545.87
13,175,369.86
12,104,350.26
13,175,369.86
12,104,350.26
13,175,369.86
12,104,350.26
79,007,936.91
71,058,475.51
197,187,773.84
174,051,583.15
197,187,773.84
57,773,859.97
61,095,627.74
611,396,010.50
656,649,621.66
528,065,443.59
525,770,504.43
-
-
174,051,583.15
64,137,996.16
81,782,996.16
64,137,996.16
81,782,996.16
284,214,739.08
280,542,971.01
812,280,182.67
806,313,475.44
Liabilities
-
-
The assets categorised under level 3 mainly comprise real estate assets and receivables relating to
compensation due from the agency network. With regards to real estate assets, it has been deemed
appropriate, on the basis of the analysis undertaken on the inputs used for valuation, and considering the
limited instances in which the inputs would be directly observable in active markets, to categorise all real
estate assets under level 3. Specifically, it is noted that the portion of assets not measured at fair value
which is categorised under level 3 makes up only 9.8% of the total fair value of (financial) investments
and real estate assets.
Receivables due from the agency network are carried at amortised cost and, considering their nature, this
value is deemed to amount to a reasonable approximation of their fair value.
94
EXPLANATORY NOTES
5 - Receivables
5.1 – 5.2 – Receivables arising from direct insurance operations; Receivables arising from reinsurance
transactions
The breakdown of items 5.1 and 5.2 is outlined in the following table, with any amounts expected to be
due or recovered beyond 12 months highlighted (with respect to receivables under these items
recognised in 2014, this amounted to nil):
Amounts in €k
2014
Receivable type
Due within 12
months
Due in over
12 months
2013
Total
Total
Premiums due from policyholders
37,649
37,649
30,090
Receivables due from insurance intermediaries
37,725
37,725
31,865
5,113
5,113
4,202
15,049
4,459
15,049
4,459
13,411
3,635
99,995
99,995
83,203
Receivables due from (insurance) companies: Current accounts
Receivables due from reinsurance companies
Amounts to be recovered from policyholders and third parties
TOTAL
5.3 – Other receivables
The following are highlighted as the most significant components of the “Other receivables” item, which
totals €21,474 thousand altogether: rent and guarantee deposit receivables of €170 thousand, advances
to employees and healthcare/sickness funds of €194 thousand and credits due from the tax authorities of
€17,832 thousand (of which €15,281 thousand are for advance taxes on collected premiums).
In addition, the item includes other receivables relating to credits from the Group’s TFR (Trattamento di
Fine Rapporto - Employee Severance Indemnity) treasury account with INPS (the National Social Security
Agency) for €745 thousand, receivables relating to the “PensPlan Plurifonds” Open Ended Pension Fund of
€412 thousand for commissions, and of €690 thousand for settlements, receivables of €613 thousand due
from clients and receivables of €224 thousand in respect of pre-paid expenses on invoices from suppliers.
6 – Other assets
6.3 – 6.4 – Current and deferred tax assets
Deferred and current tax assets at the end of the year amounted to €53,196 thousand, registering a
decrease of 4.2% compared to the previous year.
Deferred tax assets are mainly comprised of the amounts of income taxes recoverable in future years,
recognised in relation to deductible temporary differences on eligible expenses.
Current tax assets are mainly comprised of receivables due from the tax authorities, which also include
advance taxes paid in relation to Life insurance provisions.
95
EXPLANATORY NOTES
Details on the amount relating to deferred taxes are shown in the following table:
Amounts in €k
Breakdown of deferred taxes by item of recognition (Reporting Year 2014)
IRAP
IRES
Consolidated (Corporate (Regional Tax
Basis
Income Tax) on Production
Activities)
Change in long-term claims provisions
-18,278
-5,027
Losses on receivables
-6,638
-1,577
-329
Bad debt provisions on receivables due from policyholders
-1,123
-234
-51
-45
-12
Provision for CCNL (National Collective Bargaining
Agreements) renewal
-136
-37
Acquisition commissions
-323
-89
Change in long-term claims provisions
8,686
2,389
Losses on receivables
1,059
291
Acquisition commissions
231
64
Bad debt provision for receivables from policyholders - IRES
307
84
Bad debt provision for receivables from policyholders - IRAP
138
Production fund*
60
7
Production fund*
50
14
Other items
43
12
1
-2,054
-565
-130
-135
-37
120
33
8
IAS Financial Assets
Personnel costs
Recalculation of tax rates
Additional provision and equalisation provision
1,914
526
114
IAS Amortisation/Depreciation
7,665
2,108
363
-2,057
43
-7,578
-510
5,521
553
-2,057
43
Total deferred taxes
TOTAL
-2,014
The deferred taxes shown above refer to the following movements:
Deferred tax assets - recognition
Deferred tax assets - use
Total deferred tax assets
Deferred tax liabilities - use
0
0
Total deferred tax liabilities
0
0
Total deferred taxes
-2,014
0
-2,014
* Relates to production incentive programmes for intermediaries
96
EXPLANATORY NOTES
7 – Cash and cash equivalents
This item amounts to €119,796 thousand and consists of cash on hand and bank/postal deposits payable
on demand.
The Statement of Cash Flow, governed by IAS 7, shows the cash flows which occurred during the year.
The details provide the means for verification of the Group’s ability to generate sufficient cash and other
liquid cash equivalents.
Cash flows arising from operations are mainly associated with revenue-producing activities and are
shown using the indirect method; under this method, profit (or loss) for the financial year is adjusted for
the effects of changes in inventories and in receivables and payables generated by operating activities
undertaken in the reporting period, of changes in non-cash items and of all other items for which
monetary effects constitute cash flows arising from investment and financing activities.
Cash flows arising from investment activities measure the costs incurred with the objective of acquiring
productive resources for the purpose of generating future income and new cash flows from operating
activities.
Cash flows arising from financing activities refer to changes in the size and composition of Shareholders’
Equity and loans obtained.
97
EXPLANATORY NOTES
SHAREHOLDERS’ EQUITY AND LIABILITIES
1 – Shareholders’ Equity
The following table reports changes in Shareholders’ Equity.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Balance
at 31-12-2012
-4,355,629.90
0.00 11,261,952.86
127,643.87
212,136,889.30
0.00 18,282,198.31
127,643.87
37,398,076.93
1,309,030.01
-151,496.23
38,555,610.71
Shareholders'
Equity
attributable to
non-controlling
interests
Total
Allocations
Adjustments due to
reclassifications
to the
Income Statement
79,704,391.95
0.00
0.00
123,102,468.78
0.00
5,790,720.56
3,539,308.01
Share capital
Shareholders'
Equity
attributable to
the Group
Change in
closing
balances
Capital reserves
(Treasury shares)
250,692,500.01
Transfers
Changes in
ownership
interests
5,570,878.34
Balance
at 31-12-2013
Change in
closing
balances
Allocations
Adjustments due to
reclassifications
to the
Income Statement
Transfers
Changes in
ownership
interests
Balance
at 31-12-2014
85,275,270.29
0.00
0.00
128,907,465.79
0.00
1,435,090.66
14,928,904.74
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,111,660.60
0.00
0.00
1,415,506.16
0.00
15,955,600.87
39,886,615.51
-2,162,556.73
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 230,546,731.48
0.00
63,369,383.14
-2,162,556.73
0.00
1,264,138.06
38,662,214.99
0.00
484,866.19
0.00
39,147,081.18
0.00
-777,942.41
2,616,388.25
-521,783.19
531,087.60
1,943,108.83
0.00
0.00
2,229,406.55
11,474,854.30
-778,109.31
0.00
0.00
2,760,494.15
12,639,853.82
0.00
3,102,583.90
-521,783.19
0.00
0.00
41,136,411.42
0.00
14,189,127.04
-778,109.31
0.00
0.00
54,547,429.15
0.00 21,384,782.21
-394,139.32
0.00
0.00 271,683,142.90
0.00
77,558,510.18
-2,940,666.04
0.00
0.00
346,300,987.04
5,804,997.01
0.00
98
91,386,930.89
0.00
0.00
130,322,971.95
0.00
17,390,691.53
52,652,963.52
0.00
291,753,557.89
EXPLANATORY NOTES
The following table reports the reconciliation between consolidated Shareholders’ Equity and the
corresponding items shown in the Parent Company’s and Subsidiaries’ individual financial statements, in
compliance with Italian GAAP.
Amounts in €k
excluding the result for the
period (with paid-up capital)
Result for the
period
Parent Company
270,452
9,443
Subsidiary Companies
311,656
11,569
Revaluation reserves - Parent company Real Estate
-67,273
Revaluation reserves - Subsidiary companies' Real Estate
Eliminations of subsidiaries' net (shareholders') equities
-12,228
-311,792
Consolidation reserves
24,613
Subsidiary disposal reserve
3,236
FTA (first time adoption ) reserve
-1,648
53,618
-965
IAS/IFRS retained earnings
4,694
Shareholders' Equity attributable to the Group
274,363
Shareholders' Equity attributable to Non-controlling interests
51,787
Impairment net of shadow accounting
206
Adjustments for application of IAS/IFRS Accounting Standards
Consolidated Shareholders' Equity
-1,067
326,150
20,151
1.1 – Shareholders’ Equity attributable to the Group
As at 31st December 2014, Share Capital consisted of the fully paid-up guarantee fund of ITAS Mutua
(the Parent Company) and amounted to €91,387 thousand.
Retained earnings and other equity reserves consist of:
•
Revaluation reserves attributable to the Group of €39,558 thousand;
•
Consolidation reserve attributable to the Group of €24,613 thousand;
•
Initial (”FTA”) application (of IAS/IFRS) reserve attributable to the Group of €-1,648 thousand;
•
Other reserves made up of profit of €70,697 thousand;
•
Retained earnings of €-2,897 thousand.
The “Gains or losses on available for sale financial assets” item, as a component of Shareholders’ Equity
attributable to the Group, includes gains on available for sale financial assets (AFS reserve) of €53,618
thousand.
The item “Other gains or losses recognised directly in equity” includes actuarial losses arising from the
valuation under IAS 19 (revised), for a total value of €-965 thousand.
1.2 – Shareholders’ Equity attributable to Non-controlling interests
The “Share Capital and equity reserves attributable to non-controlling interests” item comprises:

Capital and consolidation reserves attributable to non-controlling interests of €34,939 thousand;

Initial application (of IAS/IFRS) reserve attributable to non-controlling interests of €568 thousand;

Other reserves made up of profit of €3,640 thousand.
99
EXPLANATORY NOTES
The “Gains or losses recognised directly in equity” item, as a component of Shareholders’ Equity
attributable to non-controlling interests, includes gains on available for sale financial assets of €12,739
thousand and actuarial losses arising from the valuation under IAS 19 (revised) of €99 thousand.
2 - Provisions
The following tables show the composition of and associated changes in the “Provisions” item.
Amounts in €k
Description
Provisions relating to taxation matters
Other provisions
Total
Balance at
31/12/2013
Increases
Balance at
31/12/2014
Decreases
637
47
665
19
1,945
430
250
2,125
2,582
477
915
2,144
The “Provisions relating to taxation matters” item mainly includes provisions for covering future expenses
arising from penalties and administrative or tax investigations. In the course of the year, provisions of
€47 thousand were allocated for covering risks foreseeable on the balance sheet date. The utilisations
refer in their entirety to withdrawals for the positive resolution of Notices of (Tax) Assessment received in
previous reporting years.
“Other provisions” include provisions made for covering future expenses and losses, the exact amount or
timing of which are uncertain. The item mainly includes liabilities for charges arising from liberalisations
(Law 40/2007), charges arising from uncertainty as to the interpretation of the rules which govern the
regulation of capital redemption policies (Law 166/2008), and potential liabilities arising from sales
incentive programmes.
During the year, allocations were made for provisions for the renewal of employee CCNL agreements
(Contratto Collettivo Nazionale di Lavoro, i.e. national collective bargaining agreements) and for
production costs (i.e. costs relating to the acquisition of insurance contracts, whether for new business or
customer retention), while the utilisations refer to withdrawals for litigation outcomes in favour of the
Group which relate to proceedings initiated in previous years, as well as for liabilities relating to
production costs.
Details on increases:
Amounts in €k
Description
Other provisions
Total
For amounts
discounted to reflect
the passing of time
For provisions
For changes in
the discount rate
Total
47
47
430
430
477
477
Details on decreases:
100
EXPLANATORY NOTES
Amounts in €k
Description
Used in the year
For transfers
Total
665
665
Other provisions
250
250
915
915
Total
3 – Technical Provisions
Details of technical provisions
Direct business
2014
Non-Life provisions
Premium provision
Claims provision
Other provisions
of which provisions made following liability adequacy verification
Life provisions
Technical provisions where investment risk is borne by policyholders and
arising from Pension Fund management
Other provisions
of which deferred liabilities to policyholders
Total Technical Provisions
Indirect business
2013
2014
2013
Total book value
2014
2013
710,608,737.71
181,949,961.88
527,818,788.32
839,987.51
0.00
1,417,117,113.75
7,892,116.71
1,365,491,179.83
689,782,143.25
181,223,975.23
507,515,971.75
1,042,196.27
0.00
1,076,713,107.64
9,158,944.62
1,057,989,847.55
815,223.22
50,505.99
764,717.23
0.00
0.00
0.00
0.00
0.00
1,112,949.44
711,423,960.93
690,895,092.69
52,076.11
182,000,467.87
181,276,051.34
1,060,873.33
528,583,505.55
508,576,845.08
0.00
839,987.51
1,042,196.27
0.00
0.00
0.00
0.00 1,417,117,113.75 1,076,713,107.64
0.00
7,892,116.71
9,158,944.62
0.00
1,365,491,179.83
1,057,989,847.55
0.00
43,733,817.21
0.00
36,839,501.24
2,127,725,851.46
0.00
9,564,315.47
0.00
3,953,750.48
1,766,495,250.89
0.00
0.00
0.00
0.00
815,223.22
0.00
0.00
0.00
0.00
43,733,817.21
9,564,315.47
0.00
0.00
0.00
0.00
36,839,501.24
3,953,750.48
1,112,949.44 2,128,541,074.68 1,767,608,200.33
The “Other provisions” item for the Non-Life segment consists of the ageing reserve, which totals €215
thousand and the profit participation and reversal reserves, which total €625 thousand. In the Life
segment, the “Other provisions” item consists of: profit participation and reversal reserves of €23
thousand, reserve for future expenses (net of operating expenses relating to investment contracts) of
€6,871 thousand and the reserve for deferred policyholders’ liabilities (shadow accounting) of €36,840
thousand.
101
EXPLANATORY NOTES
4 – Financial Liabilities
The following table reports details on financial liabilities.
Details of financial liabilities
(figure s to the ne a re s t Euro c e nt)
held for trading
2014
Financial liabilities at
2013
2014
2013
2014
2013
Total book value
2014
2013
Equity financial instruments
Subordinated liabilities
Liabilities from financial contracts issued by insurance companies from:
Contracts for which investment risk is borne by policyholders
Other contracts
Deposits received from reinsurers
Financial liability components of insurance contracts
Debt securities issued
Payables to bank customers
Interbank payables
Other loans obtained
Hedging derivatives
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
460,719,279.42
14,596,359.16
446,122,920.26
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
385,732,137.07
13,294,499.35
372,437,637.72
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12,565,212.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17,278,133.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
460,719,279.42
14,596,359.16
446,122,920.26
0.00
12,565,212.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
385,732,137.07
13,294,499.35
372,437,637.72
0.00
17,278,133.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total
0.00
0.00
460,719,279.42
385,732,137.07
12,565,212.86
17,278,133.01
473,284,492.28
403,010,270.08
102
EXPLANATORY NOTES
4.1 – Financial liabilities at fair value through profit or loss
Amounts in €k
2014
Due within 12
months
TOTAL
2013
Due in over
12 months
Total
Total
460,719
460,719
385,732
12,565
12,565
17,278
473,284
473,284
403,010
The “Financial liabilities at fair value through profit or loss” item consists of liabilities relating to
(investment) contracts for which the financial risk is borne by policyholders.
4.2 – Other financial liabilities
The following table shows the composition of and changes in other financial liabilities:
Amounts in €k
Reinsurance
deposits
Balance as at 31/12/2013
17,278
Deposits - mathematical reserves
-64,202
Repayments - mathematical reserves
-59,489
Balance as at 31/12/2014
12,565
5 – Payables
5.1 – 5.2 – Payables arising from direct insurance operations and reinsurance transactions
The composition of this item is shown in the following table, along with information on any amounts
expected to be due beyond 12 months (for those recognised in 2014, this amounted to nil):
Amounts in €k
2014
Payable category
Due within 12
months
From direct insurance operations:
to insurance intermediaries (agents, brokers, etc.)
to insurance companies (current accounts)
other payables arising from direct insurance
operations
From reinsurance transactions
TOTAL
Due in over 12
months
2013
Total
Total
11,222
11,222
8,827
9,297
9,297
5,832
766
766
1,360
1,159
1,159
1,635
5,208
5,208
5,043
16,430
16,430
13,870
5.3 – Other payables
This item, amounting to €44,145 thousand, registered a decrease of €707 thousand compared to last
year and is mainly comprised of payables for: subscriptions to Fondo Hi Real Estate (a Closed-End Real
Estate Fund) (unpaid called-up capital) of €600 thousand, payables to financing members of €399
thousand, payables of €6,109 thousand due to suppliers, payables of €10,677 thousand relating to taxes
103
EXPLANATORY NOTES
payable by policyholders, payables totalling €1,342 thousand due to social security institutions, payables
due to or on behalf of employees (including TFR/Employee Severance Indemnity) of €9,842 thousand,
payables due to the tax authorities of €11,308 thousand, payables of €1,395 thousand due in respect of
substitute tax pursuant to Law 23/12/2014 no. 190 relating to the Open-Ended Pension Fund “PensPlan
Plurifonds” and payables of €582 thousand for payments to the Open-Ended Pension Fund “PensPlan
Plurifonds” in respect of contributions to be reconciled.
6 – Other liabilities
6.2 - 6.3 - Deferred and current tax liabilities
Details on deferred and current tax liabilities can be found under point 3 of the Item named “Taxes” in
6.4 – Miscellaneous liabilities
This item mainly includes commissions of €6,695 thousand on premiums under collection and liabilities
relating to long-term Defined Benefits for employees totalling €2,894 thousand.
For the actuarial assumptions used in order to calculate the latter, the reader is referred to Part D
“Valuation Methods - Actuarial valuation of TFR (Employee Severance Indemnity), seniority bonuses and
healthcare services”.
A table providing the breakdown of Long-Term Defined Benefits for employees is given below:
Amounts in €k
Description
2014
2013
Change
TFR (Employee Severance Indemnity)
4,191
3,859
332
Healthcare services
1,430
1,190
240
Seniority bonuses
1,464
1,280
184
7,086
6,329
757
Total
The related components of the year-on-year change are, in turn, broken down as follows:
Amounts in €k
Description
TFR (Employee
Severance
Indemnity)
Balance at 31/12/2013
Cost for TFR provisions - Local GAAP
TFR Utilisations - Local GAAP
Provision for actuarial valuation IAS 19
Balance at 31/12/2014
104
Healthcare
services
Seniority
bonuses
3,859
1,190
1,280
0
0
0
-227
-75
-76
560
315
259
4,191
1,430
1,464
EXPLANATORY NOTES
The following table provides details on the other items in the Statement of Comprehensive Income (i.e. other comprehensive income), along with information
in respect of changes to their classification (IAS 1.94) and on taxes (IAS 1.90).
Details of other components of the Statement of Comprehensive Income
Allocations
Total FY 2014
Other income components without reclassification to the Income Statement
Provisions arising from changes in Shareholders' Equity of investee companies
Revaluation reserve of intangible assets
Revaluation reserve of tangible assets
Income and charges relating to non-current assets or disposal groups classified as held for sale
Other items
Other income components with reclassification to the Income Statement
Gains or losses on hedging instruments of net investments in a foreign operation
Other items
TOTAL OF OTHER COMPONENTS OF THE STATEMENT OF COMPREHENSIVE INCOME
-557,101.74
Total FY 2013
Adjustments due to
reclassification to the
Income Statement
Total FY 2014
Total FY 2013
317,790.18
-557,101.74
317,790.18
51,918,571.55
13,560,550.93
-2,940,666.04
-394,139.32
51,918,571.55
13,560,550.93
-2,940,666.04
-394,139.32
51,361,469.81
13,878,341.11
-2,940,666.04
-394,139.32
105
Other changes
Total FY 2014
Total changes
Total FY 2013
Total FY 2014
Total FY 2013
Total FY 2014
Total FY 2013
120,541.12
at 31-12-2014
-557,101.74
at 31-12-2013
0.00
-557,101.74
-557,101.74
317,790.18
-211,314.45
120,541.12
-557,101.74
317,790.18
0.00
0.00
48,977,905.51
13,166,411.61
24,530,241.00
6,445,699.58
65,849,919.08
16,554,223.39
48,977,905.51
13,166,411.61
24,530,241.00
6,445,699.58
65,849,919.08
16,554,223.39
48,420,803.77
13,484,201.79
24,318,926.55
6,566,240.70
65,292,817.34
16,872,013.57
0.00
-211,314.45
Balance
0.00
0.00
317,790.18
Taxes
317,790.18
EXPLANATORY NOTES
The following table shows the main items in the Income Statement, as split between the Non-Life and Life business segments.
Income Statement by business segment
Non-Life Segment
1.1
Net premiums
Life Segment
FY 2014
FY 2013
FY 2014
FY 2013
Total
FY 2014
FY 2013
459,911,724.62
438,144,898.88
353,800,070.78
155,854,125.32
0.00
0.00
813,711,795.40
FY 2014
593,999,024.20
FY 2013
1.1.1
Gross earned premiums
486,333,107.50
457,781,176.64
355,532,375.53
157,834,742.26
0.00
0.00
841,865,483.03
615,615,918.90
1.1.2
-26,421,382.88
-19,636,277.76
-1,732,304.75
-1,980,616.94
0.00
0.00
-28,153,687.63
-21,616,894.70
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11,209,520.47
8,156,140.85
0.00
0.00
11,209,520.47
8,156,140.85
0.00
0.00
134,967.44
84,354.65
-134,967.44
-84,354.65
0.00
0.00
34,676,373.37
32,944,420.85
51,438,729.47
44,835,427.28
0.00
0.00
86,115,102.84
77,779,848.13
1.2
1.4
Commission income
Income and charges from financial instruments at fair value through
profit or loss
1.5
1.6
Other income
1
2.1
1.3
2.1.1
2.1.2
Reinsurers' share
4,988,182.96
5,186,007.14
5,571,216.73
5,621,685.01
-2,240,638.39
-3,260,906.75
8,318,761.30
7,546,785.40
499,576,280.95
476,275,326.87
422,154,504.89
214,551,733.11
-2,375,605.83
-3,345,261.40
919,355,180.01
687,481,798.58
-317,488,212.30
-328,146,942.60
-380,932,644.68
-186,743,506.13
52,253.28
0.00
-698,368,603.70
-514,890,448.73
-322,487,775.57
-333,215,963.88
-381,972,298.50
-188,387,096.74
52,253.28
0.00
-704,407,820.79
-521,603,060.62
4,999,563.27
5,069,021.28
1,039,653.82
1,643,590.61
0.00
0.00
6,039,217.09
6,712,611.89
0.00
2.2
Commission expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.3
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.4
-7,025,484.92
-6,686,230.67
-3,172,083.21
-3,317,964.80
0.00
0.00
-10,197,568.13
-10,004,195.47
2.5
Operating expenses
-137,623,615.92
-124,700,415.94
-14,521,879.63
-12,824,978.02
2,188,385.11
3,260,906.75
-149,957,110.44
-134,264,487.21
2.6
Other costs
-12,855,549.00
-10,008,805.90
-13,462,089.23
-10,506,363.99
0.00
0.00
-26,317,638.23
-20,515,169.89
2
TOTAL EXPENSES
-469,542,395.11 -412,088,696.75 -213,392,812.94
2,240,638.39
3,260,906.75
-134,967.44
-84,354.65
-474,992,862.14
24,583,418.81
6,732,931.76
106
10,065,808.14
1,158,920.17
-884,840,920.50 -679,674,301.30
34,514,259.51
7,807,497.28
EXPLANATORY NOTES
INFORMATION ON THE INCOME STATEMENT
The following table provides details on the technical items which pertain to contracts falling under the scope of IFRS 4, showing the split between the Non-Life
and Life business segments.
Details on technical insurance items
FY 2014
Gross Amount
Reinsurers' share
FY 2013
Net Amount
Gross Amount
Reinsurers' share
Net Amount
Non-Life business
NET PREMIUMS
a Premiums written
b Change in premium provision
NET CHARGES RELATING TO CLAIMS
a Amounts paid
b Change in claims provision
c Change in recoveries
d Change in other technical provisions
486,333,107.50
487,032,377.46
-699,269.96
-322,487,775.57
-311,105,671.66
-20,006,660.47
8,447,494.37
177,062.19
-26,421,382.88
-24,823,706.22
-1,597,676.66
4,999,563.27
15,354,788.35
-10,354,951.77
-273.31
0.00
459,911,724.62
462,208,671.24
-2,296,946.62
-317,488,212.30
-295,750,883.31
-30,361,612.24
8,447,221.06
177,062.19
457,781,176.64
463,267,102.08
-5,485,925.44
-333,215,963.88
-321,580,796.20
-19,534,237.93
7,899,070.25
0.00
-19,636,277.76
-22,953,494.53
3,317,216.77
5,069,021.28
21,252,821.34
-16,183,800.06
0.00
0.00
438,144,898.88
440,313,607.55
-2,168,708.67
-328,146,942.60
-300,327,974.86
-35,718,037.99
7,899,070.25
0.00
355,532,375.53
-381,972,298.50
-74,405,506.15
1,266,827.91
-307,672,956.39
-1,732,304.75
1,039,653.82
5,552,127.87
-17,361.25
-4,502,666.58
353,800,070.78
-380,932,644.68
-68,853,378.28
1,249,466.66
-312,175,622.97
157,834,742.26
-188,387,096.74
-89,160,243.93
-1,255,815.52
-97,874,223.09
-1,980,616.94
1,643,590.61
6,709,114.82
-155,480.19
-4,924,745.13
155,854,125.32
-186,743,506.13
-82,451,129.11
-1,411,295.71
-102,798,968.22
0.00
-1,160,663.87
0.00
7,553.78
0.00
-1,153,110.09
0.00
-96,814.20
0.00
14,701.11
0.00
-82,113.09
Life business
NET PREMIUMS
a Amounts paid
b Change in provision for sums to be paid
c Change in mathematical reserves
Change in technical provisions where investment risk is borne by
d
e Change in other technical provisions
107
EXPLANATORY NOTES
1 – Revenues and other income
1.1 – Net premiums
A breakdown between the Non-Life and Life segments of the Group’s net premiums is provided below.
Amounts in thousands of Euros (€k)
Gross amounts for the year
2014
2014
2013
486,333
457,781
26,422
19,636
459,911
438,145
Premiums written
487,032
463,267
24,824
22,953
462,208
440,314
-699
-5,486
1,598
-3,317
-2,297
-2,169
355,532
157,835
1,732
1,981
353,800
155,854
841,865
615,616
28,154
21,617
813,711
593,999
Life Premiums
Total
2014
Net Premiums
Non-Life Premiums
Change in premium provision
2013
Amounts for the year
ceded to reinsurers
2013
The following table shows the breakdown for Gross Written Premiums by class/line of business.
Amounts in €k
Direct
Premiums
Class/Line of Business
Indirect
Premiums
Total
Accident & Injury and Sickness (Class 1 & 2)
49,950
49,950
Land vehicle hulls (Class 3)
34,925
34,925
1,620
1,620
Marine, Aviation and Transport (Classes 4, 5, 6, 7, 11
& 12)
Fire and Other Damage to Property (Classes 8 & 9)
107,177
Land Motor Vehicles TPL (Class 10)
215,874
General TPL (Class 13)
55,953
35
107,212
215,874
140
56,093
Credit and Suretyship (Classes 14 & 15)
4,496
4,496
Miscellaneous Financial Loss (Class 16)
5,069
5,069
Legal Expenses/Protection (Class 17)
8,343
8,343
Assistance (Class 18)
3,450
3,450
Total Non-Life Classes
486,857
175
487,032
Insurance on length of human life (Class I)
354,687
354,687
Permanent healthcare insurance (Class IV)
47
47
798
798
Total Life Classes
355,532
355,532
Total
842,389
Capital redemption policies (Class V)
175
842,564
1.2 - Commission income
This item, which should report loading on certain types of direct investment contracts (DIR) issued by the
Life business which do not fall under the scope of IFRS 4, does not include any amounts for this reporting
year.
108
EXPLANATORY NOTES
1.3 – 1.5 – 2.4 – Income and charges from financial instruments and investments
Income and charges from financial instruments and investments
Valuation gains
Interest
Result from investments
a From investment properties
b
From investments in subsidiaries, associates and joint ventures
c From investments held to maturity
d
From loans and receivables
e From available for sale financial assets
f
From financial assets held for trading
g
From financial assets at fair value through profit or loss
Result from receivables
Result from cash and cash equivalents
Result from financial liabilities
a Arising from financial liabilities held for trading
b
Arising from financial liabilities at fair value through profit or loss
c Arising from other financial liabilities
Result from payables
Total
Other income
Other expenses
Gains realised
Losses realised
Total realised
income and
expenses
Gains from
(re)valuation
Valuation losses
Impairment
reversals
Losses from
(re)valuation
Impairments
Total unrealised
Total income and Total income and
income and
expenses FY 2014 expenses FY 2013
expenses
61,168,004.02
9,576,035.69
-1,380,347.02
20,555,721.82
-4,825,998.34
85,093,416.17
29,036,260.62
587,793.23
-459,599.76
-4,206,278.08
24,958,176.01
110,051,592.18
0.00
2,618,669.99
-971,772.58
1,305,000.00
-543,271.62
2,408,625.79
0.00
0.00
0.00
-1,486,278.33
-1,486,278.33
922,347.46
98,062,326.01
-1,902,274.70
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
21,137,898.17
3,580,907.11
-3.75
0.00
0.00
24,718,801.53
0.00
0.00
0.00
0.00
0.00
24,718,801.53
27,932,217.14
340,556.36
6,636.15
0.00
0.00
0.00
347,192.51
0.00
0.00
0.00
0.00
0.00
347,192.51
320,112.32
38,895,478.18
2,861,387.93
-407,008.19
14,068,580.48
-3,418,300.02
52,000,138.38
0.00
587,793.23
0.00
-2,719,999.75
-2,132,206.52
49,867,931.86
41,176,980.61
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
794,071.31
508,434.51
-1,562.50
5,182,141.34
-864,426.70
5,618,657.96
29,036,260.62
0.00
-459,599.76
0.00
28,576,660.86
34,195,318.82
30,535,290.64
0.00
712,195.24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
712,195.24
0.00
0.00
0.00
0.00
0.00
712,195.24
1,099,881.04
-650,933.89
0.00
0.00
0.00
0.00
-650,933.89
0.00
0.00
-22,985,798.35
0.00
-22,985,798.35
-23,636,732.24
-23,230,413.54
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-22,985,798.35
0.00
-22,985,798.35
-22,985,798.35
-22,379,149.79
-650,933.89
0.00
0.00
0.00
0.00
-650,933.89
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-650,933.89
0.00
-851,263.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
61,229,265.37
9,576,035.69
-1,380,347.02
20,555,721.82
-4,825,998.34
85,154,677.52
29,036,260.62
587,793.23
-23,445,398.11
-4,206,278.08
1,972,377.66
87,127,055.18
75,931,793.51
109
EXPLANATORY NOTES
1.6 – Other income
Amounts in €k
Non-Life segment
2014
Gains realised on tangible assets
2013
2014
6
2
Provision write-backs
256
938
Expense recoveries
241
419
Other technical income
765
12
Interest on other receivables
Other income
Total
Total in
Financial Statements
Life segment
2013
2014
2013
6
2
16
256
954
32
1
273
420
487
5,151
4,783
5,916
5,270
11
37
52
49
63
1,676
625
143
213
1,819
838
2,956
2,482
5,363
5,065
8,319
7,547
The “Other technical income” item, totalling €5,916 thousand, is predominantly attributable to the Life
segment, mainly consisting of commissions paid to the managing entity of the Open-Ended Pension Fund
amounting to €5,074 thousand, with almost half of the residual attributable to the recovery of doubtful
accounts (written-down receivables) from policyholders made last year (of €409 thousand).
2 – Expenses
2.1 – Net charges relating to claims
Details on claims-related charges are reported in the earlier table labelled “details on technical insurance
items”.
In the following table, incurred claims are broken down by segment (Non-Life and Life businesses), net of
intra-group eliminations.
110
EXPLANATORY NOTES
Amounts in €k
Direct
Business
Class/Line of Business
Indirect
Business
Total
Accident & Injury and Sickness (Class 1 & 2)
28,261
28,261
Land vehicle hulls (Class 3)
23,862
23,862
777
777
Marine, Aviation and Transport (Classes 4, 5, 6, 7,
11 & 12)
Fire and Other Damage to Property (Classes 8 & 9)
Motor TPL (Class 10)
74,343
-214
74,129
156,557
General TPL (Class 13)
28,382
156,557
56
28,438
Credit and Suretyship (Classes 14 & 15)
3,874
3,874
Miscellaneous Financial Loss (Class 16)
2,294
2,294
Legal Expenses/Protection (Class 17)
2,635
2,635
Assistance (Class 18)
1,608
1,608
Total Non-Life Classes
322,593
-158
322,435
Insurance on length of human life (Class I)
380,083
380,083
Permanent healthcare insurance (Class IV)
50
50
1,840
1,840
Life Classes
381,973
381,973
Total
704,566
Capital redemption policies (Class V)
-158
704,408
2.2 – Commission expenses
This item, consisting of acquisition costs incurred for investment contracts issued by the Life business
(DAC – deferred acquisition costs) not falling under the scope of IFRS 4, does not include any amounts
for 2014.
2.5 – Operating expenses
The composition of operating expenses attributable to each segment (Non-Life and Life businesses) is
reported below, before intra-group eliminations.
Details on insurance operating expenses
Non-Life Business
Gross commissions and other acquisition expenses
a Acquisition commissions
b Other acquisition expenses
c Changes in deferred acquisition costs
d Collection commissions
Reinsurers' commissions and profit participation
Other administration expenses
Total
Life Business
FY 2014
FY 2013
FY 2014
-114,777,874.89 -109,894,795.19
-9,620,441.46
-43,175,312.31
-40,251,641.31
-4,399,854.79
-27,495,808.32
-27,318,449.40
-4,874,132.50
0.00
0.00
0.00
-44,106,754.26
-42,324,704.48
-346,454.17
4,158,686.31
8,024,446.21
311,699.74
-3,112,186.70
-3,650,381.68
-1,520,477.41
-23,892,240.64
-19,179,685.28
-3,692,660.50
-137,623,615.92 -124,700,415.94 -14,521,879.63
111
FY 2013
-7,535,031.62
-2,468,573.89
-4,689,852.16
0.00
-376,605.57
456,319.20
-1,767,012.07
-3,979,253.53
-12,824,978.02
EXPLANATORY NOTES
2.6 – Other costs
Amounts in €k
Non-Life Segment
2014
Expenses from tangible assets
2013
Life Segment
2014
Total
2013
54
292
1
1,292
1,545
65
Depreciation on tangible assets
690
193
Allocation to provisions
615
185
10
8,628
6,985
13,171
10,364
Amortisation on intangible assets
Other technical costs
Interest on other payables
Other expenses
Total
94
2014
2013
55
292
1,357
1,639
690
193
625
185
21,799
17,349
413
565
9
14
422
579
1,164
243
206
35
1,370
278
12,856
10,008
13,462
10,507
26,318
20,515
The item “Other technical costs” is mainly attributable to write-offs and write-downs on receivables due
from policyholders in respect of previous years’ premiums totalling €8,223 thousand, commissions of
€5,074 thousand paid to the managing entity of the pension fund, payments in respect of substitute tax
pursuant to Law 23/12/2014 no. 190 on the Open-Ended Pension Fund “PensPlan Plurifonds” totalling
€3,192m, commissions of €2,618 thousand for client retention and costs of €759 thousand for the
management of claims falling under the CARD (Convenzione Automobilistica Risarcimento Diretto –
Convention on Direct Compensation for Motor Claims) framework.
112
EXPLANATORY NOTES
3 – Taxes
Amounts in €k
2014
2013
Current taxes
16,377
14,337
Deferred taxes
-2,014
-8,496
14,363
5,841
Total
Income taxes include taxes calculated on the basis of the estimated taxable income of each year (i.e.
IRES – Imposta sul Reddito delle Società, Corporate Income Tax and IRAP – Imposta Regionale sulle
Attività Produttive, the Regional Tax on Production Activities) and are recognised in accordance with
legislation currently in force. The table above shows the breakdown between current and deferred taxes,
with the latter recognised in accordance with the methods used pertaining to the respective items in the
Balance Sheet.
Compared to the aggregate of the tax burdens noted in each of the financial statements of the individual
companies of the Group, the tax burden at the consolidated income statement level is lower by some €94
thousand, given the impact of international accounting standards when compared to the use of local
accounting standards used in the financial statements at the individual company level.
The theoretical effective IRES rate in force for the year is 27.50%. The following table highlights changes
in tax which have led to divergences from the theoretical tax rate, therefore giving an effective tax
burden which differs from that under the theoretical rate.
Amounts in €k
2014
Theoretical IRES (Corporate Income Tax) rate
27.50%
Profit for the year before tax
2013
27.50%
34,514
7,807
9,491
2,147
14,363
5,841
3,286
1,107
IRES (Corporate Income Tax) for the year
11,077
4,734
Effective IRES rate
32.1%
60.6%
Theoretical tax burden (IRES)
Effective tax burden
IRAP (Regional Tax on Production Activities) for the year
Difference IRES (Theoretical burden less effective burden)
-1,586
-2,587
Non-deductible costs
-4,613
-3,229
Non-taxable income
2,499
3,616
528
-2,974
-1,586
-2,587
IRES on items for which the theoretical and effective tax rates differ
Other adjustments
Difference IRES (Theoretical burden less effective burden)
Deferred taxes recorded in the financial statements relate to temporary differences between the carrying
amounts of accounting entries and their tax deductibility. Specifically, reference is made to the
recognition of suspended tax items which will give rise to a tax charge upon their use.
113
EXPLANATORY NOTES
PART G - OTHER INFORMATION
Information relating to employees
Costs incurred relating to employees are reported below.
Amounts in €k
Non-Life
business
Life
business
Total
Expenses in respect of employment services
Italian portfolio:
- Remuneration
- Social Security contributions
19,183
1,415
20,598
6,525
488
7,013
1,068
28
1,096
5,472
299
5,771
32,248
2,230
34,478
- Accruals to the TFR (Employee Severance Indemnity) Fund
and similar obligations
- Other personnel expenses
Total
The table below reports the general composition of the workforce during the reporting period.
Average staff numbers in the year
Number
Directors
11
Employees
429
Total
440
114
EXPLANATORY NOTES
Information pertaining to related parties
The relationships among the Group’s Companies are coordinated by the Parent Company and are subject
to the scrutiny of the Supervisory Authorities. The transactions carried out with the Companies of the
Group are mainly concerned with shared services that the Parent Company offers to its subsidiaries on
the basis of appropriate service agreements, the guidelines of which are approved annually by the Board
of Directors and scrutinised by IVASS (the Italian Insurance Supervisory Authority). Inter-company
payments are determined on the basis of objective parameters pursuant to normal market conditions.
A form of Group reinsurance continues to be fully operational, formalised in a specific series of treaties
and is oriented towards containment of coverage costs for the benefit of the individual Companies of the
Group. Such a form of reinsurance is stipulated on both a proportional and non-proportional basis. The
economic effects and those on the respective financial positions between the Companies of the Group
have been netted out in the process of consolidation.
In the sub-sections that follow, the transactions executed with related parties over the course of the
reporting period are detailed, as per IAS 24, excluding those with Companies consolidated on a line-byline basis.
The following table summarises the most significant economic-financial relationships with Directors,
Auditors and Senior Managers with strategic responsibilities. The relationships between ITAS and such
parties are part of the ordinary activities of the Company and are established under market conditions,
applying, where circumstances so require, contractual agreements with employees, in respect of the
relevant regulations in force.
Remuneration
(€k)
Directors
1,809
Statutory Auditors
429
Senior Management
1,344
Also counted among the related parties of the Companies of the Group is the Group employees’ Pension
Fund.
It is noted that a reinsurance relationship exists between ITAS Vita, as the ceding company, and
Hannover Rueckversicherung Ag, a partner of the company, as reinsurer. The agreement, priced under
market values, stipulates coverage on both a proportional basis and on excess claims on extraordinary
events.
Moreover, during the reporting period, commissions have been distributed – under normal market
practices – to two partner organisations of ITAS Assicurazioni, the Banca Popolare di Cividale S.c.p.a.
and the Cassa di Risparmio di Bolzano S.p.A. (Sparkasse), deriving from the service of distribution of the
Group’s products offered by the credit/local banking organisations themselves.
Other transactions performed with related parties fall under the ordinary operations or strategy of the
Company and have been realised under market conditions. During the 2014 reporting year, no
115
EXPLANATORY NOTES
transactions or operations which were atypical or unusual with respect to the Company’s ordinary
activities were undertaken.
116
EXPLANATORY NOTES
DECLARATION OF PAYMENTS FOR FINANCIAL AUDITS AND SERVICES OTHER THAN AUDITING
The following table, composed in accordance with Article 2427 of the Italian Civil Code, paragraph 16 bis,
reports the payments made during the reporting period in respect of services provided by the appointed
Independent Auditing Company and companies belonging to its network. The amounts exclude IVA
(Imposta sul Valore Aggiunto, Value Added Tax) and do not include recognised out-of-pocket expenses.
Type of service
Service provider
Recipient
Fees (€k)
Auditing
Reconta Ernst & Young S.p.A.
ITAS Mutua
226
Auditing
ITAS Assicurazioni S.p.A.
18
Auditing
ITAS Vita S.p.A.
37
Auditing
19
Auditing
ITAS Service S.r.l.
7
Auditing
ITAS Holding S.r.l.
5
Auditing
ITAS Patrimonio S.p.A.
46
Certification services (*)
ITAS Vita S.p.A.
38
ITAS Mutua
172
1
1
Other services
EY Legal - Tax Consulting
ITAS Mutua
30
Other services
Ernst & Young Financial B.A. S.p.A.
ITAS Vita S.p.A.
80
Other services
ITAS Mutua
335
Other services
20
(*) C ertification services relate to the filing of Tax Returns, the auditing of Separately Managed Funds, the auditing of the
Open-Ended Pension Fund's accounts, the auditing of internal insurance funds and the auditing of the Sustainability Report.
117
EXPLANATORY NOTES
PART H – ANNEXES TO THE CONSOLIDATED FINANCIAL STATEMENTS
118
Company: ITAS-IST.TRENTINO ALTO ADIGE-ASS.NI
Reporting Year: 2014
1
1.1
1.2
2
2.1
2.2
3
4
4.1
4.2
4.3
4.4
4.5
4.6
5
5.1
5.2
5.3
6
6.1
6.2
6.3
6.4
6.5
7
INTANGIBLE ASSETS
Goodwill
TANGIBLE ASSETS
Land and buildings
TECHNICAL PROVISIONS - REINSURERS' SHARE
INVESTMENTS
RECEIVABLES
Receivables from direct insurance operations
Receivables from reinsurance transactions
Other receivables
OTHER ASSETS
Deferred tax assets
Current tax assets
Other assets
TOTAL ASSETS
119
2014 Total
1,463,621.77
0.00
1,463,621.77
66,979,675.00
57,773,859.97
9,205,815.03
48,073,662.84
2,657,635,374.45
79,007,936.91
0.00
461,438,843.76
13,175,369.86
1,643,101,102.88
460,912,121.04
121,468,828.48
84,945,837.65
15,048,761.47
21,474,229.36
53,196,189.48
0.00
0.00
26,927,397.68
26,268,791.80
0.00
119,795,813.98
3,068,613,166.00
2013 Total
1,744,293.82
0.00
1,744,293.82
67,740,780.85
61,095,627.74
6,645,153.11
64,444,107.03
2,180,434,009.03
71,058,475.51
0.00
512,391,168.15
12,104,350.26
1,199,115,494.24
385,764,520.87
102,609,488.03
69,791,917.55
13,410,819.16
19,406,751.32
55,554,249.24
0.00
0.00
22,802,615.45
32,751,633.79
0.00
61,466,178.35
2,533,993,106.35
BALANCE SHEET - SHAREHOLDERS' EQUITY AND LIABILITES
1
1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9
1.2
1.2.1
1.2.2
1.2.3
2
3
4
4.1
4.2
5
5.1
5.2
5.3
6
6.1
6.2
6.3
6.4
Share capital
Capital reserves
(Treasury shares)
Profit (loss) for the year attributable to the Group
attributable to non-controlling interests
Share capital and reserves attributable to non-controlling interests
Gains or losses recognised directly in equity
Profit (loss) for the year attributable to non-controlling interests
PROVISIONS
PAYABLES
Payables arising from direct insurance operations
Payables arising from reinsurance transactions
Other payables
OTHER LIABILITIES
Deferred tax liabilities
Current tax liabilities
Miscellaneous liabilities
120
2014 Total
346,300,987.04
291,753,557.89
91,386,930.89
0.00
0.00
130,322,971.95
0.00
0.00
53,617,752.92
-964,789.40
17,390,691.53
54,547,429.15
39,147,081.18
12,639,853.82
2,760,494.15
2,144,094.34
2,128,541,074.68
473,284,492.28
460,719,279.42
12,565,212.86
60,575,215.24
11,222,145.91
5,207,669.15
44,145,400.18
57,767,302.42
0.00
44,564,112.01
3,581,878.58
9,621,311.83
3,068,613,166.00
2013 Total
271,683,142.90
230,546,731.48
85,275,270.29
0.00
0.00
128,907,465.79
0.00
0.00
15,372,925.29
-444,020.55
1,435,090.66
41,136,411.42
38,662,214.99
1,943,108.83
531,087.60
2,581,784.81
1,767,608,200.33
403,010,270.08
385,732,137.07
17,278,133.01
58,722,487.78
8,827,394.71
5,043,030.05
44,852,063.02
30,387,220.45
0.00
20,339,163.37
1,408,642.00
8,639,415.08
2,533,993,106.35
INCOME STATEMENT
1.1
1.1.1
1.1.2
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1
2.1
2.1.1
2.1.2
2.2
2.3
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.5
2.5.1
2.5.2
2.5.3
2.6
2
3
4
Net premiums
Gross premiums earned
Commission income
Income and charges from financial instruments at fair value through profit or loss
Interest income
Other income
Realised gains
Valuation gains
Other income
Reinsurers' share
Commission expenses
Interest expenses
Other charges
Realised losses
Valuation losses
Operating expenses
Commissions and other acquisition costs
Other administration costs
Other costs
TOTAL EXPENSES
Taxes
PROFIT (LOSS) FOR THE YEAR AFTER TAXES
PROFIT (LOSS) FROM DISCONTIUNED OPERATIONS
121
FY 2014 Total
813,711,795.40
841,865,483.03
-28,153,687.63
0.00
11,209,520.47
0.00
86,115,102.84
61,086,127.95
9,067,601.18
15,373,580.48
587,793.23
8,318,761.30
919,355,180.01
-698,368,603.70
-704,407,820.79
6,039,217.09
0.00
0.00
-10,197,568.13
-650,933.89
-1,378,784.52
-3,961,571.64
-4,206,278.08
-149,957,110.44
-119,256,644.85
-4,317,361.34
-26,383,104.25
-26,317,638.23
-884,840,920.50
34,514,259.51
-14,363,073.83
20,151,185.68
FY 2013 Total
593,999,024.20
615,615,918.90
-21,616,894.70
0.00
8,156,140.85
0.00
77,779,848.13
57,470,809.49
8,279,822.94
12,029,215.70
0.00
7,546,785.40
687,481,798.58
-514,890,448.73
-521,603,060.62
6,712,611.89
0.00
0.00
-10,004,195.47
-851,263.75
-1,364,442.06
-3,606,130.83
-4,182,358.83
-134,264,487.21
-107,945,008.55
-4,991,977.08
-21,327,501.58
-20,515,169.89
-679,674,301.30
7,807,497.28
-5,841,319.02
1,966,178.26
20,151,185.68
17,390,691.53
2,760,494.15
1,966,178.26
1,435,090.66
531,087.60
Other income components net of taxes without reclassification
Changes in intangible assets revaluation reserve
Changes in tangible assets revaluation reserve
Other items
Other income components net of taxes with reclassification
Changes in currency translation reserve
Gains or losses on hedging instruments of net investments in a foreign
operation
Other items
TOTAL OF OTHER COMPONENTS OF THE STATEMENT OF
COMPREHENSIVE INCOME
TOTAL CONSOLIDATED COMPREHENSIVE INCOME
122
FY 2014 Total
20,151,185.68
FY 2013 Total
1,966,178.26
-557,101.74
317,790.18
-557,101.74
317,790.18
48,977,905.51
13,166,411.61
48,977,905.51
13,166,411.61
48,420,803.77
13,484,201.79
68,571,989.45
55,114,750.31
13,457,239.14
15,450,380.05
12,824,687.39
2,625,692.66
Details of other components of the Statement of Comprehensive Income
Allocations
Total FY 2014
Other income components without reclassification to the Income Statement
Revaluation reserve of intangible assets
Revaluation reserve of tangible assets
Other items
Other income components with reclassification to the Income Statement
Gains or losses on hedging instruments of net investments in a foreign operation
Other items
TOTAL OF OTHER COMPONENTS OF THE STATEMENT OF COMPREHENSIVE INCOME
-557,101.74
Total FY 2013
Adjustments due to
reclassification to the
Income Statement
Total FY 2014
Total FY 2013
317,790.18
-557,101.74
317,790.18
51,918,571.55
13,560,550.93
-2,940,666.04
-394,139.32
51,918,571.55
13,560,550.93
-2,940,666.04
-394,139.32
51,361,469.81
13,878,341.11
-2,940,666.04
-394,139.32
123
Other changes
Total FY 2014
Total changes
Total FY 2013
Total FY 2014
Total FY 2013
Total FY 2014
Total FY 2013
120,541.12
at 31-12-2014
-557,101.74
at 31-12-2013
0.00
-557,101.74
-557,101.74
317,790.18
-211,314.45
120,541.12
-557,101.74
317,790.18
0.00
0.00
48,977,905.51
13,166,411.61
24,530,241.00
6,445,699.58
65,849,919.08
16,554,223.39
48,977,905.51
13,166,411.61
24,530,241.00
6,445,699.58
65,849,919.08
16,554,223.39
48,420,803.77
13,484,201.79
24,318,926.55
6,566,240.70
65,292,817.34
16,872,013.57
0.00
-211,314.45
Balance
0.00
0.00
317,790.18
Taxes
317,790.18
Balance
at 31-12-2012
-4,355,629.90
0.00 11,261,952.86
127,643.87
212,136,889.30
0.00 18,282,198.31
127,643.87
37,398,076.93
1,309,030.01
-151,496.23
38,555,610.71
Shareholders'
Equity
attributable to
non-controlling
interests
Total
Allocations
Adjustments due to
reclassifications
to the
Income Statement
79,704,391.95
0.00
0.00
123,102,468.78
0.00
5,790,720.56
3,539,308.01
Share capital
Shareholders'
Equity
attributable to
the Group
Change in
closing
balances
Capital reserves
(Treasury shares)
250,692,500.01
Transfers
Changes in
ownership
interests
5,570,878.34
Balance
at 31-12-2013
Change in
closing
balances
Allocations
Adjustments due to
reclassifications
to the
Income Statement
Transfers
Changes in
ownership
interests
Balance
at 31-12-2014
85,275,270.29
0.00
0.00
128,907,465.79
0.00
1,435,090.66
14,928,904.74
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,111,660.60
0.00
0.00
1,415,506.16
0.00
15,955,600.87
39,886,615.51
-2,162,556.73
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 230,546,731.48
0.00
63,369,383.14
-2,162,556.73
0.00
1,264,138.06
38,662,214.99
0.00
484,866.19
0.00
39,147,081.18
0.00
-777,942.41
2,616,388.25
-521,783.19
531,087.60
1,943,108.83
0.00
0.00
2,229,406.55
11,474,854.30
-778,109.31
0.00
0.00
2,760,494.15
12,639,853.82
0.00
3,102,583.90
-521,783.19
0.00
0.00
41,136,411.42
0.00
14,189,127.04
-778,109.31
0.00
0.00
54,547,429.15
0.00 21,384,782.21
-394,139.32
0.00
0.00 271,683,142.90
0.00
77,558,510.18
-2,940,666.04
0.00
0.00
346,300,987.04
5,804,997.01
124
0.00
91,386,930.89
0.00
0.00
130,322,971.95
0.00
17,390,691.53
52,652,963.52
0.00
291,753,557.89
STATEMENT OF CASH FLOW (Indirect method)
Profit (loss) for the year before taxes
Change in non-monetary items
Change in Non-Life premium provision
Change in claims provisions and other Non-Life technical provisions
Changes in mathematical reserves and other Life technical provisions
Change in deferred acquisition costs
Change in other provisions
Non-monetary income and charges from financial instruments, investment properties and equity
Other changes
Change in receivables and payables generated by operating activities
Change in receivables and payables arising from direct insurance operations and reinsurance transactions
Change in other receivables and payables
Taxes paid
Net cash generated/absorbed by monetary items relating to investing and financing activities
Liabilities from financial contracts issued by insurance companies
Payables to bank and interbank customers
Loans and receivables from bank and interbank customers
Other financial instruments at fair value through profit or loss
TOTAL NET CASH FLOW FROM OPERATING ACTIVITIES
FY 2014
34,514,259.51
406,603,769.80
2,322,101.34
30,159,403.48
344,821,813.72
0.00
-437,690.47
0.00
29,738,141.73
-17,006,612.99
-14,232,472.11
-2,774,140.88
-14,363,073.83
-160,457.82
0.00
0.00
0.00
-160,457.82
409,587,884.67
FY 2013
7,807,497.28
130,129,619.85
1,381,069.05
36,521,649.96
109,881,413.53
0.00
-831,060.28
0.00
-16,823,452.41
-5,763,205.55
-6,250,719.89
487,514.34
-5,841,319.02
-9,364.62
0.00
0.00
0.00
-9,364.62
126,323,227.94
Net cash generated/absorbed by investment properties
Net cash generated/absorbed by investments in subsidiaries and associates and interests in joint ventures
Net cash generated/absorbed by loans and receivables
Net cash generated/absorbed by investments held to maturity
Net cash generated/absorbed by available for sale financial assets
Net cash generated/absorbed by tangible and intangible assets
Other net cash flows generated/absorbed by investing activities
TOTAL NET CASH FLOW FROM INVESTING ACTIVITIES
-7,949,461.40
0.00
-1,071,019.60
50,952,324.39
-443,985,608.64
1,041,777.90
0.00
-401,011,987.35
-9,496,247.04
0.00
-845,827.65
12,920,292.22
-158,352,857.07
-8,104,335.07
0.00
-163,878,974.61
44,297,733.44
0.00
-481,598.56
10,650,523.58
0.00
-4,712,920.15
49,753,738.31
17,275,750.62
0.00
-300,999.10
2,049,713.11
0.00
-4,760,757.29
14,263,707.34
61,466,178.35
58,329,635.63
119,795,813.98
84,758,217.68
-23,292,039.33
61,466,178.35
Net cash generated/absorbed by equity instruments attributable to the Group
Net cash generated/absorbed by treasury shares
Distribution of dividends attributable to the Group
Net cash generated/absorbed by Share capital and Reserves attributable to non-controlling interests
Net cash generated/absorbed by subordinated liabilities and equity financial instruments
Net cash generated/absorbed by other financial liabilities
TOTAL NET CASH FLOW FROM FINANCING ACTIVITIES
Effect of changes in exchange rates on cash and cash equivalents
Cash and cash equivalents at the beginning of the reporting year
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at reporting year-end
125
126
Scope of Consolidation
Company Name
Banca d'Italia
Banca d'Italia
Country Code for
Country Code
Nature
Registered
for Corporate/ Method
of
Office/Location
Operating
(1)
business
of Legal
Headquarters
(2)
Headquarters
(5)
% Direct
holding
(086 = Italy)
ITAS VITA S.P.A.
ITAS SERVICE S.R.L.
ITAS HOLDING S.R.L.
086
086
086
086
086
086
G
G
G
G
G
G
1
1
10
1
4
10
51.00
100.00
61.90
100.00
100.00
%
of available
%
voting rights at
Total holding
Ordinary
(3)
Shareholders'
Meetings (4)
%
consolidation
51.00
65.12
100.00
77.59
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
(1) C onsolidation method: Line-by-line (or "full") = G, Proportionate = P, Line-by-line on unified basis (per management unit) = U
(2) 1 = Italian insurance co.; 2 = Non-Italian EU insurance co.; 3 = Non-EU insurance co.; 4 = Insurance Holding C o.; 5 = EU Reinsurance co.; 6 = Non-EU Reinsurance co.;
7 = Banks; 8 = SGR (Società di gestione del Risparmio - i.e. Asset Management companies); 9 = Other Holding cos.; 10 = Real Estate cos.; 11 = Other
(3) This is the product of the equity investments relating to all the companies which, placed along the investment chain, are potentially placed between the company preparing
the C onsolidated Financial Statements and the company in question. If the latter is directly held by two or more subsidiaries, the sum of each of the single products is used.
(4) Total voting rights at Ordinary General Meetings if different to total percentage of direct or indirect shareholding.
(5) This disclosure is only required when the C ountry of the C orporate/Operational Headquarters differs from that of the Registered Office/Legal Headquarters.
127
Scope of Consolidation: investments in companies with significant non-controlling interests
Company name
ITAS VITA S.P.A.
% Noncontrolling
interests
34.88
49.00
Summary economic and financial data
%
Available voting
Consolidated
rights at Ordinary
profit (loss)
Shareholders'
attributable to
attributable to
Meetings
non-controlling non-controlling interests
attributable to
interests
non-controlling
interests
34.88
49.00
2,136,217.00
71,396.67
Total Assets
Investments
Technical
Provisions
-42,539,081.54 1,962,318,533.66 1,349,533,741.69 1,380,277,612.48
-5,024,408.19
18,775,504.62
12,884,710.61
10,801,803.74
128
Financial
liabilities
Shareholders'
Equity
0.00 94,147,192.17
0.00
6,564,127.88
Profit (loss)
for the year
8,353,480.61
148,457.17
Dividends
distributed to
non-controlling
interests
Gross Written
Premiums
0.00 421,742,773.05
0.00
5,645,099.84
Balance Sheet by business segment
Non-Life Segment
2014
1
2
3
4
4.1
4.2
4.3
4.4
4.5
4.6
5
6
6.1
6.2
7
1
2
3
4
4.1
4.2
5
6
INTANGIBLE ASSETS
TANGIBLE ASSETS
REINSURERS' SHARE OF TECHNICAL PROVISIONS
INVESTMENTS
RECEIVABLES
OTHER ASSETS
Other assets
TOTAL ASSETS
PROVISIONS
PAYABLES
OTHER LIABILITIES
Life Segment
2013
2014
1,297,069.69
1,650,720.55
166,552.08
66,959,679.39
67,721,190.57
19,995.61
32,540,506.43
44,493,143.01
15,533,156.41
810,356,528.23
753,050,449.12 1,914,793,011.29
73,839,000.64
65,803,242.52
5,168,936.27
64,436,124.28
64,436,124.28
3,078,040.79
149,667,443.17
163,970,233.58
311,771,400.59
12,048,178.10
10,870,648.94
1,127,191.76
510,365,782.04
447,970,199.80
1,132,735,320.84
0.00
0.00
460,912,121.04
108,124,176.17
93,904,909.53
19,125,259.13
33,423,962.26
38,513,866.11
19,772,227.22
0.00
0.00
0.00
33,423,962.26
38,513,866.11
19,772,227.22
36,772,805.14
15,820,169.71
83,023,008.84
1,089,474,727.31 1,015,154,448.60 2,052,433,210.58
1,728,312.91
711,423,960.93
0.00
0.00
0.00
52,855,632.78
37,160,815.78
2,175,584.81
415,781.43
690,895,092.69 1,417,117,113.75
0.00
473,284,492.28
0.00
460,719,279.42
0.00
12,565,212.86
51,912,729.94
13,500,189.28
23,649,517.05
20,606,486.64
129
2013
2014
93,573.27
19,590.28
19,950,964.02
1,494,897,724.98
5,255,232.99
3,078,040.79
348,420,934.57
1,233,701.32
751,145,294.44
385,764,520.87
12,808,046.69
17,040,383.13
0.00
17,040,383.13
45,646,008.64
1,590,456,291.01
0.00
0.00
0.00
-67,514,165.07
0.00
-67,514,165.07
0.00
0.00
0.00
0.00
-5,780,606.82
0.00
0.00
0.00
0.00
-73,294,771.89
406,200.00
1,076,713,107.64
403,010,270.08
385,732,137.07
17,278,133.01
10,913,226.03
6,737,703.40
0.00
0.00
0.00
0.00
0.00
-5,780,606.82
0.00
2013
Total
2014
0.00
1,463,621.77
0.00
66,979,675.00
0.00
48,073,662.84
-67,514,165.07 2,657,635,374.45
0.00
79,007,936.91
-67,514,165.07
0.00
0.00
461,438,843.76
0.00
13,175,369.86
0.00
1,643,101,102.88
0.00
460,912,121.04
-4,103,468.19
121,468,828.48
0.00
53,196,189.48
0.00
0.00
0.00
53,196,189.48
0.00
119,795,813.98
-71,617,633.26 3,068,613,166.00
346,300,987.04
0.00
2,144,094.34
0.00 2,128,541,074.68
0.00
473,284,492.28
0.00
460,719,279.42
0.00
12,565,212.86
-4,103,468.19
60,575,215.24
0.00
57,767,302.42
3,068,613,166.00
2013
1,744,293.82
67,740,780.85
64,444,107.03
2,180,434,009.03
71,058,475.51
0.00
512,391,168.15
12,104,350.26
1,199,115,494.24
385,764,520.87
102,609,488.03
55,554,249.24
0.00
55,554,249.24
61,466,178.35
2,533,993,106.35
271,683,142.90
2,581,784.81
1,767,608,200.33
403,010,270.08
385,732,137.07
17,278,133.01
58,722,487.78
30,387,220.45
2,533,993,106.35
Income Statement by business segment
Non-Life Segment
1.1
Net premiums
Life Segment
FY 2014
FY 2013
FY 2014
FY 2013
Total
FY 2014
FY 2013
459,911,724.62
438,144,898.88
353,800,070.78
155,854,125.32
0.00
0.00
813,711,795.40
FY 2014
593,999,024.20
FY 2013
1.1.1
Gross earned premiums
486,333,107.50
457,781,176.64
355,532,375.53
157,834,742.26
0.00
0.00
841,865,483.03
615,615,918.90
1.1.2
-26,421,382.88
-19,636,277.76
-1,732,304.75
-1,980,616.94
0.00
0.00
-28,153,687.63
-21,616,894.70
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11,209,520.47
8,156,140.85
0.00
0.00
11,209,520.47
8,156,140.85
0.00
0.00
134,967.44
84,354.65
-134,967.44
-84,354.65
0.00
0.00
34,676,373.37
32,944,420.85
51,438,729.47
44,835,427.28
0.00
0.00
86,115,102.84
77,779,848.13
1.2
1.4
Commission income
Income and charges from financial instruments at fair value through
profit or loss
1.5
1.6
Other income
1
2.1
1.3
2.1.1
2.1.2
Reinsurers' share
4,988,182.96
5,186,007.14
5,571,216.73
5,621,685.01
-2,240,638.39
-3,260,906.75
8,318,761.30
7,546,785.40
499,576,280.95
476,275,326.87
422,154,504.89
214,551,733.11
-2,375,605.83
-3,345,261.40
919,355,180.01
687,481,798.58
-317,488,212.30
-328,146,942.60
-380,932,644.68
-186,743,506.13
52,253.28
0.00
-698,368,603.70
-514,890,448.73
-322,487,775.57
-333,215,963.88
-381,972,298.50
-188,387,096.74
52,253.28
0.00
-704,407,820.79
-521,603,060.62
4,999,563.27
5,069,021.28
1,039,653.82
1,643,590.61
0.00
0.00
6,039,217.09
6,712,611.89
0.00
2.2
Commission expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.3
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.4
-7,025,484.92
-6,686,230.67
-3,172,083.21
-3,317,964.80
0.00
0.00
-10,197,568.13
-10,004,195.47
2.5
Operating expenses
-137,623,615.92
-124,700,415.94
-14,521,879.63
-12,824,978.02
2,188,385.11
3,260,906.75
-149,957,110.44
-134,264,487.21
2.6
Other costs
-12,855,549.00
-10,008,805.90
-13,462,089.23
-10,506,363.99
0.00
0.00
-26,317,638.23
-20,515,169.89
2
TOTAL EXPENSES
-469,542,395.11 -412,088,696.75 -213,392,812.94
2,240,638.39
3,260,906.75
-134,967.44
-84,354.65
-474,992,862.14
24,583,418.81
6,732,931.76
130
10,065,808.14
1,158,920.17
-884,840,920.50 -679,674,301.30
34,514,259.51
7,807,497.28
CONS OLIDATED BALANCE S HEET
Company: ITAS -IS T.TRENTINO-ALTO ADIGE AS S .NI
Details on tangible and intangible assets
ITAS MUTUA Consolidated Financial Statements as at 31/12/2014 (F igure s to the ne a re s t Euro c e nt)
At restated value or
At cost
Total book value
at Fair Value
79,007,936.91
0.00
79,007,936.91
Other property
57,773,859.97
0.00
57,773,859.97
9,205,815.03
0.00
9,205,815.03
1,463,621.77
0.00
1,463,621.77
131
Details of financial assets
2014
Equity securities and derivatives valued at cost
Equity securities at fair value
Debt securities
UCITS/Fund units
Loans and receivables from bank customers
Interbank loans and receivables
Deposits held by ceding companies
Financial asset components of insurance contracts
Other loans and receivables
Hedging derivatives
Total
0.00
0.00
0.00
461,438,843.76
451,971,123.31
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
461,438,843.76
2013
0.00
0.00
0.00
512,391,168.15
499,787,126.85
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
512,391,168.15
2014
2013
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13,175,369.86
12,104,350.26
0.00
0.00
0.00
0.00
0.00
0.00
13,175,369.86 12,104,350.26
2014
2013
1,731,874.84
2,146,640.24
51,602,180.96
49,167,308.37
30,293,730.49
25,347,381.39
1,505,515,430.10
1,090,768,055.54
1,437,263,495.41
1,055,972,386.69
84,251,616.98
57,033,490.09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,643,101,102.88 1,199,115,494.24
132
2014
2013
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2014
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8,593,016.43
8,593,016.43
78,313,491.39
78,313,491.39
367,551,774.92
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,453,838.30
460,912,121.04
2013
Total book value
2014
0.00
1,731,874.84
5,061,043.65
60,195,197.39
5,061,043.65
38,886,746.92
22,998,476.34
2,045,267,765.25
22,998,476.34
1,967,548,110.11
340,580,259.75
451,803,391.90
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13,175,369.86
0.00
0.00
0.00
0.00
17,124,741.13
6,453,838.30
385,764,520.87 2,578,627,437.54
2013
2,146,640.24
54,228,352.02
30,408,425.04
1,626,157,700.03
1,578,757,989.88
397,613,749.84
0.00
0.00
0.00
0.00
12,104,350.26
0.00
0.00
17,124,741.13
2,109,375,533.52
Details of the assets and liabilities relating to contracts issued by insurance companies where investment risk is borne by
policyholders and from Pension Fund management
Services relating to Investment
Funds and Market Indices
Assets recorded in financial statements
Intra-group assets *
Total Assets
Financial liabilities recorded in financial statements
Technical provisions recorded in financial statements
Intra-group liabilities *
Total Liabilities
2014
14,789,200.78
0.00
14,789,200.78
14,596,359.16
0.00
0.00
14,596,359.16
2013
13,326,883.15
0.00
13,326,883.15
13,294,499.35
0.00
0.00
13,294,499.35
* Assets and liabilities eliminated during the consolidation process
133
Services relating to
Total
2014
2013
2014
2013
446,122,920.26 372,437,637.72
460,912,121.04 385,764,520.87
0.00
0.00
0.00
0.00
446,122,920.26 372,437,637.72 460,912,121.04 385,764,520.87
446,122,920.26 372,437,637.72
460,719,279.42 385,732,137.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
446,122,920.26 372,437,637.72 460,719,279.42 385,732,137.07
Assets and liabilities measured at fair value on a recurring and non-recurring basis: breakdown by fair value levels
Level 1
2014
Assets and liabilities measured at fair value on a recurring basis
Level 2
2013
1,534,701,963.64
2014
1,098,482,795.62
Level 3
2013
88,315,365.53
2014
78,292,970.90
Total
2013
20,083,773.71
2014
22,339,727.72
2013
1,643,101,102.88
1,199,115,494.24
-
Tangible assets
Intangible assets
Total assets measured at fair value on a recurring basis
460,912,121.04
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,484,247,316.49
88,315,365.53
78,292,970.90
20,083,773.71
22,339,727.72
460,912,121.04
-
-
1,995,614,084.68
385,764,520.87
-
2,104,013,223.92
385,764,520.87
1,584,880,015.11
Financial liabilities held for trading
Financial liabilities at fair value
-
Financial liabilities designated at fair
value through profit or loss
Total liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a non-recurring basis
-
-
-
-
-
-
-
460,719,279.42
385,732,137.07
-
-
-
-
460,719,279.42
385,732,137.07
460,719,279.42
385,732,137.07
-
-
-
-
460,719,279.42
385,732,137.07
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
134
Details of changes in Level 3 Assets and Liabilities measured at fair value on a recurring basis
Financial assets
Financial liabilities at fair value through
profit or loss
Available for
sale financial
assets
Opening balance
Financial assets
Financial assets designated at fair
held for trading
value through
profit or loss
Investment
properties
Tangible
assets
Intangible
assets
designated at fair
held for trading
value through profit
or loss
22,339,727.72
0.00
0.00
0.00
0.00
79,422.75
-70,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Other changes
0.00
0.00
0.00
-2,265,376.76
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Closing balance
20,083,773.71
0.00
0.00
0.00
0.00
Purchases/Issues
Sales/Repurchases
Reimbursements
Gains or losses recognised through profit or loss
- of which valuation gains/losses
Gains or losses recognised in
Other Comprehensive Income
Transfers to Level 3
Transfers to Other Levels
135
0.00
0.00
0.00
Assets and Liabilities not measured at fair value: breakdown by fair value levels
Fair value
Book value
2014
Assets
Investments in subsidiaries,
Tangible assets
Total assets
Liabilities
Level 1
2013
2014
461,438,843.76
512,391,168.15
13,175,369.86
12,104,350.26
79,007,936.91
71,058,475.51
57,773,859.97
61,095,627.74
611,396,010.50
656,649,621.66
Level 2
2013
528,065,443.59
2014
2014
Total
2013
2014
2013
-
-
9,713,599.22
12,604,041.44
537,779,042.81
538,374,545.87
-
-
-
-
13,175,369.86
12,104,350.26
13,175,369.86
12,104,350.26
-
-
-
-
-
-
-
-
-
-
-
64,137,996.16
81,782,996.16
64,137,996.16
81,782,996.16
-
-
284,214,739.08
280,542,971.01
812,280,182.67
806,313,475.44
528,065,443.59
525,770,504.43
Level 3
2013
525,770,504.43
197,187,773.84
174,051,583.15
197,187,773.84
174,051,583.15
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
136
Details of financial liabilities
(figure s to the ne a re s t Euro c e nt)
held for trading
2014
Financial liabilities at
2013
2014
2013
2014
2013
Total book value
2014
2013
Equity financial instruments
Subordinated liabilities
Liabilities from financial contracts issued by insurance companies from:
Contracts for which investment risk is borne by policyholders
Other contracts
Deposits received from reinsurers
Financial liability components of insurance contracts
Debt securities issued
Payables to bank customers
Interbank payables
Other loans obtained
Hedging derivatives
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
460,719,279.42
14,596,359.16
446,122,920.26
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
385,732,137.07
13,294,499.35
372,437,637.72
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12,565,212.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17,278,133.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
460,719,279.42
14,596,359.16
446,122,920.26
0.00
12,565,212.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
385,732,137.07
13,294,499.35
372,437,637.72
0.00
17,278,133.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total
0.00
0.00
460,719,279.42
385,732,137.07
12,565,212.86
17,278,133.01
473,284,492.28
403,010,270.08
137
Details of technical provisions
Direct business
2014
Non-Life provisions
Premium provision
Claims provision
Other provisions
Life provisions
Technical provisions where investment risk is borne by policyholders and
arising from Pension Fund management
Other provisions
of which deferred liabilities to policyholders
Total Technical Provisions
Indirect business
2013
2014
2013
Total book value
2014
2013
710,608,737.71
181,949,961.88
527,818,788.32
839,987.51
0.00
1,417,117,113.75
7,892,116.71
1,365,491,179.83
689,782,143.25
181,223,975.23
507,515,971.75
1,042,196.27
0.00
1,076,713,107.64
9,158,944.62
1,057,989,847.55
815,223.22
50,505.99
764,717.23
0.00
0.00
0.00
0.00
0.00
1,112,949.44
711,423,960.93
690,895,092.69
52,076.11
182,000,467.87
181,276,051.34
1,060,873.33
528,583,505.55
508,576,845.08
0.00
839,987.51
1,042,196.27
0.00
0.00
0.00
0.00 1,417,117,113.75 1,076,713,107.64
0.00
7,892,116.71
9,158,944.62
0.00
1,365,491,179.83
1,057,989,847.55
0.00
43,733,817.21
0.00
36,839,501.24
2,127,725,851.46
0.00
9,564,315.47
0.00
3,953,750.48
1,766,495,250.89
0.00
0.00
0.00
0.00
815,223.22
0.00
0.00
0.00
0.00
43,733,817.21
9,564,315.47
0.00
0.00
0.00
0.00
36,839,501.24
3,953,750.48
1,112,949.44 2,128,541,074.68 1,767,608,200.33
138
Details of technical provisions - reinsurers' share
Direct business
Non-Life Provisions
Premium provision
Claims provision
Other Non-Life provisions
Life Provisions
Technical provisions where the investment risk is borne by
Other Life provisions
Total technical provisions - reinsurers' share
Indirect business
Total book value
2014
32,523,898.93
6,491,570.34
26,032,328.59
0.00
15,533,156.41
1,582,730.80
13,621,728.72
2013
44,493,143.01
8,096,262.65
36,396,880.36
0.00
19,950,964.02
1,600,092.05
18,303,188.45
2014
16,607.50
7,007.50
9,600.00
0.00
0.00
0.00
0.00
2013
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2014
32,540,506.43
6,498,577.84
26,041,928.59
0.00
15,533,156.41
1,582,730.80
13,621,728.72
2013
44,493,143.01
8,096,262.65
36,396,880.36
0.00
19,950,964.02
1,600,092.05
18,303,188.45
0.00
0.00
0.00
0.00
0.00
0.00
328,696.89
48,057,055.34
47,683.52
64,444,107.03
0.00
16,607.50
0.00
0.00
328,696.89
48,073,662.84
47,683.52
64,444,107.03
139
Details on technical insurance items
FY 2014
Gross Amount
Reinsurers' share
FY 2013
Net Amount
Gross Amount
Reinsurers' share
Net Amount
Non-Life business
NET PREMIUMS
a Written premiums
b Change in premium provision
a Amounts paid
b Change in claims provision
c Change in recoveries
d Change in other technical provisions
486,333,107.50
487,032,377.46
-699,269.96
-322,487,775.57
-311,105,671.66
-20,006,660.47
8,447,494.37
177,062.19
-26,421,382.88
-24,823,706.22
-1,597,676.66
4,999,563.27
15,354,788.35
-10,354,951.77
-273.31
0.00
459,911,724.62
462,208,671.24
-2,296,946.62
-317,488,212.30
-295,750,883.31
-30,361,612.24
8,447,221.06
177,062.19
457,781,176.64
463,267,102.08
-5,485,925.44
-333,215,963.88
-321,580,796.20
-19,534,237.93
7,899,070.25
0.00
-19,636,277.76
-22,953,494.53
3,317,216.77
5,069,021.28
21,252,821.34
-16,183,800.06
0.00
0.00
438,144,898.88
440,313,607.55
-2,168,708.67
-328,146,942.60
-300,327,974.86
-35,718,037.99
7,899,070.25
0.00
355,532,375.53
-381,972,298.50
-74,405,506.15
1,266,827.91
-307,672,956.39
-1,732,304.75
1,039,653.82
5,552,127.87
-17,361.25
-4,502,666.58
353,800,070.78
-380,932,644.68
-68,853,378.28
1,249,466.66
-312,175,622.97
157,834,742.26
-188,387,096.74
-89,160,243.93
-1,255,815.52
-97,874,223.09
-1,980,616.94
1,643,590.61
6,709,114.82
-155,480.19
-4,924,745.13
155,854,125.32
-186,743,506.13
-82,451,129.11
-1,411,295.71
-102,798,968.22
0.00
-1,160,663.87
0.00
7,553.78
0.00
-1,153,110.09
0.00
-96,814.20
0.00
14,701.11
0.00
-82,113.09
Life business
NET PREMIUMS
a Amounts paid
b Change in provision for amounts payable
c Change in mathematical reserves
Change in technical provisions where investment risk is borne by
d
e Change in other technical provisions
140
Income and charges from financial instruments and investments
Valuation gains
Interest
Result from investments
a From investment properties
b From investments in subsidiaries, associates and joint ventures
c From investments held to maturity
d From loans and receivables
e From available for sale financial assets
f
From financial assets held for trading
g From financial assets at fair value through profit or loss
Result from receivables
Result from cash and cash equivalents
Result from financial liabilities
a Arising from financial liabilities held for trading
b Arising from financial liabilities at fair value through profit or loss
c Arising from other financial liabilities
Result from payables
Total
Other income
Other expenses
Gains realised
Losses realised
Total realised
income and
expenses
Gains from
(re)valuation
Valuation losses
Impairment
reversals
Losses from
(re)valuation
Impairments
Total unrealised
Total income and Total income and
income and
expenses FY 2014 expenses FY 2013
expenses
61,168,004.02
9,576,035.69
-1,380,347.02
20,555,721.82
-4,825,998.34
85,093,416.17
29,036,260.62
587,793.23
-459,599.76
-4,206,278.08
24,958,176.01
110,051,592.18
98,062,326.01
0.00
2,618,669.99
-971,772.58
1,305,000.00
-543,271.62
2,408,625.79
0.00
0.00
0.00
-1,486,278.33
-1,486,278.33
922,347.46
-1,902,274.70
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
21,137,898.17
3,580,907.11
-3.75
0.00
0.00
24,718,801.53
0.00
0.00
0.00
0.00
0.00
24,718,801.53
27,932,217.14
340,556.36
6,636.15
0.00
0.00
0.00
347,192.51
0.00
0.00
0.00
0.00
0.00
347,192.51
320,112.32
38,895,478.18
2,861,387.93
-407,008.19
14,068,580.48
-3,418,300.02
52,000,138.38
0.00
587,793.23
0.00
-2,719,999.75
-2,132,206.52
49,867,931.86
41,176,980.61
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
794,071.31
508,434.51
-1,562.50
5,182,141.34
-864,426.70
5,618,657.96
29,036,260.62
0.00
-459,599.76
0.00
28,576,660.86
34,195,318.82
30,535,290.64
0.00
712,195.24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
712,195.24
0.00
0.00
0.00
0.00
0.00
712,195.24
1,099,881.04
-650,933.89
0.00
0.00
0.00
0.00
-650,933.89
0.00
0.00
-22,985,798.35
0.00
-22,985,798.35
-23,636,732.24
-23,230,413.54
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-22,985,798.35
0.00
-22,985,798.35
-22,985,798.35
-22,379,149.79
-650,933.89
0.00
0.00
0.00
0.00
-650,933.89
0.00
0.00
0.00
0.00
0.00
-650,933.89
-851,263.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
61,229,265.37
9,576,035.69
-1,380,347.02
20,555,721.82
-4,825,998.34
85,154,677.52
29,036,260.62
587,793.23
-23,445,398.11
-4,206,278.08
1,972,377.66
87,127,055.18
75,931,793.51
141
Details on insurance operating expenses
Non-Life Business
Gross commissions and other acquisition expenses
a Acquisition commissions
b Other acquisition expenses
c Changes in deferred acquisition costs
d Collection commissions
Reinsurers' commissions and profit participation
Other administration expenses
Total
Life Business
FY 2014
FY 2013
FY 2014
-114,777,874.89 -109,894,795.19
-9,620,441.46
-43,175,312.31
-40,251,641.31
-4,399,854.79
-27,495,808.32
-27,318,449.40
-4,874,132.50
0.00
0.00
0.00
-44,106,754.26
-42,324,704.48
-346,454.17
4,158,686.31
8,024,446.21
311,699.74
-3,112,186.70
-3,650,381.68
-1,520,477.41
-23,892,240.64
-19,179,685.28
-3,692,660.50
-137,623,615.92 -124,700,415.94 -14,521,879.63
142
FY 2013
-7,535,031.62
-2,468,573.89
-4,689,852.16
0.00
-376,605.57
456,319.20
-1,767,012.07
-3,979,253.53
-12,824,978.02
The Company’s Legal Representatives ( * )
GIOVANNI DI BENEDETTO - CHAIRMAN
( ** )
............................................................................................
( ** )
............................................................................................
............................................................................................ ( ** )
............................................................................................ ( ** )
............................................................................................ ( ** )
Trento, 19th March 2015
( * ) For foreign companies, the signature must be that of the Company’s Country Head/Executive Officer for Italy.
( ** ) Indicate the Position/Office held by the signatory.
143

Consolidated financial statements Consolidated financial

Transcription

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