Carige Vita Nuova
Carige Assicurazioni SpA as at 31 December 2008 (operating in the non-life insurance segment) amounted to € 29 million, before the increase in share capital of € 45 million, completed in the first few days of 2009. Investments and technical reserves, net of reinsurance, increased in the twelve month period by 14.9% (to € 2,096.4 million) and 18.3% (to € 2,059.3 million) respectively. Operations in 2008 were strongly affected, from an economic and equity point of view, by negative financial market trends, which, over the financial year, had a strong negative impact due to the alignment of financial investments with market values, especially as regards the bond portfolios, even though mitigated by application of ISVAP Regulation no. 28 mentioned above. The 2008 income statement, impacted by these negative effects, recorded a loss of € 24.1 million compared with loss of € 13.2 million in the previous financial year. This negative result relates to the effect of the market alignment of securities amounting to € 45.8 million, of which € 2.2 million relating to the long-term portfolio.
The Company deems it possible to substantially recover the values related to financial investments in the short-term portfolio as they mainly involve bonds purchased under par value as part of company strategy, and it will be possible to recover the invested capital when the single positions expire, except in the case of unforeseeable events affecting individual issuers. Therefore, it is estimated that there will be a substantial recovery of valuation losses of the short-term portfolio over time, charged to the 2008 income statement. More specifically, profit from the technical account was affected, by the reasonable increase in premiums in the period, net of reinsurance, (+58.4% to € 577.8 million), counterbalanced by provisions to reserves of € 318.9 million and the resultant increase in operating costs (+12% to € 26.3 million) due mainly to higher commissions paid through the increase in volumes. In addition, the income statement recorded an increase in net revenues from investments equal to €5.7 million at December 2008 (up € 2.9 million compared with December 2007), a fall in claims paid, net of reinsurance, (-18.8% to € 174.8 million) and an increase in the positive balance of other revenues and other technical expenses which increased from € 2 to € 9.6 million.
CARIGE VITA NUOVA SPA
| (figures in thousands of €) | Situation as at | Change % | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 31/12/08 | 30/9/2008 | 31/12/07 | 31/12/2006 | 12/08 9/08 | 12/08 12/07 | ||||
| Recognised gross premiums | 588,013 | 354,078 | 373,507 | 406,883 | 57.4 | ||||
| Premiums excluding reinsurance | 577,791 | 347,633 | 364,877 | 390,458 | 58.4 | ||||
| Claims incurred and settled excluding reinsurance (1) | 174,782 | 124,983 | 215,173 | 103,532 | -18.8 | ||||
| Operating costs | 26,333 | 17,590 | 23,519 | 25,718 | 12.0 | ||||
| Profit/loss from technical account | -33,899 | -38,141 | -22,930 | 4,331 | 47.8 | ||||
| Net profit | -24,060 | -27,548 | -13,229 | 5,858 | 81.9 | ||||
| Investments (2) | 2,096,416 | 1,918,431 | 1,823,915 | 1,723,690 | 9.3 | 14.9 | |||
| Technical reserves excluding reinsurance (2) | 2,059,288 | 1,882,194 | 1,740,297 | 1,598,310 | 9.4 | 18.3 | |||
| Shareholders' equitywith income | 29,001 | 25,513 | 53,061 | 71,364 | 13.7 | -45.3 | |||
| Insurance agencies | 256 | 258 | 271 | 291 | -0.8 | -5.5 | |||
| Staff | 80 | 79 | 74 | 74 | 1.3 | 8.1 | |||
(1) The item includes the amounts paid net of reinsurance ceded.
(2) Including investments where risk is borne by the insured and pension funds. These are mainly investments in index- and unit-linkedi products.