GROUP RESULT

GROUP RESULT

Thanks to improvements in the operating results noted above, the result for the period attributable to the Group stood at € 2,081 million, showing an increase of 2.5% over the € 2,030 million recorded at 31 December 2015.

The tax rate was 29.1% (32.6% at 31 December 2015).

Compared to last year, this performance is primarily attributable to the reduction of the nominal tax rate on corporate income in France and Spain, as well as extraordinary income recognized in Germany against lower taxes on previous years.

The result attributable to minority interests, amounting to € 158 million, which corresponds to a minority rate of 7.1% (10.1% at 31 December 2015) was down on the € 229 million of the previous year due to the results of Banca Generali and Generali China Life.

From operating result to net result

(€ million)31/12/2016 31/12/2015Change
Consolidated operating result 4,830 4,785 0.9%
Net earned premiums 65,352 68,507 -4.6%
Net insurance benefits and claims -63,963 -69,091 -7.4%
Acquisition and administration costs -10,597 -10,724 -1.2%
Net fee and commission income and net income from financial service activities 384 494 -22.3%
Operating investment result 14,344 16,615 -13.7%
  Net operating income from financial instruments at fair value through profit or loss 2,201 3,207 -31.4%
  Net operating income from other financial instruments 12,142 13,408 -9.4%
    Interest income and other income 12,096 12,263 -1.4%
    Net operating realized gains on other financial instruments and land and buildings (investment properties) 1,702 2,434 -30.1%
    Net operating impairment losses on other financial instruments and land and buildings (investment properties) -707 -341 107.3%
    Interest expense on liabilities linked to operating activities -358 -411 -12.8%
    Other expenses from other financial instruments and land and buildings (investment properties) -591 -538 9.8%
Operating holding expenses -459 -429 7.0%
Net other operating expenses(*) -230 -586 -60.7%
Consolidated non-operating result -1,529 -1,318 16.1%
Non operating investment result -217 159 n.m.
  Net non-operating income from financial instruments at fair value through profit or loss -96 -96 -0.6%
  Net non-operating income from other financial instruments(**) -121 255 n.m.
    Net non-operating realized gains on other financial instruments and land and buildings (investment properties) 422 758 -44.4%
    Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) -543 -503 8.0%
Non-operating holding expenses -794 -764 3.8%
  Interest expenses on financial debt -723 -684 5.8%
  Other non-operating holding expenses -71 -81 -12.5%
Net other non-operating expenses -519 -712 -27.2%
Earning before taxes 3,300 3,467 -4.8%
Income taxes(*) -1,061 -1,173 -9.5%
Earnings after taxes 2,239 2,295 -2.4%
Profit or loss from discontinued operations 0 -35 n.m.
Consolidated result of the period 2,239 2,259 -0.9%
  Result of the period attributable to the Group 2,081 2,030 2.5%
  Result of the period attributable to minority interests 158 229 -31.0%

(*) At 31 December 2016 the amount is net of operating taxes for € 64 million and of non-recurring taxes shared with the policyholders in Germany for € 79 million (at 31 December 2015 respectively for € 64 million and € -3 million).

(**) The amount is gross of interest expense on liabilities linked to financing activities.