HOLDING AND OTHER BUSINESSES SEGMENT

The holding and other businesses segment includes the activities of the Group companies in the banking and asset management sectors, the costs incurred for the direction, coordination and financing activities, as well as all other operations that the Group considers to be ancillary to the core insurance business. The operating result of the aforementioned business sectors are summarized in the table below:

Operating result of the holding and other businesses segment

(in € million)31/12/201631/12/2015Change
Holding and other business operating result -91 59 n.m.
Financial 370 434  -14.7%
Holding operating expenses -459 -429 7.0%
Other businesses -2 55 n.m.

The operating result of the holding and other businesses segment amounted to € -91 million, down compared to the € 59 million at 31 December 2015. This performance was mainly caused by the financial segment, particularly the lower results of Banca Generali due to lower performance fees, as well as lower realized gains on real estate in the other businesses segment.

The operating result of the financial segment registered a decrease, and amounted to € 370 million (€ 434 million at 31 December 2015). The decline (-14.7%) reflects the result of Banca Generali, which declined from € 252 million to € 190 million at 31 December 2016. At 31 December 2016, the third party assets managed by the Group banks and the asset management companies amounted to € 54,877 million (€ 44,323 million at 31 December 2015), up by 23.8%.

Operating holding expenses amounted to € -459 million (€ -429 million at 31 December 2015). This increase primarily reflects the development of the Regional Offices aimed at directing, coordinating and controlling the business in key areas in terms of growth opportunities,
such as Asia.

The operating result of other businesses amounted to € -2 million, down compared to the € 55 million recorded in the corresponding period of the previous year, reflecting lower net realized gains in the real estate sector.

Operating result of the holding and other businesses segment

(in € million)31/12/201631/12/2015Change
Holding and other businesses operating result -91 59 n.m
Net earned premiums 0 0 n.m
Net insurance benefits and claims 0 0 -31.7%
Acquisition and administration costs -389 -360 8.0%
Fee and commission income and income from financial service activities 678 697 -2.8%
Net operating income from financial instruments at fair value through profit or loss 7 8 -7.9%
Net operating income from other financial instruments 174 255 -31.9%
Interests and other income 376 397 -5.4%
Net operating realized gains on other financial instruments and land and buildings (investment properties) 32 70 -54.8%
Net operating impairment losses on other financial instruments and land and buildings (investment properties) -2 -7 -78.2%
Interest expenses on liabilities linked to to operating activities -123 -123 0.1%
Other expenses from other financial instruments and land and buildings (investment properties) -109 -81 33.2%
Net other operating expenses -101 -111 -8.8%
Operating holding expenses -459 -429 7.0%
Holding and other businesses non-operating result -815 -941 -13.3%
Net non-operating income from financial instruments at fair value through profit or loss 14 3 n.m
Holding and other businesses non-operating result -829 -944 -12.2%
Net non-opeating income from other financial instruments -12 -106 -88.3%
Net non-operating realized gains on ither financial instruments and land and buildings (investment properties) 22 70 -68.2%
Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) -35 -176 -80.3%
Net other non-operating expenses -23 -73 -68.7%
Non operating holding expenses -794 -764 3.8%
Interest expenses on financial debt -723 -684 5.8%
Holding non recurring expenses -71 -81 -12.5%
Holding and other businesses result before taxes -906 -881 2.8%