5. Net investment income

Classified by business line

In € thousand

Property and casualty insurance

Health insurance

Life insurance

Total

1–12/2020

1–12/2019

1–12/2020

1–12/2019

1–12/2020

1–12/2019

1–12/2020

1–12/2019

Investment property

–4,806

15,278

7,762

12,983

37,306

54,047

40,263

82,308

Financial assets accounted for using the

10,525

7,601

21,307

22,153

33,858

34,674

65,689

64,428

Variable-income securities

–17,782

4,422

10,067

9,576

5,781

1,487

–1,934

15,484

Available for sale

–17,757

6,333

9,565

8,861

5,897

1,185

–2,295

16,379

At through profit or loss

–25

–1,912

502

715

–116

302

361

–894

Fixed-income securities

53,207

119,094

70,586

69,321

281,809

247,904

405,602

436,319

Available for sale

48,751

112,090

65,790

60,868

281,747

247,768

396,288

420,726

At fair value through profit or loss

4,456

7,004

4,796

8,454

62

136

9,314

15,593

Loans and other investments

2,283

6,033

1,133

3,932

23,940

26,879

27,356

36,843

Loans

816

967

1,327

1,637

4,808

6,394

6,951

8,999

Other investments

1,467

5,066

–194

2,294

19,132

20,485

20,405

27,845

Derivative financial instruments

8,910

–10,416

1,851

311

–169

422

10,591

–9,682

Investment administration expenses, interest paid and other investment expenses

–22,790

–19,935

–8,163

–9,241

–11,204

–11,280

–42,158

–40,456

Total

29,547

122,077

104,542

109,034

371,321

354,133

505,409

585,244

 

 

 

 

 

 

 

 

 

Of which:

 

 

 

 

 

 

 

 

Current income/expenses

108,512

107,685

93,794

86,621

316,712

336,775

519,018

531,081

Gains/losses from disposals and changes in value

–78,965

14,391

10,748

22,414

54,609

17,358

–13,609

54,163

Impairments

–35,121

–11,992

–29,698

–6,941

–5,951

–3,204

–70,770

–22,138

Classified by type of income

In € thousand

Current income/expenses

Gains/losses from disposals and changes in value

Total

of which impairment

1–12/2020

1–12/2019

1–12/2020

1–12/2019

1–12/2020

1–12/2019

1–12/2020

1–12/2019

Financial assets at through profit or loss

14,378

1,414

5,889

3,603

20,266

5,017

0

0

Variable-income securities (within the framework of fair value option)

760

595

–399

–1,490

361

–894

0

0

Fixed-income securities (within the framework of fair value option)

1,095

2,572

8,219

13,022

9,314

15,593

0

0

Derivative financial instruments

12,523

–1,752

–1,931

–7,930

10,591

–9,682

0

0

Investments under investment contracts1)

0

0

0

0

0

0

0

0

375,078

390,453

18,915

46,651

393,993

437,104

–61,311

–20,258

Variable-income securities

29,053

29,015

–31,348

–12,636

–2,295

16,379

–44,439

–12,385

Fixed-income securities

346,025

361,438

50,263

59,287

396,288

420,726

–16,872

–7,873

Loans and receivables

30,157

37,234

–2,801

–391

27,356

36,843

0

–32

Fixed-income securities

3,724

5,959

–26

–349

3,698

5,610

0

0

Loans and other investments

26,432

31,275

–2,775

–42

23,658

31,233

0

–32

Investment property

74,723

78,007

–34,460

4,300

40,263

82,308

–9,459

–1,848

Financial assets accounted for using the equity method

66,840

64,428

–1,151

0

65,689

64,428

0

0

 

 

 

 

 

 

 

 

 

Investment administration expenses, interest paid and other investment expenses

–42,158

–40,456

0

0

–42,158

–40,456

0

0

Total

519,018

531,081

–13,609

54,163

505,409

585,244

–70,770

–22,138

1)

Income from investments under investment contracts is not stated due to its transitory character.

Details of net investment income

In € thousand

1–12/2020

1–12/2019

Current income/expenses from investment property

 

 

Rent revenue

99,575

108,418

Operational expenses

–24,851

–30,411

Currency gains/losses

 

 

currency gains

90,345

42,610

currency losses

–106,091

–60,311

Proft from currency gains/losses

–15,746

–17,701

of which gains/losses from derivative financial instruments as part of US dollar underlying

–17,103

3,547

of which gains/losses from derivative financial instruments as part of hedge transactions in US dollar

13,878

–7,755

Negative currency effects from investments amounting to €8,547 thousand (2019: positive currency effects amounting to €1,304 thousand) were recognised directly in equity.

The effects of Covid-19

Net investment income fell overall compared with the previous year due to negative capital market developments caused by Covid-19 in the 2020 financial year. However, an upward trend was recorded in developments on the capital markets from the second quarter of 2020 onwards.Expenses from investments increased on the previous year primarily as a result of impairments. Any reversals of impairment losses were recognised in other comprehensive income under the item “Profits recognised in equity from the measurement of financial instruments available for sale”.

Net profit/(loss) by measurement category

In € thousand

1–12/2020

1–12/2019

Financial assets at fair value through profit or loss

 

 

Recognised in profit/(loss) for the period

20,266

5,017

Available-for-sale financial assets

 

 

Recognised in profit/(loss) for the period

393,993

437,104

of which reclassified from equity to consolidated income statement

–68,659

–46,216

Recognised in other comprehensive income

563,452

957,411

Net income

957,445

1,394,515

Loans and receivables

 

 

Recognised in profit/(loss) for the period

27,356

36,843

Financial liabilities measured at

 

 

Recognised in profit/(loss) for the period

–64,758

–54,643

Equity method
Investment in associates is accounted for using this method. The value carried corresponds to the Group’s proportional equity in these companies. In the case of shares in companies that prepare their own consolidated financial statements, their Group equity is assessed accordingly in each case. Within the scope of ongoing measurement, this value must be updated to incorporate proportional changes in equity with the share of net income/(loss) being allocated to consolidated profit/(loss).
Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
Available-for-sale financial assets
The available-for-sale financial assets include financial assets that are neither due to be held to maturity, nor have been acquired for short-term trading purposes. Available-for-sale financial assets are measured at fair value. Fluctuations in value are recognised in other comprehensive income in the consolidated statement of comprehensive income.
Amortised cost
Amortised costs are costs of acquisition less permanent impairment (e.g. ongoing depreciation and amortisation).