OPERATING RESULT

The Group’s operating result posted its best performance ever, at € 4,830 million, with further growth of 0.9% (€ 4,785 million at 31 December 2015) thanks to the positive performance of life and P&C business.

In particular, the life operating result came to € 3,127 million, up by 5.5% due to good technical performance, even in the currently complex environment in the financial markets which is impacting profitability. The P&C operating result was also positive, at € 2,044 million, up by 2.9% thanks to the continuous improvement in the combined ratio, which, at 92.5%, is confirmed in first place amongst our peers, consistent with the Group’s strategic policy of technical excellence.

The operating result of the Holding and other businesses segment3 declined to € -91 million. This performance mainly reflects the decreased contribution of other businesses, particularly the reduction in performance fees in the financial segment, influenced by the related market performance, and lower net realized gains in the real estate sector.

The operating return on equity, the Group’s main economic profitability target, came to 13.5% (14% at 31 December 2015), confirming the achievement of the strategic objective for the third consecutive year (>13%).

* This segment includes the activities of the Group companies in the banking and asset management sectors, the costs incurred for management and coordination and business financing, and all other operations that the Group considers to be ancillary to the core insurance business.