Investments
Investments
We are satisfied with the development of our total investments. Thanks to what was still a highly positive operating cash flow, the portfolio of investments under own management amounted to EUR 31.9 billion and thus remained on a par with the previous year (EUR 31.9 billion) despite the decrease in valuation reserves. Bearing in mind the continued low level of interest rates, it is very pleasing to note that ordinary investment income excluding income from funds withheld and contract deposits remained virtually unchanged at EUR 1,041.3 million (EUR 1,088.4 million).
Overall, our income from assets under own management contracted year-on-year as expected: it totalled EUR 1,054.5 million (EUR 1,300.2 million) as at 31 December 2013. The resulting annual return (excluding ModCo derivatives and inflation swaps) amounted to 3.4% (4.1%). The decrease relative to the previous year can be attributed in part to the net realised gains, which at EUR 144.2 million (EUR 227.5 million) were considerably lower than in the previous year – when we had acted to a greater extent on opportunities in the real estate sector. On the other hand, in the previous year we had recorded exceptionally high positive fair value changes of EUR 89.3 million in our financial assets measured at fair value through profit or loss; these contrasted with a negative fair value change of EUR 27.1 million as at 31 December 2013, which was attributable primarily to the performance of the inflation swaps. This was only partially offset by the marginally positive result of the ModCo derivatives.
Write-downs were again taken in only a minimal volume in the year under review, the bulk of them being due to scheduled depreciation on real estate. Income from funds withheld and contract deposits remained stable at EUR 357.3 million (EUR 355.5 million).