Bearing in mind the protracted low interest rate environment, we are highly satisfied with the development of our total investments as at 31 December 2015. The portfolio of investments under own management stood at EUR 39.3 billion and was thus higher than the comparable level at the end of the previous year (31 December 2014: EUR 36.2 billion). This increase derived in large measure from positive exchange rate effects, especially associated with the strong US dollar, but was also due to a pleasing positive operating cash flow. The decline in valuation reserves, which resulted primarily from the flattening of the US yield curve and higher credit spreads on corporate bonds, served as a restraining factor in this development.

Even though interest rates remained low, ordinary investment income excluding interest on funds withheld and contract deposits came in 17.3% higher than the level of the previous year at EUR 1,253.4 million (EUR 1,068.4 million). Interest on funds withheld and contract deposits improved from EUR 376.1 million to EUR 395.0 million.

Net realised gains on investments as at 31 December 2015 remained below the previous year’s rather high figure at EUR 135.8 million (EUR 182.5 million). Write-downs were once again taken in only a minimal volume in the year under review, the vast bulk of them being due to scheduled depreciation on real estate. Income from assets under own management showed pleasing growth to reach EUR 1,270.1 million (EUR 1,095.8 million). The resulting annual return (excluding ModCo derivatives and inflation swaps) amounted to 3.5% (3.3%). It thus clearly beats our anticipated figure of 3.0%. Along with increased earnings from fixed-income securities, this was due to higher income from alternative investments such as real estate and private equity as well as a special effect in life and health reinsurance. We also benefited from movements in exchange rates. Investment income including interest on funds withheld and contract deposits consequently increased to EUR 1,665.1 million (EUR 1,471.8 million), a rise of 13.1% relative to 2014.