In the second quarter of 2012, the total financial assets of euro area insurance corporations and pension funds increased to €7,247 billion, from €7,193 billion in the previous quarter. Over the same period, the insurance technical reserves, which are the main liabilities of insurance corporations and pension funds, increased to €6,301 billion, from €6,241 billion. This increase is due almost equally to positive transactions and valuation changes.
Regarding the breakdown of the assets of the aggregated balance sheet of euro area insurance corporations and pension funds, holdings of securities other than shares accounted for 39 per cent of the sector’s total financial assets at end-June 2012. The second largest category of holdings was investment fund shares, which contributed 23 per cent to the total financial assets. Finally, shares and other equity accounted for 11 per cent of the total financial assets.
Turning to transactions, in the main breakdowns of the insurance technical reserves, the net equity of households in life insurance reserves increased by €10 billion in the second quarter of 2012. The net equity of households in pension fund reserves increased by €17 billion in the same quarter, while pre-payments of insurance premiums and reserves for outstanding claims increased by €5 billion.
Regarding the contributions of the two sub-sectors, insurance corporations’ total financial assets accounted for €5,695 billion in June 2012, representing 79 per cent of the aggregated balance sheet of the insurance corporations and pension funds sector, while the pension funds´ total financial assets amounted to €1,552 billion.
Press release
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