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Euro area insurance corporations’ holdings of debt securities decreased to a total of €3,340 billion in the first quarter of 2017, from €3,386 billion in the previous quarter, and amounted to 43% of the sector’s total assets. The second largest category of holdings was investment fund shares (24%), where insurance corporations invested primarily in mixed funds, bond funds and equity funds. Equity accounted for 10% and loans for 8% of total assets.
Holdings of debt securities decreased mainly as a result of a fall in the value of the assets but also owing to net sales amounting to €17 billion. Holdings of investment fund shares (including money market fund shares) increased to €1,901 billion in the first quarter of 2017, from €1,843 billion in the previous quarter, primarily as a result of transactions of €41 billion.
Euro area insurance corporations invest primarily in euro area financial products. In the first quarter of 2017 81% of their holdings of debt securities, 92% of their holdings of investment fund shares and 73% of their holdings of listed shares were issued by institutions resident in the euro area.
Total insurance technical reserves of insurance corporations amounted to €5,916 billion in the first quarter of 2017, up from €5,882 billion in the final quarter of last year. Life insurance technical reserves represented 91% of the total. Unit-linked products amounted to €1,096 billion and accounted for 20% of total life insurance technical reserves.