Consolidated net financial position

The consolidated net financial position of the Holdings System at March 31, 2016 is a negative balance of €4,218.2 million and a negative change of €5,555 million compared to year-end 2015 (€1,336.8 million), mainly due to disbursements made in connection with the 100% acquisition of PartnerRe common share capital.

The composition of the balance is as follows:

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Current financial assets include bonds issued by leading issuers, listed on active and open markets, and mutual funds. Such financial assets, if held for trading, are measured at fair value on the basis of the trading price at year end or using the value determined by an independent third party in the case of mutual funds, translated, where appropriate, at the year-end exchange rates, with recognition of the fair value in the income statement. They also include the current portion of bonds held to maturity.

Non-current financial assets include bonds issued by leading counterparties and listed on active and open markets which the Group intends, and has the ability, to hold until their natural repayment date as an investment for a part of its available cash so that it can receive a constant attractive flow of financial income. Such designation was made in accordance with IAS 39, paragraph 9.

These financial instruments are free of whatsoever restriction and, therefore, can be monetized whenever the Group should so decide. Their classification as non-current in the financial position has been adopted only in view of the fact that their natural maturity date is 12 months beyond the closing date of the interim financial statements. There are no trading restrictions and their degree of liquidity or the degree to which they can be converted into cash is considered high.

Current financial receivables refer to the financial income of €18 million on the FCA N.V. mandatory convertible securities maturing December 15, 2016.

Cash and cash equivalents include demand deposits or short-term deposits, and readily negotiable money market instruments and bonds. Investments are spread over an appropriate number of counterparties chosen according to their creditworthiness and their reliability since the primary objective is having investments which can readily be converted into cash.

At March 31, 2016 Bonds issued byEXOR can be analyzed as follows:

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(a) Includes the current portion.
(b) To protect against currency fluctuations, a hedging transaction was put in place using a cross currency swap. The cost in Euro is fixed at 6.012% per year.

Other financial liabilities principally consist of the measurement of cash flow hedge derivative instruments.

Financial payables of €1,691.1 million include the financing used for two credit lines secured under the May 11, 2015 Financing Agreement signed by EXOR, EXOR N.V., Citigroup Global Markets Limited and Morgan Stanley Bank for the acquisition of PartnerRe, for a total of $1,800 million (€1,581 million) of which:

-      bridge loan of $1,250 million (€1,097.9 million) classified in current financial debt, due April 2016,

-      bullet loan of $550 million (€483.1 million), classified in non-current financial debt, due in 2018.

These are both syndicated loans with a pool of international financial institutions.

Also included are the short-term loan secured by EXOR from a leading credit institution for €109 million and interest expenses on total financial debt, accrued in the quarter for €1.1 million.

The net negative change in the first quarter of 2016 of €5,555 million is detailed in the following table:

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(a) Of which $6,065 million (€5,377.7 million) paid to the common shareholders and $43 million (€37.7 million) to the preferred shareholders.
(b) Principally includes negative exchange differences on translation of approximately €110 million.

At March 31, 2016 EXOR has unused irrevocable credit lines in Euro of €245 million (including €105 million due by December 31, 2017), in addition to unused revocable credit lines of over €558 million.

EXOR also had an irrevocable credit line in foreign currency for an amount of $1,800 million (€1,581 million) earmarked for the acquisition of PartnerRe, entirely drawn down. On April 13, 2016 this credit line was reimbursed for $1,250 million. The residual credit line of $550 million is due after March 31, 2017.

EXOR’s long-term and short-term debt rating from Standard & Poor’s is “BBB+” and “A-2”, respectively, with a “negative” outlook.

Commercial Register No.64236277 Legal notes | Credits