8. Investments accounted for using the equity method

Details are as follows:

 € million  12/31/2016  12/31/2015  Change 
PartnerRe (a)  6,357.1  -  6,357.1
FCA  5,638.8  5,019.0  619.8
CNH Industrial  1,630.5  1,589.2  41.3
Ferrari (b)  99.4  -  99.4
The Economist Group  280.1  457.5  (177.4)
Juventus Football Club  79.9  47.8  32.1
Arenella Immobiliare (c)  -   26.3  (26.3)
Almacantar Group (d)   -   532.8  (532.8)
Total  14,085.8   7,672.6  6,413.2
(a) The interest previously held was classified in investments measured at fair value. (b) Company controlled directly by EXOR following the FCA spin-off transaction completed on January 3, 2016. (c) Company disposed on July 2016. (d) Sold to PartnerRe on April 8, 2016 on the basis of EXOR’s share of consolidated equity at March 31, 2016.

EXOR completed the acquisition of PartnerRe on March 18, 2016 and became indirectly, through EXOR Nederland N.V (formerly EXOR N.V.), the holder of 100% of common share capital. The total disbursement by EXOR was $6,108 million (€5,415 million), of which $6,065 million (€5,377.7 million) was paid to common shareholders and $43 million (€37.7 million) to preferred shareholders. The interest previously held (9.9% of capital), which was classified in investments available-for-sale and measured at fair value with recognition of the changes in fair value in equity, was adjusted to the fair value at the acquisition date of control, equal to $137.50 per share (total of €576.1 million) resulting in a decrease in equity of €30.5 million compared to December 31, 2015. Furthermore, following the change in the valuation method, the positive fair value reserve of €22.9 million was reclassified to the income statement. The entire investment in PartnerRe was classified in investments accounted for using the equity method and the measurement at December 31, 2016 is based on the consolidated accounting information for the period March 18, to December 31, 2016. The carrying amount of the investment includes goodwill of $660 million (€626 million).

The positive change in EXOR’s investment in FCA is mainly attributable to the net profit for the period (approx. €530 million), the increase in exchange difference on translation (€105.7 million) and the defined benefit plans remeasurement reserve (€93.7 million, net of deferred taxes), partially offset by the decrease in cash flow hedge reserve (€61 million, net of deferred taxes), as well as the spin-off of Ferrari by FCA and the distribution of RCS MediaGroup shares to the shareholders of FCA (total of €28.7 million).

The positive change in EXOR’s investment in CNH Industrial can be ascribed primarily to the increase of the exchange differences on translation (€108.8 million), to the EXOR’s positive share of the result of €31.5 million (adjusted by eliminating the charge relating to the investigation conducted by the European Commission recorded by CNH Industrial, in that the charge had already been recognized by EXOR in the 2015 financial statements), partially offset by the payment of dividends (€49.5 million), as well as negative defined benefit plans remeasurement and cash flow reserves, respectively of €29.5 million and €20.6 million.

The negative change in EXOR’s investment in The Economist Group is mainly due to the buyback transaction (€100.2 million) and exchange differences (€59.6 million), partially offset by positive EXOR’s share of the profit for the period including the consolidation adjustments (€32.6 million).

 

Commercial Register No.64236277 Legal notes | Credits