XML 24 R17.htm IDEA: XBRL DOCUMENT

Financial assets available for sale

12 Months Ended

Dec. 31, 2017

Disclosure of available-for-sale financial assets [text block]

10 Financial assets available for sale

(€ million)	December 31, 2017		December 31, 2016
Securities held for non-operating purposes
Quoted bonds issued by sovereign states		190		210
Quoted securities issued by financial institutions		17		28
		207		238

The breakdown by currency is provided below:

(€ million)	December 31, 2017		December 31, 2016
Euro		176		199
U.S. Dollar		31		39
		207		238

At December 31, 2017, bonds issued by sovereign states amounted to €190 million (€210 million at December 31, 2016). The breakdown is presented below:

	Nominal value (€ million)		Fair Value (€ million)		Nominal rate of return (%)	Maturity date	Rating – Moody’s	Rating – S&P
Fixed rate bonds
Belgium		27		30	from 3.75 to 4.25	from 2019 to 2021	Aa3	AA
Spain		25		27	from 1.40 to 5.50	from 2018 to 2021	Baa2	BBB+
France		17		19	from 1.00 to 3.25	from 2018 to 2023	Aa2	AA
Poland		15		18	from 4.50 to 6.38	from 2019 to 2022	A2	BBB+
Ireland		17		18	from 0.80 to 4.50	from 2019 to 2022	A2	A+
Iceland		14		15	from 2.50 to 5.88	from 2020 to 2022	A3	A
Italy		14		15	from 0,65 to 3,50	from 2018 to 2020	Baa2	BBB
Portugal		7		8	4.75	2019	Ba1	BBB-
Czech Republic		7		8	3.63	2021	A1	AA-
Slovenia		8		8	2.25	2022	Baa1	A+
Slovakia		7		7	1.50	2018	A2	A+
United States of America		6		6	from 1.25 to 3.13	from 2019 to 2020	Aaa	AA+
Canada		5		5	1.63	2019	Aaa	AAA
Finland		5		5	1.75	2019	Aa1	AA+
Netherlands		1		1	4.00	2018	Aaa	AAA
Total		175		190

Quoted securities amounting to €17 million (€28 million at December 31, 2016) were issued by financial institutions with a rating from Aaa to Aa1 (Moody’s) and from AAA to AA+ (S&P).

The Group’s insurance company Eni Insurance DAC held securities of €207 million at the balance sheet date (€238 million at December 31, 2016). From 2016, European insurance companies have been waived from retaining certain amounts of financial assets to fund the loss provisions based on new capital and solvency requirements enacted by the EU Solvency II Directive. Therefore, those securities are no longer held for operating purposes and are part of the Group liquidity reserve.

The effects of fair value measurement of securities are set out below:

(€ million)	Fair value			Deferred tax liabilities			Other reserves of shareholders' equity
Carrying amount at December 31, 2016		5			(1	)		4
Changes recognized in equity		(5	)		1			(4	)
Carrying amount at December 31, 2017

The fair value was determined based on market quotations. The fair value hierarchy is level 1.