2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statements2.e NET INCOME FROM OTHER ACTIVITIESYear to 31 Dec. 2012 Year to 31 Dec. 2011In millions of eurosIncome Expense Net Income Expense NetNet income from insurance activities 24,715 (21,460) 3,255 18,204 (14,559) 3,645Net income from investment property 375 (178) 197 1,301 (500) 801Net income from assets held under operating leases 5,871 (4,844) 1,027 5,627 (4,567) 1,060Net income from property development activities 1,214 (1,006) 208 216 (41) 175Other net income 1,545 (1,373) 172 1,488 (1,198) 290TOTAL NET INCOME FROM OTHER ACTIVITIES 33,720 (28,861) 4,859 26,836 (20,865) 5,971The decrease in net income from investment properties is due to the loss of control over Klépierre at the end of the first quarter 2012 (see note 8.d).➤ NET INCOME FROM INSURANCE ACTIVITIES4In millions of eurosYear to31 Dec. 2012Year to31 Dec. 2011Gross premiums written 19,813 16,288Policy benefit expenses (15,267) (12,484)Movement in technical reserves (4,246) 1,572Change in value of admissible investments related to unit-linked policies 3,361 (1,597)Reinsurance ceded (519) (361)Other income and expense 113 227TOTAL NET INCOME FROM INSURANCE ACTIVITIES 3,255 3,645“Policy benefit expenses” include expenses arising from surrenders, maturities and claims relating to insurance contracts. “Movement in technicalreserves” reflects changes in the value of financial contracts, in particular unit-linked policies. Interest paid on such contracts is recognised in “Interestexpense”.2.f COST OF RISK“Cost of risk” represents the net amount of impairment losses recognised in respect to credit risks inherent in the Group’s banking intermediationactivities, plus any impairment losses in the cases of known counterparty risks on over-the-counter financial instruments.Cost of risk for the period➤ COST OF RISK FOR THE PERIODIn millions of eurosYear to31 Dec. 2012Year to31 Dec. 2011Net allowances to impairment (4,173) (6,751)of which Greek sovereign debt (1) (62) (3,241)Recoveries on loans and receivables previously written off 714 514Irrecoverable loans and receivables not covered by impairment provisions (482) (560)TOTAL COST OF RISK FOR THE PERIOD (3,941) (6,797)(1) The impairment allowance relating to Greek sovereign debt recognised in 2011 resulted from the release in cost of risk of the change in valuerecognised in equity on the date when these securities were reclassified as loans and receivables (see note 4), i.e. EUR 1, 296 million, and fromadditional impairment assuming a 75% loss of their par value .1282012 Registration document and annual financial report - BNP PARIBAS