Annual Report 2021
Financial statements
6.5.5
Investments

See accounting policy E.

Investments
31 December 202131 December 2020
Available for sale30,33333,774
At fair value through profit or loss3,2162,825
33,55036,599

For changes in investments available for sale and changes in investments at fair value through profit or loss see chapter 6.5.5.1 and chapter 6.5.5.2 respectively.

Breakdown of investments
31 December 202131 December 2020
Available for saleFair value through profit or lossTotalAvailable for saleFair value through profit or lossTotal
Fixed income investments
Government bonds14,149-14,14917,390-17,390
Corporate bonds10,827-10,82711,817-11,817
Asset-backed securities530-530404-404
Preference shares311-311316-316
Rural property contracts-215215-143143
Equities and similar investments
Equities4,111184,1293,447623,510
Real estate equity funds-2,2022,202-2,0292,029
Mortgage equity funds3987811,179393590983
Other participating interests7-77-7
Total investments30,3333,21633,55033,7742,82536,599

The equities consist primarily of listed equities and investments in investment funds. Equities increased mainly as a result of additional investments and positive revaluations.

In 2021, government bonds decreased to 14,149 million (2020: 17,390 million) mostly due to negative revaluations and the disposal of government bonds. Cash collateral received on derivative instruments was reinvested into government bonds, cash collateral decreased due to increasing interest rate, therefore these government bonds were sold. For more information regarding cash collateral received see chapter 6.5.21.

For the real estate equity funds and mortgage equity funds for which a.s.r. has significant influence, being ASR DMOF, ASR DPRF, ASR DCRF and ASR Mortgage Fund, the exemption of IAS 28 was used, thereby measuring the investments at fair value through profit or loss and presenting them as a separate category within the investments at fair value through profit or loss. For a breakdown of the real estate equity funds ASR DMOF, ASR DPRF and ASR DCRF, and ASR Mortgage Fund see chapter 6.5.4.

All investments at fair value through profit or loss are designated as such by a.s.r. upon initial recognition. For more detailed information about the fair value valuation of the investments, see chapter 6.7.1.

Based on their contractual maturity, an amount of 21,400 million (2020: 23,681 million) of fixed income investments is expected to be recovered after more than one year after the balance sheet date. For assets without a contractual maturity date, it is expected that they will be recovered after more than one year after the balance sheet date.

6.5.5.1 Investments available for sale

Changes in investments available for sale
20212020
At 1 January33,77431,893
Purchases13,51614,366
Repayments-6,658-7,824
Disposal-9,805-5,816
Realised gains through profit or loss429386
Revaluation recognised in equity-845786
(Reversals of) Impairments-13-61
Amortisation-110-189
Exchange rate differences46-98
Changes in the composition of the group-331
At 31 December30,33333,774

a.s.r. has bonds amounting to 3,524 million (2020: 3,844 million) and cash amounting to 1,000 million (2020: 1,450 million) (see chapter 6.5.12) that have been transferred, but do not qualify for derecognition. The majority of these investments are part of a securities lending programme whereby the investments are lent in exchange for a fee with collateral obtained as a security. The collateral furnished as security representing a fair value of 5,383 million (2020: 6,199 million) consists of mortgage loans and corporate and government bonds. See accounting policy S about securities lending.

Prior year changes in the composition of the group relates to the assets acquired through VvAA life and Veherex.

Impairment of investments available for sale

Changes in impairments of investments available for sale
20212020
At 1 January-354-350
Increase in impairments through profit or loss-16-63
Reversal of impairments through profit or loss32
Reversal of impairments due to disposal6857
At 31 December-300-354

The increase in impairments through profit or loss is related to impairments on equities and investment funds, there is no direct link to COVID-19 for these impairments. The reversal of impairments due to disposal mainly relates to the write-off of asset-backed securities and preference shares which were impaired in previous years.

6.5.5.2 Investments at fair value through profit or loss

Changes in investments at fair value through profit or loss
20212020
At 1 January2,8252,831
Purchases336306
Disposal-64-277
Revaluation through profit or loss117-2
Transfer between investments on behalf of policyholders and investments--34
Transfer between investments and investment property21
At 31 December3,2162,825

The developments surrounding COVID-19 had an impact on the value of the retail property fund. The negative revaluation of retail property was mainly compensated by positive revaluations of residential property.

Purchases relate to purchases of interests in mortgage equity fund, real estate equity funds and rural property contracts. Disposals mainly relate to disposals of interests in real estate equity funds.