CNP Assurances: Quarterly Indicators for the Nine Months Ended 30 September 2010
PARIS, November 10, 2010 /PRNewswire-FirstCall/ --
- Premium Income for the First Nine Months up 2.5%
- Attributable net Profit of EUR795 Million
CNP Assurances, the leading personal insurer in France with operations in the rest of Europe and in South America, has announced its quarterly indicators for the first nine months of 2010.
Highlights
- Premium income up 2.5%, reflecting 13% growth in both
personal risk and loan insurance business and stabilized savings
revenues in France.
- Average technical reserves - excluding deferred
participation - up by nearly 9%, with net new money in France a very
positive EUR6.4 billion.
- Attributable net profit of EUR795 million for the nine
months ended 30 September 2010.
Gilles Benoist, Chief Executive Officer, said:
"In the current low-interest rate environment, personal risk and loan insurance are the growth drivers. CNP Assurances has solid positions in these businesses in France and abroad. The launch of a structural partnership with MFPrevoyance during the summer will strengthen our positioning in these segments."
1. Business review for the first nine months of 2010[1]
Consolidated premium income rose by 2.5% to EUR24.6 billion under IFRS (and by 4.2% to EUR25.6 billion under French GAAP). Revenues were boosted by a 24.7% positive currency effect, reflecting the Brazilian real's appreciation against the euro, as well as by the contributions of BVP Spain and Portugal, consolidated since 1 September 2009, and BVP Italy, consolidated since 1 January 2010. Excluding changes in scope of consolidation and exchange rates, premium income was up 0.4% like-for-like.
Like-for-like growth was primarily the result of a 2.7% improvement in savings revenues in the third quarter, coupled with a sustained increase in revenues from pensions contracts and contracts with an insurance risk (mainly personal risk and loan insurance) over the first nine months.
IFRS French GAAP
Premium income 2010 % change 2010 % change
(EURm) (9 months) (9 months)
Savings 18,198.4 - 0.1 18,953.3 + 2.7
Pensions 2,259.2 + 11.7 2,472.2 + 7.3
Personal Risk 1,316.1 + 13.1 1,316.1 + 13.1
Loan Insurance 2,217.8 + 13.2 2,217.8 + 13.2
Health Insurance 386.9 + 6.4 386.9 + 6.4
Property & Casualty 244.9 - 17.9 244.9 - 17.9
TOTAL 24,623.4 + 2.5 25,591.2 + 4.2
Business in France grew by a slight 0.3%, primarily due to higher savings revenue in recent months.
Outside France, premium income climbed 32.1% in Brazil (6.8% in local
currency) and surged 91.3% in Spain following the consolidation of BVP. In
Italy, premiums were maintained at a high EUR2.3 billion after an excellent
performance the previous year, when premium income shot up 154.6% over the
nine months, led by the success of the UniGarantito traditional savings
product.
IFRS French GAAP
Premium 2010 % change 2010 % change
income (9 months) (9 months)
(EURm)
France 19,851.4 + 0.3 20,068.7 - 0.1
Italy (1) 2,286.9 - 0.2 2,523.0 + 8.2
Brazil (2) 1,794.2 + 32.1 2,068.7 + 33.0
Spain (3) 438.1 + 91.3 438.1 + 91.3
Portugal (4) 57.0 - 67.5 296.9 + 69.0
Cyprus/ 147.7 + 5.2 147.8 + 5.3
Greece
Ireland 11.2 - 11.2 -
Other (5) 36.9 - 36.9 -
TOTAL 24,623.4 + 2.5 25,591.2 + 4.2
(1) Italian branches, Cofidis Italy, CNP UniCredit Vita and, since 1 January 2010, BVP Italy.
(2) Based on an average euro exchange rate of BRL2.350 at 30 September 2010.
(3) Spanish branches, Cofidis Spain, CNP Vida and, since 1 September 2009, BVP Spain.
(4) Cofidis Portugal, and, since 1 September 2009, BVP Portugal.
(5) Argentina and Cofidis Belgium, Czech Republic, Greece, Hungary, Slovakia and Romania.
Unit-linked sales continued to improve significantly, rising 191.4% in France (to represent 9.6% of savings and pensions revenue) and 83.3% for the Group as a whole (to account for 15.8% of total savings and pensions revenue).
Growth in reported technical reserves compared with 30 September 2009 was an estimated 7.6%.
- France
In France, premium income climbed 0.3% year-on-year to EUR19.9 billion. The first nine months of 2009 represented a high basis of comparison, due to various promotional campaigns that drove growth of nearly 14% over the period.
Business momentum increased in the third quarter of 2010, when premium income rose 4.2%.
Net new money in France remained structurally positive, at EUR6.4 billion. Healthy growth in technical reserves drove an improvement in the ratio of outflows to reserves.
i. La Banque Postale
La Banque Postale generated premium income of EUR7.8 billion in the first nine months, down a slight 2.4%.
The third quarter saw a strong 14.6% increase in premiums compared with the same period of 2009, along with a shift in mix towards unit-linked sales. In September 2010, the Banque Postale offer was enhanced with the launch of a new high-end life insurance policy, Toscane Vie, aimed at the Bank's private banking customers.
The pensions business continued to grow 25.2%, with 61,000 new contracts sold in the first nine months of 2010. Personal risk premiums saw strong growth as well.
ii. Savings Banks
The Savings Banks generated premium income of EUR8.3 billion, up 3.7%. This growth was achieved despite the high basis of comparison resulting from the 2009 launch of the Livret Assurance Vie.
Unit-linked sales accounted for 15.0% of revenue.
Personal risk premiums rose by a sharp 30.6%, led by sales of the Garantie Urgence and Garantie Famille contracts, as well as by the launch of the Ecureuil Solutions Obseques funeral insurance product.
iii. CNP Tresor
Premium income generated by the CNP Tresor salesforce rose 9.7% to EUR546 million over the first nine months of 2010. This satisfactory performance was largely attributable to special promotional rates offered during the period on unit-linked investments, which accounted for 4.5% of new money.
A variety of marketing initiatives planned for the rest of the year should help to sustain the business.
iv. Companies & Local Authorities
Premium income fell 10.3% to EUR1.3 billion, mainly due to lower pensions revenue.
Death/disability premiums were virtually stable, down 1.6%. Strong sales momentum in the corporate segment should have a positive impact on premium income in the fourth quarter.
Premium income from pensions products dropped 46.2%, reflecting a fall-off in the market following the wave of transfers from supplementary pensions institutions (Institutions de Retraites Supplementaires or IRS) in 2008 and 2009.
v. Financial Institutions
Premium income from financial institutions rose by 3.7% to EUR1.1 billion, as the networks capitalized on very favourable conditions in the property market. The full impact of this positive development should be visible in the coming months given the time lag in recognizing revenue. New partnerships launched in 2010 with Procilia, Barclays Bank France and Credit Municipal de Marseille will further strengthen the business dynamic.
vi. Mutual Insurers
The mutual insurer partnership centre generated premium income of EUR647 million, up 8.1%. CNP Assurances entered into a new partnership with MFPrevoyance in August with the aim of developing personal risk solutions for mutual insurers and strengthening the Group's positioning in this segment.
- International operations
Premium income from operations outside France rose 12.9% to EUR4.8 billion under IFRS, and by 23.7% to EUR5.5 billion under French GAAP[2]. Growth in international markets was fuelled by robust sales in Brazil, a 24.7% positive currency effect due to the real's appreciation against the euro, and the launch of the CNP-BVP partnership with Barclays in the second half of 2009.
Excluding changes in scope of consolidation and exchange rates, premium income was up 1.0% like-for-like under IFRS and 5.9% under French GAAP.
i. CNP UniCredit Vita (Italy)
CNP UniCredit Vita's premium income eased back 3.8% year-on-year to EUR2.2 billion. Sales continued to be dominated by traditional savings products, even though demand for unit-linked products began to pick up gradually. The UniGarantito traditional savings product remained the most popular, representing 68% of sales, while UniOpportunita, a traditional savings product with a 20% unit-linked weighting, represented 11% of the total and UniValore, a pure unit-linked contract, accounted for 8%.
ii. CNP Barclays Vida y Pensiones (Southern Europe)
Operational in Spain and Portugal since September 2009 and in Italy since January 2010, CNP-BVP generated EUR294.7 million in the three countries combined over the nine months ended 30 September 2010. Pensions and savings products with a substantial unit-linked weighting accounted for 78% of the total.
iii. CNP Marfin Insurance Holding (Cyprus/Greece)
Consolidated premium income for CNP Marfin Insurance Holding totalled EUR147.7 million in the first nine-months of 2010, of which 92% was generated in Cyprus. This amount was 5.2% higher than in the year-earlier period, despite the impact of the financial crisis on the region.
iv. Caixa Seguros (Brazil)
Caixa Seguros's contribution to premium income rose 32.1% to EUR1.8 billion, lifted by the favourable effect of the Brazilian real's appreciation against the euro. In local currency, growth came to 6.8%.
The savings, personal risk and loan insurance businesses all experienced double-digit growth. Pensions revenue was up just 1.5% in reals, reflecting the end of a major promotional campaign and stiff competition in the home loan market.
2. Profit indicators - First nine months of 2010[3]
2010
(9 months) EURm
Premium income 24,623
Average technical reserves
(excluding deferred
participation) 271,554
Net insurance revenue 2,044
Gross operating profit (EBIT) 1,398
Net recurring profit before
capital gains 717
Attributable profit 795
Consolidated premium income increased by 2.5% in the first nine months of 2010.
Insurance and financial liabilities totalled EUR277.9 billion at 30 September 2010, an estimated increase of 7.6% compared with 30 September 2009. Average technical reserves excluding deferred participation rose faster, by an estimated 8.7%.
Firm operating performance lifted net insurance revenue to EUR2,044 million and EBIT to EUR1,398 million.
Consolidated profit attributable to equity holders of the parent amounted to EUR795 million for the nine-month period.
3. Solvency capital
The solvency capital requirement under Solvency I was covered 1.16 times by equity and quasi-equity alone. This figure takes into account the EUR750 million subordinated debt issue carried out by the Group on 10 September. Including unrealised capital gains on the various asset classes, the capital requirement was covered 2.43 times.
APPENDICES
PREMIUM INCOME BY PARTNERSHIP CENTRE
IFRS French GAAP
2010 2009 % change 2010 2009 % change
(9 months) (9 months) (9 months) (9 months)
EURm EURm EURm EURm
La Banque
Postale 7,843.2 8,033.1 - 2.4 7,845.8 8,035.8 - 2.4
Savings
Banks 8,292.2 7,997.3 + 3.7 8,293.9 7,998.9 + 3.7
CNP Tresor
Financial
Institutions 545.7 497.6 + 9.7 545.7 504.5 + 8.2
France(1) 1,145.0 1,104.5 + 3.7 1,145.0 1,104.5 + 3.7
Mutual
Insurers 647.0 598.3 + 8.1 647.0 598.3 + 8.1
Companies &
Local 1,259.0 1,403.8 - 10.3 1,471.9 1,685.3 - 12.7
Authorities
Other
(France) 119.4 157.3 - 24.1 119.4 157.3 - 24.1
TOTAL
France 19,851.4 19,791.9 + 0.3 20,068.7 20,084.6 - 0.1
Global
(Portugal)
- Sold in
Q1 2010 - - 143.2 - - 143.2
CNP Seguros
de Vida
(Argentina) (2)11.3 5.5 + 105.4 11.3 5.5 + 105.4
CNP Vida
(Spain) 202.3 199.8 + 1.2 202.3 199.8 + 1.2
Caixa
Seguros
(Brazil) (2)1,794.2 1,357.8 + 32.1 2,068.7 1,554.8 + 33.0
CNP UniCredit
Vita (Italy)2,179.7 2,266.6 - 3.8 2,415.8 2,305.7 + 4.8
Marfin
Insurance
Holding
(Cyprus/Greece)147.7 140.4 + 5.2 147.8 140.4 + 5.3
CNP Europe
(Ireland) 11.2 0.6 - 11.2 4.2 -
BVP Portugal 29.2 - - 269.1 - -
BVP Spain 201.4 - - 201.4 - -
BVP Italy 64.1 - - 64.1 - -
Financial
Institutions
outside France 77.1 88.7 - 13.1 77.1 88.7 - 13.1
Branches 53.7 23.0 + 133.9 53.7 23.0 + 133.9
TOTAL
International4,771.9 4,225.7 + 12.9 5,522.6 4,465.3 + 23.7
TOTAL 24,623.4 24,017.5 + 2.5 25,591.2 24,549.9 + 4.2
(1) Excluding Cofidis outside France.
(2) Average exchange rates:
Argentina: EUR1 = ARS 5.181
Brazil: EUR1 = BRL 2.350
PREMIUM INCOME BY BUSINESS SEGMENT
IFRS
Premium income 2010 2009 % change 2010 % change
(EURm) (9 months)(9 months) (9 months) Like-for-like
Like-for-like (2)
(1)
Savings 18,198.4 18,209.4 - 0.1 18,047.6 - 0.7
Pensions 2,259.2 2,022.5 + 11.7 1,950.0 - 3.6
Personal Risk 1,316.1 1,164.1 + 13.1 1,250.9 + 7.6
Loan Insurance 2,217.8 1,959.5 + 13.2 2,131.7 + 8.8
Health Insurance 386.9 363.7 + 6.4 386.9 + 7.0
Property &
Casualty 244.9 298.4 - 17.9 205.9 + 4.9
TOTAL 24,623.4 24,017.5 + 2.5 23,973.0 + 0.4
French GAAP
Premium income 2010 2009 % change 2010 % change
(EURm) (9 months)(9 months) (9 months) Like-for-like
Like-for- (2)
like (1)
Savings 18,953.3 18,460.3 + 2.7 18,508.7 + 0.5
Pensions 2,472.2 2,304.0 + 7.3 2,163.0 - 6.1
Personal Risk 1,316.1 1,164.1 + 13.1 1,250.9 + 7.6
Loan Insurance 2,217.8 1,959.5 + 13.2 2,131.7 + 8.8
Health Insurance 386.9 363.7 + 6.4 386.9 + 7.0
Property & 244.9 298.4 - 17.9 205.9 + 4.9
Casualty
TOTAL 25,591.2 24,549.9 + 4.2 24,647.1 + 1.0
The above figures include premium income from MIH in Cyprus only since 18 December 2008, from BVP in Spain and Portugal since 1 September 2009 and from BVP in Italy since 1 January 2010.
(1) Average exchange rates:
At 30 September 2010 EUR1 = BRL 2.350
At 30 September 2009 EUR1 = BRL 2.907
(2) At constant scope of consolidation and exchange rates: excluding
Global/Global Vida/BVP; based on exchange rates at 30 September 2009.
UNIT-LINKED SALES
IFRS French GAAP
2010 2009 % change 2010 2009 % change
(9 months)(9 months) (9 months)(9 months)
EURm EURm EURm EURm
La Banque Postale 378.2 236.5 + 59.9 380.8 239.2 + 59.2
Savings Banks 1,181.2 276.1 + 327.8 1,182.9 277.8 + 325.9
CNP Tresor 23.6 14.5 + 62.8 23.6 21.4 + 10.4
Other 5.7 7.6 - 25.9 5.7 7.6 - 25.9
TOTAL individual
products France 1,588.7 534.8 + 197.1 1,592.9 546.0 + 191.8
Group products France 23.1 18.4 + 26.0 236.1 299.8 - 21.3
TOTAL France 1,611.8 553.1 + 191.4 1,829.0 845.8 + 116.2
CNP UniCredit Vita 253.5 179.9 + 40.9 489.6 218.9 + 123.6
Caixa Seguros 1,089.0 867.4 + 25.6 1,089.0 867.4 + 25.6
CNP Vida 106.9 104.8 + 2.0 106.9 104.8 + 2.0
Marfin Insurance
Holdings 52.2 57.6 - 9.3 52.4 57.6 - 9.0
CNP Europe 11.2 0.6 - 11.2 4.2 + 167.9
BVP Portugal - - - 239.9 - -
BVP Spain 69.9 - - 69.9 - -
BVP Italy 37.9 - - 37.9 - -
TOTAL International 1,620.7 1,210.3 + 33.9 2,096.9 1,253.0 + 67.4
TOTAL unit-linked 3,232.5 1,763.4 + 83.3 3,925.9 2,098.8 + 87.1
PREMIUM INCOME BY INSURANCE CATEGORY
IFRS French GAAP
2010 2009 % change 2010 2009 % change
(9 months) (9 months) (9 months) (9 months)
EURm EURm EURm EURm
Individual 20,315.8 19,902.4 + 2.1 21,070.7 20,153.2 + 4.6
Insurance
Group Insurance 4,307.6 4,115.2 + 4.7 4,520.6 4,396.7 + 2.8
TOTAL 24,623.4 24,017.5 + 2.5 25,591.2 24,549.9 + 4.2
<start_table>
PREMIUM INCOME BY COUNTRY AND BY BUSINESS SEGMENT
IFRS
Savings Pensions
EURm 9 mos. % chg. 9 mos. 2010 % chg.
2010
France 15,660.5 -0.1 1,054.4 -6.5
Italy (1) 2,157.8 -2.3 13.6 -9.2
Portugal (2) 11.2 -69.9 0.0 -
Spain (3) 247.7 29.2 94.8 -
Cyprus/Greece 56.4 -4.8 0.0 -
Ireland 11.2 - 0.0 -
Other (Europe) (4) 0.0 - 0.0 -
Brazil 50.9 52.4 1,096.4 25.3
Argentina 2.8 44.1 0.0 -
Sub-total International 2,538.0 0.2 1,204.8 34.7
TOTAL 18,198.4 -0.1 2,259.2 11.7
(table continues)
Personal Risk Loan Insurance
EURm 9 mos. 2010 % chg. 9 mos. 2010 % chg.
France 990.1 5.0 1,774.9 4.7
Italy (1) 5.5 13.9 110.1 70.6
Portugal (2) 1.6 -16.6 44.3 36.4
Spain (3) 8.0 - 87.6 166.5
Cyprus/Greece 25.1 15.6 5.4 238.1
Ireland 0.0 - 0.0 -
Other (Europe) (4) 0.0 - 25.6 4.5
Brazil 281.7 48.3 165.8 52.9
Argentina 4.2 40.0 4.3 681.8
Sub-total International 326.1 47.3 442.9 67.2
TOTAL 1,316.1 13.1 2,217.8 13.2
(table continues)
Health Insurance Property & Casualty Total
EURm 9 mos. % 9 mos. % chg. 9 mos. %
2010 chg. 2010 2010 chg.
France 371.6 6.5 0.0 - 19,851.4 0.3
Italy (1) 0.0 - 0.0 - 2,286.9 -0.2
Portugal
(2) 0.0 - 0.0 - 57.0 -67.5
Spain (3) 0.0 - 0.0 - 438.1 91.3
Cyprus/
Greece 15.3 21.8 45.5 0.4 147.7 5.2
Ireland 0.0 - 0.0 - 11.2 -
Other
(Europe)
(4) 0.0 - 0.0 - 25.6 4.5
Brazil 0.0 - 199.4 32.2 1,794.2 32.1
Argentina 0.0 - 0.0 - 11.3 105.4
Sub-total
International 15.3 4.5 244.9 -17.9 4,771.9 12.9
TOTAL 386.9 6.4 244.9 -17.9 24,623.4 2.5
(1) Loan insurance in Italy comprises the Italian branches, CNP UniCredit Vita, CNP BVP, and Cofidis Italy.
(2) Loan insurance in Portugal comprises BVP Portugal since 1 September 2009 and Cofidis Portugal.
(3) Spanish branches, Cofidis Spain, CNP Vida and, since 1 September 2009, BVP Spain.
(4) Corresponds to Cofidis business in Europe, excluding Italy, Portugal and Spain.
CNP UNICREDIT VITA PREMIUM INCOME
EURm IFRS French GAAP
Market Segment 2010 % change 2010 % change
(9 months) (9 months)
Savings 2,102.4 - 4.8 2,338.4 + 4.1
Pensions 13.6 - 9.2 13.6 - 9.2
Personal Risk 5.5 + 13.9 5.5 + 13.9
Loan Insurance 58.2 + 49.5 58.2 + 49.5
TOTAL 2,179.7 - 3.8 2,415.8 + 4.8
CAIXA SEGUROS PREMIUM INCOME
BRLm IFRS French GAAP
Market Segment 2010 % change 2010 % change
(9 months) (9 months)
Savings 119.2 + 23.3 762.5 + 13.6
Pensions 2,579.4 + 1.5 2,579.4 + 1.5
Personal Risk 661.7 + 19.9 661.7 + 19.9
Loan Insurance 388.3 + 22.9 388.3 + 22.9
Property & 467.3 + 6.1 467.3 + 6.1
Casualty
TOTAL 4,215.8 + 6.8 4,859.1 + 7.5
Investor Calendar
- 2010 premium income and net profit: 23 February 2011 (7:30am)
- First-quarter 2011 premium income and profit indicators: 9 May
2011 (7:30 am)
- First-half 2011 premium income and net profit: 29 July 2011 (7:30am)
- Nine-month 2011 premium income and profit indicators: 9 November
2011 (7:30 am)
- Annual General Meeting: 6 May 2011 (2:30 pm)
This press release, as well as the consolidated financial statements and the management report, are available in French and English on the CNP Assurances financial web site, http://www.cnp-finances.fr.
Disclaimer Some of the statements contained in this press release may be forward-looking statements referring to projections, future events, trends or objectives that, by their very nature, involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated in such statements by reason of factors such as changes in general economic conditions and conditions in the financial markets, legal or regulatory decisions or changes, changes in the frequency and amount of insured claims, particularly as a result of changes in mortality and morbidity rates, changes in surrender rates, interest rates, foreign exchange rates, the competitive environment, the policies of foreign central banks or governments, legal proceedings, the effects of acquisitions and the integration of newly-acquired businesses, and general factors affecting competition. Further information regarding factors which may cause results to differ materially from those projected in forward-looking statements is included in CNP Assurances' filings with the Autorite des Marches Financiers. CNP Assurances does not undertake to update any forward-looking statements presented herein to take into account any new information, future event or other factors.
[1] Unless otherwise specified, all figures and growth rates are under IFRS.
[2] Differences in premium income between French GAAP and IFRS are due to the fact that for investment contracts without DPF, only the loading is recognized in revenue in the IFRS accounts, in accordance with IAS 39. The countries most impacted by the application of IAS 39 are Italy and Portugal.
[3] This is the first time that CNP Assurances is publishing quarterly indicators, with the result that comparative indicators for the first nine months of 2009 are not provided.
Press Relations
Florence de Montmarin
+33(0)142-18-86-51
Tamara Bernard
+33(0)1-42-18-86-19
E-mail : [email protected]
Investor and Analyst Relations
Jim Root
+33(0)1-42-18-71-89
Jean-Yves Icole
+33(0)1-42-18-94-93
E-mail: [email protected]
CNP Assurances
SOURCE CNP Assurances
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