PARIS, November 6 /PRNewswire-FirstCall/ --
- Premium Income for the First Nine Months up 17.6% to EUR24,551 Million
- Advances in all Operating Regions
CNP Assurances, the leading personal insurer in France, with operations
in the rest of Europe and in South America, has announced its premium income
for the first nine months of 2009.
Highlights
- Gross new money up 17.6%.
- Strong momentum in France, up 13.7%.
- Sustained growth in international markets, up 39.3%.
- Net new money in France at EUR7.4 billion
- Further growth in technical reserves, up by around 6% vs. 30
September 2008.
Gilles Benoist, Chief Executive Officer, said:
"In a less morose economic and financial environment, CNP Assurances
reported growth in all its markets. In France, La Banque Postale maintained
its solid performance, while the Savings Banks achieved a resounding return
to growth in a more vibrant savings and pensions market. Premiums also
increased outside France, particularly in Italy, Spain and Brazil."
1 - Business review for the first nine months of 2009
1.1 - Consolidated revenue
Premium income under French GAAP rose by 17.6% to EUR24,551 million. In
France, CNP Assurances' main market, premium income was up 13.7%. Outside
France, Italy rebounded, with premiums up 57.7%, and Brazil reported
sustained growth of 22% in local currency.
Revenue under IFRS amounted to EUR24,287 million, representing an
increase of 21% over the year earlier period.
Technical reserves were around 6% higher at 30 September 2009 compared to
30 September 2008. 1.2 - Revenue by business segment
French GAAP premium income rose significantly, led by:
- a 19.9% increase in the Savings segment, reflecting growth
of 14.7% in France and 64.6% in Italy; and
- a 29.8% increase in the Pensions segment. Pensions revenue in France
surged by 43.3% following a change in the law requiring companies that
had their own supplementary pension institution (IRS) to transfer
their commitments to an insurance company. A major transfer during the
period concerned the Shell IRS. Outside France, pensions revenue in
Brazil was up by a strong 14%.
The personal risk segment declined by a slight 5.5%, due primarily to the
loss of a re-insurance treaty with mutual insurance companies, already
mentioned in the first quarter report.
Unit-linked sales contracted by 54.4% over the first nine months to
EUR1,829 million; however, the trend slowed in the latter part of the period.
The lower sales were mainly due to clients' continued preference for lower
risk products despite an upturn in the financial markets.
IFRS French GAAP
Premium income 2009 % change 2009 % change
(EURm) (9 months) (9 months)
Savings 18,209.4 + 24.8 18,460.3 + 19.9
Pensions 2,291.9 + 29.2 2,304.0 + 29.8
Personal Risk 1,164.1 - 5.6 1,165.3 - 5.5
Loan Insurance 1,959.5 + 0.9 1,959.5 + 0.9
Health Insurance 363.7 + 39.4 363.7 + 39.4
Property & Casualty 298.4 + 11.9 298.4 + 11.9
TOTAL 24,286.9 + 21.0 24,551.1 + 17.6
1.3 - By country and partner network
IFRS French GAAP
Premium income 2009 % change 2009 % change
(EURm) (9 months) (9 months)
France 20,061.2 + 13.6 20,085.8 + 13.7
Italy (1) 2,292.2 + 154.6 2,331.2 + 57.7
Brazil (2) 1,357.8 + 14.4 1,554.8 + 11.7
Portugal (3) 175.7 + 11.7 175.6 + 4.3
Spain (4) 229.0 + 64.2 229.0 + 64.2
Cyprus/Greece 140.4 - 140.4 -
Ireland 0.6 - 4.2 -
Other (5) 29.9 - 29.9 -
TOTAL 24,286.9 + 21.0 24,551.1 + 17.6
(1) Italian branches, Cofidis business in Italy and CNP Vita.
(2) Based on exchange rates at 30 September 2009.
(3) Global, Global Vida and Cofidis business in Portugal.
(4) Spanish branches, Cofidis business in Spain and CNP Vida.
(5) Argentina and Cofidis business in Belgium, Czech Republic,
Greece and Hungary.
France
According to estimates published by the industry federation (FFSA), the
French savings and pensions market generated EUR104 billion in new money
under French GAAP, representing an increase of 10% over the nine-month
period. The trend towards insurance-based products was mainly driven by low
short-term interest rates, including on Livret A passbook savings accounts
which offer a yield of just 1.25%. Net new money for the French market as a
whole climbed a strong 37% over the nine-month period to EUR41.5 billion, and
market technical reserves were 6% higher than at 30 September 2008.
CNP Assurances' premium income for the first nine months of 2009 rose by
13.7% to EUR20,086 million under French GAAP and by 13.6% to EUR20,061
million under IFRS. The Group continued to outperform the French savings and
pensions market, thanks to strong performances from the La Banque Postale and
Savings Banks networks, as well as sustained growth in the Companies & Local
Authorities segment.
Net new money in France amounted to EUR7.4 billion, a year-on-year
increase of 48%, and the ratio between withdrawals and technical reserves
remained unchanged.
Unit-linked sales fell 68% to EUR576 million due to clients' continued
marked preference for lower risk products. However, the drop was less steep
than in the six months to 30 June, and the proportion of unit-linked sales in
the three main networks' savings and pensions revenue was up a slight 3.4%
over the first half.
In France, the main growth areas for the nine months to 30 September 2009
were:
 La Banque Postale
After achieving strong growth in the first half, La Banque Postale
continued to perform well, reporting a 10.2% increase in premium income for
the first nine months of 2009 to EUR8,037 million Various marketing
initiatives have been deployed to sustain the growth dynamic in the last
quarter, in both the personal risk and unit-linked savings segments.
 Savings Banks
With sales growth accelerating in the third quarter, the Savings Banks
generated premium income of EUR7,999 million in the nine months to 30
September 2009, up 17.1% over the period. The successful launch of the Livret
Assurance Vie savings product was a significant growth driver. Personal risk
premiums rose by 8.3%.
 Companies & Local Authorities
Premium income from the Companies & Local Authorities partnership centre
surged 40.6% to EUR1,685 million, with the personal risk business enjoying
sustained growth thanks to a new contract with Veolia. The strong performance
by the pensions segment during the nine-month period reflected the fact that
CNP Assurances was selected by the AFD-IEDOM and Shell IRS supplementary
pension institutions to take over their obligations following a change in the
law.
International operations
New money from international operations rose by 39.3% to EUR4,465 million
under French GAAP and by 75.2% to EUR4,226 million under IFRS. Unit-linked
sales fell 42.5% due to a collapse in demand in the Italian market, but
increased in Brazil (up 14.3%) and Spain (CNP Vida up 122.3%).
 Europe - Italy - CNP Vita
The Italian life insurance market achieved record growth of 34% in the
first eight months of year, generating total revenue of EUR42 billion thanks
to a strong surge in sales of non-unit-linked products, which accounted for
80% of new business. Index-linked and unit-linked products have waned in
popularity and the major banking networks are now focusing on products whose
performance is not linked to that of the financial markets.
Benefiting from this trend, CNP Vita reported premium income of EUR2.3
billion for the nine-month period, an increase of 60.9% under French GAAP and
164.8% under IFRS[1]. Growth was driven by the considerable success of the
non-unit-linked Unigarantito product, which generated more than EUR2 billion
in revenue during the period.
CNP Vita Premium Income - First Nine Months of 2009
EURm IFRS French GAAP
Market segment 2009 2008 % change 2009 2008 % change
(9 (9 (9 (9
months) months) months) months)
Savings 2,207.8 787.5 + 180.4 2,246.9 1,364.9 + 64.6
Pensions 15.0 17.8 - 16.1 15.0 17.8 - 16.1
Personal Risk 4.9 4.0 + 21.1 4.9 4.0 + 21.1
Loan Insurance 38.9 46.5 - 16.3 38.9 46.5 - 16.3
TOTAL 2,266.6 855.9 + 164.8 2,305.7 1,433.3 + 60.9
 Europe - Spain - CNP Vida
Premium income from CNP Vida increased by 86.2% to EUR200 million. Nearly
all segments reported growth, which was driven mainly by the campaigns
currently underway with two savings banks, Cajasol and Caja Canarias.
 Europe - Greece and Cyprus - CNP Marfin Insurance Holding
This subsidiary, acquired in late 2008, generated premium income of
EUR140 million in the nine months to 30 September 2009, representing an
increase of 13.5% compared to the prior-year period (when it was not
consolidated by CNP).
 Latin America - Brazil - Caixa Seguros
Caixa Seguros generated premium income of BRL 4,522 million in the first
nine months, up 22.0%. All segments reported gains, and the pensions segment
maintained its momentum with an increase of 24.3%.
Caixa Seguros Premium Income - First Nine Months of 2009
BRLm IFRS French GAAP
Market segment 2009 2008 % 2009 2008 %
(9 (9 change (9 (9 change
months) months) months) months)
Savings 96.7 52.4 + 84.6 671.1 598.7 + 12.1
Pensions 2,542.5 2,045.2 + 24.3 2,542.5 2,045.2 + 24.3
Personal Risk 551.9 389.4 + 41.7 551.9 389.4 + 41.7
Loan Insurance 316.0 244.2 + 29.4 316.0 244.2 + 29.4
Property & Casualty 440.5 429.5 + 2.6 440.5 429.5 + 2.6
TOTAL 3,947.6 3,160.6 + 24.9 4,522.0 3,707.0 + 22.0
2 - Financial position
At 30 September 2009, the estimated solvency capital requirement under
Solvency I was covered around 2 times[2] including unrealised gains and
around 1.14 times2 by equity and quasi-equity alone.
3 - General business environment
3.1 Financial market environment in the first nine months
The French stock market gained 17.9% in the first nine months of the
year, with the CAC 40 index rising to 3795 points. Following uncertainty in
the first quarter regarding the situation of the banking sector and the
government's likely response to the financial crisis (driving the CAC 40 to a
low of 2465 on 9 March), the Paris Bourse recovered in the second and third
quarters (recording gains of 11.9% and 20.9%, respectively), to reach a high
of 3857 on 22 September. The rebound was fuelled mainly by signs of a global
economic recovery (with a return to positive GDP growth in France, Germany
and Japan in the second quarter, combined with better-than-expected corporate
earnings reports), upbeat statements by the Fed, a commitment by the G20 to
strengthen global financial regulation and a resumption in mergers and
acquisitions activity.
Between January and May, the European Central Bank lowered its key
interest rate from 2.50% to 1%, where it has remained ever since. Since early
2009, the 10-year OAT rate has risen by 13 basis points to 3.54%, with a low
of 3.39% on 15 January and a high of 4.05% on 5 June. The three-month Euribor
fell by 214 basis points over the nine months to 0.75%.
Since the start of the year, the euro has gained 5.22% against the
dollar, at $1.46, while the Brazilian real has gained 19.38% against the euro.
Financial market indicators at 30 September 2009
30 September 31 December 30 June 30 September
2008 2008 2009 2009
CAC 40 4.032 3.217 3.140 3.795
Eurostoxx50 3.038 2.451 2.402 2.873
3-month Euribor 5.28% 2.89% 1.10% 0.75%
10-year OAT 4.26% 3.41% 3.72% 3.54%
EUR1 in $ 1.43 1.39 1.41 1.46
EUR1 in BRL 2.81 3.25 2.76 2.62
3.2 Regulatory and tax environment
France's social security financing bill calls for the abolition of the
existing provision exempting non-unit-linked/unit-linked savings policies
from social charges following the policyholder's death. 3.3 - Significant
events of the third quarter
- CNP Assurances and Barclays announced on 25 June the creation of a
long-term bancassurance partnership in southern Europe. The
agreement includes:
- The acquisition by CNP of a 50% stake in Barclays' life
insurance subsidiary Barclays Vida y Pensiones (BVP).
- Exclusive rights to distribute a comprehensive range of life
insurance and pension products via Barclay's sales network in Spain,
Portugal and Italy.
The transaction was completed on 10 September.
- CNP Assurances released its first-half results on 31 July 2009. Net
profit amounted to EUR502 million, market consistent embedded value[3]
came to EUR70.9 a share and the solvency ratio[4] was stable at 11.4
times the regulatory minimum based on tier one capital (and 13.7 times
including unrealised gains).
France's foremost personal insurer, CNP Assurances will consolidate its
leadership position in 2009 by maintaining its disciplined approach to
financial management, and will focus its efforts on building its technical
reserves and controlling costs.
This financial press release is available for consultation, in French and
English, on the CNP Assurances web site 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 which, 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] The difference between the 60.9% growth under French GAAP and the
164.8% growth under IFRS is due to a strong distortion that appeared
in the 2008 accounts as a result of a shift in CNP Vita's product
mix. While a large part of the product mix came under IAS 39 in 2008,
the Unigarantito product, sold widely in 2009, is accounted for in
accordance with IFRS 4.
[2] Based on unaudited data
[3] Unaudited
[4] Unaudited
APPENDICES:
PREMIUM INCOME FOR THE FIRST NINE MONTHS OF 2009
CONSOLIDATED PREMIUM INCOME BY PARTNERSHIP CENTRE
IFRS French GAAP
2009 2008 % 2009 2008 %
(9 months) (9 months) change (9 months) (9 months) Change
EURm EURm EURm EURm
French Post
Office 8,033.1 7,286.4 + 10.2 8,037.1 7,291.5 + 10.2
Savings Banks 7,997.3 6,828.6 + 17.1 7,998.9 6,830.7 + 17.1
CNP Tresor 497.6 523.8 - 5.0 504.5 524.1 - 3.8
Financial
institutions
France(1) 1,104.5 1,088.9 + 1.4 1,104.5 1,088.9 + 1.4
Mutual
insurers 598.3 667.9 - 10.4 598.3 667.9 - 10.4
Companies
and local
authorities 1,673.2 1,197.7 + 39.7 1,685.3 1,198.3 + 40.6
Other (France) 157.3 66.2 + 137.8 157.3 66.2 + 137.8
TOTAL France 20,061.2 17,659.5 + 13.6 20,085.8 17,667.6 + 13.7
Global
(Portugal) 143.2 123.4 + 16.0 143.2 134.5 + 6.5
CNP Seguros
de Vida
(Argentina)(2) 5.5 4.4 + 25.8 5.5 4.4 + 25.8
CNP Vida
(Spain) 199.8 107.3 + 86.2 199.8 107.3 + 86.2
Caixa Seguros
(Brazil)(2) 1,357.8 1,186.5 + 14.4 1,554.8 1,391.6 + 11.7
CNP Vita
(Italy) 2,266.6 855.9 + 164.8 2,305.7 1,433.3 + 60.9
Marfin
Insurance
Holdings
(Cyprus) 140.4 - - 140.4 - -
CNP Europe
(Ireland) 0.6 - - 4.2 - -
International
financial
institutions 88.7 89.8 - 1.2 88.7 89.8 - 1.2
International
branches 23.0 44.3 - 48.2 23.0 44.3 - 48.2
TOTAL
International 4,225.7 2,411.7 + 75.2 4,465.3 3,205.2 + 39.3
TOTAL 24,286.9 20,071.2 + 21.0 24,551.1 20,872.8 + 17.6
(1) Excluding Cofidis outside France
(2) Average exchange rate
Argentina: EUR1 = ARS 5.27741
Brazil: EUR1 = BRL 2.90729
PREMIUM INCOME BY BUSINESS SEGMENT
IFRS
Premium 2009 % change
income (EURm) (9 months) pro
2009 2008 % pro forma forma at
(9 months) (9 months) change at constant constant
exchange exchange
rates(1) rates
Savings 18,209.4 14,593.6 + 24.8 18,152.7 + 24.4
Pensions 2,291.9 1,774.3 + 29.2 2,371.0 + 33.6
Personal Risk 1,164.1 1,233.7 - 5.6 1,159.8 - 6.0
Loan Insurance 1,959.5 1,941.9 + 0.9 1,968.1 + 1.4
Health Insurance 363.7 261.0 + 39.4 351.1 + 34.5
Property & Casualty 298.4 266.7 + 11.9 267.5 + 0.3
TOTAL 24,286.9 20,071.2 + 21.0 24,270.2 + 20.9
French GAAP
Premium 2009 % change
income (EURm) (9 months) pro
2009 2008 % pro forma forma at
(9 months) (9 months) change at constant constant
exchange exchange
rates(1) rates
Savings 18,460.3 15,394.6 + 19.9 18,418.5 + 19.6
Pensions 2,304.0 1,774.9 + 29.8 2,383.1 + 34.3
Personal Risk 1,165.3 1,233.7 - 5.5 1,161.1 - 5.9
Loan Insurance 1,959.5 1,941.9 + 0.9 1,968.1 + 1.4
Health Insurance 363.7 261.0 + 39.4 318.4 + 22.0
Property & Casualty 298.4 266.7 + 11.9 300.2 + 12.6
TOTAL 24,551.1 20,872.8 + 17.6 24,549.4 + 17.6
Premium income in Cyprus only included as of first quarter 2009
(1) Exchange rate on 30 September 2008
Average exchange rates for Brazil:
30 September 2009 EUR1 = BRL 2.90729
30 September 2008 EUR1 = BRL 2.66391
UNIT-LINKED SALES
IFRS French GAAP
2009 2008 2009 2008
(9 months) (9 months) % (9 months) (9 months) %
EURm EURm change EURm EURm change
French Post 236.5 628.1 - 62.3 239.2 633.1 - 62.2
Office
Savings Banks 276.1 1,118.5 - 75.3 277.8 1,120.6 - 75.2
CNP Tresor 14.5 49.3 - 70.6 21.4 49.6 - 56.9
Other 7.6 14.0 - 45.2 7.6 14.0 - 45.2
TOTAL individual
products France 534.8 1,809.8 - 70.5 546.0 1,817.3 - 70.0
Group products
France 18.4 11.3 + 61.8 30.5 11.3 + 168.6
TOTAL France 553.1 1,821.2 - 69.6 576.4 1,828.7 - 68.5
CNP Vita 179.9 784.7 - 77.1 218.9 1,362.2 - 83.9
Caixa Seguros 867.4 759.1 + 14.3 867.4 759.1 + 14.3
CNP Vida 104.8 47.1 + 122.3 104.8 47.1 + 122.3
Global Vida 0.0 0.0 - - 11.1 - 100.0
Marfin Insurance 57.6 - - 57.6 - -
Holdings (Cyprus)
CNP Europe 0.6 - - 4.2 - -
TOTAL
International 1,210.3 1,591.0 - 23.9 1,253.0 2,179.5 - 42.5
TOTAL
unit-linked 1,763.4 3,412.2 - 48.3 1,829.4 4,008.1 - 54.4
PREMIUM INCOME BY INSURANCE CATEGORY
IFRS French GAAP
2009 2008 2009 2008
(9 months) (9 months) % (9 months) (9 months) %
EURm EURm change EURm EURm change
Individual
Insurance 19,902.4 16,188.9 + 22.9 20,154.4 16,990.0 + 18.6
Group Insurance 4,384.5 3,882.2 + 12.9 4,396.7 3,882.8 + 13.2
TOTAL 24,286.9 20,071.2 + 21.0 24,551.1 20,872.8 + 17.6
PREMIUM INCOME BY COUNTRY AND BY BUSINESS SEGMENT
IFRS
Savings Pensions Personal Risk
EURm 9 mos. % 9 mos. % 9 mos. %
2009 change 2009 change 2009 change
France 15,677.5 14.7 1,397.4 42.2 942.7 -12.6
Italy(1) 2,207.8 180.4 15.0 -16.1 4.9 2.9
Portugal(2) 37.1 164.7 0.0 - 1.9 -1.2
Spain(3) 191.8 89.3 4.4 -21.2 0.0 -
Cyprus 59.3 - 0.0 - 21.7 -
Ireland 0.6 - 0.0 - 0.0 -
Other
(Europe)(4) 0.0 - 0.0 - 0.0 -
Brazil 33.4 69.9 875.2 14.0 189.9 30.0
Argentina 1.9 1.7 0.0 - 3.0 25.6
Subtotal
International 2,531.9 173.9 894.5 13.0 221.4 42.7
TOTAL 18,209.4 24.8 2,291.9 29.2 1,164.1 -5.6
Table Continued Below
IFRS
Loan Health Property & Total
Insurance Insurance Casualty
EURm 9 mos. % 9 mos. % 9 mos. % 9 mos. %
2009 change 2009 change 2009 change 2009 change
France 1,694.6 1.5 349.0 34.8 0.0 - 20,061.2 13.6
Italy(1) 64.5 -28.6 0.0 - 0.0 - 2,292.2 154.6
Portugal(2) 32.5 -4.1 2.1 6.0 102.1 -3.2 175.7 11.7
Spain(3) 32.9 1.2 0.0 - 0.0 - 229.0 64.2
Cyprus 1.6 - 12.5 - 45.3 - 140.4 -
Ireland 0.0 - 0.0 - 0.0 - 0.6 -
Other
(Europe)(4) 24.4 3.4 0.0 - 0.0 - 24.4 3.4
Brazil 108.4 18.3 0.0 - 150.9 -6.4 1,357.8 14.4
Argentina 0.5 707.1 0.0 - 0.0 - 5.5 25.8
Subtotal
International 264.9 -2.6 14.6 646.6 298.4 11.9 4,225.7 75.2
TOTAL 1,959.5 0.9 363.7 39.4 298.4 11.9 24,286.9 21.0
(1) Loan insurance in Italy comprises the Italian branches and Cofidis
business in Italy.
(2) Global, Global Vida and, under "Loan Insurance", Cofidis business in
Portugal.
(3) Spanish branches, Cofidis business in Spain and CNP Vida.
(4) Corresponds to Cofidis business in Europe, excluding Italy, Portugal
and Spain.
SOURCE CNP Assurances
Press Relations: Sophie Messager, +33(0)1-42-18-86-51; Tamara Bernard,
+33(0)1-42-18-86-19, E-mail: servicepresse@cnp.fr; 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: infofi@cnp.fr
