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CNP Assurances: First-Half 2014 Results

PARIS, July 31, 2014 /PRNewswire/ --

Attributable net profit for first-half 2014 up 3.0% to €601 million  

CNP Assurances, the leading personal insurer in France with operations in the rest of Europe and in Latin America, has announced its revenue and results for the first half of 2014. The results were approved for publication by the Board of Directors on 30 July 2014.

HIGHLIGHTS 

  • Attributable net profit up 3.0% to €601 million    
  • A first half that gives shape to the Group's strategic goals: 

    - Continued improvement in product mix
    - An enhanced product offering
    - A long-term strategic partnership agreement signed with Banco Santander in Europe
  • Sustained momentum with premium income up 12.5% to €15.8 billion 
  • Revenue up 1.8% to €1,625 million 
  • EBIT up 3.2% to €1,188 million  
  • MCEV® at €23.8 per share, 6% higher than at 31 December 2013 after dividends 
  • Solvency I ratio: 374% (119% excluding unrealised gains) 

Frédéric Lavenir, CNP Assurances's Chief Executive Officer, said: 

"With EBIT up 10.4% on a like-for-like basis, our robust operational performance in the first half of 2014 reflects the effectiveness of the Group's strategy." 

 

1. First-half 2014 business and margin review 

On an IFRS basis, first-half 2014 premium income to €15.8 billion, up 12.5% as reported and 14.2% at comparable scope of consolidation and constant exchange rates (like-for-like). The Group reported positive net new money* of €2.2 billion for the period.  

In France, premium income rose 19.7% to €12.4 billion, led by growth in the savings business, underpinned by a 58.7% surge in unit-linked sales that lifted their contribution to savings and pensions premiums to 11.6%. The personal risk/protection business (corresponding to death & disability, health and term creditor insurance) expanded 3.0% in the first half of 2014, reflecting strong momentum across the whole range. Life and pensions net new money in France was a positive €693 million, including a €568 million net inflow to unit-linked contracts and a €125 million net inflow to traditional savings products.

In Latin America, premium income dropped 14.2% to €1.4 billion in the first half of 2014, reflecting three main trends:

  • A decline in pensions business
  • Strong growth in personal risk/protection business
  • Unfavourable exchange rates

Premium income generated in Europe excluding France amounted to €2 billion. Excluding the high basis of comparison created by the €420 million group pensions contract sold in the first quarter of 2013, growth stood at 22.4%, driven primarily by the savings/pensions business.  

The new business margin stood at 12.4% in the first half of 2014. This was slightly below last year's rate of 14.1% despite continued improvement in the product mix, due to the effects of the economic climate (lower interest rates). The annualised value of new business rose by 4.2% compared with 2013.

Average technical reserves grew by 2.8% over the period, to €305.4 billion at 30 June. 

 

2. First-half 2014 results 

Net insurance revenue stood at €1,198 million for the period, up 1.7% as reported and 9.3% like-for-like.

Net insurance revenue in France rose 7.0%, lifted by the personal risk/protection business.

In Latin America, unfavourable exchange rates continued to adversely affect net insurance revenue, which contracted by 4.2% despite strong sales momentum (up 13.5% on a like-for-like basis) sustained by the personal risk/protection business.

In Europe excluding France, net insurance revenue increased by 1.0%.

* French GAAP 

Revenues from own funds portfolios rose by 2.0% as reported and by 4.6% like-for-like, to €427 million.

Total revenue for the period came to €1,625 million, an increase of 1.8% as reported and 8.0% like-for-like.  

The Group's cost/income ratio continued to improve, going from 37.8% in the first half of 2013 to 36.5% in the first half of 2014, thanks to tight control of administrative expenses, which were down 1.7% as reported and up 2% like-for-like.

At €1,188 million, EBIT was up 3.2% as reported and 10.4% like-for-like.

Attributable net profit for the period was 3.0% higher at €601 million. 

Consolidated equity (excluding minority interests) totalled €15,497 million at 30 June 2014, an increase of 9.9% compared with 31 December 2013 (after dividends).  

MCEV® amounted to €16.4 billion or €23.8 per share, a 6% increase compared with the value at 31 December 2013 (after dividends).

The Solvency I coverage rate stood at 374%. Excluding unrealised capital gains, the rate was 119%.

Under Solvency II, the estimated coverage rate was 175%.

The acquisition of a 51% stake in Santander Consumer Finance's insurance subsidiaries should have an impact of around 3 points on the Group's solvency ratios.


                                                                           % Change
                                        H1 2014   H1 2013   % Change  (like-for-like)(1)
    (in EUR millions)
    Premium income (IFRS)                15,764    14,010     + 12.5        + 14.2
    Average technical reserves
    excl. deferred participation        305,361   296,910      + 2.8         + 3.4
    Net revenue                           1,625     1,596      + 1.8         + 8.0
    Net insurance revenue, of which:      1,198     1,178      + 1.7         + 9.3
    France                                  621       581      + 7.0          +7.0
    Latin America                           481       502      - 4.2        + 13.5
    Europe excluding France                  97        96      + 1.0         + 1.0
    Revenue from own funds portfolios       427       419      + 2.0         + 4.6
    - Administrative expenses, of which:  - 437     - 445      - 1.7         + 2.0
    France                                - 292     - 289      + 1.1         + 1.1
    Latin America                          - 99     - 106      - 6.1         + 9.8
    Europe excluding France                - 46      - 50      - 8.8         + 1.0
    EBIT                                  1,188     1,152      + 3.2        + 10.4
    - Finance costs                        - 83      - 75     + 11.4        + 11.4
    + Share of profits of associates          1         0        n.m.          n.m.
    - Income tax expense                  - 412     - 386      + 6.8        + 15.0
    - Minority interests                  - 152     - 161      - 5.5        + 10.4
    Recurring profit before
    capital gains and losses                542       529      + 2.3         + 6.8
    Net realised gains on equities
    and investment property, AFS and
    fair value adjustments                   58        42     + 40.2        + 41.5
    Non-recurring items                       1        12        n.m.          n.m.
    Net profit attributable to
    equity holders of the parent            601       583      + 3.0         + 7.2

(1) Average exchange rates for Brazil:

At 30 June 2014: €1 = BRL 3.15

At 30 June 2013: €1 = BRL 2.67

 

INVESTOR CALENDAR 

- Nine-month 2014 results indicators: Wednesday, 5 November 2014 at 7:30 am.

This press release, along with all of CNP Assurances's regulated information published in accordance with Article L.451-1-2 of the Monetary and Financial Code and Articles 222-1 et seq. of the Autorité des Marchés Financiers' general rules, may be downloaded from the Group's investor information website http://www.cnp.fr/Analyste-investisseur.

About CNP Assurances  

CNP Assurances is France's leading personal insurer, with net profit of €1,030 million in 2013. The Group also has operations in other European countries and in Latin America, with a significant presence in Brazil. It has 27 million personal risk/protection insureds worldwide and 14 million savings and pensions policyholders.

For 160 years, CNP Assurances has been protecting people against the risks of everyday life. The Group designs and manages life insurance, pension, personal risk and protection (term creditor insurance and health insurance) products.

In France, CNP Assurances distributes its individual insurance products through La Banque Postale and the Caisses d'Epargne, as well as through its own in-house network. In Brazil, its second largest market, the Group's partner is Caixa Econômica Federal, the country's second-biggest state-owned bank.

In group insurance, CNP Assurances crafts tailor-made personal risk, pension and term creditor insurance products that are aligned with the needs of companies, local authorities, mutual insurers, non-profit organizations, and banks in Europe and Latin America.

Listed on the first market of the Paris Bourse since October 1998, CNP Assurances enjoys the backing of a core group of four major shareholders (Caisse des Dépôts et Consignations, La Banque Postale, Groupe BPCE and the French State) united by a shareholders' agreement.

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 Autorité des Marchés 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. Premium Income by Country 


                                  Group Premium Income by Country (IFRS)
    (in EUR millions)

    Policyholders' country                                     % Change
    of residence              H1 2014   H1 2013  % Change (like-for-like)(1)

    France                   12,421.1  10,377.8   + 19.7        + 19.7
    Brazil                    1,355.4   1,574.4   - 13.9           0.0
    Argentina                    21.3      30.3   - 29.9        + 11.7
    Italy (2)                 1,684.5   1,374.3   + 22.6        + 22.6
    Portugal (3)                 60.1      30.3   + 98.4        + 98.4
    Spain (4)                   148.7      99.2   + 49.9        + 49.9
    Cyprus                       67.2      80.3   - 16.4        - 16.4
    Ireland                       0.5       0.5    - 0.2         - 0.2
    Other                         5.2     442.5   - 98.8        - 98.8
    Sub-total

    International             3,342.8   3,631.7    - 8.0         - 1.6
    TOTAL                    15,763.9  14,009.6   + 12,5        + 14.2

(1) Average exchange rates for Brazil:

At 30 June 2014: €1 = BRL 3.15

At 30 June 2013: €1 = BRL 2.67

(2) CNP Italia branch, CNP UniCredit Vita, CNP BVP Italia, CNP Europe Life business written under the EU freedom of services directive

(3) CNP BVP Portugal

(4) CNP España branch, CNP Vida, CNP BVP Spain

 

2. Premium Income by Segment 


                        Premium Income by Business Segment (IFRS)

                                                                   % Change
    (in EUR millions)            H1 2014   H1 2013   % Change  (like-for-like)(1)
    Savings                     11,199.5   8,829.7     + 26.8       + 26.9
    Pensions                     1,331.4   2,057.3     - 35.3       - 29.4
    Personal Risk                1,088.1   1,007.9      + 8.0       + 10.8
    Term Creditor Insurance      1,690.8   1,673.6      + 1.0        + 3.8
    Health Insurance               287.7     258.3     + 11.4       + 13.0
    Property & Casualty            166.3     182.9      - 9.0        + 4.7
    TOTAL                       15,763.9  14,009.6     + 12.5       + 14.2

(1) Average exchange rates for Brazil:

At 30 June 2014: €1 = BRL 3.15

At 30 June 2013: €1 = BRL 2.67

 

3. Premium Income by Country and by Partnership/Clientele/Subsidiary 


                                                        Premium Income (IFRS)
                                                                             %
    (in EUR millions)                               H1 2014   H1 2013   Change

    La Banque Postale                               4,700.8   4,211.8   + 11.6
    Caisses d'Epargne                               5,251.1   3,843.8   + 36.6
    CNP Trésor                                        293.1     268.1    + 9.3
    Financial Institutions                            765.4     756.1    + 1.2
    Mutual Insurers                                   466.1     456.4    + 2.1
    Companies and Local Authorities                   805.6     801.8    + 0.5
    Other (France)                                    139.0      39.9  + 248.2
    TOTAL France                                   12,421.1  10,377.8   - 19.7
    Caixa Seguros (Brazil) (1)                      1,355.4   1,574.4   - 13.9
    CNP Seguros de Vida (Argentina) (1)                21.3      30.3   - 29.9
    CNP Vida (Spain)                                  105.3      48.3  + 118.2
    CNP UniCredit Vita (Italy)                      1,546.8   1,236.6   + 25.1
    CNP Cyprus Insurance Holdings (Cyprus)             70.5      84.9   - 17.0
    CNP Europe (Ireland)                                6.5      19.4   - 66.7
    CNP BVP (Portugal-Spain-Italy)                    204.3     157.9   + 29.4
    Branches                                           32.8     479.8   - 93.2
    TOTAL International                             3,342.8   3,631.8    - 8.0
    TOTAL                                          15,763.9  14,009.6   + 12.5
  1. Average exchange rates in the first half of 2014: Argentina: €1 = ARS 10.72 - Brazil: €1 = BRL 3.15
    Average exchange rates in the first half of 2013: Argentina: €1 = ARS 6.73 - Brazil: €1 = BRL 2.67

Contacts presse 

CNP Assurances

Florence de MONTMARIN
+33(0)1-42-18-86-51

Tamara BERNARD
+33(0)1-42-18-86-19

[email protected]

Contacts investisseurs et analystes 

CNP Assurances 

Jim ROOT
+33(0)1-42-18-71-89

Annabelle BEUGIN-SOULON
+33(0)1-42-18-83-66

Julien DOCQUINCOURT
+33(0)1-42-18-94-93

[email protected]

SOURCE CNP Assurances

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