CNP Assurances: 2009 Premium Income and Results
Premium Income: Up 15.1% to 32.6bn
PARIS, February 24, 2010 /PRNewswire-FirstCall/ --
- Net Profit Up 37.5% to EUR1,004m
- Market Consistent Embedded Value (MCEV) Up 17% to EUR78.9 Per Share
- Recommended Dividend[1] of EUR3 Per Share
CNP Assurances, the leading personal insurer in France, with operations in the rest of Europe and in South America, has announced its 2009 premium income and results.
Highlights
- Premium income rose 15.1% to EUR32.6 billion, with gains of
4.9% in France and 93.4% in international operations.
- Technical reserves rose by a strong 9.6%, mainly due to
positive net new money.
- APE[2] was 14% higher, with the value of new business up 5%.
- MCEV increased by 17% to EUR78.9 per share.
- EBIT was down 25.8%, due to lower recurring investment
revenue and the high level of reversals from technical reserves in
2008.
- Net profit attributable to equity holders increased by 37.5%
to EUR1,004 million.
- ROE (based on net profit) came to 11.6% for 2009 versus 8.5%
for 2008.
- The solvency capital requirement under Solvency I was
covered 1.92 times including unrealised gains.
Gilles Benoist, Chief Executive Officer, said:
"Thanks to all of our partners, we have expanded our business in every operating region. In a persistently difficult environment, we have created value and maintained clear earnings visibility. CNP Assurances intends to pursue its value creation strategy in coming years."
1. 2009 Business Review
In 2009, premium income rose by 15.1% to EUR32.6 billion under IFRS or by 14.5% to EUR33.4 billion under French GAAP. The robust growth was led by the sharp 19.8% increase in savings premium income in France and Italy.
IFRS French GAAP
Premium income 2009 % Premium income 2009
change
(in EUR millions) (in EUR
millions)
Savings 24,711.2 +19.8 25,256.4 +17.5
Pensions 2,875.8 +0.7 3,193.7 +11.4
Personal Risk(1) 1,486.3 -6.3 1,486.3 -6.3
Loan Insurance 2,643.7 +3.1 2,643.7 +3.1
Health Insurance 467.0 +33.7 467.0 +33.7
Property & Casualty 401.6 +15.9 401.6 +15.9
___________________________________________________________
TOTAL 32,585.6 +15.1 33,448.6 +14.5
___________________________________________________________
(1) The 6.3% decline is mainly attributable to a mutual insurer's decision to in source management of its death and disability contract, partly offset by a new reinsurance treaty.
Business increased in every operating region, with premium income gaining
4.9% in France, soaring 188.4% in Italy (97.8% under French GAAP) and rising
23.5% in Brazil.
IFRS French GAAP
Premium 2009 % change Premium income 2009
income (in EUR millions)
(in EUR
millions)
France 26,288.7 +4.9 26,618.8 +6.1
Italy (1) 3,541.2 +188.4 3,596.6 +97.8
Portugal (2) 242.2 +6.6 443.4 +86.0
Brazil (3) 1,878.6 +23.5 2,151.1 +20.7
Argentina (3) 7.9 +25.3 7.9 +25.3
Spain (4) 379.4 +56.4 379.4 +56.4
Cyprus 214.4 - 214.7 -
Ireland 0.9 - 4.6 -
Other 32.2 +3.5 32.2 +3.5
_____________________________________________________________
TOTAL 32,585.6 +15.1 33,448.6 +14.5
_____________________________________________________________
(1) Italian branches and CNP Vita.
(2) Global, Global Vida and BVP Portugal.
(3) Based on exchange rates at 31 December 2009.
(4) Spanish branches, CNP Vida and BVP Spain.
The financial crisis led to a 30.6% drop in unit-linked sales, with a slightly more pronounced 51.3% decline in France. However, this negative trend reversed in the fourth quarter, when unit-linked sales rebounded both in France - by 92.2%, including a 127.3% increase for the Savings Banks - and internationally. In all, unit-linked sales rose by 87.1% year-on-year in the last quarter of 2009.
Buoyed by positive net new money, technical reserves rose by an average 6.1% in 2009, to end the year up 9.6% compared with 31 December 2008.
- France
Premium income rose 4.9% in 2009 to EUR26.3 billion (up 6.1% under French GAAP). While below-market, this performance was nonetheless in line with the long-term trend[3] observed since 2007 (EUR24.5 billion) and 2006 (EUR26.6 million). 2008 was an unusual year, when CNP Assurances served as a haven for clients seeking security during a severe financial crisis.
Unit-linked premium income ended 2009 down 51.3% year-on-year, with the result that unit-linked contracts accounted for just 4.6% of total savings and pensions premium income for the three main distribution networks. However, this portion improved sharply in the fourth quarter, rising to 8.3%.
Net new money in France remained significantly positive at EUR9.5 billion (up 32.4%), representing a market share of 18.6% comparable to that of previous years. Claims and benefits expense fell 4.9%, and therefore improved considerably as a percentage of technical reserves.
La Banque Postale
2009 was shaped by the successful launch of the Cachemire life insurance product and sustained strong premium income, at EUR11 billion for the year. This was down 6.3% from 2008, when La Banque Postale saw exceptional growth in a very depressed market. In the still uncertain economic environment, clients tended to prefer non-unit-linked products, although unit-linked demand picked up towards the year-end. La Banque Postale Prevoyance went from strength to strength, crossing the 2-million contract threshold.
Savings Banks
Premium income generated through the Savings Banks amounted to EUR10.3 billion in 2009, up 27.2%. Business was fuelled by the launch of a new Livret Assurance Vie product, as well as by two campaigns advertising promotional rates. Private banking contributed to the strong performance, led by strong sales of Nuances Privilege contracts. The personal risk business continued to grow, rising 8.3% for the year.
CNP Tresor
CNP Tresor reported premium income of EUR673.4 million, down a slight 6.5%. Business was held back by strong competition from the banking sector and the postponement of property sales.
Companies & Local Authorities
Business was underpinned by both personal risk products, thanks to several successful group policy launches, and pension products, lifted by supplementary pension institution (IRS) transfers. Because some of these IRS transfers qualified for treatment under IAS 39, premium income was lower under IFRS (down 7.6%) than under French GAAP (up 7.5%).
- International Operations
In 2009, premium income outside France surged 93.4% to EUR6.3 billion (up 65.8% under French GAAP). Growth was led by CNP Vita in Italy, Caixa Seguros in Brazil and CNP Vida in Spain. Recent acquisitions began to make a significant contribution, particularly in Cyprus, where Marfin Insurance Holdings Ltd (MIH)[4] reported premium income of EUR214.4 million for the year.
Italy - CNP Vita[5]
CNP Vita generated a solid EUR3.6 billion in new money, double the amount reported in 2008. Led by strong sales of the non-unit-linked UniGarantito product, this successful performance enabled the subsidiary to exceed its 2007 new money level.
Brazil - Caixa Seguros
Caixa Seguros' premium income rose 23.5% to EUR1.9 billion in 2009 (up 26.5% in local currency). The primary growth driver was once again the pensions business, which gained 23.6% over the year and accounted for 65% of total premium income in Brazil. Personal risk and loan insurance products saw improvements of respectively 37.7% and 29.2%.
Spain - CNP Vida
CNP Vida generated new money of EUR264 million in 2009, up 34.2%. All of the segments contributed to growth, which was mainly driven by the 71.6% increase in sales of unit-linked products by the Savings Banks.
2. 2009 Results
EBIT amounted to EUR1,756 for 2009, a 25.8% decline that was mainly due to a reduction in investment income (reflecting lower returns on cash and cash equivalents and smaller realised gains on equities, partly offset by realised gains on investment property) as well as the high level of provision reversals in 2008.
Business outside France represented 26% of EBIT.
In line with the guidance given in the first-half results press release, net profit attributable to equity holders of the parent topped the one million euros mark, at EUR1,004 million, up 37.5%.
Income Statement
2009 2008 %
EURm EURm Change
Premium income 32,586 28,322 15.1%
Net insurance revenue 2,552 3,121 -18.2%
Excl. reversal of temporary
disability mathematical
reserves -11.9%
- Expenses (796) (752) 5.8%
Gross operating profit
(EBIT) 1,756 2,369 -25.8%
Excl. reversal of temporary
disability mathematical
reserves -18.2%
- Finance costs and share
of profit of associates (53) (79) -
- Income tax expense (544) (714) -
- Minority interests (154) (164) -
Attributable recurring
profit before capital gains 1,005 1,411 -28.8%
Excl. reversal of temporary
disability mathematical
reserves -20.6%
Net realised gains (losses)
on equities and investment
property (61) (271) -
Fair value adjustments to
trading securities 281 (410) -
Non-recurring items (221) 0 -
Attributable profit 1,004 731 37.5%
Excl. reversal of temporary
disability mathematical
reserves 71.7%
3. Embedded Value[6]
At 31 December 2009, market consistent embedded value (MCEV) was EUR78.9
per share, up 17%. Adjusted net asset value (ANAV) rose by 17% and the value
of in-force business (VIF) by 16%. Growth in ANAV resulted from the inclusion
of profit for the year, as well as from the increase in unrealised gains on
the proprietary portfolio. The improvement in in-force business was due to
the 9.6% growth in technical reserves and the upturn in the financial
markets. It was held back, however, by the markets' persistently high
volatility.
At 31 Dec. At 31 Dec. %
2009 2008
EUR/share EUR/share change
Market consistent EUR78.9 EUR67.4 +17%
embedded value (MCEV) (after
dividends)
Adjusted net asset value EUR60.3 EUR51.5 +17%
(ANAV) (after
dividends)
Value-in-force (VIF) EUR18.6 EUR15.9 +16%
The steep rise in new money drove a 14% increase in annual premium equivalent (APE). The value of new business (VNB) came to EUR360 million at 31 December 2009, up 5%. The APE margin (VNB/APE) amounted to 11.5% at 31 December 2009, down slightly from a year earlier, reflecting the shift in the product mix towards non-unit-linked products.
4. Solvency capital
CNP Assurances' solvency capital requirement under Solvency I was covered 1.11 times by equity at 31 December 2009. Taking into account unrealised capital gains, the solvency capital requirement was covered 1.92 times.
APPENDICES
Premium Income by Partnership Centre
IFRS French GAAP
2009 2008 % 2009 2008 %
EURm EURm change EURm EURm change
French Post
Office 10,984.0 11,718.2 -6.3 10,987.4 11,724.0 -6.3
Savings Banks 10,346.6 8,131.5 +27.2 10,348.8 8,134.4 +27.2
CNP Tresor 673.4 720.1 -6.5 679.9 721.8 -5.8
Financial
Institutions
France 1,473.5 1,457.5 +1.1 1,473.5 1,457.5 +1.1
Mutual
Insurers 745.4 915.5 -18.6 745.4 915.5 -18.6
Companies and
Local
Authorities 1,881.1 2,036.2 -7.6 2,199.0 2,045.3 +7.5
Others
(France) 184.7 86.5 +184.7 86.5 +113.7 +113.7
_________________________________________________________________________
TOTAL France 26,288.7 25,065.4 +4.9 26,618.8 25,084.9 +6.1
_________________________________________________________________________
Global
(Portugal) 193.0 181.8 +6.2 193.0 192.8 +0.1
CNP Seguros
de Vida
(Argentina)(1) 7.9 6.3 +25.3 7.9 6.3 +25.3
CNP Vida
(Spain) 264.0 196.7 +34.2 264.0 196.7 +34.2
Caixa Seguros
(Brazil) (1) 1,878.6 1,521.5 +23.5 2,151.1 1,782.5 +20.7
CNP Unicredit
Vita (Italy) 3,502.0 1,179.9 +3,557.4 1,770.6 +196.8 100.9
Marfin
Insurance
Holdings Ltd
(Cyprus) 214.4 - - 214.7 - -
CNP Europe
(Ireland) 0.9 - - 4.6 - -
BVP (Portugal
- Spain) 78.1 - - 279.3 - -
Financial 118.0 120.6 -2.2 118.0 120.6 -2.2
Institutions
outside
France
Branches 40.0 49.9 -19.9 40.0 49.9 -19.9
TOTAL
International 6,296.9 3,256.7 +93.4 6,829.9 4,119.3 +65.8
_________________________________________________________________________
TOTAL 32,585.6 28,322.1 +15.1 33,448.6 29,204.2 +14.5
_________________________________________________________________________
(1) Average exchange rates
Argentina: EUR1 = ARS 5.37546
Brazil: EUR1 = BRL 2.81242
PREMIUM INCOME BY BUSINESS SEGMENT
IFRS
Premium income 2009 2008 %change 2009 at % change
(EUR millions) constant at
exchange constant
rates (pro exchange
forma) (1) rates
(pro
forma)
Savings 24,711.2 20,618.9 +19.8 24,560.1 +19.1
Pensions 2,875.8 2,856.5 +0.7 2,890.4 +1.2
Personal Risk 1,486.3 1,587.1 -6.3 1,451.2 -8.6
Loan Insurance 2,643.7 2,563.7 +3.1 2,640.0 +3.0
Health Insurance 467.0 349.3 +33.7 450.6 +29.0
Property & 401.6 346.5 +15.9 345.0 -0.4
Casualty
____________________________________________________________________
TOTAL 32,585.6 28,322.2 +15.1 32,337.3 +14.2
____________________________________________________________________
French GAAP
Premium income 2009 2008 %change 2009 at % change
(EUR millions) constant at
exchange constant
rates (pro exchange
forma)(1) rates
(pro forma)
Savings 25,256.4 21,491.9 +17.5 24,910.6 +15.9
Pensions 3,193.7 2,865.7 +11.4 3,208.3 +12.0
Personal Risk 1,486.3 1,587.1 -6.3 1,451.2 -8.6
Loan insurance 2,643.7 2,563.7 +3.1 2,640.0 +3.0
Health Insurance 467.0 349.3 +33.7 404.0 +15.7
Property & 401.6 346.5 +15.9 391.6 +13.0
Casualty
______________________________________________________________________
TOTAL 33,448.6 29,204.3 +14.5 33,005.7 +13.0
______________________________________________________________________
Premium income in Cyprus has only been included since 1 January 2009
and that of BVP since 1 September 2009.
(1) Based on exchange rates at 31 December 2008
Average exchange rates for Brazil:
At 31 December 2009 EUR1 = BRL 2.81242
At 31 December 2008 EUR1 = BRL 2.74528
UNIT-LINKED SALES
IFRS French GAAP
2009 2008 % 2009 2008 %
EURm EURm change EURm EURm change
French Post Office 439.4 745.0 -41.0 442.8 750.8 -41.0
Savings Banks 505.3 1,219.3 -58.6 507.5 1,222.2 -58.5
CNP Tresor 21.7 57.4 -62.2 28.2 59.1 -52.2
Others 9.6 16.0 -40.0 9.6 16.0 -40.0
TOTAL individual 976.0 2,037.8 -52.1 988.2 2,048.1 -51.8
unit-linked France
Group unit-linked France 23.5 15.7 +49.9 341.4 24.8 +1277.3
TOTAL France 999.5 2,053.4 -51.3 1329.5 2,072.9 -35.9
CNP Unicredit Vita 234.9 820.8 -71.4 290.3 1,411.4 -79.4
Caixa Seguros 1,204.0 971.5 +23.9 1204.0 971.5 +23.9
CNP Vida 134.5 78.4 +71.6 134.5 78.4 +71.6
Global Vida 0.0 0.0 - - 11.1 -
Marfin Insurance
Holdings Ltd 100.9 - - 101.2 - -
CNP Europe 0.9 - - 4.6 - -
BVP Spain and Portugal 46.7 - - 247.9 - -
_________________________________________________________________________
TOTAL International 1,722.0 1,870.8 -8.0 1982.6 2,472.4 -19.8
TOTAL Unit-linked 2,721.5 3,924.2 -30.6 3312.1 4,545.3 -27.1
_________________________________________________________________________
PREMIUM INCOME BY INSURANCE CATEGORY
IFRS French GAAP
2009 2008 % 2009 2008 %
EURm EURm change EURm EURm change
Individual 27,093.3 22,710.3 +19.3 27,638.4 23,583.3 +17.2
insurance products
Group insurance 5,492.3 5,611.9 -2.1 5,810.2 5,621.0 +3.4
products
________________________________________________________________________
TOTAL 32,585.6 28,322.2 +15.1 33,448.6 29,204.3 +14.5
________________________________________________________________________
PREMIUM INCOME BY COUNTRY AND BY BUSINESS SEGMENT
IFRS
Savings Pensions Personal Loan
Risk Insurance
EURm 2009 % 2009 % 2009 % 2009 %
chg chg chg chg
France 20,789.3 7.9 1,615.9 -12.2 1,171.4 -15.5 2,264.4 2.1
Italy (1) 3,422.7 212.0 19.4 -20.4 5.9 -1.5 93.2 -7.4
Portugal (2) 53.5 47.1 0.0 - 2.9 22.2 47.5 4.5
Spain (3) 291.9 58.6 26.1 191.1 12.6 - 48.9 -0.9
Cyprus 103.7 - 0.0 - 28.9 - 2.5 -
Ireland 0.9 - 0.0 - 0.0 - 0.0 -
Others Europe 0.0 - 0.0 - 0.0 - 32.2 3.5
Brazil 46.6 91.0 1,214.5 23.6 260.5 37.7 153.9 29.2
Argentina 2.6 1.8 0.0 - 4.2 18.2 1.0 -
Sub total
International 3,921.9 191.7 1,259.9 24.0 315.0 56.6 379.3 9.7
________________________________________________________________________
TOTAL 24,711.2 19.8 2,875.8 0.7 1,486.3 -6.3 2,643.7 3.1
________________________________________________________________________
(1) Italian branches and CNP Vita.
(2) Global, Global Vida and BVP Portugal.
(3) Spanish branches, CNP Vida and BVP Spain.
IFRS
Health Property Total
Insurance &
Casualty
EURm 2009 % 2009 % 2009 %
chg. chg chg.
France 447.8 29.2 0.0 - 26,288.7 4.9
Italy (1) 0.0 - 0.0 - 3,541.2 188.4
Portugal (2) 2.8 8.2 135.5 -3.6 242.2 6.6
Spain (3) 0.0 - 0.0 - 379.4 56.4
Cyprus 16.3 - 63.0 - 214.4 -
Ireland 0.0 - 0.0 - 0.9 -
Others Europe 0.0 - 0.0 - 32.2 3.5
Brazil 0.0 - 203.2 -1.4 1,878.6 23.5
Argentina 0.0 - 0.0 - 7.9 25.3
Sub total
International 19.2 635.9 401.6 15.9 6,296.9 93.4
__________________________________________________________________
TOTAL 467.0 33.7 401.6 15.9 32,585.6 15.1
__________________________________________________________________
CNP Vita Premium Income
EURm IFRS French GAAP
MARKET SEGMENT 2009 % 2009 %
change change
Savings 3,422.7 +212.0 3,478.1 +106.1
Pensions 19.4 -20.4 19.4 -20.4
Personal Risk 5.9 +16.1 5.9 +16.1
Loan Insurance 54.0 +0.8 54.0 +0.8
________________________________________________________
TOTAL 3,502.0 +196.8 3,557.4 +100.9
________________________________________________________
Caixa Seguros Premium Income
BRLm IFRS French GAAP
MARKET SEGMENT 2009 % 2009 %
change change
Savings 130.6 +95.6 898.5 +14.8
Pensions 3,412.8 +26.5 3,412.8 +26.5
Personal Risk 732.8 +40.9 732.8 +40.9
Loan Insurance 432.7 +32.1 432.7 +32.1
Property & Casualty 574.6 +1.6 574.6 +1.6
_____________________________________________________
TOTAL 5,283.5 +26.5 6,051.4 +23.7
_____________________________________________________
Investor Calendar
- First-quarter 2010 premium income and results: Wednesday, 12
May 2010 at 7:30 a.m.
- First-half 2010 premium income and results: Friday, 30 July 2010
at 7:30 a.m.
- Third-quarter 2010 premium income and results: Wednesday, 10
November 2010 at 7:30 a.m.
This press release, as well as the consolidated financial statements and the management report, are available in French and English on the CNP Assurances 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 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] To be submitted for the approval of the Annual Shareholders' Meeting of 25 May 2010.
[2] Annual Premium Equivalent = 10% x (single premium NB) + Annualised regular premium NB
[3] Premium income in France under IFRS, excluding Fourgous transfers.
[4] MIH was consolidated as from 1 January 2009.
[5] CNP Vita's premium income under IFRS includes certain reclassifications made in application of IAS 39. To better reflect the subsidiary's sales performance, information provided in this paragraph is presented on a French GAAP basis.
[6] Unaudited
SOURCE CNP Assurances
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