PARIS, November 14, 2012 /PRNewswire/ --
Revenue: €19.4bn (down 14%)
Net insurance revenue: €2,283m (up 4%)
Recurring net profit: stable at €755m
Attributable net profit: €783m (up 42%)
Solvency capital: 2.54x required capital including unrealised
gains
Further sales of peripheral euro zone sovereign debt
securities
CNP Assurances, the leading personal insurer in France, with operations in the rest of Europe
and in South America, has
announced its revenue and results for the first nine months of
2012. These indicators were approved for publication by the Board
of Directors at its meeting on 13 November
2012.
HIGHLIGHTS
- Revenue down 14.1%, reflecting declines of 18.1% in Savings
and 16.8% in Pensions:
- France: down 10.4% in a
market down 14.0% (like-for-like)
- International: down 24.5% due to Southern Europe.
- Net insurance revenue up 4.2%:
- France[1] down
7.9%, reflecting non-recurring factors linked to falling interest
rates
- International[1] up by a healthy
12.9%
- Recurring net profit stable at €755
million. Attributable net profit up 42.3% at €783
million, supported by favourable financial market
conditions
- Further reductions in peripheral euro zone sovereign debt
assets:
- French portfolio's gross exposure reduced to €12.7 billion
at 30 September 2012 from €19.2
billion at 31 December 2011.
1. Business review for the first nine months of
2012[2]
In the first nine months of 2012, consolidated revenue
contracted by 14.1% to €19.4 billion. The decline continued the
trend observed in the first half and mainly concerned the Savings
and Pensions businesses.
IFRS
2012 2011 % change % change
(EURm) (9 months) (9 months) (reported) (like-for-like(1))
Savings 12,550.5 15,327.3 - 18.1 -18.1
Pensions 2,364.9 2,843.3 - 16.8 -14.1
Personal Risk 1,474.2 1,496.4 - 1.5 -0.1
Term Creditor
Insurance 2,343.6 2,283.3 + 2.6 + 3.3
Health Insurance 392.1 364.3 + 7.6 + 7.7
Property &
Casualty 268.8 255.7 + 5.1 + 10.4
TOTAL 19,394.0 22,570.4 - 14.1 -13.5
(1) Average exchange rate for Brazil:
At 30/09/2012: €1 = BRL2.456
At 30/09/2011: €1 = BRL2.311
International operations accounted for one-fifth of total
revenue, with 56% generated in South
America. The 24.5% decline in international revenue for the
first nine months was due to the high basis of comparison in
Ireland (with last year's sale of
a major group pensions contract), unfavourable exchange rates in
Brazil and sharply lower revenue
in Southern Europe.
(EURm) IFRS
2012 2011 % change % change
(9 months) (9 months) (reported) (like-for-like(1))
France 15,674.2 17,644.7 -11.2 -11.2
Italy (2) 1,094.7 1,659.1 -34.0 -34.0
Portugal (3) 27.6 200.3 -86.2 -86.2
Brazil 2,071.9 2,125.5 -2.5 +3.6
Argentina 43.7 19.9 +119.2 +117.4
Spain (4) 285.3 312.4 -8.7 -8.7
Cyprus 136.5 157.9 -13.6 -13.6
Ireland 54.6 449.6 -87.9 -87.9
Other Europe (5) 5.5 0.8 - -
Sub-total
International 3,719.8 4,925.6 -24.5 -21.9
TOTAL 19,394.0 22,570.4 -14.1 -13.5
(1) Average exchange rate for Brazil:
At 30/09/2012: €1 = BRL2.456
At 30/09/2011: €1 = BRL2.311
(2) CNP Italia branch, CNP UniCredit Vita and CNP BVP Italy
(3) CNP BVP Portugal
(4) CNP España branch, CNP Vida and CNP BVP Spain
(5) Including Greece since September
2012
In a French market down by €5.1 billion, CNP Assurances reported a
€700 million net outflow of funds, representing considerably less
than its market share. This outperformance was mainly attributable
to La Banque Postale's resilience and to CNP Assurances's presence
in the group insurance segment which stayed on an upward
trajectory. In all, net new money was a negative €600 million
across the Group. However, average technical reserves
(excluding deferred participation) continued to grow,
rising by 2.3% versus the first nine months
of 2011 to €291.6 billion.
In France, revenue for the
first nine months amounted to €15.7
billion, down 11.2% as reported and 10.4% on a French
GAAP basis. Despite the decline - mainly concerning the Savings
business - the Group significantly outperformed the French
savings and pensions market which contracted by 14.0% compared
with the first nine months of 2011.
While the Savings and Pensions segments remained difficult, with
unit-linked sales down by a steep 42.6%, the Group continued to
perform well in the term creditor
insurance segment, reporting a 7.0% increase in
revenue.
A. La Banque
Postale
La Banque Postale's contribution
to nine-month revenue was down
6.0% at €6,826 million and net new
money was at break-even. This represented a particularly
resilient performance in a market where new money was down 14% and
net new money was a negative €5.1 billion. Sales of term creditor
insurance remained strong. In the personal risk segment, La Banque
Postale maintained its momentum with the number of contracts sold
rising by 14%, lifted by strong demand for the Prémunys and
Sérénia term life insurance offers.
B. Caisses d'Epargne
The revenue contribution of
the Caisses d'Epargne (savings
banks) dropped by 22.4% to €5,286
million as a result of stiff competition from products offered
by the banks, particularly in the Savings segment. Unit-linked
sales fell by 53.3% reflecting a reduced emphasis on selling
unit-linked bond funds compared with 2011. However, the network's
contribution to personal risk revenues nearly doubled, with over
180,000 policies sold during the period. Term creditor insurance
business also continued to grow, contributing €502 million to
revenue.
C. CNP Trésor
CNP Trésor's revenue contribution declined by
7.6% to €434 million. Its distribution model based on a
team of local insurance advisors helped the network to withstand
the sharp contraction in the French life insurance market.
D. Financial institutions
The wait-and-see attitude among homebuyers in France led to an overall decline in home
purchases during the period. Despite this challenging
environment, the revenue contribution of the Financial Institutions
partnership centre rose by 3.3% to €1,102 million. The
period-on-period growth was mainly due to the fact that new
business accounts for only a small proportion of total revenue. It
also reflected the maturity of the partners' main portfolios.
E. Companies and Local
Authorities
Revenue generated with companies and local authorities
amounted to €1,273 million, an increase of 2.6%. In the
personal risk segment, for both companies and local authorities the
Group focused on improving margins by adjusting rates.
F. Mutual insurers
The revenue contribution from mutual insurers amounted to
€700 million, down 4.4%. Growth initiatives focused mainly on
developing optional supplementary long-term care insurance business
with MGEN.
At €3.7 billion, revenue from
international operations for the first nine months was down 24.5%
on the year-earlier period (21.9% at constant exchange rates), due
mainly to the decline in business in Southern Europe.
The decrease in international revenue
was offset by a favourable shift in the product mix towards risk
protection insurance.
A. South America
Caixa Seguros's revenue rose 3.6% in local
currency to BRL 5,088 million.
However, the subsidiary's contribution to consolidated revenue was
down 2.5% due to the real's decline against the euro.
While Savings and Pensions business was affected by competition
from products offered by the banks, term creditor insurance
continued to grow, rising 21.7% in real. In all, revenues from
personal risk insurance, term creditor insurance and property and
casualty insurance rose by an average 14% and accounted for over a
third of total revenues.
Revenues from the health insurance business launched at the end
of 2011 amounted to BRL 15.9 million
for the first nine months of 2012.
B.
Southern Europe
- CNP UniCredit Vita (Italy)
After a strong first half, CNP UniCredit Vita experienced a
severe loss of momentum in the third quarter, with the result that
revenues for the first nine months were down 33.2%. Pensions
and Personal Risk revenues nevertheless rose by 3.3% and 24.7%
respectively.
- CNP Barclays Vida y Pensiones (Portugal, Spain, Italy)
In Southern Europe's very
depressed economic environment, CNP BVP experienced a steep
47.7% drop in revenue to €309.4 million. All business lines
were hit to a similar extent, although it is important to note that
the basis of comparison was very high after revenue more than
doubled in 2011. The only exception was the personal risk business,
which grew by nearly 7% albeit from a still limited base.
- CNP Laiki Insurance Holdings[3] (Cyprus)
The 10.1% decline in this subsidiary's revenue was mainly due to
the high prior year basis of comparison which included revenue of
€8.8 million from a single premium contract.
2. Results for the first nine months
of 2012
2012 2011
(EURm) (9 months) (9 months) % change
Premium income 19,394.0 22,570.4 -14.1%
Change in average technical
reserves (excluding deferred
participation) 291,568 284,895 +2.3%
Net insurance revenue* 2,283 2,191 +4.2%
- Expenses 661 666 -0.7%
EBIT 1,622 1,525 +6.3%
- Finance costs (115) (109) +5.7%
- Income tax expense (531) (468) +13.5%
- Minority interests (220) (193) +14.4%
Attributable recurring profit 755 756 -0.1%
Net realised gains on equities
and investment property 93 (174) -
Fair value adjustments to
trading securities 143 (32) -
Non-recurring items (209) 0 -
Attributable net profit 783 550 +42.3%
*Net insurance revenue at constant exchange rates: up 7.9%
Net insurance revenue rose 4.2% in the first nine months
of 2012 compared with the year-earlier period.
In France, net insurance
revenue (excluding own-funds portfolios) was down 7.9% due to
non-recurring factors[4]. The underlying change was an
increase of 5.2%. Net insurance revenue from international
operations rose 12.9% despite the negative currency effect in
Brazil. Their contribution to
total net insurance revenue (excluding own-funds portfolios) was
50% for the first nine months of 2012 versus 45% for the same
period of 2011.
Expenses decreased by 0.7%. In France, expenses were down by 2.8%, while in
international operations expenses rose compared with the first nine
months of 2011, mainly in Brazil
due to the costs of growing the business and amortizing strategic
projects.
EBIT rose 6.3%. Subsidiaries outside France accounted for 44% of the total, helped
by an increased contribution from Caixa Seguros.
Net capital gains generated under the multi-year profit
taking programme concerned equities and investment property and
amounted to €93 million. Fair value adjustments to trading
securities represented a positive €143 million.
Profit for the period was adversely affected by net
non-recurring expenses of €209 million, corresponding mainly to
transfers to the policyholders' surplus reserve.
Net profit attributable to equity
holders of the parent for the first nine months of 2012 amounted to
€783 million, an increase of 42.3% on the year-earlier period.
3. Solvency capital
Required capital under Solvency I was covered 1.12 times at
30 September 2012 before taking into
account unrealised capital gains. This was slightly below the 30
June coverage rate, due to an increase in required capital during
the third quarter. Including unrealised capital gains, required
capital was covered 2.54 times.
As announced on 16 October, CNP Assurances has placed
USD 500 million worth of perpetual
subordinated notes, mainly with Asian investors. The notes will be
included in equity for the calculation of the coverage rate at
31 December 2012.
4. Investment policy
The Group is continuing to follow a prudent investment policy.
The French portfolio's exposure to peripheral euro zone sovereign
debt was reduced to €12.7 billion at 30
September 2012, with a further reduction in October.
CNP Assurances's regulated information can be downloaded from
the Group's investor information
website http://www.cnp-finances.fr
APPENDICES
REVENUE BY
PARTNERSHIP CENTRE
(EURm) IFRS French GAAP
2012 2011 2012 2011
(9 (9 % (9 (9 %
months) months) change months) months) change
La Banque Postale 6,826.3 7,260.0 -6.0 6,827.6 7,262.1 -6.0
Savings Banks 5,285.8 6,811.1 -22.4 5,286.8 6,812.4 -22.4
CNP Trésor 433.6 469.4 -7.6 433.6 469.4 -7.6
Financial Institutions
France 1,102.5 1,067.2 3.3 1,102.5 1,067.2 3.3
Mutual Insurers 700.2 732.4 -4.4 700.2 732.4 -4.4
Companies & Local
Authorities 1,273.5 1,241.5 2.6 1,496.4 1,337.7 11.9
Other (France) 52.3 63.1 -17.2 52.3 63.1 -17.2
TOTAL France 15,674.2 17,644.7 -11.17 15,899.5 17,744.4 -10.40
CNP Seguros de Vida
(Argentina) (1) 43.7 19.9 119.2 43.7 19.9 119.2
CNP Vida (Spain) 123.2 123.3 - 0.0 123.7 123.3 0.3
Caixa Seguros (Brazil)
(1) 2,071.9 2,125.5 - 2.5 2,392.6 2,439.2 - 1.9
CNP UniCredit Vita
(Italy) 932.4 1,395.9 - 33.2 1,110.8 1,653.7 - 32.8
CNP Laiki Insurance
Holdings (Cyprus) 142.0 157.9 - 10.1 142.8 166.7 - 14.4
CNP Europe (Ireland) 54.6 449.6 - 87.9 54.6 449.6 - 87.9
CNP BVP
(Portugal-Spain-Italy) 309.4 591.7 - 47.7 401.5 664.8 - 39.6
Financial Institutions
outside France (2) - 3.3 - - 3.3 -
Branches 42.5 58.5 - 27.2 42.5 58.5 -27.2
TOTAL International 3,719.8 4,925.6 - 24.5 4,312.1 5,579.1 -22.7
TOTAL 19,394.0 22,570.3 - 14.1 20,211.6 23,323.5 -13.3
(1) Average exchange rates: Argentina: €1 = ARS5.716 - Brazil: €1 =
BRL2.456
(2) The business of writing term creditor insurance for Cofidis
under the EU freedom of services
directive was discontinued on
1 January 2011 and the related
contracts no longer generate any revenues.
UNIT-LINKED
SALES
IFRS French GAAP
2011 2012 2011
2012
(9 (9 (9 %
(EURm) (9 months) months) % change months) months) change
La Banque Postale 336.7 407.0 - 17.3 338.1 409.2 - 17.4
Savings Banks 478.3 1,024.5 - 53.3 479.3 1,025.7 - 53.3
CNP Trésor 10.8 18.4 - 41.1 10.8 18.4 - 41.1
Other (France) 2.5 4.5 - 43.6 2.5 4.5 - 43.6
Total individual
products France 828.4 1,454.5 - 43.0 830.7 1,457.8 - 43.0
Group products France 16.1 17.8 - 9.5 239.0 99.9 139.3
TOTAL France 844.5 1,472.3 - 42.6 1,069.8 1,557.7 - 31.3
CNP UniCredit Vita 316.9 643.2 - 50.7 495.3 901.1 - 45.0
Caixa Seguros 1,068.4 1,233.1 - 13.4 1,068.4 1,233.1 - 13.4
CNP Vida 63.2 60.9 3.6 63.2 60.9 3.6
CNP Laiki Insurance
Holdings 45.3 49.7 - 8.9 45.5 57.8 - 21.3
CNP Europe 4.8 5.9 - 18.6 4.8 5.9 - 18.6
CNP BVP
(Portugal-Spain-Italy) 26.5 127.1 - 79.1 118.7 200.2 - 40.7
TOTAL International 1,525.1 2,119.9 - 28.1 1,795.7 2,459.1 - 27.0
TOTAL unit-linked 2,369.7 3,592.2 - 34.0 2,865.6 4,016.8 - 28.7
BREAKDOWN BY
INSURANCE CATEGORY
IFRS French GAAP
2012 2011 2012 2011
(EURm) (9 months) (9 months) % change (9 months) (9 months) % change
Individual
Insurance 14,821.6 17,591.2 - 15.7 15,415.3 18,247.4 - 15.5
Group
Insurance 4,572.8 4,979.2 - 8.2 4,796.3 5,076.1 - 5.5
Total 19,394.0 22,570.4 - 14.1 20,211.6 23,323.5 - 13.3
REVENUE BY COUNTRY AND BY BUSINESS SEGMENT
Personal
Savings Pensions Risk
9 mos. 9 mos. 9 mos. %
In EURm (IFRS) 2012 % chg. 2012 % chg. 2012 chg.
France 11,250.9 - 15.9 1,034.1 5.7 1,094.5 - 3.3
Italy (1) 985.8 - 31.8 12.7 3.3 7.1 24.7
Portugal (2) 10.8 - 94.1 0.0 NS 0.9 NS
Other Europe (3) 2.9 NS 0.0 NS 0.0 NS
Brazil 56.5 - 6.4 1,217.0 - 8.3 334.7 3.8
Argentina 4.0 41.1 0.0 NS 8.4 56.7
Spain (4) 188.5 5.1 51.2 - 37.5 8.1 - 3.8
Cyprus 46.4 - 26.5 0.0 NS 20.6 - 7.6
Ireland 4.8 - 18.6 49.8 - 88.8 0.0 NS
Sub-total International 1,299.6 - 33.1 1,330.8 - 28.6 379.7 4.3
TOTAL 12,550.5 - 18.1 2,364.9 - 16.8 1,474.2 - 1.5
(continued)
Property
Term Creditor Health &
Insurance Insurance Casualty Total
9 mos. % chg. 9 mos. % chg. 9 mos. % chg. 9 mos. & chg.
In EURm (IFRS) 2012 2012 2012 2012
France 1,925.8 7.0 368.9 6.1 0.0 NS 15,674.2 - 11.2
Italy 89.2 - 54.6 0.0 NS 0.0 NS 1,094.7 - 34.0
Portugal (1) 15.8 4.4 0.0 NS 0.0 NS 27.6 - 86.2
Other Europe (2) 2.3 177.0 0.3 NS 0.0 NS 5.5 566.1
Brazil (3) 241.5 14.5 6.5 NS 215.8 5.3 2,071.9 - 2.5
Argentina 31.4 166.1 0.0 NS 0.0 NS 43.7 119.2
Spain 37.5 - 12.5 0.0 NS 0.0 NS 285.3 - 8.7
Cyprus (4) 0.0 NS 16.5 - 1.4 53.0 4.4 136.5 - 13.6
Ireland 0.0 NS 0.0 NS 0.0 NS 54.6 - 87.9
Sub-total
International 417.8 - 13.5 23.2 39.0 268.8 5.1 3,719.8 - 24.5
TOTAL 2,343.6 2.6 392.1 7.6 268.8 5.1 19,394.0 - 14.1
(1) CNP Italia branch, CNP UniCredit Vita and CNP BVP Italy
(2) CNP BVP Portugal
(3) Cofidis Romania, Belgium, Czech Rep., Greece
(4) CNP Spain branch, CNP Vida and CNP BVP Spain
CNP UNICREDIT VITA REVENUE
IFRS French GAAP
2012 2012
(EURm) (9 months) % change (9 months) % change
Savings 879.5 - 32.0 1,057.8 - 31.8
Pensions 12.7 3.3 12.7 3.3
Personal Risk 7.1 24.7 7.1 24.7
Term Creditor
Insurance 33.1 - 60.6 33.1 - 60.6
TOTAL 932.4 - 33.2 1,110.8 - 32.8
CAIXA SEGUROS REVENUE
IFRS French GAAP
2012 2012
(BRLm) (9 months) % change (9 months) % change
Savings 138.6 - 0.8 926.0 7.1
Pensions 2 988.4 - 2.6 2 988.4 - 2.6
Personal Risk 821.9 10.4 821.9 10.4
Term Creditor
Insurance 593.0 21.7 593.0 21.7
Property &
Casualty 529.8 12.0 529.8 12.0
Health Insurance 15.9 15.9
TOTAL 5 087.7 3.6 5 875.0 4.2
CNP BVP REVENUE
IFRS French GAAP
2012 2012
(EURm) (9 months) % change (9 months) % change
Savings 206.1 - 49.6 298.2 - 38.1
Pensions 46.0 - 41.1 46.0 - 41.1
Personal Risk 8.9 6.8 8.9 6.8
Term Creditor
Insurance 48.4 - 49.9 48.4 - 49.9
TOTAL 309.4 - 47.7 401.5 - 39.6
2013 Investor calendar
- 2012 revenue and results: Wednesday, 22
February 2013 at 7:30 am
- Annual General Meeting: Thursday, 25 April at 2:30 pm
- First quarter 2013 revenue and profit indicators: Thursday,
16 May 2013 at 7:30am
- First-half 2013 revenue and results: Friday, 26 July 2013 at 7:30
am
- Nine-month 2013 revenue and profit indicators: Friday,
15 November 2013 at 7:30 am
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. Excluding revenues from own funds portfolios
2. Unless otherwise stated, all data are presented on an IFRS basis
3. Following the partner's name change, CNP Marfin Insurance Holdings (CNP
MIH) was renamed CNP Laiki Insurance Holdings (CNP LIH)
4. Mainly the effects of lower interest rates.
Contacts:
CNP Assurances
Florence de MONTMARIN
+33(0)1-42-18-86-51
Tamara BERNARD
+33(0)1-42-18-86-19
servicepresse@cnp.fr
Contacts for Analysts & Investors:
CNP Assurances
Jim
ROOT
+33(0)1-42-18-71-89
Annabelle BEUGIN-SOULON
+33(0)1-42-18-83-66
Jean-Yves ICOLE
+33(0)1-42-18-94-93
infofi@cnp.fr
SOURCE CNP Assurances