Gilles
Benoist, Chief Executive Officer, said:
“Our 2008 results attest to CNP
Assurances’ operating strength and robust business model. As we predicted, our
net recurring profit before fair value adjustments was more than 10% higher than
in 2007. Our solid financial position is reflected in our solvency ratio, based
on Solvency I, the quality of our equity under IFRS and our considerable
technical reserves. Added to this, we enjoy the backing of strong
shareholders.”
I -
REVENUE
New
money under
French Gaap amounted to €29,204.3 million in 2008, down 9.2% on the
previous year.
Reported
premium income under IFRS came to
€28,322.2 million, a decline of 10.2% year-on-year.
Average
technical reserves (excluding
deferred participation), which are the main driver of earnings growth, rose by
around 5.3% over the year.
The Group
was the market leader in
France in terms of net new money,
with €7.3 billion representing a market share of
25%.
II -
RESULTS
Net
insurance revenue
climbed 21.3% to €3,121 million in 2008. Adjusted for the reversal in the
first half of the year of surplus mathematical reserves for temporary disability
risks, the increase was 12.7%. The savings business accounted for 29% of net
insurance revenue, the personal risk business 29%, the pensions business 6%, and
proprietary portfolios 36%. The
personal risk business is therefore now on a par with the savings business in
terms of contribution to net insurance revenue. In all, technical reserves
generated 88% of net insurance revenue and premium income
12%.
Administrative
costs
remained under tight control in 2008, increasing by just 2.3% to
€752 million (including 1% growth in France). The
ratio of administrative costs to net insurance revenue improved to 24.1% in 2008
from 28.6% in 2007.
EBIT
rose 29.0% in 2008 to €2,369 million.
In
line with the Group's earnings guidance for 2008, net recurring profit before
fair value adjustments stood at €1,411 million, up 26% on 2007, or 13%
excluding restatements.
Fair value
adjustments trimmed €681 million from profit.
Reported
profit stood at
€731 million, down 40.2% on 2007.
III - EMBEDDD
VALUE
CNP
Assurances publishes its embedded value according to the principles recommended
by the CFO Forum, of which
it is a member. At 31 December 2008, market consistent embedded value (MCEV) was
€70.3 per share (before dividends),
a decrease of 14% compared with MCEV of €81.3 after dividends in
2007.
Adjusted
net asset value (ANAV) came
to €54.3 per share before dividends, down a slight 3% on
2007.
In-force
business amounted
to €15.9 per share, down 37% on the previous year, due mainly to the high
volatility of the financial markets during the year.
New
business value declined
to €2.3 per share from €2.9 in 2007, also reflecting the impact of increased
volatility.
New
business margin stood at
12.4% in 2008 versus 13.9% the previous year. The decrease was essentially due
to lower unit-linked sales in the current market
environment.
IV - SOLVENCY
CAPITAL
V - TARGETS AND OUTLOOK FOR
2009
In 2009,
CNP Assurances will consolidate its position as France’s leading
personal insurer, by maintaining its disciplined approach to financial
management, and will focus on building its mathematical reserves and controlling
costs.
*
* * * *
Glossary
Embedded
value (EV)
Adjusted
NAV + value of in-force business. Starting in 2009, CNP Assurances publishes its
market consistent embedded value (MCEV), determined in accordance with CFO Forum
principles.
New
business value
Discounted
present value of future earnings streams from business written during the year
less the cost of the capital needed to comply with solvency capital
requirements.
In-force
business
Discounted
present value of the future earnings stream from in-force business less the cost
of the capital needed to comply with solvency capital
requirements.
2008
Premium Income
|
|
IFRS |
French
GAAP |
|
Premium
income
(€m) |
2008 |
%
(change) |
2008 |
%
change |
|
Savings |
20,618.9 |
-16.9 |
21,491.9 |
-15.1 |
|
Pensions |
2,856.5 |
+32.5 |
2,865.7 |
+25.8 |
|
Personal
risk |
1,587.1 |
+4.4 |
1,587.1 |
+4.4 |
|
Loan
insurance |
2,563.7 |
+6.8 |
2,563.7 |
+6.8 |
|
Health
insurance |
349.3 |
+21.0 |
349.3 |
+21.0 |
|
Property
& Casualty |
346.5 |
+0.1 |
346.5 |
+0.1 |
|
TOTAL |
28,322.2 |
-10.2 |
29,204.3 |
-9.2 |
|
|
IFRS |
French
GAAP |
|
|
2008 |
%
change |
2008 |
%
change |
|
France |
25,065.4 |
-7.3 |
25,084.9 |
-7.7 |
|
Italy
(1) |
1,227.9 |
-58.7 |
1,818.6 |
-42.9 |
|
Brazil |
1,521.5 |
+32.8 |
1,782.5 |
+26.7 |
|
Spain
(2) |
242.6 |
+67.9 |
242.6 |
+67.9 |
|
Others |
264.8 |
- |
275.9 |
- |
|
TOTAL |
28,322.2 |
-10.2 |
29,204.3 |
-9.2 |
(1) Italian branches, Cofidis business in Italy and CNP Vita.
(2)
Spanish branches, Cofidis Spain and, since 5 April 2007, CNP
Vida.
Income
Statement
|
|
2008 |
2007 |
Change
(reported) |
Change
(1) (restated) |
EBIT |
2,369 |
1,837 |
+29.0% |
-16.9% |
-
Finance costs & Associates |
(79) |
(60) |
- |
- |
-
Income tax expense |
(714) |
(449) |
- |
- |
-
Minority interests |
(164) |
(157) |
- |
- |
Recurring
profit before capital gains |
1,411 |
1,120 |
+26.0% |
+13.0% |
+/-
Net gains (losses) on equities and property |
(271) |
58 |
- |
- |
Recurring
profit |
1,140 |
1,178 |
-3.2% |
-3.2% |
+/-
Fair value adjustments to trading securities |
(410) |
44 |
- |
- |
Reported
profit |
731 |
1,222 |
-40.2% |
-40.2% |
Embedded value per share at 31 December 2008 was calculated on
the basis of 148,537,823 shares.
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 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.
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