Solid Performance from CNP Assurances in 2010

Premium income stable at €32.3bn (-0.8%)
Net profit: €1,050 million (+5%)
Market Consistent Embedded Value (MCEV) of €20.3 per share
Recommended dividend [1] of €0.77 per share

[1] To be submitted for shareholder approval at the Annual General Meeting of 6 May 2011.

(Paris – 23 February 2011) – CNP Assurances, the leading personal insurer in France, with operations in the rest of Europe and in South America, has announced its 2010 premium income and results.

Highlights Premium income amounted to €32.3 billion, led by growth in risk and unit-linked business. After a good 2009, traditional savings products remained at a satisfactory level. Average technical reserves [2] rose by 8.2% in 2010, buoyed by structurally positive net new money. Net profit climbed 4.6% to €1,050 million, thanks to healthy operating momentum in a persistently challenging financial environment. MCEV increased by 6.8% to €20.3 per share, with APE margin at 12.3% versus 11.5% in 2009. ROE stood at 10.9% for 2010. The solvency capital requirement under Solvency I was covered 1.73 times including unrealised gains.  [2] Excluding the deferred participation reserve.

Gilles Benoist, Chief Executive Officer, said:
“In a record-low interest rate environment, our value creation strategy for 2010 consisted of developing sales of risk products both in France and in international markets. This strategy led to solid bottom-line growth and increased balance sheet flexibility. In 2011, with the continued support of all of our partners, we will pursue our expansion in high-margin segments.”

1 - 2010 Business Review [3]

[3] Unless otherwise stated, all data is presented on an IFRS basis

In 2010, premium income dipped just 0.8% to €32.3 billion. This strong performance was achieved on the back of robust 15.1% growth in 2009.
Sales were led by unit-linked products, a vibrant risk segment – with particularly strong demand for personal risk and loan insurance cover in France – and a sharp 30.2% increase in premium income in Brazil (up 7.8% excluding the currency effect). In Italy, premium income fell by 24.9% in 2010, after virtually tripling in the prior year.

(1) Italian branches, CNP UniCredit Vita, Cofidis Italy and, since 1 January 2010, BVP Italy.
(2) Cofidis Portugal and BVP Portugal.
(3) Based on exchange rates at 31 December 2010.
(4) Spanish branches, CNP Vida, BVP Spain and Cofidis Spain.
(5) Cofidis Belgium, Czech Republic, Romania, Greece and Hungary.

Consolidated sales of unit-linked products jumped 53.6% in 2010, lifting their contribution to savings and pensions revenue to 15.6%.

Average technical reserves excluding deferred participation rose by 8.2%. Including deferred participation, they increased by 9.3% to €280 billion, reflecting the positive impact of both French and international operations (up a combined 6.1% to €288 billion).

FRANCE

Premium income contracted by a slight 0.6% in 2010 to €26.1 billion (down 1.0% under French GAAP).
This minor slowdown was mainly due to the 1.6% decline in savings business, which largely reflected the impact on traditional savings products of a high basis of comparison in 2009. The three main distribution networks raised their front-end loading in 2010. Sharply higher than in 2009, unitlinked premium income nearly doubled during the year. The contribution from unit-linked contracts to total savings and pensions revenue in France represented 9.2% for the Group versus 13.0% for the market as a whole.

The personal risk and loan insurance businesses expanded by 10.8% and 5.6% respectively.

Net new money in France remained structurally positive, at €7.9 billion.

At 31 December 2010, Market Consistent Embedded Value (MCEV) before the 2010 dividend was €20.3 per share, representing an improvement of almost 7%.

Adjusted Net Asset Value (ANAV) grew by 5.6% due to the inclusion of profit for the year. This growth was nevertheless partly offset by the payment in 2010 of the 2009 dividend, as well as by the use of the gains generated by the change in French capitalisation reserve taxation rules to bolster general reserves.

The Value of In Force business (VIF) was nearly 12% higher due to the combined effect of growth in technical reserves and the consolidation of CNP BVP. At comparable scope of consolidation, VIF was up 9%.

Annual Premium Equivalent (APE) edged up 1%, reflecting a dip in premium income in France that was more than offset by expansion outside France.
New Business Value (NBV) came to €393 million, representing growth of 9%.
The APE (NBV/APE) margin amounted to 12.3% in 2010, versus 11.5% the year before.

4 -  Solvency capital

CNP Assurances’ solvency capital requirement under Solvency I was covered 1.11 times by core capital at 31 December 2010. Taking into account unrealised capital gains, the solvency capital requirement was covered 1.73 times.

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.