The business units at work
New offers, new partnerships, business diversification and faster growth in Europe and Latin America. A look back over a dynamic and fruitful year for CNP Assurances’s business units.
In 2014, all the business units were actively involved in deepening and renewing their partnerships. In France and Brazil, this meant strengthening relations with our traditional partners, while in Europe and Latin America, the challenge was to find new partners. The other common theme was rebalancing the business model by increasing the focus on protection insurance and stepping up the pace of growth both in Europe and in Latin America.
The digital challenge
In 2015, we have set a new challenge for all the business units. Recognising that we can no longer delay entering the digital world, we plan to accelerate the transition through a collective and collaborative process.
BPCE
Partnership
The partnership agreement with the BPCE Group has been renewed for an initial period of seven years as from 1 January 2016. The agreement covers an exclusive partnership in term creditor insurance across all the BPCE networks (Caisse d'Epargne, Banques Populaires and Crédit Foncier), specific partnerships in group health and death/disability insurance, and mechanisms to align the partners’ interests concerning the management of savings/pensions contracts in force at 31 December 2015.
14.8% of savings new money invested in unit-linked funds in 2014, up 3.4%. Reflecting the Caisses d’Epargne networks’ strategic priority, growth was led by a 50% increase in new money from premium savings products and by the shift in focus towards unit-linked funds by savers looking for better performance.
Outlook for 2015
Ready for Eurocroissance
February saw the launch of the Eurocroissance fund (capital guarantee at the end of 12 years) and Croissance fund (capital guarantee at the end of 8 years).
La Banque Postale
Partnership
The partnership with La Banque Postale is also due to expire on 31 December 2015. Discussions are moving ahead against the backdrop of our joint development ambitions and our shared commitment to finalising the agreement before the summer.
Over €3bn in new money invested in the space of eight months in the new Cachemire offer for the wealth management market, one of La Banque Postale’s core strategic targets, with investment in unit-linked funds almost double the 2013 amount and representing 12.8% of total new money for 2014.
Outlook for 2015
Ready to serve the wealth management market in January, a new version of Cachemire Patrimoine was launched, with a Eurocroissance fund due to be added before the end of the year. A new Vie Génération contract was also introduced, distributed exclusively through La Banque Postale’s 80 wealth managers.
Social protection and services
Partnership
We have always forged multiple partnerships in the area of social protection. This model was consolidated in 2014 to target the newly created demand for employee benefit plans among SMEs, micro-enterprises and self-employed professionals. A strategic partnership was signed with customer relations and digital expert Alptis Assurances, leading to the creation of Capvita to serve this segment, and an agreement with the BPCE Group to meet the needs of its 600,000 customers with over 20 employees.
€2,700m in health and death/disability premiums.
A new dynamic to meet emerging challenges. Thanks to our upgraded offers, multi-channel strategy and new partners, in 2014 we successfully adapted to the changing market and responded to around one hundred calls for bids.
Outlook for 2015
Ready to serve the SME/micro-enterprise/self-employed worker market the supplementary health plan offer has been finalised, featuring service innovations, and a tried and tested multi-channel distribution model will be up and running by 1 January 2016.
Open model
Partnership
The 20-year exclusive partnership with Santander Consumer Finance gives CNP Assurances a new stature in the European market and outstanding growth opportunities in the protection insurance market. In the premium savings segment, CNP Patrimoine’s new dynamic has won over 16 new partners, including private banking institutions, family offices and independent financial advisors.
Around €4bn in term creditor insurance business written in Europe in 2014. The business unit’s rapid progress in implementing large scale development projects has given CNP Assurances renewed appeal among existing and potential customers and partners.
Outlook for 2015
Ready for growth
The premium CNP One contract was launched in all interested distribution networks in February, the partnership with Banco Santander is being deployed in Germany and other markets, and the search is on for new partners.
Latin America
Partnership
Caixa Seguradora is leveraging its recent acquisitions – Tempo Dental in the high potential dental insurance market and Prévisul, in the personal risk market in Southern Brazil – by unleashing the many synergies in order to pursue its growth.
25.6% growth in personal risk/protection ( Like-for-like) premiums and high margins on pension/savings products thanks to the inclusion of death/disability cover. The World Cup and the elections slowed the economy but the Brazilian subsidiary continued to flourish.
Outlook for 2015
Ready for Latin American expansion
Growth strategies in Brazil are being guided by the 2015-2019 business plan prepared jointly with Caixa Econômica Federal and the search is underway for partners in Colombia.
Digital ambitions
At a time when objects are interconnecting, social networks are taking over from the media and trade, processes and relations are going paperless, CNP Assurances has decided to speed up its digital transition. A Chief Digital Officer has been appointed, reporting directly to the Chief Executive Officer, with responsibility for leading and supporting the organisation’s digital transformation by capitalising on past experience, coordinating cross-functional projects and involving all employees in the new dynamic. The digital strategy will be included in the Group’s business plan as from the end of this year.
A collective and collaborative transformation process
Magali Noé, CNP Assurances’s Chief Digital Officer
“Digitalisation of consumer spending methods and relations is accelerating, leading to radically changed expectations in terms of immediacy, ease of use, service personalisation, information sharing and also confidence. The insurance market is affected in the same way as other markets. Our customers are changing and so are our employees. It’s vital for CNP Assurances to make the digital transition, if we want to compete effectively in the market. And it’s also essential to bring all employees with us in this adventure, to drive greater creativeness and agility. The customer experience goes hand-in-hand with the employee experience. CNP Assurances’s digital transformation will be a collective and collaborative process. And the same goes for its success.“