Jean-Paul Faugère
Living up to society’s expectations
The quality of our 2018 results mirrored previous trends and the strength of our business. Our performance was all the more remarkable given the more intense competition, persistently wafer-thin interest rates and frenetic pace of digitalisation.
The insurance sector cannot afford to be left behind by a rapidly changing world. For example, the French PACTE law on business growth and transformation has made further changes to the legal framework in which we operate. It has created opportunities, which we will need to harness, including measures to promote pension savings.
In 2018, the Board of Directors studied the social and environmental dimension of our stewardship. A public-sector organisation such as CNP Assurances needs to live up to society’s legitimate expectations in these areas. That’s a very natural concern for us since as a life insurer we have always taken a long-term view. One of our policies in France has been running for 72 years ! Hence our burning desire to earn the loyalty of our customers and to commit ourselves to responsible stewardship – with them and for them. For example, by 2021 we are set to halve our equity portfolio’s carbon footprint compared with 2014.That’s the commitment we have made and we are well on track to meet it, with our green investments exceeding 10 billion euros in 2018.
At the same time, we continue to invest in SMEs, mid-sized companies and startups (€500 million in 2018) because we regard it as our duty as an institutional investor to support businesses. We have become one of the top 50 global private equity investors with 4.5 billion euros in investments in the sector.
Over the past twenty years, we have undergone a transformation. Our market capitalisation has risen from 3 billion euros to over 13 billion euros. Our net profit has surged from 275 million euros to close to 1.4 billion euros. Our expansion into Brazil and Europe has given us a truly international dimension. Challenges lie ahead for us in the future. Yet we have every reason to believe that CNP Assurances will be able to rise to meet them. Our multi-partnership model keeps us agile. We have first-class human resources. And we have a proven ability to innovate.
2019 will be a crucial year in our development. Our public-sector shareholders have announced changes in the ownership structure of the investments they hold in CNP Assurances. Their goal is to make our Group part of a public-sector powerhouse led by Caisse des Dépôts, with La Banque Postale taking control of CNP Assurances within this new structure.
This plan will deepen our existing partnership with La Banque Postale. At the same time, they have reaffirmed their commitment to our multi-partnership strategy as the key driver of our future growth. As a result, we will continue to create value for all CNP Assurances’ shareholders and for all our customers.
“The insurance sector cannot afford to be left behind by a rapidly changing world.”
Jean-Paul Faugère,
Chairman of the board of directors