Paris, 13 May 2008
First Quarter 2008 Business Review
- Premium income in France down 17.9% excluding Fourgous transfers, in line with the performance of the bancassurance sector
- International premium income up 16.3%
- Technical reserves up 6.6%, despite lower stock market prices
- Target of double-digit growth in recurring profit in 2008 reaffirmed
CNP Assurances’s premium income declined 19% in the first quarter of 2008, as a difficult financial environment led to strong competition from easy access savings products in France and Italy. Premium income in France was down 24% on a reported basis and 18% excluding Fourgous transfers, while international premium income was up 16%. Reflecting the trend observed in the fourth quarter of 2007, the French life insurance market was adversely affected by stiff competition from short-term savings products offered by banks and also by a fall-off in unit-linked sales and Fourgous transfers due to lower stock market prices. By contrast, the Group's technical reserves – which are the main drivers of earnings growth – rose by 6.6% despite the decline in stock market prices, without which the increase would have reached 7.6%. Based on this performance and as announced at the Annual General Meeting of 22 April 2008, the Group reaffirms its target of double-digit growth in recurring profit for the year, barring any significant worsening of the financial crisis.