Paris, 1st August 2008
Second-quarter premium income demonstrates firm resistance in a declining market
First-half profit attributable to equity holders of the parent expected to be stable
Full-year target of double-digit growth in attributable recurring profit maintained
(Paris – 1 August 2008) - CNP Assurances, the leading personal insurer in France, with operations in the rest of Europe and in South America, has announced its premium income figures for the second quarter and first half of 2008.
Highlights
- New money declined 13.9% year-on-year in the second quarter, marking a slight improvement compared with the 19.1% decline in the first three months of the year*. Over the first half, new money was down 16.8% compared with the year-earlier period.
- In France, first-half premium income excluding Fourgous transfers was down 11.6%, outperforming the 14% decline in the bancassurance sector.
- Operations in Brazil reported very strong growth for the period, with premium income gaining 39% year-on-year.
- Premium income in Italy fell 28.4% during the first half, tracking the bancassurance sector in a persistently challenging life insurance market.
- Average technical reserves continued to increase during the first half, rising 6.3%, and remain the primary driver of earnings growth
- First-half profit attributable to equity holders of the parent is expected to be stable and the full-year target of double-digit growth in recurring profit has been reaffirmed
*Preliminary note: The following revenue figures are generally stated under IFRS. However, due to the application of IAS 39 to account for certain products for which only the premium loading is recognised, new money may be used as a meaningful comparative with local GAAP figures or as a basis for determining the load recognisable in revenue. The tables in the appendix provide both IFRS and GAAP figures.
Gilles Benoist, Chief Executive Officer, said:
"In a difficult financial environment, the downward trend in CNP Assurances' premium income observed in the first quarter slowed in the second, despite intense competition from easy-access savings products. I am also very satisfied with our highly positive performance in Brazil. Based on the Group's solid fundamentals, we expect first-half profit attributable to equity holders of the parent to be stable and are maintaining our full-year target of double-digit growth in attributable recurring profit."