Premium income of €6.9 billion
Attributable net profit of €299 million
SCR coverage ratio of 218%
Highlights :
• Premium income of €6.9 billion, down 17.0% (down 14.4% at constant exchange rates)
- Decline in Savings/Pensions business in France, reflecting a softer market and more selective underwriting policies
- Premium income in Brazil up 7.6% in local currency, but down 6.4% as reported due to the real’s weakness against the euro
- 48% of total premium income derived from unit-linked products, with a €1.0 billion net inflow to unit-linked Savings/Pensions products and a €1.7 billion net outflow from traditional Savings/Pensions products
• EBIT of €621 million, down 3.0% as reported (up 2.6% like-for-like)
• Attributable net profit of €299 million, down 8.2% as reported (down 4.5% like-for-like)
• APE margin of 15.6%
• Consolidated SCR coverage ratio of 218%
Antoine Lissowski, CNP Assurances’ Chief Executive Officer, said:
“First-quarter results are solid. Any additional impact will have to be measured in the first half of the year. Overall, CNP Assurances has a very solid business model and balance sheet, as reflected in its high solvency ratio. Since the start of the Covid-19 crisis, our teams have worked tirelessly to continue to provide professional services that raise the bar in personal protection. In keeping with its corporate values, the company contributes to the outpouring of solidarity as we serve our policyholders and the populations most affected by the crisis.”
Covid-19 impacts :
Several Covid-19 related developments affected the Group’s first-quarter earnings performance:
• Exceptional commercial measures have been adopted that go beyond the Group’s contractual obligations, such as paying daily allowances for vulnerable policyholders and for childcare costs. These measures were originally expected to have a negative impact of €23 million on first-quarter profit but the estimate has now been raised to €50 million.
• Contribution to the solidarity fund set up by the government to help micro-enterprises and the self-employed. The original contribution of €12 million for the first quarter has now been doubled to €24 million.
• Financial market movements adversely affected the investment income during the period.
• Distribution activities were sharply reduced following the closure in March of bank branches and post offices due to the Covid-19 lockdown.
The business has been re-organised, with nearly 98% of the workforce working from home. The various home-working initiatives deployed in recent years had already been tested during the strikes of December and January, ensuring a smooth transition to the new organisation.
The decline in first-quarter premium income, due to a combination of unfavourable financial market conditions and the Group’s more selective approach to new business, cannot be attributed solely to Covid-19. Results for the quarter provide only a limited view of the epidemic’s probable impact on the Group’s financial metrics. The full impact will depend on how the epidemic develops, how long the lockdown lasts, and how the financial markets and the personal insurance market are affected.