Effect on equity : €18.8bn, a positive €1.6bn difference vs IFRS 4
Effect on attributable net profit1: €1.2bn, a negative €0.7bn difference vs IFRS 4
The difference in equity reflects CNP Assurances’ resilience in a rising interest rate environment. The difference in attributable net profit is due to the impact of the standardon revenue from own-funds portfolios.
- Equity stands at €18.8 billion under IFRS 17 vs €17.2 billion under IFRS 4. The impact of rising interest rates is more moderate, reflecting a better match between the measurement of assets and liabilities under IFRS 17, with Savings/Pensions liabilities now measured at market value.
- Attributable net profit under IFRS 17 amounts to €1.2 billion vs €1.9 billion under IFRS 4. The difference in attributable net profit mainly concerns revenue from own-funds portfolios and is due to two factors. First, the recognition directly in equity of realised gains on equities held in the portfolios, without passing through the income statement, and second, the recognition of unrealised losses on mutual funds in profit instead of directly in equity.
- The consolidated insurance service result for 2022 is a profit of €2.9 billion, breaking down as €1.9 billion for the Savings/Pensions business and €1 billion for the Personal Risk/Protection business.
- Consolidated EBIT under IFRS 17 amounts to €1.8 billion vs €3.6 billion under IFRS 4.
- The Group’s contractual service margin (CSM) stands at €17.3 billion at 31 December 2022, vs €17.5 billion at 1 January 2022. The end-2022 amount breaks down as €14.1 billion for the Savings/Pensions business and €3.2 billion for the Personal Risk/Protection business.
- Equity and CSM net of non-controlling interests together amount to €29.8 billion at 31 December 2022, a decrease of €2 billion compared to the figure at the first-time application date on 1 January 2022.
Thomas Béhar, Deputy Chief Executive Officer and Chief Financial Officer of CNP Assurances
“The new accounting environment highlights our Group’s financial position and confirms our strategy and growth ambitions, our solvency, our liquidity and our ability to generate recurring profits.
The application of IFRS 9 and IFRS 17 results in greater volatility at the level of earnings, which now reflect the impact of financial market fluctuations. However, this is offset by the reduced volatility of equity due to the improved match between assets and liabilities, both of which are measured at market value.
We are among the first in the market to publish our annual results under IFRS 9/17, thanks to the outstanding efforts of the employees of CNP Assurances and its subsidiaries.”
1 Unaudited data, which may be subsequently supplemented and adjusted.