Gilles Benoist, Chief Executive Officer, said:
“Our 2008 results attest
to CNP Assurances’ operating strength and robust business model. As we
predicted, our net recurring profit before fair value adjustments was more than
10% higher than in 2007. Our solid financial position is reflected in our
solvency ratio, based on Solvency I, the quality of our equity under IFRS and
our considerable technical reserves. Added to this, we enjoy the backing of
strong shareholders.”
I -
REVENUE
New money
under French Gaap amounted to €29,204.3 million in 2008, down 9.2% on the
previous year.
Reported premium income under IFRS came to €28,322.2 million, a decline of 10.2% year-on-year.
Average technical reserves
(excluding deferred participation), which are the main driver of earnings
growth, rose by around 5.3% over the year.
The Group was the market
leader in France in terms of net new money,
with €7.3 billion representing a market share of
25%.
II -
RESULTS
Net insurance revenue climbed 21.3% to €3,121 million in 2008. Adjusted for the
reversal in the first half of the year of surplus mathematical reserves for
temporary disability risks, the increase was 12.7%. The savings business
accounted for 29% of net insurance revenue, the personal risk business 29%, the
pensions business 6%, and proprietary portfolios 36%. The personal risk business is therefore
now on a par with the savings business in terms of contribution to net insurance
revenue. In all, technical reserves generated 88% of net insurance revenue and
premium income 12%.
Administrative costs remained under tight control in 2008, increasing by just 2.3% to
€752 million (including 1% growth in France). The
ratio of administrative costs to net insurance revenue improved to 24.1% in 2008
from 28.6% in 2007.
EBIT rose 29.0% in 2008 to €2,369 million.
In line with the Group's earnings guidance for 2008, net recurring
profit before fair value adjustments stood at €1,411 million, up 26% on
2007, or 13% excluding restatements.
Fair value adjustments trimmed €681 million from
profit.
Reported profit
stood at €731 million, down 40.2% on 2007.
III - EMBEDDD
VALUE
CNP Assurances publishes its embedded value according to the
principles recommended by the CFO Forum, of which it is a member. At 31 December 2008, market consistent
embedded value (MCEV) was €70.3 per
share (before dividends), a decrease of 14% compared with MCEV of €81.3
after dividends in 2007.
Adjusted net asset value (ANAV) came to €54.3 per share before dividends, down a slight
3% on 2007.
In-force business
amounted to €15.9 per share, down 37% on the previous year, due mainly to the
high volatility of the financial markets during the year.
New business value
declined to €2.3 per share from €2.9 in 2007, also reflecting the impact of
increased volatility.
New business margin stood at 12.4% in 2008 versus 13.9% the previous year. The decrease
was essentially due to lower unit-linked sales in the current market
environment.
IV - SOLVENCY
CAPITAL
V - TARGETS AND
OUTLOOK FOR 2009
In 2009, CNP Assurances will consolidate its position as
France’s leading personal insurer, by
maintaining its disciplined approach to financial management, and will focus on
building its mathematical reserves and controlling costs.
* * * * *
Glossary
Embedded value (EV)
Adjusted NAV + value of in-force business. Starting in 2009, CNP
Assurances publishes its market consistent embedded value (MCEV), determined in
accordance with CFO Forum principles.
New business value
Discounted present value of future earnings streams from business
written during the year less the cost of the capital needed to comply with
solvency capital requirements.
In-force business
Discounted present value of the future earnings stream from in-force
business less the cost of the capital needed to comply with solvency capital
requirements.
2008 Premium Income
|
|
IFRS |
French GAAP |
|
Premium income
(€m) |
2008 |
%
(change) |
2008 |
%
change |
|
Savings |
20,618.9 |
-16.9 |
21,491.9 |
-15.1 |
|
Pensions |
2,856.5 |
+32.5 |
2,865.7 |
+25.8 |
|
Personal risk |
1,587.1 |
+4.4 |
1,587.1 |
+4.4 |
|
Loan insurance |
2,563.7 |
+6.8 |
2,563.7 |
+6.8 |
|
Health insurance |
349.3 |
+21.0 |
349.3 |
+21.0 |
|
Property & Casualty |
346.5 |
+0.1 |
346.5 |
+0.1 |
|
TOTAL |
28,322.2 |
-10.2 |
29,204.3 |
-9.2 |
|
|
IFRS |
French GAAP |
|
|
2008 |
%
change |
2008 |
%
change |
|
France |
25,065.4 |
-7.3 |
25,084.9 |
-7.7 |
|
Italy (1) |
1,227.9 |
-58.7 |
1,818.6 |
-42.9 |
|
Brazil |
1,521.5 |
+32.8 |
1,782.5 |
+26.7 |
|
Spain (2) |
242.6 |
+67.9 |
242.6 |
+67.9 |
|
Others |
264.8 |
- |
275.9 |
- |
|
TOTAL |
28,322.2 |
-10.2 |
29,204.3 |
-9.2 |
(1) Italian branches, Cofidis business in Italy
and CNP Vita.
(2) Spanish branches, Cofidis Spain and, since 5 April 2007,
CNP Vida.
Income Statement
|
|
2008 |
2007 |
Change (reported) |
Change (1) (restated)
|
EBIT |
2,369 |
1,837 |
+29.0% |
-16.9% |
- Finance costs & Associates |
(79) |
(60) |
- |
- |
- Income tax expense |
(714) |
(449) |
- |
- |
- Minority interests |
(164) |
(157) |
- |
- |
Recurring profit before capital gains |
1,411 |
1,120 |
+26.0% |
+13.0% |
+/- Net gains (losses) on equities and
property |
(271) |
58 |
- |
- |
Recurring profit |
1,140 |
1,178 |
-3.2% |
-3.2% |
+/- Fair value adjustments to trading securities |
(410) |
44 |
- |
- |
Reported profit |
731 |
1,222 |
-40.2% |
-40.2% |
Embedded value per share at 31 December 2008 was calculated on
the basis of 148,537,823 shares.
Disclaimer Some of the statements contained in this press release may be
forward-looking statements referring to
projections, future events, trends or objectives which, by their very nature,
involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated
in such statements by reason of factors such as changes in general economic
conditions and conditions in the financial markets, legal or regulatory
decisions or changes, changes in the frequency and amount of insured claims,
particularly as a result of changes in mortality and morbidity rates, changes in
surrender rates, interest rates, foreign exchange rates, the competitive
environment, the policies of foreign central banks or governments, legal
proceedings, the effects of acquisitions and the integration of newly-acquired
businesses, and general factors affecting competition.
Further information regarding factors which may cause results to
differ materially from those projected in forward looking statements is included
in CNP Assurances’ filings with the Autorité des Marchés Financiers. CNP Assurances does not undertake to update any
forward-looking statements presented herein to take into account any new
information, future event or other factors.
Download the press release
(PDF format)
