For more than 150 years, CNP Assurances has been protecting people against the risks of everyday life. Our most precious asset, the trust of our partners and clients, is rooted in a set of strong values, a prudent management approach and a commitment to service.
“CNP Assurances has everything it needs to proactively address the requirements of its individual and group insurance clients.”
CNP Assurances. With the persistently gloomy economic cl imate and the uncertain iscal environment weighing on saving decisions, CnP assurances conirmed its position as france’s leading personal insurer and continued its proitable growth in Brazil. the overall resilience of our savings business in europe was all the more satisfying given the fact that the market experienced signif icant net out f lows, while the robustness of our personal risk and term creditor insurance businesses is a reassuring indicator of our ability to create value in the coming years, despite the weak outlook for the economy and, consequently, for our business environment. I am all the more conident now that the Board of directors, on the recommendation of Chief executive oficer frédéric Lavenir, has clearly set out CnP assurances’s strategic growth paths. While we will work with our partners to continue ine-tuning the strategy in 2013, important choices have already been made, shaped by the conviction that we should irst capitalise on our strengths. first and foremost, this means giving our main distribution partners opportunities to enhance and expand the insurance offer marketed to their clients. however, faithfulness to our legacy model shouldn’t act as an obstacle to change, including in the french market. there is scope for renewed growth in france for technically creative and agile insurers. We have everything we need to be in this group and to proactively address the requirements of our individual and group insurance clients. Our strategy must also take into account the importance of our Brazilian subsidiary Caixa seguros, which contributed 36% of our total net insurance revenue in 2012. there is still a lot of growth potential in Brazil. We can legitimately capture this potential without straying from the path of prudence and technical discipline that has historically proven successful. Our identity has been shaped by our business’s roots in the public sector, in both Brazil and France. With this position come certain responsibilities in terms of service quality, affordability for low income savers, transparency, security and socially responsible investing. it encourages us to forge partnerships with the publ ic sector even
responses to their requests, but also entails a high level of service to their networks and clients. We are committing all our resources and energy to this challenge.
With Caixa econômica federal, our partner in Brazil, we are continuing to expand our insurance offering for the
country’s burgeoning middle class. Brazil is a market where innovation is the key to harnessing growth, for example, the promising launch of online dental insurance products. We are also aiming to meet the new needs of the hundred million people in Brazil who are on low incomes. our partner’s deep national network gives us a huge advantage in reaching this group. We will also be open to acquisition opportunities.
Directors leads the work of the Board and the Strategy Committee. The Committees of the Board are chaired by independent directors.
Committee sits on the Boards of the main subsidiar ies in France, and
* The appointment of Frédéric Lavenir as a director for a period corresponding to his term as Chief Executive Oficer will be submitted for ratiication by the Annual General Meeting on 25 April 2013.
Committees of the Board Audit and Risks Committee Stéphane Pallez*, Chairman Philippe Baumlin Marcia Campbell* Virginie Chapron du Jeu Jean-Yves Forel*** Philippe Wahl
Remunerations & Nominations Committee Henri Proglio*, Chairman Jean-Paul Bailly Jean-Paul Faugère* Olivier Mareuse**** François Pérol
senior manaGement Frédéric Lavenir, Chief Executive Oficer Xavier Larnaudie-Eiffel, Deputy Chief Executive Oficer, International Operations, Development and Partnerships Director Antoine Lissowski, Deputy Chief Executive Oficer, Finance Director
Executive Committee Frédéric Lavenir, Chief Executive Oficer Xavier Larnaudie-Eiffel, Deputy Chief Executive Oficer, International Operations, Development and Partnerships Director Antoine Lissowski, Deputy Chief Executive Oficer, Finance Director Michel Bois, Programmes, Organisation and Information Systems Director Jean-Claude Chaboseau, Individual and Consumer Partnerships and Partnership Centres Director Yves Couturier, Financial Institutions Partnership Centre Director Corinne Gouthière, Policyholder Services Director Bérengère Grandjean, Human Resources Director Martine Rapoport, Group Insurance Client Relationships Director Huguette Rellier, Internal Audit and Quality Director, acts as secretary to the Executive Committee.
(savings, pensions, personal risk, health insurance, term creditor insurance, property and casualty)
(sales support) mFPrévoyance sA (personal risk) FONGEPAR (employee savings) CNP Caution (loan guarantees) Groupe Assuristance
sPAIN madrid CNP vida de seguros y Reaseguros (savings, pensions, term creditor insurance) CNP Barclays vida y Pensiones
(savings, pensions, personal risk, term creditor insurance) CNP España, a CnP Assurances branch (term creditor insurance)
CNP Italia, a CNP Assurances branch (term creditor insurance, personal risk)
CNP Laiki Insurance Holding, (savings, pensions, personal risk, property and casualty)
NET INsURANCE REvENUE By PRODUCT sEGmENT Product positioning that is aligned with demographic trends and the growing social demand for protection and security.
* Personal risk, health insurance, term creditor insurance and property & casualty
NET PROFIT AND DIvIDEND RECORD (€ per share and €m for proit), 2006 to 2012
Percentage under permanent contracts (CnP assurances and consolidated subsidiaries**): 97%. training (CnP assurances and consolidated subsidiaries**): 5% of payroll for CnP assurances, 4.4% for the Group.
Paper use reduced by 25% in 2012. Greenhouse gas emissions per
Corporate Social Responsibility Report the 2012 edition of the Corporate social responsibility report, including all of the detailed indicators used to track our sustainable development process, is available on request from CnP assurances or may be downloaded from www.cnp.fr * CnP assurances france data. ** france and internationall. *** for more details on the rating criteria, go to www.vigeo.com
LAStINg SHAReHOLDeR RELATIONsHIPs CNP Assurances has built lasting relationships of mutual trust with its shareholders.
A diversified shareholder base CNP Assurances enjoys the backing of a stable group of core shareholders, united by a shareholder agreement. The Group has some 140,000 individual shareholders and 0.35% of the capital is held by employees.
Listing: Euronext Paris IPO: 6 October 1998 Share price on 31 December 2012: Market capitalisation on 31 December 2012: €7.5bn (source: Bloomberg) Shares outstanding: 643,500,175 Number of individual shareholders: around 140,000 Average daily trading volume in 2012: 394,414 (source: Bloomberg)
SBF 120 Euronext 100 DJ Euro Stoxx Insurance ASPI Eurozone 120 Ethibel Excellence Index Europe
Jones Eurostoxx Insurance index over the same period. In 2012, the share gained 21.16% in a highly volatile market and an environment shaped by the European sovereign debt crisis.
CNP AssURANCEs sHARE PERFORmANCE Share price between 6 October 1998 (€5.93) and 15 February 2013 (€12.35)
18-21 making plans for the future 22-25 having someone to count on 26-29 Wasting no time in preparing for retirement 30-33 Living at home for as long as possible
53% OF FRENCH PEOPLE intend to Continue savinG over the next six months*
Who are your clients? They are low, middle and high income savers and professional people, and they’re also CNP Assurances’s major distribution partners, the CNP Trésor network, private banking specialists and independent inancial advisors. Leveraging our expertise in life insurance, personal risk insurance and personal and professional asset management, we monitor developments in the market, produce personal asset reviews and provide guidance to the distribution partners’ advisors.
What wealth management needs do you meet? We cater to every need, from the simplest to the most complex. This requires constant monitoring and the best legal expertise to keep on top of frequent regulatory changes. Our aim is to select the particular legal framework best suited to the client’s inancial situation, and to provide inancial advice tailored to our clients, with both standard and bespoke services.
covers the cost of rent in the event of tenants falling ill, having an accident, or losing their job. insurance application and management tools have also been upgraded, with a service allowing policyholders to ill out health questionnaires at home online, and another for reporting claims online.
Focus on the high-end segment CnP assurances’s number one strategic priority is to strengthen its partnerships by expanding and enhancing the offer. With this in mind, we are working with one of our major partners to create two high-end life insurance pol ic ies a imed at af f luent c l ients with s igni f icant sav ings capacity. i t i s a l a rge-sca le in i t i a t i ve that reflects our determination to support La Banque Postale and the Caisses d’epargne in the drive to grow their private banking franchise.
Life insurance remains the most popular long-term personal savings product. Of the €2.5 billion set aside by French savers in 2011, more than half (56%) was invested in life insurance, compared with 8% in home savings and PEP long-term savings accounts and 36% in other products, such share and bond portfolios and employee savings plans. Life insurance actively contributes to inancing the economy, with insurers investing €925 billion in companies in 2011. Moreover, despite the recession, they increased their support for SMEs, investing €3 billion more in the small business sector than in 2010.
Why is CNP Assurances developing an online claims service? The Group’s ambition is twofold: to improve the quality of client services as part of its BtoB business model, and to respond to the multi-channel expectations expressed by clients in satisfaction surveys. The main advantages of the online claims service is that is saves time for the policyholder and facilitates the administrative process. Claims are entered into the system as soon as they are reported, 24/7, considerably reducing the simPlifYing insurAnce Jean-Bruno PaGazzi, head of client relations/banking client department processing time. This service will be deployed from 2013 by one of our major partners that wants to offer its clients a full online service from the health questionnaire and the loan and insurance offer, to the handling of the claim.
680,000 new PersonAl risk contrActs soLd By the Caisses d’eParGne netWorK and La Banque PostaLe in 2012
What expertise did you use as the foundations to build up Caixa Seguros Saúde? Caixa Seguros Saúde was created from scratch in just a few months on very solid foundations. It is backed by a well-known insurance company, Caixa Seguros, whose tArgeting 180 million brAziliAns César LoPes, head of personal risk and health insurance, Caixa seguros teams helped in developing the products, processes and information systems. In addition, Caixa Seguros’s longstanding partner, PAR, contributed its marketing expertise and canvassed our irst clients.
brazil, the springboard for health insurance since it launched its personal risk business in 2010, Caixa seguros has gained 800,000 clients. in the employee beneits market, i ts f lagship product Vida Empresarial has been selected by 82,000 companies. sales of the funeral insurance product Amparo, which is aimed at the emerging middle class and costs just a few reals a month, have reached 184,000 policies. in 2012, Caixa seguros entered the promising health and dental insurance market. the emergence of a growing middle class and the attraction of this
ensure that the funeral is organised in accordance with their stated wishes and make an emergency pay-out to enable the family to meet initial costs associated with the death. in the event of loss of employment or disability, comprehensive term creditor insurance provides full protection and avoids the insured losing his or her home.
the pension business has a future CnP assurances responds to this demand with three types of solution: life insurance contracts, personal pension products, and group contracts. Life insurance contracts are popular for their lexibility. speciic products such as the PerP (Plan d’épargne retraite Populaire) personal pension plan also allow savers to build up a supplementary income. We offer a full range of PerP contracts for our partners, comprising
traditional contracts with a unit-linked formula and points-based plans, which are available to all clients, whether they work for a company, are self-employed or are not working. in group insurance, we offer defined contribution and deined beneit plans, termination beneit plans and early retirement plans. the Plan d’epargne pour la retraite Collective (PerCo) plans managed by our subsidiary fonGéPar, complete the line-up. PerCos are pension savings plans that employees pay into in the same way as a company savings plan. they can invest their statutory or discretionary profit sharing bonuses in the plan or their own funds, and the company generally also pays a contribution. savings are blocked until retirement, except following certain speciic events when early withdrawal is allowed.
cnP trésor, local insurance advisors in 2012, the network of advisors directly employed by CnP assurances marketed its life insurance and pension solutions thanks to initiatives on the themes
A question of trust aLine diouri, head of business development for CnP trésor, south-east region
How did you react to this change in behaviour? CNP Trésor advisors were very successful in adapting to the changing situation and the expectations of policyholders. We strengthened their technical and marketing expertise and continued our asset management certiication programme. More than 50 advisors are now certiied. We invested even more in client support and advice in response to the current environment. For example, all clients affected by the lower inheritance tax threshold were contacted to allow them to make different choices for their assets and avoid unpleasant surprises for them or their families.
How can client confidence be maintained? In our business, a local presence is essential to build conidence. Clients want us to be there when they need us and to demonstrate the beneits of the protection solutions on offer. Client satisfaction sustains the relationship and nourishes our growth. That’s why our quality standards are combined with eficiency standards to create long-term relationships built on trust.
of family protection and retirement planning. the approach consisting of visiting policyholders in their home to advise them on their protection needs is particularly suited to CnP trésor’s baby-boomer and senior clientele. By performing a comprehensive analysis of the client’s risks and needs, in the manner of a personal asset manager, CnP trésor insurance advisors create long-term insurance relationships with their clients, based on trust.
Pension solutions score points in southern europe austerity plans in southern europe have undermined the government-sponsored pension systems and encouraged insurers to promote their retirement solutions such as saving plans and personal pension funds. in spain, new money invested in CnP BvP’s (Barclays vida y Pensiones) personal pension plan reached a record high, lifting CnP BvP to sixth place in this segment with a 4.5% share of the market. and while the revenue contribution of pension products remains marginal in italy and Portugal, CnP BvP is set to expand its offer in 2013.
the emerging brazilian middle class the pensions business maintained its momentum in Latin america, particularly in Brazil. in 2012, the business grew by 9.6% and was the largest contributor to
A leading annuity provider, CNP Assurances has developed the CNP Patrimoine Revenus life annuity. This wealth management product allows clients to build up an additional income for life, in total security: the policyholder is guaranteed to receive the annuity in quarterly instalments throughout the rest of their life. With the reversion option, in the event of death, the annuity can be paid to the deceased’s spouse or another designated person. Another source of lexibility is the option for the client to terminate the contract at any point during a speciied “reserve” period and to take out the “reserved capital” in a lump sum. This option is also available to beneiciaries in the case of the policyholder’s death.
Caixa seguros’s proit, alongside term creditor insurance. the emergence of a growing middle class, which now accounts for almost 60% of the population compared with 40% in 2004, offers enormous growth potential. rising purchasing power and the widening range of Caixa seguros products is helping to drive demand for protection and to instil an insurance culture. this growing section of the population is now heavily represented in the favelas, where Caixa seguros is present through Caixa econômica federal’s network and beneits from Caixa’s image as the people’s bank. as a vehicle for implementing public policy, Caixa distributes family allowances, manages unemployment insurance, and plays a key role in supporting the Brazilian home ownership dream by providing 75% of the country’s mortgages.
leader in long-term care the high cost of long-term care and the limitations of social welfare programmes prompted CnP assurances to invest early on in developing insurance solutions for this risk. in the 1980s, we developed voluntary and compulsory participation group policies distributed by partner benefits institutions and mutua l insurers and in 2002, we launched our irst individual long-term care policies. With 30 years of experience in this market, and our ability to pool risks in order to offer more affordable solutions, the Group is leading the way with its partners.
CNP Assurances offers innovative solutions to prepare for the possibility of longterm care needs, combining insurance and assistance. They stand out because they bring together inancial beneits and in-kind services, covering the affected person and supporting the carer.
In France, over 4 million people are carers for family members, more often than not without any help. To support them, in 2012 Filassistance created the 360° carer service, a bespoke multidimensional module. Its services include help with administrative procedures when the insured irst becomes dependent, respite solutions, support, training and information for the carer and the person being cared for to help sustain their relationship and social life. The major challenge is to help the carer to stay in good health.
36-39 insurance for all 40-43 a socially-responsible investor 44-47 Contributing to the real economy 48-51 a socially-responsible employer 52-55 CNP Assurances’s actions in the healthcare area
INSuRANCe for All as france’s leading personal insurer, CnP Assurances is a major provider of savings and protection solutions for families and individuals. We partner our policyholders at each stage in their life by supporting them in fulfilling their projects, saving for retirement, or if they fall sick, become disabled, lose their job or experience a loss of autonomy. This societal role underpins our products, our policyholder acceptance criteria and our competitive differentiation, spurring us to work closely with our distribution partners to take into account their clients ’ characteristics in terms of age, risk appetite and financial revenue.
CNP Assurances’s business consists of offering products that protect against the risks of everyday life. Its deep roots in the public sector and its presence in the heart of French society for over 150 years have encouraged the
The current economic crisis threatens the pillars of our welfare systems, social security reimbursements, the state pension and unemployment benefits. As a result, people are looking for increased protection, particularly families and the more vulnerable members of the population. This strengthens our resolve to offer insurance solutions for all budgets.
An unflagging commitment to combating financial exclusion Our comprehensive savings, pension and protection (long-term care, death benef it, funeral, accident and
Is it possible to broaden access to term creditor insurance while also complying with your financial imperatives and your business’s prudential regulations? It’s a delicate balance. Over the years, we’ve become better at striking the right balance, thanks to advances in two areas. We’re more skilled at taking into account improvements in medical care and therapeutic advances. And we also pool risks more effectively, thanks in part to the increased size of the insurance book. The result is that after a few the benefits of Pooling andré moLin, underwriting and insurance risk manager years of efforts, we are now able to offer far broader protection to thousands of people, and even to offer cover without any premium uplift. We know that higher premiums and restricted cover can have serious consequences for our clients. That’s why we are working continuously to make it easier to obtain cover, particularly for people representing an aggravated health risk. Our mission is to insure as many policyholders as possible, with the broadest cover and the lowest premium rates. This is a constant commitment.
sociAl resPonsibilitY, OuR COMMItMeNt health insurance) offerings are regularly adjusted to remain closely aligned with economic and social realities. We have a mission to help policyholders to protect their future and that of their families at a reasonable cost, whatever their age, income or state of health. our expertise lies in accurately analysing risks and pooling them. By pooling risks - i.e. sharing them among policyholders - we are able to offer affordable protection over the long term. in france, for example, our distribution partners’ close relations with policyholders help us to offer affordable products for their most vulnerable clients and to insure the widest possible range of risks in order to reduce vulnerabilities.
embodying our corporate values, our approach involves expertly assessing insurance r isks and managing the related cover in a disciplined, responsible and secure manner throughout the Group. these principles are driving efforts to make insurance more accessible and combat financial exclusion. It’s a battle we have been waging since the outset, and continue to wage with the same conviction.
AErAS* convent ion. In 2012, we rejected just 0.2% of term creditor insurance applications.
The 2012 AErAS convention includes two major changes. It allows borrowers representing an aggravated health risk to reduce the resulting premium uplift, provided they fulfil the minimum income criteria. It also provides disability cover for insureds who were denied temporary incapacity cover or were granted temporary incapacity cover with exclusions when they were accepted for term creditor insurance. In 2012, this specific new form of disability cover was accepted for over 100,000 insureds.
We welcome these changes which will help more people representing an aggravated health risk to obtain insurance and improve the coverage of longterm health problems.
Caixa Seguros’s Amparo funeral insurance is available for just a few reals a month. If a family breadwinner dies, leading to an abrupt loss of revenue, Amparo covers the cost of the funeral, including the full range of associated services, and the family also receives a cash allowance over six or nine months, giving them time to get back on their feet. Sold through the bank branches and 12,500 lottery sales booths of its partner, Caixa Econômica Federal, this product was an immediate success when it was launched in 2011, conirmed in 2012 when contract sales doubled. By the end of 2012, a total of 184,000 Amparo contracts had been sold. Amparo’s success is easy to explain – it responds to the needs of Brazil’s low income families at an affordable price. It illustrates what can be achieved by pooling risks in a market represented by 194 million inhabitants and by deploying CNP Assurances’s affordability culture in emerging markets.
Attentive to societal concerns According to a survey carried out in
For a long time now, we have been examining the challenges for French society of caring for the disabled and for seniors. Because of the size of our personal risk and long-term care insurance businesses, we have a wealth of experience and are frequently invited to participate in the government’s consideration of the problem, as well as playing a major role in the debate on emerging risks, particularly loss of autonomy. By keeping our finger on the pulse in this way, we are able to develop offers closely aligned with society’s changing needs and to constantly refine our analysis of risk profiles. In health insurance, for example, we regularly take part in working groups on various pathologies in order to keep up-to-date about therapeutic advances, such as the major strides in ophthalmology made in recent decades. We are continuing to develop new services, such as the assistance and prevention services of fered by
Filassistance which meet the needs of insureds made vulnerable by age or disability.
* Convention to help people representing an aggravated health risk to obtain insurance and credit.
In 2006, we decided to develop a socially responsible investing (SRI) approach
From its day-to-day management to its compliance with major international standards, CNP Assurances is committed to investing its policyholders’
premiums in exemplary assets, selected using the most exacting socially responsible investment screens. The Group’s approach is applauded by experts as giving meaning to policyholders’ investments.
As well as excluding arms manufacturers whose products include land mines or cluster bombs, and companies that speculate in agricultural commodities, the strategy has been applied to the equity portfolio according to a best-inclass approach that consists of selecting the best-performing companies in each industry based on ESG criteria. Problems identified during quarterly ESG testing are discussed with the company concerned and may lead to a decision not to purchase any more shares in that company or even to sell the existing holding.
A responsible shareholder Since 2008, this approach has been illustrated by our participation in the vote at the general meetings of listed companies whose shares are held in our portfolio.
We pay particular attention to their corporate governance practices and generally choose to encourage improvement over time. By using our direct inluence to drive improvement in corporate governance practices, we stand apart from the majority of institutional investors. in 2012, we voted at the general meetings of 109 french and european companies, demonstrating our commitment to acting as a responsible investor.
“incorporating environmental, social and governance criteria in the investment selection process.”
Human rights 1. Businesses should support and respect the protection of internationally proclaimed human rights; and 2. make sure they are not complicit in human rights abuses.
Environment 7. Business should support a precautionary approach to environmental challenges; 8. undertake initiatives to promote greater environmental responsibility; and 9. encourage the development and diffusion of environmentally friendly technologies.
cnP AssurAnces Pledged to uPhold the 10 PrinciPles of the globAl comPAct in 2003 sociAl resPonsibilitY, OuR COMMItMeNt investments in sri funds (market value in € million at 31 December)
investments chosen by CnP assurances investments chosen by policyholders investments chosen by participants in employee savings plans * ipsos survey carried out in october 2012 for esG-analysts fir and eiris. * esG: an approach that consists of systematically taking into account environmental, social/societal and governance (esG) criteria.
as of 31 december 2012, we had €50 billion invested in major french groups, including €10 billion in shares and €40 billion in bonds. in line with the long-term focus of our investment strategy, equities are held for around seven years on average and bonds until maturity. this gives issuers the stability and visibility they need to see through their growth projects.
stable support for large companies the Group partners companies in all sectors of the economy, such as manufacturing industry, retailing, banking, telecommunications and luxury goods, including the jewels of the french economy. as an engaged investor, we talk regularly with these companies and we systematically vote at their general meetings. in this way, we are able to establish close relations with their management and financial partners, in order to develop appropriate new support strategies, for example buy purchasing their debt.
We don’t invest in them directly, but rather through private equity funds selected for their ability to partner the development of investee companies over the long term, alongside their management. Investees are selected for their strategic contribution to the fabric of the
CNP Assurances is one of France’s biggest institutional investors and a major contributor to the French economy, with €116 billion invested at the end of 2012. By inancing public sector and corporate issuers, the Group provides them with the stability needed to support their development.
cAixA seguros investing in the brAziliAn dreAm bond issues by regional authorities. and by purchasing sovereign debt, we help to limit the government’s vulnerability and contribute to stabilising the french economy over the long term. Lastly, through specialist funds, we play a role in financing national infrastructure for transport, renewable and conventional energies, and data transmission. As of the end of December 2012, some €750 million was invested in these projects, an amount that is set to rise in the coming years given the country’s considerable and growing infrastructure needs.
A diversiied property portfolio As of end-2012, we had €8 bil l ion invested in French real estate.
We also help to stimulate regional economies by investing in retail properties, with a portfolio valued at €2 billion at the end of 2012 that comprises the Martigues,
In addition, we provide financing for hospital, private clinic and retirement home buildings and support growth in the private housing supply through property management agents.
Actuarial analyses and statistics 132 Finance, statutory and management accounting 373 Contract administration 1,000 Sales and marketing 553 IT project support 244 Corporate functions 817
You’ve just won the Female Corporate Actuary of the Year award. What does that mean to you? I’m very proud to have received this award for CNP Assurances and very pleased for my team. It’s a powerful acknowledgement of the actuarial profession which is relatively unknown among the general public. My work consists of pricing insurance contracts. This is a highly technical profession that forms part of the commercial relationship. Pricing a product means optimising both the beneit for the client and the product’s proitability for the company.
Is it an advantage being a woman in this profession? As in many professions, women often have to be very skilled in order to be recognised. But things are changing. I’ve received many congratulations, particularly from male actuaries who are very happy to have been represented by a woman.
women mAke uP 61% of CNP ASSUrANCES’S WOrKFOrCE, 51% OF MANAGErS AND 30% OF SENIOr MANAGErS
A dynamic mobility policy in a period of budget restrictions, internal mobility is a means of leveraging performance.in 2012, only positions requiring very specific skills were filled through external hires. In all, 71% of vacant positions were filled internally, versus 59% in 2011 and 56% in 2010.
diversity, a valuable and valued asset We are committed to combating all forms of discrimination and to treating all employees equally. Recognition of this commitment was confirmed in 2012 when the Sea l of D ivers i t y awarded to CNP Assurances in 2009 was renewed by AFNOr for a further four years.
Since 1995, a corporate agreement has set binding targets for the hiring of disabled workers. As of 31 December 2012, disabled employees represented 5.9% of the workforce and 95% were employed under permanent contracts.
Initiatives undertaken by the Group during the year mainly consisted of improving disabled access to the
Preventing psychosocial risks CNP Assurances has long been attentive to preventing situations that could pose a risk to employees’ physical and mental health. In 2012, an agreement on psychosocial risks was signed and existing preventative measures were strengthened. In particular, one program used the theatre as a special means of raising employee awareness, with nearly 80% of the French teams attending an educational play in Paris and the regions.
Bem Vida, a programme to promote gene ra l we l l -be i ng and combat stress, supported by legal and psychological advice.
Going beyond its life insurance remit, CNP Assurances is committed to supporting public health through its Foundation. It supports charitable projects, including those put forward by employee volunteers, with two main areas of outreach: reducing pain and saving lives.
Selection criteria favour innovative projects or initiatives that are still relatively undeveloped in the health sector.
Handident PACA association to improve access to dental care for disabled people, and it helped to finance the Epippain 2 epidemiological study on pain management for new born babies.
“fighting pain in patients of all ages is a priority for the cnP Assurances foundation.”
Lutter Contre la Douleur health network in partnership with the Saint-Antoine hospital in Paris. It also renewed its support for the charity Le Rire Médecin, which sends clowns to the paediatric units of 14 hospitals to cheer up children who are fighting illnesses.
In addition, the Foundation supports the development of learning tools for patients and health professionals, and distributed 4,000 booklets helping GPs to manage pain in patients undergoing palliative care, 5,000 cartoon books dealing with neuropathic pain, and a training video about how to use the
In 2012, the Foundation also channelled €60,000 into public awareness initiatives. Examples include the Summer 2012 Saving Lives Tour organized by the RMC/BFM charity to raise awareness among holidaymakers in eleven towns in France about how to use def ibr i l lators. Thanks to the programme, 6,500 people were given training, and 10,000 information leaflets were distributed.
Gilles de la Tourette, a charity that provides support for families affected by Tourette’s syndrome.
In 2012, four funding requests submitted by CNP Assurances employees resulted in the deployment of 36 defibrillators and training for residents in how to use them.
€770,000 SPENT BY THE FOUNDATION FOR ALL ITS PROGRAMMES IN 2012 19 ProJects TO IMPROVE PAIN MANAGEMENT SUPPORTED IN 2012
sociAl resPonsibilitY, OuR COMMItMeNt caixa seguros philanthropic initiatives the Brazi l ian subsidiary suppor ts numerous social, cultural and environmental projects. it is the country’s first insurance company to offset greenhouse gas emissions from its headquarters by supporting a tree planting programme run by the Iniciativa Verde trees were planted under this programme on the Atlantic coast in areas affected by the constant expansion of the dairy industry, which is largely responsible for deforestation. This reforestation initiative is replenishing carbon sinks and promoting biodiversity, water resources and soil conservation.
Safety forum, an event which brings together representatives from the police, institutions, research centres and NGOs from all over the country.
With strong roots in the public sector, CnP Assurances is backed by a stable shareholder base consolidated by an agreement between Caisse des Dépôts, the French State and Sopassure (the holding company for La Banque Postale and Group BPCE), which together hold more than 70% of the capital. Founded over 150 years ago, CNP Assurances has proved its ability to withstand crises throughout its entire history and has demonstrated critical strength in the particularly challenging economic and financial environment of recent years.
Asset and risk management are an essential feature of the insurance business and a driving force behind our teams, who work to ensure that we fulfil our commitments and retain the trust of all our current and future partners, whether distributors, co-insurers or reinsurance clients.
A resilient performance In a French life and pensions market that contracted by €3.4 bil l ion in 2012 according to the industry federation
A reinsurer for mutuAl insurers Jeannine Loussouarn, manager, Business development and Partnerships, Companies and Local authorities the “cost” in terms of capital. By virtue of its inancial strength, experience and shared values concerning employee protection, CNP Assurances plays a role one way or another in the different segments of the employee beneits market. Its responsiveness and ability to evaluate risks in a constantly evolving regulatory environment are critical strengths. Offering reliability and risk analysis expertise, CNP Assurances is the preferred partner of employee beneit institutions.
client relAtionshiPs, OuR PRIORIty has built a reputation for prudent, rigorous asset/liability matching, securely managing assets to del iver stable returns over time. in response to the european debt crisis, action was taken in 2011 and pursued in 2012 to wind down euro zone sovereign debt portfolios considered as high risk. By the end of the year, the sums invested in irish, Portuguese, italian and spanish sovereign debt by CnP Assurances France had been reduced to €10.5 billion, and the Group no longer had any Greek sovereign debt exposure. In addition, the percentage of assets invested in equities was reduced to 6.6% from 9.3%
As a personal insurer and the preferred reinsurer of employee beneits institutions, CNP Assurances is keenly aware that its insurer inancial strength rating is of key importance in maintaining trust. In 2012, Standard & Poor’s afirmed CNP Assurances’ A+ rating, with a negative outlook. This decision recognises the initiatives deployed over the past year to safeguard the Group’s solvency ratios and rating. In particular, Standard & Poor’s commented on the effectiveness of the dividend reinvestment option, the action taken to reduce high risk asset portfolios and the inancial lexibility recently demonstrated through the successful issue of subordinated debt on the Asian markets. The negative outlook relects the agency’s reservations as to the economic environment, which is impacting the industry. All in all, afirmation of the Standard & Poor’s rating is a positive sign at a time when the ratings of many inancial institutions and sovereign issuers are being downgraded.
stAndArd & Poor’s Affirms its A+ rAting 298% solvencY i rAtio At end-2012 INCLUDING UNREALISED GAINS
the strength of A reinsurer reserve will act as a balance sheet cushion to protect against any future shocks. the Group’s solvency ratio was higher than ever, with required capital under solvency i covered more than 2.98 times including unrealised gains, up 167 points from end-2011. it was also high based on tier 1 capital alone, with required capital covered 1.122 times at the yearend. the solvency ii coverage ratio – defined as the ratio of eligible capital to the solvency capital requirement – was estimated at 1.70 at end-2012, representing a 20-point increase that was particularly notable given the adverse economic and financial environment.
in-house expertises The Investment Department is made up of 130 people, including some 20 asset managers, a number of credit analysts, a group of mutual fund selection and supervision experts, and teams of portfolio managers and cash managers.
Controlling risks is the responsibility of two departments with complementary roles. The Risks and Solvency department has overall responsibility for managing financial and technical risks and evaluating capital adequacy. The Risks and Compliance department is responsible for permanent controls and for overseeing the management of operational risks.
client relAtionshiPs, OuR PRIORIty the group insurance business mobilises the expertise of three CnP Assurances teams that are entirely dedicated to our partners: the Mutual Insurers Partnership
In 2010, our long-standing relationship with France’s large civil service mutual insurers was strengthened with the creation of the MFPrévoyance SA joint venture
in partnership with MFP Services. This alliance provided a vehicle for combining
disability, long-term care and term creditor insurance with the mutual insurers’
intimate understanding of the social economy. MFPrévoyance serves the entire mutual insurance market with solutions that expand and diversify the employee benefits of fer, leveraging
CNP Assurances’s knowledge in term creditor insurance and long-term care in particular. In this spirit, we initiated a project with our partner two years ago to analyse the changing needs of the civil service mutual insurers in its network.
Our analysis led us to develop a longterm care option for inclusion in the health insurance policies of two million MGEN
policyholders. In 2012, 15,000 of them chose to enhance their contract with the supplemental cover.
4,600 businesses provide mandatory or optional death/disability, health, long-term care and pension solutions to their employees through bespoke group insurance policies designed by CNP Assurances.
73 non-Profit orgAnisAtions provide pension products and death/disability cover to their members through
315 finAnciAl institutions distribute CNP Assurances term creditor insurance cover under group contracts.
It designs and prices bespoke pension and employee benefits products for its partners and clients – which often handle distribution and administration – and monitors the products over the life of the contract. The department is made up of 130 people who work closely with our actuaries and legal experts.
40-listed companies, with 100% madeto -measure pension, death/disability, health and long-term care solutions. For example, to meet the needs of an industrial group seeking to outsource management of its pension plans in its var ious host countr ies, inc luding
Denmark, where the tax system is particularly complex, we took the initiative of setting up a branch in that country.
employee beneits solutions for smes and microenterprises, a strategic priority A full range of modular and standard health, death/disability and pension solu-
client relAtionshiPs, OuR PRIORIty tions has been developed for very small, small and mid-sized businesses. one of the Group’s four strategic priorities, presented at the time of publication of its 2012 results, is “to build sales of employee benefits solutions to SMEs and microenterprises, and also to public sector employers, through our mutual insurance and employee benefits institution partners.
CNP Assurances is supporting their evolving employee benefits and pension needs. In late 2011, local governments were given the go-ahead to participate in supplementary health cover and protection schemes for their employees.
In particular, we actively serve the needs of fire fighters through a compulsory pensions contract and customised employee benefits contracts provided through the dedicated mutual insurer Mutuelle
Centre designs CNP Assurances’s term creditor insurance offer and coordinates the partnership network of banks, home loan specialists, consumer loan specialists and social economy lenders, such as the committees that collect and invest the housing levy payable by companies under the French government’s “Action
Logement” programme. The Centre successfully combines the experience and innovation capabilities of 240 people to make CNP Assurances the number one term creditor insurer in France, with 30%
The secret of its success lies in four main ingredients: the pooling of risks, to meet the needs of clients in all income brackets; a multi-faceted business model as insurer, co-insurer and reinsurer; strong innovation capabilities, which support our partners’ performance in alignment with client behaviours, with tools such as the
CNPNet Internet-based application for example; and – our most distinguishing attribute – mutual trust, underpinned by long-term partnerships such as the relationship nurtured with Crédit Agricole over the past 50 years.
“cnP Assurances’s experts were mobilised alongside those of mutuelle nationale territoriale (mnt) among other partners to improve the employee beneits offer for civil servants.”
client relAtionshiPs, OuR PRIORIty the Policyholder services department has the important task of improving the quality and efficiency of CNP Assurances’s services in order to consolidate its partnerships. It manages the life insurance and personal risk products sold by La
Service Quality department defines the Group’s policy on quality of service in close cooperation with its major pa r tne rs and the Process Management department is responsible for management account ing and productivity monitoring.
strategic projects Client satisfaction is an everyday concern for the Policyholder Services department. Its constant challenge is to
CNP Assurances is an integrated, end-to-end administrator that manages contracts from the front line to the back ofice. It strives to enhance its partners’ sales effectiveness and foster client satisfaction at every step of the policy administration process.
How are paperless solutions improving service quality? With each of our partners, we work on developing integrated, collaborative processes from the partner’s bank branch to its back ofice, all the way to CNP Assurances’s teams of administrators and experts. The goal is to give everyone an overall vision of the client and full details of transactions in progress, regardless of the initial point of contact, whether in a branch or by telephone, fax, letter or the Internet. In 2012, electronic policy statements, certiicates and tax forms* were made available to all the insurance advisors and policyholders within our two main partner networks in France. The advisors can view the documents directly on their workstations and answer client inquiries in real time. Policyholders
The second project involves modernising work f lows between the Ca isses d’Epargne and CNP Assurances. Its objectives include shifting to paperless solutions, encouraging the use of electronic media and setting up a system for seamless, end-to-end information sharing between the network and the insurer.
boosting partner eficiency with advanced workstations The workstations provided to our partners allow client relationship managers in bank branches to instantly perform a vast number of operations and spend more time advising the client on products and services. Our dedicated workstations have an uptime rate of nearly 100%.
multi-channel access for the insured Whether in the bank branch, over the phone, by post or online, clients can 800 emPloYees DEDICATED TO POLICYHOLDER SERVICES
web portals for the benefit of policyholders, who can use them to view their contracts and statements, and, in the case of holders of traditional savings contracts with a unit-linked formula, pay top-up premiums or transfer savings from one fund to another. The number of policy administration transactions performed by policyholders via our partners’ web portals – Banque en Ligne for La Banque
Banks – declined temporarily in 2012 after rising sharply in 2011. Our value-added services contribute to raising client satisfaction levels, even if for the time being people would still rather visit a branch than use other methods of communication such as the Internet, telephone or tablet. The shift towards such services is inevitable, even though face-to-face contact with an advisor is still essential in life insurance.
leveraging trust and frontier markets Our unique expertise has been built over time by designing, together with our partners, and then developing dedicated
IT solutions that can be integrated in their respective information systems environments. The aim is to optimize mass processing capabilities in order to boost competitiveness, adapt sales and marketing strategies to our partners and take into account policyholder needs to improve satisfaction. In a mature market, quality of service rendered to the networks is more than ever a strategic priority. Therefore, client information has to be distributed and shared more rapidly.
the rialto call centre network The CNP Assurances rialto call centre network manages client helplines.
Created in 2001, it comprises three proprietary call centres located in
AFNOr quality standards and corporate social responsibility criteria. The network is ISO 9001:2008-certified, which has facilitated the general deployment of standard applications and processes, a
shared set of measurable commitments and a guaranteed level of service quality.
The network mobilises about 100 people on average, and up to 130 people during the annual policyholder information campaign. A call forecasting and planning system is made available to call centre managers to enable the network coordinator to rapidly adjust resources to call traffic volumes.
end-to-end client satisfaction From the moment a contract is purchased to the end of its life cycle, improving quality of service for policyholders is a constant concern. The improvement process hinges on a certification programme spanning several years which covers all aspects of policy administration. At the end of 2012, CNP Assurances was awarded five certifications, notably in recognition of online client relationship management at its call centres and the riAlto cAll centre network HAS OBTAINED AFNOR AND ISO 9001:2008 QUALITY CERTIFICATIONS AND CORPORATE SOCIAL RESPONSIBILITY CERTIFICATION
client relAtionshiPs, OuR PRIORIty policy information mailing campaigns. also a central component of our quality strategy, satisfaction surveys are organised each year to evaluate a given partner ’s performance in specific areas. For example, a 2012 survey of CNP Trésor clients revealed that 97% of respondents were satisfied with the underwriting procedure and 91% with the surrender procedure. A strategic method of communicating with our clients, annual policy statements pose a major challenge each year, in terms of both volume
(with 17.8 million sent in 2012) and content, which evolves in step with regulatory change (such as the increase in social welfare levies to 15.5% on 1 July 2012). While quality certification programmes help to enhance process security, the annual policy information campaign is subject to intense oversight and a detailed planning to limit operational risks and costs. Our major project in this area is to shift policyholder statements to paperless format. Concerning complaints processing, in 2012, we received slightly more than 6,000 complaints out of a total of over five million policy transactions. In response to the related recommendation of France’s insurance supervisor (ACP), applicable as from 1 September 2012, a multidisciplinary working group was mobilised to improve the existing procedure, notably by describing it in easy-to-grasp terms on the website, www.cnp.fr.
Policyholder service indicators are now captured in a detailed quality report that gives an overall view of CNP Assurances’s performance.
respective commitments and are constantly monitored to guarantee the quality of service promised to the networks and to policyholders. For example, under service level agreements signed with
CNP UniCredit Vita in Italy, policy-related transactions (such as claims settlements and total or partial surrenders) have to be processed within a certain time frame.
Our sales teams provide daily support to our partners’ insurance advisors. They prepare selling points and hold workshops to ensure the partner networks have all the information they need to explain the key aspects of the life insurance offer. In particular, they provide visibility about future trends in pension provision and the financing of long-term care. Information exchange leads to a shared overall vision of client needs and broadly applicable solutions. In our support capacity, we may go so far as to analyse client portfolios and identify needs that are not covered in order to optimise the advisors’ selling performance while also retaining clients.
a ss u ra n ce s 2012 AnnuAl rePort cnP AssurAnces 74 CNP AssURANCEs 2012 ANNUAL REPORT
most of our publications are available on request in both french and english and can be downloaded from www.cnp.fr or www.cnp-inances.fr * our shareholders’ guide and guide to general meetings are available in french only.
CORPORAte SOCIAL ReSPONSABILIty REPORT 2012 www.cnp.fr visit the CnP assurances website to learn more about our subsidiaries, businesses, advertising ilms and more.
our corporate social responsibility (Csr) policy enhances the sustainable development process by making the organisation accountable to stakeholders for its performance. We map our Csr commitment using indicators that gauge our progress on a set of core challenges. these allow us to set measurable objectives around which our teams can be mobilised. this form of transparent communication with stakeholders is a strategic priority at CnP assurances, which has been publishing Csr indicators since 2006. expanding our role as a corporate citizen, since 2011 we have published a Corporate Social Responsibility Report to meet growing demand among analysts for this type of data. the report presents the latest progress achieved in the interest of our different stakeholders and includes new data concerning our subsidiaries.
(p. 9), franck Juery for CnP assurances (p. 2, 5, 7, 19, 23, 24, 27, 32, 37, 41, 45, 46, 49, 50, 54, 56, 59, 64, 67, 71, 72) – Layout: e-Graphics – Printer: vincent this report is printed on PefC-certiied paper, harvested from sustainably-managed forests. ref. CnP/2013/ra2012-va/f3
www.cnp-inances.fr A website focusing on inancial information comprising a section for individual shareholders and another for institutional investors.
www.toutsavoirsurlassurancevie.fr This website explains the basics of life insurance using instructional videos.
incorporated in France with fully paid up share capital of €643,500,175