18 - Life insurance, a new environment 22 - Premium savings products, a question of agility 26 - Focus on protection in Europe 30 - Creating well-being, one of CNP Assurances’s skills 34 - Insurance for all in Brazil 39 THE KEYS TO OUR PERFORMANCE
The world is changing rapidly and irreversibly, both in Europe and in Latin America. We are adapting, staying alert to emerging needs and anticipating future risks, forging new partnerships, developing new solutions, transitioning to digital in order to offer simpler access to insurance to as many people as possible, mobilising our teams behind our core mission of offering all policyholders the peace of mind that comes from the knowledge that their future is protected, excluding no-one and with due regard for the human aspect.
We have a duty to protect the savings of the millions of customers, particularly in France, who put their trust in us.
Our good performances in 2014 attest to the robustness of our business model, the quality of our strategy and our teams’ engagement in our Group’s transformation. Frédéric Lavenir
personal risk insurance – but also other business lines such as health insurance, term creditor insurance and even, in Brazil, auto and homeowners’ insurance. Demographic trends in Europe and emerging middle classes in South America mean that these business lines offer significant long-term growth potential. However, they are also changing considerably, with innovations becoming both possible and necessary, allowing us to obtain higher margins than on standard savings products.
The extension of supplementary health insurance plans to SMEs, micro-enterprises and self-employed professionals will revolutionise the social protection market in France. What role does CNP Assurances intend to play? Frédéric Lavenir - It’s a real challenge but we have the strengths and expertise to meet it, including our multi-partner model, our multi-channel platforms, and our ability to design simple health insurance plans incorporating services and optional forms of cover. Local distribution is essential to gain the confidence of small business owners, which is why we are offering our partners the technical and operational support of our in-house network of insurance advisors. However, we are also using digital channels to support mass distribution. We are ambitious, but we have the resources to meet our goals, thanks in particular to our in-house network, Amétis, and our new partnership with Alptis.
The partnership with Santander has strengthened your position in Europe. How does it fit in with your strategic goals? Frédéric Lavenir - It’s aligned with no less than three of our strategic goals. The first is to leverage our expertise in developing and managing products distributed through multiple bancassurance partners; the second is to grow the protection insurance business, which is this new partnership’s sole focus; and the third concerns our European ambitions: we now cover ten European countries, including Germany for the first time, where we have a strong presence. It’s a fantastic opportunity for our Group. Jean-Paul Faugère - It’s obviously a success for CNP Assurances. The fact that Santander chose us as their partner in Europe in the face of stiff competition attests to the quality of our offer. The teams involved in the bid process were particularly dynamic and adept. I and my fellow directors welcomed this investment and look forward to seeing the results. With the ending of our partnership with Barclays in Spain, which was primarily focused on the savings business, this new partnership with Santander illustrates our ability to pursue our European development while also refocusing on the protection insurance business lines.
Brazil is experiencing slower growth, but what about CNP Assurances? Frédéric Lavenir - 2014 was an atypical year for Brazil, which hosted the Football World Cup and also held presidential elections. Our local subsidiary, Caixa Seguradora, nevertheless continued to grow, delivering an outstanding 21.7%* increase in revenue from the protection insurance business, which now accounts for four-fifths of our subsidiary’s total revenue. Thanks to these results and the region’s growth potential, we remain very confident about our short and long-term outlook in South America.
2015 will be a year of innovation, with the introduction of many new services and the affirmation of our digital ambitions.
What’s the outlook for 2015? Jean-Paul Faugère - The objective of strengthening our business model with our major partners in France will be met; the process of diversifying the product offer in France and Europe will be launched with the aim of generating higher margins in the years to come; and the Brazilian market will remain dynamic and promising. The Board of Directors will oversee adoption of the new standards introduced in the Solvency II Directive that is applicable as from 1 January 2016. It’s a big job, but one that will help quantify our various risk categories according to a transparent process. Frédéric Lavenir - 2015 will be a year of innovation.
In February, we launched our premium savings contract CNP One and our first Eurocroissance contract. We are also planning to introduce many new services. 2015 will also be the year when we affirm our digital ambitions. The decision has already been made to launch an all-digital company in Brazil in 2016. Our recently appointed Chief Digital Officer will work alongside me to lead our Group’s digital transformation which is already firmly underway. * Like-for-like
employees 28 million insureds under personal risk and protection policies 13 million savings/pension policyholders €307.4bn in average technical reserves* * excluding deferred participation €1,080m in net profit
Caixa Seguradora offers affordable insurance products to the 110 million Brazilians making up the country’s middle class, and we are looking for new growth opportunities in the high potential South American market.
14 years in Brazil and 20 years in Argentina 5th largest insurer in Brazil in the personal risk/protection market
In 2014, we moved up a gear in the Group’s development in Europe and Latin America, in close alignment with the expectations of our customers and partners.
WITH OUR PARTNERS CARING FOR POLICYHOLDERS CNP Assurances’s individual insurance products are distributed by two major bancassurance networks with a deep presence throughout France – La Banque Postale and Caisses d’Epargne (BPCE) – that are both partners and shareholders.
AN OPEN MODEL FOR EUROPE We are using our partnership culture to develop growth drivers in France and the rest of Europe in the social protection and long-term savings markets.
Priorities • Build the term creditor insurance and individual personal risk businesses in Europe by consolidating our positions in France and Southern Europe and penetrating new markets in Northern Europe. • Deploy full on-line solutions, notably in term creditor insurance. • Win over new partners with the new savings offer for the wealth management market.
Priorities • Develop a supplementary health and death/disability insurance offer for micro-enterprises and SMEs. • Design new generation services for improved everyday well-being, accessible via the Internet. • Help to improve occupational health, to ensure the continuing employability of older employees. • Help retirees to stay healthy so that they can live independently for as long as possible.
No.1 en prévoyance et santé in employee benefit plans for local authorities
LATIN AMERICA A FUTURE GROWTH DRIVER We have been present in Brazil for 14 years through Caixa Seguradora. Our local partner is Caixa Econômica Federal, Brazil’s second largest state- owned bank. During this period, millions of Brazilians have been lifted out of poverty. Caixa Seguradora is helping them fulfil their aspirations.
Priorities • Partner and support Caixa Econômica Federal in fulfilling its socio-economic role in Brazil. • Simplify processes, products and communication methods to help Brazil’s middle class and lower income population to purchase insurance. • Digitalise product distribution in Brazil. • Seize opportunities in Latin America.
110 million Brazilians classified as middle class and potential buyers of insurance 60,000 points of sale in Brazil, including 12,500 lottery ticket sales booths
In France, the 1.1% growth in net insurance revenue was the net result of contrasting trends, with a 2.2% fall in the savings and pensions segment, due in particular to the fall in interest rates, and an 8.8% rise in the personal risk/protection segment. In the “Europe excluding France” region, net insurance revenue rose by 11.5%, helped by our swift response to the low interest rate environment.
In Latin America, momentum remained strong, with net insurance revenue up 16.7% like-for-like (7.1% including the currency effect), led by the personal risk/protection segment.
Net insurance revenue from own-funds portfolios was stable at €775 million.
403% capital coverage ratio (118% excluding unrealised gains), attesting to the Group’s strong capital base.
* With a scrip payment option ** To be recommended at the Annual General Meeting of 6 May 2015
IN BRAZIL, the acquisition of Tempo Dental, a dental insurance specialist, strengthened Caixa Seguradora’s health insurance platform.
CNP PATRIMOINE set out to win over new partners with CNP One, a traditional life insurance contract with a unit-linked formula incorporating the best market standards for the wealth management market.
The expertise of our in-house network of 250 travelling insurance advisors was extended to include health insurance plans and the network was renamed AMÉTIS.
A SURGE IN NEW MONEY Net new money (deposits less withdrawals) invested in the French life insurance market in 2014 totalled €21 billion (source: Fédération Française des Sociétés d’Assurances - FFSA). Although still well below the €50 billion recorded in 2009 and 2010, this was nonetheless nearly double the 2013 figure. Life market technical reserves grew 4% over the year, to €1,515 billion, representing close to 75% of total technical reserves. CNP Assurances’s life business also recorded positive net new money in 2014, totalling €3.1 billion (1). In 2014, CNP Assurances’s average technical reserves for the life, savings and pensions businesses totalled €295 billion (2).
average yield paid to holders of traditional life insurance policies in 2014 (source: FFSA).
interest earned by insurers on 10-year OATs purchased at the end of February 2015.
HELPING EUROCROISSANCE GET OFF TO A GOOD START As soon as the final legal texts were published last September, we put our experts to work and tested this new life insurance concept among customers to assess their appetite for risk and come up with the arguments that would convince them to switch. Sixty savers representing all profiles (high net worth and retail, active and retired, risk-averse and risk-tolerant)
took part in the survey. They viewed Eurocroissance as an additional option for growing their capital, appreciating its positioning midway between traditional life insurance and unit-linked contracts, the ability to improve eroding yields and the options that allow managers to take advantage of market opportunities. We intend to leverage all of these strengths to build confidence in this innovative product.
A LONG-TERM APPROACH The multi-layered asset portfolios built up over the years allow us to smooth the yields paid to policyholders. However, with the low interest rate environment looking set to last, we have held firm to our prudent management approach and long-term vision by increasing our reserves, particularly the policyholders’ surplus reserves allocated to our two main distribution partners in France, the Caisses d’Epargne and La Banque Postale. At end-2014, aggregate policyholders ’ surplus reserves represented 2.42% of our total technical reserves, versus 1.92% at the previous year-end.
1. Management reporting data comparable to the industry data published by the FFSA 2. Excluding the deferred participation reserve 3. French government bonds (Obligations Assimilables du Trésor français)
LOW INTEREST RATES HAVE CHANGED THE EQUATION For many years, life insurance, which allows savers to make withdrawals at any time, combined the flexibility of Livret A accounts with considerably higher returns and an attractive tax treatment. This vision of life insurance familiar to all French people is changing beyond recognition. As France’s leading personal insurer, we have a duty to explain to as many savers as possible that with today’s very low interest rates, the situation is no longer the same, that risk is the main driver of investment performance. This
CNP Assurances intends to continue providing guidance to its partners and helping them plan ahead.
EUROCROISSANCE IS ON ITS WAY On 9 February 2015, the Caisses d’Epargne network launched the first two Eurocroissance funds designed by CNP Assurances, ushering in a new era in life insurance. They offer an attractive potential yield combined with a capital guarantee at the end of a set period. For example, Eurocroissance 100 offers a 100% capital guarantee at the end of a 12-year period, while Croissance 70 offers a partial capital guarantee (70%) at the end of a shorter period (8 years). Offered initially to the Caisses d’Epargne network’s wealth management customers who want to diversify their investments, this type of fund will subsequently be offered with other traditional savings contracts with a unit-linked formula managed by CNP Assurances and distributed by the Caisses d’Epargne.
The swift reconfiguration of CNP Patrimoine and its spectacular growth in 2014 illustrate our ability to transform our business by building positions in high margin, high potential segments.
Marine de Bouchony, CNP Patrimoine Product Manager “The low interest rate environment encourages customers to invest their savings in products that are managed actively and responsively. Our new premium savings offers – Cachemire Patrimoine distributed by La Banque Postale and CNP One for open model distribution – meet these demands. This is evidenced by the steep rise in the proportion of new money invested in unit-linked funds, cementing the products’ attractiveness for our partners.”
CNP ONE, DESTINED FOR SUCCESS Yves Bidel, Chairman of QIS - Quality Insurance Services
“After a design and configuration phase lasting nine months, during which the teams successfully pooled the best of their expertise, we are convinced that CNP One is destined for success in the premium savings market.”
Over €1.2 bn in new money recorded by CNP Patrimoine over eight months of operation in 2014, compared with a fullyear target of €2 billion within two years.
AN INNOVATIVE PARTNERSHIP WITH NORTIA This is the first large-scale partnership signed by CNP Assurances in the premium savings segment. Nortia has over 20 years’ experience of developing financial solutions and distributing premium savings and pension contracts through a network of 450 independent financial advisors. Nortia is recognized not only for its latest generation financial investments, but also for its technological innovations, such as the electronic signature solution that makes life simpler for its partners and their high net worth customers. Nortia’s agility backed by the trusted CNP Assurances brand offers promising joint development opportunities in the very attractive wealth management market.
DIGITAL INNOVATION WITH GRANIT High net worth customers have high expectations. CNP Patrimoine enables its partners to meet these innovation
With a new organisation supported by a responsive, expert platform, a new premium savings offer and the first distribution partnerships, the campaign to win over wealth management customers is underway.
CNP PATRIMOINE’S LATEST OFFER, CNP ONE While our foremost strategic goal is to provide more effective support to our two major distribution partners, La Banque Postale and the Caisses d’Epargne networks, this is closely followed by the goal of extending our reach by deploying the open distribution model more widely. To help win over new partners in the buoyant premium savings segment, CNP Patrimoine has developed a dedicated offer – CNP One. This premium traditional savings contract with a unit-linked formula incorporates the best market standards. For a minimum investment of €250,000, the product offers a wide range of unit-linked funds. In addition, all management options – customer-led, discretionary or manager-guided – are available, and interfaces can be set up with various asset managers, banks and brokers. Contract administration is outsourced to QIS.
Laurent Jumelle, Director of CNP Patrimoine, part of the Open Model business unit
Isn’t CNP Assurances coming too late to this segment? On the contrary, CNP Assurances’s recent arrival in this segment allows us to capitalise on the experience of the various players and to adopt the best solutions in the market, in terms of both product offers and management solutions.
What will it take to outperform more established players? Obviously, we need a strong brand and high quality products, but more than ever the key to success lies in the quality of service we offer our partners and customers. Our partnership with QIS is a key differentiating factor in this regard.
What’s the most innovative aspect of the CNP Patrimoine adventure? It’s our ability to offer our partners the best of two complementary worlds – first, the world of CNP Assurances, a major institution with a strong capital base, considerable expertise and a solid ethical track record and, second, that of QIS, an SME with 50 employees, giving it a human dimension, that is responsive, innovative and close to its customers.
More than ever the key to success lies in the quality of service we offer our partners and customers.
The exclusive, long-term partnership with Banco Santander, Europe’s leading retail bank, is an important milestone in the Group’s European strategy.
In December 2014, CNP Assurances finalised an agreement with Banco Santander to build a long-term partnership based on a business model with which CNP Assurances is very familiar. The idea is to speed up growth of the insurance business through a joint venture controlled by CNP Assurances, supported by an exclusive, long-term distribution agreement. With a particular focus on personal risk and term creditor insurance, the new partnership will help CNP Assurances achieve its goal of conquering the protection market in Europe.
A BROADER RANGE OF PROTECTION SOLUTIONS For each of its partners, CNP Assurances designs protection products tailored to each network, responding to today’s risks of everyday life and to customers’ core concerns in each country. In mature markets, for example, we offer unemployment insurance to help insureds maintain their standard of living if they lose their job and critical illness cover providing financial support for example to cancer sufferers. We are exploring new business opportunities, such as affinity insurance for social network users and insurance packages covering an array of everyday-life risks. It’s this open approach
Aurélien Signorini, Finance Director - CNP Santander Insurance “It’s very motivating to join CNP Santander Insurance just when it’s achieving a strategic milestone in its development. This young and dynamic organisation will allow us to leverage the powerful Santander Consumer Finance network, while at the same time giving the network the benefit of our expertise in the areas of protection and personal risk insurance to broaden the range of products offered to customers.”
The partnership with Banco Santander illustrates two aspects of our strategy. The first is our business model’s multi-partner dimension, which is driving faster deployment of our insurance solutions and the development of our business in Europe. The second is our general refocusing on personal risk insurance, to establish a better balance between the savings and protection businesses. The complex negotiations were completed within a very short timeframe, illustrating the agility that comes from our 160 years’ experience and our forward-looking mindset.
In 2015, CNP Assurances is inaugurating its partnership with Banco Santander with a shared goal of growth and innovation.
What struck you the most about Santander? We were impressed by the professional qualities and enthusiasm of the Santander Consumer Finance teams that we met during the process. This partnership is an outstanding opportunity for CNP Assurances to join forces with a leading consumer finance provider.
THREE QUESTIONS FOR COUNTDOWN TO A SUCCESSFUL DEAL EARLY 2013 Strategic plan European expansion becomes a strategic goal, with plans for faster growth in Southern Europe and penetration of new markets, starting with Germany.
9 JULY Signature of the MOU concerning the partnership and acquisition of the subsidiaries.
17 DECEMBER First meeting of the Board of Directors of the joint venture in Dublin, to approve the 2015-2019 business plan prepared jointly by the two partners since July.
CONQUERING MARKETS WITH OUR PARTNERS Our personal risk and protection offers have always been deployed through our partnerships not only with the banking networks of La Banque Postale and the Caisses d’Epargne – our two main partners – but also with France’s major employee benefits institutions, around a hundred mutual insurers and various insurance brokers. CNP Assurances is the leading provider of employee benefit plans (health, death and disability insurance) for French local authorities and it also meets the needs of some 4,600 companies.
“With Capvita, we have everything we need to win over the owners of small businesses and micro-enterprises, and to deliver innovations to potential partners such as banks, brokers, mutual insurers and employee benefits institutions. Leveraging our skills in multi-channel customer relationship management, we will work with them to invent a new generation service.”
“Owners of small businesses and micro-enterprises, craftspeople, tradespeople and self-employed professionals all have in common that they are isolated and vulnerable. They all need personalised support and they are also keen to offer protection to their employees who are central to their business’s long-term survival. With the Amétis network, each business owner deals with a single advisor who is able to provide wide-ranging advice and to cover all of their needs not only in terms of wealth management solutions but also of social protection for them as well as for their employees. Thanks to a network spanning the entire country, customers are visited by their local Amétis advisor wherever they are located, thereby cementing the relationship of trust.”
The future of insurance lies in services. We believe strongly in this, which is why we have totally revisited our pioneering service offer. The new Service Strategy and Innovation department set up within the Social Protection and Services business unit is tasked with developing around ten new services each year. This will involve setting up an equivalent number of partnerships with social protection experts and testing the services prior to their full deployment. The essential first step, however, is to define the golden rules of innovation. The challenge is to go beyond providing assistance when an insured risk occurs to offering services at any time in our insureds’ everyday lives. The added-value is obvious; for example, insureds will be able to obtain an appointment for a scan at certain Paris clinics within three days versus services providing day-to-day support, the changing face of insurance
Magaly Siméon, Head of the Social Protection and Services business unit “Design, distribute, manage, support: CNP Assurances is present right across the healthcare value chain, offering high quality solutions to its distribution partners and attractive services to its customers.”
You are responsible for combining services and innovation. Why? Enhancing our service offer is key to making a difference with our partners and customers in the area of social protection, as it will enable us to offer immediate, tangible added-value to policyholders.
The world’s seventh largest economy, with a population of 204 million and less than 5% unemployment, Brazil is a promising market that has retained its momentum despite experiencing slower growth.
110 MILLION POTENTIAL POLICYHOLDERS Year by year, the economic model lifts more and more Brazilians into the middle class, enabling them to increase their spending on consumer goods and services in general and insurance in particular. At the end of 2014, an estimated 110 million Brazilians were classified as middle class, representing 54% of the population. All of these people are potential buyers of affordable insurance products. For the lowest earners, micro-insurance offers protection against specific risks in exchange for a very low regular premium, for example less than €1 per month. By attenuating the effects of the crises of everyday life that can plunge families into poverty, such as the death of the breadwinner, a funeral, critical illness or theft, micro-insurance helps to consolidate upward mobility and contributes to the country’s sustainable economic development.
A PARTNER AT THE CENTRE OF SOCIAL POLICY We began offering insurance products to Brazil’s middle class in 2001 through our subsidiary Caixa Seguros – now named Caixa Seguradora – that we own jointly with Caixa Econômica Federal. Brazil’s second largest state-owned bank and one of the country’s most important financial institutions, “la Caixa” is the preferred bank of first-time savers. It distributes the bolsa familia family allowances, manages the unemployment insurance system and finances three-quarters of 34 – CNP Assurances – 2014 Annual Report
loans to first-time home-buyers. With 4,000 branches and 20,000 “Caixa aqui” (Caixa here) correspondents, it has a local presence throughout the country. La Caixa also manages over 12,000 national lottery sales booths located in many cases in the centre of low income communities. Its brand equity and popularity prepared the terrain for the launch of Caixa Seguradora’s insurance offer and have contributed to its success.
AFFORDABLE, ACCESSIBLE OFFERS With Caixa Seguradora, you don’t need a bank account to purchase protection insurance and savings products. Caixa Seguradora was the first Brazilian insurer to offer simple and affordable products covering personal and property risks, as well as savings products that combine capital-building with random draws.
Since their launch in 2000, five million micro-savings contracts have been sold. In this segment, a volume- driven strategy is out of the question. The inclusion of death/disability cover in savings products makes them more useful and attractive to policyholders, while helping to protect Caixa Seguradora’s margins. In Brazil, as in Europe, the Group is focusing on personal risk insurance. Several million Brazilians have already purchased these products which are being made increasingly attractive. Conjugado combines personal risk insurance, a micro-pension plan and a random draw feature that gives policyholders the chance to receive a small windfall. Amparo funeral insurance, which can be purchased in a matter of seconds, provides the assurance of a decent burial in exchange for a monthly premium of just a few reals.
On the ReclameAQUI platform, consumers are the only judges. This is what gives credibility to its brand ranking and explains the popularity of the site, which attracts 10 million visitors per month. Every year, two million web-users are asked to name the best companies for customer relations in various categories, including over 20,000 for the insurance industry. In 2014, for the second year running, Caixa Seguradora was named Best Insurer, receiving nearly half of the votes. A mark of recognition for the Brazilian subsidiary, which processed three million customer inquiries last year by telephone, e-mail or on social networking sites.
Bilhete, an outstanding success There was a buzz around the sale of the 20-millionth Bilhete contract two years ago. With its tiny premium – BRL 2.50* per month on average (less than €1) – and broad coverage starting at BRL 2,000 (around €800), the product can’t fail to please. Bilhete has propelled Caixa Seguradora to the forefront of the affordable insurance market in the communities, where most of the contracts are sold. * As of 31 December 2014: €1 = BRL 3.12 36 – CNP Assurances – 2014 Annual Report
Caixa Seguradora’s indicators are still showing double-digit growth, but Brazil is changing and so are the aspirations of the country’s middle class. Caixa Seguradora is looking to the future.
Caixa Seguradora’s Brasília headquarters were showing their age and had become too small to house the expanding company. We therefore decided to build new offices, across the road from the existing headquarters.
Caixa Seguros means “La Caixa’s insurance”, referring to the product range. It has been renamed Caixa Seguradora, meaning “La Caixa’s insurer”, referring to a person, an expert in his or her own right. The change leverages the Caixa brand, one of the country’s strongest, and affirms CNP Assurances’s unique position within the alliance, as well as the human dimension it shares with La Caixa.
Gabriela Ortiz de Rozas Marketing, Strategy and Communication Director, Caixa Seguradora
You keep a close watch over trends in the market, how is it changing? Brazil is changing right in front of our eyes. This can be seen from last year’s protests, which focused not on increases in benefits but on improvements to public transport and better access to education and information. Nevertheless, the insurance industry is still lagging behind consumer needs, with one of its main challenges being to simplify processes, products and communication methods. Caixa Seguradora is firmly engaged in this process.
What role can Caixa Seguradora play? La Caixa is playing a growing socio-economic role in Brazil. We are proud of our commitment to partnering its ambitions and supporting its success.
“We have been working with La Caixa for 14 years and have just finished preparing our 2015-2019 business plan. The plan is more ambitious, diversified and detailed than ever. These new objectives are aligned with the strategies of CNP Assurances and Caixa Econômica Federal. They should help to strengthen our Group’s position in Brazil while also increasing our enterprise value. They will also give full meaning to the cooperation between two major institutions, one French and the other Brazilian. And naturally, they should be useful to the country, which is indeed the case.”
In the past 20 years, Latin American economies have changed considerably, the local insurance markets have matured and the Group now has a good understanding of their challenges and players.
CONQUERING LATIN AMERICA The Group has been present in Latin America since 1995, when it set up its first subsidiary in the region, CNP Assurances Compaña de Seguros, based in Buenos Aires, Argentina. In the past 20 years, the local insurance markets have matured and improved living standards have helped to create significant potential for growth, by making personal risk, auto and comprehensive home-owner’s insurance more easily affordable.
Today, the Argentine subsidiary is enjoying strong growth* and consolidating its position as one of the country’s leading personal risk companies. Caixa Seguradora is also rapidly growing its personal risk business, as Brazil’s fifth largest insurer in this segment. The Group is on the look-out for new growth opportunities in Latin America, initially in Colombia, Chile and Peru. Colombia is an open market, with a history of successful development experiences particularly in bancassurance. Our market exploration began with the opening of a lean structure whose first task in 2015 is to come up with a development plan based on distribution agreements or new partnerships.
In 2014, CNP Assurances stepped up its transformation and launched various strategic projects with the unflagging support of its Board of Directors.
EXECUTIVE COMMITTEE The Chief Executive Officer implements the strategy decided by the Board and has the broadest powers to act in the name of the CNP Assurances Group. He is assisted by an Executive Committee made up of 12 members representing the Group’s strategic functions: partnerships, finance, risk management, information systems, general administration and human resources. In its role as coordinator, the Executive Committee deals with all issues that extend across departmental boundaries.
At least one Executive Committee member sits on the boards of the main subsidiaries in France, and CNP Assurances appoints at least half of the members of the international subsidiaries’ boards, guaranteeing consistent strategic management across the Group.
COMPOSITION OF THE BOARD OF DIRECTORS AND ITS COMMITTEES as of 31 December 2014
• Anne-Sophie Grave • Olivier Mareuse • Odile Renaud-Basso • Franck Silvent • Sopassure, represented by Marc-André Feffer
• Jean-Yves Forel • François Pérol • Philippe Wahl • Rémy Weber • French State, represented by Antoine Saintoyant • Philippe Baumlin • Marcia Campbell * • Stéphane Pallez * • Rose-Marie
WORKS COUNCIL REPRESENTATIVES • Valérie Baron-Loison • Patrick Berthelot • Pascal Oliveau • Nadia Remadna
• Jean-Paul Faugère * • François Pérol • Odile Renaud-Basso • Philippe Wahl
Chairman • Marc-André Feffer • Jean-Yves Forel • Olivier Mareuse • Stéphane Pallez * • Franck Silvent
As an insurer, investor and responsible employer, CNP Assurances creates value for its customers, its employees, its shareholders and its environment.
OEKOM PRIME C+ (March 2013) www.oekom-research.com 7th/37 insurance companies in Europe www.vigeo.com
A KEY PARTNER OF LARGE COMPANIES The bulk of our asset portfolio still consists of fixed income assets – debt securities and loans – but is now increasingly focused on corporates and financial institutions, with investments of around €7.5 billion and €5 billion respectively in 2014. At the same time, rising stock markets led us to invest in equities throughout the year, for a total of €2 billion.
€560m invested in the green economy (renewable energies, clean tech, green bonds, etc.)
In 2014, all the business units were actively involved in deepening and renewing their partnerships. In France and Brazil, this meant strengthening relations with our traditional partners, while in Europe and Latin America, the challenge was to find new partners. The other common theme was rebalancing the business model by increasing the focus on protection insurance and stepping up the pace of growth both in Europe and in Latin America.
Partnership The partnership agreement with the BPCE Group has been renewed for an initial period of seven years as from 1 January 2016. The agreement covers an exclusive partnership in term creditor insurance across all the BPCE networks (Caisse d'Epargne, Banques Populaires and Crédit Foncier), specific partnerships in group health and death/disability insurance, and mechanisms to align the partners’ interests concerning the management of savings/pensions contracts in force at 31 December 2015.
14.8% of savings new money invested in unit-linked funds in 2014, up 3.4%. Reflecting the Caisses d’Epargne networks’ strategic priority, growth was led by a 50% increase in new money from premium savings products and by the shift in focus towards unit-linked funds by savers looking for better performance.
Outlook for 2015 Ready for Eurocroissance February saw the launch of the Eurocroissance fund (capital guarantee at the end of 12 years) and Croissance fund (capital guarantee at the end of 8 years).
Over €3bn in new money invested in the space of eight months in the new Cachemire offer for the wealth management market, one of La Banque Postale’s core strategic targets, with investment in unit-linked funds almost double the 2013 amount and representing 12.8% of total new money for 2014.
Partnership The 20-year exclusive partnership with Santander Consumer Finance gives CNP Assurances a new stature in the European market and outstanding growth opportunities in the protection insurance market. In the premium savings segment, CNP Patrimoine’s new dynamic has won over 16 new partners, including private banking institutions, family offices and independent financial advisors.
Around €4bn in term creditor insurance business written in Europe in 2014. The business unit’s rapid progress in implementing large scale development projects has given CNP Assurances renewed appeal among existing and potential customers and partners.
Outlook for 2015 Ready for growth The premium CNP One contract was launched in all interested distribution networks in February, the partnership with Banco Santander is being deployed in Germany and other markets, and the search is on for new partners.
Outlook for 2015 Ready to serve the SME/micro-enterprise/self-employed worker market The supplementary health plan offer has been finalised, featuring service innovations, and a tried and tested multi-channel distribution model will be up and running by 1 January 2016.
DIGITAL AMBITIONS At a time when objects are interconnecting, social networks are taking over from the media and trade, processes and relations are going paperless, CNP Assurances has decided to speed up its digital transition. A Chief Digital Officer has been appointed, reporting directly to the Chief Executive Officer, with responsibility for leading and supporting the organisation’s digital transformation by capitalising on past experience, coordinating cross-functional projects and involving all employees in the new dynamic. The digital strategy will be included in the Group’s business plan as from the end of this year.
around 900 employees benefited from a career planning review. A total of 73 employees attended courses leading to a diploma, in order to fulfil their professional ambitions within the Group. The equivalent of over 5% of payroll was spent on training in 2014.
CNP Assurance promotes gender equality and works to help school-leavers and people with disabilities to enter the job market. Our assertive policies earned us the Seal of Diversity, based on our performance in relation to several indicators. In 2014, we rose from the 16th to the 2nd place overall - and 1st place in the insurance industry - for the proportion of women in senior management positions*. This leap forward reflects the increase in the number of women and advances in their role. Women make up 40% of the Executive Committee, while two Board committees are chaired by women. As of end-2014, 101 young people were employed under work-study contracts, preparing diplomas representing two to five years’ higher education. Employees with disabilities represent more than 5% of the workforce and an eighth 4-year agreement on this subject has been signed.
INCLUSIVE In term creditor insurance, we help as many people as possible to obtain insurance for their home loan. We insure all borrower profiles – standard, senior or high net worth – including people representing an aggravated health risk. In the last five years, the term creditor insurance rejection rate has consistently stood at less than 0.2%.
USEFUL Insurers can no longer simply collect premiums, examine claims and pay settlements. There has to be much more to their relationship with policyholders. We’ve been aware of this for a long time. We have pioneered a new generation of insurance products that combine a financial settlement with personalised help, integrated services that offer immediate added-value to policyholders, services that help them overcome life’s hardships and long-term care products that also provide help for carers. Our protection insurance solutions respond to customers’ major concerns. For example, our renter’s insurance solution covers part of the insured’s rent in the event of unemployment, an accident or illness, while our critical illness cover provides financial support to cancer sufferers and heart attack victims. New services that are currently being tested go even further. For example, fasttrack medical appointments, personalised health checks and services to help prevent a loss of autonomy will make policyholders’ everyday lives easier by contributing to their well-being and health at all stages of their lives.
A civic service to improve healthcare This is the aim of the partnership between the CNP Assurances Foundation and Agence du Service Civique. Fifty young civic service volunteers aged between 16 and 25 will help raise awareness among vulnerable young people of health issues such as addictive behaviours and the importance of a balanced diet. The CNP Assurances Foundation is supporting this initiative through a €300,000 grant. “This first social innovation partnership with the CNP Assurances Foundation is a strong signal for the future of the civic service,” said François Chérèque, President of Agence du Service Civique. “It ensures that any young person who wishes to undertake civic service can do just that. We aim to increase the number of our volunteers to 150,000 as soon as possible."
risks. As a responsible corporate citizen, we also seek to reduce our environmental footprint and to support the ecological and energy transition. Our forestry assets (CNP Assurances is the largest private owner of woodland in France with 54,000 hectares of forest) are managed using sustainable techniques, while energy audits of our real estate portfolio carried out in 2014 identified the compliance work to be performed to improve the properties’ energy effi ciency in line with the requirements of the Grenelle 1 and 2 Acts.
LEARN MORE ABOUT CNP ASSURANCES To get more information about the Group, its businesses and commitments, obtain answers to your questions about insurance and read the Group’s latest news, go to www.cnp.fr. Whether you’re an individual, a professional, a candidate, a journalist, a shareholder or an analyst, the new site has a space dedicated to your specific information needs.
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May 2015 – CNP Assurances – Communications and Strategic Marketing department – Design and production – Photos: Cover Stephanie Keith/Gallery Stock; DR - p3: ONOKY - Fabrice Lerouge/ Gettyimages - p4-5: Joel Micah Miller/Plainpicture - p6-9: Franck Juery for CNP Assurances - p10-11: Julie Guiches/Picturetank - p12-13: Julie Guiches/Picturetank - p17: Axel Bernstorff/Plainpicture - p18-21: portraits Franck Juery for CNP Assurances; Jean-Pierre Degas/Gettyimages; Paul Bradbury/Gettyimages; Sigrid Olsson/PhotoAlto/Gettyimages; Joel Micah Miller/Plainpicture - p22-25: portraits Franck Juery for CNP Assurances; Gary Burchell/Gettyimages; Philip and Karen Smith/Gettyimages; Martin Argyroglo/Divergence; hsimages/Westend61/Corbis - p26-29: portraits Franck Juery for CNP Assurances; Jon Hicks/Corbis; Karl Heinz Raach/LAIF-REA; Hero Images/Gettyimages - p30-33: portraits Franck Juery for CNP Assurances; Thomas Barwick/Gettyimages; BartCo/Gettyimages; Kike Calvo/Corbis - p34-35: Alain Le Bacquer/Picturetank; Eric Garault/Picturetank - p36-37: Franck Juery for CNP Assurances; DR - p38: portrait Franck Juery for CNP Assurances; Jon Hicks/Corbis - p39: Jordan Siemens/Gettyimages, p40-41: portraits Franck Juery for CNP Assurances - p44-45: Paul Bradbury/Gettyimages; Cyrus Cornut/Picturetank - p46-48: Carlos Sanchez Pereyra/Gettyimages; Henk Badenhorst/Gettyimages; 36471/Gettyimages; Dave and Les Jacobs/Kolostock/ Gettyimages; Thomas Meyer/OSTKREUZ Agentur/Picturetank - p49: photo and portrait Franck Juery for CNP Assurances - p50-51: Eric Fabrer/Divergence; Eric Fabrer/Divergence - p52-53: Alexa Brunet/Picturetank; Huntstock/Gettyimages – Layout: This report is printed on PEFC-certified paper, from sustainably-managed forests. Ref. CNP/2015/RA2014/KM
CNP Assurances | Registered office: 4, place Raoul Dautry, 75716 Paris Cedex 15 | Tel.: +33 (0)1 42 18 88 88 | www.cnp.fr | Caisse des Dépôts Group