…but: Dec. June Dec. June Dec. June Dec. June Dec. June June €122.6bn
Higher mathematical reserves: Average mathematical reserves up 5.3% in 2008 Mathematical reserves at 31 December up 2.3% year-on-year (vs. market mathematical reserves unchanged year-on-year)
Premium Income: Decline in Savings - Growth Across All Other Businesses
Pensions and “risk” businesses continued to grow, but Savings business contracted (in Europe)
Change in scope of consolidation: CNP Vida (Spain) acquired in April 2007
Premium Income by Country - French Gaap * Consolidated since 5 April 2007
La Banque Postale: strong upturn in business in Q4 08 New high-end product launched (Cachemire)
2008 growth rates (IFRS) excluding Fourgous transfers: La Banque Postale: +11.7% Savings Banks: -18.8% CNP Trésor: -2.3%
Unit-linked as a % of total Savings and Pensions revenue by network in 2008: Savings Banks: 16% CNP Trésor: 8.3% La Banque Postale: 6.5%
The recommended dividend is unchanged compared with 2007 at €2.85 per share
(1) Details of the adjustments are provided in the notes to slide 15.
Growth in mathematical reserves at 31 December: Mathematical reserves up 2.5%: Net new money: +3.1% Revaluation and unit-linked adjustments: + 0.2%
Liquidity position: Net new money: €7.3bn Cash: €6-7bn Asset portfolio generates over €9bn of revenue per year Bonds maturing in 2009: €15bn
+/- Net gains (losses) on equities and property (271) - -
Adjustments to 2007: impact not material 2008 EBIT before adjustments: €2,146m 2008 recurring profit before capital gains and losses and before adjustments: €1,266m
Mathematical reserves at 1 Jan. (excl. deferred participation) 235,518 100.0% 217,544 197,849 - Change in linked liabilities and credited interest adjustments attributed to policyholders (1,289)
For info (in €m) : 209,801.4221,241;3Average mathematical reserves France excl. def. part.
* See the notes to slide 15 for details of adjustments
Proprietary portfolios are allocated to business lines based on solvency capital requirements
Impact adjustments at 31 December 2008: • Before shadow accounting adjustments: €(892.5)m
• After shadow accounting adjustments and after tax: €(167)m €(158.4)m impact on profit €(8.6)m impact on equity
At 31 December 2008 (market value): ABS portfolio: €3.9bn including €1.2bn in CDOs
Equities: part of the unrealised losses had already been taken into account through provisions for permanent impairment in value
Recoverability of deferred participation asset: LAT • Comparison of book liabilities (Mathematical reserves + Policyholders’
Major impact of economic variances in 2008: Significant rise in cost of financial options and guarantees in last year’s highly volatile financial market environment Decline in unrealised capital gains Shift away from linked liabilities, towards mathematical reserves for non-unit-linked savings contracts.
APE is based on premiums attributable to equity holders, net of minority interests APE = 10% x (single premium NB) + Annualised regular premium NB
The change in product mix in 2008 mainly reflected the slowdown in unit-linked sales
Together, these two factors drove down the APE ratio from 12.9% to 11.7%
Changes in the financial markets reduced the APE ratio by 0.8 points, while higher volatility fuelled a hefty 68% rise in the cost of financial options and guarantees
The reduction in the tax rate from 38.25% to 32.4% added 1.3 points to the APE ratio
Caixa Seguros’ new business value continue to grow, lifted by an 8% increase in new business volume, favourable changes in the product mix and positive experience adjustments.
(29)(29)5% fall in loss ratio - longevity risk 15815810% fall in surrenders
VNB Italy nd(31)25% increase in interest rate volatility nd(25)25% increase in stock market volatility 3.7375% fall in loss ratio - mortality and disability risk 0.410Required capital 2.71410% fall in surrenders 3.05110% reduction in costs 0.0(3)5% fall in loss ratio - longevity risk 64.2261Central value
The Board recommends paying a 2008 dividend of €2.85 per share, unchanged from 2007
CNP Assurances will consolidate its position as France’s leading personal insurer, by maintaining its disciplined approach to financial management, and will focus on building its mathematical reserves and controlling costs
Due to the crisis, the Group is waiting for visibility to improve before updating the Business Plan figures
Interest rate cuts will help to sustain demand for life insurance • Customers are still looking for very secure savings vehicles
Savings: consolidate the breakthrough in the high-end segment… while preserving the traditional franchise
Loan insurance: positive outlook with the Bank’s launch of a consumer loan offer (October 09)
Cachemire: 3 formulas: Gestion Libre (choice of investments decided by the policyholder), Gestion Pilotée (choice of investments guided by the manager), Valorisation du Placement (managed with a fixed investment horizon) Two guarantees as standard: guaranteed death benefit and Premium cover for disability, serious illness, etc. Optional features: locked-in capital gains, phased transfers from non-unitlinked to unit-linked portfolios, etc.
Currently marketed by 800 premium insurance advisors; will be offered by 4,000 advisors in 2009
Outlook France: Savings Banks No Mass Exodus of Livret A Customers - Product Innovation in 2009
Product launches • Life insurance passbook (March) combines the advantages of life insurance and passbook savings accounts
• Strengthened personal risk offer, with new funeral insurance contract (Q3 2009)
New life insurance passbook to be launched 2 March 2009: Non-unit-linked contract taxed as life insurance with the advantages of a passbook savings account (in particular, no front-end loading)
Companies & Local Authorities • Outlook remains excellent, particularly thanks to the expected transfer to
CNP of responsibility for managing several pension institutions’ portfolios in 2009
• Several major new contracts signed in late 2008, coming into effect on 1 January 2009
Mutuals: agreements with interprofessional mutuals Based on individual and group insurance offerings Partnering the mutuals in bidding for corporate contracts
Enhanced line-up and product innovation: • Development of a personal risk offer with a long-term care option
UniGarantito: Single premium non-unit-linked whole life product with top-up premiums allowed, including a scheduled withdrawal option. The latest version does not provided for any surrender penalty Responds to the needs of Italian customers looking for both security and liquidity. Excellent buy-in by the UniCredit banks that distribute the product
Ongoing winning growth strategy in the Pensions, Personal Risk and Loan Insurance segments
• Caixa Economica Federal playing a major role in implementing measures to kick-start the economy, with priority given to private construction and supporting the home loan market
• Flight to safety: Caixa Seguros benefits from the status of its partner as a public bank
Spain/Portugal: implementation of our convergence strategy • Pooled operations, to generate cost and revenue synergies
Note: Acquisition of a 50.1% stake in Marfin Popular Bank’s insurance businesses in Greece and Cyprus
Since 1 January 2008, the CAC 40 has lost 50.5%, insurance stocks have lost 63.0% and CNP Assurances has lost 41.1%