CNP ASSURANCES, A LEADING PERSONAL RISK AND PROTECTION INSURER IN FRANCE
Q. no. 1 We’re familiar with your TV ads and we all like the music, but where can we find CNP Assurances products?
You can find them at large banks such as La Banque Postale, the Caisses d’Epargne and many financial institutions in France, and at the contact points and sales outlets of Banco Santander in Europe and of Caixa Econômica Federal in Brazil. Our made-to-measure solutions for professionals are distributed by a number of mutual and provident institutions and by our Amétis employees network. Companies and local authorities also offer our insurance policies to their employees or officials through collective agreements. Historically, multipartnership has been CNP Assurances’ business model. The Group designs solutions to protect people and entrusts their distribution to partners with point of sale networks, and who share its values. Finally, throughout the lifetime of the contract, CNP Assurances develops its relationship with its insured, on a daily basis. CNP Assurances has been an insurer, co-insurer and reinsurer for 160 years, and plays a central role in people’s day-to-day lives. It is also one of the leading personal risk insurers in France, the 4th largest in Europe and the 5th largest in Brazil.
Personal risk and protection, health, term creditor insurance, savings and pensions, the solutions of CNP Assurances are distributed by many partners including large banking networks, such as La Banque Postale and the Caisses d’Epargne, and for loan insurance, 315 financial institutions in France. The company’s wealth management services are provided by about twenty partners, from private banks to family offices and major wealth management companies. In Europe, Santander Finance distributes CNP Assurances’ consumer loan insurance and personal risk and protection solutions via 120,000 points of contact.
deployed this year to help business leaders with the distribution of additional health insurance for SME customers of the BPCE Group networks (Banques Populaires and Caisses d’Epargne).
Our multi-channel approach brings us closer to our insured no. 1Q.
In order to protect something that is priceless, such as the quality of life, CNP Assurances has opted for quality protection. Simple, exhaustive and fully modular, the additional health cover can be adapted to the realities of each business – workforce, age of the employees, specific occupational risks – and to the protection level that the employer wishes to offer its employees. A range of options and services make it possible to personalise the protection, according to the particular profile of each employee, with an equivalent or even higher level of cover to that available in larger companies.
One of the strengths of the CNP Assurances offer is that it is embodied by the 250 advisers of the Amétis network, who have vast experience of personalised advice, and are trained in the technical aspects of additional health cover. They take the time to understand the manager’s challenges and requirements, both for himself and his employees, and to customise a high-performance additional health cover in the context of a global view of the protection provided. Quality demands that CNP Assurances assists managers with the specific implementation of the chosen formula.
Choosing the best offer 25O AMÉTIS ADVISERS, TAILORING PROTECTION FOR SMES
Dominique Hilaire Director of individual and professional markets Business leaders are professionals in their business sector, but they are not experts in insurance! An Amétis adviser can provide them with clarity with regard to health, personal risk and protection, savings, pensions and dependence for them and their loved ones, and for all their employees. This global and personalised approach to personal protection, including an individual and collective view, gives us a central role in dealing with the challenges facing the manager of an SME: to protect their loved ones and those who make their business a success.
A fluid and transparent customer process 6O,OOO BUSINESSES OF MORE THAN 2O EMPLOYEES TO SUPPORT
Renaud Chaumier Director of human resources, member of the Executive Committee of LCL Villejuif, France
Q. no. 3 Given increasing life expectancy and the economic crisis, how can you secure the income of tomorrow’s retirees?
In the last century, life expectancy in France has increased by more than 35 years on average. Between 1950 and 2000 alone, the life expectancy of a retiree doubled, from 10 to 22 years. It has now become a second lifetime. This demographic change combined with the delayed start of employment threatens pay-as-you-go pension schemes. The establishment of an additional pension system has become unavoidable. But who will finance what? Both employees and business leaders prefer company systems to individual systems, to supplement their pensions. Large companies already use long-term savings to support their welfare policy. Our contacts with SMEs reveal a certain number of obstacles: the complexity of the systems, their regulatory instability, and the need for advice and assistance in order to put an adequate system in place. The company will still have to convince its employees to participate. In fact, while a group health contract offers an immediate benefit to the insured, it is more difficult to gain insight when it comes to pensions, especially for young people, who pay more attention to increasing their purchasing power now than of safeguarding their long-term income. It is for all those involved in welfare protection to assist with the construction of tomorrow’s pensions.
This is an intergenerational challenge x2 ACCORDING TO THE INSEE, THE NUMBER OF PEOPLE AGED 6O AND MORE WILL DOUBLE BETWEEN NOW AND 2O5O, WHILE THE EMPLOYED POPULATION WILL REMAIN THE SAME
Marie-Béatrice Levaux Chairwoman of the Federation of Individual Employers in France, and adviser to the Economic, Social and Environmental Council Paris, France 1604340_CNP_RA_GB_2015.indd 14 13/05/2016 14:57
While the continuous lengthening of life expectancy constitutes progress in itself, it does give rise to a dual health challenge: the challenge of occupational health to guarantee that older employees can remain in employment, and the challenge of health during the retirement years, including the issue of loss of autonomy. As a leader in personal protection, CNP Assurances has the means to respond to this individual and collective challenge, combining its twenty years’ experience in insurance services with its digital transformation. Its proactive approach promotes preventive behaviours and illustrates its new concept of insurance, which focuses on helping people live well and preserve their health.
of experience in insurance services and support insured under personal risk and protection policies million 2O years 1604340_CNP_RA_GB_2015.indd 15 13/05/2016 14:57
15O,OOO BENEFICIARIES HAVE ACCESS TO LYFE AND ITS WELL-BEING AND HEALTH SERVICES
Q. no. 5 Can a company be the largest insurer and excel in high-end savings?
Géraldine Motta Director of insurance brokerage, Banque Neuflize OBC Paris, France 1604340_CNP_RA_GB_2015.indd 18 13/05/2016 14:57
CNP Assurances is committed to insuring all futures, from the most moderate to the wealthiest, and it has decided to position itself in the high-end savings market. With its dedicated structure, CNP Patrimoine, and with a range of made-to-measure life insurance, CNP One, the Group has convinced the largest distributors on the market of its ability to respond to the security and performance requirements of such a clientele. How? By capitalising on its historic strengths, and reinventing itself. Agility, digitisation and innovation, an experience that transforms CNP Assurances and renews its image.
Nearly 21.4%€2 billion growth in sales in unit-linked savings in 2O15 1604340_CNP_RA_GB_2015.indd 19 13/05/2016 14:57
BILLION IN ASSETS COLLECTED IN TWO YEARS WITH CACHEMIRE PATRIMOINE DISTRIBUTED BY LA BANQUE POSTALE
2O NEW PARTNERSHIPS SIGNED IN LESS THAN TWO YEARS WITH PRIVATE BANKS, FAMILY OFFICES AND IFA(1) PLATFORMS
CNP Assurances is committed to the diversification of its businesses, partnerships and distribution methods in
Europe, where its shareholder base and its financial solidity allow it to invest on a long-term basis. On these markets, CNP Assurances provides the expertise and the services of an insurer leading the way in protecting people. The Group does not tack on pre-existing schemes. Its model, based on partnership, enables it to adapt to the reality of each country, to identify needs and to co-construct made-to-measure solutions. Thus, CNP Assurances supports its partners in Germany with a distinctive insurance offer which protects their term creditor insurance customers.
made by CNP Santander Insurance in 2O15, more than half of it in Germany the Group is the leading term credit insurer in Europe million premium income
On 1 January 2015, CNP Assurances opened a representative office in Munich and immersed itself in the reality of the German property market. 2,500 financial institutions and 250,000 intermediaries market mortgages there, with a value of €180 billion per year. Only 30% of German households insure their borrowing. In order to create a solution to protect all those families without cover, the CNP Germany team relied on the Group’s experts in term credit insurance to create a bespoke offer. The marketing, actuarial and legal teams adapted the
French model to the rules and specific practices of the German market and to its powerful distribution networks. Simplified medical formalities and digitisation of the subscription process made the insurance more attractive, because it is necessary to convince German households that wish to secure their loan transaction long-term. At the same time, the canvassing of future distributors continues. The first partnerships with property lending professionals, attracted by CNP Assurances’ innovative and co-constructive approach, are in the process of being finalised.
Q. no. 7 How can a large investor contribute to the reduction of carbon emissions?
Anne-Catherine Husson-Traore Chief Executive Officer of Novethic Paris, France 1604340_CNP_RA_GB_2015.indd 26 13/05/2016 14:57
CNP Assurances has taken environmental, social and governance (ESG) criteria into account in asset management for about ten years, and they now affect 81% of its portfolio. In 2015, on the back of the momentum created around COP21, CNP Assurances published the carbon footprint of its shares portfolio, for the first time: 0.47 tonnes of CO2 equivalent per thousand euros invested. The company has set itself very ambitious targets, which will force it to act quickly and in a concrete way towards the ecological and energy transition, by encouraging the companies in which it invests to reduce their impact, supporting those that contribute to energy efficiency, and, as a last resort, withdrawing the worst-performing companies from its portfolio. In one year, CNP Assurances has reduced its carbon footprint by 5%, and does not intend to stop there.
This is the carbon footprint reduction commitment of the listed share and real estate portfolios between now and 2O2O
CNP Assurances manages assets of just over €300 billion, in order to keep to its long-term commitments to its insured. The consequences of climate change are already visible and could be quite a lot more visible within that timeframe, which encourages the Group to act now using the powerful lever of its investments. By signing the Montreal Carbon Pledge in May 2015, CNP Assurances committed to publishing the carbon footprint of its financial assets. It began with direct action on its share portfolio in 2015, with an additional target, that of reducing its carbon footprint by 20% by 2020. Responsible financial management is entering a new era: the decarbonisation era. How? Through dialogue, and by encouraging companies of which it is a shareholder to reduce their greenhouse gas emissions. At the same time, in order to support the energy transition, CNP Assurances sold nearly €300 million in bonds issued by companies extracting or producing carbon-based energy.
Based on its convictions, CNP Assurances has decided to make energy transition one of the new objectives of its responsible investment policy. In the future, the Group undertakes to no longer invest directly in companies in which more than 15% of the revenue is associated with carbon-based energy. It is also interested in companies specialising in the energy transition and its ambition is to double the amount of its green investments (infrastructures, private equity and green bonds), which will increase from €800 million to €1.6 billion by the end of 2017. The first flagship initiative is the launch, with the management company Meridiam, of a green infrastructure fund, Meridiam Transition, dedicated to financing the ecological and energy transition, which could quickly reach €500 million.
€8OO MILLION IN GREEN INVESTMENTS, INFRASTRUCTURES, PRIVATE EQUITY AND GREEN BONDS, AT THE END OF 2O15
People’s customs and lifestyles are changing increasingly quickly and more and more radically. Society does not evolve quickly enough for some, but evolves too fast for others. In order to follow these movements, one fi rst has to understand them. This involves getting connected with the people concerned and designing suitable solutions with them. Thus, CNP Assurances has created a Generation Y observatory and has launched an online community to interact with it. Similarly, where the social and solidarity-based economy is concerned, the Group uses its experience in Brazil to explore micro-insurance solutions for Europe. For CNP Assurances, all life’s projects are worth insuring. Innovation and co-construction are key to providing everyone with better support.
Brazil since 2001 4OO young people million 1604340_CNP_RA_GB_2015.indd 31 13/05/2016 14:57
Insuring by conviction The CNP Assurances Group has considerable experience of micro-insurance in Brazil, where its subsidiary Caixa Seguradora has been operating since 2001. Thus, its popular Bilhete allows Brazilians to insure themselves for less than €1 per month. The funeral insurance Amparo can be underwritten in a few seconds, for a few reals. The Conjugado provident plan includes a pension micro-plan to build up a minimum savings pot. More than 5 million micro-savings contracts have been sold in fifteen years. In France, CNP Assurances is the co-reinsurer of the “À tout cœur santé” offer. This enables people excluded from the universal additional health cover, but whose income puts them below the poverty line, to access additional health cover.
The social and solidarity-based economy is the natural territory of CNP Assurances, as a partner of the mutual and joint bodies world, and active defender of insurance for all. Thus, the Group is involved in the Fabrique d’Assurance initiative, which brings together those involved in the industry. This collaborative think tank mixes expertise and viewpoints in order to take insurance off the beaten tracks. Micro-insurance is in fact one of the very first areas to be explored. To insure everyone’s future is a very affirmative promise which needs to change the rules of the game.
Q. no. 9 Is the economic slowdown in Brazil having an impact on your strategy?
Youse company, a fi rst of its kind in insurance in Brazil
We have been in partnership with Caixa for fifteen years, fifteen years of trust between the staff of the two groups, and fifteen years of proven track record. The Brazilian dynamic is confirmed against all the odds. In 2014, revenue increased by 16.7% in a tense social climate crystallised by the football World Cup. In 2015, it leapt by 32% (at constant scope and exchange rates) and now amounts to €3.2 billion. Personal protection (+17%) continues to be attractive to Brazilians, who dream first of protecting their health and then of buying their own home.
Gabriela Ortiz de Rozas Director of marketing, strategy and communication, Caixa Seguradora At Caixa Seguradora, we think that the largest Brazilian insurance company of the next fifteen years has not been created yet. Today, 50 million Brazilians buy products on the Internet. Insurance policies are of course sold online, but the processes which follow are traditional. Caixa Seguradora is the first to offer a 100% digital insurance experience. We recruited young people from start-up companies to get out of our usual thought processes and habits, and came up with “Youse”. The world is changing, it’s up to us to play our part!
Brazil is the ideal territory. The target of candidates for micro-insurance is huge, and practices are being digitised there much faster than in Europe. 74% of Brazilians say that they are prepared to subscribe for insurance remotely, while online insurance only represents 0.4% of the market. In its quest to diversify its distribution methods, the CNP Assurances Group has decided to create a 100% digital insurance company. In Brazil, all the large insurance players are betting on mass distribution and are opening virtual shops on their websites. Caixa Seguradora is looking for a breakthrough innovation. How can you sell insurance on Twitter or WhatsApp, while offering the customer the best possible experience? This is the challenge that the subsidiary has set itself. And it is taking it on in start-up mode. The idea is to create a pure player company, born in the world of e-commerce, in line with the codes, the practices and the requirements of e-buyers. In order to do that, the model Caixa Seguradora has used is that one that made GAFA(1) such a success: the customer process. From the tightly-knit and autonomous cross-functional team, to the market surveys to get to know this new target, to the agile “design thinking” development methods used to innovate fast, to test all at once and to constantly improve, Caixa Seguradora has introduced a 100% new way of doing insurance, and the results do not disappoint. The company Youse will allow people to subscribe for insurance simply, intuitively and 100% online. Customers will be able to design adaptable policies in a few clicks, to cover their lives and assets. Youse will be launched in summer 2016 with a basic offer of personal risk and protection products for housing and for life. This is an experience that CNP Assurances Group intends to export to Latin America, and even to Europe.
Michel Chabanel Chairman of the French Association of Investors for Growth Paris, France 1604340_CNP_RA_GB_2015.indd 38 13/05/2016 14:57
An additional reason to be proud is that there are only 13 European companies in this table, and only two of them are French. This distinction is a tribute to the length of CNP Assurances’ commitment, which began in 1992, as much as to its impact, with nearly €6 billion invested in nearly 300 funds since the beginning. Private equity is an essential driver of the real economy, which makes it possible to support companies in their development projects, in the long term, while avoiding the jolts and uncertainties of the financial markets. In this way, CNP Assurances contributes to the financing of hundreds of job-creating companies. In terms of the portfolios, private equity generates out-performance for a limited risk, due to the work done on the selection of projects. (1) League table drawn up by PEI (Private Equity International), the unlisted investments industry’s reference media group.
institutional investors in unlisted securities worldwide committed in the last fi ve years in private equity
Hélène Falchier Private Equity Investments Manager The new programme of direct investments in start-ups, Open CNP, extends the tradition of supporting companies and illustrates the intention of CNP Assurances to increase the number of opportunities for innovation, in line with the challenges facing its businesses. The objective is to screen innovative and agile small businesses with which we will establish a partnership that will go well beyond mere financial investment. Open CNP is creating a framework in which it is in everyone’s interest to support the development of the other. We challenge them in their research and their tests with our questions and our expertise, and in return, we allow them to move faster by using our networks and knowledge of the markets. This very much meets their expectations. And it is a very effective approach to bring innovation and agility to the heart of our great institution.
CNP Assurances is one of the first French institutional investors to become involved in the financing of companies using private equity. Every year, the Group invests between €500 million and €700 million in this asset class, in the form of between 25 and 30 operations selected by specialised funds or by way of co-investment, from among hundreds of applicant projects. These operations cover all the stages in the life of companies, from starting up, to growth and transfer. The portfolio is 70% European, with a predominant share devoted to France. By way of example, for more than twenty years, CNP Assurances
FRENCH SMES WERE SUPPORTED BY CNP ASSURANCES AT THE END OF 2O15 has invested in the health sector to finance the development of medicines or to support SMEs in their growth until they become international mediumsized companies. Together with other large insurers and Bpifrance, CNP Assurances is also a partner of France Investissement Assurances which supports SMEs. It is also the principal contributor to that body, with €248 million invested since 2012, nearly 40% of the programme’s total budget. The savings of insured people thus contribute to the financing of hundreds of companies creating jobs.
The digitisation of society is speeding up and CNP Assurances’ businesses are looking for answers. How to contribute to the well-being of the elderly? How to manage the relationship with nomadic customers? What are the risks that arise from the new ways of living and working? Where is tomorrow’s distribution channel?
The 2015 business report starts a dialogue with ten people who wanted to ask us about the challenges we face as an insurer. What do you remember about those conversations?
F. L. The rebalancing of our model can be seen specifi cally in our results. It is perfectly visible in all geographical areas, but particularly rapid in Europe excluding France, where, in 2015, revenue, which two years ago was for the most part in savings in euros, is now made up as to 70% of unit-linked and personal risk and protection products. This change will be reinforced in France by our new partnership with BPCE, which puts the emphasis on the personal risk and protection businesses, and by our agreement with La Banque Postale, which extends our partnership to the wealth management segment.
New customs, new risks, new uncertainties: what role can an insurer play in today’s society?
CNP Assurances also has digital ambitions that break from traditional practices: the example of our entirely digital subsidiary in Brazil illustrates our potential for innovation.
J.-P. F. The digitisation of the economy must be seen as an opportunity for the development of our business model. Like all companies, we are computerising our management to the maximum extent, and taking advantage of the innovations of digital companies to improve our online services. But CNP Assurances also has digital ambitions that break from traditional practices: the example of our entirely digital subsidiary in Brazil illustrates our potential for innovation.
During COP21, CNP Assurances made strong commitments on the climate. Why are you speeding up the responsible approach?
F. L. In fact, on the back of the momentum created around COP21, CNP Assurances published the carbon footprint of its directly-owned share portfolio for the fi rst time, and committed to reduce it by 20% between now and 2020. Why? Being conscious of the length of our commitments to our insured, over fi fteen or twenty years, we have for many years taken long-term risks and in particular climatic risks into account. The values we share within the Caisse des Dépôts Group obviously make us particularly aware of the challenges of the energy transition.
CNP Assurances’ coverage ratio for the purposes of Solvency II is high at the end of 2015, what does this mean?
J.-P. F. The current economic context is characterised by historically low interest rates. In this environment, our solvency margin aims to give us considerable resilience, when faced with unfavourable scenarios. This is also the reason why, with complete transparency, we publish the sensitivity of our coverage ratio to a variety of standard scenarios. With the support of the Audit Committee, the Board of Directors pays particular attention to the analysis of risks, especially with regard to the requirements laid down in the Solvency II directive. The registration document reports extensively on this. We have a duty to be absolutely transparent in this respect to all our shareholders, to our customers and to the regulatory authority.
F. L. The conclusion of renewed partnerships with BPCE and La Banque Postale, on excellent terms, the fi rst visible results of our actions to transform the business model, and our conviction regarding our digital multi-channel and multi-product strategy, have allowed us to publish growth targets in spite of the diffi cult environment. It is this ambition which gives full meaning to the adaptation and creativity efforts made by the employees of CNP Assurances. It shows our confi dence in the success of our business.
THE EXECUTIVE COMMITTEE The Chief Executive Offi cer implements the strategy adopted by the Board. He is assisted by the Executive Committee, whose members are twelve directors representing the key areas of the company. This coordinating body deals with all subjects of cross-functional interest. The presence of at least one member of the Executive Committee on the Board of Directors of the main subsidiaries in France and the appointment by CNP Assurances of at least half of the directors of subsidiaries abroad, guarantee that the strategic management of the Group is consistent.
Sopassure, a holding company owned by La Banque Postale and BPCE Group
CNP Assurances is speeding up its transformation and is initiating strategic projects for the Group with the unfailing support of its Board of Directors.
In Europe excluding France, net insurance income was down by 5.2%, affected on a non-recurring basis by changes in scope in 2015 (disposal of CNP BVP, integration of CNP Santander Insurance and the relaunch of CNP Partners).
+6.8% at constant scope and exchange rates 1604340_CNP_RA_GB_2015.indd 50 13/05/2016 14:57
Average organic EBIT growth target(1) of at least 5% over three years (1) In line with the group’s strategy.
Slightly down by but up by 7.7% at constant scope and exchange rates
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CNP Assurances | Registered offi ce: 4, place Raoul-Dautry, 75716 Paris Cedex 15 | Tel.: 01 42 18 88 88 www.cnp.fr | Caisse des Dépôts Group