B us in es s r ev ie w a nd su st ai na bl e de ve lo pm en t r ep or t
CNP Assurances is a société anonyme (public limited company) incorporated in France with fully paid-up share capital of €594,151,292. Registered office: 4, place Raoul Dautry, 75716 Paris Cedex 15 Registration number: 341 737 062 RCS Paris Governed by the French Insurance Code Website: www.cnp.fr
1 Profile 2 CNP assurances in France and internationally 4 Message from Edmond Alphandéry, Chairman of the Board of Directors 6 Interview with Gilles Benoist, Chief Executive Officer 8 Responsible governance
SECTION 1 / THE GROUP: BETWEEN YOU AND US, A LIFETIME TO PROTECT
24 A solid performance in 2010 26 Financial highlights 28 Social responsibility highlights 29 Information systems at the centre of our strategy
SECTION 3 / SOLUTIONS: BETWEEN YOU AND US, A LIFELONG PARTNERSHIP
• Suppliers: respect for human rights and international labour and environmental laws.
Countries served from France under the EU freedom of services directive
As a personal insurer, CNP Assurances’s performance is shaped by the economic and financial environment in which it operates. We are particularly influenced by the financial markets and, since the bulk of our customers are in France, by the economic situation in our home country.
Let’s be clear. It is true that we are recovering from the crisis, but recent events – including the uprisings in North Africa and the Middle East and the earthquake and tsunami in Japan – have shown just how difficult it can be to predict the future.
The tax advantages of life insurance have come under threat in recent months. Yet this is one area where it is vital to tread carefully, as life insurance is the pillar of the French savings market. The industry’s technical reserves of €1,400 billion are essential to finance the French economy, through investments in the stock market and the corporate and government bond markets. We have to be careful not to discourage savings, which are one of the essential ingredients of growth and job creation. It is important to remember too that many people purchase life insurance as a means of boosting their retirement income. Any reforms must take into account these economic and social dimensions.
Life insurance is the pillar of the French savings market. The industry’s technical reserves of €1,400 billion are essential to finance the French economy, through investments in the stock market and the corporate and government bond markets.
We had announced that we wouldn’t try to increase premium income at any price in 2010 and that we would focus on developing risk products in France and in international markets. This strategy led to solid growth in consolidated profit. Sales of traditional savings contracts held firm after rising sharply in 2009. While the increase in unit-linked revenues remained modest, the business’s contribution to our total revenue stood within an unprecedented 2% to 3% of the market weighting. In all, premium income was down a very slight 0.8% on 2009, but all other key indicators attested to our ability to create value. Most notably, EBIT advanced by 8.8% during the year.
INTERVIEW WITH GILLES BENOIST, CHIEF EXECUTIVE OFFICER In a record-low interest rate environment, CNP Assurances worked determinedly to consolidate its performance in 2010, focusing on risk products and leveraging international markets to improve its margins. We’ve achieved what we set out to do.
began thinking about transferring their wealth to the next generation. Today, more and more retirees are dipping into their savings to make up for the decline in their incomes.
Speaking of protection, 2010 marked a turning point for the French as they became aware of the need to prepare for retirement sooner. What role can the insurance industry play, particularly CNP Assurances?
Insurance can make an extremely important contribution in the key areas of pensions and long-term care. I use the word “contribution” advisedly, because insurance alone cannot solve everything. It has to go hand-in-hand with government programmes. To offset the decline in their income, French people will need
Our employees believe strongly in sustainable development and SRI rating agencies like Vigeo seem to now recognise the sincerity of our commitment. We count ourselves among those who genuinely embrace our social and environmental responsibility, both in theory and in practice. For instance, we have long promoted diversity within our organisation, with the result that we have one of the highest percentages of disabled employees among French companies. We don’t shout it out from the rooftops, but this is the kind of achievement that makes us proud.
to supplement their pensions from the governmentsponsored schemes by transforming their savings into additional regular benefits. Life insurance makes this possible, while at the same time offering a great deal of flexibility. As for long-term care, this is a risk that can be easily pooled and managed.
When you said this year that international operations have changed CNP Assurances, what did you mean?
In 2010, we did what we said we would do, which was to focus, both in France and internationally, on higher-margin risk products that satisfy the fundamental human need for protection, rather than trying to increase premium income at any price.
RESPONSIBLE GOVERNANCE CNP Assurances’s governance organisation and practices are designed to protect the best interests of policyholders and shareholders.
The presence on the Board of representatives of our major shareholders, who have actively participated in defining our strategy, ensures that the interests of all shareholders are taken into account and protected.
– Gérard Ménéroud, Deputy Chief Executive Officer, Development and Partnerships Director
Huguette Rellier, who is in charge of Internal Audit and Quality, acts as Secretary to the Executive Committee.
The heads of Risk Control, Internal Audit, Communications and Sustainable Development are all directly represented by the Chief Executive Officer.
Directors Edmond Alphandéry, Chairman Gilles Benoist, Chief Executive Officer Caisse des Dépôts et Consignations, represented by its Chief Executive Officer, Augustin de Romanet Antoine Gosset-Grainville* Pierre Hériaud André-Laurent Michelson Alain Quinet Franck Silvent Sopassure, represented by Marc-André Feffer Jean-Paul Bailly Olivier Klein François Pérol Philippe Wahl* The French State, represented by Ramon Fernandez Philippe Baumlin Henri Proglio Marcia Campbell* Stéphane Pallez*
Works Council Representatives Nadia Remadna Pascal Oliveau Valérie Baron-Loison Patrick Berthelot
Statutory Auditors PricewaterhouseCoopers Audit, represented by Éric Dupont Mazars, represented by Jean-Claude Pauly
Audit and Risks Committee Stéphane Pallez*, Chairman Olivier Klein Franck Silvent Philippe Wahl* Marcia Campbell*
Remunerations & Nominations Committee Henri Proglio, Chairman Edmond Alphandéry Jean-Paul Bailly François Pérol Augustin de Romanet
Strategy Committee Edmond Alphandéry, Chairman Marc-André Feffer Olivier Klein Henri Proglio Alain Quinet Augustin de Romanet
• Board of Directors comprising 11 members (6 nominated by CNP Assurances) elected for three-year terms.
• 3 Committees of the Board: Remunerations and Nominations Committee; Internal Control Committee; Strategy Committee.
• Board of Directors comprising 14 members (7 nominated by CNP Assurances) elected for five-year terms.
CNP Barclays Vida Y Pensiones Compañía de Seguros, SA (CNP Assurances: 50%)
• Supervisory Board comprising 9 members (5 nominated by CNP Assurances) elected for four year terms.
• 2 Committees of the Board: Audit Committee; Remunerations and Nominations Committee.
Subsidiary governance structures 2010 Business Review and Sustainable Development Report > 11
Our personal risk, pension and life insurance offers meet a universal human need to feel secure about the future in order to enjoy the present, undertake projects and make plans.
As the leading provider of personal risk insurance, CNP Assurances covers more than one in three people in France. As such, we carry a great deal of responsibility as well as a certain legitimacy of action.
CNP Assurances takes an active part in major public discussions and debates concerning personal insurance. We also play a major role in financing the economy by supporting infrastructure projects and the business sector. For example, at the end of 2010, we held over €95 billion worth of government and other public sector bonds and €103 billion in corporate paper.
We have developed specific expertise in managing both financial and insurance risks. This expertise hinges on the interlocking involvement of a wide variety of professionals, including actuaries, lawyers, fund managers, IT specialists and finance experts. Together, we help policyholders to overcome pitfalls on the road of life, as they face the challenges of maintaining their standard of living after retirement, remaining in their home if they become disabled and meeting the cost of long-term care.
Upstream, designing a product involves identifying risks, determining the most appropriate cover and defining affinity groups to pool the risks. It then entails assessing the related underwriting, administrative and financial management costs, in order to determine a break-even price.
An educational web series The most popular savings vehicle in France, life insurance is nonetheless perceived as technically complex. Convinced that we have a responsibility to help people understand it better, we launched an interactive video website on the subject in October 2010 at www.toutsavoirsurlassurancevie.fr. The aim is not to present our products but simply to explain the utility of life insurance at the major turning points in everyone’s life. Six short films use the birth of a baby named Louise to illustrate the lives of six family members who represent the very different saver profiles that can be covered by the flexible terms of a life insurance policy. This is our first online campaign and also the first time we have chosen to target prospective customers by improving their understanding of our business, rather than by showcasing our products. It nonetheless echoes the theme of our traditional advertisements which, set to Shostakovitch’s Waltz No. 2, all take birth as the starting point. There is no better way to illustrate how magical and precious life is and how important it is to protect it.
(capital guarantees on non-unit-linked contracts, guaranteed number of units in unit-linked contracts, option to surrender savings policies at any time).
• Managing contracts that combine effectiveness, industrial processing and confidentiality over very long periods.
• Managing assets while securing commitments with the aim of optimizing and smoothing annual yields over time
Our commitments • Combat financial exclusion with products tailored to every budget.
• Ensure that underlying assets comply with socially responsible investment principles.
Pooling risks to optimise rates 2010 Business Review and Sustainable Development Report > 15
Because policyholders entrust us with protecting their most valuable assets, i.e. themselves and their families, the primary value-added delivered by CNP Assurances is trust.
As an insurer, we carry in our balance sheet the amounts invested in traditional savings products plus reinvested annual gains. These amounts can generally be surrendered at any time and we therefore have an obligation to securely manage the corresponding assets, while also generating stable, satisfactory returns over time.
In 2003, CNP Assurances stepped up its commitment to social and environmental responsibility by pledging support for the United Nations Global Compact, thereby reaffirming its sincere, deep attachment to its own fundamental principles and values.
Corporate social responsibility (CSR) has been at the core of our business for over 150 years. We are convinced that everyone should have access to financial products, because insurance helps to reduce social vulnerability.
For this reason, our policy has always been to make insurance widely affordable and accessible to all and to pool risks among the insured, unlike other insurers that prefer a more segmented approach.
This philosophy has led us to design insurance contracts with minimum premiums as low as €30 per month, and term creditor insurance policies that make no price distinction between men and women, smokers and non-smokers, etc.
A UNIQUE BUSINESS MODEL Our strength lies in long-term partnerships forged with distribution networks offering a well-established presence in their local market.
CNP Assurances has developed a unique business model in France that is anchored in long-term partnership agreements with large, well-established banking networks.
In the French individual insurance market, we work primarily with two large distribution networks, La Banque Postale and the Caisses d’Epargne, which together represent a total of nearly 22,000 sales outlets. These two partners have signed distribution you Paul Masson, 7 years old and his grandmother
To foster closer relationships between teams, various committees meet on a regular basis to discuss local market trends, product alignment, financial performance and the quality of day-to-day management.
In 2010, CNP Assurances and its two main partners decided to improve this process to further promote dialogue and teamwork. La Banque Postale approved our plan to strengthen the partnership committee and create additional committees in specific disciplines (e.g. Finance, Marketing, IT and Administration).
The Caisses d’Epargne set up a new committee in 2010 dedicated to monitoring competition and regulatory compliance and supervising how new products are presented. This new committee will serve to optimise product innovation processes within the partnership framework.
Our business model is an excellent driver of product innovation. We regularly renew our offer by soliciting feedback from the distribution networks, in order to effectively meet policyholder needs and provide products that the sales forces are proud to sell. Our products are adapted as necessary in close collaboration with these teams, taking into account the specificities of their customer base in terms of age, risk profile, income and evolving needs.
Our group insurance products include pension, term creditor insurance and employee benefits contracts sold to more than 200 financial institutions, around a hundred mutual insurance companies, 20,000 local governments and hospitals, 4,500 companies and numerous not-for-profit organisations.
The vitality of the distribution networks is the key to developing our business. For that reason, whenever possible we encourage them to become shareholders of our local subsidiary, with a seat on its Board or equivalent, and also provide them with financial incentives to build sales.
Our business model has proven its effectiveness outside France over the past decade. Unlike many of our competitors, we focus almost exclusively on bancassurance distribution channels. This selectivity strengthens our power to attract partners. The current changes in our regulatory environment, with the Solvency II directive and the Basel III recommendations, should draw more banks into this type of partnership.
Pierre Nicolas Carissan, Deputy Director of International Operations CNP Assurances us
In international markets, we’ve got to have the flexibility to adjust our business model. CNP Assurances has developed a robust business model that is recognised for its effectiveness in building long-term bancassurance partnerships. We reproduce this basic model whenever possible, by acquiring the captive insurance companies of local banks. When our distribution partners have no insurance company of their own yet, we can create one with them in the form of a start-up joint venture. This is what we did several years ago with the Chinese Post Office, which we partnered to create Sino-French Life Insurance. In some cases, as in potential growth markets where we haven’t identified any strategic banking partners, we may even create or acquire platforms that operate as open distribution channels, that is to say without establishing any long-term distribution agreements. This approach, which requires only a fairly small investment, enables us to learn the ins and outs of a market, build an appropriate infrastructure and create a team capable of identifying and following through on partnership opportunities. In 2007, for example, we acquired the Skandia Vida platform in Spain, since renamed CNP Vida. This acquisition helped us to acquire experience and credibility in the Spanish market, develop ways of handling the competition and, two years later, sign a major partnership agreement with Barclays. It’s an approach that could prove even more useful in markets where products, regulations and network management processes are very different in nature from those we are familiar with in Europe, South America or Asia.
International facts and figures for 2010 Premium income from international operations: €6.2bn representing nearly 20% of total premium income
A SOLID PERFORMANCE IN 2010 In a historically low-interest rate environment, CNP Assurances focused on developing sales of risk products (i.e. products that offer coverage of an insurance risk), both in France and in international markets. This strategy led to solid bottom-line growth and increased balance sheet flexibility.
International operations were a crucial growth driver, representing 19% of consolidated premium income in 2010. Outside France, the strategy also consisted of focusing on the high-potential personal risk and term creditor insurance segments.
CNP Assurances pursued its value creation strategy in 2010, as announced.
Market consistent embedded value (MCEV - see Glossary) rose by nearly 7% to €20.3 per share. MCEV is equal to the sum of adjusted net asset value (ANAV) and the value of in-force business (VIF). ANAV mainly corresponds to the value of assets attributable to shareholders after deducting intangible assets and subordinated debt. VIF corresponds to the discounted present value of future profits over the life of existing contracts in the portfolio. ANAV rose 5.6% during the year and the value of in-force business (VIF) was nearly 12% higher due to the combined effect of growth in technical reserves and the consolidation of CNP BVP.
Martine and Guy Neuville with their grandson Alexis you 2010 Business Review and Sustainable Development Report > 25
Pensions (9.8%) Personal risk (5.3%) Loan insurance (9.4%) Health insurance (1.5%) Property & Casualty (1%)
France (80.9%) Italy (8.2%) Portugal (0.7%) Brazil (7.6%) Spain (1.8%) Cyprus (0.6%)
* Subject to shareholder approval at the Annual General Meeting on 6 May 2011.
Training budget (CNP Assurances and consolidated international subsidiaries): 4.2% of total payroll
Carbon footprint per employee in 2010 at constant scope of reporting, up 3.8%, of which 3.1% due to internal operations
Number of contracts including SRI funds as of 31 December 2010: 86,200, up 8% over 2009
SOCIAL RESPONSIBILITY HIGHLIGHTS In pledging our support for the Global Compact in 2003, we reaffirmed our commitment to respecting its fundamental principles, combating corruption and protecting the environment. In 2010, following the example of CNP Argentina and Caixa Seguros, CNP UniCredit Vita also pledged support for the Global Compact.
INFORMATION SYSTEMS AT THE CENTRE OF OUR STRATEGY CNP Assurances continually invests in its information systems to support the deployment of its strategies. In 2010, the Group made headway on large federating projects, while at the same time enhancing the services provided to its partners.
Modelling and applying new standards: This project family focuses on downstream systems and their mandatory alignment with IFRS and Solvency II requirements that will be applicable to European insurance companies between now and the end of 2012.
The Nemo project to design a new asset/liability modelling environment was pursued in 2010. Its initial objective is to model the Group’s entire balance sheet and calculate economic capital according to the Solvency II standard formula. Ultimately, it will provide an internal model that will enable us to reduce our solvency capital requirement and effectively control the financial and actuarial aspects of market risk. In the last quarter of 2010, we were able to more accurately define our vision of its Group-wide application, i.e. to CNP Assurances and its subsidiaries.
Asset management: The project to implement a management platform integrating all assets in the portfolio was ongoing in 2010. Its aim is to centralise asset portfolio management ahead of Solvency II and generate “multi-vision” asset management data to support the Group’s investment strategies.
We pursued our programmes to optimise insurance workstations to permit secure processing of as many transactions as possible at the point of sale. Lastly, we continued to enhance our administrative systems, which play a key role in handling the nearly 15 million individual insurance contracts in our portfolio and in providing the best possible level of service.
At the same time, we have strengthened our online services platforms, which managers and policyholders can access via the web portal of each of our partners.
At the other end of the scale, we are also very active in the high-end segment, with products such as Nuances Privilège, distributed by the Caisses d’Epargne, and Cachemire, distributed by La Banque Postale.
Sales of insurance products to the Caisses d’Epargne’ private banking clients grew 38% in 2010, led by Nuances Privilège.
They also have the solution for grandparents wanting to help the younger generations during their lifetime, with Nuances Grenadines, a life insurance contract with a potentially tax-exempt gifting formula.
CNP Trésor Générations is another simple and innovative savings contract with a unit-linked formula that combines tax-exempt gifting with the tax benefits associated with life insurance contracts.
CNP Trésor is our in-house sales force. Its 300 insurance advisors meet with clients in their own homes to discuss their needs in order to propose solutions to protect and increase their savings, and to avoid gift and inheritance taxes, as well as offering various forms of insurance cover.
These life insurance and savings protection specialists offer CNP Trésor’s 360,000 policyholders a comprehensive range of savings, pension and personal risk products. These clients expect a high quality service and they appreciate the CNP Trésor team’s expertise. They also have confidence in the CNP Assurances signature, which they view as a guarantee of reliability and transparency.
In 2010, revenue generated by CNP Trésor rose 9% over the previous year.
Life insurance: of the French savings market in 2010 (€130 billion, FFSA estimates at end-2010)
Toscane Vie, rewarding loyalty In September 2010, La Banque Postale launched Toscane Vie, the latest addition to its range of life insurance products specifically designed for private banking clients. Toscane Vie is firmly positioned at the high end of the market, with premiums starting at €15,000. Savers are rewarded for their loyalty through the automatic transfer of interest and capital gains to a dedicated loyalty fund at the end of each month. The contract is distributed exclusively by La Banque Postale’s teams of financial advisors.
Five new prizes for traditional savings contracts with a unit-linked formula The traditional savings contracts with a unit-linked formula distributed by La Banque Postale and the Caisses d’Epargne feature regularly among the winners at the annual “Trophées du Revenu” awards organized by Le Revenu magazine. In 2010, Cachemire won a gold medal in the diversified (16 to 50 funds) category, and Vivaccio was awarded a bronze medal in the activelymanaged (two to 15 funds) category. Traditional savings contracts with a unit-linked formula distributed by the Caisses d’Epargne won three medals, with a gold medal for Nuances Privilège in the growth funds (over 50 funds) category, and bronze medals for Nuances 3D and Nuances Plus in the diversified (16 to 50 funds) category.
PREPARING FOR RETIREMENT French people are starting to prepare for retirement increasingly early. CNP Assurances is there to help them, with its life insurance products, specific individual pension offerings and group pension products.
Most savers are motivated primarily by the need to put money aside for their retirement. While France is seeing an increase in sales of pure individual and group pension products such as Plans d’épargne retraite populaire (PERP), Plans d’épargne pour la retraite collective (PERCO) and Madelin contracts, the amounts invested in these products remain limited. Property and life insurance are still viewed as the best way of providing an income in old age. According to a survey conducted by the French insurance federation (FFSA) in May 2010, 56% of life insurance policies are purchased in preparation for retirement.
This statistic shows that French people’s perception of life insurance as a means of saving for retirement has not lessened over time. These products’ flexibility and the fact that they offer a capital guarantee explain why they still represent the best way of achieving long-term capital growth.
The group pensions market includes defined contribution and defined benefit plans, PERE and PERCO plans, early retirement benefit plans, and insurance contracts covering the payment of length-of-service awards. CNP Assurances is the unchallenged leader of this market, deploying its expertise through its employee savings plan management subsidiary, Fongepar.
Developing the supplementary pension line-up Half of the people currently in work plan to save more for their retirement in the next five years. The growth outlook in both the individual and group pensions markets is therefore very promising. A mere 15% to 20% of companies have set up supplementary pension plans for their employees and only 25% have an employee savings plan. To meet all of these unsatisfied needs and build a combined group pensions (insured plans and employee savings plans) and individual pensions offer, we have set up a strategic partnership with Malakoff Médéric to market a joint range of products and services for private sector employees.
We have a role to play in helping French people to better prepare their retirement. Several surveys carried out in connection with the pension reform revealed that French people are increasingly worried, with many believing that they will not have enough to live on in their old age, but they also lack information about the probable size of their pension. At the same time, market data shows that demand for annuity products is limited, despite the fact that they are the only products covering longevity risk. It’s clear that French people under-estimate the length of time they will draw a pension. We have a role to play in helping them prepare for retirement by developing innovative life annuity solutions. We also need to continue our detailed discussions with our partners in order to come up with the most appropriate solution for each client segment, determine the arguments that will convince these clients to save for their retirement and agree on the essential role that the networks can play in providing information and advice.
Prévialys Accidents de la Vie covers the major but often poorly-identified risk of personal accident. Each year, several million people are victims of accidents. When the accident occurs outside the workplace and a claim cannot be made against a third party, the victim is not covered. This is where Prévialys Accidents de la Vie steps in, by covering the accident’s physical and financial consequences.
Other products provide an income for the family in the case of death or disability (Avisys Protection Famille) or coverage of funeral costs or long-term care costs.
La Banque Postale Prévoyance (formerly Assurposte) is a joint subsidiary of CNP Assurances and La Banque Postale set up in 1998. In 2009 its total number of individual insurance policies crossed the two million mark. In 2010 the subsidiary celebrated its first ten years of business. Its comprehensive product line-up offers reasonably priced coverage of a broad spectrum of everyday risks for policyholders of all ages according to their needs.
CNP Assurances operates in the employee benefits market as an insurer, co-insurer and re-insurer, serving companies, regional and local authorities, hospitals and employee benefits institutions.
The market leader, CNP Assurances has created products for its individual insurance partners that address not only the financial needs arising from total and partial dependence, but also the need for assistance in performing day-to-day tasks and support for carers.
Protectys Autonomie distributed by La Banque Postale pays a monthly benefit ranging from €300 to €3,000 over the insured’s lifetime. Assistance Vie sold by the Caisses d’Epargne network offers a basic formula covering partial or total loss of autonomy and an enhanced formula that also covers limited dependence, even resulting from a simple fracture.
We are also helping to increase the protection available to French people by playing a leading role in group long-term care insurance. MGEN – the teachers’ mutual insurer that we have been partnering for 40 years – added total loss of autonomy cover to its health insurance contracts in January 2010, with reinsurance cover provided by CNP Assurances. Two million civil servants are concerned, including teachers, university lecturers, researchers and employees of the ministries of culture, communication, youth and sport.
The term creditor insurance offering is distributed to home loan specialists, high street banks, consumer loan specialists and also to non-profit lenders set up to support the social economy, such as the “CIL” committees that collect and invest the housing levy payable by companies under the “Action Logement” program. With our roots in the public sector, we share the same culture and values as these non-profits.
2010 was a successful year on the marketing front, with CNP Assurances submitting the winning bids to write term creditor insurance for two social economy non-profits (CIL Logilia and CIL Procilia) and for the Crédit Municipal de Marseille bank. We were also chosen by Barclays Bank France to insure loans to the bank’s private banking customers, loans to buy-to-let investors and business loans.
These successes have strengthened our position in a market that has seen a shift towards greater protection of insureds with the adoption of the 1 July 2010 consumer credit act (know as the “Lagarde Act”). Since 1 September 2010, borrowers are free to purchase payment protection from the insurer of their choice. We responded proactively to this change by leveraging our strengths, including our efficient administrative processes, our underwriting expertise and our skill at innovating to meet clients’ needs.
The market has been won over by our expertise, but also by our vision of term creditor insurance which we consider should not be just a means to an end but a real source of protection for borrowers against the consequences of unforeseen events.
The Brazilians are quick to embrace innovative products The Brazilian economy has changed a lot in recent years. And with the country now preparing to host the 2014 Soccer World Cup and the 2016 Olympic Games, the related investments and steadily improving revenues in the poorest segment of the population should drive economic momentum, leading to exponential growth in the insurance market. Caixa Seguros holds the keys to success in this market, with simple products that can be purchased not only in Caixa bank branches but also through alternative channels such as lottery ticket outlets, telemarketing centres, automatic teller machines and the Internet. The Brazilians are quick to embrace innovative products. For example, sales of our personal risk contract, Vida Mulher, have been growing at a rate of over 89% a year since 2008.This unique product combines basic cover such as natural and accidental death and permanent total or partial disability with a multitude of innovative guarantees such as a special payment to policyholders diagnosed with female cancer, exemption from monthly premiums in the case of unemployment, help with paying for drugs (in the form of discounts of up to 40%), a funeral assistance service, nutritional advice and the check-lar home check and repair service covering electrical, plumbing and other problems. Sales of Vida Mulhar are supported by operational marketing campaigns, particularly around International Women’s Day or Mother’s Day, when customers are given a beauty product as a gift. Brazilians respond enthusiastically to this type of operation.
International markets driving growth in personal risk business While in France, our core business is still life insurance-based savings solutions, the personal risk business is the biggest weighted average source of international revenue. Some of our subsidiaries hold leading positions in this market. For example, in Brazil Caixa Seguros is the no. 1 provider of term creditor insurance and is also very active in the other personal risk segments. It is now planning to branch out into group health insurance, in partnership with one of Brazil’s foremost specialists, Tempo.
Filassistance International, a subsidiary of CNP Assurances, celebrated ten years in business in September 2010. France’s first local personal assistance provider, it places these services at the centre of the insurance business. Far from being the final touch added to contracts at the end of the design phase, assistance services are built into the process from the outset in the same way as financial benefits. This enables us to offer policyholders comprehensive, well put together products that cover all the needs arising from an insured risk, such as information and prevention, support in the early days, coordination, research, practical solutions and financial remedy. In other words, we address everything that allows us to be present before, during and after an accident or other unforeseen event, ensuring that we live up to our corporate slogan, “A lifetime insurer”.
LIFE ENHANCING SERVICES CNP Assurances has played a pioneering role in the development of “insurassistance” products. By combining traditional insurance with personal services within a single contract, these solutions respond to a growing need.
Filassistance International has revenues of €12 million and covers over 6 million beneficiaries. It has signed more than 120 partnership agreements with banks, employee benefits institutions, mutual insurers and large state controlled and private companies.
In 2010, the business grew by over 15%. In addition to launching Ecureuil Solutions Obsèques, which enables policyholders to call a hotline for advice on preparing their funeral, Filassistance has introduced a new legal protection formula that will be marketed alongside its other assistance formulas offered with health, longterm care, funeral and term creditor insurance.
Some 10,000 service providers have been certified as meeting Filassistance Services’ quality standards in the twenty areas recognized in the 2005 Borloo Act concerning the development of personal services, and are authorized to market their services under the CNP Services à la Personne brand. Beneficiaries are put in touch with one of these accredited providers by Filassistance Services’ assistance managers following an analysis of their specific needs. In addition, Filassistance draws on the expertise of the Âge d’Or Services network.
• 2004: a retirement advice formula is added to Solésio, distributed by La Banque Postale. This is the first endowment policy with an embedded assistance contract.
Since 1997, Carrés Bleus, a wholly-owned subsidiary of CNP Assurances, has offered CNP Assurances’s health insurance partners (traditional and mutual insurers and employee benefits institutions) an information hotline that provides advice on health and prevention issues, as well as on prices quoted by hearing specialists, dentists and eyecare professionals. This service offer allows policyholders to better understand the world of healthcare and play a more active role in managing their own healthcare needs.
ENHANCED RISK GOVERNANCE In recent years, CNP Assurances has been focusing on improving its management of risks. Solvency II is an opportunity to go a step further and strengthen its governance system.
The insurance business is all about managing and controlling risks. For several years now, CNP Assurances has assertively tackled risk management and control issues, with the stated aim of meeting the standards of best market practice.
The Solvency II directive provides an opportunity to pass a new milestone in this area. By imposing a holistic approach to risk management, with each activity and each employee having a role to play, Solvency II has raised the bar. We recognised the implications in 2010, leading us to strengthen our risk governance system and restate each individual’s responsibilities.
Controlling risks is the responsibility of two departments with complementary roles. The Risks and Compliance department is responsible for permanent controls and for overseeing the management of operational risks.
Alongside these two departments, the Internal Audit department is responsible for periodic controls.
Led by the Chief Executive Officer since 2008, the Enterprise Risk Management (ERM) project ensures that risk factors are taken into account when developing strategies and also in all of the Group’s activities. The existence of an ERM system is one of the criterion taken into account by Standard & Poor’s in their rating process and it also helps us to comply with the pillar 2 requirements of Solvency II, which sets qualitative risk governance, strategy and management standards as well as imposing tighter controls.
This approach is implemented upstream from the internal control system, which consists of performing ex-post assessments of risk control processes.
CNP Assurances has chosen to apply the internal control framework published by France’s securities regulator, Autorité des Marchés Financiers (AMF).
The entire approach (controls, self-assessments and tests) is gradually being applied to one or several business processes within the international subsidiaries that are ready, mainly in Brazil, Italy and Spain.
The results of control assessments performed at the end of 2010 showed that advances had been made at all levels of the organization.
In 2010, we finalised the implementation of the third European directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, which was transposed into French law in 2009.
A risk map was drawn up to support the new approach, which allows the insurer to align its level of vigilance with the risks incurred. Analyses are based on three levels of risk (low, moderate and high) and six criteria (distribution method, type of network, type of customer, contract category, premium payment method and premium amount).
Progress was also made during the year in updating the anti-money laundering annexes to the management agreements signed with partners.
In addition, internal control procedures were changed where necessary to better take into account moneylaundering issues. No material risks were identified in 2010.
An anti-money laundering e-learning programme In December 2010, employees were asked to take part in an e-learning programme on preventing the financial system from being used for money laundering and terrorist financing. Developed with 22 other insurers operating in France, the programme consists of several on-line question and answer modules and a final assessment questionnaire. It takes between half an hour and just over an hour to complete, depending on the exposure to money-laundering risk of the employee’s unit. To date, 92% of employees have taken part in the programme.
Our reasonable and measured financial strategy is rooted in a highly disciplined approach to matching assets and liabilities. Strictly aligning assets with liabilities is crucial, to ensure that we can fulfil our commitments to policyholders, sustainably offer the best possible yields to policyholders and shareholders alike, and manage the risk of losses on own-funds portfolios.
For each portfolio of similar contracts, an investment strategy is defined covering asset allocation, the choice of maturities and any hedging instruments, the exposure limit for each issuer and the profit-taking policy.
We regularly test our investment strategy to ensure that it remains appropriate in light of forecast interest rate and stock market trends. The behaviour of each portfolio is simulated based on various stress scenarios and different policyholder behaviour scenarios.
Contracts with yield guarantee of less than 60% of the TME rate
Contracts with a higher variable yield 2,948.4 1.0% 2,941.0 1.1% 2,965.6 1.2%
Insurance and financial liabilities by type of contract, excluding the policyholders’ surplus reserve
At CNP Assurances, asset allocations generally remain very stable, although tactical adjustments may be made from time to time based on financial market conditions. Asset holding periods are very long, with equities kept in the portfolio for an average of seven years and bonds generally held to maturity.
We have always paid close attention to environmental, social, and corporate governance (ESG) criteria, in line with our conviction that the best way of achieving longterm performance is by striking a balance between the three pillars of sustainable development – Planet, Profit, People.
Socially responsible investing consists of selecting the companies with the greatest commitment to sustainable development in each economic segment, and then closely examining their social and environmental policies and governance systems.
An enhanced best-in-class approach There are several different approaches to socially responsible investing. Some investors – particularly British and American firms – exclude companies on the grounds of their business segment or practices (forced labour, corruption). Best-in-class approaches select the companies that obtain the highest scores based on environmental, social-societal and governance criteria.
In light of our broader responsibilities as an insurer, we have chosen to apply the best-in-class approach with some exclusions. We exclude companies whose businesses run contrary to our values, such as anti-personnel mine and cluster-bomb manufacturers, speculative funds that invest in food commodities, and countries whose governments are considered undemocratic or corrupt. These exclusions are also applied by our international subsidiaries, particularly by Caixa Seguros and CNP UniCredit Vita.
ESG screens are now used in managing some 55% of assets, meeting the target we set for 2010. Since 2005, we have taken care to fulfil our obligations as a shareholder by participating in investees’ general meetings. Defined by Group management, our voting policy aims to protect the rights of a minority shareholder who is investing for the long term to support the investee’s development. This policy is applied for all investee companies, although account is also taken of any specific characteristics of the company, its business sector and/or its country. In 2010, we voted at the general meetings of 98% of the French companies in the portfolio, (99.9% by value), and of all the main European companies, representing 119 meetings in all.
We were enthusiastic participants in France’s first “Socially Responsible Investment Week”, held from 4 to 10 October 2010.To mark this event, we distributed to all CNP Trésor insurance advisors the SRI guide published in July by Fédération Bancaire Française. Thanks to the sustained efforts of our partner networks, SRI funds now account for 1.4% of total unit-linked portfolios.
Socially responsible investing benefits policyholders in two ways What makes our SRI strategy unique is the depth of our commitment. We follow a well-established, robust and global approach that reflects our strongly held beliefs. If the strategy had been limited to investing in SRI funds, a mere 0.2% of our assets would have been concerned. Instead, we have chosen to deploy our best-in-class approach to the entire equity portfolio and to gradually apply ESG screens to all assets. These screens are already applied to sovereign bonds and to investment properties managed by Icade and AEW, and sustainable management principles are also applied to our 49,000 hectares of forestry assets, which make CNP Assurances France’s largest private owner of woodland. We are showing this level of determination because we are convinced that integrating ESG criteria helps us to better identify and avoid risks, thereby contributing to our assets’ long-term performance. At the same time, policyholders have the assurance that their capital is invested in a socially responsible manner. This gives meaning to their investments, in line with our values, putting them in a win-win situation.
We have made advances in contract management operational efficiency by investing heavily in developing insurance workstations for our major distribution networks. The objective is to standardize and automate as much as possible in order to improve client service
Two new satisfaction indicators In 2010, two new indicators were introduced to gauge policyholder satisfaction. The first was a survey of CNP Trésor customers, which revealed that 96% of respondents were satisfied with the underwriting procedure and 77% with the surrender procedure. Corrective measures have been undertaken to improve the latter figure. The second was a survey of Caisses d’Epargne customers, revealing that 97% of respondents were satisfied with the underwriting procedure and 90% with the surrender procedure. A gap was detected between actual and perceived quality of service. Whereas the time taken to process surrenders was generally considered too long (perceived as 19 days by customers), in 99% of cases surrenders were actually processed in two to six days. Campaigns will be deployed to ensure that customers are better informed.
By industrialising our management processes and forging closer ties with our partners, we have developed unique expertise in processing very large quantities of data while at the same time offering policyholders a personalised service. Quality standards are set out in service level agreements signed with our distribution partners.
In term creditor insurance, our partners are able to process online applications securely using our extranet portal CNPNet, which cuts transaction processing time by 75%. Most term creditor insurance applications receive an immediate response with this service, while in more complicated cases, decisions are made on a customer-by-customer basis and communicated in less than a week. In 2010, we completed the deployment of CNPNet in the Crédit Agricole network and began its roll out to Mutuelle Générale and other partners.
1,386,554 new applications processed 91,266 transfers between funds 853,154 recurrent single premiums phone inquiries received 84.5% uptime rate 2010 Business Review and Sustainable Development Report > 55
At La Banque Postale, national and regional quality committees hold regular meetings to provide all the teams concerned with a forum for discussing process effectiveness and fluidity.
In April 2009, the CNIL data protection authority granted us access to the INSEE national register of deaths through AGIRA, the organisation set up to assist in the search for insurance beneficiaries. By the end of 2010, a total of 14,669 unclaimed settlements had been reviewed by our teams and 5,000 beneficiary searches had been initiated through qualified investigators, with an 80% success rate.
Because of the Internet, satisfying customers tests our expertise to the limit These days, we receive requests for policyholder assistance through every possible channel, including the post, fax, telephone and, more recently, the Internet. Because of the Internet, policyholders are increasingly well informed. They are more demanding and they ask questions that test our expertise to the limit. Not least because, under the service level agreements with our partners, it’s our job to answer policyholder inquiries via Internet or telephone within 48 hours. As a result, policyholders feel closer to us and no longer hesitate to contact us. They ask a question and get an answer, but that doesn’t stop them from calling back several times in the same day, with a new question every time. Before, customers would send us a letter. Once they got our reply, they were satisfied. Today, their satisfaction depends on us resolving all of their issues immediately. The world is changing and we have to change with it.
There were 971 complaints submitted to the mediation service in 2010, reflecting the growing popularity of this method of conflict resolution in recent years. Policyholders clearly prefer this solution to going through the courts, 0} as shown by the steady fall in the number of outstanding lawsuits in recent years to just 475 in 2010.
By initiating dialogue with the insured, mediation can prevent more contentious situations. As well as explaining the policy terms and clearing up any misunderstandings, the mediator can also sometimes overturn decisions that, while legally justified, can be viewed as excessively harsh. Always open to the possibility of compromise, we totally or partially satisfy our policyholders’ demands in 43% of cases.
A warning procedure triggering an immediate response In 2010, we created a warning procedure in term creditor insurance for situations requiring an immediate response. The procedure is triggered if an insured is faced with an emergency situation such as an urgent financial need, or when immediate action needs to be taken in response to a service failure or any cause for dissatisfaction that could lead to a claim or lawsuit, or the cancellation of a transaction. In such cases, the call centre sends a warning email to the administrative unit concerned, which calls the insured within 24 hours to expedite a solution.
INDIVIDUAL INSURANCE: DYNAMIC NETWORKS CNP Assurances supports its traditional partners, La Banque Postale and the Savings Banks, in developing their savings and personal risk businesses. This support was moved up a gear in 2010.
Premium income generated through the Caisses d’Epargne amounted to €10.5 billion in 2010, up 1.9% on 2009. Unit-linked products accounted for a sharply higher portion of total premiums, representing 14% in 2010 versus 5% in 2009. The increase was attributable to two marketing campaigns offering promotional rates on all traditional savings products with a unit-linked weighting above a certain threshold, and the market launch of six FCP mutual funds in 2010, versus five in 2009.
In term creditor insurance, premium income was significantly higher than in 2009, at €540 million. Strong sales of home loans by the Caisses d’Epargne, which had already met their annual targets by the end of August, will have a visible impact on 2011 premium income.
While expanding the range of products on offer, La Banque Postale maintained high life insurance volumes, following a robust improvement in 2009. No special promotions were needed to boost growth, thanks to the vitality of the network. Its contribution to premium income for the year amounted to €10.6 billion.
La Banque Postale Prévoyance, a joint subsidiary of CNP Assurances and La Banque Postale, crossed the two-million contract threshold in 2009. The business continued to grow in 2010 with premium income rising 10%. The subsidiary having now reached a stage of maturity that requires adjusting its internal organisation, on 28 July 2010, CNP Assurances and La Banque Postale signed an agreement with the company to give it the means to pursue its development with greater autonomy.
We teamed up with La Banque Postale in 2010 to undertake a variety of actions designed to improve the quality of service rendered to policyholders. In October, La Banque Postale created a quality management team at its financial centre in Toulouse to check that insurance applications submitted by advisors are properly completed before being forwarded to CNP Assurances.
The leading provider of group insurance in France, CNP Assurances sells term creditor insurance, pension and employee benefits contracts to more than 200 financial institutions, around a hundred mutual insurance companies, 20,000 local governments and hospitals, 4,500 companies and numerous not-forprofit organisations such as Préfon and Fonpel.
We have a long tradition of partnering the mutual insurance sector, supporting MGEN (the teachers’ mutual insurance company) and other civil service mutuals by managing group policies covering death/disability and long-term care risks, pensions and term creditor insurance, and by reinsuring their health insurance plans.
Since the reform of France’s Mutual Insurance Code in 2002, the mutual insurance market has evolved considerably. Mutual insurers are joining forces and new groups are emerging in response to tougher regulation and more intense competition.
Over more than 60 years, CNP Assurances and certain civil service mutual insurers that are now members of the MFP Services group have built a strong partnership based on the joint development of benefits solutions for civil servants. Since the reform of France’s Mutual Insurance Code in 2002, a growing number of mutual
In this environment, MFP Services and CNP Assurances decided to deepen their ties through a new partnership structure. To this end, in August 2010 CNP Assurances acquired an interest in MFPrévoyance SA, an MFP Services subsidiary.
Its renewal has strengthened our partnership with France’s leading mutual insurer for local government employees, which has 862,000 members and provides health and personal risk cover to over 1 million people.
* MGEFI: Mutuelle Générale de l’Economie, des Finances et de l’Industrie; MCDéf: Mutuelle Civile de la Défense; MMJ: Mutuelle de Ministère de la Justice, MNAM: La Mutuelle Nationale Aviation Marine; MPCDC: Mutuelle du Personnel de la Caisse des Dépôts; MFFOM: Mutuelle Familiale France et Outre Mer.
A new partnership for CNP Caution A wholly-owned subsidiary of CNP Assurances, CNP Caution issues various types of guarantees to our term creditor insurance partners and to civil service mutual insurers. In 2010, CNP Caution pursued its development by setting up a home loan guarantee and term creditor insurance partnership with the French subsidiary of GE Money Bank.
A productive year for the term creditor insurance business 2010 was a good year for the term creditor insurance business. Four new partnerships were set up during the period, with social economy participants Logilia and Procilia; Barclays Bank France, for its private banking clientele; and Crédit Municipal de Marseille, for consumer loans extended to active and retired civil servants, green loans and social micro-loans.
Having demonstrated its effectiveness in France, our business model is now being successfully reproduced internationally. Today, the Group is developing the bancassurance business in southern Europe – mainly in Italy and Spain, but also in Greece and Cyprus since 2009 – Brazil, Argentina and China.
We are deploying a selective international development strategy guided by two main objectives: to enter markets where personal insurance has considerable growth potential and to seek out solidly established partners that already have extensive distribution networks.
Caixa Seguros’s products are distributed by the Caixa Econômica Federal network under an exclusive distribution agreement. The business has benefited from the remarkable economic expansion underway in Brazil since the mid-1990s, that has gradually lifted more of the population into the middle class.
In 2009, CNP Assurances signed an exclusive, 25-year agreement with Barclays to develop a comprehensive range of savings, pensions and personal risk products for sale through Barclay’s networks in Spain, Portugal and Italy.
As part of the agreement, CNP Assurances acquired a 50% interest in Barclay’s life insurance subsidiary Barclays Vida y Pensiones (BVP). BVP already had operations in Spain and Portugal and in January 2010, a branch was created in Italy.
One year down the line, 18 new products have been launched and the CNP-BVP joint venture contributes nearly 10% of the Group’s total international premium income.
In Italy, CNP-BVP launched the innovative Barclays Life Investment Program, a flexible savings product with a unit-linked component that can be adapted to all customer profiles and evolves in line with market trends.
In Cyprus, our joint subsidiary CNP Marfin offers a full range of life and non-life products. The company has maintained its leadership position in the non-life segment mainly on the strength of auto and home insurance sales. In personal insurance, the offer primarily comprises unit-linked life insurance policies and personal risk products. For example, Cypria Money Plus meets the needs of customers seeking a tax efficient product that allows them to invest in hedge funds while also offering term life insurance cover and various other optional forms of cover.
In November 2010, CNP Marfin made the news by launching Cypria Women’s Care, a health insurance product designed exclusively for women that covers six forms of cancer.
After a promising start in 2009, business growth was held back by the onset of the Greek crisis and, a few months later, by its knock-on effects in Cyprus. Marfin Insurance Holdings Ltd nevertheless showed firm resilience, with premium income declining by just 5% in 2010.
At the beginning of 2010, CNP Vita launched UniOpportunità, a new traditional savings product with a unit-linked component. Premiums from this product totalled €281 million in 2010.
Working together to build an employee benefits plan. In August 2009, a large multinational invited us to bid for a contract to manage a pension plan for its several thousand employees in Ireland and the United Kingdom. We decided that a local response would give us the best competitive advantage. I asked Yann Illouz, Chief Executive Officer of our Irish subsidiary CNP Europe Life, if he was up for the challenge. On our end, we were at-the-ready to assist him by sharing the experience and knowledge of our teams, who won a similar contract with another large industrial group two years prior.
At CNP Europe Life, the success of our bid after 10 months of intense negotiations has given us the exciting opportunity to launch an entirely new business line – group pensions (and pension fund management). Among several other factors, it was our proactive determination, the perfectly orchestrated cooperation between the different teams at headquarters (including the Group Pensions, Legal, Risks, Actuary and International departments) and the dedicated involvement of the Executive Committee that truly gave us the edge. By working together as a group, we were able to navigate the project’s numerous constraints – most notably its extremely strict specifications – and ultimately win the contract, despite competition from Europe’s other leading personal insurers. Because the pension funds’ obligations are extremely long-term, ranging from 30 to 50 years, the solidity of our Group and its proven ability to withstand financial turbulence also served as strong arguments in our favour.
SHAREHOLDERS: A RELATIONSHIP BUILT ON MUTUAL TRUST We have built lasting relationships of mutual trust with our shareholders as part of a commitment to providing them with extensive, transparent, easily accessible information.
Over 23% of the capital is in the hands of the public, including institutional investors such as insurance companies and pension funds, individual shareholders and employee shareholders.
Shareholder Guide, the Guide to Shareholders’ Meetings and the corporate brochure, as well as two shareholder newsletters, and have set up two e-mail addresses for individual shareholders (actionnaires@cnp.fr) and institutional investors (infofi@cnp.fr).
Each of our shareholders is important to us, and different systems exist to ensure that all shareholders are treated equally. Shareholders’ Meetings are based on the principle of one share, one vote. In addition to proxy documents, the General Meeting section of www.cnp-finances.fr also provides practical information for holders of both bearer and registered shares on using the proxy/postal voting form and on voting online ahead of the Meeting.
We are committed to ensuring that all shareholders have access to the same quantity of information. To forge closer relationships, we invite individual shareholders to a number of events organised throughout the year in France.
The more than 8,000 members of the Shareholders’ Club have access to additional information and services. They are regularly invited to meetings and conferences (see box) and are entitled to a number of free services, such as help with problems in their daily lives through Filassistance, and health information, through the Carrés Bleus network.
A total of 2,895 employees currently hold registered shares and a further 1,500 employees are shareholders through the corporate mutual fund. The average investment per employee shareholder is €12,600.
Conferences to better understand insurance Since its founding in 2000, the Shareholders’ Club has also played an educational role. Conferences are organised to help shareholders expand their knowledge of the economy and the stock market and improve their understanding of insurance. Organised by outside partners, these conferences are backed by online quizzes and simulation tools, and publications. The 2011 series of conferences are designed to deepen participants’ understanding of insurance, as investors in insurance companies or as simple holders of life insurance policies.
At CNP Assurances, we’re committed to accompanying employees as far as possible along their career paths. That’s why the training budget represents a full 5.2% of the payroll and opportunities for job mobility are actively promoted.
At CNP Assurances, diversity is perceived as an asset and an enhancer of social, personal and business performance. It has been a pillar of our human resources strategy since 1995, when we first committed to hiring the handicapped.
In 2009, we introduced a 50+ plan with the goal of improving working conditions for older employees and easing the transition from work to retirement with the introduction of special late-career interviews.
This hotline is designed to help them deal with situations that might threaten their work-life balance. In the event of stress, family or work-related problems, Filassistance puts the employee in contact with its counselling service, whose staff is comprised of clinical psychologists, doctors and social workers.
A company must reflect the society around it. Our human resources policy strongly supports two main priorities, which are to promote diversity and help employees advance as far as possible along their career paths. Increasing diversity has been a top priority of our human resources policy for many years. We see diversity as an asset, a source of strength, especially in customer relations. A company must reflect the diversity of the society around it in order to understand that society’s needs. From this standpoint, 2010 represented an important new phase. In terms of hiring the disabled, we signed a fourth agreement that set new objectives, building on the significant progress made in 2010. We also pursued our gender parity initiatives. There are now more women managers (864, representing 28.2% of the total workforce) than men (848 or 27.6%). Of CNP Assurances’ 50 senior executives, 14 are women. In addition, there are now three women on the Executive Committee. These advances are the result of an assertive gender parity policy that we’ve been pursuing since signing our first equal opportunity agreement in 2005. At the same time, we’re committed to helping our employees advance as far as possible along their career paths through training programmes, some of which lead to skills certification. That’s the key to CNP Assurances’ growth and vitality. Promoting job mobility will enable us to more effectively embrace and support the changes that are reshaping our world and the insurance industry. We’re planning to implement career development programmes for each job category. That will be our most important project over the next three years.
Madeleine Vallier, 87 years old, & Julien, 23 years old you
In 2010, it provided financing for two research studies - the first (proposed by France’s cystic fibrosis foundation ) on acute and chronic pain following a lung transplant and the second to assess the effectiveness of botulinum toxin in treating neuropathic pain.
The Foundation also finances educational materials to inform families and care providers. This year it helped to provide a DVD showing ways to divert children’s attention during painful or intimidating medical procedures and a training film on the use of PCA morphine pumps for treating acute pain in adult or elderly patients. Produced by France’s National Resource Centre for Pain Management (CNRD), the film is intended to promote the use of these pumps, which allow patients to control their own analgesic intake.
In two years, the Foundation has provided €802,000 in subsidies to deploy 1,500 defibrillators and train users in 878 local communities.
A summer beach tour was also organised, with workshops to teach vacationers first aid techniques, such as cardiac massage and the use of defibrillators. The tour visited 15 cities, reaching more than 17,000 people, and the website received over 15,000 visitors.
At the 6th BFM Awards ceremony on 15 November 2010, CNP Assurances was presented with the association ’s prize in recognition of the Foundation’s contributions.
The film received the Grand Prize at the 2010 Medical Film Awards held during the Entretiens de Bichat medical convention.
Caixa Seguros combats youth violence Violence and the use of weapons are too often given as the cause of death for young Brazilians. Caixa Seguros is helping to combat violence by showing youths that there are other ways to express themselves. Several years ago, the Group founded a programme called Jovem de Expressao, which organizes therapeutic workshops for young people. Its effectiveness was recently confirmed by the results of a survey, which showed that, thanks to the programme, 300 troubled young people aged 18 to 24 who were headed towards a spiral of violence had managed to turn their lives around. In 2010, the United Nations Office on Drugs and Crime agreed to co-sponsor Jovem de Expressao alongside Caixa Seguros. At the same time, as the first insurance company to offset carbon emissions at its headquarters by planting trees on the Atlantic coastline, Caixa Seguros in recent years has become a committed partner to sustainable development initiatives in Brazil.
The analysis was carried out from July to October with the assistance of Ecoact, a sustainable development consulting company. It received the full support of experts within the organisation who gathered the necessary data within very tight time frames. The exercise also provided an opportunity to raise awareness of the issues among employees and to remind them that everyone has a role to play in reducing greenhouse gas emissions.
rather than plane when feasible and increasing the length of time company cars are kept, which significantly reduces emissions over their full life cycle. With equipment installed in three new rooms at Company headquarters in 2010, videoconferencing is increasingly widely used, with the number of hours rising by 63% year-on-year to 9,034, compared with a 32% increase in 2009.
CNP ASSURANCES CARBON FOOTPRINT Lessons learned from the carbon footprint analysis Based on the 2009 carbon footprint analysis, direct and indirect emissions from the Company’s main sites in France (offices and staff restaurants for 89% of employees) totalled 22,000 tonnes of carbon dioxide equivalent. Thanks to the location of CNP Assurances’s offices, 80% of employees use public transport to travel to and from work. The Company’s average consumption ratio (excluding the data centre) totalled 444 kWh of primary energy per square metre per year, less than the average for office buildings in France.
Barclays Vida y Pensiones Compañia de Seguros au Portugal et CNP Barclays Vida y pensiones Compañia de Seguros en Italie
65% of assets managed according to environment, social and governance (ESG) criteria -3% reduction in CO2 emissions per employee between 2009 and 2011
Employees and employee representatives 3,068 CNP Assurances employees and 82 Filassistance and Âge d’Or employees 100 employees 745 employees 144 employees 68 employees 61 employees 7 employees 38 367 employees
• 7.1 million savings contracts • 696,000 personal risk contracts • 5.9 million term creditor insurance contracts • 272,000 Consorcio contracts • 431,000 auto and home-owners insurance policies 1 million contracts • 1,852,569 insureds under group policies
• 3,400 insureds under group contracts 340,000 individual life insurance policyholders
• Adjusted net asset value (ANAV) The value of assets attributable to shareholders after deducting intangible assets, subordinated debt and other items included in the value of in-force business.
• Attributable recurring profit Recurring profit attributable to equity holders before fair value adjustments and non-recurring items. Attributable recurring profit includes capital gains realised over the period.
• Basel III New banking rules proposed by the Basel Committee on Banking Supervision for implementation before the end of 2012. Their purpose is to strengthen: i) the global capital framework, by raising the level and quality of minimum capital requirements and; ii) the global liquidity framework, by supporting access to financing on the markets.
• Term creditor insurance Insurance policy whereby an insurer commits to making loan repayments on behalf of the insured following the occurrence of an insured risk.
• Embedded value (EV) Adjusted NAV + value of in-force business. Adjusted NAV and value of in-force business provide an indication of the present value of future profits expected to be derived from the insurance book, while the new business value provides an indication of the value of business written during the year. These indicators for CNP Assurances are determined using the market consistent approach. The calculations comply with European Insurance CFO Forum Market Consistent Embedded Value Principles (MCEV©)1 except in the case of Caixa Seguros, for which a traditional method is used.
• Endowment policy A life insurance contract designed to pay a lump sum (guaranteed minimum yield) to designated beneficiaries after a specified term or on earlier death. It includes the option to surrender at any time, a capital guarantee on non-unit-linked funds and policyholder dividends and a guarantee on the number of units in unit-linked funds.
• Guaranteed rate contracts Life insurance contracts under which the insurer guarantees the payment of a certain minimum yield over a specified period.
• Individual insurance Class of personal insurance allowing an individual to take out insurance cover (endowment, whole life) with an insurance company.
• Life annuity A guaranteed stream of payments to the insured until his/her death (and subsequently to any designated beneficiary if the contract includes a reversion clause).
• New business (value of) Discounted present value of future earnings streams from business written during the year less the cost of the capital needed to comply with solvency margin requirements.
• PERP (Plan d’Épargne Retraite Populaire) Personal pension plan introduced in the Pensions Reform Act (“Fillon Act”) of 21 August 2003, open to everyone. Tax-advantaged pure annuity product with no surrender option. A PERP layer may now also be added to “Article 83” group pension plans. These two-layer plans are known as PERE (Plan d’Épargne Retraite en Entreprise). Under the 2010 Pensions Reform Act, savers have the option of receiving a lump sum on retirement.
• Realisable value The market value of investments (for example, the latest stock market price in the case of listed securities).
Insurance policy for which the surrender value and benefit payments are expressed as either a cash amount or in units. The policyholder generally has the choice between investing premiums in a traditional savings or a unit-linked fund. Some policies allow policyholders to shift their capital from one fund to the other during the life of the policy.
• Unrealised gain or loss The positive or negative difference between the market value of an asset and its carrying value in the balance sheet.
Western region head office (Brittany, Lower and Upper Normandy, Central France, Loire Valley) 1, place François-Mitterrand BP 60804 49008 Angers Cedex 01
• Rouen Immeuble Hastings Rue du 74e Régiment-d’Infanterie 76107 Rouen Cedex
• Agen Résidence Fallières 17, rue de la Pépinière 47000 Agen
• Eastern Paris Heron Building 66, avenue du Maine 75014 Paris
Northeast region head office (Alsace, Champagne-Ardenne, Lorraine, Nord-Pas-de-Calais) 16, rue de la Ravinelle 54000 Nancy
Regional offices • Marseille Les Docks Atrium 10.5 10, place de la Joliette 13567 Marseille Cedex 2
• Nice Les Docks Atrium 10.5 10, place de la Joliette 13567 Marseille Cedex 2
• CNP UniCredit Vita (subsidiary) Piazza Durante 11 20131 Milano Italy www.cnpunicreditvita.it
• CNP Italia (branch) Via Dante, 14 20121 Milano Italy www.cnpitalia.it
• CNP Vida de Seguros y Reaseguros Calle Ochandiano 10, Planta 2a El Plantio 28023 Madrid Spain www.cnpvida.es
• CNP Barclays Vida y Pensiones Calle Ochandiano 16, Planta 1 El Plantio 28023 Madrid Spain www.cnpbvp.es
• CNP Assurances Compañia de Seguros M.T. de Alvear 1541 (C1060AAC) 1001 Buenos Aires Argentina www.cnp.com.ar
• Sino French Life Insurance Company (subsidiary) Hua Bin International Building 1206 8 Yongandongli, Jianguomenwaidajie Beijing 100022 P.R. China www.sfli.com.cn
• CNP Assurances Beijing Representative Office Hua Bin International Building 2101 8 Yongandongli, Jianguomenwaidajie Beijing 100022 P.R. China www.cnp.com.cn
• CNP Marfin Insurance Holdings 64, Arch.Makarios III Ave & 1 Karpenisiou Str. 1077 Nicosia Cyprus
54 Policyholder services: focusing on quality 58 Individual insurance: dynamic networks 60 Group insurance: maintaining solid partnerships 62 International markets: a shared growth dynamic 64 Shareholders: a relationship built on mutual trust 66 Employees: mobility, Diversity, and a healthy worklife balance 68 A commitment to community outreach 70 Reducing our carbon footprint 72 CNP Assurances Group stakeholders 74 Glossary 78 CNP Assurances offices 80 Sustainable development indicators (on CDrom or at www.cnp.fr)
On-line information at WWW.cnp.fr Visit the CNP Assurances website to learn more about our subsidiaries and businesses, read the latest news and discover our advertising campaigns.
Financial information at www.cnp-finances.fr This website has dedicated sections for private shareholders and investors and analysts.
Spaces dedicated to shareholders Website: www.cnp-lecercle.fr Toll-free number (in France): 0 800 544 544
B us in es s r ev ie w a nd su st ai na bl e de ve lo pm en t r ep or t CNP Assurances is a société anonyme (public limited company) incorporated in France with fully paid-up share capital of €594,151,292. Registered office: 4, place Raoul Dautry, 75716 Paris Cedex 15 Registration number: 341 737 062 RCS Paris Governed by the French Insurance Code Website: www.cnp.fr