Registered office: 4, place Raoul Dautry 75716 Paris Cedex 15 Registration number: 341 737 062 Paris Governed by the French Insurance Code
An open model for Europe26-31 For an attractive enterprise54-57 With our partners, contributing to the social safety net32-37
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A market leader in France at the heart of a wealthy and mature
largest insurer in Brazil 5th like-for-like growth in net insurance revenue in Latin America.
Dublin employees personal insurer in France largest life insurer in Europe average technical reserves in 2013(1)
on the subject of strategic priorities, where do you stand with your two main distribution partners? Jean-Paul Faugère - For the Board of Directors, a core strategic priority is to build stronger ties with La Banque Postale, on the one hand, and with the BPCE group, on the other. our distribution agreements with these two partners will come up for renewal on 31 December 2015, at the same time as the shareholders’ agreement between them, the Caisse des Dépôts and the French State. Each partner has different needs and expectations, and we intend to find the best way of creating value with each one over the medium to long term. Frédéric can count on the Board’s determined support to move forward in this direction. Frédéric Lavenir - the bancassurance partnership model has a promising future. It’s up to us to demonstrate, during the upcoming discussions with our major banking partners about the post-2015 era, that we are capable of refreshing this model in line with our strategic priorities, particularly that of expanding in the segments which offer the greatest scope for creating value. this is what we’re working on.
What’s your growth outlook in Europe? Jean-Paul Faugère - there are two fairly different aspects. First, we have our banking partnerships, notably in Italy and
the group’s ability to carve out a niche for itself in these highly competitive segments, by leveraging its strengths and its solid French base.
The Brazilian market is going from strength to strength. What are your key initiatives to meet the population’s emerging needs? Frédéric Lavenir - the Brazilian market is indeed extremely dynamic, our banking partnership with Caixa is working very well and we have a very efficient local platform. We are fully confident in the market’s long- term potential and in our ability to sustain the current pace of profitable and capital- efficient growth. As well as offering insurance solutions for Brazil’s rapidly growing middle class, we have developed a micro-insurance offer to meet the needs of the 105 million Brazilians on low incomes. to capture the market’s outstanding growth potential, we are diversifying our distribution channels. the acquisition of
“As our customers face up to the many changes and uncertainties affecting their lives, more than ever CNP Assurances is there, insuring all their futures.”
Previsul has enabled us to start distributing our products through brokers, and we have also invested in on-line distribution, achieving impressive growth.
In the area of corporate social responsibility, the Group is being counted on to help finance the French economy. What is your role? Jean-Paul Faugère - All insurance companies naturally have a duty to help finance the economy. this is even more true for CNP Assurances, due to our deep public sector roots which are a source of pride for our employees. our investments in French companies, particularly SMEs and mid-tier companies, as well as in infrastructure projects and in real estate, illustrate our sustained commitment to supporting the real economy. Frédéric Lavenir - to give you an idea of the level of our commitment, we have g R o u P
(oRSA) in the format specified in the Solvency II directive, leading me and my fellow directors to become more involved than ever in managing risks. Because, notwithstanding our aim of earning healthy yields and offering policyholders competitive rates, our first duty is to be the benchmark in long-term financial security as we have been throughout our group’s history. Frédéric Lavenir - our new organisation aligned with our strategic ambitions has been up and running since the start of the year. We will be among the first insurers to launch the new “euro-croissance” contract for distribution by our banking partners and will seize the opportunities offered by the “ANI” agreement designed to ensure that all employees are covered by private health insurance. We’ll also be alert to opportunities in Europe and, of course, in Brazil. our group is on the move. As our customers face up to the many changes and uncertainties affecting their lives, more than ever CNP Assurances is there, insuring all their futures.
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• Virginie Chapron du Jeu, Director in charge of Investments and Accounting – Pensions and Solidarity Division, Caisse des Dépôts et Consignations
• Franck Silvent, Director of the Finance, Strategy, Subsidiaries and International Division of Caisse des Dépôts group
MEMBERS oF THE BoARd oF dIRECToRS ANd THE CoMMITTEES oF THE BoARd as of 31 December 2013
• Philippe Wahl, Chairman and Chief Executive officer of La Poste
• Philippe Baumlin, representing employee shareholders, Chairman of the Supervisory Board of the "Actions CNP" corporate mutual fund
• Rose-Marie Van Lerberghe(2)(3), Chairman of the Board of Directors of the Institut Pasteur iN 2013, CNP AssurANCes exPANded its exeCutive
understanding of the company’s strategy, business model and governance system, financial and actuarial analysis skills and knowledge of the regulatory environment.
operational management the Chief Executive officer implements the strategy decided by the Board and has the broadest powers to act in the name of the CNP Assurances group. He is assisted by an Executive Committee made up of twelve members representing the group’s strategic functions: partnerships, policyholder services, finance, risk management, information systems and human resources. In its role as coordinator, the Executive Committee deals with all issues that extend across departmental boundaries. At least one member of the Executive Committee sits on the boards of the main subsidiaries in France, and CNP Assurances appoints at least half of the members of the boards of international subsidiaries, guaranteeing consistent strategic management across the group.
CNP ASSURANCES oWNERSHIP STRUCTURE as of 31 December 2013 * Holding company for La Banque Postale and BPCE’s interests.
• Jacques Hornez, member of the Board of Directors of Mutuelle générale de l'Education Nationale (MgEN)
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Leader in France at the heart of a wealthy and mature European market. A strong position in Brazil, in a fastgrowing South American market
* Personal risk, health, term creditor and property & casualty insurance.
NET INSURANCE REVENUE In France, the 2.4% growth in net insurance revenue reflected improvements in the product mix and underwriting margins. In Latin America, net insurance revenue rose 7.3% as reported (22.3% like-for-like), with all business segments contributing to the increase. In Europe excluding France, net insurance revenue contracted by 22.7% due to further derisking in Spain and other markets, the effects of the Cypriot crisis and the decline in Savings technical reserves in Italy.
* With a scrip payment option ** to be submitted for shareholder approval at the Annual general Meeting of 6 May 2014.
sidiaries) managed according to ESg criteria: 80% at 31 December 2013. - Investments (CNP Assurances) in SRI funds: €2.3 billion. - Forests: 546,299 teqCo carbon sink.
Adapting our offering for diverse needs - 200,000 micro-insurance policies written by the group. - term creditor insurance rejection rate: 0.2%. - Number of unit-linked contracts incorporating SRI funds: 85,000, up 13% over 2012.
Reducing our environmental footprint - greenhouse gas emissions per employee (CNP Assurance, internal operations), down 1.2% compared with 2012. - Paper use reduced by more than 56% over five years (comparable scope, inter-
CNP Assurances in SRI indices the CNP Assurances share is included in several European SRI indices. In particular, its presence in the Ethibel Excellence Europe Sustainability Index and the Nyse Euronext Vigéo –Eurozone 120 has been confirmed.
Corporate Social Responsibility report CNP Assurances’s 2013 Corporate Social Responsibility Report can be downloaded from the Company’s website www.cnp.fr. Printed copies are available on request from the Company’s head office.
A diversified shareholder base CNP Assurances enjoys the backing of a core group of four major shareholders (Caisse des Dépôts et Consignations, the French State and La Banque Postale and groupe BPCE through their joint holding company Sopassure) united by a shareholders’ agreement. the group has some 140,000 individual shareholders and 0.29% of the capital is held by employees.
A transparent information policy CNP Assurances is committed to providing the financial community with compre-
Four strategic goals b u s i n e s s
Caisses D’epargne, in orDer to proteCt many more generations of frenCh families.
Caring for French policyholders’ needs with our bancassurance partners distribution pArtnErs And shArEhoLdErs
La banque Postale and Caisses d’epargne (bPCe) distribute CnP Assurances’s insurance products.
36.3% of cnp Assurances’s capital held by the two partner networks shArEd vALuEs
The two partners reinvested their last two years’ dividends in CnP Assurances shares.
versus 9% in 2012. it was the same picture at La banque Postale, where wealth planning products accounted for 54% of pension savings business and the unit-linked weighting rose to 7.3% from 5% in 2012.
strong performances in all segments in individual personal risk insurance, premium income generated by La banque Postale Prévoyance rose by 8.4%. Accident insurance premiums were up by a strong 24%, led by a 57% jump in sales of Prévialys on the back of attractive promotional offers. Personal risk premium income generated by the Caisses d’epargne grew by 19%, reflecting strong demand for the funeral insurance offer which accounts for 70% of premiums in this segment, and the vibrant performance by the Garantie Famille contract. notwithstanding far-reaching changes in the legal and regulatory environment, term creditor insurance premiums generated by the Caisses d’epargne increased by 8% to €724 million. La banque Postale’s lending
The two partner networks’ performance in 2013 reflected the change in CnP Assurances’s business model and the shift in focus from volumes to quality at a time when customers were looking to diversify their investments.
business recovered momentum, driving a 5.5% increase in term creditor insurance premiums to €175 million.
partnering La banque postale’s move upmarket The financial crises of recent years and the collapse of major banking institutions have encouraged private banking customers to look elsewhere and many of them are now choosing financial partners for their solidity and reliability. With its history and values, CnP Assurances fits this profile and our investment in high-end products will give us a competitive advantage. We have put together a team of actuaries, lawyers, unit-linked specialists, wealth planners, back and middle office experts to lead the development of the new product line-up. We are also gearing up to provide the excellent service that high net worth customers expect and that our partners need to offer in order to succeed in this market segment.
Bancassurance partnerships, a model for the future in 2013, Cnp assuranCes foCuseD on forging
equally innovative, the Prévoyance du Locataire contract allows tenants to obtain insurance covering the payment of their rent if they become unfit for work or lose their job. Adopted by some 10,000 customers in the space of less than six months, the product was awarded the Actif de bronze prize by Agefi magazine in 2013.
the pace of innovation is accelerating Certain practical initiatives will be undertaken in 2014 to support our strategic goal of developing and refreshing the bancassurance partnership model. These include launching new high-end savings products with La banque Postale, implementing a joint marketing offensive with the Caisses d’epargne to promote the professional and corporate offers, and offering a more abundant choice of unit-linked funds with the life insurance contracts sold by the two partner networks. Provided that the relevant official texts are published as planned before the summer, a “euro-croissance” new generation life insurance product will be delivered to these networks in 2014. The regulatory framework has not been finally decided, with the result that it’s not yet possible to finalise the product’s commercial features. Despite this uncertainty, we set to work in order to be able to launch this very promising product as soon as the green light was given.
high quality volume processing At the end of 2013, the 800 members of the CnP Assurances policyholder services team were managing 224 different products and 15.5 million life insurance and individual personal risk contracts. A key means of communicating with policyholders, the annual and half-yearly policy statements require the deployment of considerable resources, particularly as the information to be provided on the statements changes nearly every year as new regulations are introduced. The process is carefully planned and closely managed to limit the operational risks and the costs. Quality certifications help to ensure that the system is secure. The introduction of electronic statements in 2011 has been a promising development because it has helped to improve the service offered to policyholders and partners. in 2013, a total of 18 million policyholder statements were sent out, including 5.2 million by e-mail.
The “euro-croissance” contract does not offer any specific tax benefits, its attraction lies in its technical characteristics. The contract responds to consumers’ growing awareness of the need to build up savings over the long term, while also meeting the need for investment in the real economy. We are developing our “euro-croissance” offer jointly with our two partner networks, with a firm commitment to making the product a success.
two ApproAchEs to monitoring customEr sAtisFAction the periodic surveys conducted by Cnp assurances group entities seek the opinions of both policyholders and the distribution partners, to obtain a comprehensive vision of customer satisfaction. in 2013, four satisfaction surveys were conducted on policy administration processes. frequently organised as part of the quality certification process or pursuant to service level agreements, these surveys help to improve our responsiveness to customers. the responses are analysed and the results are communicated to the distribution partners. the satisfaction rate improved in 2013 to 84% among beneficiaries who purchased their policy from la Banque postale or Caisses d’epargne.
no. 1 the lowest cost life insurer in Europe based on the hsBC European insurance Cost-cutting Calculator survey, 5th edition, october 2013 first prizes Nuances Privilège and Cachemire, two traditional life insurance contracts with a unit-linked formula developed by CnP assurances and distributed by the Caisses d’Epargne and La Banque Postale respectively, each won first prize at the awards organised by Le revenu magazine in early 2014.
italy €2.5bn CnP UniCredit vita, CnP italia**, CnP BvP italy spain €263m CnP vida, Cis, CnP BvP spain, CnP España**
portugal €83m CnP BvP Portugal other (non-recurring) €500m ** Branch €3.5bn in premium income generated in Europe excluding France, employees in europe excluding France million inhabitants whose needs for protection and long-term security are as great as ever joint vEnturEs
• CnP uniCredit Vita with the uniCredit banking group in italy, around 4,000 branches
• CnP barclays Vida y Pensiones (bVP) with barclays bank in spain, italy and Portugal, around 1,000 branches
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in italy, for example, we have teamed up with the unicredit banking group, which has 4,000 branches across the country and over 8 million customers. Our joint subsidiary, CnP uniCredit Vita, has over 150 employees and ranks among italy’s top ten personal insurers with 3.1% of the market at end-2013. While unit-linked contracts and other savings products account for the bulk of the business, the subsidiary is now expanding its personal risk offer to meet growing demand for protection
“our leadership position in term creditor insurance in france and our advances in full on-line underwriting encourage us to expand in europe.”
Convinced that servicing capability will be a key differentiating factor in the insurance market of the future, we have chosen to offer insurers the opportunity to outsource all or part of their value chain in order to focus on their core business of managing risks and creating products. Operated by our new subsidiary named CnP insurance services (Cis), the plat form manages Group projects with CnP bVP and CnP Vida becoming its first customers.
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partner financial institutions in France for the term creditor insurance business and over 20 banking partners in italy, including UniCredit and Barclays in 2013, premium income from term creditor insurance business rose by 5.4%. cnp Assurances confirmed its market leadership in this segment in France. in an environment shaped by low interest rates but with no recovery in the housing market, activity in the home loan market was generated mainly by home-owners changing mortgage provider or renegotiating their loan.
term creditor insurance in France, the testing ground for the open model The term creditor business’s growth dynamic was supported by the major partner networks. The Caisses d’epargne confirmed their success in this segment, reporting term creditor insurance sales up 8.6%, and La banque Postale enjoyed renewed momentum, with growth of 5.4%.
the expertise and experience to understand customers’ needs Our leadership of the French term creditor insurance market, with over 12 million borrowers insured, and our many decades of experience have helped us to forge an unrivalled understanding of French policyholders, their behaviour, their state of health and the associated risks. Over the years, we have refined our data and analysis systems, as well as developing proprietary risk assessment rules covering the occurrence of insured events and the risks of everyday life. This expertise enables us to expertise to win over european policyholders from the electronic signature of the insurance application and medical questionnaire to the on-line processing of claims, Cnp assurances now offers end-to-end paperless term creditor insurance. this full on-line service makes life easier for borrowers and for their account managers in the distribution networks. it also establishes a lasting difference between Cnp assurances’s service and that of its competitors. on 1 january 2014, the first Cnp assurances full on-line term creditor insurance contract was electronically signed on the Boursorama Banque portal. Boursorama Banque, a subsidiary of société générale, distributes its products thanks to our platforms in europe, we have extended our knowledge to other markets and to other cultures and economic environments.
AvErAgE LiFE ExpEctAncy of an employee currently aged 50 cnp Assurances’s stake in inter Expansion-Fongepar, the entity set up in 2013 with Humanis, France’s leading employee benefits institution, which owns the other 65%. by merging their employee savings subsidiaries, the two groups have created a major player in this market.
CnP Assurances, a member of the Caisse des Dépôts group, in the vanguard of social protection.
devoted to partnering mutual insurers and employee benefits institutions, as insurer, co-insurer or reinsurer 82 years Total life expectancy 67 years healthy life expectancy
The challenge for us all: prepare our retirement and enjoy it in good health
Years companies have chosen CnP Assurances to manage their employee welfare plans in average technical reserves* * Excluding the deferred participation reserve no.3 in group pEnsion sAvings pLAns with b u s i n e s s
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A turning point in social protection The ageing population, different work models and emerging vulnerabilities are creating new needs for protection, prevention and support. At the same time, pensions reform, economic recession and the necessary adaptation of the social security system are overturning previous perceptions of compulsory insurance and its role in pooling risks. The “Ani” agreement providing for all employees to be covered by supplementary
A growing need for security CnP Assurances covers all of life’s everyday risks with products such as health, accident, death and long-term care insurance. in France, these products are sold to individual policyholders by our two major distribution partners and by our own CnP Trésor network, while group contracts are distributed to companies, local authorities and hospitals by partner mutual insurers, employee benefits institutions and brokers. in 2013, the personal risk-protection business confirmed its vitality, reporting 3.4% growth in premium income and a resounding improvement in new business margin. Premium income generated by La banque Postale in this segment remained more or less stable, with a sharp rise in sales of Prévialys accident insurance. The Caisses d’epargne network enjoyed another year of record growth, delivering a 19% increase in personal risk-protection premium income, led by sales of funeral insurance. Lastly, the CnP Trésor network reported a 28%
health insurance as from 1 January 2016 will reshape the insurance landscape, by taking more than 5 million employees of micro-enterprises and self-employed workers out of individual health insurance and into group insurance plans. These changes serve as an encouragement to take a fresh look at our business. We need to go from being an insurer who is present when things go wrong to become a partner supporting our insureds’ well-being throughout their lives. since the beginning of the year, our competencies in the areas of health insurance, personal risk insurance, pensions and long-term care have been brought together in a new “social protection and services” operating unit that is setting to work promoting and deploying an innovative offer for the social protection market in France.
Cnp assuranCes is reaffirming its DistinCtive qualities anD its Commitments as franCe’s leaDing personal insurer.
* absenteeism, incapacity, disability, supplementary health insurance source: CnP assurances research
according to france’ national statistics institute, insee, there were 15.4 million people aged 60 and over in 2013. this compares with 1.7 million long-term care policies in force in 2011 according to the insurance industry federation, ffsa. the penetration rate has remained stuck at around 10% of the over-60 population because current long-term care products are poorly aligned with users’ needs. as a trail-blazer in long-term care insurance, we have undertaken to approach this risk differently. the aim is to make long-term care insurance an affordable product rather than a luxury. the first step is to determine the price point that most people would view as affordable and then to define the best content for this price. simulations are being performed to compare individual and group insurance options, to determine how the premium should be split between the cost of services and the insurance risk, and to measure the effect of purchasing the contract at different ages. these simulations have already convinced us that a core service offer would help to prevent the occurrence of risks and guarantee better support. usable from the date when the contract is purchased, these basic services will help service providers to build ties with insureds, and thus help them to continue living in their own home for as long as possible.
We are now planning to make this expertise available to companies, particularly sMes and micro-enterprises.
As the partner of some one hundred mutual insurers, including companies specialised in insuring public sector employees, managers of multi-employer plans and insurers for the professions, we intend to provide support and generally offer a new take on social protection. The late-2013 creation of a new employee savings plan specialist with the Humanis Group is a step in this direction. This promising alliance attests to our commitment to strengthening our ties with employee benefits institutions and addressing the emerging needs of employees in France and europe.
specialised in home care. A new on-call night care offer is being developed to help vulnerable people to continue living at home, and a transportation service is being trialled to improve mobility and prevent social isolation. The carrés bleus health information platform has developed a system for the analysis of optical, dental and hearing aid quotes that helps insureds to avoid overpaying for these services. We are constantly enhancing our range of protections and related services to help people live independently for longer. We are now planning to put the quality of our longterm care solutions to the test by seeking FFsA accreditation for these offers.
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• offer products aligned with the budgets of the 105 million brazilians with low incomes
A strong growth dynamic in Latin America strengthening the group’s position in Brazil anD looking out for growth opportunities in latin ameriCa are important strategiC goals.
1995 cnp Assurances opens its first Latin American subsidiary, in buenos Aires, Argentina – CnP Assurances Compañia de seguros – in partnership with banco Credicoop.
premium income in Latin America rose by 4.9% in 2013. excluding the negative currency effect, underlying growth was 19.3%, led by vibrant conditions in all business segments in brazil.
miLLion potential micro-insurance customers 9th duration of the exclusive distribution agreement with Caixa econômica Federal.
share of the micro-insurance market growth in on-line sales in 2013
A solid base The brazilian subsidiary designs and markets products that cover personal risks, including risks involving personal assets, as well as savings products that, in some cases, include a random draw feature. The savings and pensions business is the biggest contributor to the subsidiary ’s premium income. Caixa seguros is the unchallenged leader in term creditor insurance, providing cover for 2.5 million brazilian home-buyers. its consórcios products represent an original solution for financing the purchase of a home or car that allows groups of savers to pool their savings and lend money to each other over set time-periods so they can each borrow at below-market rates. The borrowers are determined by random draw. Lastly, Caixa seguros also offers auto insurance and markets, economic growth fuels an increase in insurance needs, but under the brazilian model, the increase has been far greater and has taken place faster than in other countries. This is because growth in the economy has opened the floodgates to social mobility, with the middle class growing at a rate and in proportions that make brazil a very promising market. Out of brazil’s population of some 200 million, 29 million are now members of the middle or upper class and are in the market for traditional insurance products, while 105 million brazilians are new entrants in the monetary economy with low incomes. Helped by the very high level of social mobility, these populations will soon also join the middle class and the traditional insurance market. For Caixa seguros, penetrating this pool of future insurance customers will help to guarantee its place among brazil’s major insurance companies for a long time to come.
caixa seguros’s decisive strengths in brazil, the CnP Assurances model shows its full worth. The products are closely aligned with demand. Having a supplementary health plan is the dream of comprehensive home-owners insurance. in 2010, priority was given to developing the personal risk and employee benefits business. Three years later, 106,351 companies had purchased the flagship Vida Empresarial product. in funeral insurance, a total of 219,512 Amparo contracts designed for the lowest income families have been sold in the space of two years. in 2012, Caixa seguros entered the promising health and dental insurance market, and by the end of 2013, Caixa seguros saúde had 58,276 insureds under group contracts purchased by 348 companies attracted by the company’s dedicated expert platform.
“Caixa seguros was the first insurance company in Brazil to sell simple and affordable products.”
Caixa Seguros, the winning model Cnp assuranCes’s reCipe for Capturing the Brazilian market’s exCeptional vitality –
Develop a range of useful anD afforDaBle proDuCts anD DistriBute them through all imaginaBle Channels all brazilians, second only to owning their own home, while just 10% of brazilians have dental insurance, leaving a huge untapped market. Leveraging its ability to pool risks and its expertise in risk management, the Group is able to offer affordable products for all. it only takes a few reals a month to purchase protection insurance or a savings contract. but Caixa seguros’s core strength lies in its powerful distribution capabilities in all segments of the market. The exclusive distribution agreement with historical partner Caixa econômica Federal that runs until 2021 provides access to a network of 3,000 bank branches and 12,500 lottery sales outlets located throughout the country, particularly in the favelas. And the agreement also enables Caixa seguros to capitalise on Caixa’s popularity. As brazil’s second largest state-owned bank, Caixa is responsible for distributing financing that is central to brazilians’ lives. it pays family allowances, manages unemployment insurance payments and helps brazilians to fulfil their number one dream by financing around 75% of home purchases. All of these activities raise Caixa seguros’s profile and build its image as a caring insurer among people with low incomes who purchase insurance without ever having a bank account.
Alternative and multi-channel distribution in a highly concentrated sector – the top three insurers together hold 55% of the market – Caixa seguros continued to capture market share in 2013. Distribution channels are being diversified to amplify the benefits of a winning business model. The acquisition of Previsul supports this strategy. This personal insurance company has been operating in southern brazil for over 100 years, particularly in Rio Grande do sul state where it has some 600,000 policyholders. The acquisition deepens the Group’s coverage of a market represented by 24 million inhabitants and opens up a new distribution channel in the shape of some 3,000 partner brokers. Recognising that people in brazil view insurance as a consumer product like any other, Caixa seguros is moving into mass-market distribution channels. The lottery ticket sales outlets place its insurmonths, and the opportunity to participate in a monthly random draw to receive an additional allowance of bRL 20,000 to bRL 60,000. With its 95% market share, Caixa seguros has a considerable head start in this business, which is both highly promising and socially useful.
cultivating partnership in Argentina CnP Assurances Compañia de seguros, the Group’s oldest subsidiary outside France, is one of Argentina’s leading providers of term creditor insurance and personal risk insurance. in 2013, it had premium income of €55.5 million, up 5% including the currency effect but 30% higher in local currency. The signature of agreements with two new distribution networks has given added impetus to sales and extends the subsidiary’s portfolio of partnerships.
recognising that people in Brazil view insurance as a consumer product like any other, Caixa seguros is moving into mass-market distribution channels.
cooperatives, mutual insurers and non- profits. The company has also launched a telesales activity. This open model has helped the Argentine subsidiary to build a franchise of some 3 million policyholders.
Looking to the future in Latin America Caixa seguros will focus primarily on organic growth, giving priority to supporting the ambitions of Caixa, which is playing a growing socio-economic role in brazil. More generally, the Group’s objectives are to diversify its distribution partnerships in order to capture a share of the growing insurance market in Latin America, and to make acquisitions that help to consolidate its positions on this continent.
points of sale spanning the entire country, representing a vast local distribution network to bring Caixa seguros’s micro-insurance products to the 105 million Brazilians with low incomes.
CnP Assurances - 2013 Annual Report - 43 b u s i n e s s
r e s p o n s i b i l i t y
Partnering policyholders over the long-term CNP AssurANCes’s PubliC seCtor legACy, its PreseNCe At the heArt of PoliCyholders’
lives ANd its foCus oN ANtiCiPAtiNg ChANges iN soCiety hAve forged A CommitmeNt to better ProteCt All our futures for the beNefit of All stAkeholders.
Labour 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4. the elimination of all forms of forced and compulsory labour; 5. the effective abolition of child labour; and 6. eliminate discrimination in respect of employment and occupation.
• Reducing our environmental footprint 2013 CoRPoRate soCiaL ResPoNsiBiLity RePoRt available for download from www.cnp.fr r e s p o n s i b i l i t y
R e s P o N s i b i l i t y
tight control over administrative costs in all regions helped to limit their increase to 1.6% like-for-like, while the Group’s ambition to become more competitive led to the Group’s enterprise value rose by 16% in 2013, primarily reflecting the increased contribution of operations.
For a sustainable economy iN 2013, CNP AssurANCes imProved its ProfitAbility, streNgtheNed its PrudeNt ANd resPoNsible mANAgemeNt PrACtiCes ANd iNvested eveN more iN the reAl eCoNomy, iN busiNesses ANd iN jobs.
increased support for sMes and mid-tier companies CNP Assurances has been investing in private equity since 1992, and is currently one of the leading French investors in this market with €3.1 billion committed at 31 December 2013, including €1.6 billion of investments (based on their net carrying amount) and €1.5 billion in capital commitments not yet called. We invest through private equity funds selected for their investment strategy, their teams and their ability to support the development of the companies in the portfolio over the long term. 70% of these funds invest in France and europe. in this way, we are supporting nearly 500 French companies with less than €50 million in revenue at various stages in their development, from start-up to expansion to final sale. Whether they are innovative start-ups or sMes with an established presence in their market, operating in the high-tech sector or traditional manufacturing industry, these companies all play a strategic role in strengthening France’s economic fabric, creating a determined focus on real estate We have only limited exposure to this asset class. the property portfol io had a net book value of €6 billion at 31 December 2013, representing 3% of our total asset portfolio, and offered high quality yields. We are preparing to invest in the fund being set up in France to finance construction of medium income housing and are already adding to our portfolio of residential properties. At the same time, the property portfolio is being diversified geographically, with recent investments in shopping centres and hotels in scandinavia and other regions of Northern europe.
renewable energies, the treatment of water and of waste or information networks, infrastructure projects require long-term financing from powerful lenders. We view this asset class as an opportunity to diversify our portfolio while also optimising our yield-to-risk ratio. At the end of last year, we invested €763 million in French infrastructure projects through specialist umbrella funds comprising infrastructure debt and real estate debt funds. in mid-2013 we signed an agreement with Natixis with a view to jointly financing infrastructure projects and two such investments have already been made. We generally aim to invest between €50 million and €150 million in each selected project. in 2013, we also participated in the first fund-raising exercise for the infrastructure and real estate debt fund launched by la banque Postale Asset Management (lbPAM), that is invested in social infrastructure, transport systems, utilities and eco-projects on the one hand and in office, retail, residential and warehouse properties on the other. Most of the projects are in Western and Northern europe. We have already made capital commitments of €300 million and intend to support the fund’s growth. lbPAM’s objective is to invest around €2 billion in infrastructure financing over the next three years.
a major contributor to infrastructure financing Whether they concern rail transport, sea and river transport, renewable and nonsUPPoRtiNG FReNCH iNdUstRy in 2012, CNP Assurances and three other major insurance companies set up fonds stratégique de Participations (fsP) to help finance the strategic development of french companies in the sbf 250 index selected for their financial robustness, innovation capabilities and visibility. the fund made its first investments in 2013, acquiring a 6.05% interest in Arkema and a 5.25% stake in seb, both leaders in their respective markets.
Combating money laundering and the financing of terrorism is both an obligation and a major concern for banks and insurance companies. the procedures established by CNP Assurances and its partner networks are designed to detect suspicious transactions or customers at all stages of the commercial relationship. the teams in direct contact with customers are at the front line of the procedure, a unit comprising some twenty people is responsible for passing on instructions to the various departments, and five members of the risks and Compliance department are responsible for permanent controls over the procedures. the main area of vigilance concerns the origin of funds. the key safeguards consist of monitoring transactions over time, from the opening of an account with a distribution partner, and banning cash payments and withdrawals. however, all employees are encouraged to remain vigilant at all stages in the life of a policy.
€2.3bn amount invested by CNP Assurances in sRi funds as of 31 December 2013.
The record high Solvency I risk coverage ratio* reported by CNP Assurances. At 31 December 2013, the estimated ratio under Solvency II was 185%, reflecting a further strong 15-point increase over the year.
responsible for rolling down the corporate strategy, managers are taught group practices in the areas of hiring, remuneration policy or professional development as part of a change management process. each year, around thirty new managers receive training at the management institute. the senior management training programme continued to be implemented in 2013. A co-creation forum, the “senior management workshops” serve to identify new managerial postures aligned with the changing face of the group, to create best practice models and to help CNP Assurances’s leadership to evolve.
improving the skills base the insurance profession requires highlevel technical skills and the demands are increasing under pressure from new financial and legal regulations and customers’ very high quality expectations. that’s why we spend the equivalent of over 5% of payroll on training. every year, three-quarters of employees receive some form of training, to enhance the skills base in insurance techniques and the Group’s other core areas of expertise, as well as to firmly instil a risk culture within the organisation. in 2012, around 700 people were trained in measuring the impact of applying solvency ii, and in 2013, some 350 experts concerned by
Career opportunities Whenever possible, vacant positions are filled from within, making internal mobility a key source of career opportunities. in 2013, 88% of permanent positions were filled by internal candidates. An essential career management tool, the annual performance review enables employees to discuss with their manager where they the new directive honed their skills in the art of calculation, as applied in their professions.
800 employees participated in career planning reviews Career planning reviews are an opportunity for employees to take stock of their career to date and look to the future when they return to work after a long absence, approach the second or third stage in their career or are simply looking for a new professional challenge. in 2013, over 1,300 career planning reviews were organised for 800 employees.
For an attractive enterprise iN 2013, CNP AssurANCes set About meetiNg its strAtegiC ChAlleNges ANd stePPed uP
in the last two years, some 150 employees have attended courses leading to a diploma, in order to fulfil their professional ambitions within the group.
10-year commitment to diversity 2003 Pledge to uphold the UN Global Compact and its principle of eliminating discrimination in respect of employment and occupation. 2009 seal of Diversity obtained. 2010 Fourth agreement signed on the employment of people with disabilities 2011 second gender equality agreement signed. 2013 inter-generational action plan.
No.1 in 2013, Caixa seguros was named Best Brazilian insurer for human resources management by the Epoca Negocios 360° following a benchmarking survey of best practices in 250 companies.
in december 2013, the “trophées de la femme dans l’assurance ” awards organised by Argus de l’Assurance magazine honoured two women in the group. Named saleswoman of the year and insurance industry Woman of the year by internet voters, frédérique Cintrat-bargain, sales and marketing director of filassistance, is a member of many networks, and not just of women. Nominated in the international Woman category, gabriela ortiz de rozas, strategy, marketing and Communication director at Caixa seguros is a woman who embraces cross-border challenges. born in Argentina, she began her career in insurance in 1997, as a marketing analyst with CNP Assurances’s Argentine subsidiary. in 2001, she moved to brazil to take part in the creation of Caixa seguros, then moved back to Argentina in 2009 to take up the position of Chief executive of the local subsidiary, before returning to brazil in 2011 to head the new strategy department.
the bonus of a good work/life balance Not content with improving the working environment, we are also innovating to help employees enjoy a better work/life balance. A total of 21% of employees have chosen to work part-time. At Arcueil and Angers, places in daycare centres are reserved for the children of CNP Assurances employees. each year, roughly half of employees choose to accumulate some of their “Rtt” days leave in a time savings account, in order to be able to take time off later for personal projects.
sustained employee dialogue the twenty-five Works Council meetings held in 2013, the signature of agreements dealing with key employee relations issues and the trade union resources well in excess of legal requirements attest to the vitality of employee dialogue at CNP Assurances. During the year, the Works Council was consulted about two major projects, the merger of Fongepar – the employee savings plan management company – with the Humanis Group’s subsidiary operating in the same segment, and the new organisation structure designed to support the Group’s strategic ambitions. No less than six agreements were signed during the year and negotiations began on three others that were still in progress at the yearend.
inter-generational contract launched A new obligation introduced in France in 2013, the inter-generational contract is designed to help young people enter the job market while keeping older employees in work, and promote the transmission of skills between generations. the CNP Assurances action plan is based on the cherished principle of non-discrimination and proposes a series of measures aligned with the Company’s situation. these include hiring under-30s, maintaining the current proportion of employees aged 55 and over (roughly 20%) and taking on school leavers under work-study programmes (97 at end-2013), strengthening mentoring policies and actively monitoring positions held by employees nearing retirement age to ensure that key skills are retained.
CNP Assurances - 2013 Annual Report - 5756 - CNP Assurances - 2013 Annual Report
the grouP foCuses oN desigNiNg Cover thAt is both useful ANd AffordAble.
All of this confirms the importance of CNP Assurances’s social responsibility role and the appropriateness of the choice made many years ago to offer insurance solutions for all our futures.
affordable premiums Reflecting our unflagging commitment to preventing financial exclusion, we enable as many people as possible to secure their future by offering very low minimum premiums for all types of products. For life insurance, for example, the minimum premium is €30 – the amount paid for more than half of the life insurance policies sold in 2013. in personal risk insurance, it takes just €3 per quarter to purchase “emergency
the most advanced responses to the challenges of today’s society CNP Assurances keeps pace with changes in society, constantly updating the offer to provide better insurance cover for all our futures. Research conducted by the
BRL 2.50 or less than €1 per month, the unbeatable price of Amparo funeral insurance offered by Caixa seguros. in the case of death of the family breadwinner, Amparo covers the cost of the funeral, comprehensive support services and three months’ food aid for the deceased’s family.
160 years of observations, experience and calculations have enabled CNP Assurances to reduce the cost of insurance.
Bringing back laughter the CNP Assurances Foundation helps medical teams and charities to improve pain management both in hospitals and for out-patients. in 2013, it supported clinical research into osteoarthritis pain and pain in pre-term babies, and renewed its support for the “Nez à Nez” charity. every thursday, Nez à Nez clowns invade the rooms and corridors of the paediatric haemato- oncology unit of the Centre Hospitalier Charles Nicolle in Rouen, making the children laugh and forget their pain for the duration of the visit.
involving employees t h e F o u n d a t i o n e n c o u r a g e s CNP Assurances’s employees to become involved by supporting their pet projects. in 2013, four projects were selected that have had a major local impact. “Pour le Village de samaane” was set up in 2005 by a CNP Assurances employee to help the inhabitants of this bush village in senegal to build a future. since then, the Foundation has financed two health projects and around fifty CNP Assurances the CNP assurances Foundation supports projects that advance healthcare and initiatives that encourage belief in the future.
employees have joined the charity. last summer, thanks to the Foundation’s support, a group of eight students visited samaane to teach villagers to read and raise awareness about good hygiene practices, as well as helping them to build a toilet block at the school. Another initiative was submitted by an employee who volunteers for the “santiago Accessible” charity set up to help people with disabilities to enter the job market and enjoy improved mobility. the unusual project consisted of taking 12 disabled people on a pilgrimage to santiago de Compostela during the summer of 2013 and raise public awareness of accessibility issues at all of the stopping points on the way.
The site, in French and English, complies with computer accessibility standards and can also be viewed on tablets and smartphones, reflecting CNP Assurances’s commitment to insuring all our futures.
www.cnp.fr Take a look at the new website and the new CNP Assurances video.