14 A vocation underpinned by core values 18 A unique business model
SECTION 2 / PERFORMANCES: BETWEEN YOU AND US, MOVING FORWARD TOGETHER
32 Saving for peace of mind and to protect the family 34 Preparing for retirement 36 Insuring against the unexpected 38 Protection through term creditor insurance 40 Life enhancing services
SECTION 4 / OUR BUSINESS: BETWEEN YOU AND US, EFFICIENTLY INSURING RISKS
44 Enhanced risk governance 48 Asset management: sécure, long term performance
SECTION 5 / OUR COMMITMENTS: BETWEEN YOU AND US, A SUSTAINABLE RELATIONSHIP
• Environment: paper use; videoconferencing and business travel; building management; waste management.
CNP Trésor made easy CNP Trésor Solutions section of the www.cnp.fr website
The 2010 editions of the business review and sustainable development report and the registration document are available on request from CNP Assurances in CD-ROM format. They can be downloaded from either www.cnp.fr or www.cnp-finances.fr
The CNP Assurances Group’s sustainable development indicators are provided in electronic format only, so as to limit paper use. They are available at www.cnp-finances.fr or on CD-ROM.
As a designer and manager of life insurance products with operations in 15 countries, CNP Assurances is committed to partnering clients as a lifetime insurer, helping to protect them against the risks of everyday life.
I n 2010, with recurring net profit of roughly €1 billion, our Group demonstrated its robustness and ability to shift resources towards the fastest growing markets, both in France and internationally. It is a strategy that paid off well.
CNP Assurances is the leading personal insurer in France, where it generates 80% of its premium income. Given its unique business model and its close ties with two major distribution networks, the Caisses d’Epargne and La Banque Postale, the Group has a strategic interest in pursuing its development in France and maintaining its leadership position in the local insurance market. In particular, we have to further strengthen our positioning in the higher-margin risk and pension segments.
However, international markets, particularly the fastestgrowing emerging markets, hold the greatest potential in terms of both development and profitability. This was made clear by our 2010 results, with nearly one-fifth of earnings generated in Brazil through our Caixa Seguros subsidiary. Therefore, our present objective is to leverage new sources of growth as they arise in emerging markets, while of course remaining realistic and prudent in our investments.
As emerging markets move into higher gear, we are seeing a return to inflation. Even some developed countries have started to experience inflationary pressures as a result of both rising raw materials prices and growing capital inflows. This environment requires us to be particularly vigilant, not least because interest rates cannot be expected to remain at their current historically low levels. If they rise at a gradual, measured pace, this could benefit insurance companies, by allowing
In an environment of opportunity as well as great uncertainty, I have worked painstakingly with the Board of Directors to guide CNP Assurances towards profitable growth, increased transparency and improved customer service quality, in the best interest of all our policyholders, shareholders and employees. We need to keep up our vigilance, but at the same time stand ready to seize the opportunities that will most certainly arise.
I can assure you that my fellow Board members and I are confident in our Group’s growth outlook, both in France and abroad.
them to increase the yield paid to their policyholders. However, a steep rise would have a detrimental effect, leading to losses on our bond portfolio and upsetting the investment yield hierarchy too quickly. This explains our policy of hedging against a rapid surge in interest rates.
Lastly, in 2010 we added €426 million after tax to the reserves held as a cushion against future uncertainties. This decision was consistent with the strategy we have followed since I joined the Group. Whenever we can, we add to our reserves to ensure that we can absorb the impact of any future crises and meet our long-term commitments to our policyholders.
Growth in the life insurance market slowed in 2010, particularly net new money. Can you explain why?
Personal insurance is currently at the centre of debates on a certain number of hot topics. What position is CNP Assurances taking as a leader in this business?
We are participating actively in discussions about this issue, alongside the French insurance industry federation (FFSA), taking every opportunity to highlight the essential role of life insurance in financing the economy in general and the corporate sector in particular. In addition, the new Basel III recommendations will soon require all European banks to comply with more stringent capital adequacy and liquidity ratios. The banks may well be tempted to develop new savings products to help them comply with the new liquidity requirements, potentially triggering temporary competition between short- and long-term savings products. It will be up to the insurers to adapt. At CNP Assurances, we are doing just that, to enable us to continue to grow the business and meet the fundamental needs of the French population for protection.
Comprising 18 directors and three non-voting directors, CNP Assurances’s Board of Directors reflects its ownership structure, while leaving ample room for qualified independent members and a representative of employee shareholders.
The recently expanded Executive Committee has seven members, as follows: – Gilles Benoist, Chief Executive Officer – Xavier Larnaudie-Eiffel, Deputy Chief
The Board has chosen to separate the functions of Chairman of the Board and Chief Executive Officer. The Chairman is responsible for overseeing the Company’s smooth governance, leading Board deliberations, coordinating the Committees of the Board and chairing the Strategy Committee. The Audit and Risks Committee and the Remunerations and Nominations Committee are chaired by independent directors.
The Chief Executive Officer is responsible for managing day-to-day operations, with the broadest powers to act in the Company’s name in all circumstances. He implements the strategy defined by the Board for the Group, with a constant focus on protecting shareholder value.
The Chief Executive Officer is assisted by an Executive Committee that was expanded in 2010 to include seven members – the Chief Executive Officer, the Director of International Operations, the Finance Director, the Development and Partnerships Director, the Programmes, Organisation and Systems Director, the Policyholder Services Director and the Human Resources Director – each with broad powers within their remit.
In this way, all of the corporate functions are represented on the Executive Committee, which discusses, considers and coordinates actions to address any and all cross-functional issues.
Further ensuring consistent strategic management across the Group, at least one Executive Committee member sits on the Board of Directors of each of the main subsidiaries.
Deputy Chief Executive Officers: Xavier Larnaudie-Eiffel, International Operations Antoine Lissowski, Finance Gérard Ménéroud, Development and Partnerships *Subject to ratification at the Annual General Meeting on 6 May 2011.
Distribution agreements with local banking partners you Garritano family, São Paulo
Global Seguros (Global, Companhia de Seguros SA and Global Vida, Companhia de Seguros de Vida SA) (CNP Assurances: 83.5%)
• Board of Directors comprising 10 members (6 nominated by CNP Assurances) elected for three-year terms.
• Board of Directors comprising 5 members (3 nominated by CNP Assurances) elected for two year terms.
• Board of Directors comprising 6 members (3 nominated by CNP Assurances) elected for four year terms.
• Board of Directors comprising 7 members (4 nominated by CNP Assurances).
• Board of Directors comprising 6 members, of whom 3 are residents.
A VOCATION UNDERPINNED BY CORE VALUES CNP Assurances meets a basic human need to secure the future in order to live life to the full.
Life is a succession of random events that challenge our ability to respond and adapt. For over 150 years, CNP Assurances has pursued the corporate mission of offering everyone the means to secure their future and that of their family against the risks of everyday life.
Over the years, this mission has lost none of its validity. In the midst of the 2008 financial crisis, our policyholders in France demonstrated their trust in CNP Assurances and their readiness to rely on a strong, dependable, diligently managed partner.
In 2010, concerns about the economic environment and French pension reform deepened their need for reassurance. With a savings rate stabilising at around 16% in 2009 and 2010, French consumers are the world’s biggest rainy-day savers.
We are ideally positioned to observe and understand shifting economic and social trends, such as longer life expectancies and rising social vulnerabilities. Our industry ranking and risk management experience qualify us to innovate in certain markets. This is particularly the case in long-term care, a market in which we pioneered new services that go beyond the standard benefit formula to meet the daily needs of individuals facing a loss of autonomy.
Successfully marketing the product means fostering close ties with our partners by supporting and training insurance advisors in their networks. Managing contracts
Protecting the future of policyholders and their loved ones with: • Low-cost financial security in the case of adverse life events. • Secure financial commitments
Our value added • Anticipating emerging social needs. • Partnering policyholders at every lifestage with our products and advice.
• Guarantee commitments to the insured and their beneficiaries throughout the life of the contract.
Personal insurance contributes to an enhanced sense of well-being. Through its expertise and commitments, CNP Assurances maximises the social value designed into every product category, from savings products with term life cover to pensions and personal risk products with accident, death, long-term care, health, loan and unemployment cover (see Glossary on page 74 for more information).
Assessing each person’s risks, administrative and financial management costs and the probability of surrender
requires a mass customization approach that addresses individual needs with industrial efficiency. The last stage in the process involves defining a premium investment strategy that offers an optimum risk-reward tradeoff, so as to guarantee fulfilment of financial commitments without knowing when they will need to be settled.
In this regard, high-quality portfolio management is mission-critical. The management strategy of an insurer like CNP Assurances is inherently different from that of a bank, asset management firm or pension fund with predetermined investment horizons.
In recent years, CSR has played a central role in our strategy, which is why the Sustainable Development department reports directly to the Chief Executive Officer. In 2009, the Board of Directors set an initial series of CSR objectives, namely to promote SRI funds; systematically incorporate environmental, social and corporate governance criteria into the asset management approach; reduce CO2 emissions from internal operations by 3% per year per employee; integrate more disabled people into the organization; and add sustainable development targets to senior executive bonus criteria.
Most of these objectives were met in 2010, which was also the year of our first Bilan Carbone® carbon audit. New objectives have been set for 2011.
Our job is to develop cover that closely matches policyholder needs. It’s our job to offer cover that is closely aligned with what our policyholders want. The CNP Assurances approach ensures that we develop effective responses, and I feel particularly at ease with my role as an actuary specialised in long-term care products. CNP Assurances started writing long-term care insurance back in the 1980s as soon as demand for it first emerged. Today, as a leader in this market, we are still exploring avenues for addressing this type of risk. Experts in the field, including actuaries and physicians, meet regularly to define risk cover that intimately reflects the needs of the population. Lump-sum payments are now offered in addition to regular benefits and over the years, cover has been adapted to suit increasingly mild care needs. CNP Assurances has been the driver of innovation, designing products to cover the risk of pathologies that involve a moderate loss of autonomy, such as Alzheimer’s disease, stroke and age-related macular degeneration. Contracts are now available that pay regular benefits and a lump-sum right from the onset of such conditions. Our products embody our commitment to serving the insured and nowhere is this more true than in long-term care. Our contracts reflect CNP Assurances’s stated values. What’s more, we’re very attentive to providing accurate and clear information. There can’t be any ambiguity about what is covered and what isn’t. It’s a question of ethics.
Labour standards 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; 6. The elimination of discrimination in respect of employment and occupation.
Environment 7. Businesses should support a precautionary approach to environmental challenges; 8. Undertake initiatives to promote greater environmental responsibility; 9. Encourage the development and diffusion of environmentally friendly technologies. Anti-corruption 10. Businesses should work against corruption in all its forms, including extortion and bribery.
Under the model, CNP Assurances designs, develops and manages life insurance contracts, while its partners distribute them. This combination of insurance expertise and in-depth customer knowledge has demonstrated its effectiveness for over 150 years, and never more than in the recent economic and financial crisis.
Backed by the successful French experience, CNP Assurances began exporting its business model a decade ago.
agreements with CNP Assurances that run until 31 December 2015 and they are also shareholders of our Company. La Banque Postale and Groupe BPCE own an aggregate 35.48% of the capital, giving them a direct, vested interest in the Group’s performance.
The partners’ mutual commitments and respective roles and responsibilities are contractually defined in service and quality agreements. CNP Assurances is dedicated to meeting the highest standards of management efficiency and responsiveness. Its service level commitments are regularly tracked to continuously optimise the quality of service rendered to the distribution networks and the insured.
We mainly operate in the large accounts segment of the market, which requires mobilising considerable technical and legal expertise to participate in the competitive bidding process.
We also serve SMEs through insurance brokers and the Banques Populaires and Caisses d’Epargne networks, offering a range of products suited to their clientele, including defined contribution pension plans and length-of-service award contracts. CNP Assurances is the insurer for all of the group contracts sold by the Caisses d’Epargne and the reinsurer (on a 60% basis) of the group contracts sold by Banques Populaires through Natixis Assurances.
Gross operating profit (EBIT): €757m representing 40% of total EBIT Up 65% on 2009, mainly led by Brazil 2010 Business Review and Sustainable Development Report > 21
In 2010, consolidated premium income dipped by just 0.8% to €32.3 billion, confirming our 2009 performance in a persistently difficult market environment. Sales were led by unit-linked products, which rose 53.6% overall, a vibrant risk segment, and a sharp 30% increase in premium income in Brazil.
Premium income in France totalled €26.1 billion, underpinned by gains in unit-linked, personal risk and term creditor insurance business that directly reflected the sales performance of the Group’s partners.
EBIT amounted to €1,911 million for the year, an 8.8% improvement. EBIT from international operations rose by nearly 65%, mainly led by Brazil, thereby confirming the business model’s ability to deliver profitable growth. In all, international operations contributed 40% of total EBIT. Attributable net profit increased 4.6% to €1,050 million.
Since the initial public offering, the dividend has never declined. For 2010, at the Annual General Meeting of 6 May 2011 the Board of Directors will recommend paying a cash-only dividend of €0.77 per share.
Dec. 98 Dec. 99 Dec. 00 Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 05 Dec. 06 Dec. 07 Dec. 10Dec. 08
The CNP Assurances share closed down 20% at €13.50 on 31 December 2010. The stock was impacted by economic conditions, particularly the low-interest rate environment and concerns regarding euro zone sovereign debt.
Since the stock market flotation on 6 October 1998, the share price has gained 128%, compared with a rise in the CAC 40 index of 21% and a 41% decline in the Dow Jones Eurostoxx Insurance index over the same period.
Share price* as of 31 December 2010: €13.50 Market capitalisation as of 31 December 2010: €8.02 billion (source: Bloomberg) Shares outstanding: 594,151,292 Nearly 140,000 individual shareholders Average daily trading volume in 2010: 419,430 shares (source: Bloomberg)
Indices: CAC Next 20 SBF 120 Euronext 100 DJ Eurostoxx Insurance Aspi Eurozone 120 Ethibel Excellence Index Europe * In July 2010, CNP Assurances carried out a four-for-one stock split.
Total number of employees: 4,619 • CNP Assurances: 3,068 • Consolidated international subsidiaries: 1,469 • Non-consolidated subsidiaries (Filassistance,
Recognition from SRI agencies CNP Assurances’s sustainable development commitment has been recognised by socially responsible investment (SRI) rating agencies such as Vigeo, which places us at the top of its independent ranking of European insurers. Our performance is particularly strong in the areas of human resources management and community outreach. CNP Assurances’s shares are included in several European SRI indices, such as the Aspi Eurozone 120, and the Group’s inclusion in the Ethibel Excellence Investment Register was confirmed in November 2010.
The Finance and Management Roadmap was launched in 2008 as a vector for implementing new accounting standards and the Solvency II directive, and for enhancing operating performance management. The Roadmap breaks down into around 30 different projects that organise all of our Finance teams and many of our IT teams into functional units.
Financial statement production: In addition to the Fast Close programme initiated several years ago to speed up publication of the financial statements, we are continuing to industrialise quarterly account production processes, while at the same time improving data quality.
The project underway to overhaul our accounting system will enter the integration phase in 2011 with the aim of making the new system available for the firstquarter 2012 close. Its purpose is to improve operating performance management and allow the same raw data to be processed according to different accounting standards.
SAVING FOR PEACE OF MIND AND TO PROTECT THE FAMILY More than ever, French people need to protect their future. Life insurance is their preferred method of preparing for life’s challenges and financing their future plans.
Over the years, life insurance has confirmed its role as the umbrella solution to all types of savings needs, from putting money aside for a rainy day and protecting the family from the consequences of unforeseen events, to achieving capital growth, saving for retirement, or optimising an inheritance. It is a flexible solution that can be adapted to each individual’s future plans and subsequently adjusted as those plans change.
CNP Assurances’s life insurance offering responds to the diverse needs of its clients, covering all age groups, wealth brackets, income groups, risk appetites and projects.
Our offering is closely aligned with our values and those of our partners, bearing the hallmarks of affordability, simplicity and transparency. For example, it takes just €30 to set up a life insurance policy with the Caisses d’Epargne (Ricochet) and La Banque Postale (Vivaccio), and the premium can be as low as €30 per month.
Cachemire, distributed by La Banque Postale, also performed in line with expectations. Designed for younger, high-earning clients with at least €25,000 to invest, this multi-fund, multi-manager product confirmed the good results obtained in 2009, recording total sales up 4% at €3.67 billion. Since the product was launched in late 2008, 126,500 contracts have been sold, of which 29.6% to clients in the 30-54 age group.
Seniors represent an important target clientele for life insurers. Having already built up capital and, in some cases, enjoying generous pensions, they have significant savings management needs. For the last three years, the Caisses d’Epargne have responded to these needs with a specific range of life insurance contracts that combine simplicity and security with easy access to capital.
Developments in 2010 brought home to many people the need to start thinking about retirement at the very beginning of their working life. The proposed reform of the pension system fostered growing awareness that unfunded pay-as-you-go systems would not be able to provide the standard of living expected by future retirees.
CNP Assurances is present in the pensions market with life insurance contracts, individual pension contracts such as the Plan d’épargne retraite populaire (PERP), and a full range of group plans enabling companies to offer supplementary pension benefits to their employees.
Designed solely to provide additional income in retirement, tax-advantaged PERP contracts are available to everyone, whether they work for a company, are self-employed or are not in employment. They provide the policyholder with a pension on retirement. We have developed a full range of PERP contracts for our partners, comprising traditional contracts with a unit-linked formula and points-based plans.
CNP Assurances leads the consortium of insurers that manages the Préfon-Retraite supplementary pension scheme set up in 1967 for civil servants and their spouses. Our longstanding experience in managing annuity products, our strong capital base and our expertise represent valuable assets in this market. With the contribution period and the pension payment period each spanning several decades, plan participants need to be secure in the knowledge that their long-term savings are entrusted to a solid and responsible manager.
We pay close attention to managing plan assets, aligning investment strategies with our commitments to the client.
By 2060, the number of people aged over 60 will have increased by 10.4 million compared with 2007 (source: INSEE 2010 population forecasts)
The Caisses d’Epargne offer a range of flexible and affordable products allowing policyholders to purchase the level of protection that suits them best. With Garantie Famille death-disability insurance, the policyholder chooses the amount of cover, which can be increased or reduced at any time. Garantie Urgences makes emergency funds available following a death (€7,500 paid within 48 hours). It is a very affordable solution for the under-30s, who can purchase cover for just €1 per month.
INSURING AGAINST THE UNEXPECTED Increasing uncertainty and growing awareness of the post-war social model’s fragility are contributing to an ever greater need for security and a surge in demand for personal risk insurance.
In April 2010, the Caisses d’Epargne enhanced their personal risk offering with the launch of Ecureuil Solutions Obsèques, allowing policyholders to pay for their funeral in advance and to obtain advice on how to ensure that their final wishes are respected. Around 1,000 contracts are sold each month throughout the Caisses d’Epargne network. This is a fast-growing market – according to the French insurance federation (FFSA), it expanded by 11% over the twelve months to end-June 2010. Scattered families, demographic trends and the desire of seniors to prepare their own funeral are all helping to sustain demand.
CNP Assurances is lobbying against a panicked reaction to the problem of long-term care costs, which we believe are easily insurable by pooling risks, at affordable prices. We began building an offer back in the 1980s. The first products were voluntary and compulsory group insurance contracts sold mainly to mutual insurers and employee benefits institutions. The individual long-term care offer came later, in 2002 in the French Treasury network (now CNP Trésor), in 2004 in the La Banque Postale network and, more recently, in 2009 in the Caisses d’Epargne network. This head start has given us a significant competitive advantage, by allowing us to build a very large database and providing us with the necessary experience-based data to accurately price and manage this long-tail risk.
The MGEN offer has driven a sharp rise in national takeup of long-term care insurance. Before 1° January 2010, three million people in France were covered compared with five million today. This increase in the number of insureds will help us to price the risk more accurately.
PROTECTION THROUGH TERM CREDITOR INSURANCE With 13 million loans insured and a 36% share of the market, CNP Assurances is France’s leading term creditor insurance provider (source: XERFI term creditor insurance market survey, April 2010). It boasts recognized expertise in insuring all types of loans and while home loans account for the bulk of the business, the portfolio also includes consumer loans and restructured debt.
Launched in November 2008 for home buyers taking out a loan with Crédit Immobilier de France, Protection Active Emploi unemployment cover embodies this approach. In the case of redundancy, instead of just covering part of the insureds’ loan repayments, we actively help them to find another job for example by financing competency reviews, training and interview guidance.
One year on, the product is an outstanding success – 34% of Credit Immobilier de France’s customers purchase this option, compared with a national average take-up rate for unemployment cover of just 5%. The network has thrown its weight behind Protection Active Emploi, proud to be able to offer this response to clients’ growing concerns about the risk of unemployment.
We also write term creditor insurance outside France, in particular through our subsidiaries in Latin America and Southern Europe.
In Brazil, Caixa Seguros is ranked no. 1 in this segment, with over 60% of the market. Demand is very strong and the business grew by over 20% in 2010.
We are now exploring term creditor insurance markets in Eastern Europe.
Included not only in personal risk contracts but also in savings products (such as Solésio and Vivaccio), assistance services are above all integral to the long-term care offer. Filassistance plays a key role in prevention, by contributing to early detection of conditions that will lead to a loss of autonomy through its bilan prévention mémoire and bilan prévention autonomie assessment services, and acting when the first signs of handicap appear in order to limit long-term care needs.
As the benchmark assistance service provider, Filassistance is playing a leading role in promoting “insurassistance” and developing innovative solutions. In May 2010, it sponsored the “Trophées du Grand Âge” awards that recognize initiatives that have contributed the most to improving old peoples’ quality of life.
A DRIVING FORCE IN RAISING QUALIFICATION LEVELS AMONG PERSONAL SERVICE PROVIDERS
With more than 190 agencies serving over 37,000 private and institutional clients, as it approaches the 20th anniversary of its creation the Âge d’Or Services network is as committed as ever to improving the quality of its services.
The objective is for all agencies to obtain AFNOR “NF – Services aux personnes à domicile” quality certification of their home care services. The AFNOR certification programme sets clear quality standards for the provision of home care services, to be met in all units in mainland France and the overseas departments and territories. A hundred Âge d’Or Services agencies have already been certified.
The teams of competent, qualified and trained professionals employed by the Âge d’Or Services network of accredited personal services providers offer a wide range of services to the totally or partially dependent elderly and disabled. They include in-home services, personalized support, grocery, medicine and meal deliveries, minor repairs and gardening.
Filassistance International, celebrating ten years of innovation • 2000 (September): Filassistance International is set up by CNP Assurances and Azur-GMF. Profession: life facilitator.
• 2002: the initial product range is developed and the “insurassistance” concept is created.
• 2003: Filassist Contact, the first medical alert medallion and hands-free telephone, is launched, giving frail and socially isolated people 24/7 access to an assistance hotline.
• 2006: Filassistance Services is set up and licensed to operate as a personal services provider under the 2005 Borloo Act.
• 2007: the bilan prevention mémoire memory assessment service is launched.
CARRÉS BLEUS, HELPING POLICYHOLDERS TO TAKE A HAND IN THEIR HEALTHCARE
In today’s increasingly complex society, assistance is more important than ever. The insurance industry is undergoing a major transformation. The challenges – particularly the problem of long-term care – and the speed with which society is changing are such that the industry can no longer simply collect premiums and pay claims and benefits without regard for other issues. In the area of long-tem care, for example, it’s obvious that paying a monthly benefit is not enough. The dependent elderly and disabled and their carers are overwhelmed by the many problems they have to resolve. Genuine protection involves offering an array of services to prevent the onset of dependence, limit long-term care needs, and resolve all dependence-related problems for example by providing the necessary equipment, psychological support, and assistance with administrative and organizational issues. The example of long-term care insurance is particularly relevant but the insurance industry also needs to change its approach to other types of contract. Policyholders increasingly need an insurer that is also a life facilitator ready and able to assist with everyday risks. This is all the more necessary in today’s increasingly complex society, as families become more scattered.
An asset/liability modelling platform for CNP Assurances (France and international subsidiaries) We have set the target of developing a robust, industrial model for the calculation of economic capital according to the optimised standard formula by the end of 2012. To this end, in the first half of 2010 the finance and IT teams developed a new version of the asset/ liability modelling environment, named Nemo. Nemo went live in mid-September in France and at the end of the year in Italy.
The launch process went according to plan, demonstrating the new version’s robustness and performance. Work on the project will continue in 2011, to develop a single platform based on two calculation engines and economic scenario generators, and to provide secure access to all staff concerned (actuaries, finance and accounting staff, risk managers, internal auditors and internal controllers) and also to the supervisory authorities. The main challenges associated with the Nemo project over the next two years are to improve process fluidity, performance, security and auditability.
CNP Assurances is exposed to operational, technical and financial risks. Each employee plays a role in their overall management. Financial risks are managed by the Investments department, technical risks are managed by the Central Actuarial unit and the Actuarial Analyses department, and operational risks are managed by all departments.
The ERM project comprises several phases. The first steps were to identify existing risk management and control processes and compare them with best market practices. General risk management procedures were then drawn up, supported by action plans.
Solvency II is encouraging the emergence of a risk culture with our Group Little by little, Solvency II is affecting all of our activities. Beyond the need to set up a new risk governance system, Solvency II has a variety of strategic consequences, affecting our investment policy, our organization structure, product diversification and, generally, the choice of products. The challenge for us is to translate our own opinion of our risk exposures and the capital required to cover them. In practice, this means validating the overall risk tolerance framework. All of these questions are being addressed on a Group-wide scale. Like the transition to IFRS, Solvency II is a project that involves all of our subsidiaries. As a result, it will help to build a stronger Group culture and improve communications. A network of local chief risk officers will be created. Initially tasked with implementing Solvency II, as has already been done in Italy, they will subsequently have permanent responsibility for managing all technical, operational and financial risks within their units.
Internal control is a process to ensure the protection of assets, the effectiveness and efficiency of operations, and compliance with applicable laws and regulations and internal procedures.
The scope of the internal control system was initially set in 2003, to comply with the requirements of France’s Loi de Sécurité Financière. Focused on the preparation and processing of financial and accounting information, the system has gradually been extended to cover all of the Group’s key business processes.
Business processes are assessed by measuring the original risk (before implementing controls) and the residual risk (after controls). The self-assessment process is carried out by line personnel, with the Risks and Compliance department performing second-tier controls to check that risks are effectively controlled and that the related procedures are relevant.
This approach serves to identify the most significant residual risks to be addressed on a priority basis and any key controls that are ineffective.
CNP Assurances has set up a contingency plant to limit disruption to its operations in the event of a major incident. The plan describes the action to be taken immediately to allow operations to resume without delay. In 2010, five emergency drills were carried out with the operating departments to test the plan’s robustness and train the staff who would be responsible for implementing the plan. Each drill was based on a different crisis scenario.
ASSET MANAGEMENT: SECURE, LONG TERM PERFORMANCE Despite an unfavourable economic environment and persistently low interest rates, in 2010 CNP Assurances protected its policyholders’ capital and its shareholders’ investment by applying prudent and disciplined long-term management strategies.
Last year’s economic environment was less than ideal for insurers. Significant reserves had to be set aside to compensate for historically low interest rates, with a serious impact on their accounts.
However, not all insurers were affected to the same extent. Some companies in the European Union have made a habit of offering high rates of interest to their clients and engaged in mass selling of guaranteed yield products. In contrast, French insurers have shown more restraint and have limited their sales of guaranteed yield products in the last fifteen or so years. CNP Assurances is a case in point – since 1992, we have set strict limits on our yield guarantees.
Asset/liability management (ALM) processes are designed to ensure that we can fulfil our commitments whatever the situation in the equity or fixed income markets. The management strategy takes into account policy terms, including expected investment periods, surrender options and any yield guarantees.
The simulations provide us with the assurance that our policyholders’ capital and our shareholders’ investment will be protected, whatever the conditions in the financial markets. An insurer must be certain of being able to pay the promised yield to policyholders on their endowment contracts, even in the event of a steep fall in interest rates. That’s why we adopt a very cautious policy, particularly as regards variable yield guarantees. In 2010, we adjusted our Italian subsidiary’s policy by gradually lowering guarantees that would have been difficult to fund if interest rates remained at their current level.
Contracts with a higher fixed yield 5,012.8 1.8% 6,026.1 2.3% 6,170.3 2.6%
Asset yield simulation over a long period of falling interest rates
This long-term investment strategy has several consequences. First, it encourages us to select assets very carefully. It also encourages us to adopt responsible investing strategies and this was the case even before sustainable development became a hot topic.
For example, the quality of a country’s governance has always been a factor in the selection of government bonds and, since 2009, we have been able to ensure that we are not supporting any undemocratic or corrupt governments through our €100 billion portfolio.
We also focus on promoting innovative socially responsible investment funds, such as FinanCités, France Active, which we have supported since its formation, Business Angels des Cités in 2009 and Citizen Capital in 2010. All of these funds provide financing to entrepreneurs from disadvantaged backgrounds.
Our stance as a responsible investor acquired a new dimension in 2003, when we pledged to support the United Nations Global Compact. We encourage our two main asset managers, Natixis Asset Management and La Banque Postale Asset Management, to develop best-in-class socially responsible investing (SRI) strategies.
Every quarter, representatives of the Investments Department and the Sustainable Development Department meet with the asset managers to screen all equity and bond portfolios based on environmental, social and governance (ESG) criteria. If any investments fail the ESG test, various courses of action are considered such as asking the company concerned for an explanation, halting all further purchases of the stock or bonds concerned or selling the existing investment.
The corporate bond portfolio was reviewed based on ESG criteria for the first time in 2010.
Other methods are also used to promote socially responsible investment. For example, SRI funds are routinely included in the investment options offered with traditional savings products with a unit-linked formula distributed by our three networks. As well as creating an environmental fund, CNP Développement Durable, for the CNP Trésor network, we have diversified our portfolios by investing in vehicles such as infrastructure funds and renewable energy funds.
Our investment properties are managed in accordance with a sustainable development charter that focuses on ensuring the safety of building users and promoting high standards of energy efficiency. The action plans launched in 2009 following the safety assessments were continued in 2010. Forty percent of our investment properties have been awarded a green rating and this procedure is applied to all newly acquired properties.
At the end of 2010, we set ambitious SRI targets to support our assertive strategy in this area. In 2011, we want ESG screens to be applied in the management of 65% of our assets (equities, bonds, mutual funds, property, etc.). In another initiative, we are currently drawing up a socially responsible investing code.
Dorothée de Kermadec- Courson Risks & Compliance and Sustainable Development Director CNP Assurances us
CNP Assurances, a recognized socially responsible investment CNP Assurances features among those companies that are likely to attract socially responsible investors. In 2008, the Group was awarded the Ethibel Excellence seal and included in the Ethibel Sustainability Index (ESI) Europe, which provides a comprehensive perspective on the financial performance of the leading European companies in terms of sustainability. In November, CNP Assurances was one of the four shortlisted companies for the Natixis Asset Management/ Amadeis/Les Echos “Prix de l’Investisseur Responsible” SRI prize.
POLICYHOLDER SERVICES: FOCUSING ON QUALITY A lifetime insurer has to be a reliable partner at every stage of the policyholder relationship, which is why we are sharply focused on continually enhancing quality of service to policyholders.
With nearly 15 million individual insurance contracts in its portfolio, CNP Assurances faces the dual challenge of offering personalised service and managing industrial -scale processes. We are responsible for the entire management chain, from the initial sale to the settlement of claims and the payment of benefits, leveraging highly efficient administrative and IT systems that are upgraded on a regular basis.
These centres handled a total of 14.8 million active policies in 2010. This was 4.3% more than in 2009, meaning that they also sent more letters to policyholders and received more telephone inquiries.
In four separate waves, 16 million letters representing a total of 140 million pages were sent to policyholders’ home addresses. Our industrial approach to processing these annual policyholder statements allows us to meet the twin goals of efficiency and quality, despite the increase in volume.
quality and efficiency, while also allowing a seamless transition from transaction input mode to sales mode. Thanks to these shared resources, most routine transactions are processed immediately and securely at the point of sale. This set-up enhances the role of the customer relationship managers in the networks and helps them to fulfil their obligation to provide customers with impartial advice, while allowing our teams to focus on the more complex transactions and provide expert support to the sales forces, two areas where they can really added value.
In 2010, the uptime rate for Partages, La Banque Postale’s insurance workstation platform, was 99.76%. That of the Puma platform used by the Caisses d’Epargne was 99.82%.
A year ago, CNP Assurances initiated a process to obtain quality certification for all of the administrative processes associated with all of its portfolios. The first phase was completed in July 2010 with the certification of all CNP Trésor processes.
Next on the list are the processes for contracts sold through the La Banque Postale and Caisses d’Epargne networks. In 2010, audits of both partners’ term life contract processes were undertaken.
Constantly enhancing policyholder data protection Since 2005, companies in France have been entitled to designate their own Data Protection Officer. At CNP Assurances, we appointed a Data Protection Officer in 2006, demonstrating our commitment to respecting the fundamental rights of our policyholders and employees with regard to their personal data. As well as reporting to the CNIL data protection authority and CNP Assurances’s senior management on compliance with applicable laws and internal procedures concerning collection, access, processing and storage of personal data used within and by the Group’s companies, the Data Protection Officer is also tasked with fostering a culture of protecting personal data within the organisation.
Our partnerships are based on a comprehensive service quality tool-kit comprising service level agreements, process quality indicators, satisfaction surveys and improvement plans.
Improvements are being made all the time. At the Caisses d’Epargne, quarterly and monthly indicators track the time taken to complete each major administrative process and the quality of the work performed.
The system introduced in compliance with France’s Act of 17 December 2007 on unclaimed life insurance settlements was ramped up in 2010.
In effect since 2007, the AERAS convention aims to ensure that persons representing an aggravated health risk have access to death and disability cover when taking out a loan. At CNP Assurances, we work determinedly to ensure that the provisions of this agreement are properly applied.
We exceed our legal obligations whenever possible, extending insurance to as many people as possible without charging higher premiums or restricting cover. As in 2009, less than 0.2% of applications were rejected during the year.
In recent years, CNP Assurances has considerably expanded its offering for high net worth customers. The challenge has been to meet the expectations of these very demanding customers for personalised attention, responsiveness and quality of service.
Another example is our use of the CNP Vida platform for Toscane-Vie, the new contract marketed to La Banque Postale customers who are liable for France’s wealth tax. Its integration in the Spanish subsidiary’s contract administration system allows policyholders to start investing in their policies within two days of purchase.
Sales to the Caisses d’Epargne’ private banking customers went from strength to strength, rising 38% over the year. The launch of Nuances Capi in February 2011 will help to sustain this trend.
The personal risk business advanced 38% on 2009, led by sales of the Garantie Urgence and Garantie Famille contracts as well as the Ecureuil Solutions Obsèques product launched in 2010 which has got off to a very good start.
In 2010, more than 500 newly hired advisors from eight different regional banks attended a life insurance training course given by the CNP Assurances Business Development Department. This two-day program has now become an integral part of the new employee orientation process.
LA BANQUE POSTALE: CONTINUED HIGH VOLUMES IN LIFE AND PERSONAL RISK INSURANCE
The Cachemire and Toscane Vie life insurance products had a successful year, while the shift towards unit-linked products continued with sales up 16% on 2009.
GROUP INSURANCE: MAINTAINING SOLID PARTNERSHIPS CNP Assurances is strengthening its partnerships in an environment shaped by increased mergers and acquisitions activity.
Apart from pension and employee benefits plans purchased directly by large corporations, group contracts are generally managed via an intermediary within a partnership framework.
Changes in the regulatory landscape due to the Solvency II directive have forced mutual insurers to take adaptive measures. The need to comply with higher minimum capital requirements has motivated them to secure the backing of a large insurer. The unchallenged leader in this market, CNP Assurances sees this as an opportunity to strengthen its long-standing partnerships.
insurers have teamed up to create new groups that are better equipped to meet the challenges of tighter regulation and increased competition. This movement has been observed not only among civil service mutual insurers but also among companies serving the private sector.
MGEN joined the project by becoming the largest mutual insurance shareholder in an MFPrévoyance SA holding company. With 51% of its capital owned by the mutual insurers (including MGEN and MFPrévoyance SA’s traditional partners, MGEFI, MCDéf, MMJ, MNAM, MPCDC and MFFOM*) and 49% by CNP Assurances, this holding company now owns 28% of MFPrévoyance SA. CNP Assurances and MFP Services meanwhile directly hold 51% and 21% of MFPrévoyance SA, respectively.
MFPrévoyance SA now has all the resources at its disposal to pursue its development in the employee benefits market. The company acts as a vehicle for the partners and the mutual insurance segment as a whole to develop personal risk solutions for civil service customers. In addition, it provides a solid alternative for small and medium sized companies in an increasingly concentrated market. MFPrévoyance SA also plans to start offering its products to insurance brokers and companies through the mutual insurance networks.
The agreement attests to MNT’s determination to consolidate its position as the benchmark in local government employee solutions and our intention to broaden our presence in this segment.
The benefits institution segment has also been witnessing profound changes and mergers and acquisitions activity. Having forged close ties with this market, we are very attentive to these developments. The CNP Assurances-benefit institution alliance makes sense to companies, as it allows them to benefit from our reputation, technical expertise and reliability along with the cooperative values of the benefits institutions.
Through Institut National de Prévoyance Collective (INPC), a non-profit organisation we set up in 1982 with several benefit institution partners, we have developed very close ties with different players in the social benefits arena. The organisation’s purpose is to promote benefit plans in cooperation with all employee representative bodies in France. It has become a valuable forum for discussion and dialogue on the evolving nature of employee protection plans.
INTERNATIONAL MARKETS: A SHARED GROWTH DYNAMIC In 2010, as conditions in the French market remained challenging, the value of our international subsidiaries as drivers of profitable growth was more apparent than ever.
In 2001, CNP Assurances acquired 51% of Caixa Seguros, one of Brazil’s leading bancassurers. Our partner in Caixa Seguros is State-owned Caixa Econômica Federal, the nation’s second largest bank whose network spans the entire country. Caixa Econômica
Federal boasts more than 2,000 bank branches, 11,000 lottery ticket sales points and 16 million deposit accounts.
Ten years on, Caixa Seguros is now the sixth largest insurer in Brazil, with a market share of 6% excluding health insurance. Its premium income is six times higher than when it joined the CNP Assurances Group, reflecting sharp growth in pensions business, and its net profit is ten times higher.
SUCCESSFUL LAUNCH OF THE NEW OFFER WITH BARCLAYS IN SOUTHERN EUROPE
The CNP Assurances Group driving innovation CNP Assurances derives 19.1% of its total premium income and 40% of its EBIT from international markets. But beyond their income statement contribution, the international operations are patently enriching our organisation through a growing number of seminars, cross-functional projects and programmes to exchange best practices. A 32-member international marketing community representing all of our subsidiaries was set up in April 2010. By enabling participants to share experiences, experiments and product ideas, and to take a step back from their own market, the community promises to be a powerful innovation driver.
In Spain, CNP-BVP began selling Rentas Garantia Total in the first quarter of 2010. Intended for people over 55, this savings product offers an immediate, guaranteed quarterly annuity.
THE PARTNERSHIP WITH MARFIN POPULAR BANK IS WITHSTANDING THE GREEK CRISIS
Our alliance with Marfin Popular Bank (MPB) was formed in July 2008 with the two-pronged objective of developing insurance and pension sales by the bank’s networks in Greece and Cyprus and partnering MPB in its future expansion in Central and Eastern Europe.
Launched in 2008, UniGarantito is still the most popular product in Italy, generating premium income of €1.8 billion in 2010. This single-premium traditional savings product provides customers with a safe investment solution, offering both a capital guarantee and a guaranteed minimum yield set at a realistic level in relation to expected future interest rate trends.
As part of our strategic refocusing on bancassurance in southern Europe, on 3° March 2010 we completed the sale of our majority interest in the Global Seguros insurance group to Rentipar Seguros SGPS, a recognised property and casualty insurer in Portugal.
Previously a State-controlled entity, CNP Assurances became a limited company (société anonyme) in 1992 and was listed on the stock exchange in 1998. Since then, it has enjoyed the backing of a stable shareholder base, consolidated by the agreement between its major shareholders, Caisse des Dépôts et Consignations (40%), the French State (1.1%) and the Sopassure* holding company (35.5%), that runs until the end of 2015. Sopassure is the holding company for the interests of La Banque Postale and BPCE** in CNP Assurances.
Since our stock market listing, we have worked to build lasting relationships of mutual trust with our shareholders. The investor information system plays a key role in this process. CNP Assurances is committed to providing shareholders – and the financial community in general – with comprehensive, transparent, understandable, easily accessible financial information.
Reflecting the many different ways in which people search for information, we publish financial and corporate documents, such as the Financial Report filed with French securities regulator AMF, the Annual Report, the
A toll-free number has been set up for shareholders in France, with real time stock quotes, the latest value of benchmark indices and access to a news briefing updated every other week. Callers can also be transferred to telephone advisors who will answer their questions concerning the Group.
Lastly, the www.cnp-finances.fr website provides financial information in two separate sections dedicated to individual shareholders and institutional investors respectively.
* Sopassure is 50.1%-owned by La Banque Postale and 49.9% by Groupe BPCE. ** Groupe BPCE was created on 31 July 2009 through the merger of the Banques Populaires and Caisses d’Epargne (Caisses d’Epargne) cooperative banking groups.
All shareholders are eligible to join the Shareholders’ Club, whatever the number of shares held, entitling them to additional information and services. There is no membership fee. To join, shareholders should write to the Company, call the toll-free number (if they are based in France) or visit the website www.cnp-lecercle. fr opened in 2008.
In 2010, CNP Assurances and CACEIS CT, the organisation retained by the Company to manage its shareholder services, launched Olis@actionnaire. The site enables holders of registered shares to view their share account online and vote on resolutions to be presented to shareholders before the General Meeting. Three special brochures have been prepared to help them connect to the site and understand and use the new functions.
Since June 2010, holders of registered shares have been able to receive the Notice of Meeting and the proxy documents by email.
We are committed to enabling employees to share in the Company’s performance and growth. Since the 1998 IPO, three employee rights issues have been carried out, including one in 2004 that was open to employees of subsidiaries outside France. We also set up share grant plans in 2005 and 2007.
EMPLOYEES: MOBILITY, DIVERSITY, AND A HEALTHY WORKLIFE BALANCE Our human resources policies are rooted in the firm belief that our success depends on the ability to create a company that promotes team members’ personal fulfilment while reflecting the diversity of civil society.
In 2010, 185 employees in France took advantage of mobility opportunities. Managers are also trained to encourage team members with the right profile to develop new skills and pursue new opportunities.
The Human Resources Department now wants to further extend the process by creating more structured career path programmes. This would involve an indepth reworking of the mobility policy so that rather than just changing jobs, employees reorient their careers in a process that involves various job assignments, supported by skills enhancement and training periods.
In January 2009, we became one of the first seven French companies to receive the Seal of Diversity awarded by a panel comprising representatives of the French State, the trade unions and the National Association of Human Resources Managers (ANDRH). The award recognises not only a company’s achievements but also its commitment to pursuing the improvement process under the supervision of the certification body, AFNOR.
At year-end 2010, disabled employees accounted for 5.38 % of the workforce, attesting to the efforts we’ve made in this area over the past few years.
Our objectives for 2010-2011 include more effectively integrating equal opportunity rules into all aspects of personnel management – hiring, training and promotions – and implementing a more comprehensive approach to diversity management that extends beyond the realm of human resources.
Various initiatives have been undertaken to improve human resources processes. Hiring interviews are now conducted in full compliance with the Company’s non-discrimination rules and a diversity manual has been written that describes human resources missions affected by this policy as well as individual roles and responsibilities.
Since November 2010, all employees age 60 and over are entitled to five days off a year to pursue humanitarian, social or health-related projects within recognised foundations and charities.
Since June 2010, employees have had access to a 24/7 telephone counselling service provided by Filassistance International, a CNP Assurances subsidiary.
This service extends and supports our in-house mediation system set up in 2008 to prevent interpersonal conflicts and workplace distress, harassment and discrimination. If necessary, the Filassistance platform will encourage employees to get in touch with their local workplace health department or mediation service.
The European Works Council held its first meeting on Tuesday, 15 June 2010.Chaired by Chief Executive Officer Gilles Benoist, the Council is comprised of 12 members representing the European subsidiaries. This new employee relations body sheds light on issues common to all European subsidiaries and provides an opportunity to inform and consult with employee representatives on possible organisational changes and development projects.
The CNP Assurances Foundation was created in 1993 to develop community outreach initiatives in the area of healthcare, a field that is naturally aligned with our mission as a personal insurer. Three years later, the Foundation chose to focus on pain prevention and management and fifteen years later it is still pursuing the same commitment.
The Foundation solicits projects from medical teams and non-profit organisations that can improve pain management techniques for children, adults and seniors, whether applied in doctors’ offices, hospitals or palliative care units.
Since it was set up, the Foundation has donated more than €6.6 million in subsidies to over 186 projects.
Every year, more than 40,000 people in France die of cardiac arrest outside of hospitals. To help save thousands of lives, the CNP Assurances Foundation is pursuing a support program launched in 2009 to improve emergency medical first aid provision to heart attack victims.
The CNP Assurances Foundation produced a film entitled Un geste pour la vie that presents life-saving techniques to be applied in the event of a heart attack. The DVD, which comes with a booklet, is used during meetings with local authorities and officials to present the defibrillators.
Increasingly involved in community outreach initiatives, CNP Assurances employees in 2010 set a new record for their participation in the Virades de l’Espoir event organised by Vaincre la Mucoviscidose, the French cystic fibrosis research charity. The CNP Assurances Foundation won first prize for the level of employee participation and for the size of its donation to the organising charity.
The Foundation also supports projects developed and deployed by employees. In 2010, six projects were selected, including one to improve standards of hygiene in a Mongolian orphanage and another to organise a two-day boating event for the disabled.
In addition, the Foundation supports an original project initiated by an employee to encourage people over 50 to learn and practice karate in French Karate Federation clubs.
Protecting and showcasing the Pouilly-sur-Meuse treasure With its roots in the public sector, CNP Assurances is deeply committed to protecting France’s cultural heritage. Its €620,000 donation was vitally important for the acquisition of the recently unearthed Pouilly-sur-Meuse treasure. Classified a national treasure, the objects were transferred to the Musée Lorrain in Nancy 2010. The story behind the collection is a treasure hunter’s delight. In 2006, a resident of Pouillysur -Meuse excavating earth in his yard with a friend, discovered a set of 31 silver and silver gilt objects that had belonged to a wealthy Lorraine family during the Renaissance. The objects, which include ewers, cups, goblets, salt shakers and spoons, are invaluable both for their precious metals and as artefacts of day-to-day life in an earlier period.
REDUCING OUR CARBON FOOTPRINT 2010 was an important year for our sustainable development policy as it conducted its first carbon footprint analysis.
For five years, CNP Assurances has been assessing the more significant environmental impacts generated by its operations. Relatively small compared to certain other businesses, its impact consists of carbon emissions. Three sources of emissions have been identified: the use of paper for routine administrative purposes and policyholder communications, business travel, and the management of the Company’s office buildings and investment properties.
In 2010, the Company decided to take the initiative and carry out a carbon footprint analysis two years ahead of the deadline set for large companies in France. Conducted in accordance with the method certified by France’s Environment and Energy Management Agency (ADEME), the analysis measured all emissions related to Company operations so that short and medium-term action plans could be introduced.
The analysis confirmed the challenges identified in previous years, with paper, business travel and property management remaining the three areas for improvement. It has also enabled the process to be you extended to include emissions related to computers, furniture, vehicles and other physical assets, thereby identifying potential areas for improvement.
In 2010, for the first time, a goal was set of reducing greenhouse gas emissions by 3% per employee per year for in-house operations. This ambitious goal could not be met in 2010 because of business development, but we have reaffirmed our commitment to reversing this trend by renewing the overall objective for the next two years.
In 2007-2009, the goal of reducing paper consumption was included in the criteria for determining discretionary profit-shares. This innovative approach, which has also been adopted by other companies, helped reduce paper consumption for in-house operations by more than 8%.
The Company is activating all levers to optimise business travel. Initiatives include stepping up the use of videoconferences and conference calls, especially with subsidiaries outside France, traveling by train
We’re also pursuing efforts to make building management operations more energy efficient. In 2010, air conditioner cooling towers at headquarters were replaced. The new closed cooling water system has reduced water consumption by 3% while also eliminating the risk of legionellosis.
Biodiversity: protecting the marbled newt In 2010, the International Year of Biodiversity, Société Forestière, a 49.9%-owned subsidiary that has played a pioneering role in promoting biodiversity, led a number of important projects. In March, three marbled newts (a species protected by the Bern Convention on the Conservation of European Wildlife) were found in the Gaudinière Forest in France’s Loir-et-Cher department and special conservation measures were introduced. In Brittany’s Broons and Bourgouet Forests, Société Forestière released Rhizophagus predator beetles, which feed on an insect that destroys healthy stands of spruce trees. The company also rehabilitated a peat bog on a Natura 2000 site in a forest in the northern Morvan region. Natura 2000 is a European network of nature protection areas. With 49,000 hectares of forest, CNP Assurances is France’s largest private owner of woodland. These woodlands have been certified by the Pan European Forest Council (PEFC).
Suppliers Suppliers of equipment, paper, consulting services, outsourced services, IT services and other
Issuers of financial assets Around 500 bond issuers and 300 listed companies
Cyprus : Agency Network and Marfin Popular Bank Greece : Marfin Egnatia Bank and Postal Bank
• 13,123 mandatory life insurance plans 20,600 insureds 121,000 insureds • 162,400 insureds under individual contracts
Shareholders 40% Caisse des Dépôts 35.48% La Banque Postale Groupe BPCE 1.1% French state 140,000 private shareholdes 2,895 employee shareholders 94% CNP Assurances 6% Caisses d’Epargne (Caja Ahorros de Avila/Caja Ahorros de Canarias/Caja Ahorros de Extremadura/Caja Ahorros SA Nostra/Caixa d’Estalvis de Laietana/ Caixa d’Estalvis de Manlleu/Cajasol)
57.50% CNP Assurances 38.80% UniCredit 3.7% Cardif Assicurazioni 76.47% CNP Assurances 12.5% Banco Credicoop 11.03% Segurcoop 50% CNP Assurances 50% Chinese Post Office: 100% CNP Assurances 50% CNP Assurances 50% Barclays Bank 40.1% CNP Assurances 9.9% Marfin Popular Bank Public Co Ltd
Laiki Cyprialife Ltd Laiki Insurance Company Ltd Marfin Life SA Marfin Brokers SA
Distribution partners 17,500 La Banque Postale branches + 410 independent financial advisors + 7 CNP Caution partners + 4,300 Caisses d’Epargne branches + 300 CNP Trésor advisors + 180 Âge d’Or franchisees + 115 mutual insurers + 200 financial institutions 28 distribution partners (Caisses d’Epargne and other banks) representing 4,800 potential points of sale 38,000 sales outlets in 5,565 municipalities 6,700 bank branches 10,600 lottery ticket sales points 21,000 banking correspondents 1,970 UniCredit branches 249 Banco Credicoop branches, 60 Banco Ciudad branches, 270 BBVA Banco Francés branches, Network of 132 underwriters, 70 Banco Columbia branches 333 Chinese Post Office branches in Beijing
Civil society Insurance supervisor, professional bodies, rating agencies, beneficiaries of community outreach programmes, government agencies, host communities.
• Annual premium equivalent (APE) Life insurance business indicator corresponding to the sum of total new regular premiums and 10% of single premiums received during the period.
• Asset/liability management (ALM) The purpose of asset/liability management is to match fund the insurer’s liabilities towards the insured with assets, so that the insurer’s financial risk is covered at all times.
• Association Française de l’Assurance (AFA) Set up in July 2007, this industry association examines insurance-related issues and lobbies on behalf of the industry. It is presided on an annual rotating basis by the presidents of Fédération Française des Sociétés d’Assurance (FFSA) and Groupement des Entreprises Mutuelles d’Assurances (GEMA).
• Capitalisation reserve The capitalisation reserve is used to smooth the impact of changing interest rates on investment income from sales of fixed rate bonds. Gains on sales of fixed rate bonds are accumulated in the capitalisation reserve, and are released to offset losses on fixed rate bond sales. The capitalisation reserve is included in the calculation of required capital.
Criteria used to determine the extent to which a company, local authority or national government is socially responsible.
Professional federation whose members include the majority of French insurance companies and subsidiaries of foreign groups, operating in the life or non-life business or both. The federation’s specialised commissions examine proposed regulatory changes and also produce statistics on the French market.
• Group insurance Class of insurance allowing a company (or an association, local authority, mutual insurer or bank) – “the policyholder” – to take out an insurance policy covering a natural group of individuals (such as the company’s employees) – “the insured”.
Internationally recognised accounting standards that all listed European companies are required to apply as from January 2005.
• In-force business Discounted present value of the future earnings stream from in-force business less the cost of the capital needed to comply with solvency margin requirements.
• Institution de Retraite Supplémentaire (IRS) Governed by the French Social Security Code, IRSs are company or multi-employer supplementary pension institutions that pay benefits in addition to the basic State pension and the supplementary pensions paid under the ARRCO and AGIRC government-sponsored schemes. There are around 100 IRSs in France, paying pension benefits of over €1 billion a year. The Pensions Reform Act (“Fillon Act”) of 21 August 2003 and the related enabling legislation published at the end of 2007 required these institutions to be wound up and their commitments transferred to insurance companies by 31 December 2008. The deadline was subsequently extended to 31 December 2009.
• PERCO (Plan d’Épargne Retraite Collective) Product introduced in the Pensions Reform Act (“Fillon Act”) of 21 August 2003 to replace the PPESV employee savings plan. Group pension product, accounted for as an employee savings plan not as life insurance. Benefits are payable as a lump sum or an annuity. Early withdrawal of the capital is allowed in a limited number of circumstances.
• Personal insurance Insurance policy concerning an insured individual, not the insured’s property. Examples include endowment insurance, whole life insurance, accident insurance, disability insurance and health insurance.
• Personal risk Insurance contract paying a temporary or life annuity to the insured or designated beneficiaries in the event of an accident, illness, death, a loss of autonomy, inability to repay loans or unemployment.
• Policyholder dividends In life insurance, the portion of the investment yield distributed to policyholders in the form of dividends, as required by law.
• Required capital Minimum coverage of insurance risks required by law to protect the interests of the insured. Required capital carrying cost corresponds to the present value of the cost of equity capital held to cover required capital over the period until all obligations to policyholders have been extinguished. It is calculated as the difference between the return expected by shareholders (discount rate) and the net of tax return earned from the investment of the required capital.
• Socially Responsible Investing (SRI) An investment strategy incorporating non-financial considerations such as ESG criteria.
• Solvency II Reform of European insurance regulations applicable from 1 January 2013, designed to better align insurance and reinsurance companies’ required capital with their risk exposures.
• Traditional savings contract Insurance policy for which the surrender value and benefit payments correspond to a cash amount.
• Unit-linked contract Insurance policy for which the surrender value and benefit payments are expressed in units, generally corresponding to the number of units in a mutual fund. The insurer gurantees the number of units in the fund, but not their value. The cash value of the insurer’s commitment varies in line with the market value of the mutual fund units.
• Rennes Immeuble Hermès 6, place des Colombes BP 331-41 35031 Rennes Cedex
Central Eastern region head office (Auvergne, Burgundy, Franche-Comté, Limousin, Rhône-Alpes) Immeuble Aquilon 44, rue de la Villette 69425 Lyon Cedex 03
Regional offices • Lyon Immeuble Aquilon 44, rue de la Villette 69425 Lyon Cedex 03
• Clermont-Ferrand 63, boulevard François-Mitterrand BP 377 63010 Clermont-Ferrand Cedex 01
Southwest region head office (Aquitaine, Poitou-Charentes, Midi-Pyrénées) Centre d’affaires Compans-Cafarelli 10, place Alfonse-Jourdain 31000 Toulouse
Regional offices • Toulouse Centre d’affaires Compans-Cafarelli 10, place Alfonse-Jourdain 31000 Toulouse
Regional offices • Western Paris Heron Building 66, avenue du Maine 75014 Paris
• Reims ZA Becquerel 15, avenue Becquerel – Bâtiment B 51010 Châlons-en-Champagne
Mediterranean region head office (Provence-Alpes-Côte d’Azur, Languedoc-Roussillon, Corsica) Les Docks Atrium 10.5 10, place de la Joliette 13567 Marseille Cedex 2
• Aix-en-Provence Le Decisium 1, rue Mahatma-Gandhi 13090 Aix-en-Provence 2010 Business Review and Sustainable Development Report > 79
• Caixa Seguros Sector Comercial Norte, Quadra 01, n° 77, Bloco A Edificio Number One - 15° andar 70710-500 Brasilia – DF Brazil www.caixaseguros.com.br
• CNP Europe Life Embassy House Herbert Park Lane Ballsbridge Dublin 4 Ireland www.cnplife.ie
We provide 40 pages of sustainable development indicators, with three years’ data. They cover all of the indicators analysed by stakeholder group, including: • Employees and employee representatives: workforce structure; use of outside contractors; workforce planning; organisation of working hours; health and safety; remuneration; career development; employee dialogue and equal opportunities.
• Policyholders and distribution partners: policyholder satisfaction; environmentally and/or socially responsible products and services.
• Issuers: helping to finance the economy; acting as a responsible investor and a responsible shareholder.