* Partly based on estimates of the number of managed contracts, rounded up to the nearest million ** Personal risk, health and term creditor insurance *** Excluding deferred participation
04. mEssAGE FROm JEAN-PAUL FAUGèRE, CHAIRmAN OF THE BOARD OF DIRECTORs 06. INTERvIEW WITH FRéDéRIC LAvENIR, CHIEF ExECUTIvE OFFICER
12. ROBUsT FINANCIAL mETRICs 14. REAFFIRmING OUR sOCIAL AND sOCIETAL COmmITmENT
16. PROTECTING PEOPLE, OUR BUsINEss 18-21 Making plans for the future 22-25 Having someone to count on 26-29 Wasting no time in preparing for retirement 30-33 Living at home for as long as possible 34. sOCIAL REsPONsIBILITy, OUR COmmITmENT 36-39 Insurance for all 40-43 A socially-responsible investor 44-47 Contributing to the real economy 48-51 A socially-responsible employer 52-55 CNP Assurances’s actions in the healthcare area 56. CLIENT RELATIONsHIPs, OUR PRIORITy 58-61 Strength that inspires trust 62-65 Bespoke solutions 66-69 Dynamic policy administration 70-73 Proactively building loyalty
though we are operating in an open and competitive market. The Board of Directors has carried out increasingly detailed examinations of our risk management strategy, with the support of its audit Committee headed by mrs stéphane Pallez. We monitored the quality of the internal control system and made sure of the Group’s steady progress in effectively managing f inancial, technical and operat iona l r i sks. Just because CnP assurances has an outstanding reputation in this respect, does not mean we shouldn’t continually review procedures to give policyholders and shareholders the guarantees they are entitled to expect. This is the best guarantee of preserving the CnP assurances brand’s trust equity in france and abroad. this is a major asset and a wel l-deser ved source of pride for the CnP assurances teams. i would like to thank all our employees for their commitment and skills. In a world full of risk, buffeted by economic uncertainty, our clients are right to count on CnP assurances, because we can offer them robust and reliable insurance solutions. this is clearly challenging for our contract managers, but the challenge is both exciting and worthwhile.
What is your vision for the Group following the publication of the 2012 results?
the irst thing to say is that considering last year’s turbulent environment, our results attest to the robustness of our business model. revenue was up, administrative expenses were kept under control and proit rose sharply, while our solvency margin held up well.
our business, providing protection and long-term security, goes to the heart of people’s needs which are growing all the time. our geographical positioning is balanced; we’re ranked no.1 in france, at the heart of a wealthy and mature european market, and we have a strong presence in Brazil, in a fast-growing south american market.
the employment situation and uncertainties about the future of governmentsponsored pay-as-you-go pension schemes in france, and the emerging middle class in Brazil are important structural growth factors in the family protection market in europe and south america. this will sustain growth in the personal risk segment, as well as in life insurance for a long time to come. our policyholders keep their policy for a long period – 12 years on average – because it serves as a protection in the event of an accident or loss of autonomy, as a means of topping up their income in retirement, and as a way of passing on capital to future generations. Client expectations are changing and diversifying; it’s up to us to come up with imaginative ways of meeting them.
Building stronger ties with our partners is a strategic priority for the Group. What does it cover?
our major banking partners have projects and ambitions, especially in the personal risk segment and for their afluent clients. as the supplier, it is our role to give them our complete support. this of course irst requires product innovation capabilities and fast and eficient
The personal risk and protection businesses are the strategic development paths in France and Europe. What are our strengths in these segments?
When it comes to building sales of employee beneits solutions to smes and micro-enterprises, and to local public sector clients, we will use our high level expertise and unique technical skills to leverage our close and longstanding ties with our mutual insurer and employee beneit institution partners. in europe, we now have expertise, tried and tested platforms and a marketing presence in southern europe. We plan to use these strengths to deploy term creditor insurance, personal risk insurance and premium savings offerings in europe based on an open distribution model, at a time when many distributors are looking to diversify their offers.
“Client expectations are changing and diversifying; it’s up to us to come up with imaginative ways of meeting them.”
each day we have to earn our policyholders ’ trust through our behaviour and our business ethos. We have a particular duty in this respect, because we are present at important or painful periods in people’s lives. We fully assume our corporate social responsibility, which also extends to our employees and the env i ronment. Promoting diversity, social dialogue, and sustainable development is part of our corporate dna. in addition, as a long-term investor, CnP assurances also contributes significantly to economic development, especially in france. our engagement in the real economy is demonstrated through our growing investments in businesses, infrastructure and property.
CNP Assurances renewed its governance in 2012, with the appointment of a new Chairman of the Board of Directors, a new Chief Executive Oficer, and an expanded Executive Committee with more women.
Board of Directors the Board of directors of CnP Assurances comprises 18 directors*, three non-voting directors and four Works Counci l representatives. The involvement of the main shareholders is complemented by the vision of qualif ied independent directors. The Chairman of the Board of
Caisse des Dépôts 40.54% Sopassure** 35.96% French State 1.11% Free loat 22.39% (Institutional and retail investors)
Operational management The Chief Executive Oficer 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 eight members representing the Group’s strategic functions: international operations, inance, partnerships, information systems, policyholder services and human resources. In its role as coordinator, the Executive Committee deals with all issues that extend across departmental boundaries.
CNP Assurances appoints at least half of the members of the Boards of international subsidiaries, guaranteeing consistent strategic management across the Group.
Directors Jean-Paul Faugère*, Chairman Caisse des dépôts et consignations, represented by Antoine Gosset-Grainville** Michel Bouvard Virginie Chapron du Jeu Anne-Sophie Grave*** André Laurent Michelson Franck Silvent Sopassure, represented by Marc-André Feffer Jean-Paul Bailly Jean-Yves Forel*** François Pérol Philippe Wahl The French State, represented by Ramon Fernandez Philippe Baumlin Marcia Campbell* Stéphane Pallez* Henri Proglio*
Works Council Representatives Valérie Baron-Loison Patrick Berthelot Pascal Oliveau Nadia Remadna
Strategy Committee Jean-Paul Faugère*, Chairman Marc-André Feffer Jean-Yves Forel** Olivier Mareuse**** Anne-Sophie Grave** Henri Proglio*
mEmBERsHIP OF THE BOARD OF DIRECTORs and Committees of the Board as of 31 december 2012 * Independent director based on the criteria speciied in the Afep-Medef corporate governance code ** replaced by Olivier Mareuse since 10 April 2013 *** Subject to approval at the Annual General Meeting on 25 April 2013 **** Subject to the decision of the Board of Directors on 25 April 2013
net insurance revenue generated in france was down 6.5% due to non-recurring technical factors, notably the impact of a reduction in regulatory valuation rates of interest. excluding these non-recurring factors, the year-on-year change was an increase of 8.6%, reflecting higher average technical reserves, improved loss ratios and more favourable financial market conditions. Net insurance revenue from International operations rose 8.9%, lifted by growth in Brazil where volumes and margins continued to trend upwards.
€21.60 per share at 31 december 2012 before dividend up 17.5%
Leader in france at the heart of a wealthy and mature european market. a strong position in Brazil in a fast-growing south american market.
savings 65% Pensions 13% Personal risk 7% term Creditor insurance 12% health insurance 2% Property & Casualty 1%
up 9.1% Attributable net profit stood at €951 million reflecting strong operating momentum and favourable financial market conditions, in particular.
A dividend of €0.77 per share will be recommended to shareholders at the Annual
General meeting on 25 April 2013, with a scrip option. The signatories of the shareholders’ agreement have stated that they intend to exercise this option.
Percentage of inancial assets* managed according to esG criteria: 80% at 31 december 2012. investments* in sri funds: €4 billion. number of traditional savings contracts with a unit-linked formula incorporating sri funds: 75,200.
A responsible employer all Group companies share four basic principles: – respect for human rights – freedom of association and the effective recognition of the right to collective bargaining – support for employees throughout their careers – a commitment to equal opportunity. total number of Group employees: – CnP assurances: 3,119 – Consolidated subsidiaries**: 1,723.
An environmentally-responsible company a inancial services company like CnP assurances has little direct impact on the environment. nevertheless, we do everything possible to reduce our environmental footprint, primarily by effectively managing the three main direct sources of greenhouse gas emissions: paper use, for day-to-day administration and policyholder correspondance, business travel and ofice building management.
CnP assurances employee, internal operations, down by 10% compared with 2009. Carbon sinks (CnP assurances woodland assets) in 2012: 363,035 tonnes of Co
CnP assurances’s sustainable development commitment has been recognised by sri rating agencies. vigeo*** ranks it among the top insurance companies in its european listing. 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, and the Group’s inclusion in the ethibel excellence investment register and the aspieurozone120 was conirmed during the year.
A transparent information policy CNP Assurances is committed to providing shareholders – and the financial community in general – with comprehensive, transparent, understandable, easily accessible inancial information. Information sources include inancial and corporate documents, shareholder newsletters and the www.cnp-finances.fr website comprising separate sections for individual shareholders and institutional investors.
Since the stock market lotation in October 1998, the share price has gained 108%, compared with a rise in the CAC 40 index of 16.7% and a 32.1% decline in the Dow
for people looking to inance a long-term project, secure or pass on capital, protect their family against life’s hazards, support their children financially, or increase their income in retirement, life insurance is the obvious long-term savings solution, especially in times of recession or uncertainty. an ipsos* survey carried out for the fédération française des sociétés d’assurances (ffsa) at the start of 2013 confirms this: 53% of french people intend to continue saving over the next six months. 74% cite security as the top priority, and favour the Livret a savings accounts and l i fe insurance. 92% want increased certainty about the tax treatment of life insurance, and 62% of people with life insurance policies say that an increase in tax would discourage them from saving.
Life insurance is the most popular long-term savings product in France and the best choice for savers who want to prepare for or secure their future.
“Positive net new money in life insurance thanks in particularly to strong sales by La Banque Postale.”
Life insurance, a solution for everyone sits tax-advantaged status, the security provided by traditional savings products with a capital guarantee and a guaranteed yield, and the option of transferring savings between traditional and unitlinked funds to tap the proit potential offered by the inancial markets, make life insurance an unrivalled savings instrument. it is the ideal solution to pass on capital to a family member or any other person in a tax eficient manner. We work closely with each distribution partner to develop and ine-tune products that are geared to the proiles of their respective clients in terms of age, appetite for risk, income level and evolving needs. our prudent inancial management and more than 150 years of experience spanning good times * source: an ipsos survey of a representative sample of 965 french people aged 18 and over, carried out on 4 and 5 January 2013.
OPTImIzING WEALTH mANAGEmENT véronique PoLGe-LeCLerCq, head of the wealth management section of the business development department
What criteria are used for analysing a client’s assets? We take into account the client’s proile, family status, professional situation, and assets. There are a far wider range of situations nowadays: family units can be more complex, longer life expectancy affects decisions to pass on capital to future generations, and intergenerational solutions are being developed. For less complicated situations, the possibility of a simpliied review allows more people to beneit from our advice.
What are CNP Assurances’ strengths? Our expertise is particularly valued by individual clients, as well as our personal asset reviews. Some clients ask their notary or lawyer to take a look at the review, with very positive feedback. Personal asset reviews are a high valued added service for our distribution partners. They generally ask us to come to their ofice to present the review to the client, adding another dimension to their own inancial advice.
and bad set us apart and add to the security of france’s most popular savings vehicle.
Financing a dream home With more than 12 million insureds and over 30% of the market, CnP assurances is france’s leading provider of term creditor insurance. in 2012, the 17% decline in home purchases in france caused a 32% drop in the number of bank loans for new properties and a 24% fall for pre-owned properties. despite the challenging environment, revenue from term creditor insurance stood at €2,581 million, up 4.7% compared with 2011. CnP assurances sought to strengthen partnerships and ind new sources of growth to sustain its leadership position. new solutions were developed that increase the added value of its offer, such as i ts renters insurance contract launched at the start of 2013 in partnership with Caisses d’epargne, which
“CNP Assurances is no. 1 in term creditor insurance, with 30% of the market.”
demand for protection and security solutions is constantly rising due to demographic, socio-political and economic factors. in france and other european countries, whether the markets are mature or still emerging, and in south america (especially Brazil), personal risk insurance is a key requirement and is at the core of CnP assurances’s product mix. some 45% of our revenue is generated by protection and personal risk products, while 55% comes from the savings and pensions businesses. With our experience as an insurer for every income bracket, and the vitality of our partners, we are working to meet this growing social need.
A formula for every proile in france, the Group covers all of life’s everyday risks with products such as health, accident, death and long-term
CNP Assurances’s personal risk solutions protect policyholders at dificult times in their lives. As well as inancial support, policyholders can be secure in the knowledge that they will receive attentive and eficient personal support.
“Personal risk insurance is a key requirement and is at the core of cnP Assurances’s product mix.”
How does online claims reporting work? Policyholders can report claims in a few clicks of the mouse, as well as being able to check what risks are covered and for what amounts, by downloading and illing out the form online, and submitting the ile with the necessary scanned receipts and other documents attached. They are then sent a conirmation and can track the status of their claim online.
What services are being lined up for the future? We are testing out a service to keep policyholders informed about the status of their complaint by SMS. From 2013, CNP Assurances will be able to integrate this service into its complaints process.
What can you tell us about Caixa Seguros’s venture into the health insurance market? Having a supplementary health plan is every Brazilian’s dream, second only to owning their own home. The Brazilian health insurance market has huge potential. For example, only 10% of Brazilians have insurance covering dental costs, leaving around 180 million potential clients. We have carried out an in-depth study of the market, in order to create innovative value-added products for companies and individuals. Our health and dental insurance solutions include a wide range of services from home care to support for families in dificulty.
largely untapped insurance segment for Brazilians, offer strong growth potential for these personal risk solutions. in the space of just a few months, around 30,000 policies have been taken out by individuals, while a further 230,000 insureds are covered by employee beneits contracts purchased by a dozen companies. to build on this success, Caixa seguros is signing up new partners and investing in mass distribution channels such as lottery sales booths and via the internet.
standing alongside policyholders in dificult times in france, when policyholders are faced with an unforeseen event, we listen to their problems and provide support that goes beyond just a inancial settlement. in the event of the policyholder’s death, as well as covering the costs we can insurance contract, and Prévialys, a personal accident insurance contract, while the Caisses d’epargne network sold over 240,000 new contracts in 2012, its best ever performance in this segment.
“since it launched its personal risk business in 2010, caixa seguros has gained 800,000 clients.”
A strategic priority on a number of counts Personal r isk insurance is one of CnP assurances’s four strategic priorities for the coming years, because it responds to the growing demand for security. there will be a drive to enhance the offering in order to strengthen our two major partnerships with La Banque Postale and Caisses d’epargne in france, and will be deployed in europe based on an open distribution model to harness the growth potential that exists across the continent. the group insurance version is also at the core of efforts to build revenues in the sme/ micro-entreprise and local authority sectors, with employee beneits contracts sold through our longstanding mutual insurance and employee beneits institution partners. the microinsurance version is one of the drivers being used to strengthen our position in Brazil, by capturing the growth potential offered by this country and, more generally, to seize opportunities in Latin america.
as people live longer, they want to make the most of their retirement, but at the same time they have to be able to pay for it. Private pension plans have become popular of late, because of the increasing awareness among french people of the precarious inancial position of unfunded PayG pension schemes and the need to make private provision for retirement. at the same time, companies are setting up pension plans for their employees, in order to attract and retain the best talents, or to take advantage of the related tax beneits or simply to fulil their corporate social responsibility.
Retirement is an excellent reason to save. CNP Assurances offers all the solutions necessary for clients to secure their future, based on over 150 years of experience in this segment, a particularly powerful advantage in times of recession.
27% of comPAnies in frAnce offer a suPPLementary Pension PLan Csa 2010/ffsa survey.
What is your assessment of 2012? We’ve not seen a year like this in the last ten years. Clients had many reasons to be worried. Lower yields, fears of fall-out from the sovereign debt crisis, the recession, the tighter property market, and uncertainty about the tax treatment of life insurance products encouraged clients to either put off making a decision until the situation righted itself or, on the contrary, to make snap decisions in reaction to events. At the same time, aggressive marketing techniques were stepped up, with insurers racing to slash front-end loads, and life insurance companies also faced competition from on-balance sheet products offered by banks.
The CNP Trésor network weathered the sharp decline in new money better than the market, highlighting the added value of its territorial organization and its local positioning.
The dependency ratio is widening. In 1970, there were three working people for every non-working person aged 60 and over, whereas the ratio is now more like two to one. By 2040, the ratio is set to reach 1.5 to one. According to the TNS Sofres 2011 survey on young professionals’ attitudes to retirement, 63% of respondents in the 35-to-44 age bracket expect to receive a 60% replacement rate when they retire, but most respondents consider that they will need a 79% rate, making a compelling argument for this age group to save more.
“in spain, new money invested in cnP bvP’s (barclays vida y Pensiones) personal pension plan reached a record high in 2012.”
By 2040, there are set to be between 1.7 and 2.2 million dependent seniors in france, compared with close to 1.2 million in 2010. announced by the health minister, the estimates were calculated using var ious assumptions about changes in the number of seniors, life expectancy and dependency ratios. Potential overall solutions to long-term care needs are the topic of a national debate in which CnP assurances has decided to take an active role.
in order to gain the critical mass needed to effectively pool risks, we are organising solidarity between generations through a basic system of obligatory contributions, supplemented by optional personal contributions set by each individual based on his/her assets and end-of-life income. the long-term care cover included in mGen’s health insurance policies since 2010 is based on this model, providing immediate cover for some 2 million people. optional personalised cover was added in 2011.
Assistance at the heart of insurance CnP assurances has developed a complete range of services integrated into its personal risk, savings and long-term care contracts, covering total and partial loss of autonomy, financial support, assistance with day-to-day tasks, and carer support. in 2000, the Group created filassistance international, the irst company in the market to specialise in local personal assistance services. filassistance offers services covering the whole assistance spectrum, ranging from the most 4 million PeoPle Provide day-to-day Care for a famiLy memBer
How does Filassistance’s medical, psychological and social support platform work? It is run by a team of 30 assistance managers, social workers and psychologists, with the support of doctors, and takes phone calls 24 hours a day, seven days a week. 45% of the calls come from subscribers to the helpline service, and 55% are from policyholders whose personal risk contract includes assistance services, for the implementation of home care following hospitalisation, for example.
What do subscribers appreciate the most? As well as the safety and emergency help advantages, having a presence welcome to filAssistAnce CaroLine de rosanBo, head of the team of social workers from filassistance’s medical, psychological and social support platform and human contact is highly valued. 60% to 70% of calls have an element of “sociability”. With Filassistance, you have someone knowledgeable to talk to, who takes the time to listen and understand.
What is the role of the social workers? Calls sometimes allow the assistance manager to detect wider requirements or a need to link up with the family. In these situations, the ile is transferred to a social worker, who calls back the person or the carer to provide advice, or point them in the direction of more suitable care.
basic (such as help with day-to-day tasks, healthcare-related services and funeral assistance), to the most innovative (such as long-term care, pension and helpline-based assistance services). these services are designed to make life easier and combine inancial beneits, information, preventative care, support, coordination, and help with inding practical solutions and inancing. Âge d’or services, which was acquired by CnP assurances in 2002, lends its support through a network of 138 franchisees and over 1,300 specialized caregivers, working with 40,000 clients. the whole network was given nf service – service aux Personnes à domicile certiication at the end of 2012. the Cap handéo label, which guarantees secure care for frail people, is currently being deployed. in 2012, CnP assurances and swiss Life merged their assistance businesses to form a new group*, bringing together the complementary expertise of local personal assistance services specialist filassistance and Garantie assistance, which is especially present in day-to- day assistance services (automobile, home, travel).
A broad spectrum of innovative services Putting assistance at the heart of the insurance business allows policyholders to be informed and supported before the occurrence of the risk. in 2012, filassistance expanded its offer, adding the filassist Cardio + personalised cardiovascular r isk prevention and health protection education module. With this programme, the Group helps prevent cardiovascular risks, the leading cause of illness and death for the over65 age group. in the case of a loss of autonomy, carers are affected too, and CnP assurances has integrated support services for carers into its personal risk and savings contracts to reflect this. Personal risk policyholders and group insurance beneiciaries who ind themselves caring for a loved one are immediately covered under these programmes.
“the Âge d’or services network was given nf service – service aux Personnes à domicile certiication at the end of 2012.”
* assuristance Group, owned 66% by CnP assurances and 34% by swiss Life.
24/7 heLPLine aCCess to a mediCaL, PsyChoLoGiCaL and soCiaL suPPort team over 7 million BenefiCiaries of fiLassistanCe serviCes in 2012
Our offerings are designed to enable as many people as possible to obtain insurance cover. Each range includes afford-
Group to adopt a unique approach to the market, by making protection affordable for the most vulnerable members of the population. It’s an approach supported by all of the Group’s partners.
“the group has a mission to help policyholders to protect their future at a reasonable cost.”
able products for clients in every income bracket, with premiums starting at very small amounts.
Promoting extended protection So that people who have or have had serious health problems can also purchase a home or take out a loan,
CNP Assurances participated actively alongside France’s other insurers in the discussions to improve the terms of the
commitments shared throughout the group The same values of mutual support are being promoted by the international subsidiaries, taking the fight against exclusion into new territories. In Europe and Latin America, the subsidiaries are working to make protection against the risks of everyday life more accessible and affordable.
Brazilian subsidiary, Caixa Seguros, are 20 million Policies SOLD BETWEEN 1995 AND 2012 BY CAIXA SEGUROS, A BENCHMARK PROVIDER OF INSURANCE COVER FOR LOW INCOME FAMILIES IN BRAZIL
0.2% of term creditor insurAnce APPLICATIONS REJECTED BY CNP ASSUrANCES IN 2012
A success Among low income fAmilies in brAzil a prime example. the first Brazilian insurer to offer protection to people with low incomes, with the 1995 launch of the Fácil Acidentes Pessoais voucher, Caixa seguros has become a benchmark in affordable insurance with over 20 million products sold in this segment by the end of 2012. it is also only the second insurer to sell its products through outlets located in the favelas. in this country of 194 million inhabitants, the traditional insurance market comprises the roughly twenty million members of the middle and upper classes. in recent years, some one hundred million more people have joined the monetary economy, but with very low incomes. Caixa seguros uses the exceptional network of its partner, Caixa econômica federal – Brazil’s second largest public bank – which includes 12,500 lottery sales booths in the favelas, to distribute savings and insurance products for just a few reals per month. its success among low income families is the result of a strategy combining financial viability with social responsibility.
“the group is frequently invited to participate in the government’s consideration of new risks.”
We are convinced that including socially responsible investment criteria in the investment selection process helps to create value and optimise the yield/longterm risk trade-off. at the same time, one in two people in france want to make meaningful investments by applying a combination of financial and non-financial selection criteria. It’s no surprise then that we are firmly committed to our socially responsible investing strategy.
A pioneering commitment As early as 2003, we pledged to uphold the United Nations Global Compact which lists ten core values in the areas of human rights, labour standards, the environment and anti-corruption that companies are asked to embrace, support and enact within their sphere of influence.
“52% of french people say that social and environmental performance are high on the list of criteria considered when selecting an investment vehicle*.”
How do you incorporate ESG criteria? Incorporating environmental, social and governance criteria in the investment selection process is a new development for the bond portfolio, but we can draw on the experience gained since 2006 with the processes set up for the equity portfolio. It’s a question of weights and measures. We don’t exclude a company without hard evidence provided by a detailed analysis. In this regard, we also use the analyses performed by our asset managers, Natixis AM and La Banque Postale AM for equities and corporate bonds, and NGO assessments for government bonds. We then decide to exclude or scale down exclude or drAw Attention to esg issues, A reAsoned choice VINCENT DAMAS, head of the investment and financing rules department our exposure to the companies or governments with the lowest ESG scores. This being said, we may sometimes decide to invest in a company with a low ESG score, if we believe that we can get it to improve, for example by making its management aware of the need to achieve a lasting reduction in workplace accidents. Governments have been excluded due to their failure to respect human rights and uphold democratic principles. Naturally, we also exclude arms manufacturers whose products include land mines or cluster bombes, companies that employ child labour and irms that speculate in agricultural commodities.
across all asset portfolios, including own funds portfolios, drawing on the expertise of our two main asset managers, natixis asset management and La Banque Postale asset management, which are also firm supporters of SRI strategies. We immediately set the bar high, by making the exemplary and pioneering decision that the new approach would be applied not only to unit-linked portfolios and to investment funds but to all financial investments, including property and forestry assets.
80% of assets meet esg** criteria ESG investing consists of looking beyond financial performance to assess investment opportunities according to environmental, social and governance criteria.
Anti-corruption 10. Businesses should work against corruption in all its forms, including extortion and bribery.
French economy, or their contribution to making France attractive to foreign investors, or their ability to create jobs.
Since 2008, private equity investments have also been selected based on a combination of financial and ESG criteria. Particular attention is paid to governance standards and the efforts being made to drive improvement. We invest in all sectors of the economy, from
sociAl resPonsibilitY, OuR COMMItMeNt €1.8bn in PrivAte equitY funds (BALANCE SHEET VALUE), CORRESPONDING TO €3.87bn in mAnAged Assets AT END-2012 €50bn invested IN FRENCH COMPANIES
How are private equity investments selected? We don’t invest directly in the companies, but in private equity funds. The portfolio comprises units in more than 240 funds in Europe (80% of the total) and the United States. We apply several selection criteria, looking at the funds’ investment strategy, the quality of their teams and their ability to partner the investees’ development over a long period. We also apply a formal procedure to check that their methods are in keeping with our Global Compact undertakings. Our objective is not limited to inancial leverage, we aim for value creation for the beneit of shareholders and the company alike.
supporting France’s development At 31 December 2012, we held €47 billion worth of French government bonds, helping to finance public sector projects and support the country’s economic growth. These government borrowings play an essential role in regulating the economy during crisis periods.
We also hold over €9 billion worth of bonds issued by public sector enterprises and government agencies. For example, we contribute to the development of French public transport networks by purchasing debt issued by
and RATP, and to improvements in the country’s infrastructure, by investing in sOCIAL REsPONsIBILITy, OuR COMMItMeNt prime business district in the western suburbs, and of f ice complexes in
Montreuil, a more affordable suburb to the east of the capital, and in Lyon. The properties are managed by specialist firms based on strict specifications.
Orléans and Bègles shopping centres, along with convenience stores and hotels in Marseille.
sustainably managing forests We have been investing in forestry assets for fifty years and CNP Assurances is now France’s largest private owner of woodland with over two hundred woods and forests located mainly in the northern half of France and in the Aquitaine region. In all, at the end of 2012, these assets represented more than 54,000 hectares and were valued at an estimated €368 million.
Dépôts et Consignations, using methods that protect their biodiversity and proactively plan for the impact of climate change, and have been certified by the
CnP Assurances had 4,842 employees at 31 December 2012. The workforce has remained stable overall for several years and the turnover rate has stayed low – below the industry average –
attesting to employees’ commitment to the Group. Priority is given to partnering employees throughout their career, with training representing one of the pillars of the Group’s human resources strategy. This is important in order to keep pace with the insurance professions’
growing technical complexity, resulting from new financial and legal regulations, and it also helps to ensure high levels of partner and policyholder satisfaction.
keeping pace with changing professions Career management processes have been upgraded and performance reviews are now more structured, giving employees a regular opportunity to discuss their career path and explore promotion opportunities. In 2012, 500 employees took part in reviews tailored specifically to their needs, or as they began the second or third stage of their career, or in connection with a promotion, or upon returning to work after a long absence.
CNP Assurances spends the equivalent of over 5% of total payroll on training to keep pace with changing insurance professions, with 76% of employees trained in 2012. Courses focused on the Group’s core skillsets – sales and marketing, insurance techniques and risk management in preparation for the transition to Solvency II. The Management
School provided training to some thirty new managers, while senior managers took part for the first time in a specific co-development system.
CNP Assurances’s employees are its greatest asset. The Group helps them acquire or improve their skills in response to the increasingly high quality standards and growing technical complexity that are a feature of the insurance business, cultivates diversity and keeps a close watch on the quality of working life in France and in the international subsidiaries.
A womAn in the sPotlight marie-françoise resve, Client actuarial analyses director
We are constantly looking for the ideal position between managing risks and underwriting margins on the one hand and sustaining the client relationship through an attractive offer on the other.
The transformations underway in corporate life and in society as a whole can make employees feel under pressure. What is CNP Assurances doing to address this issue? Since 1995, CNP Assurances has been taking action to prevent and protect against stress, moral and sexual harassment, and more recently, psychosocial risks within the organisation. In 2012, we chose the theatre as the medium for raising awareness about these issues among some 2,500 employees. The portrayal of everyday situations brings the audience face to face with the risks and the ways of addressing them. Encouraged by the actors, quAlitY of life in the workPlAce, Act 1 anne PeiGnaux, head of employee relations interaction among the audience members reinforces the message that we all have a role to play in preventing psychosocial risks within the organisation. We’re all concerned and jointly responsible for what happens and we should all be able to act. This initiative proved to be popular and will be continued in 2013.The Group will step up its commitment to combating these risks, by creating tracking and warning indicators, and performing psychosocial risk diagnostics among all employees. This is more than a best-efforts obligation, we have to achieve results, in the same way as in other areas of employee health and safety.
“more than 600 employees trained in the new risk culture linked to solvency ii.”
solvency ii, continued the dedicated training plan covering changes in work processes, the development of cross-functional information flows and information system upgrades, enabled the more than 600 employees concerned by solvency ii to embrace the insurance business’s new risk culture. in addition, solvency i i seminars were organ ised w i th employees of the subs id iar ies in europe and Latin america. as planned, technical training sessions will continue to be held up until 2014.
The Human Resources department has been reorganized by groups of skillsets to promote closer relations with managers and their teams for the preparation of internal transfers, the development of new ski l ls and the def inition of training needs.
We take care to ensure that management decis ions and interpersonal relations are completely discrimination -free. This is particularly the case in regard to older employees (aged 55 and over), who represent 20% of the workforce. In 2012, a partnership was establ ished with a non-prof it organisation with the aim of helping o lde r wo rke r s to f i nd j obs w i th
gender balance is improving One of our priorities is to reduce salary and promotion gaps between men and women. As announced in the gender equality agreement signed at the end of 2011, a gender equality advisor has been appointed to oversee the deployment of measures to promote equal treatment of men and women, from hir ing and throughout their career within the Group.
Created in 1993, under the aegis of the fondat ion de france, the CnP Assurances Foundation became a corporate foundation in 2011, with a budget of €4 million over five years to pursue its public health mission.
From the outset, the Foundation has channelled its resources into pain management and, more recently, cardiac emergencies, as a natural extension of
The Foundation relies on the expertise of its Executive Committee, which draws half of its members from the medical sector, to select projects.
It also actively supports projects put forward by its employees. All projects supported by the Foundation are subject to monitoring and evaluation. In 2012, the Foundat i on a l l oca ted €770,000 to these initiatives.
Pain prevention and management Improving pain management at al l stages of life, both in hospitals and for out-patients, is the primary purpose of the Foundation. In 13 years, it has supported over 220 projects led by medical teams and associations, to the tune of €8 million including 19 in 2012, costing €268,000. Here are some examples: The Foundation teamed up with the
since 2011, it has been supporting a consultation/mediation procedure to advance pain management for young patients suffering from sickle cell disease, a genetic illness caused by mutations in haemoglobin. this has led to fewer hospitalizations. in 2012, the foundation financed relaxation workshops for patients suffering from chronic pain, organized by the
cardiac emergencies The Foundation’s second area of outreach is funding projects to improve emergency CPR and assistance provided to heart attack victims. It provides funding for the deployment of defibrillators in public places, and gives training in how to use them correctly.
In four years, the Foundation has helped over 1,800 local authorities (355 in 2012) to deploy more than 2,000 defibrillators (704 in 2012) and has allocated over €1.5 million to the programme (almost €0.4 million in 2012).
civic engagement from employees The Foundation also offers backing to health projects in which the Group’s employees are personally involved. In 2012, it selected five such projects, including acquiring six all-terrain wheelchairs for children with multiple disabilities at a regional learning facility, or publishing a newsletter for Syndrome
Caixa Seguros’s societal commitment is seen through the Jovem de Expressão programme. Conducted in partnership with UNESCO and cultural centres, it contr ibutes to preventing violence among young people in poor regions, by offering them community therapy workshops and activities such as dance and street basketball. In summer 2012, the young people involved participated in the sixth edition of the Brazilian Public
€1.5 million invested AND OVER 2,000 DEFIBRILLATORS DEPLOYED IN PUBLIC PLACES
The CNP Assurances Foundation has signed a three-year partnership agreement with the ESPCI ParisTech (Ecole supérieure de physique et de chimie industrielle de Paris) Georges Charpak Endowment Fund. Researchers there are studying an ultra fast ultrasound imaging technique that would enable early detection and precise pinpointing of abnormal electrical activity in the heart. These arrhythmias affect more than a million people in France. The diagnostic support application will be able to distinguish between minor and serious problems, which current techniques such as MIR and ECG scans do not allow. A 3D ultra fast scanning prototype tool is set to be ready by 2015. The Foundation is co-inancing this innovative programme, to the tune of €180,000.
The Staying Alive 3D application, which was developed with funding from the Foundation and offers a 3D experience, aims to teach people to have the right instincts and to know what to do if someone goes into cardiac arrest. As a bystander, you have just four minutes to react, phone the emergency services, perform CPR and use a deibrillator. The application has clocked up 250,000 connections since it was launched to mark World Heart Day in 2011, and 30,000 people have completed the process. Foreign language versions of the application are being developed, as well as a new role play set in a railway station. Heart attacks occur most frequently in the home, in the workplace, or at train stations and, in 80% of cases, there are no medical personnel in the vicinity. This means that everyone needs to know what to do.
“the foundation supports health projects in which employees are personally involved.”
58-61 strength that inspires trust 62-65 Bespoke solutions 66-69 dynamic policy administration 70-73 Proactively building loyalty
(FFSA), CNP Assurances, the market leader, reported positive net new money of €145 million. The vitality of its distribution partners, particularly La Banque
Postale, and its strong group insurance franchise were the two main factors that allowed the Group to outperform the market.
Net profit rose by 9.1% during the year, chiefly reflecting growth in our personal risk and protection (term creditor insurance and health insurance) businesses and the increase in average technical reserves, up 2.2% to €292 billion in 2012. Cost discipline also played an important role in achieving this result.
Group’s robustness and its ability to withstand market fluctuations while retaining its stakeholders’ trust.
A conservative investment policy France’s no. 1 personal insurer for more than 20 years, CNP Assurances
at end-2011 and investments in bonds were increased to nearly €20 billion, of which half corresponded to corporate bonds (i.e. not including bonds issued by banks). relecting this shift in investment focus, CnP Assurances carried net investments of €1 billion in real estate and €200 million in infrastructure projects at the end of 2012.
strong sustainability indicators CNP Assurances increases its reserves whenever possible to ensure that it will be able to meet its financial commitments to policyholders and to smooth policy yields over time. In 2012, nearly €500 million was allocated to the policyholders ’ surplus reserve. This represented an increase of more than 17%
on the prior year, bringing the total to a very high level of some €3.4 billion. The
A reinsurance agreement is a contract between two insurers whereby one sells a portion of its risk to the other in exchange for a fee, without the insureds being involved. CNP Assurances’s reinsurance business dates back to the 1980s when employee beneits institutions sought to lay off part of their risk on insurance companies. As a subsidiary of the Caisse des Dépôts Group with values rooted in the public sector and in its vocation as a personal insurer, CNP Assurances is the ideal partner for employee beneits institutions offering health, death/disability and long-term care cover. In 2012, the Group was selected to act as reinsurer for the unemployment, temporary and permanent disability and death insurance contract covering the 220,000 professionals working for in-home personal service providers that was signed on 1 January.
the ongoing diversiication dynamic A key investor in the French economy, approached to purchase loan portfolios from banks as well as commercial proper ty, infrastructure and aerospace financing portfolios. Such assets are well aligned with some of our very long-term liabilities and deliver potentially higher returns than more liquid assets, such as bonds for example. The Group has acquired some of these assets, exercising a characteristically high degree of prudence. The transactions are carried out by asset managers that share our interests and that deploy teams with extensive experience in valuing bank loans and managing receivables.
Partnering mutual insurers for over 60 years From their very beginnings in 1945, civil service mutual insurers chose to insure the i r dea th /d i sab i l i t y r i s ks w i th
CNP Assurances. This led us to create a dedicated team of around 60 employees. Today, that team has been split into two client service units, one devoted to civil service mutual insurers and the other to local authorities and hospitals as well as to the self-employed and general mutual insurers.
An expert in group insurance, CNP Assurances designs employee beneit, pension and term creditor insurance products that are aligned with the needs and budgets of companies, local authorities, mutual insurers, non-proit organisations and banks, which it partners to deliver high-quality protection.
A targeted approach to companies and local authorities The Companies and Local Authorities partnership centre at CNP Assurances works with companies, local 23% of consolidAted revenue IS FrOM GrOUP INSUrANCE BUSINESS
that are insured or reinsured by CNP Assurances. France’s main civil service mutual insurers own the MFPrévoyance subsidiary in partnership with CNP Assurances.
20,000 locAl Authorities and hospitals put their trust in CNP Assurances to manage their employee benefits and pension solutions.
We regularly respond to calls for bids f rom large cl ients, including CAC
” Growing demand for supplementary benefit plans is not a crisis-led phenomenon, but a deep, structural trend. it has picked up momentum since the signature on 11 January 2013 of the national multi-employer agreement “for a new economic and social model that enhances business competitiveness and safeguards employment and employee career paths”. the agreement provides for all private-sector employees to be covered by private health insurance. attentive to the changing landscape, we can leverage our experience and technical knowledge in cooperation with our main partners to facilitate the implementation of these new solutions, which are likely to significantly alter the face of the group insurance market.
the advantages of deep local roots A long-standing partner of France’s local communities, both large and small,
CNP Assurances’s experts were mobil ised alongside those of Mutuel le
Nationale Territoriale (MNT) among other partners to improve the employee benefits offer for civil servants through participatory agreements or special ly certified contracts.
Local public service providers are a familiar client category for CNP Assurances.
A shAred vision of the client Jean-JaCques LuChez, industrialisation manager Policyholder services can print copies and view their personal data whenever they wish through our partners’ websites. The shift to paperless solutions has allowed us to absorb the growth in business volume, from 11.7 million contracts to 15.3 million in the past seven years, and avoid an exponential increase in traditional mailings. In 2012, the four policy information mailing campaigns organised in accordance with French regulations represented some 15 million letters (corresponding to around 124 million pages). At the same time, 4.6 million letters were sent electronically. In this way, we are reducing our postal costs and the time spent on tasks that add no value, leaving our teams better able to concentrate on their core responsibilities: client advice and relations.
client relAtionshiPs, OuR PRIORIty offer end-to-end quality of service across all distribution networks and channels, whether in a branch or by telephone, fax, email or sms. to meet this goal with ever greater effectiveness, its teams are working simultaneously on three strategic projects. the first project entails a detailed review of the main individual insurance contract administration processes associated with underwriting, the life of the contract and policyholder death. Its goal is to organize tasks more efficiently and prioritize information systems upgrades.
The expected outcome is faster processing time, greater transaction security, productivity gains and more targeted, value-enhancing use of resources.
As a primary short-term benefit, it should allow the status of client insurance applications and claims to be monitored in real time. Launched just over a year ago, the project is about to enter the implementation phase.
The third project focuses on raising the level of service to meet the demands of high net worth clients, a strategic target for our partners. Initiated in early 2012 for our two main partners, it is due for first-phase implementation in 2013.
In 2012, various new functions were added to the Partages workstation application used by La Banque Postale, including the production of documentation for personal risk insurance and revenue riders, and for scheduled partial withdrawals. The application is now capable of offering 127 custom configurations based on a total of 24 products and 16 administrative tasks relating to policy purchases, recurrent single premiums, transfers between funds and more.
In 2012, a total of 2 million operations were performed in branch using these workstations, up 62.5% on 2011.
decide how and when to access their data and carry out transactions, and get answers in real time. they have come to expect the availability of multi-channel solutions. online services platforms developed by CnP Assurances are transparently incorporated into our partners’
CNP Assurances is Brazil, one of our strategic growth drivers. The Group is using online sales to reach the roughly 20 million people that make up Brazil’s middle and upper classes and are fuelling Caixa Seguros’s expansion. In early 2013, the Brazilian subsidiary launched an online-exclusive line of dental insurance products, with great success.
Unique in the market, CNPNet is an extranet application dedicated to term creditor insurance. It allows partner banks to record in-branch sales in real time, with 70% of questionnaires processed immediately, and the remaining 30% handled in less than 48 hours following receipt of the client’s application. CNPNet cuts transaction processing time by 75%, leading to greater client satisfaction and better sales results for the advisors.
“quality of service is now a top priority in the life insurance market.”
The external call centres were selected based on their compliance with France’s
Attuned to the needs of our policyholders and supportive of our partner networks, we deploy a thoroughly client-focused business model. This explains why our teams work day in, day out to retain everyone’s trust, from the head office to the call centres, from the office to the front lines.
CNP Assurances’s call centre agents primarily deploy their expertise to deal with particularly complex inquiries and answer questions from advisors in the partnership networks.
The call centres are often the irst point of contact for people who have taken out an insurance policy. In this sense, we are the interface for CNP Assurances; we hear from policyholders and partners irst hand. Our strength is being able to answer any type of question about any product, while at the same time handling all the technical, legal and tax aspects of the contract concerned.
How do you serve the distribution partners’ needs? We work with our partners’ sale force managers, primarily for La banque Postale, with the aim of encouraging and supporting their selling performance. We do this by taking a holistic approach to the client, similar to that used by the inancial advisors. We give them the language they need to talk about the major beneits of insurance: protection for loved ones, pensions, savings for personal projects and inancing of long-term care needs. Our deep insurance knowledge is an advantage, but it’s our overall understanding of its economic and inancial relevance that sets us apart. Life insurance is part of a long-term inancial strategy, with short-
A holistic view of insurAnce Jean-Pierre Lafont, regional Business development manager, Western france, Business development department and long-term savings playing complementary roles to inance speciic needs and projects. The advisor’s job is to strike the right balance between satisfying clients’ immediate needs and making their long-term plans a reality. We don’t sell products; we sell solutions to client concerns, which are also societal concerns. This holistic vision of client needs and the importance of broadly applicable solutions is a unique attribute of CNP Assurances. We also help our partners to analyse their potential portfolio penetration rate, identify needs that are not yet covered and come up with optimised solutions. This strategy creates ideal conditions for delivering high-quality service, increasing value for clients and retaining their business.
supporting the partner networks Cementing relationships with our major partners is a strategic objective in France, but also in Brazil and in Europe in general. Agreements signed with the distribution networks set out the partners’
Indicators are expressed in number of days or hours and are tracked on a daily basis. This continual improvement process places us on a par with the very best Italian market players in terms of service quality.
In 2000, CNP Assurances initiated a certiication programme to continually improve quality of service over a period of several years. New procedures are included in the programme every year, while existing certiicates are renewed. For example, all of our term creditor insurance operations, including BtoB relations with distribution partners, are certiied compliant with ISO 9001:2008 standards. In 2012, the programme was extended to beneiciary services across distribution networks and administrative processes for new products. Other operations covered by the programme to date include i) client relationship management helplines (La Banque Postale and CNP Trésor); ii) annual policyholder information preparation and production; and iii) CNP Trésor cradle-to-grave policy administration. The certiication programme has been revised to cover all aspects of the business such that a single certiicate may be earned by all of CNP Assurances’s administrative activities starting in 2015.
www.toutsavoirsurlassurancevie.fr this website explains the basics of life insurance using instructional videos.
www.cnp-inances.fr comprising a section for individual shareholders and another for institutional investors
2012 CSR RePORt our indicAtors april 2013 – CnP assurances – Communications and Corporate sponsorship department – design and production – Photo credits: Getty images (cover, p. 16, 20, 28, 31, 63), Bertrand meunier / tendance loue (p. 34), olivier Culmann / tendance loue (p. 42), Philippe eranian pour CnP assurances
www.cnp.fr Visit the CNP Assurances website to learn more about our subsidiaries, businesses, advertising ilms and more.