04 - Insuring all our futures 06 - Viewpoints Jean-Paul Faugère and Frédéric Lavenir 10 - Two continents, two growth drivers, one ambition 12 - Four strategic goals 14 - 2014, solid financial performance and business transformation 16 - A year of change 17 BUILDING A CLIMATE OF CONFIDENCE
40 - Engaged governance 42 - Sharing our success with stakeholders 44 - €126bn invested in the economy 46 - The business units at work 50 - Mobilising talent 52 - Contributing to the public interest 54 - Find out more about CNP Assurances 2 – CNP Assurances – 2014 Annual Report
What can you say about the 2014 results that have just been presented to shareholders? Frédéric Lavenir - They’re good. Our total revenue rose 3.2% and net profit was 4.8% higher at €1,080 million despite an unfavourable environment.
The low interest rate environment is a challenge for insurers. How is CNP Assurances positioned? Frédéric Lavenir - While last year’s drop in interest rates was unprecedented, we had already started to adapt to the low interest rate environment in the expectation that it would last for some time. We adjusted our investment strategy and further increased our policyholders’ surplus reserve. More fundamentally, we intend to step up our strategic diversification, in terms of both partnerships and products. We are convinced that the future of the savings business lies in developing products managed with a very longterm perspective, as this is increasingly what our customers want. This is why we have made a major commitment to the new Eurocroissance contract, with an offer that is ready to hit the market. Jean-Paul Faugère - As an insurance company responsible for managing the savings of millions of 6 – CNP Assurances – 2014 Annual Report
customers in France and abroad, we fully understand the seriousness of the challenge. We have a duty to protect their capital but also to offer them an acceptable yield, taking into account inflation. We are meeting these two objectives. The technical expertise of our actuaries and asset managers is one of the hallmarks of the CNP Assurances brand. We need to be vigilant and to adopt a conservative management approach, to ensure that we can fulfil our commitments which extend a long time into the future. The savers who have chosen CNP Assurances understand the importance of these values.
Your bancassurance partnerships with BPCE and La Banque Postale are in the process of being renewed. What’s the current situation? Frédéric Lavenir - The partnership agreement with the BPCE Group has been renewed for an initial seven-year period commencing in 2016. The new agreement’s focus on protection insurance and employee benefit plans (death/disability and health insurance) will help to drive our diversification strategy as from next year. It will also offer increased scope for business growth, thanks to the extension of term creditor insurance distribution to all BPCE networks, including Banques Populaires and Crédit Foncier. As regards La Banque Postale, the Cachemire offer’s outstanding success has given new impetus to the partnership. Our discussions are progressing around our shared development ambitions. Jean-Paul Faugère - BPCE will continue to be a major partner in France, even though the partnership’s substance will gradually change. Our negotiations were very constructive and it’s clear that the teams cooperated very effectively. Moreover, BPCE has reaffirmed its commitment to remaining part of our core group of stable shareholders. With La Banque Postale, I am confident that we will soon have a new agreement and I have every reason to believe that its terms will enable us to pursue growth strategies that are consistent with the objectives of both La Banque Postale and Caisse des Dépôts.
When you talk about building the protection insurance business, what does this mean in practice? Frédéric Lavenir - I’m talking about traditional death and disability insurance – what we often refer to as
Can you sum up your portfolio investment strategy? Are you increasing your investments in equities and real estate? Jean-Paul Faugère - We do indeed plan to increase our investments in equities and real estate, and also in infrastructure projects, for the obvious reason that interest rates – particularly for government bonds – are considerably below the yields expected by our customers. We have traditionally invested more heavily than our competitors in these asset classes, first because we manage savings and pensions portfolios representing very long-term commitments and second because we are convinced it’s the right investment strategy in the current interest rate environment. We’re very comfortable with these choices, because we believe in our vocation as an institutional
In 2014, CNP Assurances contributed to the emergence and growth of 250 innovative SMEs. Jean-Paul Faugère 8 – CNP Assurances – 2014 Annual Report
Frédéric Lavenir investor, particularly in light of our public sector roots, and welcome the fact that we can participate in financing the real economy. For example, in 2014 we invested €740 million in private equity funds and contributed to the emergence and growth of over 250 innovation- led SMEs through our participation in the France Investissement Assurances programme.
No. 1 personal insurer in France and one of the top 5 in Europe
With operations in 14 countries, CNP Assurances is stepping up its multi-partner growth strategy to meet the protection needs of 500 million
Priorities • Develop and refresh the CNP Assurances offer, in order to protect many more generations of French families and support our partners’ move upmarket. • Accompany our partner networks as they move to multi-channel distribution. • Adapt our service level, in terms of quality and responsiveness, to each customer segment.
5.2 million customers with La Banque Postale points of sale in our two partner networks in France 5 million customers with the Caisses d’Epargne 12 – CNP Assurances – 2014 Annual Report
100% partner-focused Distribution through major banking networks and targeted partnerships in Europe €2bn per year target for new money invested in premium savings products within two years
The growth in EBIT attests to the Group’s robust operating performance in a difficult macro-economic environment.
2014, solid financial performance and business transformation In an environment shaped by historically low interest rates, our good performances confirm that we were right to rebalance our multi-partner model by increasing our focus on personal risk/protection insurance and long-term unit-linked savings.
* Personal risk, health, term creditor and property and casualty insurance
OVERVIEW OF NET PROFIT AND DIVIDENDS (in € per share and € millions for profit) from 2008 to 2014 At the Annual Meeting of 6 May 2015, the Board of Directors will recommend paying a cash-only dividend of €0.77 per share for 2014.
€25.5 per share, up 13.5% from the 31 December 2013 figure after dividends.
4,000 term creditor insurance contracts were SIGNED ON LINE with Boursorama.
Promoting equal access to healthcare was adopted as the CNP Assurances FOUNDATION’s latest area of outreach.
Europe’s financial markets were buffeted by a HISTORIC DROP IN INTEREST RATES over the year, from 2.5% to 0.6%.
The Cachemire premium savings offer distributed by LA BANQUE POSTALE got off to a good start, attracting €3 billion in new money in less than eight months.
20-year strategic partnership signed with BANCO SANTANDER, extending the scope of CNP Assurances’s protection in ten European countries, including Germany.
78.7% increase in new money invested in UNIT-LINKED funds in France and 41.7% INCREASE in Europe.
The teams pulled out all the stops to have the first Eurocroissance contracts ready for distribution through the CAISSES D’EPARGNE network.
CNP Assurances teamed up with ALPTIS ASSURANCES, a master broker specialised in social protection and digital solutions, to create Capvita, an innovative multi-channel platform that will support the drive by the Group and its partners to build employee benefit plan sales among SMEs, micro-enterprises and self-employed professionals.
An INNOVATIONS AND SERVICES department was set up to enhance our social protection offers and the dedicated “lyfe.fr” digital platform was tested in real-life conditions by employees in the Paris region.
In Brasília, the Brazilian subsidiary moved into new headquarters symbolising its ambitions, redefined its vision and changed its name. Caixa Seguros, meaning “La Caixa’s insurance”, has become CAIXA SEGURADORA, meaning “La Caixa’s insurer”.
The partnership agreement with the BPCE GROUP was renewed for a further seven years as from 1 January 2016. Its scope has been extended to include personal risk and protection business lines, which are a strategic priority for CNP Assurances.
In 2014, life insurance was the main growth driver not only for CNP Assurances but also for the French insurance market as a whole, although the persistently low interest rates upset the market.
“For me, life insurance is 40% for my retirement, 40% for the children and 20% for a rainy day, for example if I lose my job.” This vision of life insurance expressed by a 40-something during a qualitative survey conducted by CNP Assurances clearly shows that, up to now, life insurance has been the perfect solution to the multiple needs of savers.
Mikaël Cohen, Investment Director “Never before have we seen such low nominal interest rates in Europe. To meet this challenge, we are stepping up our portfolio diversification strategy. We are increasingly focusing our fixed income investments on assets that contribute to financing the economy, including listed corporate bonds and units in corporate bond funds, but also bonds issued by unlisted mid-market companies. We also purchase equities throughout the year, with a focus on companies involved in major real estate or infrastructure projects. It takes all of CNP Assurances’s expertise to identify high potential investments while avoiding the risk of capital losses.”
AN EXTRAORDINARY FALL IN INTEREST RATES In 2014, interest rates tumbled, with the 10-year OAT (3) rate dropping from 2.50% to less than 1% at the yearend and to 0.60% in early 2015. The Banque de France instructed insurers to slash policyholder yields to preserve their ability to fulfil their short and longterm commitments and ensure that their business models continued to be sustainable.
The average yield on traditional life insurance contracts stood at 2.50%, down 0.30 points on 2013 (source: FFSA). The yields paid by CNP Assurances through its partners followed the market trend. At between 1.80% and 2.70% for contracts distributed by La Banque Postale and the Caisses d’Epargne, they remained well above the rates earned on government bonds, which represent the principal asset class in all insurers’ portfolios.
Never before have we seen such low nominal interest rates in Europe.
As the perfect portfolio diversification vehicle, a natural driver of performance and an ideal pension product,
POLICYHOLDERS ON THE TRAIL OF PERFORMANCE French people looking for above average performance are choosing unit-linked products, which are managed using more dynamic investment strategies. Unit-linked contracts represented 16.6% of French life insurance new money in 2014 and 17.2% of market technical reserves. We have been promoting unit-linked funds for several years now. In 2014, this marketing strategy drove sharp growth in unit-linked sales, with gains of 78.7% in France and 41.1% in Europe (excluding France). The strategy is supported in particular by the new Cachemire 2 and Cachemire Patrimoine contracts distributed by La Banque Postale, for which the unitlinked weighting stands at 17% and 31.1% respectively. The proportion of new money invested in unit-linked funds by Caisses d’Epargne customers rose by over three points to 14.9% at end-2014. These advances attest to the networks’ success in convincing customers to accept part of the investment risk.
Martine Vareilles, Head of La Banque Postale Partnership business unit “With interest rates close to zero, the only way of generating a yield is through portfolio diversification. Eurocroissance offers a capital guarantee at the end of a set period, not before, providing scope to invest in diversified asset classes. This flexibility allows us to take up market opportunities and offer higher yields. The key issue is time. Eurocroissance is an ideal pension product, which is good news because younger generations generally cite retirement income as their main reason for saving. We need to explain, to help customers to plan ahead. It’s a new experience for savers, for our partner’s insurance advisors and for us. We really are living in a changing world.”
is the purpose of the on-line information pack featured on the CNP Assurances website, to encourage retail customers to discover and adopt France’s new life insurance fund.
In April 2014, we made the strategic decision to invest in the premium savings segment by setting up a dedicated organisation. CNP Patrimoine was created in 1997 to serve the independent financial advisors market. It has been transformed into a “start-up” boasting all of the required skill sets and open to new partners. The new-look CNP Patrimoine is going on the offensive.
THE SUCCESSFUL CACHEMIRE PATRIMOINE OFFER, A SPRINGBOARD FOR GROWTH In 2014, new money invested in our premium savings offer totalled €1.2 billion. Cachemire Patrimoine distributed by La Banque Postale has been a spectacular success, generating premium income of €900 million in its first year. Of the total, an impressive 31.1% was invested in unit-linked funds. The result of close cooperation between our teams and those of our partner, all aspects of the Cachemire Patrimoine offer are closely aligned with the needs of La Banque Postale’s wealth management customers. It is also perfectly aligned with the Bank’s strategic priority, giving wealth managers a further reason to promote it among customers. The outlook for premium savings products is also good in the BPCE Group’s networks. The relaunched offer 22 – CNP Assurances – 2014 Annual Report
A RESPONSIVE PREMIUM SAVINGS ORGANISATION The new CNP Patrimoine organisation focuses exclusively on premium savings products. With all of the required skill sets, it operates with a high degree of independence within the Open Model business unit
new partnerships signed in 2014 with private banking institutions, family offices and leading wealth management specialists.
and has its own back office team. CNP Patrimoine offers a full range of services to its partners and their customers, from bespoke product design to dedicated contract administration. For greater agility, policy administration has been outsourced to QIS - Quality Insurance Services, an innovative third-party life insurance administrator. With 15 years’ experience, a reputation for high quality customer service and recognised unit-linked management capabilities, QIS’s teams contribute significantly to our premium savings business’s agility and innovation- led strategy.
customers’ expectations by providing an immediate response to their applications through the Granit pre-sale service platform. By introducing digital underwriting processes, we have given our partners the ability to say “yes in principle” in the majority of cases. The Granit platform simplifies tendering processes by comparing all available offers in order to propose the best solution. It allows partners to demonstrate the responsiveness that can make all the difference when competing for business. More than that, Granit will drive the process of continuous innovation that will help CNP Patrimoine to provide better advice, services and tools, and will enhance relations with our partners and their customers.
François Guilgot, CNP Patrimoine Development Manager “Responsiveness is a deciding factor for our partners when it comes to winning new customers, which is why we developed Granit. This interactive digital application allows them to obtain, with just a few clicks of the mouse, an agreement in principle and a financial offer for their tenders in compliance with CNP Patrimoine’s underwriting policy as well as preliminary approval of new unit-linked funds.”
100,000 Santander Consumer Finance points of sale in the ten countries covered by the agreement with CNP Assurances.
ACCESS TO NEW MARKETS The partnership with Banco Santander significantly extends CNP Assurances’s geographic footprint, by giving us access to new markets – Germany, Poland, Austria and the Nordic countries (Norway, Sweden, Denmark and Finland) – and strengthening our positions in Southern Europe (Italy, Spain and Portugal). Santander Consumer Finance holds leading positions in all of these countries, allowing us to immediately achieve critical mass in several important markets including Germany. The leading euro zone economy and the third largest insurance market in Europe, Germany is very similar to France in terms of its consumer finance and personal risk insurance markets.
12 MILLION ACTIVE CUSTOMERS With over 12 million active customers and 30 million potential insureds, the partnership offers considerable scope for growth. In 2014, Santander Consumer Finance’s insurance subsidiaries generated premium income of €650 million. For the current year, the Group expects to write over €500 million worth of business in Germany alone. By 2019, the partnership is projected to generate €900 million in premium income and EBIT of €80 million.
“By combining the CNP Assurances Group’s technical expertise in term creditor insurance with our distribution fire-power in Europe, our partnership promises to create value for our two groups and also for our customers.”
Pierre-Nicolas Carissan, term creditor/personal risk insurance development manager in the Open Model business unit
In competitions on this scale, what really counts? Throughout this complex journey, we obviously had to demonstrate technical excellence, for example in the areas of financial valuations and contract negotiations, but we also had to make Santander’s teams want to work with us.
What is CNP Assurances’s recipe for success? Create a joint venture and set up an exclusive, long-term distribution agreement. We have successfully deployed this partnership model both in Europe and in South America and are convinced that it represents the way forward. The hallmarks of our Group – its long history, corporate DNA and solid expertise – all ensure that we can create value with a partner over the long-term.
AUTUMN 2013 Exploratory talks in Germany A review of partnership opportunities is launched. We are invited to examine a possible partnership with a European bank heavily involved in consumer finance, which accounts for 50% of its business in Germany. We accept the invitation. Santander is talking to several major international insurers. The competition is on.
16 DECEMBER Signature of the final agreements, after obtaining the go-ahead from the Bank of Ireland, the acquired subsidiaries’ country of incorporation, and from the European Commission.
2015 Dublin CNP Assurances will gradually take over control of CNP Santander Insurance’s Irish companies. The team of around forty people in 2014 will be expanded notably through the transfer of CNP Assurances employees to facilitate the integration process and accelerate their development.
The “ANI” agreement providing for all employees to be covered by supplementary health insurance as from 1 January 2016 will reshape the insurance landscape, by taking more than 5 million employees of micro- enterprises and self-employed professionals out of individual health insurance and into group insurance plans. We are ready to take up the challenge.
Protection insurance is at the centre of the new partnership agreement negotiated with BPCE, which has chosen CNP Assurances to meet the employee benefit plan needs of companies with over 20 employees that are customers of the Caisses d’Epargne network or the Banques Populaires network, representing a portfolio of over 600,000 companies and 2 million employees.
Raphaël Monsonnec, Business Development Manager, Western France region, Amétis, part of the Social Protection and Services business unit
Amétis travelling insurance advisors, experienced in providing personalised advice and trained in the technical aspects of supplementary health insurance.
CNP Assurances’s supplementary health insurance offer will consist of simple products including a full range of guarantees and services that revisit insurance.
multi- channel support (web, telephone, text message) for the drive by the Group and its partners to capture the market.
SUPPORT FROM THE AMÉTIS NETWORK For the owner of a small business or micro-enterprise, a local presence and personalised relations are essential. That’s why we have chosen to channel distribution through our in-house network of insurance advisors, extend these advisors’ expertise to include health insurance plans, hire new profiles and offer the sales force’s services to our partners. To reflect its expansion into this new market, the in-house CNP Trésor network has been renamed Amétis. It comprises some 250 travelling insurance advisors who cover the whole country and are equipped with high-performance mobile workstations.
TRIALLING THE NEW MODEL Our supplementary health insurance offer will be ready this summer. In the meantime, we are breaking in the Capvita platform and multi-channel distribution model among partner mutual insurers and employee benefits institutions. The Amétis network is testing its key to unlocking the market – diagnostic reviews of the business owner’s personal assets and of the company’s employee benefits provision. The initial results are very good in terms of appointments and sales.
For the owner of an SME or microenterprise, a local presence and personalised relations are essential.
SMART PHONES, TABLETS, APPS CNP Assurances’s Lyfe.fr platform is being tested in real life conditions during 2015 by employees of customer companies in the Paris region. They are being asked to assess the quality and usefulness of three services designed to make their everyday lives easier: fast-track medical appointments, personalised health checks and services to help prevent a loss of autonomy. Assistance is available five days a week by telephone and 24/7 on-line, and the portal includes space for users to post comments and suggestions regarding future services. We have also chosen digital solutions to better understand the needs of business owners and partner them more effectively. The Group is a partner of WikiPME, a collaborative platform for French entrepreneurs. We also plan to conduct a survey to measure business owners’ sensitivity to a number of issues.
Peggy Séjourné, Service Strategy and Innovation Manager, Social Protection and Services business unit
Will services take precedence over insurance cover? Today, the insurer still arrives after the event, simply to settle the claim. Customers want more, they want solutions to their problems rather than standard products, and support at all stages of their lives, with evolutive cover and real time relations with their insurer.
CNP Assurances has been present in Brazil for 14 years, enabling as many people as possible to benefit from its insurance protection through Caixa Seguradora.
DISTRIBUTION, THE CRUX OF THE MATTER Caixa Seguradora distributes its insurance products through the 60,000 Caixa sales points (branches, Caixa aqui correspondents, bank terminals and lottery booths), and also through a network of around 3,000 partner brokers. The biggest-selling products, such as funeral insurance and dental insurance, are sold on-line and by telemarketing teams, two mass distribution channels that enable Caixa Seguradora to reach a far greater number of potential customers while also increasing its marketing efficiency. The website clocked up 17.5 million visitors in 2014, while the number of subscribers to on-line services grew by 38.5% over the year to 6.7 million.
A NEW HEADQUARTERS, A NEW NAME In late 2014, all of Caixa Seguradora’s teams moved to the new building, which symbolises the company’s new ambitions and its confidence in the future. The Brazilian subsidiary has opened a new chapter in its history. It’s an opportunity to redefine its mission, vision and values, revisit its codes and adopt a new name.
Do people in Brazil view insurance as a consumer product like any other? We are seeing the development of an insurance culture in Brazil. Middle class people and people with lower incomes are showing growing interest in affordable insurance products. Caixa Seguradora is focusing on mass sales to meet the needs of as many people as possible.
TOWARDS AN E-COMPANY IN BRAZIL It’s strategic. CNP Assurances has decided to give shape to its digital ambition in 2015. Brazil is the ideal place: there are a vast number of potential micro -insurance customers and digitalization of everyday life has taken place much faster than in Europe. All of Brazil’s major insurance companies are focusing on mass distribution and creating virtual stores on their websites. We have gone further by developing the concept of a 100%-digital company whose origins are in e-commerce, a pure player with the codes, practices and requirements of e-buyers. We are working on the business model and plan to go live in 2016, with major ambitions backed by significant investments. This innovation will speed the transition to multi-channel distribution, illustrating our Group’s vitality.
* Its premium income rose by 20% like-for-like in 2014. See 2014 Annual Results of the CNP Assurances Group.
BOARD OF DIRECTORS The Board of Directors of CNP Assurances is comprised of 18 directors, including six women, three non-voting directors and four Works Council representatives. Its membership reflects the close involvement of the reference shareholders and the vision of qualified independent directors. The Chairman leads the work of the Board and the Strategy Committee. The Committees of the Board are chaired by independent directors. Together, the members of the Board of Directors have the skills and business experience required to serve on the board of an insurance company. These include experience of the insurance and financial markets, a good understanding of the Company’s strategy, business model and governance system, financial and actuarial analysis skills and knowledge of the regulatory environment.
CORINNE GOUTHIÈRE Company Secretary 40 – CNP Assurances – 2014 Annual Report
Chairman • Philippe Baumlin • Marcia Campbell * • Jean-Yves Forel • Olivier Mareuse • Rémy Weber
CNP ASSURANCES OWNERSHIP STRUCTURE AS OF 31 DECEMBER 2014 36.3% Sopassure, holding company for La Banque Postale and BPCE’s interests 40.8% Caisse des Dépôts Group 1.1% French State 21.8% institutional and retail investors *Independent director based on the criteria in the AFEP-MEDEF corporate governance codeMARTINE VAREILLES
At CNP Assurances, we view corporate social responsibility (CSR) as a driver of transformational change and overall performance. Our CSR commitments guide our choices and inspire our everyday actions, from designing affordable offers for policyholders to training our employees and reducing our carbon footprint. We have covered a lot of ground since we pledged to uphold the UN Global Compact in 2003. The sustainable development indicators introduced in 2006 and included in the CSR report published since 2011 provide a tangible measure of our progress and of the value created for stakeholders, our customers, our employees, our shareholders and our environment.
• Listing: NYSE Euronext Paris since 6 October 1998 • Share price on 31 December 2014: €14.70 • Market capitalisation on 31 December 2014: €10.1bn* • Total number of shares at 31 December 2014: 686,618,477 • Average daily trading volume in 2014: 288,199 shares per day* * Source: Bloomberg
SBF 120, Euronext 100, DJ Euro Stoxx Insurance, Ethibel Excellence Index Europe, NYSE Euronext Vigeo Eurozone 120.
The low interest rate environment has led us to step up the diversification of our investments and increase our focus on financing the French economy.
Each year, the equivalent of our total new money – around €20 billion – is invested in the financial markets. The challenge consists of optimising the return on these investments while efficiently managing the related risk. Historically, CNP Assurances, like all other insurers, invested 50% of its portfolio in government bonds. In 2014, however, with interest rates falling to below 1%, this was no longer a viable option. We therefore scaled back our government bond portfolio over the year, setting a minimum of around €2 billion, and started investing in corporate bonds.
FOCUS ON SMES AND MID-MARKET COMPANIES The portfolio diversification process has brought us even closer to the community of SMEs and mid-market companies. For example, we participated in private placements by mid-caps such as Seb, Vilmorin, Lactalis, Zodiac, Sonepar and Adéo. We also partner unlisted companies, as one of the leading investors in the private equity market in France with €3.5 billion committed at 31 December 2014, including €1.6 billion of investments (based on their net carrying amount). In all, we invested €740 million in new projects in 2014. In 2013, 24 institutional investors committed to injecting €1 billion in the new Novo corporate debt funds launched by Caisse des Dépôts to provide financing 44 – CNP Assurances – 2014 Annual Report
With €47.5 billion invested in large French companies (equity and debt), CNP Assurances is a strategic partner in their domestic and international growth.
for SMEs and mid-market companies. A first wave of loans, totalling €461 million, was granted to sixteen companies operating in the manufacturing and service sectors. CNP Assurances’s contribution amounted to €57 million, out of a total commitment of €100 million.
MAJOR REAL ESTATE AND INFRASTRUCTURE PROJECTS In 2014, we invested some €1.4 billion in this asset class, allowing us to diversify our portfolio while optimising the yield/risk trade-off. At end-2014, we held a property portfolio with a net book value of €6.6 billion, along with €772 million worth of investments in infrastructure projects in France, in such areas as rail transport, renewable energies and information networks.
CONTRIBUTING TO A SUSTAINABLE ECONOMY Convinced that environmental, social and governance factors contribute to improving the yield/risk ratio over the long term, for many years we have been pursuing a responsible investing strategy. Our commitment in this area has been strengthened by our pledge to uphold the United Nations’ Principles for Responsible Investment (PRI). This is illustrated by our broad use of ESG screens, which were applied to some 80% of the assets in the portfolio at 31 December 2014. We also promote socially responsible investing in the 18 million letters sent each year to policyholders, and work with our partners to encourage savers to choose SRI funds. As of 31 December 2014, some 100,000 unit-linked contracts included SRI funds, 13% more than at the previous year-end.
€1.6bn* invested in private equity funds €6.6bn* invested in property in France * Net carrying amounts at end-2014, consolidated scope, France
THE DIGITAL CHALLENGE In 2015, we have set a new challenge for all the business units. Recognising that we can no longer delay entering the digital world, we plan to accelerate the tran sition through a collective and collaborative process.
New offers, new partnerships, business diversification and faster growth in Europe and Latin America. A look back over a dynamic and fruitful year for CNP Assurances’s business units.
Partnership The partnership with La Banque Postale is also due to expire on 31 December 2015. Discussions are moving ahead against the backdrop of our joint development ambitions and our shared commitment to finalising the agreement before the summer.
Partnerships We have always forged multiple partnerships in the area of social protection. This model was consolidated in 2014 to target the newly created demand for employee benefit plans among SMEs, micro-enterprises and self-employed professionals. A strategic partnership was signed with customer relations and digital expert Alptis Assurances, leading to the creation of Capvita to serve this segment, and an agreement with the BPCE Group to meet the needs of its 600,000 customers with over 20 employees.
€2,700m in health and death/disability premiums. A new dynamic to meet emerging challenges. Thanks to our upgraded offers, multi-channel strategy and new partners, in 2014 we successfully adapted to the changing market and responded to around one hundred calls for bids.
Partnership Caixa Seguradora is leveraging its recent acquisitions – Tempo Dental in the high potential dental insurance market and Prévisul, in the personal risk market in Southern Brazil – by unleashing the many synergies in order to pursue its growth.
Outlook for 2015 Ready for Latin American expansion Growth strategies in Brazil are being guided by the 2015-2019 business plan prepared jointly with Caixa Econômica Federal and the search is underway for partners in Colombia.
Deployment of the new organisation built around the Group’s strategic goals was supported throughout the year and at all levels.
A SUCCESSFUL CORPORATE TRANSFORMATION The reorganisation plan was discussed in detail with employee representatives during some forty meetings held over a period of 15 months at which the plan’s aims were explained. Management support was a constant throughout this period. The Chief Executive Officer maintained an open channel of communication on the subject with the first tier of management. A communication kit including a system for passing on employee questions was distributed to all managers. Seminars were held to organise teams and targeted change management initiatives were carried out to promote employee buy-in. The 250 project leaders were involved in drafting the four principles that now inspire the conduct of all CNP Assurances managers - customer focus, initiative, inventiveness and confidence. Three-quarters of employees were concerned to some extent by the changes in 2014. Individual and group coaching sessions, and bespoke training programmes addressing the type of change experienced (change of position, profession or management) helped to ensure the transformation went smoothly.
TARGETED HIRING To find the specific skills not available within the Group, mainly in finance and marketing, the Human Resources department launched a variety of initiatives. These included using innovative digital channels, conducting targeted e-mail campaigns in Viadeo, and advertising jobs on the Indeed portal and regional job sites. The department also continued to use the traditional method of finding candidates through personal recommendations, which is a particularly effective means of attracting the best insurance advisors. In all, these varied approaches halved the average hiring time.
Over 5% of payroll spent on training 900 employees benefited from a career planning review
The Group is ranked in 2nd place overall - and 1st place in the insurance industry - for the proportion of women in senior management positions.
Vulnerabilities have been exacerbated by the economic crisis. At the same time, welfare systems are struggling to keep up with demographic trends. Everyone is facing a more uncertain future, whether they are young or old, rich or poor. There has never been a more pressing need to secure the future. This is the real value of CNP Assurances’s choice to be the insurer for all our futures. We have had a strong commitment to serving the public interest throughout our 160-year history. Our many years’ experience have helped us to measure risks more accurately and properly calibrate our cover. Our Group’s size and the growing number of insureds has allowed us to pool risks and thus to optimise premiums.
In savings, it takes just €30 a month to make plans or start building a pension pot by purchasing a life insurance policy. In personal risk insurance, for just €3 per quarter, it’s possible to obtain a payout of at least €7,500 in the event of an emergency. In Brazil, funeral insurance is available for the equivalent of less than €1 per month, even for people who don’t have a bank account, thanks to the Group’s micro-insurance solutions.
SUSTAINABLE As a responsible insurer, we conduct our business for the long term, efficiently managing not only the risks of our policyholders’ everyday lives but also economic
CHARITABLE For over 20 years, the CNP Assurances Foundation has been supporting public health. The definition of the Group’s new strategic goals was an opportunity to revisit the Foundation’s areas of outreach. Its new €2,5m in donations paid by Group entities in 2014 to support initiatives in the areas of health, social inclusion and social research term creditor insurance rejection rate, unchanged for six years mission is to promote equal access to healthcare. To this end, the Foundation will support innovative, socially useful projects in three areas: facilitating access to healthcare, supporting prevention programmes and programmes to promote healthy living, and improving the social determinants of health from infancy. In 2014, the first partnerships were signed, with Agence du Service Civique, which runs France’s civic service programmes, to set up a social innovation project “for and by young people”, and with Alliance des Mécènes pour l’Education, a group of corporate foundations that helps to prevent young people from dropping out of school.
DISCOVER EUROCROISSANCE IN JUST A COUPLE OF MINUTES Our on-line module tells you everything you need to know about this new generation life insurance fund, including yield information, information about the capital guarantee, the options available when you purchase the contract and the options if an unforeseen event occurs. As France’s leading personal insurer, CNP Assurances is committed to helping as many people as possible understand the ins and outs of life insurance and boost the performance of their savings.
The 2014 annual report, CSR report and registration document are available on-line by going to “The Group” and then “Our publications”. The Shareholder Guide and Shareholder Newsletter are available on the Individual Shareholder page.
Available in both French and English* for download from www.cnp.fr or on request from CNP Assurances. * Except for the Shareholder Guide which is available in French only