That’s why CNP Assurances has dedicated over 150 years to securing the future of its customers and their loved ones so that, together, we can go through life with greater confidence.
45, thoughtful. Jacques has a good salary that allows him to travel, visit exhibitions and enjoy life. But he’s deeply concerned about maintaining his standard of living in retirement.
65, assured. Jacques is about to cash in his life insurance policy. He’s going to fulfi l his dream and open an art gallery.
91, supported. Jeanne’s children and grandchildren are very supportive, but she needs a lot of assistance on a daily basis. At her age, freedom means maintaining her autonomy.
24, prudent. Léa is a single mother. She’s taken out life insurance to protect her son, no matter what may happen in the future.
61, attentive. Myriam now has a house and would like to give her children a head start in life. How can she best transfer her wealth to them?
No.1 personal insurer in France 2011 highlights p.38_ Significant events of the year p.40_ Financial highlights p.42_ Corporate social responsibility
Your projects p.44_ Saving for peace of mind p.46_ Preparing for retirement p.48_ Insuring against the unexpected p.50_ Borrowing money securely p.52_ Accessing life enhancing services
Our commitments p.54_ A responsible insurer p.57_ A responsible investor p.58_ A responsible employer p.61_ A lasting relationship with shareholders p.62_ Serving the general interest p.64_ Protecting the environment p.66_ Offices p.68_ Glossary p.70_ To find out more about
Salutary decisions at the end of the year The last quarter of 2011 was shaped by a number of decisions that helped to reverse this worrying trend. First, the European
Central Bank (ECB) cut its benchmark rate on two separate occasions, bringing it down to 1% from 1.50%. Then, European Union leaders agreed to sign a treaty to enforce budget discipline among the member countries, paving the way for the ECB to extend over €1 trillion in three-year loans to the region’s banks in two waves. These salutary measures averted a credit crunch and helped to significantly reduce spreads* on peripheral sovereign debt. By restoring confidence among economic actors, they prevented the euro zone from plunging into a deep recession and reduced tension in the market, giving euro zone governments some leeway to get their public finances back in order.
CNP Assurances came through stronger in 2011 Attesting to the confidence we inspire in our customers, CNP Assurances is one of the few insurance companies to have reported positive net new money in every quarter last
Insurance company balance sheets were impacted by falling stock market prices and by tensions in the peripheral sovereign debt markets. In addition, insurers were faced with reduced yields on their portfolios and significant outflows of customer funds. For their part, the bancassurers were hit by the banks’ lack of liquidity and compelling need to attract more customer deposits.
Lastly, we need to lobby for life insurance to maintain its tax advantaged status, so that it can continue to play its critical role in financing the economy and government debt over the long term.
I can assure you that the Board of Directors is as confident as ever in the strength of the
* For a bond (or a loan), the spread corresponds to the difference between the yields of two bonds (debt instruments) with the same maturity but different risk profiles. The greater the issuer’s perceived credit quality, the narrower the spread.
Caisses d’Epargne and La Banque Postale networks in France represent highly efficient powerhouses. Their vitality, their responsiveness during the crisis and the energy they devote to their customers are truly exceptional.
Customer loyalty to the distribution networks and to CNP Assurances also gave us an edge. The surrenders that triggered the drop in net new money were more modest at
Is life insurance still a product with a future? How will personal insurance evolve in the coming years? Life insurance is a powerful driver of longterm saving that governments can’t do without, because it finances businesses and sovereign debt. That aside, life insurance is a product with a future for two fundamental reasons.
First, in France, where there are no private pension plans apart from specific retirement savings products, the only safe, tax-efficient way of saving for retirement is by taking out a life insurance policy. Second, the need for protection against the risks of everyday life is increasing, and among them is the emerging risk of having to fund long-term care.
How did the Group perform in last year’s challenging environment? The French life insurance market experienced an unprecedented drop in net new money in 2011, to €7.6 billion from €50 billion the previous year. Given that France is
EBIT rose 17%, reflecting the dual benefits of higher net insurance revenue and an improved expense ratio that was largely attributable to a cost efficiency programme spanning several years. At the same time, we maintained the policyholders’ surplus reserve at the pre-Greek crisis level and increased our market share in France.
International operations represent 37% of EBIT. What are the drivers behind this contribution? Our foreign subsidiaries’ significant, high quality contribution to earnings is attributable to the vitality of our international partnerships and of our risk businesses, particularly personal risk and term creditor insurance. Brazil has continued to perform exceptionally well, while the partnerships with Barclays and
Marfin have made substantial contributions to profit. Term creditor insurance, which is one of our broad areas of expertise, is a high value-added business in every host country, particularly in Brazil, Italy and Southern
What are the latest advances in sustainable development? In 2011, the Board of Directors set sustainable development objectives for Group managers and asked them to report back on their initiatives. Substantially all of the objectives were met during the year.
CNP Assurances’s steadfast commitment to promoting diversity deserves special mention. We are the first insurance company to have obtained France’s «Diversité» label, primarily in recognition of our assertive programmes to hire people with disabilities. And we also have one of the most ambitious corporate agreements on gender equality, which has been signed by all of the employee representative bodies.
POOLING EXPERTISE The Board of Directors of CNP Assurances is comprised of 18 directors, three non-voting directors and four Works Council representatives. By involving the main shareholders and drawing on the vision of its qualified independent directors, the Board is able to ensure that strategic decisions are of the highest quality.
Responsible for verifying the overall consistency of these decisions, the Chairman of the
Board, chairs the Strategy Committee and coordinates the activities of the Committees of the Board, which are chaired by independent directors.
Board and has the broadest powers to act in the name of the CNP Assurances Group.
Group’s strategic functions: international operations, finance, 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.
Further ensuring consistent strategic management across the Group, at least one
Gilles Benoist, Chief Executive Officer assisted by the Executive Committee: Xavier Larnaudie-Eiffel,
MEDEF corporate governance code for listed companies ** Until 8 March 2012
Argentina CNP Assurances Compañia de Seguros CNP Assurances: 76.47% Banco Credicoop: 12.5% Segurcoop: 11.03%
China Sino-French Life Insurance CNP Assurances: 50% Chinese Post Office: 50%
Spain CNP Vida de Seguros y Reaseguros CNP Assurances: 94% Banka Cívica: 2% Bankia: 1.5% Liberbank: 1% Mare Nostrum: 1% Unim Bank: 0.5%
La Banque Postale Prévoyance CNP Assurances: 50% La Banque Postale: 50%
Italy CNP UniCredit Vita CNP Assurances: 57.5% UniCredit: 38.8% Cardif Assicurazioni: 3.7%
Cyprus and Greece CNP Marfin Insurance Holdings CNP Assurances: 50.1% Marfin Popular Bank Public: 49.9%
Romania Served from France under the EU freedom of services directive
Laiki Cyprialife Laiki Insurance Company Marfi n Life Marfi n Brokers
Greece: Marfi n Egnatia Bank and Postal Bank 500 post offi ces
Âge d’Or Expansion Carrés Bleus CNP Caution Écureuil Vie Développement Filassistance International Fongépar La Banque Postale Prévoyance MFPrévoyance
183,000 insureds under individual policies 10,500 insureds under group policies 908,000 insureds 1,863,000 insureds under term creditor insurance contracts 169,000 insureds under group life insurance contracts 102,000 accident insurance policyholders 61,000 insureds under individual life insurance contracts 190,000 insureds under non-life contracts 129,000 individual life insurance policyholders 3,300 insureds under employee benefi ts contracts 230,000 individual life insurance policyholders 94,000 non-life insurance policyholders 6.3 million individual life insurance policyholders 2.7 million insureds under term creditor insurance contracts 2.3 million insureds under death/disability contracts 781,000 pension contract holders 676,000 insureds under non-life contracts 126,000 Consórcios contract holders bodies, rating agencies, recipients of corporate sponsorship, government agencies, host community authorities
corporate bond issuers 40% Caisse des Dépôts 35.48% Sopassure 1.1% the French State 140,000 individual shareholders 2,438 employees
57.5% CNP Assurances 38.8% UniCredit 3.7% Cardif Assicurazioni 76.47% CNP Assurances 12.5% Banco Credicoop 11.03% Segurcoop 94% CNP Assurances 2% Banka Cívica 1.5% Bankia 1% Liberbank 1% Mare Nostrum 0.5% Unim Bank 50.1% CNP Assurances 49.9% Marfi n Popular Bank Public 50% CNP Assurances 50% Chinese Post Offi ce 100% CNP Assurances 51.74% CNP Assurances 48.21% Caixa 0.05% INSS
MEETING ESSENTIAL NEEDS Our wide selection of personal risk, pension and life insurance products enable customers to protect themselves and their families against the risks of everyday life, undertake personal projects with confidence and securely pass on capital to future generations.
Through these products, we partner 12 million savings/personal risk policyholders in
Our mission: impart confidence in the future Trusted by 23 million savings/life insurance policyholders worldwide, CNP Assurances has never been more confident in its way of doing business.
A THOROUGHLY ENGAGED CORPORATE CITIZEN As the no. 1 personal insurer in France, we have a role to play in the current debate on society’s emerging risks, such as long-term care. Our corporate social responsibility
(CSR) policy extends to ensuring that our asset portfolios comply with the highest standards. SRI funds are promoted among our customers and partners and we work actively to embed high ethical standards in our corporate culture. Added to this, our
Group provides critical support to the economy through its long-term investments in businesses and infrastructure.
Insurance products can often seem technical and complex. At CNP Assurances, we simplify things for customers through entertaining, informative tools such as the life insurance film published on our dedicated video website, www.tousavoirsurlassurancevie.fr.
PRUDENT MANAGEMENT Policyholders entrust CNP Assurances with their most valuable asset – their future and that of their loved ones – as well as their life savings. That’s why we implement a highly disciplined management policy. Priority focus is given to long-term invest-
“Several times a year, we invite policyholders and their families in to talk about a particular risk they may face in life, its potential consequences and the available solutions.
CNP Trésor Nice team. Around 20 people attended the meeting, including residents, staff and residents’ children.
CNP ASSURANCESUPHOLDSTHETEN PRINCIPLESOFTHE GLOBAL COMPACT Human rights 01. Businesses should support and respect the protection of internationally proclaimed human rights; 02. Make sure that they are not complicit in human rights abuses.
United Nations Global Compact in 2003 and is dedicated to upholding and promoting its ten principles on human rights, labour rights, the environment and anti-corruption practices. The Argentinian and Brazilian subsidiaries and CNP UniCredit Vita in Italy have also joined the Compact, raising the total percentage of employees concerned to 88%. In 2011, CNP Assurances became a signatory to the United Nations Principles for Responsible Investment (PRI), attesting to its commitment to more broadly incorporating economic, social and governance
(ESG) criteria into its asset selection process. The quality of this process has been recognised by experts and serves as a benchmark for evaluating the progress of industry players. CSR rating agency
Vigéo ranks CNP Assurances among the leaders in its panel of European insurers.
Personal risk cover (accident, health, death/ disability, long-term care, unemployment), pension contracts, property & casualty insurance
Guaranteed minimum yield over a specified period €288,7 billion in reserves to cover these commitments
Rights of the insured and beneficiaries tracked over the life of the contract
Financially optimised portfolios to ensure all commitments are fulfilled and payment of annual policyholder dividends smoothed over time €25.9bn
CNP Assurances develops, creates and manages personal insurance contracts that are distributed through partners with a solid market presence, a strong trust equity and a shared set of values.
IN FRANCE, TWO PARTNERS THAT ARE ALSO SHAREHOLDERS La Banque Postale and Caisses d’Epargne
Agreements signed with the distribution networks set out the partners’ respective commitments, which are constantly monitored to maintain the quality of service rendered to the networks and to policyholders.
Regular dialogue between teams helps to stimulate product innovation. Specialised marketing, information systems, finance and management committees bring additional insight to discussions with La Banque Postale and Caisses d’Epargne during meetings of existing partnership committees.
“The Spanish market was badly hit by the 2011 crisis. To keep creating value for the Group in this situation, we had to react fast. Convinced that the future of insurance resides in service, we created an integrated services platform,
Group and also for other insurers. The skills and dedication of our teams made the difference. In just two years, we were able to double our revenue while containing costs.
Barclays continued to deliver results, generating an additional 20% in premium income and 34% in profit. CNP BVP
EXPANDING INTERNATIONALLY CNP Assurances generates 20% of its revenue outside France and is seeking new growth drivers mainly in Southern Europe and Latin America. Expansion is guided by the three fundamental principles behind our
We will focus on ensuring that every employee concerned understands the issues at stake and will set up shared scorecards to manage and gradually cover all of the risks facing the Group worldwide.
In insurance, solvency refers to the insurer’s ability to meet its long-term commitments to customers. The challenge is to balance the total amount of cover sold to policyholders with the resources that can be mobilised to meet the related commitments, including equity capital, technical reserves and assets such as stocks, bonds and real estate.
CALCULATING SOLVENCY CAPITAL Pillar 1 of the directive is dedicated to this topic. Insurance companies are required to maintain technical reserves covering their best estimate of the total amount of their liabilities to policyholders plus a risk margin for unexpected events. The directive recommends a standard mathematical formula for calculating this amount, but allows companies to set up their own internal model. In 2011, CNP Assurances’s teams of actuaries defined the specific parameters to be taken into account to accurately reflect the Group’s exposure to risks. Starting on 1 January 2014, when the directive takes effect, the
Risk management under Solvency II Risk management is an essential feature of the insurance business and a priority focus at CNP Assurances. The European Union’s Solvency II directive has brought it to the top of the agenda.
The Group insurance company health. At 31 December 2011, CNP Assurances estimated that its
Solvency II coverage ratio was 150%, down by just 10 points despite the unfavourable environment.
As part of the ERM project, in 2011 a new product development process was introduced based on a collaborative risk analysis performed by all of the experts concerned.
The project also helped to structure risk governance procedures and more effec34 CNP Assurances_ The lifetime insurer_
Group Technical Department 115%* 2011 Solvency I ratio excluding unrealised gains *
2011 Solvency I ratio including unrealised gains * Including the assumption of the scrip dividend payment option
In response to the first signs of the economic crisis in 2008, governments sharply increased their debt by issuing sovereign bonds. These bonds were traditionally viewed as a risk-free investment. However, in 2011, following the problems in Greece this assessment had to be revised. At the same time, it became clear that the extreme financial market volatility observed in 2008 and 2009 was a mere foretaste of what was to come. This combination of events had a significant impact on the asset portfolios of large institutional investors.
The Group us to withstand difficult periods in the past and, in 2011, absorb the impact of the sovereign debt crisis and asset impairments.
INSURANCE AND FINANCIAL LIABILITIES BY TYPE OF GUARANTEE (in billion of euros, excluding policyholder participation for the year)
Guaranteed number of units but unit value not guaranteed. Minimum capital guarantees
invest in woodland and infrastructure to secure long-term yields. Note that
THE IMPACT AND TAKE-AWAYS FROM THE CRISIS At 31 December 2011, the Group’s total exposure to Greece, Italy, Spain, Portugal and Ireland represented less than 7% of our total assets, with Greek exposure alone representing just 0.2%. In compliance with
European agreements and the recommendations of the securities regulator, we wrote down the Greek bonds in our portfolio by 70%. And we also wrote down large cap equities held in the portfolio, due to falling stock market prices.
Sovereign bonds, which had always represented the bedrock of insurers’ asset portfolios, can no longer be considered as risk-free. Now, more than ever, investments have to be diversified. At the same time, banks are obliged to sell assets to comply with Basel III and insurers are the first in the line of potential buyers.
CHANGE_ 84% of the portfolio at 31 December 2011 was invested in bonds (total Group)
The sovereign debt crisis, coupled with unprecedented financial market volatility, has dented the asset portfolios of institutional investors. At CNP Assurances, we have adjusted our strategy to focus mainly on physical assets generating steady returns. For example, in 2011 we acquired an interest in GRTgaz and significantly increased our property purchases.
In 2011, international operations accounted for 20% of the Group’s premium income and 44% of its net insurance revenue. Growth has been led by Brazil and by successful bids for employee benefits contracts put out for tender by large corporates markets international
Seguros in 2001 was a major milestone in CNP Assurances’s international development. In the last ten years, the
Convinced of the long-term performance benefits of introducing socially responsible investing criteria into asset management programmes, in 2011 CNP Assurances signed up to the United Nations
Principles for Responsible Investment (PRI). This reflects the deep progress achieved in our investment activities and our commitment to more broadly incorporating SRI criteria in all asset classes.
In 2011, we innovated our line-up for the benefit of customers and partners.
Sérénia, the high-end personal risk product introduced through La Banque Postale
Prévoyance, won a prize from “Les Dossiers de L’Épargne” immediately following its launch. The Nuances Capi savings product was added to the Caisses d’Epargne’s offering for private banking customers and CNP Patrimoine Liberté
To optimise both partner performance and policyholder satisfaction, CNP Assurances has invested in cutting-edge management and information systems. With these systems, a paperless solution has been introduced for policyholder statements, medical questionnaires can be filled out online by borrowers applying for term creditor insurance cover and claims can be submitted via the Internet.
Affected by asset impairments, net profit contracted by 17% to €872 million.
EBIT rose 17.4% to €2,243 million, reflecting the combined effects of strong operating momentum, which drove up net insurance revenue, and tight cost discipline.
equivalent in 2009, 2% improvement in 2011 on a comparable scope and methodology basis
Carbon sinks (CNP Assurances woodland assets) in 2011: 172,219 tonnes of CO
OUR CSR PERFORMANCE A review of CNP Assurances’s 2011 sustainable development commitments including detailed indicators can be obtained on request from the Company or downloaded from the website www.cnp.fr.
Share price on 31 December 2011: €9.58 Market capitalisation as of 31 December 2011: €5.7 billion (source: Bloomberg) Shares outstanding: 594,151,292
Indices SBF 120 Euronext 100 DJ Euro Stoxx Insurance ASPI Eurozone® 120 Ethibel Excellence Index Europe
In 2011, the French life insurance market experienced five consecutive months of negative net new money, with withdrawals exceeding deposits. According to the Fédération
Note: all amounts are on an IFRS basis unless otherwise specified.
16.8% in 2010), and to a record high of almost 35% in net new money terms.
THE IDEAL VEHICLE FOR GOAL-ORIENTED SAVINGS We have never been more convinced that life insurance is the pillar of long-term savings in France and the best vehicle for savers who are preparing for retirement or want to finance a project. Our broad range of products ensures that each policyholder can find the solution that suits their ambitions and profile, whether they are looking to support their children financially, secure their savings or capital, pass on capital to the younger generation, increase their retirement income or protect their family against life’s hazards.
€241bn in Savings average technical reserves excluding deferred participation in 2011 34.9% market share in France (net new money, 2011)
“Uncertainty in the financial markets has complicated the task of the advisors in our distribution networks and we have worked harder than ever to support them. In 2011, we stepped up our educational efforts, refined our arguments and organised case study workshops to convey key messages capable of restoring policyholder confidence. There has to be a constant emphasis on the enduring advantages of life insurance: its tax-advantaged status, the security provided by traditional savings products with a capital guarantee and a guaranteed yield, and the option of transferring funds between traditional and unit-linked funds to tap the profit potential offered by the financial markets.
Policyholders also have to be reminded of our Group’s strengths: its prudent financial management approach, its solvency ratio and its 150 years of resilience during good times and bad.”
Net new money Difference between the premiums paid by policyholders and the benefits paid by insurers during the reference period*.
* Source: translated from the Lexique des termes d’assurance published by L’Argus de l’Assurance, 2010
One of the main reasons why people save is still to boost their income after they retire. We are there to help them, with life insurance contracts, personal pension products such as the Plan d’Épargne Retraite Populaire
THE FASTEST-GROWING BUSINESS In 2011, Pensions revenue climbed 17.7% to €3.7 billion, thereby confirming the business’s position as the Group’s second largest source of revenue. Pensions business alone accounts for 12% of consolidated revenue, even before taking into account the pension savings invested in life insurance products, which contribute 68% of the Group total. Note that over 60% of pensions business is generated internationally, mainly in Brazil, where premiums rose 12.8% in 2011 to €1.7 billion. By comparison, pensions revenue in France came to €1.4 billion, down 4.1%.
Preparing for retirement Our pension business enjoyed double-digit growth in 2011, with international operations continuing to drive momentum.
French civil servants, has modernised its distribution channels. The insured can now call a special toll-free number in France (30 25) or log onto www.prefon-retraite.fr to access up-to-the-minute account information and simulation tools.
WINDOWS OF OPPORTUNITY IN THE CORPORATE MARKET The Group is broadening its geographic presence more rapidly, mainly by bidding for contracts with large global corporations.
For example, we won a major group pensions contract through our Irish subsidiary with one of the world’s leading carbonated drink brands.
Having earned the confidence of large international groups, this assertive approach has enabled us to capitalise on moves to purchase pension and employee benefits solutions from the same provider for all units around the world.
In one of the year’s highlights, our supplementary pensions contract with global energy producer Total was extended to include the group’s chemicals division, thereby increasing the number of plan participants by 10%.
CNP Trésor advisors and numerous employee benefits partners, including companies, regional and local authorities and hospitals, mutual insurers and employee benefits institutions.
to €1.9 billion. While France accounted for 75% of the total, the business continued to expand rapidly in Brazil, up 21.8% to €419 million.
La Banque Postale Prévoyance moved its range upmarket with the launch of the
is growing, with 1,300 contracts sold per month on average. Employee benefits solutions are sustaining their momentum thanks to contracts won with large corporations in 2010.
In all, premium income from mutual insurers advanced 15.4% to €974 million, of which €332 million was generated by
Humanis, a large mutual insurer specialising in supplementary employee benefits, to create a major partnership and seize opportunities in the fast-growing employee benefits market.
A PIONEER IN LONG-TERM CARE Some 900,000 people in France require long-term care, at a total cost of around €20 billion, of which €5 billion is financed by local authorities. Increasing life expectancies, the growing needs of the dependent or disabled and the limits of publicly-funded programmes have naturally led private insurers to develop a range of complementary solutions. With nearly 30 years of experience in this market, CNP Assurances is moving the debate forward, lobbying alongside its partners. In 2010, two million civil servants obtained immediate loss of autonomy cover under health insurance contracts offered by our partner MGEN (the teachers’ mutual insurance company). In 2011, an optional, bespoke guarantee was added to the package and taken up by 2,000 insureds within a few months.
“Potential overall solutions to long-term care needs are the topic of a national debate in which CNP Assurances has decided to play a leading role. The idea is to create intergenerational solidarity through a basic system of obligatory contributions, supplemented by optional personal contributions set by each individual based on his/her financial capacity and end-of-life income. The challenge is to raise individual awareness about the urgency of the matter in order to gain the critical mass needed to organise a collective, sustainable solution for the benefit of all.
DELIVERING PERFORMANCE In France, the term creditor insurance market grew by more than 3% in 2011. The increase was led by home loans, which continue to rise despite a decline in transaction volume. CNP Assurances’ premium income in this segment totalled €3.1 billion for the year. Growth was led by the strong expansion of our main partners in France
La Banque Postale, Banques Populaires and Crédit Immobilier de France – and of term creditor business outside France, which was up 26% thanks largely to Brazil and Italy.
Borrowing money securely CNP Assurances has confirmed its leadership position in term creditor insurance by adapting to its partners’ needs and to customer behaviours.
315 PARTNER FINANCIAL INSTITUTIONS Underpinned by long-term agreements, our business model has continued to prove effective. In 2011, we celebrated the 50th anniversary of our partnership with Crédit
Agricole and continued to seek out new customers. We won an Action Logement Groupe
Sud Est contract to insure loans financed by the government housing levy, raising our share of this market to 20%. Co-insurance agreements signed with Natixis Assurances and the agreement signed with Genworth to reinsure loans granted by GE Money Bank helped to further diversify the business.
SATISFYING PARTNERS AND INSUREDS In France, in 2011 75% of medical questionnaires (1,300,000) were directly processed in branch by our partners’ insurance advisors using the CNPNet software application. To optimise claims management, our teams introduced the new Navéo application, which allows claims to be processed within a maximum of five days. The widespread use of
February 2011 and implemented in September by CNP Assurances, improves the disability cover extended to our policyholders.
Placing a priority on affordability, while segmenting offers to meet individual needs, we pool risks as necessary to ensure that the most vulnerable policyholder categories are covered.
12 million loans insured in France by CNP Assurances as of end-2011 €3.1bn in global term creditor insurance premiums in 2011
FILASSISTANCE: MORE THAN 7 MILLION BENEFICIARIES Filassistance International develops innovative personal assistance solutions that are bundled with classic health or funeral insurance or the more recent pension or long-term care contracts. These services are designed at the same time as the financial benefits and included with CNP Assurances’s personal risk and savings products as with its long-term care products. In this way, we can partner policyholders throughout the life of their contract with an offer combining financial benefits and information, prevention, assistance and in-kind services in a single package. In 2011,
Accessing life enhancing services CNP Assurances took the lead ten years ago by inventing “insurassistance” products that combine financial benefits and in-kind services in a single contract.
AGE D’OR SERVICES: ON HAND FOR 20 YEARS When confronted with one of life’s hazards, policyholders can rely on Filassistance
Services. Its medico-psychosocial teams are on call 24/7 to listen, advise and recommend the right service provider for their situation.
Close to 10,000 personal service providers have been pre-selected by Filassistance in the 20 professions recognised by France’s Borloo
Personne banner. Âge d’Or Services, which was acquired by CNP Assurances in 2002, lends its support through a network of 147 franchisees and over 1,000 care givers. In 2011, the network celebrated its 20th anniversary and commemorated its many achievements. In the past 20 years, Âge d’Or Services has extended its offer and become a provider of multiple services, including personal support, handiwork, gardening, home care and meal delivery. In addition, over 100 of its agencies (serving 40,000 customers) have earned
Aged 64 on average, 45% of these carers also hold down a job and 75% are women. They need to be supported. We were thinking of them when we created an assistance service for carers that is integrated into our contracts. Personal risk policyholders and group insurance beneficiaries who find themselves caring for a loved one are immediately covered under these programmes.”
CNP Assurances is a natural advocate of sustainable development. Its continuous drive to broaden access to insurance strengthens its profile as a responsible corporate citizen, while its dynamic approach to socially responsible investing allows policyholders themselves to play a part in the sustainable development process.
A responsible insurer For CNP Assurances, the keys to policyholder and partner confidence lie in acting responsibly and maintaining high standards of efficiency.
MODERNISING CUSTOMER RELATIONS The CNP Assurances business model organises customer relations based on two phases: i) product marketing through the partner networks and ii) policy administration by CNP Assurances. Offering highquality customer service means maintaining a seamless relationship throughout the life of the contract, using cutting edge information and management systems.
For example, our partners are equipped with insurance workstations comprising a suite of applications that are connected to our Group-wide system. They enable customer relationship managers in bank branches to instantly perform a variety of operations and spend more time advising the customer. In 2011, the workstations used by La Banque Postale (Partages) and the Caisses d’Epargne (Puma) were upgraded in step with new product and service development, with an uptime rate of nearly 100%.
LISTENING TO POLICYHOLDERS Satisfaction surveys have become a core component of our quality control strategy. In 2011, the Policyholder Services unit conducted a survey among policyholders and beneficiaries to identify weaknesses in our services and develop corrective solutions.
Act of 2007. This means that payouts are systematically adjusted a year after the insureds’ death. Our ethical stance comes as a surprise to some customers who are impressed by our efforts to find them and appreciate that we pay them the investment yield.”
The med ia t i on se rv i ce se t up by
The mediation service was asked to examine 1,067 cases during the year, up 10% more than in 2010. The increase was primarily due to the deepening economic crisis and the growing number of households with unmanageable levels of debt. In 55% of cases, complaints were resolved in the insured’s favour.
PRI Principles for responsible investment defined by the United Nations mediation cases out of over 15 million policies
Responsible Investment (PRI) in 2011, we affi rmed our objective of extending environmental, social and governance (ESG)
Postale Asset Management, we have developed socially responsible investment strategies that consist of selecting the best companies in terms of ESG criteria and verifying their compliance with those criteria each quarter.
This monitoring process was initiated in 2006 for the equity portfolio and extended to the corporate bond portfolio in 2011.
CNP Assurances participated in the shareholders ’ meetings of 117 companies and voted on 2,098 resolutions. In this way, we fulfi lled our role as an active shareholder of substantially all of the French companies and the main foreign companies in the portfolio.
SRI portfolio at fair value in 2009 2010 2011 € millions at 31 December
A responsible employer Faced with a changing insurance business and the need to remain competitive, CNP Assurances manages its human resources responsibly.
in employee numbers have given impetus to our internal mobility strategy. In 2011, 58.9% of the positions offered were filled by internal candidates. Efforts have intensified to provide employees with personalised assistance in defining and achieving their professional ambitions. During the year, 89%
of employees benefited from a performance review and 766 from a career review.
Caisse des Dépôts Group. The two organisations share job openings via the Mobil’Idées application and build bridges between job families to stimulate talent exchange. Promotions continue to be widely used to recognise skills and retain talent, with 156 employees promoted in 2011.
PROMOTING DIVERSITY To better understand the needs of our policyholders, we strive to create a diverse workplace that reflects the make-up of society. Disabled employees accounted for 5.61% of the workforce at the year-end, representing 107 employees in all, of which 98 under permanent contracts. In addition, we provided work for sheltered workshops, corresponding to 40 “beneficiary unit”
Our commitments between men and women has narrowed by 2%. In addition, the Diversity label we earned in 2009 has been renewed by AFNOR.
Diversity Steering Committee representing all of the organisation’s functions. This initiative should help to further diversify the
DIALOGUE OUTCOMES A sixth agreement to promote the employment of people with disabilities was signed last year, covering the period 2011 to 2014.
A second agreement on gender equality was also signed with all of the employee representative bodies, committing the organisation to quantitative objectives for gender diversity and the promotion and training of women over the next four years (20122015 ). Negotiations in favour of keeping employees aged 45 and above in employment began in September and negotiations concerning psycho-social risks should reach their conclusion in early 2012.
EMPLOYEE WELL-BEING An in-house mediation system has been set up to prevent and address workplace conflict and distress in cooperation with the human resources and management teams.
In 2011, employees made use of the system 67 times, mainly to ask for advice or support. In addition, an external 24/7 hotline run by Filassistance has been set up to listen to employee concerns. A member of the occupational health, safety and working conditions committee is now the point person on psycho-social risks and meets with the in-house mediation team at least once a quarter.
of managers have received training on equal opportunity employment of Group employees under permanent contracts at end-2011
The shareholders’ club The Shareholders’ Club provides its nearly 8,000 members with free access to information and additional services, regardless of the number of shares they hold.
Over 23% of the Company’s capital is in the hands of the public, including institutional investors, individual shareholders and employees.
of the capital, 2,438 directly and some 1,450 through the corporate mutual fund.
TRANSPARENT COMMUNICATIONS CNP Assurances is committed to providing the financial community with comprehensive information that is readily available, transparent and easy to understand. We communicate through financial publications, newsletters, two financial information sections on our website www.cnp-finances.fr dedicated respectively to individual shareholders and institutional investors, and two email addresses where shareholders can send
inquiries. Shareholders in France can call a toll-free number to find out the latest share price and the levels of the benchmark indices, link up to a voice server to hear recent news or speak to a shareholder advisor.
TREATING SHAREHOLDERS EQUALLY Each of our shareholders is important to us.
PAIN PREVENTION AND MANAGEMENT The CNP Assurances Foundation is dedicated to raising awareness about best practices in the area of pain management. In 2011, it sponsored the film “A vous de jouer! La distraction des enfants lors des soins” created by the non-profit organisation Sparadrap.
douloureux” (“Itinerary of a patient in pain”), illustrates the optimal step-by-step handling of such situations.
In 12 years, the foundation has allocated nearly €7.7 million to 200 projects conducted by healthcare professionals and non-profits.
ENCOURAGING EMPLOYEES TO BECOME INVOLVED The CNP Assurances Foundation helps to fund projects in which employees are personally involved. In 2011, for example, the
The foundation also fulfilled the dreams of sick and disabled children by offering them their first airplane flight through the “Rêves de gosse” programme, and sponsored the purchase of a filtration system to improve access to drinking water for 190 orphans living at the Bananule School in Kampala,
St. Martino Tower, which commemorates the battle of Solferino and symbolises the forging of a united Italian nation.
“40,000 people die every year from a heart attack in France.
This major health problem triggered new legislation in 2007 authorising people without medical training to use a defibrillator. In keeping with its mission to protect life,
But people still need to overcome their fears of using the equipment. For this reason, whenever a defibrillator is installed with the foundation’s support, training is systematically provided to local users. The foundation finances part of cost of the equipment and training, which must go hand-in-hand in order to be effective.”
And while we have a small carbon footprint due to our service-oriented business, we do everything we can to reduce that impact.
Broader take-up of electronic policyholder statements will be of widespread benefit, by improving the service offered to policyholders and partners alike. Caisses d’Epargne customers can now download their statements from the network’s website and advisors can check the statements directly on their workstations. Similar services will be introduced in 2012 for La Banque Postale’s customers.
Protecting the environment The carbon audit confirmed our environmental challenges and strengthened our determination to address them.
emissions caused by internal operations have shrunk by 2% to 22,000 tonnes of carbon equivalent since the 2009
This is being addressed by optimising printing resources and installing webcams at 200 manager workstations.
The first concerns the restoration and management of 117 hectares of moorland with a view to protecting the butterfly species
Coenonympha oedippus. The other concerns the restoration of more than 15km of streams and rivers to create habitat corridors for endangered and threatened fauna such as the European mink and the otter.
ONGOING ACTIVISM In 2011, we maintained our commitment to raising environmental awareness among our employees. The CNP Assurances annual convention rallied employees around the theme of the UN International Year of
Week, Mobility Week and SRI Week, a large number of meetings and workshops were held to discuss the environmental issues facing our Group.
Green initiative The carbon footprint of our Brazilian subsidiary Caixa Seguros, due to business travel and buildings, was reduced by over 10% in 2011 to 2.32 tonnes of carbon equivalent per employee. Going a step further, the subsidiary is offsetting its greenhouse gas emissions through an Atlantic Forest reforestation programme in partnership with NGO Iniciativa Verde. The reforestation initiatives have a positive effect on biodiversity, water resource quality and soil conservation. They also help to restore natural carbon sinks to areas that have been encroached upon by the constantly expanding dairy farming industry.
of Group employees have access to a recycling system 172,219 tonnes of CO
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Association Française de l’Assurance (AFA) Set up in July 2007, this industry association examines insurance-related issues and lobbies on behalf of the industry. It is presided on an annual rotating basis by the presidents of
Adjusted NAV and value of in-force business provide an indication of the present value of future profits expected to be derived from the insurance book, while the new business value provides an indication of the value of business written during the year. These indicators for CNP Assurances are determined using the market consistent approach.
Embedded Value Principles (MCEV©)* except in the case of Caixa Seguros, for which a traditional method is used.
Environment, social and governance (ESG) criteria Criteria used to determine the extent to which a company, local authority or national government is socially responsible.
Group Insurance Class of insurance allowing a company (or an association, local authority, mutual insurer or bank) – “the policyholder” – to take out an insurance policy covering a natural group of individuals (such as the company’s employees)
Guaranteed rate contracts Life insurance contracts under which the insurer guarantees the payment of a certain minimum yield over a specified period, in compliance with applicable regulations.
IFRS (International Financial Reporting Standards) Internationally recognised accounting standards that all listed European companies are required to apply as from January 2005.
Institut National de Prévoyance Collective (INPC) A non-profit organisation set up in 1982 to promote the development of employee benefit and pension plans managed jointly by employer and employee representatives. Its purpose is to provide employees with additional income on retirement, on top of their pension under government -sponsored pay-as-you-go schemes.
Life annuity A guaranteed stream of payments to the insured until his/her death (and subsequently to any designated beneficiary if the contract includes a reversion clause).
Term creditor insurance Insurance policy whereby an insurer commits to making loan repayments on behalf of the insured following the occurrence of an insured risk.
Reform Act (“Fillon Act”) of 21 August 2003 to replace the PPESV (Plan Partenarial d’Épargne Salariale Volontaire) employee savings plan. Group pension product, accounted for as an employee savings plan not as life insurance. Benefits are payable as a lump sum or an annuity. Early withdrawal of the capital is allowed in a limited number of circumstances.
PERP (Plan d’Épargne Retraite Populaire) Personal pension plan introduced in the
August 2003, open to everyone. Tax-advantaged pure annuity product with no surrender option. A PERP layer may now also be added to
“Article 83” group pension plans. These twolayer plans are known as PERE (Plan d’Épargne
Pensions Reform Act, savers have the option of receiving a lump sum on retirement.
Personal risk Insurance contract paying a temporary or life annuity to the insured or designated beneficiaries in the event of an accident, illness, death, a loss of autonomy, inability to repay loans or unemployment.
Policyholder dividends In life insurance, the portion of the investment yield distributed to policyholders in the form of dividends, as required by law.
Required capital Minimum coverage of insurance risks required by law to protect the interests of the insured.
Required capital carrying cost corresponds to the present value of the cost of equity capital held to cover required capital over the period until all obligations to policyholders have been extinguished. It is calculated as the difference between the return expected by shareholders (discount rate) and the net of tax return earned from the investment of the required capital.
Solvency II Reform of European insurance regulations applicable from 1 January 2014, designed to better align insurance and reinsurance companies’ required capital with their risk exposures.
Traditional savings contract Insurance policy for which the surrender value and benefit payments correspond to a cash amount).
Traditional savings contract with a unit-linked formula Insurance policy for which the surrender value and benefit payments are expressed as either a cash amount or in units. The policyholder generally has the choice between investing premiums in a traditional savings or a unit-linked fund. Some policies allow policyholders to shift their capital from one fund to the other during the life of the policy.
Unit-linked contract Insurance policy for which the surrender value and benefit payments are expressed in units, generally corresponding to the number of units in a mutual fund. The insurer guarantees the number of units in the fund, but not their value.
To learn everything you always wanted to know about life insurance, visit www.toutsavoirsurlassurancevie.fr
Most of our publications are available on request in both French and English and can be downloaded from www.cnp.fr or www.cnp-fi nances.fr. Our Shareholders’ Guide and Guide to General Meetings are available in French only.
Visit the CNP Assurances website to learn more about our subsidiaries and businesses, and discover our advertising campaigns.
Toll-free number (in France): dedicated to shareholders comprising a section for individual shareholders and another for institutional investors. www.cnp-fi nances.fr
A website focusing on fi nancial information so l u t i ons a t CNP Trésor www.cnp.fr
Expanding our role as a corporate citizen, we have started publishing a Corporate
Social Responsibility Report to meet growing demand among analysts for this type of data. The report presents the latest progress achieved in the interest of our different stakeholders and includes new data concerning our subsidiaries.
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