incorporated in France with fully paid up share capital of €686,618,477
We experience many changes during our lifetimes. By anticipating these changes, CNP Assurances is able to offer personal risk insurance and savings solutions tailored to each person’s needs in order to better protect their future.
2. Protection: health insurance and term creditor insurance. 3. Estimates based in part on the number of managed policies, rounded up.
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Viewpoints Jean-Paul Faugère Frédéric Lavenir LAst yeAr’s souNd PerformANCes Attest to the roBustNess of the CNP AssurANCes modeL ANd its ABiLity to evoLve iN LiNe with the GrouP’s strAteGiC GoALs.
FréDériC LAvENir Chief Executive Officer mark. Behind the figures, there were three notable trends. First, our value creation strategy led to a ramp-up of business in high value- added segments and a sharp rise in new business margins. Second, our position in Brazil was strengthened, reflecting not only our deep and lasting commitment to Latin America but also
You have presented the 2013 results to shareholders. How would you describe the past year? Frédéric Lavenir - It was a year of vibrant growth. the figures speak for themselves, with premium income up 4.6% and attributable profit above the one billion euro our potential for growth in this market. In line with our tradition, we continued to pay close attention to the asset portfolio’s yield-to-risk ratio in a changing financial environment. But the highlight of the year for me was the engagement of our teams in supporting our performance and starting to deploy our strategic priorities.
“our first duty is to be the benchmark in long-term financial security, as we have been throughout our Group’s history.”
“our position in Brazil has been strengthened, reflecting our deep and lasting commitment to Latin America and our growth potential.”
Spain. As the economic and financial environment stabilises, our local teams should start to be rewarded for their efforts. the Board is closely monitoring their results and comparing them to the associated risk factors which are clearly understood and controlled. Alongside these existing operations, there is our strategic objective of expanding our footprint on an open model basis, particularly in the term creditor insurance and highend savings segments. Frédéric gives us regular updates on his initiatives in this area and the business unit that he’s created to drive this process is particularly dynamic. the Board is confident in
“All insurance companies naturally have a duty to help finance the economy. this is even more true for CNP Assurances.”
€44 billion invested in major French groups, becoming key partners in their development. CNP Assurances is also one of the leading investors in private equity, with a total net commitment of €3.1 billion. In 2013, we participated in the launch of the Novo bond funds which have raised €1 billion for French SMEs and mid-tier companies, with €100 million provided by our group. Last but not least, we are holding over €17 billion worth of bonds issued by State-owned enterprises such as SNCF, RAtP and RFF, providing finance to support their capital spending plans.
What’s the outlook for 2014? Jean-Paul Faugère - the economic and financial environment in Europe remains uncertain and Brazil is experiencing slower growth. However, I’m convinced that our teams’ sustained commitment to serving our policyholders and partners will make a difference. this year, the Board of Directors will formally sign off on its first own Risk and Solvency Assessment
Efficient corporate governance 1. Skills and areas of experience listed in Article L.322-2 of France’s Insurance Code. 2. Qualified as independent within the meaning of the AFEPMEDEF corporate governance code for listed companies. 3. Subject to ratification at the Annual general Meeting on 6 May 2014.
• Anne-Sophie Grave, Pensions and Solidarity Director, Caisse des Dépôts et Consignations
• olivier Mareuse(3), group Finance Director, Caisse des Dépôts et Consignations
• odile Renaud-Basso(3), Deputy Chief Executive officer of Caisse des Dépôts et Consignations
• Sopassure, represented by Marc-André Feffer, Deputy Chief Executive officer of La Poste – in charge of Strategy and Development, International and Legal Affairs and Compliance
• Jean-Yves Forel, Chief Executive officer and member of the Management Board of BPCE in charge of the Commercial Banking and Insurance Division
• Rémy Weber(3), Chairman of the Executive Board of La Banque Postale
• The French State, represented by Ramon Fernandez, Director general of the treasury
• Stéphane Pallez(2), Chairman and Chief Executive officer of Caisse Centrale de Réassurance
Board of directors the Board of Directors of CNP Assurances comprises 18 directors, 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 experience required to serve on the board of an insurance company(1). these include experience of the insurance and financial markets, a good
EBIT BY REGIoN PREMIUM INCoME BY BUSINESS SEGMENT (in %, IFRS)
NET PRoFIT ANd dIVIdENd RECoRd (in € per share and € millions for profit) from 2007 to 2013
PREMIUM INCoME BY PRodUCT SEGMENT A product positioning aligned with demographic trends and the growing social need for protection and security.
our PerformANCes Attest to the roBustNess of the CNP AssurANCes modeL ANd its ABiLity to evoLve iN LiNe with the GrouP’s strAteGiC GoALs.
At the Annual general Meeting of 6 May 2014 the Board of Directors will recommend paying a cash-only dividend of €0.77 per share for 2013.
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Lasting shareholder relationships our AmBitioN is to CreAte vALue for ALL CNP AssurANCes stAkehoLders iN LiNe with our CommitmeNt to ACtiNG
Providing long-term support for employees - total number of employees: 4,809.
Assuming our responsibility to the economy - Percentage of f inancia l assets (CNP Assurances and consolidated subnal operations and policyholder communications, CNP Assurances).
CNP ASSURANCES SHARE PERFoRMANCE CoMPAREd WITH THE CAC 40 ANd INSURANCE INdUSTRY SToCkS (From 6 october 1998 to 20 February 2014 (closing price, source Bloomberg)
Since the stock market flotation in october 1998, the share price has gained 156.1%, compared with a 38.9% rise in the CAC 40 index and a 12% decline in the Dow Jones
In 2013, CNP Assurances shares gained 28.4%, in line with the 28.9% increase for insurance industry stocks.
hensive, transparent, understandable, easily accessible financial information. Information sources include financial and corporate documents, shareholder newsletters and the corporate website, www.cnp-finances.fr, comprising separate sections for individual shareholders and institutional investors.
SBF 120, Euronext 100, DJ Euro Stoxx Insurance, ASPI Eurozone 120, Ethibel Excellence Index Europe
• Average daily trading volume in 2013: 357,229 shares per day (source Bloomberg)CNP ASSURANCES’S SRI
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the Cnp assuranCes offer for its partners, la Banque postale anD
• Align the product offer with mass-market customers’ need for simplicity and security, while also supporting our partners’ move upmarket.
• Adapt our service level, in terms of quality and responsiveness, to each customer segment.
An offer that is useful, affordable and close to the customer, to enable as many people as possible to purchase protection and secure their future points of sale and contact in France Two deep networks covering the whole of France 1.4million contracts managed, illustrating CnP Assurances’s mass processing capacity million incoming phone calls, illustrating CnP Assurances’s service quality joint subsidiAriEs 5.2 million customers with La Banque Postale 4.9 million customers with the Caisses d’Epargne
Écureuil vie développement The Caisses d’Epargne network’s marketing subsidiary €16.3bn in premium income generated with our two partner networks, representing 59% of the Group total b u s i n e s s
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A model that creates value CnP Assurances reported 2013 premium income of €21.1 billion in France. Of the total, €8.8 billion was generated by La banque Postale and €7.5 billion by the Caisses d’epargne network. The strategic decision to focus on creating value was clearly apparent in the sharp improvement in the product mix in favour of high value-added products. For example, premium income from traditional savings products contracted by 5.8%, but new money invested in unit-linked pension savings contracts rose 35.6% to €1.5 billion. 52% of the Caisses d’epargne’s pension savings business came from private banking customers in 2013, and the unit-linked weighting reached a record high of 11.4%
The Cachemire Patrimoine life insurance contract is the first product to be developed under this new strategy. Designed and launched jointly by CnP Assurances and La banque Postale, the contract was closely monitored by the two teams to ensure that the administrative circuits were aligned with policyholders’ expectations. Cachemire Patrimoine incorporates two innovations: not only does the managed portfolio include equities and trackers, it can be combined with a traditional portfolio and a portfolio that policyholders manage themselves. Trialled
enhanCeD its offer in orDer to help as many people as possiBle to seCure their future.
€16.3bn of premium income generated by the two major partners in 2013 growth in unit-linked savings revenues in early 2014 in the nord and Pas-de-Calais regions, Cachemire Patrimoine will be rolled out to all regions of France in mid-May.
helping caisses d’Epargne to fulfil their commitment to offering insurance solutions for all CnP Assurances’s innovations support the Caisses d’epargne network’s policy of offering insurance solutions for all, without excluding anyone.
simple and affordable, the Ecureuil Solutions Obsèques funeral insurance product has already won over nearly a million customers. The Garantie Famille product, which enables the insured’s family to maintain the same standard of living for a certain period after his or her death, has been in strong demand for several years. in 2013, it was enhanced with the addition of serious illness and loss of autonomy cover.
“we make all our expertise available to la Banque postale to guarantee the satisfaction of our shared customers.”
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modernising the offer, moving to paperless communications and constantly driving up service quality.
“our close relations and shared commitment to innovation allow the Caisses d’epargne network to offer a full range of affordable insurance solutions for all.”
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on its expertise in managing partnerships to Develop new growth Drivers outsiDe franCe, through a mix of joint ventures anD simple DistriBution agreements.
An open model for Europe economic region in the world, the european market accounts for 23% of global GDP
• CnP Cyprus insurance Holdings (CiH) with bank of Cyprus in Cyprus and Greece strAtEgic goALs
A model whereby the insurer supplies insurance products to several independent distribution partners.
• High-end savings products b u s i n e s s
A sharp recovery in business volumes in 2013 in italy, business volumes were just short of their 2011 level, after an historically weak 2012. in Cyprus, in a very tense economic environment, the backing of CnP Assurances - France’s leading personal insurer - inspired confidence and the network continued to enjoy strong business volumes. Lastly, the 76.6% surge in unitlinked sales in the europe excluding France to the distribution firepower provided by bank of Cyprus.
robust platforms to support the development of open model partnerships Our open model partnerships continued to flourish despite the still uncertain economic environment in southern europe. CnP italia, CnP Vida and CnP españa against the risks of everyday life in the current depressed economic and financial environment. And it is also keeping a close watch on the lending market, which is showing signs of recovery.
We are also shareholders alongside barclays bank in CnP barclays Vida y Pensiones (CnP bVP) which has operations in three countries of southern europe, spain, Portugal and italy. The joint venture develops and manages savings and term creditor insurance products that are distributed through the 1,000-strong barclays branch network to the bank’s 1.5 million customers in these three countries. The latest product is the Barclays Pensión Horizon 2020 pension plan launched in spain at the end of last year. in Cyprus, we joined forces with the country ’s leading bank, bank of cyprus, to set up CnP Cyprus insurance Holdings (CnP CiH). This subsidiary’s life insurance and property and casualty insurance products are distributed through bank of Cyprus branches and by a network of independent agents. CnP CiH also operates in Greece, where it offers savings and personal risk insurance products, as well as automobile, fire and earthquake insurance solutions tailor-made for Greek policyholders. in Greece too, a network of independent agents and the Postal bank network add region reflected our determination to grow the businesses that create the most value.
the joint-venture model Our Group’s development in europe has been based on the historical model, which consists of setting up long-term partnerships with well-established distribution networks, preferably banking groups, and giving partners a stake in results through ownership of shares in the partnership vehicle.
Targeting promising new markets Cnp assuranCes is leveraging its expertise, platforms anD marketing presenCe to speeD
together generated over €330 million worth of premium income from sales of term creditor insurance, personal risk insurance, savings and pensions contracts through distributors looking to diversify their offers. The list of potential partners under the open model is long and includes, for example, retail banks, private banks, consumer credit companies, major retailers, fund managers, independent financial advisors and brokers.
price risks with a high degree of accuracy and efficiently manage loss ratios for this complex, long-term cover. Thanks to our platforms in europe, we have extended our knowledge to other markets and to other cultures and economic environments. For example, different risk selection practices are followed in spain and italy. While term creditor insurance is semi-compulsory in France, in other countries it is largely optional. And in some countries, it is sold as a single policy, in others disability cover may be purchased from one company and death cover from another. Likewise, the premium may be payable up front or over the life of the loan. Our experience of these differing systems will help us to develop tailored approaches to our european expansion. in Germany, for example, the mortality risk and the healthcare system are similar to those in France, meaning that our experience of managing death risks is transposable. The same is not true, however, for unemployment risks, due to the far-reaching differences between the French and German labour markets.
These performances reflect our policy of constant innovation to align products as closely as possible with customers’ interests. examples include the redefinition of incapacity as the insured’s inability to perform his or her job (and not any job) and the introduction of price bands based on narrower age groups that has made La banque Postale’s new offer among the most competitive in the market. Alongside these major distribution partners, the other partner financial institutions generated €1.5 billion in term creditor insurance premium income, up by 1.1% on 2012. During the year, we continued to upgrade our underwriting systems and achieved a considerable head start over our competitors by introducing full on-line term creditor insurance underwriting (see box). We have everything we need to step up the pace of our european expansion: the expertise, products aligned with the expectations of mature markets and systems that simplify their underwriting and administration.
it significantly reduces customers’ perception of the time required to purchase insurance, facilitates the bank’s back and middle office processes and offers more secure storage of insurance applications. a trusted third party acts as certifier and provides secure digital archiving services. the solution is a decisive building block in our digital offer, accentuating our competitive advantage and extending our leadership of the term creditor insurance market.
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With our partners, contributing to the social safety net as new Challenges emerge, suCh as inCreaseD life expeCtanCy, pensions reform, slower eConomiC growth anD new vulneraBilities, Cnp assuranCes is working with its partners anD Customers to rethink group supplementary insuranCe.
• supplementary health insurance: combine effectiveness with close management of costs
• incapacity insurance: provide effective support to insureds while they are off work and when they return to their job
in-house insurance advisors The network of insurance advisors directly employed by CnP Assurances is deployed across France to advise customers about the savings and personal risk insurance solutions best suited to their needs.
in employee benefit plans for local authorities Over 20,000 local authorities and hospitals put their trust in CnP Assurances.
of cnp Assurances’s net insurance revenue is generated by the personal risk-protection business.
the challenge of living healthier for longer French people enjoy one of the longest life expectancies in the world. The average
Insuring and supporting longer lives in a soCio-eConomiC environment that is unDergoing far-reaChing Changes,
life-span has increased considerably in recent decades, to rise above 80 years in the early 2000s. However, healthy life expectancy started to fall in 2006, declining from 62.7 years to 61.9 for men and from 64.6 years to 63.5 for women between 2008 and 2010. This meant that, as of the end of 2010, men could expect to spend fourfifths of their life in good health and women three-quarters of their life. These statistics show just how much scope there is for improving seniors’ health. There are also very marked differences in life expectancy between socio-professional categories in France. The decline in healthy life expectancy creates two major challenges. The first concerns occupational health, to guarantee the employability of seniors as the retirement age is pushed back further and further. The second concerns the long-term health of retirees and the autonomy issue. With our partners, we are rethinking our approach to social protection in the reflected light from these two challenges.
Cnp assurances is a founding partner of the “Demographic transitions, economic transitions” chair created in 2008 at the instigation of fifty economists who wanted economic research to be useful to society. the chaired professor has been leading research into france’s ageing population and the proposed public policy responses to the problem of reconciling the conflicting needs of different generations. Covering such issues as life expectancy, the redistribution of wealth between generations, seniors’ health and long-term care, the research has provided us with a broad vision of the major social trends that will help us fine-tune our projections of future social protection needs.
maGaLY siméon Director, social Protection and services business unit growth in compAniEs’ hEALth-rELAtEd* costs
going further in partnership with mutual insurers and employee benefits institutions The national multi-employer agreement (“Ani”) dated 11 January 2013 provides for an extension of supplementary health insurance to all private sector companies and their employees as from 1 January 2016. This agreement has opened up a whole new perspective for the employee benefits market, by taking more than 5 million employees of micro enterprises and self-employed workers out of individual health insurance and into group insurance plans. For our part, we are developing an emcnp Assurances is enhancing its offers and innovating to meet the needs of insureds and their employers social innovation with local authorities Health-related absences are on the rise among local authority employees in France. The resulting direct and indirect staff replacement costs eat into these authorities ’ budgets and also negatively affect user service quality. As a historical partner of large and small municipalities, with over 20,000 local authorities and hospitals insured, CnP Assurances is innovating to improve the occupational health of the three million public sector workers covered. Our statutory insurance contracts provide for on-site advice and training in occupational health given by a team of health and safety engineers, ergonomics experts, psychologists and consultants specialised in the local authority and hospital sectors. We add value through a number of innovative support techniques. These include mapping professional risks, developing related action plans, creating pathways for the return to work of employees on incapacity leave, and offering psychological support to employees who are repeatedly absent.
ployee benefits offer specifically designed for micro-enterprises and sMes, and giving partner mutual insurance companies and employee benefits institutions the benefit of our technical, operational and innovation capabilities.
services to support independent living The Ani agreement will mark an important milestone for the assistance subsidiaries of CnP Assurances, which has pioneered the concept of “assuristance”. spanning such areas as legal assistance, preventive services and personal services, the new offers support employees over the long term and help them protect their health. Filassistance, the local personal services specialist, offers an assistance formula to purchasers of “women’s cancer” insurance, covering all stages of the disease, from detection to treatment and the related side- effects. The insured’s family are also given help in finding information and solutions. Âge d’or services’ network of 160 franchisees and around 1,400 employees are
Cnp assurances’s ambition: to insure the risks of everyday life and help each insured to enjoy improved well-being throughout their life.
• stay on the look-out for acquisition opportunities in Latin America
points of sale, including lottery ticket sales points €3.1bn 2001 the group sets foot in brazil, by acquiring 51.75% of Caixa seguros, alongside Caixa econômica Federal, brazil’s second largest state-owned bank.
largest insurance market in the world 16.8% annual growth forecast between 2012 and 2017 miLLion brAziLiAns, including 29 million who have joined the middle class in the past ten years.
2.8 million holders of savings and pensions contracts * Protection: health insurance, term creditor insurance and consorcio 38 - CnP Assurances - 2013 Annual Report CnP Assurances - 2013 Annual Report - 39 b u s i n e s s
A very promising outlook Certain features of the emerging brazilian economy command confidence. They include the country’s stability, its health and safety and environmental regulations, its wealth of natural resources and the potential for industrial development. The brazilian insurance market is benefitting from the current social revolution. in all emerging pionEEring dEntAL insurAncE
twenty million Brazilians have never visited a dentist. to meet the needs of a large part of the Brazilian population, Caixa seguros decided to offer a quality service at a low cost and to distribute the offer as widely as possible among the middle and upper classes. at the beginning of 2013, dental insurance products were launched throughout Brazil. Distributed on-line, through Caixa branches and via telesales, the new offer was an outstanding success with over 22,000 contracts sold in the first year. the early 2014 acquisition of tempo Dental will provide Caixa seguros with additional distribution firepower. tempo Dental is one of the leading dental insurance companies in Brazil, with over 524,000 policyholders and an extensive network of dental professionals spanning the whole country.
caixa seguros is consolidating its success by establishing new partnerships and investing in new distribution channels, including on-line distribution.
CnP Assurances Compañia de seguros’s products are distributed not only by banco Credicoop, its shareholder and original distribution partner, but also by over 500 branches of other banks (banco Columbia, Citibank, banco Cencosud, etc.), a network of insurance brokers, ance products at the heart of brazilian daily life, including in the favelas. With 14 million discrete visits to the website and virtual store in 2013, the on-line platform launched in 2011 posted impressive growth rates of 82% in 2012 and 117% in 2013.
Focus on micro-insurance and mass-market products in 2012, six companies were licensed by brazil’s insurance supervisor, suseP, to distribute micro-insurance products. Of the six, only Caixa seguros entered this market in 2013. its experience in affordable insurance, with some 21 million policies sold, provided a solid backdrop for the development of the first micro-insurance offers. These products are designed to protect the socio-economic situation of people with low incomes. The market is estimated at over 105 million people, representing around 60% of the brazilian population versus 40% in 2004. Caixa seguros offers them this protection at an affordable price, with a simplified insurance application process and cover aligned with their needs.
A strong on-LinE sALEs dynAmic the internet naturally has a role to play in Caixa seguros’s multichannel strategy. in 2013, on-line sales represented Brl 115 million (approximately €40 million ), with term creditor insurance for home loans and auto insurance accounting for 11.7% of the total. Dental insurance contributed for the first time, accounting for 0.09%. savings products with a lottery feature, a product specific to Brazil, were also sold on-line, with 0.10% of premiums generated via this channel. a total of 3.3 million customers had signed up for on-line services at end-2013, while the website and virtual store attracted 14 million visits during the year with 36 million pages viewed. in 2014, Caixa seguros will work with Caixa to develop training courses in finance and insurance for people who are novices in these areas.
Creating more value, contributing more to the real economy, screening investments more carefully and double checking risk assessments.
CNP Assurances supports employees throughout their careers with internal mobility programmes, career planning reviews, training and measures to combat stress.
CNP Assurances is committed to ensuring that as few people as possible are excluded from insurance and its Foundation works to protect life.
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environment 7. Business should support a precautionary approach to environmental challenges; 8. undertake initiatives to promote greater environmental responsibility; and 9. encourage the development and diffusion of environmentally friendly technologies.
anti-corruption 10. Businesses should work against corruption in all its forms, including extortion and bribery.
principles of the UN Global Compact guide CNP Assurances’s action throughout the world.
Pledge to uphold the UN’s Principles for Responsible investment (PRi), deployment of the corporate social responsibility (CsR) policy in the subsidiaries and publication of the first CsR report.
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increased by 35.6%, while premium income from personal risk and protection insurance grew 3.4%, contrasting with a 5.8% decline in premiums from traditional savings products. At a time when customers were looking to diversify their investments, CNP Assurances focused on writing high quality business, an approach that lifted the new business margin in 2013. in europe excluding France, premium income surged by 71.2% with the sale of a €420 million group pensions contract. even excluding this contract, growth was an impressive 50.7%, reflecting a return to normal in italy after the previous year’s collapse in the market, and a resilient performance in Cyprus. Unit-linked sales in the region expanded by 76.6% and the strategic decision to focus on creating value in 2013, CNP Assurances and its partners supported the value creation dynamic. Premium income rose by 4.6% to €27.7 billion and the Group reported positive net new money. significantly, the contribution of high value-added businesses increased, driving a 2.5-point improvement in new business margin to 14.1%. the benefits of this strategy were plain to see in France. in the savings and pensions segment, unit-linked sales new business margin rose by 4.2 points to 11.8%, confirming the priority given to creating value in line with the Group’s long-term strategy.
a stronger position in Latin america led by the strong growth dynamic in brazil, premium income in latin America rose by over 19% to €3.1 billion and net insurance revenue was more than 22% higher on a like-for-like basis. Although the un favourable currency effect linked to the steep fall in the real against the euro reduced reported growth rates to 4.9% and 7.3% respectively, latin America continues to represent a powerful growth driver for the Group. in 2013, CNP Assurances made its first forays into the micro-insurance market and recorded further market share gains. two acquisitions have expanded operations in brazil. Previsul has enabled Caixa seguros to add brokers to its distribution channels and tempo Dental has given the company a strong foothold in the buoyant dental insurance segment.
an improvement in the cost/income ratio to 35.8% from 36.7%. ebit for the year amounted to €2.4 billion. Net profit rose by a further 8.3% to €1 billion.
Good insurer financial strength indicators At 31 December 2013, the Group had €14.6 billion in capital, including €2.1 billion in subordinated debt. its enterprise value rose by 16% over the year, primarily reflecting the increased contribution of operations. these solid performances contributed to a small improvement in the solvency capital coverage ratio to a very satisfactory 302% under solvency i. excluding unrealized gains, the hard equity coverage ratio stabilised at 115%. the solvency ii coverage ratio was an estimated 185%. At the same time, at end-2013 the policyholders’ surplus reserve stood at a very high €4.4 billion corresponding to 1.97% of technical reserves for traditional savings contracts.
the group focused on writing high quality business, an approach that drove a 2.5-point increase in new business margin to 14.1% in 2013.
in line with policy of investing for the long term, the bonds in our portfolio are held to maturity and equities are held for long periods (seven years on average), to give the companies concerned the stability and visibility they need to carry their growth strategies to fruition.
a major institutional investor in France, with some €123 billion invested in the economy, CNP assurances is refocusing and optimising its asset management for the benefit of all stakeholders.
investing in public sector debt With a French government bond portfolio valued at €55.4 billion at 31 December 2013, CNP Assurances helps to fund public sector capital investment, support demand and finance national infrastructure projects. We also hold over €17.3 billion worth of bonds issued by state-owned enterprises such as Réseau Ferré de France, sNCF and RAtP. in addition, we help finance regional projects (notably in the ile-de-France and ProvenceAlpes -Côte d’Azur regions) and projects launched by France’s départements and cities.
500 french companies with revenues of less than €50 million are supported by CNP Assurances.
1. the investment amounts correspond to the investments’ net book value in the balance sheet.
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and pension contracts) to be matched by investments in long-term assets. the new rules will apply from 1 January 2016.
esG screens to guarantee high quality investments We incorporate environmental, social and governance (esG) criteria in the investment selection process, because of our firmly held belief that investments with a high esG score offer better yield-torisk ratios over the long term and justify policyholders’ confidence in our Group. introduced in 2006 for the equity portfolio, we extended esG screening to the sovereign debt portfolio in 2010. in France, we 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. Arms manufacturers whose products include land mines or cluster bombes and firms that speculate in a period of change due to revisions to the solvency ii directive, CNP assurances is continuing to prudently and responsibly manage the risks associated with its business.
omnibus ii, creating new challenges 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. solvency ii introduces a change in the key indicator of an insurance company’s financial health – the risk coverage ratio. At 31 December 2013, CNP Assurances’s estimated solvency ii risk coverage ratio was 185%, representing a 15-point improvement compared with the previous year-end and a level of capitalisation well above the regulatory requirement. in November 2013, the omnibus ii technical directive introduced an important amendment to the framework directive, by requiring long-term guarantees (under life insurance, personal risk insurance in agricultural commodities are automatically screened out. in 2011, we pledged to uphold the UN Principles for Responsible investment (PRi) and in 2012 we started to apply esG screens to the corporate bond portfolio, so that by the end of 2013, 80% of assets in policyholder portfolios met esG criteria. the same approach is being rolled out in the subsidiaries, particularly in brazil.
an sRi offer that gives meaning to investments With one in two French people saying that social and environmental performance are high on the list of criteria considered when selecting an investment vehicle, CNP Assurances and its partners actively promote socially Responsible investment (sRi) funds. At end-2013, some 85,000 individual life insurance contracts included sRi funds, for a total investment of €319 million, up by more than 9% compared with the year-earlier figure.
* Ratio of eligible capital to the solvency capital requirement the Corporate risk management department oversees compliance with the principle of double checking by a person independent from the business managers and the local risk management unit.
stand in relation to their professional de velopment goals. in 2013, this process was applied to 96% of Group employees. All of these factors help us to retain staff and contribute to making CNP Assurances a great place to work.
Loyal and talented teams in 2013, the number of employees at CNP Assurances dipped by 3% due to the combined effects of a wave of retirements and carefully considered hiring in a sluggish economic environment. A total of 415 people were hired by the Group as a whole, including managers with expert skills in our strategic growth areas. At 56%, the proportion of managers is considerably higher than the industry average and the gap will continue to widen as our teams become ever more highly skilled. At end-2013, the average length of service was 15.8 years, attesting to our employees’ attachment to the company and the career opportunities that we are able to offer.
in addition, targeted training initiatives were organised to improve knowl edge of such advanced topics as compliance for the investment managers and measures to combat money laundering. in brazil, Caixa seguros developed the country’s first specialist actuarial analysis course in partnership with the Federal University of Rio de Janeiro. in France, deployment of an economic and financial culture e-learning module raised the training rate to a high 86% of CNP Assurances employees.
CNP Assurances is ranked 16th among the best performing companies in the sbf 120 index in terms of gender equality.
as being fair and improving internal communications. A change management guide will be distributed among all managers and new managers will be supported during their “first 100 days” on the job. the system of employee representation is widely appreciated as a means of reporting employees’ concerns and discussing them with management. to address the practical problems, the plan provides for the replacement of many workstations and a close-to-the-user organisation to resolve computer problems without delay.
strength in diversity CNP Assurances has a long-standing commitment to diversity that began in 1995, as demonstrated by several indicators. employees with disabilities represent 5.7% of the workforce and 46.7% of women employees are managers, compared with an industry average of 35%. Among the best performing companies in the sbF 120 index in terms of gender equality, CNP Assurances is ranked 16th the first stress assessment since 2009, we have paid close attention to preventing stress and psychosocial risks. An agreement signed with trade union representatives in 2012 has created a shared framework that helps identify, prevent and manage these risks. it describes the systems that contribute to creating a harmonious working environment, including an internal mediation system, an external hotline available to all employees, manager training and assessments of the psychosocial risks faced by employees. An initial assessment carried out last spring showed a slight reduction in the level of exposure to psychosocial risks compared with the previous survey in 2005, and highlighted four stress factors: time pressure, limited visibility about the Company’s future, the human dimension of management and computer problems.
As of end-2013, 28.9% of senior managers, 33% of board members and over 38% of executive Committee members were women. CNP Assurances was one of the first companies to earn the seal of Diversity in 2009, and has retained it every year since then following audits carried out by the certification body, AFNoR. At the end of 2013, the latest audit was still in progress but the auditors had already highlighted the continuous improvement dynamic.
one of these concerned the human resource planning process, covering both the number of employees and the types of skills that will be needed.
As a personal insurer, we believe in being close to our policyholders. We make it easy to contact our policyholder services department. in 2013, 1.4 million calls were received by our individual insurance call centre, with an 88% call completion rate. We put a complaint form on our website last year, with an explanation of how it should be used for each category of product and each distribution network. since then, the number of complaints has remained marginal at about 0.05%. if the complaint is not resolved to the policyholder’s satisfaction, the mediation service represents an easy-to-use, free dispute resolution process. the service’s contact details are now shown clearly on each policy, leading to an increase in the number of policyholders using it to 1,374 in 2013.
For a caring society CNP AssurANCes’s busiNess As A PersoNAl iNsurer PlACes it At the CeNtre of PeoPle’s lives ANd the reAlities of soCiety.
academic programmes that we support provide a basis for our consideration of the challenges created by the ageing population. Working groups studying major diseases help us to update our knowledge of treatment options and risk profiles. We use this intelligence to adjust our cover.
health insurance, we take full account of the advances in medical care and treatment that help to reduce the level of risk. At the same time, we have become experts in the art of pooling risks, while the size of our business means that we have a broad calculation base. by balancing a high quality assessment of insurance risks with rigorous management of guarantees, we are able to drive down insurance premiums.
Meeting an essential need the economic crisis is threatening the pillars of our welfare systems. Health insurance reimbursements are being reduced, as is the payment period for unemployment benefits, while the pay-as-you-go pension system’s viability is being called into question by the imbalance between generations. the future is more uncertain and the protection afforded by insurance is more useful than ever, particularly for the most vulnerable and poorest members of society. All of this confirms the importance of CNP Assurances’s social responsibility role and the appropriateness of the choice made many years ago to offer insurance solutions for all of our futures.
extended guarantees because a premium uplift or restrictions on cover may prevent a project from being completed, particularly a home purchase, we lobbied hard to enable more people to benefit from the AeRAs aggravated risk convention and we are now actively implementing its terms. in 2013, more than 120,000 people representing an aggravated health risk were able to obtain specific disability cover and, as in prior years, our term creditor insurance rejection rate was just 0.2%.
insurance contracts are now being offered with integrated assistance services, such as support for women cancer sufferers or help in preparing for retirement, while Protection active emploi unemployment insurance combines financial support with personalised help in finding another job.
a 20-year commitment Created in 1993 under the aegis of Fondation de France and the sign of life, the CNP Assurances Foundation’s mission from the outset was to support public health. in 1999, it chose to focus on supporting the fight against pain among people of all ages. ten years later, it decided to add a second area of outreach, first aid to heart attack victims. After becoming a corporate foundation in 2011, it was given a €4 million budget over five years to fulfil its missions. in 2013, after 20 years of engagement, the Foundation’s areas of outreach are being reassessed in light of the changes in society and our new vision of the personal insurance business. two invitations to submit projects led to 66 funding applications being received, of which 37 were selected.
acquiring a taste for competition CNP Assurances has supported Handi equi’ Compet since it was created in 2007. in 2013, it made a €102,000 grant to supply horses and provide physical and moral support for riders with a mobility and/or sensory disability who take part in high level national and international equestrian events. For example, riders from twelve countries took part in the Deauville CPeDi*** international Para-equestrian Dressage Competition in the CNP Assurances Foundation in action the CNP Assurances foundation’s areas of outreach are being reassessed in light of the changes in society and our new vision of the personal insurance business.
tHe New Caixa seGURos soCiaL iNstitUte the brazilian subsidiary has decided to place its programmes to support disadvantaged children and teenagers under the aegis of an institute. the institute supports three types of programme: social programmes, with Jovem de Expressão for example, which aims to combat youth violence in the suburbs of brasilia, environmental programmes, notably with Carbono Seguro which aims to reduce carbon emissions and protects biodiversity, and cultural programmes, to support franco-brazilian projects such as the film Rouge Brésil.
the first institute in brazil to enjoy the backing of an insurance company, the Caixa seguros social institute raises the profile of the subsidiary’s outreach programmes and strengthens its determination to work even harder.
the spring of 2013 which raised the profile of para-equestrian sport.
thinking about the challenges of the future CNP Assurances has acted as a pioneer in personal insurance for the past 160 years and will continue to do so, by supporting advanced research into the major challenges facing the industry. As a supporter of the Fondation du Risque, it finances the “Demographic transitions, economic transitions” university chair, whose professor leads 38 economists in exploring the relationship between the ageing process and poor health, and how people can successfully live together in an ageing society. to encourage open thinking about the future political and economic challenges, CNP Assurances is helping to finance the activities of the Fondation Jean Jaurès and institut Montaigne. lastly, CNP Assurances helps finance the Change Chair at the essec business school, which leads a research laboratory and forum for sharing best change management practices.
CNP Assurances - 2013 Annual Report - 6160 - CNP Assurances - 2013 Annual Report
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The corporate social responsibility policy puts into practice CNP Assurances’s commitment to stakeholders. This commitment is measured by CSR indicators aligned with the Company’s core challenges that have been published since 2006. The CSR Report published every year since 2011 presents the progress made in addressing the full range of stakeholder concerns and discloses comprehensive socially responsible investing information.
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