CNP Assurances: Financial Indicators for the First Nine Months of 2012

    CNP Assurances: Financial Indicators for the First Nine Months of 2012

PR Newswire

PARIS, November 14, 2012

PARIS, November 14, 2012 /PRNewswire/ --

Revenue: €19.4bn (down 14%)
Net insurance revenue: €2,283m (up 4%)
Recurring net profit: stable at €755m
Attributable net profit: €783m (up 42%)
Solvency capital: 2.54x required capital including unrealised gains
Further sales of peripheral euro zone sovereign debt securities

CNP Assurances, the leading personal insurer in France, with operations in the
rest of Europe and in South America, has announced its revenue and results for
the first nine months of 2012. These indicators were approved for publication
by the Board of Directors at its meeting on 13 November 2012.

HIGHLIGHTS

  oRevenue down 14.1%, reflecting declines of 18.1% in Savings and 16.8% in
    Pensions:

       oFrance: down 10.4% in a market down 14.0% (like-for-like)
       oInternational: down 24.5% due to Southern Europe.

  oNet insurance revenue up 4.2%:

       oFrance^[1]down 7.9%, reflecting non-recurring factors linked to
         falling interest rates
       oInternational^[1^] up by a healthy 12.9%

  oRecurring net profit stable at €755 million.Attributable net profit up
    42.3% at €783 million, supported by favourable financial market conditions
  oFurther reductions in peripheral euro zone sovereign debt assets:

       oFrench portfolio's gross exposure reduced to €12.7 billion at 30
         September 2012 from €19.2 billion at 31 December 2011.

1. Business review for the first nine months of 2012^[2]

In the first nine months of 2012, consolidated revenue contracted by 14.1% to
€19.4 billion. The decline continued the trend observed in the first half and
mainly concerned the Savings and Pensions businesses.

                                              IFRS
                         2012       2011      % change        % change
    (EURm)            (9 months) (9 months)  (reported)  (like-for-like(1))
    Savings            12,550.5   15,327.3     - 18.1          -18.1
    Pensions            2,364.9    2,843.3     - 16.8          -14.1
    Personal Risk       1,474.2    1,496.4      - 1.5           -0.1
    Term Creditor
    Insurance           2,343.6    2,283.3      + 2.6          + 3.3
    Health Insurance      392.1      364.3      + 7.6          + 7.7
    Property &
    Casualty              268.8      255.7      + 5.1         + 10.4
    TOTAL              19,394.0   22,570.4     - 14.1          -13.5

(1) Average exchange rate for Brazil:

At 30/09/2012: €1 = BRL2.456

At 30/09/2011: €1 = BRL2.311

International operations accounted for one-fifth of total revenue, with 56%
generated in South America. The 24.5% decline in international revenue for the
first nine months was due to the high basis of comparison in Ireland (with
last year's sale of a major group pensions contract), unfavourable exchange
rates in Brazil and sharply lower revenue in Southern Europe.

    (EURm)                                   IFRS
                        2012       2011      % change        % change
                     (9 months) (9 months)  (reported)  (like-for-like(1))
    France            15,674.2   17,644.7     -11.2           -11.2
    Italy (2)          1,094.7    1,659.1     -34.0           -34.0
    Portugal (3)          27.6      200.3     -86.2           -86.2
    Brazil             2,071.9    2,125.5      -2.5            +3.6
    Argentina             43.7       19.9    +119.2          +117.4
    Spain (4)            285.3      312.4      -8.7            -8.7
    Cyprus               136.5      157.9     -13.6           -13.6
    Ireland               54.6      449.6     -87.9           -87.9
    Other Europe (5)       5.5        0.8         -               -
    Sub-total

    International      3,719.8    4,925.6     -24.5           -21.9
    TOTAL             19,394.0   22,570.4     -14.1           -13.5

(1) Average exchange rate for Brazil:

At 30/09/2012: €1 = BRL2.456

At 30/09/2011: €1 = BRL2.311

(2) CNP Italia branch, CNP UniCredit Vita and CNP BVP Italy

(3) CNP BVP Portugal

(4) CNP España branch, CNP Vida and CNP BVP Spain

(5) Including Greece since September 2012

In a French market down by €5.1 billion, CNP Assurances reported a €700
million net outflow of funds, representing considerably less than its market
share. This outperformance was mainly attributable to La Banque Postale's
resilience and to CNP Assurances's presence in the group insurance segment
which stayed on an upward trajectory. In all, net new money was a negative
€600 million across the Group. However, average technical reserves (excluding
deferred participation)continued to grow, rising by2.3%versus the first
nine months of 2011 to €291.6 billion.

  oFrance

In France, revenue for the first nine monthsamounted to€15.7 billion, down
11.2% as reported and 10.4% on a French GAAP basis. Despite the decline -
mainly concerning the Savings business - the Group significantly outperformed
the French savings and pensions market which contracted by 14.0% compared with
the first nine months of 2011.

While the Savings and Pensions segments remained difficult, with unit-linked
sales down by a steep 42.6%, the Group continued to perform well in theterm
creditor insurancesegment, reporting a 7.0% increase in revenue.



 A. La Banque Postale

La Banque Postale'scontribution tonine-monthrevenuewasdown 6.0%at€6,826
million and net new money was at break-even. This represented a particularly
resilient performance in a market where new money was down 14% and net new
money was a negative €5.1 billion. Sales of term creditor insurance remained
strong. In the personal risk segment, La Banque Postale maintained its
momentum with the number of contracts sold rising by 14%, lifted by strong
demand for the Prémunys and Sérénia term life insurance offers.



 B.Caisses d'Epargne

Therevenue contribution of theCaisses d'Epargne (savings banks)dropped
by22.4% to €5,286 million as a result of stiff competition from products
offered by the banks, particularly in the Savings segment. Unit-linked sales
fell by 53.3% reflecting a reduced emphasis on selling unit-linked bond funds
compared with 2011. However, the network's contribution to personal risk
revenues nearly doubled, with over 180,000 policies sold during the period.
Term creditor insurance business also continued to grow, contributing €502
million to revenue.



 C.CNP Trésor

CNP Trésor's revenue contribution declined by 7.6% to €434 million. Its
distribution model based on a team of local insurance advisors helped the
network to withstand the sharp contraction in the French life insurance
market.



 D.Financial institutions

The wait-and-see attitude among homebuyers in France led to an overall decline
in home purchases during the period. Despite this challenging environment, the
revenue contribution of the Financial Institutions partnership centre rose by
3.3% to €1,102 million. The period-on-period growth was mainly due to the fact
that new business accounts for only a small proportion of total revenue. It
also reflected the maturity of the partners' main portfolios.



 E. Companies and Local Authorities

Revenue generated with companies and local authorities amounted to €1,273
million, an increase of 2.6%. In the personal risk segment, for both companies
and local authorities the Group focused on improving margins by adjusting
rates.



 F.Mutual insurers

The revenue contribution from mutual insurers amounted to €700 million, down
4.4%. Growth initiatives focused mainly on developing optional supplementary
long-term care insurance business with MGEN.

  oInternational operations

At €3.7 billion, revenue from international operations for the first nine
months was down 24.5% on the year-earlier period (21.9% at constant exchange
rates), due mainly to the decline in business in Southern Europe.

The decrease in international revenue was offset by a favourable shift in the
product mix towards risk protection insurance.



 A. South America

  oCaixa Seguros (Brazil)

Caixa Seguros's revenue rose 3.6% in local currency to BRL 5,088 million.
However, the subsidiary's contribution to consolidated revenue was down 2.5%
due to the real's decline against the euro. 

While Savings and Pensions business was affected by competition from products
offered by the banks, term creditor insurance continued to grow, rising 21.7%
in real. In all, revenues from personal risk insurance, term creditor
insurance and property and casualty insurance rose by an average 14% and
accounted for over a third of total revenues.

Revenues from the health insurance business launched at the end of 2011
amounted to BRL 15.9 million for the first nine months of 2012.



 B. Southern Europe

  oCNP UniCredit Vita (Italy)

After a strong first half, CNP UniCredit Vita experienced a severe loss of
momentum in the third quarter, with the result that revenues for the first
nine months were down 33.2%. Pensions and Personal Risk revenues nevertheless
rose by 3.3% and 24.7% respectively.

  oCNP Barclays Vida y Pensiones (Portugal, Spain, Italy)

In Southern Europe's very depressed economic environment, CNP BVP experienced
a steep 47.7% drop in revenue to €309.4 million. All business lines were hit
to a similar extent, although it is important to note that the basis of
comparison was very high after revenue more than doubled in 2011. The only
exception was the personal risk business, which grew by nearly 7% albeit from
a still limited base.

  oCNP Laiki Insurance Holdings^[3] (Cyprus)

The 10.1% decline in this subsidiary's revenue was mainly due to the high
prior year basis of comparison which included revenue of €8.8 million from a
single premium contract.



2. Results for the first nine months of 2012

                                       2012       2011

    (EURm)                          (9 months) (9 months) % change

                     Premium income  19,394.0   22,570.4   -14.1%
    Change in average technical
    reserves (excluding deferred
    participation)                    291,568    284,895    +2.3%
            Net insurance revenue*      2,283      2,191    +4.2%
    - Expenses                            661        666    -0.7%
                               EBIT     1,622      1,525    +6.3%
    - Finance costs                      (115)      (109)   +5.7%
    - Income tax expense                 (531)      (468)  +13.5%
    - Minority interests                 (220)      (193)  +14.4%
      Attributable recurring profit       755        756    -0.1%
    Net realised gains on equities
    and investment property                93       (174)      -
    Fair value adjustments to
    trading securities                    143        (32)      -
    Non-recurring items                  (209)         0       -
            Attributable net profit       783        550   +42.3%

*Net insurance revenue at constant exchange rates: up 7.9%



Net insurance revenue rose 4.2% in the first nine months of 2012 compared with
the year-earlier period.

In France, net insurance revenue (excluding own-funds portfolios) was down
7.9% due to non-recurring factors^[4]. The underlying change was an increase
of 5.2%. Net insurance revenue from international operations rose 12.9%
despite the negative currency effect in Brazil. Their contribution to total
net insurance revenue (excluding own-funds portfolios) was 50% for the first
nine months of 2012 versus 45% for the same period of 2011.

Expenses decreased by 0.7%. In France, expenses were down by 2.8%, while in
international operations expenses rose compared with the first nine months of
2011, mainly in Brazil due to the costs of growing the business and amortizing
strategic projects.

EBIT rose 6.3%. Subsidiaries outside France accounted for 44% of the total,
helped by an increased contribution from Caixa Seguros.

Net capital gains generated under the multi-year profit taking programme
concerned equities and investment property and amounted to €93 million. Fair
value adjustments to trading securities represented a positive €143 million.

Profit for the period was adversely affected by net non-recurring expenses of
€209 million, corresponding mainly to transfers to the policyholders' surplus
reserve.

Net profit attributable to equity holders of the parent for the first nine
months of 2012 amounted to €783 million, an increase of 42.3% on the
year-earlier period.



3. Solvency capital

Required capital under Solvency I was covered 1.12 times at 30 September 2012
before taking into account unrealised capital gains. This was slightly below
the 30 June coverage rate, due to an increase in required capital during the
third quarter. Including unrealised capital gains, required capital was
covered 2.54 times.

As announced on 16 October, CNP Assurances has placed USD 500 million worth of
perpetual subordinated notes, mainly with Asian investors. The notes will be
included in equity for the calculation of the coverage rate at 31 December
2012.



4. Investment policy

The Group is continuing to follow a prudent investment policy. The French
portfolio's exposure to peripheral euro zone sovereign debt was reduced to
€12.7 billion at 30 September 2012, with a further reduction in October.

CNP Assurances's regulated information can be downloaded from the Group's
investor information websitehttp://www.cnp-finances.fr



APPENDICES

REVENUE BY PARTNERSHIP CENTRE

    (EURm)                        IFRS                 French GAAP
                             2012     2011            2012     2011

                              (9       (9      %       (9       (9      %
                           months)  months)  change months)  months)  change
    La Banque Postale      6,826.3  7,260.0   -6.0  6,827.6  7,262.1   -6.0
    Savings Banks          5,285.8  6,811.1  -22.4  5,286.8  6,812.4  -22.4
    CNP Trésor               433.6    469.4   -7.6    433.6    469.4   -7.6
    Financial Institutions
    France                 1,102.5  1,067.2    3.3  1,102.5  1,067.2    3.3
    Mutual Insurers          700.2    732.4   -4.4    700.2    732.4   -4.4
    Companies & Local
    Authorities            1,273.5  1,241.5    2.6  1,496.4  1,337.7   11.9
    Other (France)            52.3     63.1  -17.2     52.3     63.1  -17.2
    TOTAL France          15,674.2 17,644.7 -11.17 15,899.5 17,744.4 -10.40
    CNP Seguros de Vida
    (Argentina) (1)           43.7     19.9  119.2     43.7     19.9  119.2
    CNP Vida (Spain)         123.2    123.3  - 0.0    123.7    123.3    0.3
    Caixa Seguros (Brazil)
    (1)                    2,071.9  2,125.5  - 2.5  2,392.6  2,439.2  - 1.9
    CNP UniCredit Vita
    (Italy)                  932.4  1,395.9 - 33.2  1,110.8  1,653.7 - 32.8
    CNP Laiki Insurance
    Holdings (Cyprus)        142.0    157.9 - 10.1    142.8    166.7 - 14.4
    CNP Europe (Ireland)      54.6    449.6 - 87.9     54.6    449.6 - 87.9
    CNP BVP
    (Portugal-Spain-Italy)   309.4    591.7 - 47.7    401.5    664.8 - 39.6
    Financial Institutions
    outside France (2)           -      3.3      -        -      3.3      -
    Branches                  42.5     58.5 - 27.2     42.5     58.5  -27.2
    TOTAL International    3,719.8  4,925.6 - 24.5  4,312.1  5,579.1  -22.7
    TOTAL                 19,394.0 22,570.3 - 14.1 20,211.6 23,323.5  -13.3

(1) Average exchange rates: Argentina: €1 = ARS5.716  -  Brazil: €1 =
BRL2.456

(2) The business of writing term creditor insurance for Cofidis under the EU
freedom of services
directive was discontinued on 1 January 2011 and the
related contracts no longer generate any revenues.



UNIT-LINKED SALES

                                      IFRS                   French GAAP
                                       2011              2012    2011
                              2012
                                        (9                (9      (9      %
    (EURm)                 (9 months) months) % change months)  months) change
    La Banque Postale        336.7     407.0   - 17.3   338.1    409.2  - 17.4
    Savings Banks            478.3   1,024.5   - 53.3   479.3  1,025.7  - 53.3
    CNP Trésor                10.8      18.4   - 41.1    10.8     18.4  - 41.1
    Other (France)             2.5       4.5   - 43.6     2.5      4.5  - 43.6
    Total individual
    products France          828.4   1,454.5   - 43.0   830.7  1,457.8  - 43.0
    Group products France     16.1      17.8    - 9.5   239.0     99.9   139.3
    TOTAL France             844.5   1,472.3   - 42.6 1,069.8  1,557.7  - 31.3
    CNP UniCredit Vita       316.9     643.2   - 50.7   495.3    901.1  - 45.0
    Caixa Seguros          1,068.4   1,233.1   - 13.4 1,068.4  1,233.1  - 13.4
    CNP Vida                  63.2      60.9      3.6    63.2     60.9     3.6
    CNP Laiki Insurance
    Holdings                  45.3      49.7    - 8.9    45.5     57.8  - 21.3
    CNP Europe                 4.8       5.9   - 18.6     4.8      5.9  - 18.6
    CNP BVP
    (Portugal-Spain-Italy)    26.5     127.1   - 79.1   118.7    200.2  - 40.7
    TOTAL International    1,525.1   2,119.9   - 28.1 1,795.7  2,459.1  - 27.0
    TOTAL unit-linked      2,369.7   3,592.2   - 34.0 2,865.6  4,016.8  - 28.7



BREAKDOWN BY INSURANCE CATEGORY

                              IFRS                       French GAAP
                    2012       2011                2012       2011

    (EURm)       (9 months) (9 months) % change (9 months) (9 months) % change
    Individual
    Insurance     14,821.6   17,591.2   - 15.7   15,415.3   18,247.4   - 15.5
    Group
    Insurance      4,572.8    4,979.2    - 8.2    4,796.3    5,076.1    - 5.5
    Total         19,394.0   22,570.4   - 14.1   20,211.6   23,323.5   - 13.3

REVENUE BY COUNTRY AND BY BUSINESS SEGMENT

                                                                        
                                                                  Personal   
                                 Savings          Pensions          Risk            
                             9 mos.            9 mos.            9 mos.    %  
    In EURm (IFRS)             2012    % chg.   2012    % chg.     2012   chg.  
    France                  11,250.9  - 15.9  1,034.1     5.7   1,094.5 - 3.3
    Italy (1)                  985.8  - 31.8     12.7     3.3       7.1  24.7  
    Portugal (2)                10.8  - 94.1      0.0      NS       0.9    NS   
    Other Europe (3)             2.9      NS      0.0      NS       0.0    NS   
    Brazil                      56.5   - 6.4  1,217.0   - 8.3     334.7   3.8  
    Argentina                    4.0    41.1      0.0      NS       8.4  56.7
    Spain (4)                  188.5     5.1     51.2  - 37.5       8.1 - 3.8
    Cyprus                      46.4  - 26.5      0.0      NS      20.6 - 7.6 
    Ireland                      4.8  - 18.6     49.8  - 88.8       0.0    NS  
    Sub-total International  1,299.6  - 33.1  1,330.8  - 28.6     379.7   4.3
    TOTAL                   12,550.5  - 18.1  2,364.9  - 16.8   1,474.2 - 1.5

(continued)


  
                                                      Property
                    Term Creditor       Health            &
                      Insurance       Insurance       Casualty         Total
                     9 mos.  % chg.  9 mos.  % chg. 9 mos. % chg.  9 mos. & chg.
    In EURm (IFRS)    2012            2012           2012           2012
    France           1,925.8    7.0   368.9   6.1    0.0   NS   15,674.2  - 11.2
    Italy               89.2 - 54.6     0.0    NS    0.0   NS    1,094.7  - 34.0
    Portugal (1)        15.8    4.4     0.0    NS    0.0   NS       27.6  - 86.2
    Other Europe (2)     2.3  177.0     0.3    NS    0.0   NS        5.5   566.1
    Brazil  (3)        241.5   14.5     6.5    NS  215.8  5.3    2,071.9   - 2.5
    Argentina           31.4  166.1     0.0    NS    0.0   NS       43.7   119.2
    Spain               37.5 - 12.5     0.0    NS    0.0   NS      285.3   - 8.7
    Cyprus (4)           0.0     NS    16.5 - 1.4   53.0  4.4      136.5  - 13.6
    Ireland              0.0     NS     0.0    NS    0.0   NS       54.6  - 87.9
    Sub-total
    International      417.8  - 13.5   23.2  39.0  268.8  5.1    3,719.8  - 24.5
    TOTAL            2,343.6     2.6  392.1   7.6  268.8  5.1   19,394.0  - 14.1
(1) CNP Italia branch, CNP UniCredit Vita and CNP BVP Italy
(2) CNP BVP Portugal
(3) Cofidis Romania, Belgium, Czech Rep., Greece
(4) CNP Spain branch, CNP Vida and CNP BVP Spain

CNP UNICREDIT VITA REVENUE

                             IFRS             French GAAP
                         2012                2012
    (EURm)            (9 months) % change (9 months) % change
    Savings             879.5     - 32.0    1,057.8    - 31.8
    Pensions             12.7        3.3       12.7       3.3
    Personal Risk         7.1       24.7        7.1      24.7
    Term Creditor
    Insurance            33.1     - 60.6       33.1    - 60.6
    TOTAL               932.4     - 33.2    1,110.8    - 32.8


CAIXA SEGUROS REVENUE


                             IFRS             French GAAP
                         2012                2012
    (BRLm)            (9 months) % change (9 months) % change
    Savings             138.6     - 0.8      926.0      7.1
    Pensions          2 988.4     - 2.6    2 988.4    - 2.6
    Personal Risk       821.9      10.4      821.9     10.4
    Term Creditor
    Insurance           593.0      21.7      593.0     21.7
    Property &
    Casualty            529.8      12.0      529.8     12.0
    Health Insurance     15.9                 15.9
    TOTAL             5 087.7      3.6     5 875.0      4.2


CNP BVP REVENUE


                             IFRS             French GAAP
                         2012                2012
    (EURm)            (9 months) % change (9 months) % change
    Savings             206.1     - 49.6    298.2     - 38.1
    Pensions             46.0     - 41.1     46.0     - 41.1
    Personal Risk         8.9        6.8      8.9        6.8
    Term Creditor
    Insurance            48.4     - 49.9     48.4     - 49.9
    TOTAL               309.4     - 47.7    401.5     - 39.6




2013 Investor calendar

  o2012 revenue and results: Wednesday, 22 February 2013 at 7:30 am
  oAnnual General Meeting: Thursday, 25 April at 2:30 pm
  oFirst quarter 2013 revenue and profit indicators: Thursday, 16 May 2013 at
    7:30am
  oFirst-half 2013 revenue and results: Friday, 26 July 2013 at 7:30 am
  oNine-month 2013 revenue and profit indicators: Friday, 15 November 2013 at
    7:30 am



Disclaimer: Some of the statements contained in this press release may
be forward-looking statements referring to projections, future events, trends or
objectives that, by their very nature, involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated in such
statements by reason of factors such as changes in general economic conditions
and conditions in the financial markets, legal or regulatory decisions or
changes, changes in the frequency and amount of insured claims, particularly as
a result of changes in mortality and morbidity rates, changes in surrender
rates, interest rates, foreign exchange rates, the competitive environment, the
policies of foreign central banks or governments, legal proceedings, the effects
of acquisitions and the integration of newly-acquired businesses, and general
factors affecting competition. Further information regarding factors which may
cause results to differ materially from those projected in forward-looking
statements is included in CNP Assurances' filings with the Autorité des Marchés
Financiers. CNP Assurances does not undertake to update any forward-looking
statements presented herein to take into account any new information, future
event or other factors.



--------------------------------------------------

1. Excluding revenues from own funds portfolios

2. Unless otherwise stated, all data are presented on an IFRS basis

3. Following the partner's name change, CNP Marfin Insurance Holdings (CNP
MIH) was renamed CNP Laiki Insurance Holdings (CNP LIH)

4. Mainly the effects of lower interest rates.





Contacts:


CNP Assurances
Florence de MONTMARIN
+33(0)1-42-18-86-51


Tamara BERNARD
+33(0)1-42-18-86-19
servicepresse@cnp.fr


Contacts for Analysts & Investors:
CNP Assurances
Jim
ROOT
+33(0)1-42-18-71-89


Annabelle BEUGIN-SOULON
+33(0)1-42-18-83-66


Jean-Yves ICOLE
+33(0)1-42-18-94-93
infofi@cnp.fr







SOURCE CNP Assurances
 
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