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CNP Assurances
Earnings Release • Jul 27, 2022
1208_iss_2022-07-27_24699c89-616a-4fd7-8c37-0a4582a4ce20.pdf
Earnings Release
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Press Release
Paris, 27 July 2022
First-half 2022 results indicators
Strong international growth and continued transformation of technical reserves Increased financial strength
Premium income1 of €19.9 billion (up 22.4% vs first-half 2021) EBIT of €1,874 million (up 21.2% vs first-half 2021) Attributable net profit of €748 million (up 8.4% vs first-half 2021) SCR coverage ratio of 249% (up 32 points vs 31 December 2021)
Highlights
- Premium income of €19.9 billion, up 22.4% as reported (up 2.2% like-for-like2) vs first-half 2021
- Savings/Pensions premiums of €16.6 billion, reflecting strong momentum in international markets, with unit-linked sales representing 49.5% of the total, up 0.3 points
- In France, premium income down 3.3% to €8.4 billion, with unit-linked sales representing 32.4% of the total, up 3.9 points, and PACTE transfers of €2.8 billion
- In Europe outside France, premium income of €5 billion (up 12.5% like-for-like), reflecting strong momentum at CNP Unicredit Vita (CUV), the contribution of the newly acquired subsidiaries CNP Vita Assicura/Assicurazione (CVA), and a solid performance at CNP Luxembourg, with premiums up €4 million and a 7.2-point increase in the proportion of unit-linked sales to 56%
- In Latin America, premium income of €3.2 billion, up 14.4% like-for-like, led by the Pensions business
- Total Personal Risk/Protection premiums of €3.3 billion, up 1.1% like-for-like
- Savings/Pensions premiums of €16.6 billion, reflecting strong momentum in international markets, with unit-linked sales representing 49.5% of the total, up 0.3 points
- EBIT of €1,874 million, up 21.2% as reported (up 13.5% like-for-like)
- Attributable net profit up 8.4% (up 4.6% like-for-like) at €748 million
- Improved Group cost/income ratio of 28.1% (down 1 point), with France down 0.6 points, Europe excluding France down 6.7 points, and Latin America up 0.6 points excluding scope and currency effects
- Consolidated SCR coverage ratio of 249% at 30 June 2022 (up 32 points vs 31 December 2021)
Stéphane Dedeyan, CNP Assurances' Chief Executive Officer, said:
"Our latest Italian acquisition3 , alongside our partner UniCredit, has strengthened our open distribution model business in this region. It also rounds out our other successful recent acquisitions in Italy and supports our multi-partner growth strategy in France and abroad. We are continuing to transform our technical reserves, with unit-linked sales representing 49.5% of the Group's total Savings new money for the period. Amid rising interest rates and spiralling inflation, the SCR coverage ratio of 249%, up 32 points, attests to the quality of our balance sheet and the financial strength of the CNP Assurances Group, as well as reinforcing our ambition to win new markets."
1 Premium income of insurance activities only
2 Based on a comparable scope of consolidation and at constant exchange rates. Average exchange rate for Brazil: first-half 2022: €1 = BRL 5.56 vs first-half 2021: €1 = BRL 6.49/Average exchange rate for Argentina: first-half 2022: €1 = ARS 122.68 vs first-half 2021: €1 = ARS 110.16 3 Press release 27/07/2022
1. First-half 2022 business review
The strong first-half growth in consolidated premium income to €19.9 billion (up €3.6 billion or 22.4%) reflected the €2.7 billion contribution of the new Italian subsidiaries (CVA). On a like-for-like basis, premium income rose by €357 million (up 2.2%), led by international operations (up €631 million or 11.3%). Premiums in Latin America were up €346 million (up 11.6%), reflecting strong Pensions business in Brazil, and Savings premiums in Europe excluding France were up €263 million (up 12.5%). In France, Savings/Pensions new money contracted by 3%, with the decline in new money invested in traditional savings products partly offset by higher unit-linked sales.
In France, premium income amounted to €10.4 billion, down by a slight 2.6% compared with first-half 2021.
Savings/Pensions premium income of €8.4 billion was down by a modest €288 million (down 3.3%), with the €245 million increase in unit-linked sales (up 9.9%) helping to offset the €533 million decline in new money invested in traditional savings products (down 8.6%). The strong unit-linked performance was attributable to La Banque Postale (LBP, up €124 million or 12%), which led the drive to transform technical reserves, and to CNP Patrimoine (up €154 million or 18.1%), which won several major deals with a unit-linked weighting of over 50%. All told, unit-linked products accounted for 32.4% of total premium income in France, up 3.9 points vs first-half 2021 (increases of 3.1 points at La Banque Postale to 29.9% and 10.4 points at CNP Patrimoine to 59.3%).
PACTE transfers for the period, which are not included in premium income, amounted to €2.8 billion, generating a 13-point gain in unit-linked weighting on transition between the old and new contracts.
Personal Risk/Protection premium income in France was up 0.7% versus first-half 2021 at €2 billion, led by growth in term creditor insurance to keep pace with higher loan originations by the Group's main partners. Personal risk premiums were stable at €677 million.
In Europe excluding France, premium income came in at €5.6 billion, an increase of 115.4%.
Savings/Pensions new money rose by a strong €2.9 billion, of which €2.7 billion was contributed by the CVA subsidiaries. On a comparable scope basis, premium income rose by €263 million to €2.4 billion, including €219 million growth at CUV generated by marketing campaigns focused on traditional savings accounts with a unit-linked formula. For CUV, the proportion of total premiums represented by unit-linked contracts was a high 74.3%. CNP Luxembourg performed well, with the €85 million increase in new money reflecting sustained business and the Covid-related low basis of comparison. The proportion of total premiums represented by unit-linked contracts rose by 7.2 points to 56%.
Personal Risk/Protection premium income increased by €85 million to €0.6 billion, including €63 million contributed by CVA. On a comparable scope basis, premium income rose by €22 million, driven by the success of the products launched in the second quarter of 2021 by CUV, which reported premium income up €28 million (including €19 million growth in personal risk insurance and a €9 million increase in term creditor insurance).
In Latin America, premium income came in at €3.9 billion, up 30.2%.
Savings/Pensions premium income amounted to €3.2 billion (€2.8 billion like-for-like), with the Pensions business in Brazil up by a strong €352 million (up 14.7% like-for-like).
Personal Risk/Protection premiums were stable at €0.7 billion (down €1 million or 0.1% at constant exchange rates), supported by Prestamista (up €15 million) and the personal risk business (up €11 million) which offset almost the entire run‑off impact of the property & casualty business (down €20 million) and the Hipotecario business (down €8 million).
2. First-half 2022 results indicators
Net insurance revenue for the period amounted to €1,759 million, up 19.6% as reported (up 8.2% like-for-like).
In France, net insurance revenue rose by €60 million to €995 million (up 6.4%). This performance was attributable to improved loss ratios in term creditor insurance (positive impact of €26 million or 8%) and the higher contribution of the Savings/Pensions business (positive impact of €35 million or 5.7%), lifted by improved yields on technical reserves, combined with favourable unit-linked mix and volume effects.
In Europe excluding France, net insurance revenue was €287 million, an increase of 89.1% as reported (up 24.0% like-for-like). The increase was mainly driven by CUV (up €34 million), reflecting a favourable change in the Savings product mix (€12 million positive impact), a favourable volume effect in Personal Risk/Protection (€6 million positive impact) and the changed frequency of technical reserve loading deductions (€17 million positive impact).
In Latin America, net insurance revenue amounted to €477 million, up 24.1% as reported (up 6.3% like-for-like). The increased margin reflected a €17 million favourable volume effect in Pensions and the €19 million positive impact of the Covid-related low basis of comparison in 2021.
Revenue from own-funds portfolios came to €610 million (up 20.9% as reported and up 21.8% like-for-like). The €109 million (22.9%) increase in France stemmed from the execution during the period of the entire 2022 profit-taking programme.
Total revenue rose 19.9% as reported (up 11.7% like-for-like) to €2,368 million.
Administrative costs came in at €494 million, up 15.5% as reported (up 5.2% like-for-like) in a period shaped by rising inflation in all geographies and a €7.3 million increase in revenue-based taxes in France.
The cost/income ratio stood at a steady 28.1% (down 1 point as reported and down 0.8 points like-for-like), with a 0.6-point improvement in France to 32.6% and a 6.7-point like-for-like improvement in Europe excluding France to 34.9%. In Latin America, the cost/income ratio remained low at 15.9% (16.1% like-for-like).
EBIT amounted to €1,874 million, up 21.2% as reported (up 13.5% like-for-like).
Attributable net profit was €748 million, up 8.4% as reported (up 4.6% like-for-like), resulting from the increase in total revenues offset by an allocation to PPEG of €292m to cope with the uncertain macro-economic environment.
IFRS book value was €15.6 billion.
The consolidated SCR coverage ratio was 249% at 30 June 2022, up 32 points on end‑2021 (217%). The 32-point3 improvement breaks down as follows:
+29 points: favourable market trends over the period, including rising interest rates;
+3 points: inclusion in own funds of profit for the period, net of dividends;
+3 points: Tier 3 debt issue (€500 million) at the end of January 2022;
-2 points: regulatory decrease in the Ultimate Forward Rate (UFR);
-1 point: other effects.
3 The breakdown of the change in the coverage ratio over the period is provided for information only and is based on estimates
IFRS income statement
| H1 2022 | H1 2021 | % change (reported) |
% change (like-for-like) |
|
|---|---|---|---|---|
| Premium income | 19,932 | 16,283 | +22.4 | +2.2 |
| Average net technical reserves | 360,2 | 327,9 | 9,9 | - |
| Total revenue | 2,368 | 1,975 | +19.9 | +11.7 |
| Net insurance revenue (NIR), of which: | 1,759 | 1,471 | +19.6 | +8.2 |
| France | 995 | 935 | +6.4 | +6.4 |
| Latin America | 477 | 384 | +24.1 | +6.3 |
| Europe excl. France | 287 | 152 | +89.1 | +24.0 |
| Revenue from own-funds portfolios | 610 | 504 | +20.9 | +21.8 |
| Administrative costs, of which: | 494 | 428 | +15.5 | +5.2 |
| France | 319 | 305 | +4.5 | +4.5 |
| Latin America | 76 | 60 | +26.7 | +10.4 |
| Europe excl. France | 100 | 63 | +57.8 | +4.0 |
| EBIT | 1,874 | 1,547 | +21.2 | +13.5 |
| Finance costs | (95) | (120) | -20.7 | -21.2 |
| Non-controlling and net equity accounted interests |
(309) | (228) | +35.2 | +12.5 |
| Attributable recurring profit | 1,470 | 1,198 | +22.7 | +17.2 |
| Income tax expense | (389) | (336) | +15.9 | +10.9 |
| Profit (loss) from discontinued operations, after tax |
(61) | - | - | - |
| Mark-to-market effects and intangible amortisation |
20 | (17) | +216.9 | +352.2 |
| Non-recurring items | (292) | (156) | +87.3 | +87.3 |
| Attributable net profit | 748 | 690 | +8.4 | +4.6 |
The first-half 2022 profit indicators of CNP Assurances were reviewed by the Board of Directors at its meeting on 27 July 2022 and are subject to completion of audit procedures by CNP Assurances' Statutory Auditors. This press release includes a certain number of alternative performance measures (APMs). These APMs and their calculation method are presented in the Investor section of the CNP Assurances website at https://www.cnp.fr/en/the-cnpassurances-group/investors/results/results-presentation/2022-results
APPENDICES
First-half 2022 attributable net profit by operating segment
| Savings/Pensions | Personal Risk/Protection Insurance |
Own-funds portfolios |
|
|---|---|---|---|
| Premium Income | 16,620 | 3,312 | - |
| Total revenue | 934 | 824 | 610 |
| Administrative costs | 258 | 189 | 47 |
| EBIT | 676 | 635 | 563 |
| Attributable recurring profit | 564 | 429 | 477 |
| Attributable net profit | 474 | 300 | (26) |
Premium income by country
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
% change (like-for-like) |
|
|---|---|---|---|---|---|
| France | 10,399 | 10,673 | -2.6 | -2.6 | |
| Brazil | 3,887 | 2,985 | +30.2 | +11.5 | |
| Italy | 4,822 | 1,892 | +154.9 | +10.4 | |
| Germany | 240 | 230 | +4.4 | +4.4 | |
| Cyprus | 96 | 90 | +6.7 | +6.7 | |
| Spain | 64 | 71 | -9.1 | -9.1 | |
| Poland | 37 | 40 | -8.3 | -8.3 | |
| Austria | 13 | 11 | +16.4 | +16.4 | |
| Norway | 12 | 12 | -1.3 | -1.3 | |
| Denmark | 7 | 10 | -32.1 | ||
| Argentina | 11 | 8 +29.4 |
+44.1 | ||
| Portugal | 1 | 1 | -13.3 | -13.3 | |
| Other Europe | 332 | 247 | +34.2 | +34.2 | |
| Other International | 12 | 13 | -2.5 | -2.5 | |
| Total International | 9,533 | 5,610 | +69.9 | +11.3 |
| Total 19,932 16,283 +22.4 +2.2 |
|||||
|---|---|---|---|---|---|
| -------------------------------------------- | -- | -- | -- | -- | -- |
Premium income by segment
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
% change (like-for-like) |
|---|---|---|---|---|
| Savings | 12,923 | 10,225 | +26.4 | +0.3 |
| Pensions | 3,697 | 2,940 | +25.7 | +10.0 |
| Personal Risk Insurance | 825 | 747 | +10.5 | +6.3 |
| Term Creditor Insurance | 2,172 | 2,042 | +6.4 | +1.0 |
| Health Insurance | 165 | 178 | -7.2 | -7.6 |
| Property & Casualty | 150 | 151 | -0.7 | -12.1 |
| Total | 19,932 | 16,283 | +22.4 | +2.2 |
Premium income by country and by segment
| (in € millions) | Savings | Pensions | Personal Risk Insurance |
Term Creditor Insurance |
Health Insurance |
Property & Casualty |
Total |
|---|---|---|---|---|---|---|---|
| France | 7,876 | 484 | 535 | 1,361 | 142 | 0 | 10,399 |
| Brazil | 3 | 3,208 | 220 | 330 | 6 | 120 | 3,887 |
| Italy | 4,650 | 4 | 38 | 130 | 0 | 0 | 4,822 |
| Germany | 0 | 0 | 12 | 228 | 0 | 0 | 240 |
| Cyprus | 41 | 0 | 8 | 0 | 17 | 30 | 96 |
| Spain | 15 | 1 | 1 | 47 | 0 | 0 | 64 |
| Poland | 0 | 0 | 5 | 32 | 0 | 0 | 37 |
| Austria | 0 | 0 | 1 | 12 | 0 | 0 | 13 |
| Norway | 0 | 0 | 0 | 12 | 0 | 0 | 12 |
| Denmark | 0 | 0 | 0 | 7 | 0 | 0 | 7 |
| Argentina | 4 | 0 | 6 | 1 | 0 | 0 | 11 |
| Portugal | 0 | 0 | 0 | 1 | 0 | 0 | 1 |
| Luxembourg | 332 | 0 | 0 | 0 | 0 | 0 | 332 |
| Other International | 1 | 0 | 0 | 11 | 0 | 0 | 12 |
| Total International | 5,046 | 3,213 | 290 | 811 | 23 | 150 | 9,533 |
| Total | 12,923 | 3,697 | 825 | 2,172 | 165 | 150 | 19,932 |
Premium income by region and by partner/subsidiary
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| La Banque Postale | 4,000 | 3,978 | +0.6 |
| BPCE | 3,087 | 3,270 | -5.6 |
| CNP Patrimoine | 1,694 | 1,737 | -2.5 |
| Social protection partners (France) | 976 | 1,014 | -3.8 |
| Financial institutions (France) | 512 | 523 | -2.0 |
| Amétis | 103 | 133 | -22.7 |
| Other France | 27 | 18 | +5O.O |
| Total France | 10,399 | 10,673 | -2.6 |
| Caixa Seguradora (Brazil) | 3,887 | 2,985 | +30.2 |
| CVA | 2,734 | 0 | 0.0 |
| CNP UniCredit Vita (Italy) | 2,010 | 1,763 | +14.0 |
| CNP Luxembourg (Luxembourg) | 332 | 247 | +34.2 |
| CNP Santander Insurance (Ireland) | 375 | 373 | +0.5 |
| CNP Partners (Spain) | 74 | 119 | -38.0 |
| CNP Cyprus Insurance Holdings (Cyprus) | 98 | 92 | +6.5 |
| Branches | 14 | 23 | -38.9 |
| CNP Assurances Compañía de Seguros (Argentina) |
11 | 8 | +37.5 |
| Other International | 0 | 0 | -76.5 |
| Total International | 9,533 | 5,610 | +69.9 |
| Total | 19,932 | 16,283 | +22.4 |
Unit-linked sales by region and by partner/subsidiary
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| La Banque Postale | 1,158 | 1,034 | +12.0 |
| BPCE | 483 | 519 | -7.0 |
| CNP Patrimoine | 1,005 | 850 | +18.1 |
| Amétis | 33 | 44 | -25.0 |
| Other France | 33 | 18 | +83.3 |
| Total Unit-linked France | 2,712 | 2,467 | +9.9 |
| Caixa Seguradora (Brazil) | 3,207 | 2,394 | +34.0 |
| CNP UniCredit Vita (Italy) | 1,435 | 1,376 | +4.3 |
| CVA | 590 | 0 | +100.0 |
| CNP Partners (Spain) | 48 | 77 | -37.7 |
| CNP Luxembourg (Luxembourg) | 186 | 121 | +54.0 |
| CNP Cyprus Insurance Holdings (Cyprus) | 41 | 37 | +11.1 |
| Total Unit-linked International | 5,507 | 4,005 | +37.5 |
| Total Unit-linked | 8,219 | 6,472 | +27.0 |
Unit-linked sales as a proportion of Savings/Pensions premiums by region
| (in € millions) | Savings/Pensions | o/w Unit-linked | o/w Traditional | % Unit-linked |
|---|---|---|---|---|
| France | 8,360 | 2,712 | 5,648 | 32.4 |
| Latin America | 3,215 | 3,207 | 8 | 99.8 |
| Europe excl. France | 5,044 | 2,300 | 2,745 | 45.6 |
| Total | 16,620 | 8,219 | 8,401 | 49.5 |
Premium income from partnership with La Banque Postale
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| Savings | 3,701 | 3,684 | +0.5 |
| Pensions | 173 | 179 | -3.4 |
| Personal Risk Insurance | 6 | 7 | -15.2 |
| Term Creditor Insurance | 120 | 108 | +11.2 |
| Total | 4,000 | 3,978 | +0.6 |
Premium income from partnership with BPCE
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| Savings | 2,375 | 2,564 | -7.3 |
| Pensions | 68 | 80 | -14.3 |
| Personal Risk Insurance | 37 | 45 | -18.2 |
| Term Creditor Insurance | 607 | 582 | +4.3 |
| Total | 3,087 | 3,270 | -5.6 |
Brazil: premium income by segment in BRL
| (in BRL millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| Savings | 15 | 59 | -74.2 |
| Pensions | 17,826 | 15,541 | +14.7 |
| Personal Risk Insurance | 1,224 | 1,151 | +6.3 |
| Term Creditor Insurance | 1,833 | 1,795 | +2.1 |
| Health Insurance | 31 | 30 | +1.2 |
| Property & Casualty | 667 | 795 | -16.1 |
| Total | 21,596 | 19,373 | +11.5 |
CNP UniCredit Vita premium income by segment
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| Savings | 1,928 | 1,709 | +12.8 |
| Pensions | 4 | 5 | -7.2 |
| Personal Risk Insurance | 36 | 17 | +109.7 |
| Term Creditor Insurance | 41 | 32 | +29.6 |
| Total | 2,010 | 1,763 | +14.0 |
CVA premium income
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| Savings | 2,671 | - | - |
| Pensions | - | - | - |
| Personal Risk Insurance | - | - | - |
| Term Creditor Insurance | 63 | - | - |
| Total | 2,734 | - | - |
| CNP Santander Insurance premium income by country | |
|---|---|
| (in € millions) | H1 2022 | H1 2021 | % change (reported) |
|---|---|---|---|
| Germany | 239.9 | 229.8 | +4.4 |
| Poland | 37.0 | 40.4 | -8.3 |
| Spain | 35.3 | 39.2 | -9.9 |
| Italy | 20.6 | 19.6 | +5.0 |
| Austria | 12.6 | 10.8 | +16.4 |
| Norway | 11.6 | 11.7 | -1.3 |
| Denmark | 6.7 | 9.9 | -32.1 |
| Sweden | 6.1 | 6.5 | -6.2 |
| Finland | 3.0 | 2.9 | +3.5 |
| Belgium | 1.5 | 1.5 | n.m. |
| Portugal | (0.1) | 0.0 | 0.0 |
| Netherlands | 0.2 | 0.2 | n.m. |
| Total | 375 | 373 | +0.5 |
Investor Calendar
- 2022 premium income and profit: February 16th, 2023
This press release, along with all of CNP Assurances' regulated information published in accordance with Article L.451-1-2 of the French Monetary and Financial Code and Articles 222-1 et seq. of the Autorité des Marchés Financiers' General Regulations, is available on the Group's investor information website at www.cnp.fr/en/investor-analyst.
About CNP Assurances
A benchmark player in the French personal insurance market, CNP Assurances is active in 19 countries in Europe, notably in Italy, and in Latin America, with a significant presence in Brazil, its second largest market. Acting as an insurer, co-insurer and reinsurer, it has more than 36 million personal risk/protection insureds worldwide and more than 12 million savings/pensions policyholders. In line with its business model, the Group's solutions are distributed by multiple partners. The solutions are aligned with each partner's physical or digital distribution model, while also being tailored to local clients' needs in each country. CNP Assurances is a subsidiary of La Banque Postale.
The Group reported net profit of €1,552 million in 2021.
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|---|---|---|---|
| Florence de Montmarin | +33 (0)1 42 18 86 51 | Céline Byl | +33 (0)1 42 18 77 95 |
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Disclaimer:
Some of the statements contained in this presentation may be forward-looking statements referring to projections, future events, trends or objectives that, by their very nature, involve inherent risks and uncertainties that may cause actual results to differ materially from those currently anticipated in such statements. These risks and uncertainties may concern factors such as changes in general economic conditions and financial market performance, legal or regulatory decisions or changes, changes in the frequency and amount of insured claims, changes in interest rates and foreign exchange rates, changes in the policies of central banks or governments, legal proceedings, the effects of acquisitions and divestments, 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 – AMF. 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.
Certain prior-period information may be reclassified on a basis consistent with current year data. The sum of the amounts presented in this document may not correspond exactly to the total indicated in the tables and the text. Percentages and percentage changes are calculated based on unrounded figures and there may be certain minor differences between the amounts and percentages due to rounding. CNP Assurances' final solvency indicators are submitted post‑publication to the insurance supervisor and may differ from the explicit and implicit estimates contained in this document.
This document may contain alternative performance measures (such as EBIT) that are considered useful by CNP Assurances but are not recognised in the IFRSs adopted for use in the European Union. These measures should be treated as additional information and not as substitutes for the balance sheet and income statement prepared in accordance with IFRS. They may not be comparable with those published by other companies, as their definition may vary from one company to another.