Earnings Release • Feb 17, 2022
Earnings Release
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Press Release
Paris – 17 February 2022
Premium income of €31.7bn (up 19.4% LfL vs 2020, up 4.3% LfL vs 2019) Attributable net profit of €1,552m (up 15% vs 2020, up 9.9% vs 2019) SCR coverage ratio of 217% (up 9 pts) Recommended dividend of €1.0 per share
"In 2021, our Group caught up with its 2019 business and earnings performances. Considerable progress was made in transforming our technical reserves and our new growth drivers enjoyed strong momentum in Europe and Brazil.
The Group's overall performance and robust solvency ratio provide a solid foundation. The growth opportunities arising from our membership of the major state-owned financial group and the significant acquisition of Aviva's life business in Italy in 2021 reaffirm CNP Assurance's multi-partner international insurance model."
1 Changes in consolidation scope in 2021: Infra Invest, CNP Vita Assicura and Assicurazione; 2021 average exchange rates: Brazil: €1 = BRL 6.38; Argentina: €1 = ARS 112.51; 2020 average exchange rates: Brazil: €1 = BRL 5.89; Argentina: €1 = ARS 81.04
2 Since March 2021, EBIT includes fair value adjustments to available-for-sale financial assets (€241 million positive impact on EBIT for the twelve months of 2020) and excludes amortisation of intangible assets (€23 million positive impact on EBIT for the twelve months of 2020). Excluding these changes, 2020 reported EBIT amounted to €2,614 million
3 To be recommended at the Annual General Meeting to be held on 22 April 2022
CNP Assurances I Registered office: 4, place Raoul–Dautry – 75716 Paris Cedex 15 I Tel.: +33 (0)1 42 18 88 88 I www.cnp.fr Société anonyme (joint-stock company) with fully paid-up share capital of €686,618,477 Registered in the Paris Trade and Companies Register under no. 341 737 062 Company governed by the French Insurance Code (Code des assurances)
Consolidated premium income totalled €31.7 billion, reflecting strong sales momentum across all geographies with premiums up 22.8% in France, 4.1% in Europe excluding France and 23.6% (at constant exchange rates) in Latin America.
In France, premium income amounted to €20 billion, up 22.8% vs 2020 and down 3.5% vs 2019.
Savings/Pensions premium income of €15.9 billion was up 30% on 2020 which represented a low basis of comparison due to the Covid-19 lockdown. Excluding this impact, premium income grew by €1.3 billion (9.0%), mainly led by the premium savings business.
In line with the Savings/Pensions business's strategy to transform technical reserves, the contribution of unitlinked sales to total new money grew by a further 2.6 points to 29.3%. This performance was mainly attributable to the sharp rise in unit-linked contributions to total premium income generated by LBP (29.3%, up 9.5 points) and BPCE (30.1% excluding Natixis Assurances). At CNP Patrimoine, 49.1% of total premium income came from unit-linked sales.
The annual target of €6.3 billion in PACTE transfers was met in 2021.
Personal risk/Protection premium income of €4.1 billion was up by a slight 1.2% (€47 million), reflecting growth in the term creditor insurance business (BPCE up €80 million and LBP up €17 million) and the exceptional effects of the Covid-19 crisis in 2020 (with personal risk premiums up €13 million year-on-year). These two effects more than offset the €67 million decline in premiums from term creditor insurance run-off portfolios.
The APE margin widened by 6.3 points in 2021 to 10.4%.
In Europe excluding France, premium income totalled €5.3 billion, up 4.1% vs 2020 and up 3.5% vs 2019.
Savings/Pensions premium income was up 4.2% at €4.3 billion. The €170 million increase was led by growth in the Luxembourg premium savings business (up €181 million) and a higher contribution from CNP Partners (up €90 million) related to unit-linked sales. These two effects more than offset lower premium income at CNP UniCredit Vita (down €111 million, or 3.4%) after an exceptional year in 2020 despite the pandemic. Unit-linked sales accounted for 74.2% of total premium income in the Europe excluding France region. The 2.5-point decline vs 2020 was due to the high basis of comparison at CNP Luxembourg where the unit-linked contribution to total premiums fell by 18.3 points vs 2020 to 55.1%. Conversely, unit-linked sales at CNP UniCredit Vita rose by 1.1 points to a very high 79.1% of total premium income
Personal Risk/Protection premium income rose 3.9% to €1.0 billion. Growth was led by CNP UniCredit Vita (up €36 million), reflecting the success of the new personal risk range and the post-Covid recovery in term creditor insurance business, combined with the launch of a revamped product range. These effects more than offset the €20 million contraction in CNP Santander's premium income.
The APE margin rose by 4.9 points to 22.1%.
In Latin America, premium income totalled €6.4 billion, up 14.2% as reported (up 23.6% like-for-like) vs 2020 and down 5.4% as reported (up 36.8% like-for-like) vs 2019.
Savings/Pensions premium income amounted to €5.2 billion, up 18.7% as reported (up 28.5% like-for-like) The increase was led by the Pensions business (up €1.3 billion, an increase of 29% at constant exchange rates), which maintained the strong momentum enjoyed since the second half of 2020.
Personal Risk/Protection premiums totalled €1.2 billion, down 2.2% as reported but up 6.2% at constant exchange rates. The increase in local currency reflected the cumulative contribution of several generations of contracts following very high sales of personal risk and consumer term creditor insurance contracts in the second half of 2020.
The APE margin stood at 32.1% in 2021, down 3.4 points vs 2020.
The Value of New Business (VNB) written by the Group4 was €437 million (€449 million, up 58.2% at constant exchange rates) in 2021. The contributions of the main partners and subsidiaries were as follows: 59.9% from the partnership with BPCE,
4 Do not include figures relating to the acquisition of ex-AVIVA entities. They are accounted for by the equity method..
5 The Value of New Business is calculated on a group share basis.
36.4% from Caixa Seguradora, 9.4% from CNP Santander Insurance, 4.4% from CNP UniCredit Vita, -1.8% from La Banque Postale, and -8.2% from other networks.
Average consolidated net technical reserves totalled €341.7 billion in 2021, compared with €326.0 billion the previous year, an increase of 4.8%.
Net insurance revenue (NIR) rose by €174 million to €3,127 million (up 5.9% as reported and up 8.1% like-for-like).
In France, net insurance revenue came to €2,009 million, up 11.0%. Savings/Pensions net insurance revenue grew 6.9%, while Personal Risk/Protection net insurance revenue was up 19.3%.
In Europe excluding France, net insurance revenue was up 11.7% at €333 million.
In Latin America, net insurance revenue of €784 million was down 7.1% as reported but up 0.7% like-for-like.
Revenue from own-funds portfolios rose 9.2% as reported (up 9.9% at constant exchange rates) to €840 million, lifted by a combination of higher income from equity portfolios and higher realised capital gains.
Total revenue rose 6.6% as reported (up 8.5% at constant exchange rates) to €3,967 million.
Administrative costs amounted to €872 million, up 3.2% as reported (up 4.7% at constant exchange rates).
The cost/income ratio improved by 0.9 points like-for-like to 27.9%.
EBIT amounted to €3,095 million, up 7.5% as reported. On a like-for-like basis, EBIT was up 9.6% vs 2020 but down 2.4% vs 2019 due to the unfavourable basis of comparison for the own-funds portfolio in France following the derisking transactions. Attributable EBIT (net of non-controlling interests) for 2021 breaks down as follows: 27.0% from the partnership with BPCE, 19.1% from the partnership with La Banque Postale, 13.4% from Caixa Seguradora, 2.1% from CNP UniCredit Vita, 1.9% from CNP Santander Insurance, 25.7% from the own-funds portfolio and 10.7% from other businesses.
Attributable net profit was €1,552 million, representing more than both the €1,350 million reported in 2020 and the €1,412 million reported in 2019. Profit increased compared to 2019 despite the fact that EBIT was €383 million lower due to an unfavourable currency effect (€248 million negative impact) and an unfavourable basis of comparison in France following extensive profit-taking in 2019 (€336 million negative impact), offset by higher net insurance revenue across all geographies (€229 million positive impact at constant exchange rates). Attributable net profit was also boosted by lower transfers to the policyholder surplus reserve (€370 million positive impact) and a reduced tax burden (€195 million positive impact).
A dividend of €1.0 per share for 2021 will be recommended at the next Annual General Meeting.
Net operating free cash flow generated over the year totalled €1,811 million or €2.6 per share (up €0.7 per share).
IFRS book value was €15.0 billion at 31 December 2021, representing €21.9 per share versus €21.2 per share at 31 December 2020.
MCEV© amounted to €30.0 per share (up €7.8 per share vs 2020) with VIF of €7.8 per share.
The consolidated SCR coverage ratio was 217% at 31 December 2021, up 9 points vs 2020. The increase was due to the inclusion in net profit of the recommended dividend of €1 per share (5-pt positive impact), the favourable change in the financial markets in 2021 (recovery in interest rates, increased stock prices) (17-pt positive impact), the acquisition of the new Italian subsidiaries (ex Aviva Italy) (8-pt negative impact), the regulatory decrease in the Ultimate Forward Rate (UFR) (2-pt negative impact), and other effects (3-pt negative impact).
The 217% ratio does not include the estimated impact of the current draft revision of Solvency II, incorporating all the changes planned for 2032. It is estimated that these changes would have a 15 to 10-point negative impact based on economic conditions prevailing at the end of December 2021. The proposed creation of FRPS5 pension funds would have a 10 to 15 point positive impact and the €500 million subordinated debt issue carried out in January 2022 would have had a 3-point positive impact.
6 Fonds de Retraite Professionnelle Supplémentaire (FRPS) - pension savings fund
CNP Assurances I Registered office: 4, place Raoul–Dautry – 75716 Paris Cedex 15 I Tel.: +33 (0)1 42 18 88 88 I www.cnp.fr Société anonyme (joint-stock company) with fully paid-up share capital of €686,618,477 Registered in the Paris Trade and Companies Register under no. 341 737 062 Company governed by the French Insurance Code (Code des assurances)
| (in € millions) | 2021 | 2020 | % change (reported) |
% change (like-for-like) |
|---|---|---|---|---|
| Premium income | 31,668 | 26,956 | +17.5 | +19.4 |
| Average net technical reserves | 341.7 | 326.0 | +0.6 | - |
| Total revenue | 3,967 | 3,723 | +6.6 | +8.5 |
| Net insurance revenue (NIR), of which: |
3,127 | 2,953 | +5.9 | +8.1 |
| France | 2,009 | 1,811 | +11.0 | +11.0 |
| Latin America | 784 | 844 | -7.1 | +0.7 |
| Europe excl. France | 333 | 298 | +11.7 | +11.7 |
| Revenue from own-funds portfolios | 840 | 769 | +9.2 | +9.8 |
| Administrative costs, of which: | 872 | 845 | +3.2 | +4.7 |
| France | 616 | 578 | +6.5 | +6.5 |
| Latin America | 127 | 138 | -8.2 | +1.0 |
| Europe excl. France | 130 | 128 | +0.9 | +0.9 |
| EBIT | 3,095 | 2,878 | +7.5 | +9.6 |
| Finance costs | (227) | (252) | -9.9 | -9.9 |
| Non-controlling and net equity accounted interests |
(436) | (431) | +1.1 | +17.0 |
| Attributable recurring profit | 2,432 | 2,195 | +10.8 | +10.3 |
| Income tax expense | (622) | (624) | -0.2 | +1.5 |
| Mark-to-market effects and intangible amortisation |
(33) | 23 | -239.4 | -220.5 |
| Non-recurring items | (225) | (245) | -8.0 | -7.9 |
| Attributable net profit | 1,552 | 1,350 | +15.0 | +13.7 |
The 2021 financial statements of CNP Assurances were reviewed by the Board of Directors at its meeting on 16 February 2022 and are subject to completion of the audit 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/Analyst section of the CNP Assurances website at www.cnp.fr/en/Investor-Analyst. https://www.cnp.fr/en/the-cnp-assurances-group/investors/results/results-presentation/2020-results
| (in € millions) | 2021 | 2020 | % change (reported) |
% change (like-for-like) |
|---|---|---|---|---|
| France | 19,989 | 16,278 | +22.8 | +22.8 |
| Brazil | 6,369 | 5,577 | +14.2 | +23.6 |
| Italy | 3,506 | 3,469 | +1.1 | +1.1 |
| Germany | 461 | 466 | -0.9 | -0.9 |
| Cyprus | 186 | 175 | +6.2 | +6.2 |
| Spain | 130 | 136 | -3.9 | -3.9 |
| Luxembourg | 834 | 653 | +27.8 | +27.8 |
| Poland | 81 | 90 | -10.1 | -10.1 |
| Austria | 23 | 24 | -4.2 | -4.2 |
| Norway | 24 | 22 | +6.7 | +6.7 |
| Denmark | 17 | 21 | -19.6 | -19.6 |
| Argentina | 18 | 18 | +1.4 | +40.8 |
| Portugal | 3 | 4 | -14.3 | -14.3 |
| Other International | 26 | 24 | +10.6 | +10.6 |
| Total International | 11,679 | 10,678 | +9.4 | +14.3 |
| Total | 31,668 | 26,956 | +17.5 | +19.4 |
| (in € millions) | 2021 | 2020 | % change (reported) |
% change (like-for-like) |
|---|---|---|---|---|
| Savings | 18,953 | 15,301 | +23.9 | +23.9 |
| Pensions | 6,380 | 5,379 | +18.6 | +26.5 |
| Personal Risk Insurance | 1,520 | 1,490 | +2.0 | +4.3 |
| Term Creditor Insurance | 4,131 | 4,057 | +1.8 | +3.0 |
| Health Insurance | 386 | 408 | -5.4 | -5.2 |
| Property & Casualty | 298 | 320 | -6.9 | -0.7 |
| Total | 31,668 | 26,956 | +17.5 | +19.4 |
| (in € millions) | Savings | Pensions | Personal Risk Insurance |
Term Creditor Insurance |
Health Insuranc e |
Property & Casualty |
Total |
|---|---|---|---|---|---|---|---|
| France | 14,691 | 1,193 | 1,047 | 2,716 | 342 | 0 | 19,989 |
| Brazil | 14 | 5,173 | 373 | 560 | 10 | 239 | 6,369 |
| Italy | 3,294 | 12 | 43 | 157 | 0 | 0 | 3,506 |
| Germany | 0 | 0 | 18 | 443 | 0 | 0 | 461 |
| Cyprus | 79 | 0 | 14 | 0 | 34 | 58 | 186 |
| Spain | 30 | 1 | 4 | 95 | 0 | 0 | 130 |
| Luxembourg | 834 | 0 | 0 | 0 | 0 | 0 | 834 |
| Poland | 0 | 0 | 10 | 70 | 0 | 0 | 81 |
| Austria | 0 | 0 | 1 | 22 | 0 | 0 | 23 |
| Norway | 0 | 0 | 0 | 24 | 0 | 0 | 24 |
| Denmark | 0 | 0 | 0 | 17 | 0 | 0 | 17 |
| Argentina | 7 | 0 | 10 | 1 | 0 | 0 | 18 |
| Portugal | 0 | 0 | 0 | 3 | 0 | 0 | 3 |
| Other International | 3 | 0 | 0 | 23 | 0 | 0 | 26 |
| Total International | 4,262 | 5,187 | 473 | 1,415 | 44 | 298 | 11,679 |
| Total | 18,953 | 6,380 | 1,520 | 4,131 | 386 | 298 | 31,668 |
| (in € millions) | 2021 | 2020 | % change |
|---|---|---|---|
| La Banque Postale | 7,895 | 6,320 | +24.9 |
| BPCE | 5,883 | 4,709 | +24.9 |
| CNP Patrimoine | 2,715 | 1,871 | +45.1 |
| Social protection partners (France) | 2,137 | 2,022 | +5.7 |
| Financial institutions (France) | 1,059 | 1131 | -6.3 |
| Amétis | 264 | 185 | +42.5 |
| Other France | 35 | 39 | -9.1 |
| Total France | 19,989 | 16,278 | +22.8 |
| Caixa Seguradora (Brazil) | 6,369 | 5,577 | +14.2 |
| CNP UniCredit Vita (Italy) | 3,219 | 3,294 | -2.3 |
| CNP Luxembourg (Luxembourg) | 834 | 653 | +27.8 |
| CNP Santander Insurance (Ireland) | 744 | 764 | -2.6 |
| CNP Partners (Spain) | 240 | 149 | +60.4 |
| CNP Cyprus Insurance Holdings (Cyprus) | 190 | 179 | +6.3 |
| CNP Assurances Compañía de Seguros (Argentina) | 18 | 18 | +1.4 |
| Other International | 64 | 44 | +45.9 |
| Total International | 11,679 | 10,678 | +9.4 |
| Total | 31,668 | 26,956 | +17.5 |
| (in € millions) | 2021 | 2020 | % change |
|---|---|---|---|
| La Banque Postale | 2,243 | 1,207 | +85.9 |
| BPCE | 948 | 669 | +41.8 |
| CNP Patrimoine | 1,334 | 1,285 | +3.7 |
| Amétis | 91 | 48 | +88.0 |
| Other France | 41 | 37 | +9.2 |
| Total Unit-linked France | 4,656 | 3,247 | +43.4 |
| Caixa Seguradora (Brazil) | 5,171 | 4,337 | +19.2 |
| CNP UniCredit Vita (Italy) | 2,462 | 2,515 | -2.1 |
| CNP Partners (Spain) | 155 | 67 | +132.3 |
| CNP Luxembourg (Luxembourg) | 460 | 479 | -4.0 |
| CNP Cyprus Insurance Holdings (Cyprus) | 79 | 70 | +13.3 |
| Total Unit-linked International | 8,328 | 7,467 | +11.5 |
| Total Unit-linked | 12,984 | 10,714 | +21.2 |
| 2021 | ||||
|---|---|---|---|---|
| (in € millions) | Savings/Pensions | o/w Unit linked |
o/w Traditional |
% Unit-linked |
| France | 15,884 | 4,656 | 11,228 | 29.3 |
| Latin America | 5,194 | 5,171 | 23 | 99.6 |
| Europe excl. France | 4,254 | 3,157 | 1,098 | 74.2 |
| Total | 25,333 | 12,984 | 12,348 | 51.3 |
| (in € millions) | 2021 | 2020 | % change |
|---|---|---|---|
| Savings | 7,269 | 5,746 | +26.5 |
| Pensions | 402 | 362 | +11.0 |
| Personal Risk Insurance | 12 | 16 | -24.1 |
| Term Creditor Insurance | 212 | 195 | +8.6 |
| Total | 7,895 | 6,320 | +24.9 |
| (in € millions) | 2021 | 2020 | % change |
|---|---|---|---|
| Savings | 4,458 | 3,403 | +31.0 |
| Pensions | 151 | 101 | +49.5 |
| Personal Risk Insurance | 86 | 97 | -11.8 |
| Term Creditor Insurance | 1,189 | 1,109 | +7.2 |
| Total | 5,883 | 4,709 | +24.9 |
| (in BRL millions) | 2021 | 2020 | % change |
|---|---|---|---|
| Savings | 90 | 186 | -51.4 |
| Pensions | 32,993 | 25,572 | +29.0 |
| Personal Risk Insurance | 2,379 | 2,227 | +6.8 |
| Term Creditor Insurance | 3,572 | 3,251 | +9.9 |
| Health Insurance | 61 | 73 | -16.6 |
| Property & Casualty | 1,526 | 1,564 | -2.5 |
| Total | 40,622 | 32,874 | +23.6 |
| (in € millions) | 2021 | 2020 | % change |
|---|---|---|---|
| Savings | 3,102 | 3,213 | -3.4 |
| Pensions | 12 | 13 | -3.9 |
| Personal Risk Insurance | 40 | 27 | +49.5 |
| Term Creditor Insurance | 65 | 42 | +54.6 |
| Total | 3,219 | 3,294 | -2.3 |
| (in € millions) | 2021 | 2020 | % change |
|---|---|---|---|
| Germany | 461.4 | 465.8 | -0.9 |
| Poland | 80.6 | 89.6 | -10.1 |
| Spain | 76.8 | 80.7 | -4.8 |
| Italy | 39.8 | 40.7 | -2.2 |
| Austria | 22.7 | 23.7 | -4.2 |
| Norway | 23.5 | 22.0 | +6.7 |
| Denmark | 16.8 | 20.8 | -19.6 |
| Sweden | 13.1 | 12.0 | +9.0 |
| Finland | 5.8 | 4.9 | +18.0 |
| Belgium | 3.1 | 3.0 | n.m. |
| Netherlands | 0.4 | 0.3 | n.m. |
| Total | 744 | 764 | -2.6 |
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.
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' lifelong protection and support needs in each country.
CNP Assurances has been listed on the Paris Stock Exchange since October 1998 and is a subsidiary of La Banque Postale. The Group reported net profit of €1,552 million in 2021.
| Press contacts | Investors and analysts | ||
|---|---|---|---|
| Florence de Montmarin Tamara Bernard Alexis Chaufrein |
+33 (0)1 42 18 86 51 +33 (0)1 42 18 86 19 +33 (0)1 42 18 85 73 |
Céline Byl Pascale Fargnier |
+33 (0)1 42 18 77 95 +33 (0)1 42 18 93 27 |
| [email protected] | [email protected] | ||
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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.
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