CNP Assurances

Earnings Release • Aug 1, 2023

Press Release

Issy-les-Moulineaux, 1 August 2023

CNP Assurances Group first-half 2023 results indicators

Sharp rise in earnings and increased economic value under IFRS 17 Strong business momentum in France but reduced flow of new money in international markets

Attributable net profit of €892m (up €456m vs first-half 2022) Consolidated economic value of €32.5bn (up 4.9% vs 31 December 2022) Gross new money of €19.4bn (down 6% vs first-half 2022)

The scope of consolidation of the CNP Assurances Group includes CNP Assurances SA¹ and the four La Banque Postale Assurances entities.

Key financial and non-financial metrics

• Gross new money of €19.4bn for the CNP Assurances Group (down 6% vs first-half 2022)
• Attributable net profit of €892m (up €456m vs first-half 2022)
• Consolidated SCR coverage ratio of 259% (up 29pts vs end-2022)
• Consolidated equity of €21.4bn (up 2.5% or €0.6bn vs end-2022)
• Contractual service margin (CSM) of €16.5bn (up €1.6bn vs end-2022)
• Consolidated economic value (equity + CSM net of non-controlling interests and net of tax) of €32.5bn (up €1.5bn vs end-2022)
• Green investment portfolio (CNP Assurances SA): €25.9bn (up €700m vs end-2022)
• Customer Effort Score (CNP Assurances SA) stable at 2.2/5
• Percentage of women on the Executive Committee (CNP Assurances SA): 64% (up 13 pts vs end-2022)
• Inclusive purchases as a % of total purchases (CNP Assurances SA): 29.7% (up 1.7 pts vs end-2022)
• Carbon footprint of the investment portfolio: 52 kgCO2e/€k invested (vs 55 kgCO2e/€k invested at end-2022)
• ESG ratings: among the top 10% of insurance companies, as awarded by a representative panel of three rating agencies

Stéphane Dedeyan, Chief Executive Officer of the CNP Assurances Group, said:

"The first half of 2023 saw the expansion of the CNP Assurances Group and the emergence of a full-service insurer, covering both people and property.

Our interim results attest to the Group's financial strength and performance in a complex macro-economic environment and good performance of the financial market. I would particularly like to highlight our strong business momentum in France and the increase in the Group's SCR coverage ratio, which stood at 259% at 30 June 2023.

The management of our financial and non-financial performance for the benefit of our stakeholders has been recognised and praised. It reflects our commitment to society and the environment, in line with our corporate mission."

¹ CNP Assurances SA, which is a rated entity and issues publicly traded debt, including its subsidiaries (presented on pages 30 and 31 of the 2022 Universal Registration Document)

*

Financial performance of the CNP Assurances Group

Gross new money totalled €19.4bn. The €1.2bn (-6%) decline compared with first-half 2022 reflected a decrease in new money generated in international markets, largely offset by a good performance in France.

In France, gross new money amounted to €12.7bn, up €1.4bn (+12%) compared with the year-earlier period.

Savings and Pensions gross new money was 16.3% higher, at €10.1bn. This sharp increase was attributable to the success of the unit-linked products with a guaranteed profit share at maturity marketed by LBP and BPCE and the enhanced policyholder dividend offers.

The unit-linked weighting rose to 36.8% (+3.2 points) in the first-half.

Personal Risk/Protection new money amounted to €2.2bn, with the 2% decline vs first-half 2022 due to the lower volume of loan originations in the high interest rate environment.

LBPA² (death & disability/health/property & casualty insurance) recorded new money of €0.5bn, on a par with first-half 2022.

In Europe excluding France, new money came to €3.4bn, a fall of €1.9bn (-35%) that mainly reflected the unfavourable environment in Italy for insurance products due to competition from Italian BTP inflationindexed government bonds offered to retail customers.

Savings and Pensions gross new money amounted to €2.8bn, down 40%.

The unit-linked weighting was slightly lower than in first-half 2022 (-2 pts) at 43%.

Personal Risk/Protection new money was stable compared with first-half 2022 at €0.6bn.

In Latin America, new money came in at €3.3bn, a decline of €0.7bn (-18% as reported and like-for-like) vs first-half 2022.

Savings and Pensions gross new money amounted to €2.6bn, a 22% contraction that was due to our banking partner's decision to focus on increasing the customer deposit base to support its lending policy in the high interest rate environment.

Personal Risk/Protection new money totalled €0.7bn, an increase of 21% (+4% like-for-like and -4% at constant exchange rates) that was attributable to faster sales of personal risk products and the positive impact on consumer finance originations of the Brazilian government's business support programme.

The Group's CSM totalled €16.5bn at 30 June 2023, an increase of €1.6bn (+11%) vs 31 December 2022. Growth in the CSM was led mainly by France (+10%) and Latin America (+23%). Changes in the equity markets (€0.9bn) had a favourable effect on the CSM for the Savings and Pensions business in France and Italy. Experience adjustments had no net impact due to the offsetting effect of various factors (increased surrenders in Italy offset by significant cash inflows in France in the Savings segment).

The Group's insurance service result stood at €1.6bn (+€0.5bn) in first-half 2023, including the €1.1bn expected to be released to profit from the CSM. Fair value adjustments represented a net gain of €144m, reflecting the rise in the price of equities held in the portfolios of the Personal Risk/Protection businesses in France and Latin America. The contribution of new business (€154m) primarily concerned sales of Personal

² LBPA comprises the four death/disability insurance, health insurance and service companies; information is presented on a pro forma basis.

Risk/Protection products and Property & Casualty products in Latin America and France. The CSM on these products is released to profit at a faster rate than for Savings and Pensions products.

Attributable net profit under IFRS 17 came in at €892m. The €0.5bn increase reflected the improvement in the financial markets compared to first-half 2022, when prices were depressed by sharply higher interest rates and weaker stock markets. La Banque Postale Assurances' non-life activities contributed €51m to attributable net profit for first-half 2023, including a €34m contribution from the Property and Casualty business.

Equity under IFRS 17 amounted to €21.4bn at 30 June 2023, up €0.6bn (+2.4%) vs end-2022. The increase included capital gains on disposal of equities (€0.3bn), fair value adjustments recognised in equity through other comprehensive income (+€0.1bn) and currency effects in Brazil.

Economic value (equity + CSM net of non-controlling interests and net of tax) totalled €32.5bn, representing an increase of €1.5bn over the first six months of the year. All told, effective asset and risk management (hedging, use of the policyholder surplus reserve and capitalisation reserve) helped to ensure that economic value was very resilient over 01/01/2022.

The consolidated SCR coverage ratio stood at 259% at 30 June 2023 (+29 points compared to the ratio of CNP Assurances SA and its subsidiaries at end-2022), supported primarily by favourable market effects. The increase reflected the inclusion of La Banque Postale's insurance subsidiaries (+2 pts), profit for the period, net of the expected dividend (+4 pts), favourable market effects (+21 pts), changes in subordinated debt (+3 pts), favourable changes in asset allocations due to the impact of mutual fund derisking (+3 pts), an allocation to the policyholder surplus reserve (+2 pts) and the capping of subordinated debt not available for the determination of the coverage ratio at CNP Assurances Group level (-6 pts).

Non-financial performance of CNP Assurances SA and its subsidiaries

CNP Assurances' corporate mission is based on a series of commitments to its six stakeholder groups (employees, customers, partners, shareholder and investors, society and the planet), which have been rolled down into objectives. Progress in meeting these objectives is reported each year in the form of key performance indicators (KPIs). Of the 16 indicators presented at the end of 2022, ten were updated in the first half of 2023 (the others will be updated when the annual results for 2023 are published).

• Customers: CNP Assurances SA and its subsidiaries are committed to making protection solutions available to everyone, regardless of their situation, and to being there for their insureds when they need it.
  • o Support the customer at all times by achieving an end-to-end Customer Effort Score of less than 2/5 by the end of 2025³ (France). In first-half 2023, CNP Assurances SA's Customer Effort Score was stable at 2.2/5.
  • o Insure as many people as possible, regardless of their situation, by offering at least 15 products that improve access to insurance for vulnerable populations by the end of 2025. In first-half 2023, CNP Assurances SA and its subsidiaries already offered seven products meeting the insurance needs of vulnerable populations, one more than at the end of 2022 following the launch of a new microinsurance product for people living in the largest favela in Buenos Aires, Argentina.
• Employees: CNP Assurances SA and its subsidiaries are committed to supporting employee development within an organisation that boasts a wealth of talent and diversity.
  • o Develop employee engagement in an environment that promotes individual and collective well-being, by achieving an employee engagement/workplace well-being score of at least 75/100 (France) by the end of 2025. At the end of 2022, the score was 73/100. It is intended to be updated only at the time of the annual results presentation.
  • o Promote equal opportunities by offering work-study contracts or internships to at least 200 young people who come from deprived neighbourhoods or have dropped out of school, by the end of 2025. More than half of the target had already been met by the end of first-half 2023, with 108 young people meeting these criteria, compared with 59 as of end-2022.
  • o Raise the proportion of women on the Executive Committee to 50% and the proportion of women in senior management positions to at least 45% by the end of 2025. In first-half 2023, 64% of the members of the Executive Committee (compared with 51% as of end-2022) and 42% of the senior managers (compared with 36% as of end-2022) were women.
• Partners: CNP Assurances SA and its subsidiaries are committed to developing effective and innovative solutions with their partners to drive progress in protection insurance.
  • o Strengthen synergies with partners to increase insurability and protection by obtaining a Net Promoter Score (NPS) from our distribution partners of at least +20⁴ by the end of 2025 (France). At the end of 2022, the NPS was +12. This indicator is intended to be updated only at the time of the annual results presentation.

³The Customer Effort Score measures for each customer the effort required to complete a process with CNP Assurances or its partners, ranging from 1 (very easy) to 5 (very difficult). The term customer means the end customer or the beneficiary of the insurance product. The Customer Effort Score ranges from 1/5 to 5/5.

⁴ The Net Promoter Score ranges from -100 to +100.

• Shareholder and investors: CNP Assurances SA and its subsidiaries are committed to responsibly generating sustainable financial performance.
  • o Improve our non-financial performance by being among the top 5% to 10% of insurance companies in terms of ESG ratings by the end of 2025. In first-half 2023, CNP Assurances' ESG ratings awarded by a representative panel of three rating agencies placed it among the top 10% of insurance companies⁵ (MSCI: AAA, Sustainalytics: low risk, S&P Global CSA: 71/100)
  • o Do more in support of a sustainable economy as a major player in responsible investment, by building a €1bn portfolio of investments with an environmental or social impact by the end of 2025 (France). In first-half 2023, the portfolio of impact investments totalled €0.5bn, on a par with 2022.
• Society: CNP Assurances SA and its subsidiaries are committed to helping build a more inclusive and sustainable society with a place for everyone.
  • o Promote inclusive growth through our procurement policy, by raising the proportion of purchases from inclusive enterprises⁶ to 30% by the end of 2025 (France). In first-half 2023, the proportion of inclusive purchases rose to 29.7% from 28% at the end of 2022.
  • o Assist and support sponsorship projects and actions with a societal impact to promote better living in society, by spending at least €3.5m per year by the end of 2025. As of end-2022, €2.9m had been invested in these projects and actions (through CNP Assurances Foundation, Instituto CNP Brasil and sponsorship arrangements). This indicator is intended to be updated only at the time of the annual results presentation.
  • o Mobilise at least 20% of employees to participate in actions with a societal impact during their working hours by the end of 2025. As of end-2022, 11% of CNP Assurances employees had been mobilised to participate in actions with a societal impact during their working hours. This indicator is also only updated once a year.
  • The planet: CNP Assurances SA and its subsidiaries help combat climate change and protect the natural world as committed players in the environmental transition.
    • o Finance the energy and environmental transition by building a €30bn green investment portfolio⁷ by the end of 2025. At 30 June 2023, the green investment portfolio totalled €25.9bn, compared with €25.2bn at the end of 2022.
    • o Limit our greenhouse gas emissions by reducing the carbon footprint of our investment portfolio (France) by 25% between 2019 and 2024 and the carbon footprint of our internal operations (France) by 50% between 2019 and 2030. In the first half of 2023, the investment portfolio's carbon footprint represented 52 kgCO2e/€k invested, compared with 55 kgCO2e/€k invested at end-2022, a reduction due in particular to the sale of €70m worth of shares in fossil fuel companies. The carbon footprint of internal operations will be updated at the end of 2023.
    • o Protect biodiversity by measuring the biodiversity of 100% of our forestry assets by the end of 2025, in order to maintain or improve these assets' biodiversity (France). As of end-2022, 42% of CNP Assurances' forestry assets (by surface area) were subject to a biodiversity measurement using a recognised method (Potential Biodiversity Inventories). This indicator is updated once a year.

⁵ ISS ESG and Moody's ESG no longer provide ESG ratings for CNP Assurances following the delisting of its shares. For this reason, CNP Assurances' relative positioning in the insurance sector is now calculated as an average of the ratings provided by three agencies (MSCI, Sustainalytics, S&P Global CSA) vs five agencies previously. In the interests of consistency, the historical indicator has been recalculated using these three agencies' ratings

⁶ Micro-enterprises and SMEs, the social economy, the sheltered employment sector, priority neighbourhoods and regions.

⁷ Green bonds, energy or environment-labelled buildings, forests, funds classified under Article 9 of the SFDR with an environmental sustainability objective, infrastructure assets and unlisted companies (private equity) whose main business is related to the environment. The definition of these green investments is broader than in the European taxonomy

Financial performance of CNP Assurances SA and its subsidiaries

The CSM of CNP Assurances SA and its subsidiaries stood at €18.8bn at 30 June 2023, up €1.5bn (+9%) vs 31 December 2022.

In France⁸ , the CSM rose by €1.2bn, led mainly by fair value adjustments to Savings/Pensions asset portfolios (+€0.9bn) and new business (+€0.4bn).

In Latin America, the CSM was up by €0.4bn, primarily reflecting the contribution of new business written by CVP (+€0.2bn) and a favourable currency effect (+€0.2bn).

In Europe excluding France, the CSM contracted by €57m due to surrenders in Italy (-€0.2bn), partly offset by positive fair value adjustments to Savings/Pensions asset portfolios (+€0.1bn).

The insurance service result was €1.8bn, up 36% from first-half 2022. This amount breaks down as €0.9bn for the Savings and Pensions business and €0.8bn for the Personal Risk/Protection business.

In France, the insurance service result amounted to €1.1bn, up €0.4bn reflecting, in addition to the release to profit of the expected CSM, (i) the good performance of the financial markets (+€253m) which had a direct impact on the Personal Risk/Protection segment's P&L and (ii) experience adjustments (+€127m) due to a better-than-expected loss experience in the term creditor insurance segment.

In Latin America, the insurance service result came to €476m down by a slight €10m. Negative changes included a less favourable currency effect vs 2022 (-€48m) and negative experience adjustments (-€22m) reflecting reduced liquidation surpluses compared to H1 2022. However, the estimated amount released to profit from the CSM (+€50m) was greater than expected, due to the cumulative contribution of several generations of contracts at CVP.

In Europe excluding France, the insurance service result rose €60m to €153m, driven by, beyond the release of CSM, more favourable market effects than in 2022 (+ 35 M€) and a reduced loss component effect in Italy (basis effect of +€19m).

Income from own-funds portfolios represented a positive amount of €0.3bn (+€0.4bn), vs a negative amount in first-half 2022, reflecting the impact of rising interest rates on bond funds.

Administrative costs came to €0.5bn, an increase of €38m (+8% at constant exchange rates and +9% like-forlike) in an inflationary environment across all geographies.

The normalised cost/income ratio was under control at 27%⁹ , reflecting ratios of 28% in France, 47% in Europe excluding France and 17% in Latin America.

EBIT was €1.7bn (+€0.8bn).

Attributable net profit under IFRS 17 came to (+€0,9bn), with France contributing €777m, Europe excluding France €84m and Latin America €121m.

Equity under IFRS 17 stood at €19.3bn, an increase of €0.5bn that was mainly due to realised capital gains on equities (€0.7bn).

Economic value totalled €31.3bn, up €1.5bn (+ 5%), due to increases in equity (+€0.5bn) and CSM net of noncontrolling interests and taxes (+€1bn).

The consolidated SCR coverage ratio rose by 33 points to 263% at 30 June 2023, supported primarily by the favourable market effect. The increase reflected the inclusion of profit for the period, net of dividends (+4 pts), favourable market effects (+21 pts), changes in subordinated debt (+3 pts), favourable changes in asset allocations due to the impact of mutual fund derisking in first-half 2023 (+3 pts) and an allocation to the policyholder surplus reserve (+2 pts).

⁸ The France reporting segment now includes Luxembourg (including branches).

⁹ Cost/income ratio: see definition in the Glossary

This press release presents preliminary, unaudited information, which is subject to completion and adjustment.

The information in this press release is based on two measurement models for CNP Assurances SA and its subsidiaries:

• for inclusion in the CNP Assurances Holding consolidated financial statements, leading to attributable net profit of €892m (€841m for CNP Assurances SA and its subsidiaries and €51m for LBP Assurances);
• for the preparation of consolidated financial statements at the level of CNP Assurances SA and its subsidiaries, leading to attributable net profit of €981m.

The difference is explained by the use of different transition methods. For the preparation of the CNP Assurances Holding transition balance sheet, the Fair Value Approach (FVA) was applicable, based on the price determined for the Mandarine transaction, while the transition balance sheet for CNP Assurances SA and its subsidiaries was prepared using the Modified Retrospective Approach (MRA) or the Fair Value Approach (FVA) depending on the companies concerned, in accordance with IFRS 17 methodology.

IRS 17 income statements CNP Assurances Group / CNP Assurances SA and its subsidiaries

First-half 2023 (€m)	CNP Assurances Group
Insurance service result	1,613
o/w France	1,095
o/w Europe excluding France	153
o/w Latin America	364
Other insurance revenue	(9)
Revenue from own-funds portfolios	283
Total revenue	1,887
Finance costs	(71)
Administrative costs	(223)
Acquisition-related items	(83)
IFRS 17 EBIT	1,511
Share of profit of equity-accounted companies	2
Income tax expense	(492)
Non-controlling interests	(129)
Reported IFRS 17 attributable net profit	892

First-half 2023 (€m)	CNP Assurances SA and its subsidiaries
Insurance service result	1,761
o/w France	1,131
o/w Europe excluding France	153
o/w Latin America	476
Other insurance revenue	(10)
Revenue from own-funds portfolios	317
Total revenue	2,068
Finance costs	(100)
Administrative costs	(193)
Acquisition-related items	(71)
IFRS 17 EBIT	1,704
Share of profit of equity-accounted companies	17
Income tax expense	(575)
Non-controlling interests	(164)
Reported IFRS 17 attributable net profit	981

CNP Assurances SA financial appendices

CNP Assurances SA and its subsidiaries

Gross new money by country

(in €ms)	H1 2023	H1 2022	% change (reported)	% change (like-for-like)
France	12,143	10,767	+12.8	+12.8
Brazil	3,252	3,950	-17.7	-5.1
Italy	2,946	4,769	-38.2	-38.2
Germany	233	240	-3.0	-3.0
Cyprus	109	98	+10.7	+10.7
Spain	35	109	-67.8	-0.4
Rest of Europe	11	11	+1.3	+1.3
Poland	32	37	-14.7	-14.7
Austria	14	13	+7.6	+7.6
Norway	13	12	+15.8	+15.8
Denmark	6	7	-12.2	-12.2
Argentina	10	11	-9.0	+53.1
Other International	35	14	+144.6	+144.6
Total International	6,695	9,270	-27.8	-26.3
Total	18,839	20,037	-6.0	-3.0

CNP Assurances SA and its subsidiaries

Gross new money by segment

(in €ms)	H1 2023	H1 2022	% change (reported)	% change (like-for-like)
Savings	12,525	12,992	-3.6	-3.5
Pensions	3,019	3,733	-19.1	-8.7
Personal Risk Insurance	904	825	+9.5	+11.6
Term Creditor Insurance	2,008	2,172	-7.5	5.6
Health Insurance	203	165	+22.8	+16.4
Property & Casualty	180	150	+20.0	+34.4
Total	18,839	20,037	-6.0	-3.0

(in €ms)	H1 2023	H1 2022	% change
La Banque Postale	5,003	3,966	+26.2
BPCE	3,517	3,088	+13.9
CNP Patrimoine	1,748	1,694	+3.2
Social protection partners (France)	1,110	1,012	+9.7
Financial institutions (France)	333	512	-35.0
Amétis	109	103	+5.5
Other France	323	393	-17.8
Total France	12,143	10,767	+12.8
Caixa Seguradora (Brazil)	3,252	3,950	-17.7
CVA	1,476	2,734	-46.0
CNP UniCredit Vita (Italy)	1,451	2,014	-28.0
CNP Santander Insurance (Ireland)	363	375	-3.0
CNP Vida	0	74	-100.0
CNP Cyprus Insurance Holdings (Cyprus)	109	98	+10.7
Branches	35	14	+144.6
CNP Assurances Compañía de Seguros (Argentina)	10	11	-9.0
Other International	0	0	+175.0
Total International	6,695	9,270	-27.8
Total	18,839	20,037	-6.0

CNP Assurances SA and its subsidiaries

Gross new money by geography and by partner/subsidiary

The glossary is available on the cnp.fr website, in the Investors section: https://www.cnp.fr/en/the-cnpassurances-group/investors/results/results-and-financial-data/2023-results

The IFRS 17 financial statements of CNP Assurances for the six months ended 30 June 2023 were reviewed by the Board of Directors at its meeting on 1 August 2023 and are subject to the finalisation 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 Investors section of the CNP Assurances website at

https://www.cnp.fr/en/the-cnp-assurances-group/investors/results/results-and-financial-data/2023-results

Investor Calendar:

11

• 2023 results indicators under IFRS 17: March 2024

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

With operations in 19 countries worldwide, the CNP Assurances Group is a leading player in the insurance sector, with more than 6,500 employees and net profit of €1,939m in 2022 (IFRS 4). A subsidiary of La Banque Postale, CNP Assurances is a member of the major state-owned financial group. In France, CNP Assurances is ranked No.1 in term creditor insurance and No. 2 in life insurance. In 2023, it became a full service insurer, covering both property and people, following the integration of La Banque Postale's property and casualty business. It is the fifth-largest insurer in Europe, with a strong presence in Italy which is now its second largest market after France. In Brazil, the business has grown rapidly and the Group is now the country's third-largest insurer. In line with its multi-partner model, the Group's solutions are distributed within the framework of long-term strategic partnerships or under an open model. In total, more than 32m people worldwide are insured by CNP Assurances under its Personal Risk/Protection solutions and 14m under its Savings/Pensions contracts. As a responsible insurer and investor (with €400bn invested across all sectors of the economy), CNP Assurances is actively pursuing its corporate mission to help build an inclusive and sustainable society, by offering the greatest number of people solutions that protect and facilitate their life, whatever course it may take.

CNP Assurances is a subsidiary of La Banque Postale. It reported net profit of €1,939m in 2022 under IFRS 4.