Crédit Agricole Assurances shows a resilient business and a good
level of solvency
Against the backdrop of an unprecedented health
crisis, Crédit Agricole Assurances remained mobilised throughout
2020 to serve the economy and its most vulnerable
customers by adopting financial support measures for very
small businesses and SMEs, healthcare professionals and by
supporting its most affected individual customers.
Crédit Agricole Assurances continued in 2020
to diversify its business model
through the development of its priority lines of
business, protection of assets and
individuals (+5.7%1 compared to 2019), and
unit-linked products in savings and retirement.
Including euro-denominated inflows, Crédit Agricole Assurances
posted revenues of €29.4 billion, down 20%
compared to 2019, which had seen exceptionally high euro
inflows.
In property and casualty,
Crédit Agricole Assurances continued its strong
business growth dynamic, with written
premiums reaching €4.8 billion at
end-2020, up 5.8%1 compared to 2019. With a net
contribution of more than 508,000 contracts over
the year, the number of P&C contracts reached 14.6
million at end- 2020, up 3.6% year-on-year.The
growth in equipment rates of retail customers, in France
in the Regional Banks (41.7%2 at end-2020, up 1.0
point year-on-year) and LCL (25.5%2 at end-2020,
up 0.5 point year-on-year), and in Italy in CA
Italia (17.1%3 at end-2020, +1.7 point year-on-year)
confirms the strength of the business model and a still
significant growth potential. The combined
ratio reached 94.9%4 at end-2020.
Death and disability, creditor, and
group insurance written premiums amounted to €4.2
billion, up 5.7%1 year-on-year, driven by
all three businesses segments.
In Savings /
Retirement, Crédit Agricole Assurances continued its
shift toward unit-linked products.At end-2020,
unit-linked products reached a
level of 38.7% of gross new
inflows5, up 9.8 percentage points
compared to 2019.With a very high level of unit-linked net
inflows, at €4.9 billion at end-2020, and
net outflows of -€3.9 billion on Euro contracts,
the total net inflows stand at €1.0 billion.Life insurance
outstandings increased by 1.4% year-on-year to
€308.3 billion6, including €74.5 billion
in unit-linked products (+7.5% compared
to end-2019), and €233.8 billion of Euro-denominated contracts
(-0.5%). The proportion of unit-linked products
reached 24.2% of the total outstandings, up 1.4
percentage point year-on-year.The average rate of return on
assets of Crédit Agricole Assurances group reached
2.13% in 2020, still well above the
average minimum guaranteed rate
(0.27% at end-2020). In addition, profit-sharing
adjustment on Euro-denominated contracts in the context of low
interest rates helps to maintain a significant gap between the
return on assets and the return on liabilities.
New partnerships:
- On 13 January 2021, Crédit Agricole Assurances and
Europ Assistance finalised the closing of a
partnership agreement, resulting in the acquisition by
Pacifica of 50% of Europ Assistance France – Europ
Assistance's main service entity, which brings the Group's
expertise and resources to the French market.
In January 2022, we will therefore be
entrusting all our assistance activities in France to Europ
Assistance, which will become the assistance partner of
the Crédit Agricole group's insurers (Predica, Pacifica, CAMCA, and
La Médicale).
- In line with its international development strategy, Crédit
Agricole Assurances announced on 9 October 2020 the signing of an
agreement with Novo Banco for the
acquisition of 25% of GNB Seguros, a non-life
insurance company in Portugal. Crédit Agricole Assurances thus
increased its stake to 100% of the capital of GNB
Seguros.
This transaction also includes a 22-year
non-life insurance distribution agreement between Novo
Banco and GNB Seguros for the distribution of GNB Seguros policies
in Portugal.
Crédit Agricole Assurances has responded to the
health and economic crisis with support measures and
contributions to solidarity funds representing nearly €350
million for the Crédit Agricole Group, thereby reaffirming
its role as an insurer, investor and responsible company.
- In particular, the Group supported its professional customers
with a voluntary mutual support scheme worth €239
million.
- The Group also contributed €38 million to the
solidarity fund set up by the public authorities for very
small businesses and the self-employed in sectors
particularly affected by the crisis.
- In addition, the Group participated in the exceptional
contribution of supplementary health insurers to the expenses
related to the management of the Covid-19 epidemic for €40
million.
- Lastly, the Group contributed to the solidarity fund
set up by the Crédit Agricole group to help the elderly
and has set up a solidarity fund for health
workers fighting against the spread of the epidemic.
As an investor, the Group has also set up a €250
million investment package to support the economic recovery and
strengthen the health sector in France.
In this context, at the end of December 2020,
the net income group share of Crédit Agricole
Assurances reached €1,230 million7. Excluding exceptional items
linked to the health situation8 and the monetary compensation paid
to Crédit Agricole S.A.9, the NIGS amounted to €1,434
million, down -5.5% compared to the NIGS at the end of
2019, which had reached a particularly high level.
Crédit Agricole Assurance also demonstrated its
solidity and resilience, with a steadily high
Solvency II prudential ratio of 227% at 31
December 2020.Furthermore, Crédit Agricole Assurances continues to
set up its policyholder participation reserve
(PPE), which stood at €11.6 billion at end-2020
(+€0.8 billion in 2020), representing 5.6% of Euro
outstandings10.
On 17 July 2020, Crédit Agricole
Assurances successfully placed €1 billion subordinated
notes in order to finance the early repayment of
intragroup debts. These notes will bear a fixed
interest rate of 2.00% pa until the maturity date in 2030
and are eligible as Tier 2 capital under Solvency
II.
The Standard & Poor’s
rating of the main operational entities of Crédit Agricole
Assurances is A / stable outlook.
1 Growths restated of an accounting
methodological correction in 2020; excluding the restatement,
growth was +6.8% in Protection of assets and individual together,
+7.5% in Property & Casualty and +6.1% in Death and disability,
creditor, and group insurance.
2 Percentage of customers having at least one
contract in automotive, multi-risk household, healthcare, legal,
all mobiles or accident insurance.
3 Percentage of CA Italia’s customers having at
least one contract marketed by CA Assicurazioni, non-life insurance
subsidiary of Crédit Agricole Assurances
4 Ratio of (claims + operating expenses +
commissions) to premium income, net of reinsurance, Pacifica scope,
excluding the cost of the voluntary support scheme on business
interruption, the contribution to the State solidarity fund for
very small businesses and the self-employed, and the exceptional
contribution of supplementary health insurers to the expenses
related to the management of the Covid-19 epidemic. Without
restatements, the ratio reached 97.6% at end-2020.
5 In local GAAP.
6 Savings, retirement and death and
disability.
7 The contribution to the net income group share
of Crédit Agricole S.A. amounted to €1,056 million. The difference
with Crédit Agricole Assurances' net income group share is mainly
due to analytical restatements affecting to the Insurance business
line i) analytical expenses of Crédit Agricole S.A. (mainly the
cost of the Switch guarantee of around €140 million) and ii)
subordinated (RT1) debt coupons for €76 million, and also to the
elimination of the monetary compensation of €49 million paid to
Crédit Agricole S.A.
8 Specific items include solidarity and support
measures (contribution to the State solidarity fund for very small
businesses and the self-employed, contribution to the solidarity
fund set up by the Crédit Agricole group for the elderly, cost of
the mutual support mechanism on the business interruption, and
extra-contractual measure in favour of vulnerable persons) for a
total of nearly -€140 million in NIGS and the exceptional
contribution of supplementary health insurers to the expenses
related to the management of the Covid-19 epidemic (-€15 million in
NIGS).
9 Crédit Agricole Assurances paid a monetary
compensation to Crédit Agricole S.A. of €54 million before taxes
(€49 million after taxes) due to the early repayment of
subordinated notes of €1 billion in total. This early repayments
followed a new debt issue on the market of subordinated perpetual
notes for €1 billion in July 2020.
10 “Life France scope”.
- CAA_PR_Activity_and_Results_2020-Q4
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