CNP Assurances: 2003 Premium Income CNP Assurances Announces A 6%
Increase in 2003 Consolidated Premium Income To EURO 19,461 Million
and Approximately 8.5% Growth in Assets Under Management PARIS,
Feb. 9 /PRNewswire-FirstCall/ -- I - CNP ASSURANCES GROUP PREMIUM
INCOME CNP Assurances consolidated premium income for the fourth
quarter of 2003 totalled EURO 4,819.9 million, up 8.3% compared
with EURO 4,450.2 million for the same period of the previous year.
Excluding the currency effect, the increase was 9.9%. Premium
income for the full year amounted to EURO 19,461.0 million, an
increase of 6.3% or 6.8% at constant exchange rates. In France,
premium income rose 6.3%. After two years of market-beating
performances, this was slightly below the estimated growth in the
French personal insurance market. According to estimates published
by the French insurance federation (FFSA), the market expanded 9%
to EURO 104.3 billion. Unit-linked portfolios account for a smaller
proportion of CNP's assets under management, with the result that
mark-to-market adjustments recorded on French assets since the
beginning of the year have had less of an impact at CNP compared to
the market as a whole. The French market for unit-linked products
contracted by an estimated 7% in 2003, while the non-unit-linked
market grew by 13%. Total assets under management, which account
for over 60% of CNP Assurances Group revenues, expanded by
approximately 8.5%. This was also slightly below the growth rate
for the French market as a whole which, according to FFSA
estimates, stood at around 10%. This strong rise was primarily
attributable to upward mark-to-market adjustments to unit-linked
assets, reflecting the recovery staged by the stock markets in
2003. II -BUSINESSSEGMENT 2.1 PREMIUM INCOME BY BUSINESS SEGMENT
Changes in premium income in 2003 compared with 2002 were as
follows: Premium income 2003 2002 Change 2001 (1) EURO m EURO m %
EURO m Savings (2) 15,033.8 14,300.9 5.1 13,496.5 Pensions (3)
1,340.3 1,175.9 14.0 1,179.2 Personal risk (2) (3) 1,066.5 922.0
15.7 821.2 Loan insurance 1,591.3 1,555.3 2.3 1,467.0 Health
insurance 221.8 195.0 13.7 176.1 Property & Casualty 207.3
211.4 - 1.9 150.0 TOTAL 19,461.0 18,360.5 +,6.0 17,290.0 (1) Caixa
Seguros (Brazil) was consolidated only in the second half of 2001.
Average exchange rate for 2003: EURO 1 = BRL 3.48628 (2) Including
Personal Risk premium income reclassified under Savings in France:
EURO 55.2 million in 2003 and EURO 22.4 million in 2002. (3)
Including Personal Risk premium income reclassified under Pensions
in Brazil: EURO 123.8 million in 2003 and EURO 22.2 million in
2002. At constant exchange rates - with 2003 premium income in
Brazil translated at the average exchange rate for 2002 - premium
income rose 6.8%. Changes by business segment were as follows:
Premium income 2003 2002 Change at 2002 exchange rate EURO m EURO m
% Savings (1) 15,072.4 14,300.9 5.4 Pensions (1) 1,387.4 1,175.9
18.0 Personal risk (2) 1,083.7 922.0 17.5 Loan insurance 1,618.2
1,555.3 4.0 Health insurance 221.8 195.0 13.7 Property &
Casualty 230.5 211.4 9.0 TOTAL 19,614.0 18,360.5 6.8 Average
exchange rate for 2003 and 2002: EURO 1 = BRL 2.81019 (1) Including
Personal Risk premium income reclassified under Savings in France:
EURO 55.2 million in 2003 and EURO 22.4 million in 2002. (2)
Including Personal Risk premium income reclassified under Pensions
in Brazil: EURO 153.1 million in 2003 (at 2002 exchange rate) and
EURO 22.2 million in 2002. 2.2 SAVINGS Savings premium income rose
5.1% (5.4% excluding the currency effect) year-on-year and 12.3% in
the fourth quarter. In France, premium income generated by the
Savings business was up 5.6% compared with2002. The strong growth
in new money observed in the fourth quarter in the French market
was partly attributable to transfers from Livret A passbook savings
accounts, following the 1 August 2003 cut in the interest paid on
these accounts from 3% to 2.25%. According to initial estimates,
around EURO 4 billion were taken out of Livret A accounts during
the second half of the year, of which some 30% is thought to have
been reinvested in life insurance products. Net new money invested
in CNP Assurances' unit-linked products reached EURO 2,114 million
in 2003, representing 14.1% of total savings premium income for the
year. While the 6.5% decline from EURO 2,262 million in 2002 was
consistent with the overall market trend, CNP's three partner
networksperformed unevenly. Unit-linked sales by the Savings Banks
held more or less firm compared with 2002 (see 3.1) but the Post
Office and Treasury networks underperformed the market. However,
these two networks were the driving force behind the 20% surge in
unit-linked sales observed in the fourth quarter. 2.3 PENSIONS
Pensions premium income climbed 14%, or 18% at constant exchange
rates. In France, growth in pensions business was driven by a
strong 9.3% rise in premium income from group products, sold mainly
to companies, which more than offset the modest 2.7% decline in
sales of individual products. 2.4 PERSONAL RISK Personal risk
premium income advanced 15.7% or 17.5% at constant exchange rates.
In France, sales of individual policies sold by the networks rose a
further 14.2% to EURO 125 million. Following the reclassification
of Assistant Obseques, a funeral insurance product sold by the
Savings Banks, premium income of EURO 55.2 million in 2003 and EURO
22.4 million in 2002 was transferred from Personal Risk to Savings.
Sales of group personal risk contracts to mutual insurers, local
authorities and companies increased by a strong 17.5% in 2003. 2.5
LOAN INSURANCE Loan insurance premium income rose 2.3%, or 4% at
constant exchange rates. In France, the increase was 5.1%, with
Predica's participation rate as co- insurer for Credit Agricole
loan insurance business unchanged at 50%. 2.6 HEALTH INSURANCE
Premium income from sales of health insurance -- a market not
covered by the Brazilian subsidiary -- expanded 13.7%, helped by
the rate increases applied in France in the fourth quarter of 2002.
Completys Sante, the health insurance product marketed by 50%-owned
Assurposte (proportionally consolidated in CNP Assurances'financial
statements) contributed EURO 4.8 million to the total. 2.7 PROPERTY
& CASUALTY INSURANCE Property and casualty insurance premium
income dipped 1.9% to EURO 207.3 million, but increased 9% on a
constant exchange rate basis. Only the Portuguese and Brazilian
subsidiaries write property and casualty insurance, contributing
EURO 112.8 million and EURO 94.5 million respectively in 2003. III
- BY COUNTRY AND PARTNER NETWORK 3.1 France Premium income
generated by the CNP Assurances Groupin France in 2003 totalled
EURO 18,662.2 million, an increase of 6.3% compared with 2002. All
business segments contributed to growth, with personal risk and
health insurance achieving the biggest gains. Savings Pensions
Personal Loan Health Total risk insurance insurance EURO m 14,840.1
1,122.9 995.7 1,485.3 218.2 18,662.2 % + 5.6 + 6.2 + 17.6 + 5.1 +
11.9 + 6.3 Premium income generated by the French Post Office in
2003 rose 5.3% to EURO 6,957.6 million. Fourth quarter performance
was particularly satisfactory, with growth reaching 13.3%. The
multi-product campaign backed by a special life insurance offer
originally scheduled for June and July was extended until the end
of September, to coincide with the reduction in the interest rate
on Livret A passbook savings accounts. The loan insurance segment
grew by 10.3% to EURO 47.2 million. Sales of unit-linked products
came to EURO 459 million, down 23.8% on 2002. All told, sales of
unit-linked products represented 6.8% of Savings premium income
generated by the Post Office network in 2003. Unit-linked business
picked up sharply in the fourth quarter of 2003, with new money up
18% on the same period of 2002. This very satisfactory end to the
year was partly attributable to the launch of Formulo, a new
product combining non-unit-linked and unit-linked offers based on
different weightings. Premium income generated by the Savings Banks
network climbed 7.8% to EURO 7,746.9 million. The growth rate
surged to 12.8% in the fourth quarter, mainly thanks to the highly
effective campaign launched in conjunction with the cut in the
interest rate on Livret A accounts. The two flagship products,
Nuances 3D and Initiative Transmission, together accounted for 80%
of new money. Loan insurance premium income rose 10% to EURO 256.8
million. Unit-linked sales dipped by a meagre 1.1% to 1,558
million, representing 21.3% of Savings premium income. This high
level in absolute value was achieved thanks to the offers carried
out during the year on Nuances products. Premium income generated
by the French Treasury network totalled EURO 738.1 million, down 8%
compared with 2002. Fourth quarter premium income rose 4.8%,
however, over the year-earlier period. Sales of unit-linked
products contracted 15.6% to EURO 49 million, representing 7.3% of
total Savings premium income generated by the network. A personal
risk campaign was conductedbetween May and July, putting the
spotlight on a new product insuring the "accidents of day-to-day
life". As announced on 14 January 2004, the French Treasury stopped
distributing CNP products on 31 December 2003 and, since the
beginning of this year, CNP Assurances has taken over managing
relations with policyholders who purchased their product through
the French Treasury network. Financial institutions contributed
premium income of EURO 1,009.8 million in 2003, an increase of 2.4%
compared with 2002. Predica's participation rate as co-insurer of
Credit Agricole loan insurance business remained unchanged in 2003
at 50%. Premium income generated by mutual insurance companies and
local authorities grew 15.9% to EURO 1,353.8 million, reflecting
strong growth in business with mutual insurers. Premium income from
Prefon group insurance products rose 14.6% to EURO 514 million.
Premium income from sales to companies expanded by a robust 8.6% to
EURO 772.9 million. Growth was driven by group pension products,
with a significant rise in premiums received from large corporates
in the first half of the year, and also by sales of group personal
risk products. Premium income from Other Development Initiatives in
France, including direct sales and salesby other networks, declined
14.7% to EURO 83.1 million. 3.2 INTERNATIONAL OPERATIONS The
Group's subsidiaries in Portugal (Global, Global Vida), Argentina
and Brazil contributed EURO 798.8 million to consolidated premium
income in 2003, representing a 0.2% decline at current exchange
rtes and an 18.9% increase at constant rates. In Portugal, premium
income generated by Global and Global Vida rose 7.9% to EURO 160.9
million. In Argentina, premium income fell by 52% (46% at constant
exchange rates)to ARS 7.5 million or EURO 2.2 million. In Brazil,
Caixa Seguros reported premium income of BRL 2,214.8 million or
EURO 635.3 million. This represented an increase of 22% in local
currency (versus a decrease of 1.7% in euros), achieved against a
backdrop of low economic growth and an inflation rate brought down
to below 15%. The pension business surged 122% and the personal
risk business expanded 16% in a Brazilian insurance market up by
around 20%. Certain new products successfully launched in the
"VGBL" market (products combining medium-term savings with personal
risk insurance) in 2002, that were previously included in the
Personal Risk segment, have been reclassified as Pension products.
This reclassification led to the transfer between these two
segments of EURO 123.8 million in premium income in 2003 (EURO
153.1 million at constant exchange rates). The loan insurance
business continued to labour under the burden of Brazil's very high
interest rates. At the end of December 2003, the Central Bank's
SELIC base rate stood at 16.3%. Based on provisional data, CNP
Assurances expects to have met its 2003 target of matching 2002
recurring profit. Provisional data also indicate that the Group has
achieved its goal of a 10% increase in operating profit - excluding
the effect of changes in financial market conditions - which is a
better indicator of underlying growth before the effects of
taxation. This financial press release is available for
consultation, in French and English, on the CNP Assurances web
site, http://www.cnp.fr/. The 2003 results will be announced on
Tuesday, 9 March 2004, after the close of trading on the Paris
Bourse. FOURTH QUARTER 2003 PREMIUM INCOME FOURTH QUARTER 2003
PREMIUM INCOME BY BUSINESS SEGMENT Premium income Q4 2003 By
segment Q4 2002 Q4 2003 Excluding currency effect (1) EURO m %
change EURO m % change EURO m Savings 3,540.0 + 12.3 3,543.9 + 12.4
3,152.2 Pensions 491.8 (2) - 12.5 498.3 (3) - 11.4 562.1 Personal
risk 270.7 (2) + 16.6 272.4 (3) + 17.3 232.1 Loan insurance 398.4 -
0.4 401.1 + 0.3 400.0 Health insurance 64.4 + 36.6 64.4 + 36.6 47.1
Property & Casualty 54.6 - 3.5 57.1 + 0.8 56.6 TOTAL 4,819.9 +
8.3 4,837.0 + 8.7 4,450.2 (1) Average exchange rate: EURO 1 = BRL
3.26735 EURO 1 = ARS 3.69605 (2) Including EURO 43.8 million
transferred from Personal Risk to Pensions in Brazil. (3) Including
EURO 59.3 million transferred from Personal Risk to Pensions in
Brazil. CNP ASSURANCES GROUP CONSOLIDATED PREMIUM INCOME FOR THE
FOURTH QUARTER OF 2003 BY PARTNERSHIP CENTRE AND FOREIGN SUBSIDIARY
Q4 2003 Q4 2002 Change Q4 2001 Partnership centers and foreign
subsidiaries EURO m EURO m % EURO m French Post Office 1,743.6
1,539.1 + 13.3 1,659.7 Savings Banks1,689.4 1,497.9 + 12.8 1,390.8
French Treasury 168.6 160.9 + 4.8 224.0 Financial institutions
244.0 274.4 - 11.1 262.8 Mutual insurers and local authorities
486.9 398.0 + 22.3 342.6 Companies 231.8 293.7 - 21.1 374.8 Other
(France) 40.0 38.2 + 4.8 35.0 Global (Portugal) 49.9 43.0 + 16.0
39.6 CNP Seguros de Vida (1) (Argentina) (1) 0.6 - 0.6 n.m. 3.6
Other (international) - 0.4 0 n.m. 0.3 Caixa Seguros (Brazil) (1)
(2) 165.7 205.7 - 19.4 170.3 TOTAL 4,819.9 4,450.2 + 8.3 4,503.4
(1) Converted at the following average exchange rates Argentina:
EURO 1 = ARS 3.46045 Brazil: EURO 1 = BRL 3.47290 (2) Caixa Seguros
has been consolidated by CNP Assurances since the second half of
2001. 2003 PREMIUM INCOME PREMIUM INCOME BY COUNTRY Change at
constant exchange 2003 2002 Change rates EURO m EURO m % % France
18,662.2 17,560.1 + 6.3 + 6.3 Portugal 160.9 149.1 + 7.9 + 7.9
Brazil 635.3 646.3 - 1.7 + 22.0 Argentina 2.2 4.5 - 51.3 - 46.0
Other 0.4 0.5 n.m. n.m. TOTAL 19,461.0 18,360.5 + 6 + 6.8 PREMIUM
INCOME 2003 BY CATEGORY Premium income 2003 2002 Change 2001 EURO m
EURO m % EURO m Individual insurance 15,798.3 14,954.0 +5.6
14,065.6 Group insurance 3,662.7 3,406.5 + 7.5 3,244.4 TOTAL
19,461.0 18,360.5 + 6 17,290.0 2003 Premium income BY COUNTRY AND
MARKET SEGMENT EURO m Savings Pensions Personal Loan risk insurance
France 14,840.1(2) 1,122.9 995.7(2) 1,485.3 Portugal 41.7 - 2.8 -
Brazil 150.4 217.4 (1) 67.0 (1) 106.0 Argentina and Other 1.6 - 1.0
- TOTAL 15,033.8 1,340.3 1,066.5 1,591.3 EURO m Health Property
& Total insurance Casualty France 218.2 - 18,662.2 Portugal 3.6
112.8 160.9 Brazil - 94.5 635.3 Argentina and Other- - 2.6 TOTAL
221.8 207.3 19,461.0 (1) Including EURO 123.8 million transferred
from Personal Risk to Pensions. (2) Including EURO 55.2 million
transferred from Personal Risk toSavings. CNP ASSURANCES GROUP 2003
CONSOLIDATED PREMIUM INCOME BY PARTNERSHIP CENTRE AND FOREIGN
SUBSIDIARY 2003 2002 Change 2001 Partnership centers and foreign
subsidiaries EURO m EURO m % EURO m French Post Office 6,957.6
6,606.3 + 5.3 6,494.6 Savings Banks 7,746.9 7,189.1 + 7.8 5,974.1
French Treasury 738.1 801.9 - 8.0 1,442.3 Financial institutions
1,009.8 985.7 + 2.4 990.8 Mutual insurers and local authorities
1,353.8 1,167.7 + 15.9 1,063.9 Companies 772.9 712.0 + 8.6 778.4
Other (France) 83.1 97.4 - 14.7 89.9 Global (Portugal) 160.9 149.1
+ 7.9 133.2 CNP Seguros de Vida (1) (Argentina) (1) and other2.6
5.0 - 48.2 15.9 Caixa Seguros (Brazil) (1) (2) 635.3 646.3 - 1.7
306.9 TOTAL 19,461.0 18,360.5 + 6.0 17,290.0 (1) Converted at the
following average exchange rates Argentina: EURO 1 = ARS 3.41609
Brazil: EURO 1 = BRL 3.48628 (2) Caixa Seguros has been
consolidated by CNP Assurances since the second half of 2001. CAIXA
SEGUROS (BRAZIL) PREMIUM INCOME in millions of reals (BRL) MARKET
SEGMENT 2003 2002 % change Savings 524.5 585.3 - 10.0 Pensions (1)
757.4 341.7 + 122 Personal risk (1) 233.5 201.4 + 16 Loan insurance
369.8 390.8 - 5 Property & Casualty 329.6 300.9 + 10 TOTAL
2,214.8 1,820.2 + 22 (1) Including Personal Risk premium income
reclassified under Pensions: BRL 431.2 million in 2003 and BRL 72.5
million in 2002 DATASOURCE: CNP Assurances CONTACT: Investor and
Analyst Relations, Brigitte Molkhou, +33-1-42-18-77-27, or , or
Press Relations, Sophie Messager, +33-1-42-18-86-51, or , both of
CNP Assurances Web site: http://www.cnp.fr/
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