Towards the backdrop of an unprecedented well being disaster, Crédit Agricole Assurances remained mobilised all through 2020 to serve the financial system and its most weak clients by adopting monetary help measures for very small companies and SMEs, healthcare professionals and by supporting its most affected particular person clients.
Crédit Agricole Assurances continued in 2020 to diversify its enterprise mannequin via the event of its precedence traces of enterprise, safety of property and people (+5.7%1 in comparison with 2019), and unit-linked merchandise in financial savings and retirement. Together with euro-denominated inflows, Crédit Agricole Assurances posted revenues of €29.4 billion, down 20% in comparison with 2019, which had seen exceptionally excessive euro inflows.
In property and casualty, Crédit Agricole Assurances continued its sturdy enterprise development dynamic, with written premiums reaching €4.8 billion at end-2020, up 5.8%1 in comparison with 2019. With a web contribution of greater than 508,000 contracts over the 12 months, the variety of P&C contracts reached 14.6 million at end- 2020, up 3.6% year-on-year.
The expansion in tools charges of retail clients, in France within the Regional Banks (41.7%2 at end-2020, up 1.0 level year-on-year) and LCL (25.5%2 at end-2020, up 0.5 level year-on-year), and in Italy in CA Italia (17.1%3 at end-2020, +1.7 level year-on-year) confirms the energy of the enterprise mannequin and a nonetheless important development potential. The mixed ratio reached 94.9%4at end-2020.
Dying and incapacity, creditor, and group insurance coverage written premiums amounted to €4.2 billion, up 5.7%1 year-on-year, pushed by all three companies segments.
In Financial savings / Retirement, Crédit Agricole Assurances continued its shift towards unit-linked merchandise.
At end-2020, unit-linked merchandise reached a degree of 38.7% of gross new inflows5, up 9.8 proportion factors in comparison with 2019.
With a very excessive degree of unit-linked web inflows, at €4.9 billion at end-2020, and web outflows of -€3.9 billion on Euro contracts, the full web inflows stand at €1.0 billion.
Life insurance coverage outstandings elevated by 1.4% year-on-year to €308.3 billion6, together with €74.5 billion in unit-linked merchandise (+7.5% in comparison with end-2019), and €233.8 billion of Euro-denominated contracts (-0.5%). The proportion of unit-linked merchandise reached 24.2% of the full outstandings, up 1.4 proportion level year-on-year.
The common charge of return on property of Crédit Agricole Assurances group reached 2.13% in 2020, nonetheless properly above the common minimal assured charge (0.27% at end-2020). As well as, profit-sharing adjustment on Euro-denominated contracts within the context of low rates of interest helps to keep up a big hole between the return on property and the return on liabilities.
- On 13 January 2021, Crédit Agricole Assurances and Europ Help finalised the closing of a partnership settlement, ensuing within the acquisition by Pacifica of fifty% of Europ Help France – Europ Help’s important service entity, which brings the Group’s experience and sources to the French market.
In January 2022, we are going to subsequently be entrusting all our help actions in France to Europ Help, which is able to change into the help accomplice of the Crédit Agricole group’s insurers (Predica, Pacifica, CAMCA, and La Médicale).
- Consistent with its worldwide growth technique, Crédit Agricole Assurances introduced on 9 October 2020 the signing of an settlement with Novo Banco for the acquisition of 25% of GNB Seguros, a non-life insurance coverage firm in Portugal. Crédit Agricole Assurances thus elevated its stake to 100% of the capital of GNB Seguros.
This transaction additionally features a 22-year non-life insurance coverage distribution settlement between Novo Banco and GNB Seguros for the distribution of GNB Seguros insurance policies in Portugal.
Crédit Agricole Assurances has responded to the well being and financial disaster with help measures and contributions to solidarity funds representing almost €350 million for the Crédit Agricole Group, thereby reaffirming its position as an insurer, investor and accountable firm.
- Particularly, the Group supported its skilled clients with a voluntary mutual help scheme price €239 million.
- The Group additionally contributed €38 million to the solidarity fund arrange by the general public authorities for very small companies and the self-employed in sectors significantly affected by the disaster.
- As well as, the Group participated within the distinctive contribution of supplementary well being insurers to the bills associated to the administration of the Covid-19 epidemic for €40 million.
- Lastly, the Group contributed to the solidarity fund arrange by the Crédit Agricole group to assist the aged and has arrange a solidarity fund for well being staff combating towards the unfold of the epidemic.
As an investor, the Group has additionally arrange a €250 million funding bundle to help the financial restoration and strengthen the well being sector in France.
On this context, on the finish of December 2020, the web earnings group share of Crédit Agricole Assurances reached €1,230 million7. Excluding distinctive gadgets linked to the well being state of affairs8 and the financial compensation paid to Crédit Agricole S.A.9, the NIGS amounted to €1,434 million, down -5.5% in comparison with the NIGS on the finish of 2019, which had reached a very excessive degree.
Crédit Agricole Assurance additionally demonstrated its solidity and resilience, with a steadily excessive Solvency II prudential ratio of 227% at 31 December 2020.
Moreover, Crédit Agricole Assurances continues to arrange 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 efficiently positioned €1 billion subordinated notes to be able to finance the early compensation of intragroup money owed. These notes will bear a mounted rate of interest of two.00% pa till the maturity date in 2030 and are eligible as Tier 2 capital underneath Solvency II.
The Customary & Poor’s ranking of the primary operational entities of Crédit Agricole Assurances is A / steady outlook.
1 Growths restated of an accounting methodological correction in 2020; excluding the restatement, development was +6.8% in Safety of property and particular person collectively, +7.5% in Property & Casualty and +6.1% in Dying and incapacity, creditor, and group insurance coverage.
2Proportion of consumers having not less than one contract in automotive, multi-risk family, healthcare, authorized, all mobiles or accident insurance coverage.
3Proportion of CA Italia’s clients having not less than one contract marketed by CA Assicurazioni, non-life insurance coverage subsidiary of Crédit Agricole Assurances
4Ratio of (claims + working bills + commissions) to premium earnings, web of reinsurance, Pacifica scope, excluding the price of the voluntary help scheme on enterprise interruption, the contribution to the State solidarity fund for very small companies and the self-employed, and the distinctive contribution of supplementary well being insurers to the bills associated to the administration of the Covid-19 epidemic. With out restatements, the ratio reached 97.6% at end-2020.
5 In native GAAP.
6 Financial savings, retirement and loss of life and incapacity.
7The contribution to the online earnings group share of Crédit Agricole S.A. amounted to €1,056 million. The distinction with Crédit Agricole Assurances’ web earnings group share is especially attributable to analytical restatements affecting to the Insurance coverage enterprise line i) analytical bills of Crédit Agricole S.A. (primarily the price of the Change assure of round €140 million) and ii) subordinated (RT1) debt coupons for €76 million, and in addition to the elimination of the financial compensation of €49 million paid to Crédit Agricole S.A.
8 Particular gadgets embrace solidarity and help measures (contribution to the State solidarity fund for very small companies and the self-employed, contribution to the solidarity fund arrange by the Crédit Agricole group for the aged, value of the mutual help mechanism on the enterprise interruption, and extra-contractual measure in favour of weak individuals) for a complete of almost -€140 million in NIGS and the distinctive contribution of supplementary well being insurers to the bills associated to the administration of the Covid-19 epidemic (-€15 million in NIGS).
9 Crédit Agricole Assurances paid a financial compensation to Crédit Agricole S.A. of €54 million earlier than taxes (€49 million after taxes) as a result of early compensation of subordinated notes of €1 billion in whole. This early repayments adopted a brand new debt subject available on the market of subordinated perpetual notes for €1 billion in July 2020.
10 “Life France scope”.