2009
Consolidated results(1)
Revenues: €8,358 million, up 8.4% (4.5% like-for-like)
Operating profit(2): €115 million, down 49.6%
Net profit: €166 million, down 40.5%
Shareholders’ equity: €3,433 million, up 8.0%
Combined results(1)
Revenue: €10,983 million, up 7.2% (4.3% like-for-like)
Net profit: €110 million, down 66.4%
The financial statements are prepared in accordance with IFRS.
“Our business continued to grow rapidly in the first half of the year” commented Jean Azéma, Chief Executive Officer. “We ended the period with a strong performance in Life & Health insurance and solid foundations for growth in our international subsidiaries. Groupama fully played its part as an insurer when after the early-year storms the group compensated its policyholders up to a total amount of €436 million. All the same, the group posted a net profit. We remain confident of fulfilling our ambitions in Europe and will continue in the second half implementing our business investments, while also working to unleash the significant synergies that exist at all levels in our organization.”
HIGHLIGHTS
A RESILIENT PERFORMANCE IN A CHALLENGING ENVIRONMENT
- Strong business growth, with Life & Health premiums up 12.4% and Property & Casualty premiums up 6.0%.
- Operating profit of €115 million, despite significant storm damage claims at the beginning of the year.
- Combined ratio (excluding storm damage claims) at 101.2%, in line with our targeted range of 100% +/- 2%.
- A very healthy asset portfolio, with no material impairment losses recognized during the period.
- Net profit of €166 million despite the combined effects of the financial crisis and major storms.
- 6-point improvement in Group statutory solvency ratio to 128%.
Post-balance sheet event
- In July and August, Groupama SA issued senior notes for a total amount of €380 million on Euronext Paris, in relation to the “Groupama Obligation 2009” offer which complemented the Group’s unit-linked life insurance contracts.
FRANCE: STRONG GAINS ACROSS ALL BUSINESS LINES AND STRATEGIC ADVANCES IN ESTABLISHING FUTURE GROWTH
DRIVERS
- First-half 2009 figures in France provided a resounding endorsement of the three-year strategic plan which is now in its final year, with Property & Casualty premiums up 2.0% and Life & Health premiums up 12.4%.
- In the savings and pensions segment, Groupama outperformed both traditional insurance and the bancassurance networks, reporting 15.9% growth in a market up 6.0%. The marketing initiatives that underpinned this performance was also behind the very sharp rise in net inflows, which expanded 70.3% compared with a 19.0% increase for the market as a whole, reflecting a shift in demand fuelled by
declining interest rates on short-term savings products.
- Amaguiz.com, the new Internet dedicated brand, continued to outperform its business plan, with 25,200 policies written by the end of the first-half. Leveraging this initial success and its innovation capabilities, in April Amaguiz added comprehensive home insurance to its lineup.
- On 11 March, La Banque Postale announced that it had launched exclusive negotiations with Groupama with a view to distributing Property & Casualty products though its network. The partnership agreement should be finalised by the end of the year, leading to the creation of a joint venture that will be majority-owned by La Banque Postale.
Post-balance sheet events
- Groupama, France’s leading provider of individual health insurance and the Pro BTP group have signed an agreement for the creation of a joint venture to lead their shared networks of healthcare professionals in order to offer policyholders more competitive services.
- On 24 July, the French banking supervisor (Comité des Etablissements de Crédit) authorised the proposed merger between Groupama Banque and Banque Finama. Combining its banking operations in France will enable the Group to offer a broader range of services and to generate cost synergies, while also strengthening controls over these operations.
INTERNATIONAL: LAYING SOLID FOUNDATIONS FOR FUTURE GROWTH THROUGH MERGERS AND THE INTEGRATION OF RECENT ACQUISITIONS
- During the first half of the year, the international subsidiaries generated premium income of €2.2 billion, 12.8% more than in the year-earlier period despite the worldwide recession and general slowdown in business.
- As announced, the period was devoted to integrating and merging the companies acquired in 2008 in order to create major growth platforms for the coming years:
- In Hungary, Groupama Biztosito and OTP Garancia were merged on 31 March to create Groupama Garancia Biztosito, the country’s fourth largest non-life insurance company and fifth largest life insurer.
- In Italy, the local insurance supervisor authorized the merger of Groupama Assicurazioni, Groupama Vita and Nuova Tirrena which will take place on 1 November.
-In Romania, supervisory approval was obtained for the merger of Asiban and BT Asigurari. The merged company will begin writing insurance in the local market under its new name, Groupama Asigurari, at the end of September.
- In Spain, the Group kept up its drive to diversify distribution channels by signing an agreement with Bancaja, the country’s third largest savings bank, for the distribution of its comprehensive home insurance offering via the bank’s 1,561 branches. The exclusive 10-year agreement will enable Groupama to strengthen its position in Spain’s fast-growing bank assurance market.
- Lastly, in line with its strategy of building a long-term presence in the Chinese market, Groupama obtained the go-ahead to open a representation office in Beijing prior to applying for a licence to write life insurance.
Post-balance sheet events
- In Turkey, Basak Groupama Sigorta and Basak Groupama Emeklilik will be merged on 30 September with Güven Sigorta and Güven Hayat, acquired in 2008. The merged company will be Turkey’s fifth largest non-life insurer and the second largest life insurer.
- In Bulgaria, former OTP Bank subsidiary DSK Garancia will start writing insurance under the Groupama brand on 8 September.
(1) The consolidated financial statements of Groupama S.A. include the financial statements of all subsidiaries and intra-group reinsurance business (representing roughly 40% of the regional mutuals’ revenues ceded to Groupama S.A.). The combined financial statements comprise all of the Group’s businesses (corresponding to the regional mutuals and the subsidiaries consolidated by Groupama S.A.).
(2) Profit from operations corresponds to net profit before (i) net realised capital gains or losses, impairments, gains and losses on financial assets booked at fair value in any case for the portion attributable to shareholders and after tax and (ii) non recurring items, amortisation of value of business acquired (VOBA) and goodwill impairment losses all after tax.