November 2018 INVESTOR PRESENTATION

Transcription

1 November 2018 INVESTOR PRESENTATION

2 Disclaimer Some of the statements contained in this presentation may be forward-looking statements referring to projections, future events, trends or objectives that, by their very nature, involve inherent risks and uncertainties that may cause actual results to differ materially from those currently anticipated in such statements. These risks and uncertainties may concern factors such as changes in general economic conditions and financial market performance, legal or regulatory decisions or changes, changes in the frequency and amount of insured claims, changes in interest rates and foreign exchange rates, changes in the policies of central banks or governments, legal proceedings, the effects of acquisitions and divestments, and general factors affecting competition. Further information regarding factors which may cause results to differ materially from those projected in forward-looking statements is included in CNP Assurances' filings with the Autorité des Marchés Financiers. CNP Assurances does not undertake to update any forward-looking statements presented herein to take into account any new information, future event or other factors. Certain prior-period information may be reclassified on a basis consistent with current year data. The sum of the amounts presented in this document may not correspond exactly to the total indicated in the tables and the text. Percentages and percentage changes are calculated based on unrounded figures and there may be certain minor differences between the amounts and percentages due to rounding. CNP Assurances' final solvency indicators are submitted post-publication to the insurance supervisor and may differ from the explicit and implicit estimates contained in this document. This document may contain alternative performance indicators (such as EBIT) that are considered useful by CNP Assurances but are not recognised in the IFRSs adopted for use in the European Union. These indicators should be treated as additional information and not as substitutes for the balance sheet and income statement prepared in accordance with IFRS. They may not be comparable with those published by other companies, as their definition may vary from one company to another. 2

3 AGENDA 1. Business Model 2. Profitability 3. Investments & Asset-Liability Management 4. Solvency 5. Rating & Funding 6. Outlook

4 1. Business Model

5 KEY INVESTMENT HIGHLIGHTS MARKET LEADERSHIP # 1 in France (1) # 4 in Brazil (2) SOLID GROWTH PROSPECTS Target: at least 5% organic EBIT growth in 2018 Geographic diversification across Europe and Latin America INNOVATION Youse: Brazil's first 100%-digital insurance platform launched in 2016 Open CNP: an ambitious 100m corporate-venture programme FINANCIAL STRENGTH 193% Group SCR coverage ratio at 30 September 2018 (standard formula without transitional measures) A1/A financial strength rating assigned by Moody s/s&p (both with stable outlook) RESILIENT FINANCIAL PERFORMANCE Continuously delivering profits and paying stable or growing dividends since IPO in 1998 Low guaranteed yield across French savings liabilities of 0.29% at end June 2018 BEST IN CLASS EFFICIENCY 2 nd most efficient European life insurer (administrative expense ratio) (3) Target: 60m recurring annual reduction in the French cost base by 2018 (1) In terms of 2017 life insurance reserves (2) In terms of 2017 insurance premium income (3) Source: HSBC European Insurance Cost-cutting Calculator (November 2017) 5

6 CNP ASSURANCES: 7 TH LARGEST EUROPEAN INSURER BY ASSETS, AND 14 TH LARGEST WORLDWIDE TOTAL ASSETS ( bn) Allianz AXA Ping An Prudential Financial Metlife Japan Post Insurance Legal & General Nippon Life Prudential plc Generali Aviva Manulife Financial Nat Mut Ins Fed of Agricultural Coop CNP Assurances AIG Dai-Ichi Aegon China Life Zurich Insurance Meiji Yasuda Source: Bloomberg, latest annual consolidated accounts of each company 6

7 A LEADING POSITION IN FRANCE AND BRAZIL FRANCE Market leader in France life, 17% market share (1) LATIN AMERICA Acquisition of Caixa Seguradora in July 2001 Significant market share of the term creditor insurance market (death & disability of the borrowers) Stable earnings and cash-flows Exclusive distribution agreement with the public bank Caixa Econômica Federal (CEF) 4 th insurer in Brazil, 8% market share (2) Self-funded subsidiary with good cash generation ( 206m of upstream dividends in 2017 after 162m in 2016) Successful launch of Youse, Brazil s first full-online insurance platform EUROPE EXCLUDING FRANCE Strong growth in term creditor insurance with CNP Santander in 12 European countries (Germany, Poland, Nordic countries, etc.) Footprint in Italy with CNP UniCredit Vita and Spain with CNP Partners (1) In terms of 2017 life insurance reserves. Source: FFA (2) In terms of 2017 insurance premium income. Source: SUSEP 7

8 STRONG MARKET SHARES IN FRANCE AND BRAZIL Market share in France (1) CNP Assurances Crédit Agricole Market leader in France life 20% 17% AXA Crédit Mutuel 4% 4% 5% 5% 6% 8% 8% 15% 8% BNPP Société générale Generali Aviva Allianz AG2R La Mondiale Others Market share in Brazil (2) 2% 2% 2% 4% 5% 18% 8% 12% 26% 22% Banco do Brasil Bradesco Itaú Caixa Seguradora Porto Seguro Zurich Santander Sul América Icatu Tokio Marine 4 th insurer in Brazil Others (1) In terms of 2017 life insurance reserves. Source: FFA (2) In terms of 2017 insurance premium income. Source: SUSEP 8

9 CNP ASSURANCES OWNERSHIP STRUCTURE Caisse des Dépôts 40.9% 6.3% Sopassure 36.3% 100% owned by the French State 30.7% 50.02% owned by La Banque Postale (1) and 49.98% by BPCE 34.6% 5.5% French State 1.1% 0.2% 0.9% 21.8% Free float 21.8% (2) Shareholder agreement 66.3% Relations between Caisse des Dépôts, Sopassure and the French State continue to be governed by a shareholder agreement until 31 December 2019 CNP Assurances Board of Directors: 41% of female directors, 24% of independent directors At 30 June 2018 (1) Indirectly 100% owned by the French State and Caisse des Dépôts (2) Institutional shareholders 18.0% (o/w North America 7.4%, UK and Ireland 4.3%, Continental Europe excl. France 3.8%, France 1.4%, Rest of the World 1.2%) Individual shareholders 3.8% 9

10 BREAKDOWN OF 2017 PREMIUM INCOME BY DISTRIBUTION CHANNEL Other France 16.5% Non-exclusive partnerships, Brokerage, B-to-B (Group Insurance) Other International 2.3% La Banque Postale 28.7% Exclusivity until end-2025 BPCE (savings/pensions) 21.6% Partnership until end-2022 with successive 3-year rollover options CNP Santander 2.2% Exclusivity until end bn 60% through exclusive distribution agreements CNP UniCredit Vita 8.1% Exclusivity until end-2024 Caixa Seguradora 16.4% Exclusivity until Feb (2) BPCE (personal risk/protection) 3.2% Exclusivity until end-2022 with successive 3-year rollover options (1) Amétis 1.0% Proprietary network (1) The distribution agreement with BPCE is described p.360 of our FY 2016 Registration Document: At the end of this seven-year period, BPCE will have the option of either renewing the agreements for a period of three years commencing 1 January 2023 or purchasing the insurance book represented by policies sold through the BPCE group at a mutually agreed price (2) Will be extended until Feb at the closing date of the new agreement signed in August

11 SOLID FINANCIAL PERFORMANCE PREMIUM INCOME ( bn) EBIT ( bn) CAGR: +1.1% CAGR: +4.3% M M 2018 NET PROFIT ( m) CAGR: +6.7% DIVIDEND PER SHARE ( ) CAGR: +1.5% ,030 1,080 1,130 1,200 1, M

12 ROBUST BALANCE SHEET THROUGH-THE-CYCLE POLICYHOLDER SURPLUS RESERVE (1) ( bn, % of French technical reserves) 1.3% 1.5% 1.9% % % % % % M 2018 NET TECHNICAL RESERVES (1) ( bn) M 2018 CONSOLIDATED SCR COVERAGE RATIO (%) IFRS EQUITY AND SUBORDINATED DEBT (% of total AUM) 6.47% 6.56% 6.63% 5.94% 6.16% 5.26% 5.52% 5.48% 1.61% 1.81% 1.88% 1.83% 1.98% 1.40% 1.57% 1.54% Sub Debt 150% 170% 185% 160% 192% 177% 190% 193% 3.70% 3.98% 4.08% 4.34% 4.35% 4.59% 4.73% 4.65% Equity M M 2018 (1) End of period 12

13 DIVERSIFIED FRANCHISE & BUSINESS MIX Main markets FRANCE 68% of Group Premiums 90% of Group Reserves 68% of Group EBIT 87% of Group SCR LATIN AMERICA 17% of Group Premiums 4% of Group Reserves 29% of Group EBIT 9% of Group SCR EUROPE EXCLUDING FRANCE 15% of Group Premiums 6% of Group Reserves 3% of Group EBIT 4% of Group SCR Main businesses Traditional (1) 58% of Premiums SAVINGS & PENSIONS PERSONAL RISK & PROTECTION Term Creditor Insurance 60% of Premiums Unit-Linked (1) 42% of Premiums Eurocroissance (1) 80% of Group Premiums 96% of Group Reserves 44% of Group EBIT (2) 20% of Group Premiums 4% of Group Reserves 56% of Group EBIT (2) Combined ratio of 81.2% Protection 27% of Premiums P&C and Health 13% of Premiums At 30 June 2018 (1) Traditional: guarantee of capital at any time. Unit-Linked: no guarantee of capital. Eurocroissance: total or partial guarantee of capital after 8 years (2) EBIT excluding own-funds portfolios 13

14 SUCCESSFUL TRACK-RECORD OF CNP AND CEF S PARTNERSHIP IN BRAZIL THROUGH CAIXA SEGUROS HOLDING PREMIUM INCOME - CNP S SHARE (R$bn) CAGR in R$: +18% CAGR in : +15% NEW BUSINESS VALUE - CNP S SHARE (1) (R$m) CAGR in R$: +16% CAGR in : +15% NET PROFIT - CNP S SHARE (R$m) CAGR in R$: +14% CAGR in : +10% DIVIDENDS - CNP S SHARE (R$m) CAGR in R$: +14% CAGR in : +11% , (1) Latin America new business value, including a marginal contribution from Argentina 14

15 A STRATEGY TO DEVELOP UNIT-LINKED PREMIUM INCOME (1) ( bn) Unit-Linked Traditional CAGR: +31% PROPORTION OF PREMIUM INCOME (1) REPRESENTED BY UNIT-LINKED (%) 19.7% 22.0% 27.1% 26.7% 38.3% CAGR: -4% MATHEMATICAL RESERVES (1) ( bn) CAGR: +14% PROPORTION OF RESERVES (1) REPRESENTED BY UNIT-LINKED (%) 14.1% 14.6% 15.1% 17.2% 19.6% Unit-Linked Traditional CAGR: +3% (1) Savings/Pensions segment

16 16 2. Profitability

17 H FINANCIAL AND BUSINESS PERFORMANCE ( m) H H Change Reported Change Like-for-Like (1) Premium income 16,955 16, % +6.6% BUSINESS PERFORMANCE APE 1,707 1,658 (3) +3.0% VNB (3) +6.2% APE margin 24.3% 23.6% (3) +0.7 pts - Total revenue 1,941 1, % +7.1% Administrative costs % +4.4% EARNINGS EBIT 1,499 1, % +7.9% Attributable net profit % +2.6% ROE 8.3% 8.4% -0.1 pts - Combined ratio (2) 81.2% 80.5% +0.7 pts - CASH FLOW Net operating free cash flow 1.18/share 0.91/share +29.7% - SOLVENCY Consolidated SCR coverage ratio 198% 190% (3) +8 pts - Consolidated MCR coverage ratio 341% 324% +17 pts - (3) (1) Average exchange rates: First-half 2018: Brazil: 1 = BRL 4.14; Argentina: 1 = ARS First-half 2017: Brazil: 1 = BRL 3.44; Argentina: 1 = ARS In the like-for-like comparatives, the contributions of CNP Luxembourg (Luxembourg) and Holding d Infrastructures Gazières (the vehicle for the investment in GRTgaz) have been excluded from the 2018 figures (2) Personal Risk/Protection segment (term creditor insurance, personal risk, health and property & casualty insurance) 17 (3) Data at 31 December 2017

18 H PREMIUM INCOME BY GEOGRAPHY PREMIUM INCOME ( m) 11, ,468 1,980 7,722 H , ,312 2,140 7,187 H Change -4.4% 2,527 2, ,571 2, H H Change Change +13.9% +41.3% 1, , ,524 1, H H Personal Risk/Protection Term Creditor Insurance Unit-linked Savings/Pensions Traditional Savings/Pensions 18

19 H VALUE OF NEW BUSINES BY GEOGRAPHY VALUE OF NEW BUSINESS AND APE MARGIN ( m, %) % % % % % % 2017/2 H /2 H /2 H Currency effect 19

20 H REVENUE BY GEOGRAPHY TOTAL REVENUE ( m) 1,918 1, Change Reported Like-for-Like +1.2% +7.1% +5.2% +7.5% -19.4% -19.5% % +11.9% +8.3% +8.3% Net insurance revenue (NIR) 1,474m Up 7.0% like-for-like H H Revenue from own-funds portfolios Europe excl. France NIR Latin America NIR France NIR 20

21 H ADMINISTRATIVE COSTS BY GEOGRAPHY ADMINISTRATIVE COSTS ( m) Change +2.1% Change Reported Like-for-Like Change +4.1% % +12.7% nm nm % +12.8% H H H H Youse Latin America excluding Youse Currency effect H H

22 H NET PROFIT BY SEGMENT Savings/Pensions Personal Risk/Protection Own-funds portfolios Premium income: 13,516m Premium income: 3,439m Total revenue: 655m Total revenue: 818m Total revenue: 467m Administrative costs: 186m Administrative costs: 210m Administrative costs: 45m EBIT EBIT EBIT 469m 608m 422m Attributable net profit Attributable net profit Attributable net profit 316m 271m 85m 22

23 H ATTRIBUTABLE NET PROFIT H (H1 2017) ( m) Own funds portfolios 1, , Personal Risk/ Protection Savings/ Pensions 469 EBIT Finance costs Income tax expense Equity accounted and non-controlling interests Fair value adjustments and net gains (losses) Non-recurring items Attributable net profit Net profit up 2.3% to 672 million Decrease in non-controlling interests mainly due to the negative currency effect in Brazil CNP Assurances stake in GRTgaz added 20m to equity accounted interests 23

24 H OPERATING FREE CASH FLOW H (H1 2017) ( m) MCEV operating profit Release of required capital from In-Force business Required capital for new business Net operating free cash flow Operating profit up by a strong 8.5% to 720m Greater capital release from In-Force business vs. H1 2017, when biometric and behavioural assumptions were revised Decrease in required capital for new business due to sharp rise in VNB 24

25 STEADY CASH FLOW GENERATION CREATING SIGNIFICANT FINANCIAL HEADROOM 10.2bn of cumulative cash flows (1) over the period , including 3.4bn added to free surplus 10.2bn Disposals 0.7bn Reduction in required capital 2.8bn 10.2bn Increase in free surplus 3.4bn Acquisitions 0.4bn Dividends paid 2.2bn MCEV Operating profit 6.6bn Organic growth 4.2bn Cash In Cash Out (1) Based on operating free cash flow as calculated for MCEV purposes, taking into account acquisitions and disposals of subsidiaries during the period 25

26 NET PROFIT, FREE CASH FLOW AND DIVIDEND-PAYING CAPACITY Given its role as both an OpCo and HoldCo, CNP Assurances SA s ability to pay dividends depends on its own cash flow generation, plus the upstream dividends from its subsidiaries ATTRIBUTABLE NET PROFIT ( m) OPERATING FREE CASH FLOW ( m) DIVIDEND-PAYING CAPACITY ( m) 1, , ,113 1, , Europe excluding France Latin America France Europe excluding France Latin America France Upstream dividend from Europe Upstream dividend from Latin America Net OFCF France 26

27 3. Investments & Asset-Liability Management

28 ASSET ALLOCATION AT END JUNE BN OF AUM EXCLUDING UL BOND PORTFOLIO BY MATURITY 13% 4% <1% Bonds Equities 56% 30% 83% Properties Others 12% 2% < 5 years 5 to 10 years 10 to 15 years > 15 years BOND PORTFOLIO BY TYPE OF ISSUER BOND PORTFOLIO BY RATING (1) 5% 16% Sovereigns Corporates 53% 20% 58% Banks Covered bonds 8% 17% 20% 1% 1% AAA AA A BBB High Yield Not Rated (1) Second-best rating: method consisting of using the second best rating awarded to an issue by the three leading agencies, S&P, Moody's and Fitch Unaudited management reporting data at 30 June

29 Yield (%) CNP Assurances - Investor Presentation - November 2018 INVESTMENT POLICY INVESTMENT FLOWS IN FIRST-HALF 2018 (%) BOND INVESTMENT FLOWS IN FIRST-HALF % 2% 12 % Bonds Equities Property and infrastructure Private equity % 1.2% Increased investment in equities % 81 % Average maturity (years) Sovereigns Banks Corporate excl. banks European bond portfolios: average H reinvestment rate of 1.1% Unaudited management reporting data 29

30 EXPOSURE TO GUARANTEED YIELDS Guaranteed yield on In-Force contracts reduced to 0.29% IN-FORCE 30 JUNE 2018 (31 DEC. 2017) 2.81% 2.96% NEW BUSINESS 30 JUNE 2018 (31 DEC. 2017) 1.14% 1.23% 0.29% 0.34% 0.02% 0.02% Average return on fixed-rate investments Average return on fixed-rate investments Average guaranteed yield Average guaranteed yield 12.3bn Policyholder Surplus Reserve at 30 June 2018, representing 5.5% of total technical reserves Unaudited management reporting data 30

31 LOW GUARANTEED YIELD ON LIABILITIES AND INCREASING SHARE OF UNIT-LINKED Breakdown of CNP Assurances liabilities by guaranteed yield: 73.4% 74.1% 73.8% H % 16.1% 16.6 % Unit-linked liabilities Liabilities without any guaranteed yield including protection 4.6% 4.1% 4.1% 5.3% 3.8% 3.6% 2.4% 1.9% 1.9% Liabilities with 0% to 2% guaranteed yield Liabilities with 2% to 4% guaranteed yield Liabilities with > 4% guaranteed yield CNP Assurances business model is mainly based on fee and underwriting earnings, as reflected by the breakdown of liabilities: (1) Fee earnings Underwriting earnings Spread earnings Unit-linked policies: 56bn Savings and pensions policies without any guaranteed yield: 186bn Savings and pensions policies with low guaranteed yield: 24bn Protection, personal risk, P&C and other reserves: 62bn Own funds and subordinated debt: 25bn Savings and pensions policies with high guaranteed yield: 8bn 74% 17% 9% (1) Liabilities with a guaranteed yield of more than 4% mainly concern Caixa Seguradora in Brazil, where interest rates are higher than in Europe 31

32 ACTIVE RATE MANAGEMENT PROVIDES A PROTECTION AGAINST ADVERSE RATE MOVEMENTS CNP Assurances - Investor Presentation - November 2018 Managing lower for longer interest rates Asset portfolio return projected over the next 10 years with cash-flows reinvested in 0.5%, 1% or 2% fixed-rate bonds Equity and property assumptions: 0% revenue (i.e. no dividends, no rents and no realized gains) Under this stressed scenario, the portfolio return would be 2.09% in 2018 vs. an average guaranteed yield across all policy liabilities of 0.29% at end June % 2.0% 1.5% Portfolio return assuming a 2% reinvestment rate 1.0% Portfolio return assuming a 1% reinvestment rate Portfolio return assuming a 0.5% reinvestment rate 0.5% Guaranteed yield 0.0% Based on CNP Assurances full perimeter. In-force business as of end-2017, surrenders and payments taken into account 32

33 CNP HAS SEVERAL BUFFERS TO COPE WITH FINANCIAL MARKET VOLATILITY Low contractually guaranteed yield Current French savings production has no contractually guaranteed yield (1) and the overall average guaranteed yield across all policy liabilities is 0.29% at end June 2018 At the end of each year, CNP Assurances has the full flexibility to decide the yield attributed to policyholders over and above guarantees (1.49% on average in 2017) 34.6bn IFRS unrealized gains (11.8% of total asset portfolio) at end June 2018 If necessary, gains can be realized to offset the impact of asset impairments or low interest rates By construction, at least 85% of market movements are pass-through to policyholders, with equity impact to shareholders being of second order 12.3bn Policyholder Surplus Reserve (5.5% of French technical reserves) at end June 2018 If necessary, amounts in the surplus reserve can be used to absorb investment losses (1) All new policies have 0% guaranteed yield, some old policies still exist with a positive guaranteed yield on top-up premiums. These old policies, which include a guaranteed yield, will progressively disappear due to lapses and deaths of policyholders 33

34 HEDGING STRATEGY Equity risk Stepped up equity hedging programme At 30 June 2018, portfolio of CAC 40 and Eurostoxx 50 index options (puts). Total notional amount: 10bn; average remaining life: 3.4 years; average strike prices: 3,078 pts (CAC 40) and 2,626 pts (Eurostoxx 50) Equity hedges (notional amount in bn) /12/ /06/2018 Interest rate hedges on asset portfolio Hedging programme pursued in order to protect against risk of an increase in interest rates At 30 June 2018, portfolio of caps on total notional amount of 68bn; average remaining life: 4 years; average strike price: 10-year euro swap rate plus 3.1% (vs. 3.3% at end-2017) Interest rate hedges on asset portfolio (average strike price) 3.3% 3.1% 31/12/ /06/2018 Unaudited management reporting data 34

35 4. Solvency

36 GROUP CAPITAL STRUCTURE UNDER IFRS IFRS EQUITY ( bn) Non-controlling interests Unrealised gains and others Undated subordinated notes Shareholders equity M 2018 Solid capital generation thanks to: Retained earnings Conservative dividend policy (payout ratio between 47% and 56% over the period) Non-controlling interests represent the share of equity in our subsidiaries detained by our banking partners (Caixa Econômica Federal in Brazil, Santander in Ireland, UniCredit in Italy) 36

37 SOLVENCY II GROUP SCR COVERAGE RATIO GROUP SCR COVERAGE RATIO (1) ( bn) SENSITIVITIES AT YEAR-END % % Interest Interest rates rates + 50bps +50bps Interest Interest rates rates - 50bps -50 bps Ultimate forward rate UFR - 50bps -50 bps Sovereign Sovereign spreads spreads + 50bps +50 bps Corporate spreads + 50bps +50 bps 12 pp (13 pp) (4 pp) (8 pp) 2 pp (2) (2) 30/06/2018 Eligible own funds 30/09/2018 SCR Share Share prices prices - 25% -25% Volatility Volatility adjustment adjustment 0 bps = 0 bp (7 pp) (3 pp) SCR coverage ratio down 5 percentage points during Q due to the BRL 4.65 bn payment to be made by CNP upon fulfilment of the various conditions precedent included in the new distribution agreement in Brazil, the effect of which was eased slightly by the favorable impact of market conditions The ratio at 30 September 2018 does not include the redemption at first call date of $500 million Tier 1 subordinated notes effective 18 October 2018 (1) Standard formula without applying transitional measures (except for grandfathering of subordinated debt) (2) After recalibration of the volatility adjustment 37

38 A COMFORTABLE SOLVENCY POSITION FOR ALL OUR SUBSIDIARIES At year-end 2017 Country Scope Eligible Own Funds ( bn) SCR ( bn) SCR Coverage Ratio Group CNP Assurances Group % France CNP Assurances SA % Brazil Caixa Seguradora (1) % Italy CNP UniCredit Vita % Ireland CNP Santander Insurance Life % Ireland CNP Santander Insurance Europe % The Group SCR coverage ratio is calculated: Taking into account 100% of each subsidiary s SCR, even for subsidiaries that are not wholly owned (Caixa Seguradora, CNP UniCredit Vita, CNP Santander Insurance) Without taking into account any surplus own funds for the main JVs over and above their contribution to the group SCR, which are not recognised by the supervisor at Group level ( 3.3bn including noncontrolling interests (2) or 24% of the Group SCR) (1) CNP Assurances applies Solvency II to Caixa Seguradora, without using the Brazilian solvency regulation, solely for the purpose of Group solvency calculations. Caixa Seguradora's SCR coverage ratio has no regulatory impact for the Brazilian insurance undertakings (2) Of which 2.1bn of surplus own funds in Brazil 38

39 GROUP CAPITAL STRUCTURE UNDER SOLVENCY II GROUP ELIGIBLE CAPITAL ( bn) % 4% 15% 12% 193% 7% 28% 23% % 134% 30/09/2018 % of own-funds % of SCR Tier 1 unrestricted Tier 1 restricted Tier 2 Tier 3 The Group s financial headroom is based on: high-quality eligible own funds 70% of own funds are Unrestricted Tier 1 no ancillary own funds its subordinated notes issuance capacity at 30 September bn of Tier 1 2.0bn of Tier 2, including 1.1bn of Tier 3 Data excluding the redemption at the first call date of the $500 million Tier 1 subordinated notes issue effective 18 October 2018 but including the BRL 4.65 billion payment to be made by CNP Assurances upon fulfilment of the various conditions precedent included in the new distribution agreement in Brazil 39

40 SOLVENCY II GROUP SCR SCR BY GEOGRAPHICAL AREA (%) SCR BY RISK (1) (%) Market risk 10% 5% France 10% 7% 6% 4% Life underwriting risk Health underwriting risk Latin America 54% Operational risk 86% Europe excl. France 20% Counterparty default risk Non-life underwriting risk 26% diversification benefit (2) At 31 December 2017 (1) Breakdown presented before diversification (2) Diversification benefit = [sum of net SCR excluding Operational Risk SCR - net BSCR]/sum of net SCR excluding Operational Risk SCR 40

41 SOLVENCY II GROUP MCR COVERAGE RATIO GROUP MCR COVERAGE RATIO ( bn) 341% 332% /06/2018 Eligible own funds MCR 30/09/2018 Consolidated MCR corresponds to the sum of the MCRs of all the Group s insurance companies Own funds eligible for inclusion in MCR coverage may be different to those included in SCR coverage due to capping rules: Tier 2 subordinated notes capped at 20% of MCR coverage (vs. 50% for SCR) Tier 3 subordinated notes not eligible for inclusion in MCR coverage (vs. 15% for SCR) Data excluding the redemption at the first call date of the $500 million Tier 1 subordinated notes issue effective 18 October 2018, but including the BRL 4.65 billion payment to be made by CNP Assurances upon fulfilment of the various conditions precedent included in the new distribution agreement in Brazil 41

42 RISK AND CAPITAL MANAGEMENT CNP Assurances - Investor Presentation - November 2018 Risk management of the Group takes into account SII impacts of all day-to-day management actions (underwriting policy, reinsurance program, asset allocation, hedging program, etc.) and the Board of Directors closely monitors SII coverage ratio, both at Group level and at legal entity level The Own Risk and Solvency Assessment (ORSA) is a core component of the Group s risk and capital management framework. ORSA is a 5-year prospective and stressed view of the SII ratio, and is therefore more conservative. The risk factors taken into account in ORSA include the Group's own risk factors (e.g. sovereign risk) over and above those identified for SCR purposes ORSA provides more stability in the medium term capital management compared to SII ratio as it includes more efficient countercyclical measures. ORSA results are presented for approval to CNP s Board of Directors and communicated to the Group s supervisor (ACPR) GROUP SCR COVERAGE RATIO GROUP MCR COVERAGE RATIO 331% 295% 280% 272% 300% 304% 323% 335% 324% 326% 341% 332% 192% 175% 165% 160% 177% 183% 193% 199% 190% 192% 198% 193% FY 2015 Q Q Q FY 2016 Q Q Q FY 2017 Q Q Q FY 2015 Q Q Q FY 2016 Q Q Q FY 2017 Q Q Q Group SCR coverage ratio 10-year EUR swap rate (bp) Group MCR coverage ratio 42

43 5. Rating & Funding

44 RECOGNIZED FINANCIAL STRENGTH MOODY S S&P A1 Stable outlook A Stable outlook CNP Assurances credit profile is supported by (1) the group s very strong market position in the French life insurance market, (2) a low liability risk profile thanks to a low guaranteed rate on traditional savings products, (3) a very stable level of profitability, as well as (4) a very good financial flexibility owing to a strong shareholder, Caisse des Dépôts et Consignations (Aa2 positive), which owned 40.8% of CNP s shares as of 31 December 2017 According to the French government, La Poste's banking subsidiary La Banque Postale may become the majority shareholder of insurer CNP Assurances by Prospectively, we view CNP Assurances as highly strategic to La Poste. Our view of CNP Assurances' stand-alone creditworthiness has improved thanks to its sustainably stronger capital position and the signing of a new long-term partnership in Brazil. Moody s highlights that the new distribution agreement with Brazil's Caixa Economica Federal is credit positive and that the expected change in shareholding structure has no credit impact. CDC and the government of France would remain key indirect shareholders in CNP, allowing it to retain its strong financial flexibility. We do not currently factor shareholder support considerations into CNP s ratings, and do not plan to change our approach once the new structure takes effect. CNP Assurances stand-alone rating has been upgraded by 1 notch (from A- to A) to consider the improvement of the Group s solvency position according to S&P s capital model, whereas the 1-notch uplift linked to Caisse des Dépôts support has been withdrawn, leaving the final rating unchanged at A

45 DEBT-TO-EQUITY RATIO IN LINE WITH PRUDENT STRATEGY DEBT-TO-EQUITY RATIO (1) (S&P, %) BENCHMARK BASED ON S&P FIGURES (FY 2016, %) H AXA CNP Swiss Life Allianz Aviva Aegon Source: Latest S&P full analysis of each company. DEBT-TO-EQUITY RATIO (2) (IFRS, %) BENCHMARK BASED ON IFRS FIGURES (FY 2017, %) H Allianz Swiss Life AXA CNP Aviva Aegon Source: CNP s estimation based on the latest annual consolidated accounts of each company (intangible assets excluding DAC) (1) DEBT-TO-EQUITY RATIO (S&P) Debt / (Economic Capital Available + Debt) (2) DEBT-TO-EQUITY RATIO (IFRS) Debt / (Equity - Intangible Assets + Debt) < 20% = positive [20% ; 40%] = neutral > 40% = negative 45

46 INTEREST COVER AT A SATISFACTORY LEVEL INTEREST COVER BENCHMARK BASED ON S&P FIGURES (FY 2016) 9.2x 9.2x 9.0x 8.9x 7.8x 7.3x 9.0x 9.5x 12.0x 10.0x 9.6x 7.3x 7.0x 6.2x H AXA Allianz Swiss Life CNP Aegon Aviva Source: Latest S&P full analysis of each company. INTEREST COVER (S&P) EBIT / Interest paid > 8x = positive [4x ; 8x] = neutral < 4x = negative 46

47 DECREASING FINANCE COSTS AND AVERAGE COST OF DEBT FINANCE COSTS ( m) AVERAGE COST OF DEBT (%) % 5.2% 5.0% % 4.4% H H Finance costs on subordinated notes classified in equity Finance costs on subordinated notes classified in debt Next potential call dates: $500m in July 2019 (6.875% coupon) and 750m in September 2020 (6% coupon) 47

48 MATURITIES AND CALL DATES OF SUBORDINATED NOTES 300m 7.375% 41NC21 1,000m 1.875% m PNC16 $500m 7.5% PNC18 $500m 6.875% PNC19 750m 6% 40NC20 700m 6.875% 41NC21 200m 23NC13 500m 4% PNC m 4.25% 45NC25 108m PNC26 750m 4.5% 47NC27 500m 4.75% PNC28 $500m 6% 49NC29 249m PNC11 75m PNC10 300m PNC09 160m 5.25% PNC36 45m PNC08 (1) Next potential call (July 2019) Tier 1 Tier 2 Tier 3 Latest issuance (June 2018) Nominal amounts at 31 October 2018 (1) Perpetual subordinated notes for which the first call date has already passed 48

49 DIVERSIFICATION OF FUNDING By currency By distribution 5% 12% 83% EUR GBP USD 16% 15% 70% Institutionnal Private placement Retail By structure By Solvency II Tiering 14% 14% 7% 35% 51% Dated Callable Perp Callable Bullet 35% 28% Tier 1 Grandfathered Tier 1 Tier 2 Grandfathered Tier 2 16% Tier 3 Nominal amounts at 31 October

50 SOLVENCY II SUBORDINATED NOTES ISSUANCE CAPACITY TIER 1 ( bn) TIER 2 & TIER 3 ( bn) Max = 20% of total Tier 1 Max = 50% of SCR Max = 15% of SCR 18.3 = 25% of unrestricted Tier Unrestricted Tier 1 Max. amount of Tier 1 debt Outstanding Tier 1 debt Tier 1 debt issuance capacity Group SCR Max. amount of Tier 2&3 debt Outstanding Tier 2&3 debt Tier 2&3 debt issuance capacity Tier 3 debt issuance capacity At 30 September 2018 Data excluding the redemption at the first call date of the $500 million Tier 1 subordinated notes issue effective 18 October 2018 but including the BRL 4.65 billion payment to be made by CNP Assurances upon fulfilment of the various conditions precedent included in the new distribution agreement in Brazil 50

51 6. Outlook

52 A STRATEGY TO CREATE LONG-TERM VALUE SHARE PRICE Total shareholder return with reinvested dividends Over the period December 2012 to June 2018 CNP Assurances: +16.1% per year insurance sector (1) : +13.0% per year Since 1 January 2018 CNP Assurances: +5.4% insurance sector (1) : -1.2% 31/12/ /06/2018 Value created MCEV PER SHARE An investment policy oriented to promote energy and ecological transition new green investments: 770m invested in first-half 2018 with a target of 5bn by reduction in the equity portfolio s carbon footprint: 0.28 teqco 2 / k (2) at 30 June 2018 with a target of 0.25 teqco 2 / k by year-end /12/ /06/2018 Value created Dividends Change (1) Stoxx Europe 600 Insurance index (2) CO 2 equivalent tonnes per thousand euros invested 52

53 2018 OBJECTIVE CNP Assurances has set the objective of achieving organic EBIT growth of at least 5% in 2018 compared to the 2017 baseline 53

54 BRAZIL: YOUSE, FIRST 100%-DIGITAL INSURANCE PLATFORM IN THE COUNTRY May- 16 June- July Aug- Sept- Oct Nov- 16 Dec- 16 Jan- 17 Feb- 17 Mar- 17 Apr- 17 May- 17 June- July Aug- Sept- Oct- Nov- Dec- Jan Feb- 18 Mar- 18 Apr- 18 May- June Number of contracts Cumulative written premiums (BRLm) Unaudited management reporting data R$500m written premiums after 2 years ~ 150,000 active policies 54

55 BRAZIL: NEW DISTRIBUTION AGREEMENT WITH CAIXA ECONÔMICA FEDERAL (1/2) Current distribution agreement of Caixa Seguros Holding New distribution agreement of New JV Duration of exclusivity New scope of exclusivity maintaining a very significant part of the current activity, with solid growth prospects Private pension plans (previdência) Consumer credit life insurance (prestamista) Life insurance (vida) 23 years (until 13 February 2041) Dynamic sector with double digit growth in 2016 and 2017 Almost 100% unit-linked products High growth within the CEF network, growing penetration rate Biometric risks (term life) with attractive margins Biometric risks (term life) with attractive margins Other insurance products Mortgage life insurance (hipotecario), credit (consórcio), savings products (capitalizaçao), P&C insurance, health (saúde), dental insurance (odonto) As part of the agreement, CNP agreed to waive the existing exclusive distribution rights of CSH for other insurance products, should Caixa Seguridade decide to transfer the distribution rights for these products to other companies 55

56 BRAZIL: NEW DISTRIBUTION AGREEMENT WITH CAIXA ECONÔMICA FEDERAL (2/2) CSH s in-force insurance portfolios (new scope of exclusivity) CSH will transfer to the New JV the in-force insurance portfolios for the products included in the scope of the new distribution agreement (vida, prestamista, previdência) CSH s in-force insurance portfolios (other products) The existing in-force insurance portfolios related to other products (hipotecario, consórcio, capitalizaçao, P&C insurance, saúde, odonto) and already underwritten by CSH will not be impacted by the agreement and will remain on CSH s balance sheet They could potentially be sold in the future, after discussions with CEF and with the companies that would then be selling these products. Timetable Closing subject to a number of condition precedents, including in particular its approval by the relevant regulatory and competition authorities No material change in commissions paid to distributors by CSH and New JV Other items Separate agreement with Caixa Seguridade and the insurance brokerage group Wiz regarding the terms of the future cooperation with Wiz, including in particular operational back office services provided by Wiz to CSH and to the New JV 56

57 NEW SCOPE OF EXCLUSIVITY IS BOTH SIZEABLE AND RAPIDLY EXPANDING 100% of CSH premium income (R$bn) % change (reported) CEF distribution channel within the scope of the new exclusive distribution agreement (vida, prestamista, previdência) % Other distribution channels outside CEF (brokerage, digital) (1) % CEF distribution channel out of the scope of the new exclusive distribution agreement (hipotecario, consórcio, capitalizaçao, P&C insurance, saúde, odonto) % Total % The new scope of exclusivity with Caixa Econômica Federal will cover life insurance, consumer credit life insurance and private pension plans (vida, prestamista, previdência) 1 Previsul, Odonto, Youse, etc. 57

58 CNP S GROUP STRUCTURE IN BRAZIL Current structure New structure 51.8% Voting rights & Economic rights Caixa Seguros Holding (CSH) 48.2% Voting rights & Economic rights 51% / 40% Voting rights / Economic rights New JV 49% / 60% Voting rights / Economic rights Distribution channels CEF Brokers Youse Distribution channels CEF Brokers Youse Private pension plans x Private pension plans x Consumer credit life insurance x Consumer credit life insurance x Mortgage credit life insurance x Life insurance x Life insurance x x x P&C Savings x x x x x 51.8% Voting rights & Economic rights Caixa Seguros Holding (CSH) 48.2% Voting rights & Economic rights Health x x Distribution channels CEF Brokers Youse Dental insurance x x All business lines x (1) x x Credit x 1 CNP agreed to waive the existing exclusive distribution rights of CSH for other insurance products should Caixa Seguridade decide to transfer the distribution rights for these products to other companies. The existing in-force insurance portfolios related to these products will remain on CSH s balance sheet. They could potentially be sold in the future, after discussions with CEF and with the companies that would then be selling these products 58

59 BRAZIL: STRONG FINANCING CAPACITIES (1/2) S2 Group excess capital (1) 13.4bn 51.8% CNP Caixa Seguros Holding (CSH) 100% CNP CNP Participações CSH currently sells all the products marketed inside and outside CEF s network, and will continue to sell the products marketed outside CEF s network CNP Participações holds Brazilian assets in order to allow the acquisition by CNP Group of interests in insurance companies, in line with the strategy to expand in Brazil and Latin America S2 contributive excess capital (1) 100% / 51.8% R$8.5bn / R$4.4bn Since 2016, CNP Participações has accumulated the dividends up streamed by CSH (around R$0.7bn each year) Brazilian solvency excess capital (1) R$3.5bn / R$1.8bn Assets invested in R$ (1) R$2.2bn 1 As of 30 June 2018 CNP applies S2 to the Brazilian insurance undertakings, without using the Brazilian solvency regulation, solely for the purpose of CNP Group solvency calculations. The SCR coverage ratio has no regulatory impact for the Brazilian insurance undertakings. 59

60 BRAZIL: STRONG FINANCING CAPACITIES (2/2) Price R$4.65bn (equivalent to 0.96bn on 28 August 2018) (1) fixed cash payment at closing date for the exclusive rights over No earn-out nor claw back components Expected return on investment in excess of 15% Deal expected to be funded by internal resources Impact on CNP s consolidated SCR coverage ratio at around 8 percentage points Financing Group s overall capital position still very strong No consequences on CNP s capacity to pay a regular dividend Currency risk partly mitigated by CNP s existing resources in R$ and expected R$ cash generation until closing Note: All amounts are attributable to CNP Assurances 1 BRL/EUR exchange rate of 4.84 on 28 August

61 90% OF THE GROUP S ATTRIBUTABLE NET PROFIT IS ALREADY SECURED CNP Assurances - Investor Presentation - November 2018 Economic perimeter already secured Indicatively, the new agreement allows to secure an economic perimeter (1) which corresponded, for the financial year 2017, to approximately: 2017 (Group s share) Secured economic perimeter (Brazilian level) Secured economic perimeter (Group level) Premium income Value of new business Attributable net profit 70% 60% 50% 95% 90% 90% Economic perimeter not included in the new agreement The evolution of the contribution of the remainder of the business related to CEF (hipotecario, consórcio, capitalizaçao, P&C insurance, saúde, odonto) to the Group s financial metrics will depend on: the potential transfer of the distribution rights for these products to other companies chosen by Caixa Seguridade the performance of the in-force insurance portfolios on CSH s balance sheet 1 Taking into account the new exclusivity perimeter and the reduced economic rights for CNP compared to the current situation, and including business written through other distribution channels outside CEF (brokerage, digital) 61

62 INVESTOR CALENDAR Q Q Q premium income and profit 21 Feb. 7:30 am Annual General Meeting 18 April First-quarter 2019 results indicators 16 May 7:30 am First-half 2019 premium income and profit 29 July 7:30 am INVESTOR AND ANALYST RELATIONS Vincent Damas I +33 (0) Jean-Yves Icole I +33 (0) infofi@cnp.fr or debtir@cnp.fr Typhaine Lissot I +33 (0) Julien Rouch I +33 (0)

63 Appendices 63

64 MAIN CHARACTERISTICS OF FRENCH SAVINGS PRODUCTS Tax change on January 1 st, 2018 Bank Deposits & Taxable Passbooks Tax Free Passbooks e.g. Livret A Stocks, Bonds & Mutual Funds Life Insurance Properties % of French household wealth 8% ( 0.9tn) 5% ( 0.6tn) 12% ( 1.4tn) 17% ( 1.9tn) 58% ( 6.6tn) Maximum amount per person Possibility to convert into annuities Unlimited 23k Unlimited Unlimited Unlimited No No No Yes No Wealth tax [0.5% to 1.5%] None None None None Yes, above 1.3m of properties per household Inheritance tax [0% to 60%] Yes Yes Yes None below 152k per beneficiary (with illimited # of beneficiaries) Yes Income tax [0% to 45%] & Social tax [17.2%] 30% flat tax 0% 30% flat tax 30% flat tax before 8 years 17.2% to 30% after 8 years (1) 17.2% to 62.2% Guarantee of capital Yes Yes None Traditional: guarantee at any time Unit-linked: optional guarantee in case of death, disability or survival None Liquidity Fully liquid Fully liquid Depending on capital markets liquidity Fully liquid Illiquid Simplified description for illustration purpose only. Source: INSEE and Banque de France (1) 17.2% for the part of annual gains below 4.6k for a single person ( 9.2k for a couple) 24.7% for premiums written before 2018 or with an AUM below 150k for a single person 30% flat tax for premiums written after 2018 and with an AUM above 150k for a single person, for the fraction of AUM above this threshold 64

65 Inheritance amount (in thousand euros) CNP Assurances - Investor Presentation - November 2018 FOR FRENCH SAVERS, LIFE INSURANCE IS THE BEST WAY TO LIMIT INHERITANCE TAX Inheritance tax scale 45% % 20% 40% 30% 20% 45% 60% 0% 0% 0% 0% Life insurance for any beneficiary Inheritance tax for a child Inheritance tax for a brother / a sister Inheritance tax for a distant relative 60% 45% 40% 35% 31.25% 30% 20% 15% 10% 5% 0% Average tax rate for 150k of inheritance amount: 0% 5% 39% 59% Simplified description for illustration purpose only. 65

66 A GRADUAL DECREASE OF FRENCH CORPORATE TAX RATE French corporate tax rate 43.3% 33.3% 33.3% 31.0% -8.3 pts 28.0% 26.5% 25.0% The finance law for 2017 provided for a gradual decrease of French corporate tax rate from 33.3% to 28% between 2018 and 2020 The finance law for 2018 extends the decrease from 28% to 25% between 2020 and 2022 Simplified description of corporate tax rate for large companies for illustration purpose only. Source: French finance law 66

67 FRENCH LIFE INSURANCE MARKET KEY FIGURES PREMIUM INCOME ( bn) WITHDRAWALS ( bn) Unit-Linked Unit-Linked Traditional Traditional NET INFLOWS ( bn) Unit-Linked Traditional MATHEMATICAL RESERVES ( bn) 1,494 1,549 1,591 1, ,234 1,267 1,287 1,297 Unit-Linked Traditional Source: FFA 67

68 FRENCH MORTGAGE MARKET KEY FIGURES OUTSTANDING MORTGAGE LOANS ( bn) CAGR: +3.3% ANNUAL VOLUME OF NEW MORTGAGE LOANS ( bn) Source: Banque de France, ACPR Excluding mortgage renegotiations

69 BRAZILIAN INSURANCE MARKET KEY FIGURES PREMIUM INCOME (R$bn) 13 CAGR: +18% CAGR: +14% CAGR: +13% P&C insurance Life insurance Term creditor insurance Source: Caixa Seguradora 69

70 Brazil Chile Spain Germany USA Italy Switzerland Japan France Netherlands UK South Korea South Africa Hong-Kong Taïwan Brazil Chile South Africa Spain Italy Germany Japan France South Korea UK USA Netherlands Taïwan Switzerland Hong-Kong CNP Assurances - Investor Presentation - November 2018 INSURANCE PENETRATION IN THE WORLD INSURANCE PREMIUMS / GDP (%, 2017) INSURANCE PREMIUMS PER CAPITA ($, 2017) 21 8, , ,312 2,660 2,688 1,169 2, ,519 1, , ,446 3,522 1,999 2,222 1,224 1,523 4,216 3,811 1,674 2,873 2, , ,716 4,998 3,522 6,756 4,195 3,289 1, Life business Non-life business Source: Swiss RE Institute, World insurance in 2017, No. 3 (2018) 70

71 GROUP STRUCTURE FY 2017 ( bn) CNP Assurances SA Premium Income: 22.9 Balance Sheet: Main French Entities Main Foreign Entities % of Ownership 65% MF Prevoyance 40% Arial CNP Assurances 100% CNP Caution 57.5% CNP UniCredit Vita 50.1% CNP CIH 51.0% CNP Santander 51.75% Caixa Seguradora 100% CNP Partners Foot Print France France France Italy Cyprus 12 countries in Europe Brazil Spain and Italy Premium Income Balance Sheet The Group issues bonds through CNP Assurances SA which is the listed entity and the main operating company of the Group (~80% of the consolidated balance sheet) Bonds are not issued through a pure holding company nor a SPV No senior bond outstanding within the capital structure 71

72 H NET PROFIT AND ROE BY GEOGRAPHY/SUBSIDIARY ( m) GROUP FRANCE CAIXA SEGURADORA OTHER LATIN AMERICA CNP SANTANDER INSURANCE CNP UNICREDIT VITA OTHER EUROPE EXCL. FRANCE Premium income 16,955 11,460 2, , Period-end technical reserves net of reinsurance 314, ,169 14, ,699 12,767 2,887 Total revenue 1,941 1, Administrative costs EBIT 1,499 1, Finance costs (122) (122) (1) 0 Income tax expense (495) (295) (186) (2) (4) (5) (3) Non-controlling and equity-accounted interests Fair value adjustments and net gains (losses) (123) 21 (121) (1) (14) (5) (3) Non-recurring items (209) (209) Attributable net profit (5) ROE 8.3% 7.5% 18.2% 4.9% 72

73 DISTRIBUTION AGREEMENTS WITH BPCE AND LA BANQUE POSTALE BPCE La Banque Postale (LBP) Expiry date Savings/ Pensions End-2022, with successive 3-year rollover options 2017 premium income: 6.9bn Top-up premiums: 3.7bn Transfers from traditional savings products ( Fourgous transfers): 1.8bn Inward reinsurance: 1.4bn Strong growth in unit-linked new money (up 23%) Technical reserves at end-2017: 122bn before reinsurance 110bn net of reinsurance (10% ceded to Natixis Assurances) Marketing campaigns have driven a gradual increase in linked liabilities as a percentage of total technical reserves Outlook All new business is written by Natixis Assurances, while CNP Assurances reinsures 40% of business written up until 2019 CNP Assurances continues to manage in-force business and top-up premiums Erosion of technical reserves will be very gradual thanks to top-up premiums Action will continue to refocus technical reserves and new money on unit-linked contracts End premium income: 9.0 billion Top-up premiums: 4.4bn Transfers from traditional savings products ( Fourgous transfers/transfers to Eurocroissance): 1.4bn New business: 3.2bn Sharp rise in new money invested in unit-linked contracts and Eurocroissance funds (up 25%) Technical reserves at end-2017: 127bn Marketing campaigns have driven a gradual increase in linked liabilities as a percentage of total technical reserves Outlook Very strong demand for the Eurocroissance fund launched as an alternative to traditional savings funds, with option to make transfers from GMO or Ascendo contract to Cachemire 2 (Eurocroissance offers a capital guarantee on 80% of the investment, subject to 12-year investment period) Action will continue to refocus technical reserves and new money on unit-linked contracts and Eurocroissance funds Personal Risk/ Protection 2017 premium income: 1.0bn Extension of Term Creditor Insurance partnership with BPCE to include the Banques Populaires and Crédit Foncier networks Group contracts realigned, and networks supported in applying Bourquin amendment giving policyholders an annual right to terminate their policy 2017 premium income: 0.2bn New term creditor insurance offer launched in October 2016, underwritten directly by CNP Assurances and reinsured by LBPP under 5% quota-share treaty Term creditor insurance offer extended to include BPE customers Group contracts realigned, and networks supported in applying Bourquin amendment giving policyholders an annual right to terminate their policy 73