FULL YEAR 2018 RESULTS Analysts Conference Call 15 March 2019

Transcription

1 FULL YEAR 2018 RESULTS Analysts Conference Call 15 March 2019

2 C Key messages SIGNIFICANT INCREASE IN THE NET INCOME 14,3bn Premium Income (+4.0%) 354m Insurance Economic Operating Income 450m Net Income (+54%) Strong increase in both P&C and L&H insurances Economic operating income at 298m Realised capital gains from the sale of the Window building in La Défense 2

3 C C C C Key messages FINANCIAL STRENGTH 540m Mutual Certificates outstanding 8.9bn IFRS Group s equity 167% Solvency Ratio 104m of mutual certificates issued in 2018 Increase in core IFRS equity IFS rating confirmed: A- Positive, Fitch Ratings 3

4 FY 2018 RESULTS 1. Business performance 2. Financial strength 3. Appendices 4

5 Business performance INCREASE IN PREMIUM INCOME Total premium income Premium income breakdown +4.0% 14.3 bn Premium income In millions of euros 31/12/17 Proforma 31/12/18 Like-for-like 13.7 bn P&C 7,196 7, % France 5,511 5, % International 1,685 1, % L&H 6,368 6, % 31/12/17 proforma 31/12/18 France 5,555 5, % International % Total Insurance 13,564 14, % Financial businesses % ABR : assurance de biens et responsabilité AP : assurance de personnes Total Groupama 13,711 14, % 5

6 Business performance INCREASE IN FRANCE AND OUTSIDE FRANCE Premium income France Premium income International International premium income breakdown +4,4% 11.6bn In millions of euros 31/12/18 Like-for-like 11.1bn +1,6% Italy 1, % 2.50bn 2.54bn CEEC (Hungary, Romania, Bulgaria) % Other countries (1) % Total Insurance - International 2, % 31/12/17 31/12/18 31/12/17 proforma 31/12/18 China (2) % (1) mainly Turkey and Greece (2) Equity method accounted entity (50% of Groupama AVIC owned by Groupama) 6

7 Business performance LIFE & HEALTH INSURANCE L&H Premium income +5.3% Premium income breakdown L&H - France Premium income breakdown L&H - International 6.4 bn 6.7 bn Savings & pensions: 36.2% - o/w Euros: 20.6% - o/w UL: 15.5% Protection 23.4% Savings & pensions 64.5% Others 7,4% 31/12/18 31/12/18 31/12/17 31/12/18 Protection 20.5% Health 35.9% Health 12.1% 7

8 Business performance SAVINGS & PENSIONS IN FRANCE Share of unit-linked in revenue, individual savings & pensions (France) Share of unit-linked in individual savings reserves (France) Financial Leeway (Groupama Gan Vie) 39.3% 41.6% Inforce business 2.1% +100 bp 29.9% 28.1% 25.8% 25.3% 1.1% 31/12/ % 13% 12.2% 11.8% Groupama Gan Vie Market (FFA) 7.1% 9.0% New business 1.7% 31/12/ bp 0% No guaranted rate

9 Business performance PROPERTY & CASUALTY INSURANCE P&C Premium income +2.7% 7.4bn 7.2bn Premium income breakdown P&C - France Agricultural insurance 17.7% Others 7.1% 31/12/18 Companies & local authorities 14.2% Premium income breakdown P&C - International Agricultural insurance 6.9% Others 3.7% 31/12/18 31/12/17 31/12/18 Companies & local authorities 15.5% Personal and Professional: 59.7% - o/w motor insurance: 29.5% - o/w home insurance:19.3% Personal and Professional: 75.2% - o/w motor insurance: 62.2% - o/w home insurance:11.8% 9

10 Business performance NON-LIFE COMBINED RATIO Non-life combined ratio Group Non-life combined ratio France Historical data - Group Non-life combined ratio 98.9% 99.3% 98.8% 98.6% 102.6% 100.8% 100.3% Net claim ratio Net cost ratio 70.9% 71.6% 31/12/17 31/12/18 Non-life combined ratio International 99.0% 99.2% 98.9% 99.3% 28.0% 27.7% 31/12/17 31/12/ % 102.6% 31/12/17 31/12/

11 Group results ECONOMIC OPERATING INCOME Operating income P&C Operating income Total Insurance Breakdown of Groupama operating income In m France Int l Total P&C - 10m 31/12/ m 354m In m 31/12/17 31/12/18 31/12/ Insurance Operating income L&H Financial activities In m GGVIE France Other entities Total Int l Total L&H 31/12/ /12/ /12/17 31/12/18 L&H P&C Holdings TOTAL

12 Group results STRONG INCREASE IN NET INCOME Net income Breakdown of Groupama net income +54.0% 450m In m 31/12/17 31/12/18 Economic operating income Net realised capital gains (1) Net profit from disposal activities (2) m Long-term impairment losses on financial instrument (1) -7-7 Gains or losses on financial assets booked at fair value (1) /12/17 31/12/18 Financing expenses Goodwill impairment Other costs and income Net income (1) amounts net of profit sharing and tax (2) of which ICADE in

13 FY 2018 RESULTS 1. Business performance 2. Financial strength 3. Appendices 13

14 Balance sheet ASSET BREAKDOWN IN LINE WITH OUR TARGET Asset portfolio* Asset portfolio breakdown* Unrealised capital gains 75.6bn 73.7bn Others 2.3% Equities 5.8% Cash available 4.8% In bn 31/12/17 31/12/18 Property 5.6% Fixed income /12/18 Equities Property /12/17 31/12/18 * Fair value, excluding unit linked, repurchase agreements and minorities Fixed income 81.4% Total

15 Balance sheet RESPONSIBLE INVESTOR Financing the real economy Property and forest assets Groupama s commitments Nearly 1.8 billion commitment: private equity, loan funds, transportation infrastructure, energyenvironment, commercial real estate projects 21,000 ha of sustainably managed forests allowing to store 10 Mt of carbon Gradual withdrawal from any company whose turnover is more than 30% coal-derivated No investment in companies whose oil sands represent more than 15% of total reserves of which 500 million commitment in support of major infrastructure projects Almost half directly dedicated to finance the energy transition Green bonds Nearly 250 million outstanding amount of green or socially responsible bonds Investments of 1 billion over 3 years to finance the energy transition 15

16 Balance sheet STABLE GROUP S EQUITY IFRS Group s equity (in m) Change in IFRS Group s equity (in m) subordinated debts revaluation reserve 8.9bn 8.9bn 1,099 1,099 1,780 1,285 8, ,884 core Group's equity 6,033 6,501 31/12/ /12/2018 * Core Group s equity: initial capital, retained earnings Group's equity 31/12/2017 Revaluation reserve Mutual Certificates Net Income Others Group's equity 31/12/

17 Balance sheet STRONG SOLVENCY RATIO Solvency ratio with and without transitional measure In m Solvency ratio roll-forward ratio w/o transitional measure eligible own funds 174% % % % % +4 bp +2 bp Group strategy: +15 bp +9 bp -16 bp -5 bp 167% capital requirement (SCR) 5.2 w/o transitional measure 31/12/ with transitional measure 5.6 w/o transitional measure 31/12/ with transitional measure 31/12/2017 Results Mutual Certificates Subordinated Debt Market environment Others 31/12/

18 Solvabilité Groupe CONTRIBUTION TO SCR, ELIGIBLE OWN FUNDS AND SENSITIVITIES Contribution to SCR by risk 21% 9% 10% 7% At 31/12/18 w/o diversification effect Market risk 8% Counterparty default risk Life underwriting risk Health underwriting risk Non-life underwriting risk Operational risk 45% Tier 2 Tier 1 Eligible Own Funds (1) 13% 87% 31/12/2018 (1) Scope w/o financial activities o/w «grandfathered» Sub. Debts (4% of EOF) o/w «grandfathered» sub. Debts (10.5% of EOF) o/w mutual certificates (4.2% of EOF) interest rate -50 bp interest rate +50 bp equity markets -25% equity markets +25% corporate spreads + 75 bp Sensitivities 31/12/18-19 bp -11 bp +13 bp + 9 bp +5 bp 18

19 FY 2018 RESULTS 1. Business performance 2. Financial strength 3. Appendices Ranking Asset portfolios Subordinated debts 19

20 Appendices RANKING IN FRANCE MAJ 9 TH 1 ST 1 ST 1 ST MULTI-LINE INSURER IN AGRICULTURAL INSURANCE (% of total premiums) INSURER OF LOCAL AUTHORITIES (number of towns insured) IN INDIVIDUAL HEALTH (revenue) 3 RD Property & Casualty insurer 13 TH Life & Health insurer 2 ND 2 ND 4 TH 6.5 MILLIONS IN INDIVIDUAL PROTECTION (revenue) Sources: Groupama, Argus de l Assurance, FFA IN HOME INSURANCE (revenue) IN MOTOR INSURANCE (revenue) MEMBERS AND CUSTOMERS 25,000 EMPLOYEES 20

21 Appendices RANKING IN THE INTERNATIONAL MARKETS 3 major markets 9 Italy Romania Hungary COUNTRIES OUTSIDE FRANCE 9 th insurer in non life 4 th insurer 4 th insurer in non life 1 st player in bancassurance with the partnership with OTP Bank 5.5 MILLIONS CUSTOMERS Other markets 7,000 Turkey Greece Bulgaria Slovakia Tunisia China EMPLOYEES 21

22 Appendices FIXED INCOME PORTFOLIO AT 31/12/2018 MARKET VALUE Breakdown by type of issuer Breakdown by issuer s rating Breakdown by subordination 18.3% 15.8% 1.4% 64.5% Sovereign debts Corporate debts, non financial Financial debts Others 26.6% 20.4% 3.0% 5.6% 44.4% AAA AA A BBB < BBB & NR 17.3% 10.4% 2.4% 69.8% Senior Covered Subordinated Others o/w Italy 22.2% Sovereign debts 6.4% Breakdown by geographic area o/w France 56.7% "Core" (France, Germany, Netherlands) 35.7% o/w Spain Other zone countries 57.9% 8.1% o/w Italy Rest of the world 2.3% o/w Spain 1.7% Corporate debts, non financial 30.2% 11.5% 58.2% o/w France 39.1% 22

23 Appendices EXPOSURE TO ZONE SOVEREIGN DEBTS 31/12/17 31/12/18 In m Cost value gross amount Fair value gross amount Unrealised capital gains or losses gross amount Unrealised capital gains or losses net amount* Cost value gross amount Fair value gross amount Unrealised capital gains or losses gross amount Unrealised capital gains or losses net amount Spain Greece - - Ireland Italy Portugal Total

24 Appendices EQUITY PORTFOLIO AT 31/12/2018 Breakdown by geographical area Market value 31/12/18 Europe o/w GIIPS 77.2% 11.8% North America 16.7% Rest of the world 6.1% Total Equity Portfolio (excl. strategic shareholdings) 100.0% Issuer breakdown Market value 31/12/18 Consumer goods, cyclical 18.3% Industrials 15.3% Commodities 4.4% Energy 5.1% Health 10.2% Utilities 3.6% Consumer goods, non cyclical 6.9% Financials 20.7% Technology 11.3% Telecommunications 4.1% Others 0.2% Total Equity Portfolio (excl. strategic shareholdings) 100.0% 24

25 Appendices PROPERTY PORTFOLIO AT 31/12/2018 Breakdown by geographical area Market value 31/12/2018 Paris 75% Paris area 20% Province 5% Breakdown by nature Market value 31/12/2018 Commercial 82% Résidential 15% Forests 3% Total property portfolio (France) 100% Total property portfolio (France) 100% 25

26 Appendices SUBORDINATED DEBTS: MATURITY / CALL DATE BREAKDOWN dated subordinated debt 1,100 m perpetual subordinated debt 500 m 6.375% Perp NC m 500 m 7.875% 2039 NC 19 6% Bullet due 2027 (10-yrs) 3.375% Bullet due 2028 (10-yrs) Type Outstanding amount as at 31/12/2018 ( m) Coupon Call date Maturity date S2 treatment IFRS treatment TSR % 27/10/ /10/2039 Tier 2 (grandfathering) Financial debts TSDI 1, % 28/05/2024 Perpetual Tier 1 (grandfathering) Own funds TSR 650 6% N/A 23/01/2027 Tier 2 Financial debts TSR % N/A 24/09/2028 Tier 2 Financial debts 26

27 GROUPAMA CONTACTS Cyril Roux Group Chief Financial Officer Sylvain Burel Group Communications Director Investor Relations Yvette Baudron Valérie Buffard valerie.buffard@groupama.com Groupama Assurances Mutuelles 8 10 rue d Astorg Paris cedex 08 -France