PRESIDENT S STATEMENT

Transcription

1 ANNUAL REPORT 2009

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3 PRESIDENT S STATEMENT Quatrem is stepping up its business development through an ambitious strategy and, thanks to the energy of its employees and the support of its distributor partners, the company has achieved successful sales results. Quatrem s sales activity was very satisfactory in 2009 with premiums rising 3,7% to 1,223.8 million, a level that more than compensated for the one-time single premium of 140 million recorded at the end of Our growth was well-balanced, with health, life and disability insurance developing steadily at around 15% and pensions climbing over 20%, not including the single premiums in 2008 and Net profit soared by 89% to 21 million. Before corporate income tax, impairment provisions on financial assets and a final charge of 28 million related to hedging against a fall in share value, profit surpassed 100 million. Christian Strulovici President of the Management Board of Quatrem 2010 will be a special year for Quatrem as the company, which began operations in October 2000, will celebrate its tenth anniversary. The year will also be marked by the launch of our third business plan. In addition to developing the strategies laid out in the previous plans, this plan will inaugurate «Quatrem of tomorrow» which will establish the company s position as the exclusive provider of broker-distributed products in the Malakoff Médéric group, of which Quatrem has been a wholly-owned subsidiary since June As our company heads into a new decade, we must keep in mind a key aspect of our enterprise: business distributor partners are at the heart of our activity. They are our number one clients. Brokers and tied agents have a right to demand quality management and that provided by Quatrem is certainly highly regarded since distributors have ranked us second amongst their preferred employee benefits suppliers 1. Based on recent observations, I am convinced that Quatrem s employees will succeed in their new environment and will contribute, alongside their distributor partners, to the continued development of employee benefits. (1) The 2009 Image and Quality survey in partnership with Golder & Partners.

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5 04. QUATREM, in a nutshell A front-ranking employee benefits player 06. QUATREM, organisation Dedicated teams 08. QUATREM, 2009 financial review A year of successes 10. QUATREM, partners Strong ties with brokers and agents 12. QUATREM, business plan Quality plan to support sales growth 14. QUATREM, products Meeting the diverse needs of all customers 16. QUATREM, market Group pension plans: a major challenge 18. QUATREM, outlook Sights remain high for 2010!

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7 QUATREM, in a nutshell A FRONT-RANKING EMPLOYEE BENEFITS PLAYER Quatrem is the product of the profitable, original partnership between two supplementary employee benefits and healthcare insurance groups: Médéric (renamed Malakoff Médéric on 1 July 2008) and MMA. Since June 2010, the company has been a wholly-owned subsidiary of Malakoff Médéric. Quatrem is governed by the French Insurance Code and is dedicated to supplying employee benefits through distributors. ONE VOCATION: EMPLOYEE BENEFITS DISTRI- BUTED THROUGH BROKERS AND AGENTS Quatrem distributes its products via various channels: mainly brokers, MMA tied agents and several other partners who benefit from Quatrem s personalised support in their development. In total, Quatrem products are distributed regularly by over 300 employee benefits specialists and on a more occasional basis by an additional 200 distributors. Since its creation in 2000, Quatrem has developed steadily with an average expansion of 13% per year, fuelled by dynamic internal growth averaging 10% per year and the acquisition of diverse portfolios. Quatrem s products are split between two main sectors: i) life, disability and health insurance and ii) employee savings and pension plans. Today, thanks to a pro-active strategy, Quatrem is one of the leaders in employee benefits insurance for businesses. KEY STRENGTH: SPECIALISATION Quatrem s specialisation in employee benefits insurance enables it to continually develop the professional status of its teams by offering customers and business referral partners alike a degree of proximity that is unique to the market. SOUND FINANCIAL POSITION Thanks to its rigorous management, its structurally positive cash fl ows and the involvement of Malakoff Médéric, Quatrem has a remarkably sound financial position. Its 584,5 million in shareholders equity coupled with a prudent provisions policy for risks on both the liabilities side (technical reserves, equalization reserves, policyholder surplus reserves) and the assets side (impairment provisions) represent additional safeguards. MALAKOFF MÉDÉRIC in 2009 Combined key figures for personal insurance Premiums: 3.3 billion Shareholders equity - insurance: 3 billion Technical reserves: 12.5 billion Portfolio of policyholders: 3.2 million employees and 1 million individuals Employees: 6,500 MMA in 2009 MMA premiums: 5.9 billion Total shareholders equity: 3.5 billion Technical reserves: 27 billion Portfolio of policyholders: 3.2 million Employees: 12,205

8 MANAGEMENT BOARD at 1 June 2010 Christian STRULOVICI, President Alain QUIBEUF, General Manager Michel PARPIROLLES Alain SALIOU SUPERVISORY BOARD at 20 May 2010 Pierre DESCHAMPS President Christian BAUDON First Vice-President Hubert COURAU Second Vice-President Jean-Luc COLIN Denis COLOMBIER Claude COUDRY Roland JUNGES Philippe-Jean LECAS MALAKOFF MÉDÉRIC ASSURANCES represented by: Pierre SERVANT MÉDÉRIC Prévoyance represented by: Dominique JANI MMA IARD Assurances Mutuelles represented by: Jean-Michel PESCHEUX MMA VIE SA represented by: Bruno ODOUX page 06

9 QUATREM, organisation DEDICATED TEAMS To guarantee the brokers and agents privileged access to specialists, Quatrem is organised around a number of different business lines. This is the most effective way of ensuring unrivalled responsiveness and reliability in the employee benefits market. Quatrem advisers are renowned experts in each of their fields. Christian STRULOVICI President of the Management Board LA DIRECTION OPÉRATIONNELLE AU 01/06/2010 Hugues MOUTARDE Business and quality planning Michel PARPIROLLES Advisor to the President Jean-Marc NICOLAS Financial director Alain SALIOU Operations and resources management Christian LOTHORE Deputy head of operations and resources management Jean-Bernard GENEZAY Customer transactions Rose-Marthe FRANCIETTA Human resources Frédéric AUBEY Organisation and IT Alain QUIBEUF General Manager Business development Claude RENIE Deputy head of business development Stéphane LOUARD Brokerage Anne BIHOUEE Partner network Philippe BERNARD Underwriting Bruno COSQUER Marketing and Communication Christian GOMMES Technical management Nathalie MATTAN Technical research, statistics and reinsurance Jean-Pierre DESFARGE Finance, back offi ce and cash management Anne POTIEZ Legal and tax affairs Eric DUBOIS Oversight and control Gérard TISSOT Management control Eric DUBOIS Audit and delegated management

10 Key figures for th largest employee benefits company in France 3rd largest player in corporate life and disability insurance Premiums: 1,223.8 million Shareholders equity: million Assets representing technical reserves: 5.35 billion Regulatory solvency margin: 179% Shareholders: 80 % MALAKOFF MÉDÉRIC and 20 % MMA, 100 % MALAKOFF MÉDÉRIC since June 2010 Client portfolio: 51,200 companies Policyholders: 2 million Employees: 502 page 08

11 QUATREM, 2009 financial review A YEAR OF SUCCESSES Quatrem confirmed its vibrancy in Invited to participate in almost all large calls for tender, Quatrem s premiums have almosttripled in ten years, reaching 1,223.8 million in At end-2009, shareholders equity stood at million, the coverage rate for the regulatory solvency margin was 179% (including unrealised gains) and, despite a very prudent risk provisions policy, net profit for the year came in at 21 million. After the link-ups with Winterthur in 2002 and Aviva in 2003, Quatrem integrated in 2008 AZUR s employee benefits team and portfolio, setting up an Eastern France regional division which has been fully operational since the beginning of With this move, the company has taken on a new dimension and consolidated its position as a key player in the employee benefits market. LIFE, DISABILITY AND HEALTH INSURANCE In April 2009, Quatrem, France s third largest player in corporate life and disability insurance, launched a new version of its multi-network standard offering: Qualige for brokers and Extandem for MMA agents. The basic cover now includes alternative medicine and dental implants and gum treatment at no additional cost. This new generation of the Extandem and Qualige offerings was awarded the 2009 «Label d Excellence» for health insurance by Dossiers de l Epargne. EMPLOYEE SAVINGS AND PENSION PLANS To round out its supplementary pension offering, at the beginning of 2009 Quatrem created a new version of its Qualia range. The original Qualia offering enables companies to anticipate retirement benefits by financing in advance while the latest IFC-IL version covers redundancy payments as well. Qualia IFC-IL, which takes into account the latest regulatory changes, now offers the possibility of investing in a non-unit-linked fund backed by Quatrem s general assets; this fund benefits each year from a guaranteed minimum rate of return. Quatrem s non-unit-linked defined contribution pension offering was awarded the «Label d Excellence» by Dossiers de l Epargne in 2009, having already received the award in 2006 and A SPECIAL PACK FOR SELF-EMPLOYED MANAGERS In 2009, Quatrem launched a complete healthcare, life, disability and pension product offering aimed at self-employed managers who have chosen gérant majoritaire (majority shareholder-manager) legal status. Based on the Quatrem insurance model designed for employees, this new product range will have the advantage of being reversionary for both employees and non-employees. Quatrem s self-employed manager pension offering was awarded the 2010 «Label d Excellence» by Dossiers de l Epargne. 42 % LIFE, DISABILITY AND HEALTH INSURANCE 58 % PENSIONS Breakdown of new business in % PENSIONS 44 % LIFE AND DISABILITY INSURANCE 36 % HEALTH INSURANCE Breakdown of 2009 premiums by activity

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13 QUATREM, partners STRONG TIES WITH BROKERS AND AGENTS Since the company s creation in 2000, Quatrem has been able to count on a veritable partnership and genuine, trust-based relationship between distributors and their customers for the sale of its products. In 2009, Quatrem was confirmed as the Malakoff Médéric group s exclusive provider of broker-distributed insurance. MMA also announced at the beginning of 2010 that it was renewing its business partnership with Quatrem. 12 % TIED AGENTS 88 % BROKERS AND OTHERS Breakdown of 2009 business by category of distributor WHO ARE QUATREM S DISTRIBUTORS? Quatrem products are regularly distributed by a network of over 300 employee benefits specialists. An additional 200 distributors sell the company s products on a more occasional basis. The two main commercial channels are brokers, the dominant means of distribution on this market, and MMA tied agents. A range of other network partnerships make an additional contribution to Quatrem s development. STRONG COMMERCIAL TIES In 2009, new initiatives reinforced the links between Quatrem and its distributors: From March to June 2009, Quatrem organised «Quatrem Pension Thursdays», a series of conferences on pensions for its broker partners in Paris, Lyon, Marseille, Bordeaux and Strasbourg. The conferences brought together more than 80 brokers. Legal training programmes took place throughout the year in association with the law firm Fromont Briens. The training focused on the social security finance act and the implementation of the 2008 French interprofessional agreement concerning termination indemnities. Quatrem s legal department also updated its practical legal guide which has been available to brokers and agents since September A new kit for responding to calls for tender was introduced. The kit was inspired by the rugby-themed corporate campaign and comprises a marketing booklet highlighting Quatrem s key strengths. Throughout the year, Quatrem sales managers presented short video clips on the company website which covered topics such as retirement benefits, defined contribution/defined benefit mixed plans and protection for self-employed managers. In March and April, five open days were organised in Paris and Strasbourg for sales managers and underwriters from the Corporate and Self-employed Professionals divisions at MMA. The aim was to promote synergies by providing business partners with practical information so they could better get to know their contacts at Quatrem, become more familiar with the company s services and strengthen their interest in health, life and disability insurance. Throughout the year, several marketing campaigns drawing on a range of materials targeted MMA sales networks.

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15 QUATREM, business plan QUALITY PLAN TO SUPPORT SALES GROWTH Launched in 2005, Quatrem s second business plan, spanning the period , comprised four key themes: profitability, sales growth, quality, and human resources development/internal progress. Results surpassed initial expectations. 1. PROFITABILITY Quatrem continued its profitability drive in Actions included selective underwriting, portfolio monitoring, overhead management, productivity enhancement and optimisation of financial products. Its prudent risk provisions policy ensures the security and long-term viability of policyholders investments. 2. HUMAN RESOURCES DEVELOPMENT AND INTERNAL PROGRESS Quatrem pressed ahead with its major training drive in Important progress was also made in two other areas: forward manpower and skills planning, and internal control. 3. SALES GROWTH With premiums advancing by 3.7%, 2009 was a very satisfactory year in terms of commercial development. Quatrem continued its growth policy during the year, with a number of distributor-orientated training sessions, jointly-managed marketing initiatives (Quatrem/distributors) and new business literature. 4. QUALITY On October 23, 2008, Quatrem launched the ISO 9001: 2008 certification process concerning the processing of standard new business in health, life, disability and pensions and passed the review in March In April 2009, Quatrem s second quality plan came to an end. 14 of the plan s 15 objectives were achieved. ( * ) Following receipt by QUATREM of the completed application. The 2009 Image and Quality survey The first survey of Quatrem s reputation and quality image was carried out in To measure the progress made since that time, this survey was performed again in February 2008 and February 2009 and included 275 distributors which work regularly with Quatrem. Improvements were observed in all areas as well as greater overall distributor satisfaction. QUATREM s Commitment Charter At the close of its first quality plan, Quatrem distributed a charter to all of its distributors. It comprises four commitments relating to key deadlines for its partners and for their corporate clients: the issue of standard contracts for life, disability, healthcare and pension products within 15 days ( * ) ; the processing of tailor-made proposals for life, disability, healthcare and pension products within 15 days ( * ) ; the processing of benefits applications (life, daily allowances, retirement benefits, supplementary capital) within 15 days ( * ) ; lastly, immediate handling of calls by Quatrem s customer service team or within 48 hours if the matter requires expert consultation. A new quality plan Having completed the first stage of the certification process, Quatrem continues to strive for quality. The company has already begun to broaden the scope of the certification process. A target of two years has been set to extend its quality process to endorsement management and life and disability benefits. The next certification reviews of endorsements and benefits will take place in March 2011 (endorsement management) and March 2012 (benefits) respectively.

16 QUATREM health, life and disability insurance online In 2009, a webspace was made available to policyholders and businesses via the quatrem.fr website which provides comprehensive information on employee benefits with respect to health, life and disability insurance. page 14

17 QUATREM, products MEETING THE DIVERSE NEEDS OF ALL CUSTOMERS As an expert in employee benefits products, Quatrem is already implementing the new regulations in order to address the concerns of client companies in terms of health, life and disability insurance, employee savings and pension schemes. A COMPLETE RANGE Life, disability and health: Life, short and long-term disability; Educational annuities; Widow(er) annuities; Corporate supplementary health insurance; Keyman insurance; Borrower s insurance; Health, life and disability insurance for self-employed managers. Pension and employee savings plans: Corporate pension savings plans: PERE (unit-linked and non-unit-linked with a choice of possible asset managers); Coverage of mandatory retirement liabilities: termination benefits, termination-redundancy benefits (unit-linked and non-unit-linked with a choice of possible asset managers); Defined benefit pension plans; Defined contribution pension plans (unit-linked and non-unit-linked); Mixed plans defined benefit/defined contribution plans to meet certain company profiles; Early retirement plans; Self-employed manager plans. QUATREM CUSTOMER SERVICE A dedicated customer service team is available to answer telephone queries from companies, Quatrem policyholders and distributors regarding contracts. Quatrem is one of the few employee benefits companies to currently offer such a facility. The six-strong team is available at (France only), Monday to Friday from 9 a.m. to 6 p.m, to answer queries on contract management, contributions and benefits. If a query cannot be answered immediately it is passed on to an expert in the Customer Transactions department and a response is guaranteed within 48 hours ( * ). In addition to managing incoming calls, in 2009 the customer service team began making outgoing calls for the benefit of different internal departments. ( * ) For queries regarding underwriting, borrower s insurance or commissions, distributors can continue to call their regular contacts.

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19 QUATREM, market GROUP PENSION PLANS: A MAJOR CHALLENGE The Fillon Act gives companies a predominant role to play in ensuring a satisfactory retirement pension for their employees. Since 2003, Quatrem has been actively present in the pensions market which gives the company real leverage for growth. To support its strategy, Quatrem has set up a comprehensive range of pension products through the launch of a non-unit-linked PERE insurance policy at the end of 2004, a unitlinked version in 2007, a unit-linked and non-unit-linked termination benefits policy in 2008 and an offering for self-employed managers in AN OPPORTUNITY FOR EMPLOYEE BENEFITS The law has had a strong impact on the group pension and employee savings plan market, leading to a new approach with a much wider range of solutions for human resource and senior management. Pensions are a major growth area for Quatrem and its distributors. The potential is considerable since only 15% of French employees had a retirement plan in 2007 (either a group or an individual plan). CAPITALISATION SCHEMES UNDER THE FILLON ACT PERE: an insurance policy that enables employees to make individual payments into a group pension contract. PERCO: an enhanced version of the PPESV, this employee savings plan is clearly geared towards retirement. PERP: a personal insurance plan, the aim of which is to gradually build up pension savings, with tax relief when taken out. QUATREM AND GROUP PENSIONS EVENTS From March to June 2009, Quatrem organised «Quatrem Pension Thursdays», a series of conferences on pensions for its broker partners in France. Each conference was comprised of three presentations: one on new legal regulations with regards to pensions, a second focusing on the technical aspects of the mixed defined contribution/defined benefit offering, and a third on Quatrem products for brokers in the pensions field. «Quatrem Pension Thursdays» took place in March in Lyon and Marseille and in April and May in Bordeaux, Strasbourg and Paris, and brought together more than 80 brokers.

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21 QUATREM, outlook SIGHTS REMAIN HIGH FOR 2010! In 2010, Quatrem will celebrate its tenth anniversary. The past 10 years have seen Quatrem establish itself as a benchmark in the employee benefits market. The company s ambition for the coming decade is to continue developing and to position itself as the key provider and market leader for intermediaries by drawing on its four fields of expertise technical issues, brokering, operations and sales coordination and become number one in customer satisfaction through its ability to meet its distribution networks expectations. 10 YEARS AND A NEW BUSINESS PLAN Despite the current financial and economic environment, Quatrem is providing the resources to maintain the drive launched in The company is confident that in collaboration with its partners it can make the most of these development strategies across all market and client segments. Several projects which were initiated in 2009 will continue this year, including upgrading Quatrem s IT system, continuing the ISO 9001 certification process and launching the third business plan. QUATREM BECOMES A WHOLLY-OWNED SUBSI- DIARY OF THE MALAKOFF MÉDÉRIC GROUP Since June 2010, Quatrem has been a wholly-owned subsidiary of the Malakoff Médéric group. Quatrem s third business plan falls in line with the objectives of the Malakoff Médéric group s 2012 Pact which reinforces the company s role as a provider of broker-distributed products. This presents an opportunity for Quatrem to develop its position as an intermediary specialist while at the same time benefiting from the strengths and financial stability of France s leading jointly-managed group. QUATREM RETAINS POSSESSION OF THE RUGBY BALL FOR ITS 2010 COMMUNICATIONS DRIVE After 2008 s showcasing of two up-and-coming stars of the Stade Français rugby club, in 2009 Fabien Pelous, the legendary captain of Stade Toulousain and the French national team (106 caps), embodied the Quatrem, insurer of talent campaign and will continue to do so in In addition, Quatrem has renewed its support of the French NGO Sport Sans Frontières, initiated in This association provides thousands of children every year with access to education and development programmes through sport, in France and abroad. In early 2010 QUATREM obtained ISO 9001 : 2008 certification for the processing of standard new health, life, disability and pension business.

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23 Conception-réalisation : Tél. : / Crédits photos : Getty Images Entity governed by the French Insurance Code French société anonyme (corporation) with a Management Board and a Supervisory Board with capital of 380,426, , rue La Fayette Paris Registered with the Trade and Companies Registry of Paris under number