2013-2014 FACTS&FIGURES
We are in a changing environment and by combining each other s strengths we can make the impossible possible The Eurapco Alliance is a unique and strong partnership of leading European Mutual companies which work together to find common solutions to the new challenges of the changing world. Looking into these challenges, it is clear that jointly it will be easier to outperform. Eurapco Partners together have achieved a GWP of 36.2 billion in Non Life in the yearly results of 2013. Partners hold strong and very competitive positions in their markets in the Non Life Rankings, and this represents a crucial value for our Alliance, because Partners use synergies to improve their performance in their own markets. The Life results showed a GWP of 12.47 billion in total for the same period. Together we are strong. Over 37 millions of customers entrust their insurance covers to the Eurapco Partners. Together we make an impact. Those customers represent 10% of the total European population. Together we are big. A professional network of over 66.000 employees works to deliver high quality products and services. These figures evidence that the Eurapco Partners are a solid and vital part of the European insurance industry. Moreover and directly linked with the mutual background of our Partners, we have a serious responsibility and important role within society. It is clear that we are in a changing environment and by combining each other s strengths we can make the impossible possible. Wilma de Bruijn, General Manager Eurapco 2 Luis Villalba, General Manager Eurapco 02
IN MILLION EUR 2012 2013 12,351 12,474 35,749 36,245 GROSS WRITTEN PREMIUM LIFE¹ GROSS WRITTEN PREMIUM NON-LIFE¹ (incl. health) 287,821 284,385 307,915 313,106 ASSETS UNDER MANAGEMENT TOTAL ASSETS 67,709 66,824 37.6 36,2 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 03 (1) The premiums reported by Covéa concern earned premiums instead of gross written premiuns.
2013 HIGHLIGHTS Achmea is writing a new episode in its history through its Acceleration & Innovation program. We are accelerating customer focus, as well as renewing and digitizing our processes and services to our customers. We operate in a sector undergoing great change and aim to make this transformation precisely now; we are an insurer with cooperative roots and strong brands that keep in touch with their customers by using the latest technologies. Over 2013, our operational profit increased by 4% to EUR 536 million Our net profit declined by more than a quarter to EUR 344 million, primarily as it was strongly affected by goodwill impairments on our pension services and health businesses. OUTLOOK The Acceleration & Innovation program will enable us to continue to invest in new digital solutions for our customers, keep our high level customer satisfaction and maintain a sound financial position in the long term. Unfortunately, over the next three years we have to reduce our workforce by approximately 4,000 employees. In this far-reaching reorganization we will take utmost care of the interests of those employees affected. The change program will result in a structural reduction of operating expenses by EUR 450 million by the end of 2016. Our financial position has remained very strong, with a group solvency ratio of 202% at year-end. 04
IN MILLION EUR 2012 2013 2,944 2,593 2 2 16,271 16,425 GROSS WRITTEN PREMIUM LIFE RANK LIFE IN THE NETHERLANDS (individual life) GROSS WRITTEN PREMIUM NON-LIFE (incl. health) 125,200 121,100 94 817 94 830 1 RANK NON-LIFE IN THE NETHERLANDS (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS 18 905 18 424 13 12 NUMBER OF EMPLOYEES (FTE) NUMBER OF CUSTOMERS IN MILLIONS IN EUROPE 05
2013 HIGHLIGHTS Profits before taxes reached EUR 85 million in 2013. Total Group Income exceeded EUR 2,150 million. Premium Income reached EUR 1,713 million. Loss ratio on net income went down from 65,6% to 61,9%. These results were as expected in the Strategic Plan 2013-2015. The solvency margin was of 204%, with an excess of EUR 473 million over the legal requirements. 2013 was an atypical year for the company. Marked by the major changes to restructure the financial system in Spain, the adverse economical Spanish situation also had consequences for bancassurance distribution, which was revised and consolidated. Caser showed its capacity of reaction. OUTLOOK Caser will be focusing on its Strategic Plan 2013-2015. It develops a customer centred strategy, and a multi-access strong boost. Agents and Brokers distribution is enhanced and now supports around a 30% of the income. In parallel, Bancassurance and Key accounts distribution is strengthened and, as usual, excellence and quality in service is always a must. Once again, diversification activities grew. Caser Residential is now an important lead in its market with 15 homes for the elderly and 1,300 employees. Hospital activities income amounted to EUR 13,6 million. 06
IN MILLION EUR 2012 2013 975 871 10 1,021 842 9 GROSS WRITTEN PREMIUM LIFE RANK LIFE IN SPAIN GROSS WRITTEN PREMIUM NON-LIFE (incl. health) 11,426 9,808 10,413 9,330 10 11 RANK NON-LIFE IN SPAIN (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS 1 946 1 642 3.2 3.0 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 07
2013 HIGHLIGHTS Earned premiums increased by more than 5.8% to over EUR 15.5 billion (11.7% were generated abroad). Net income (Group share) rose by 31.2% from EUR 628 million in 2012 to EUR 824 million in 2013 Financial solidity with a solvency margin more than 4 times the statutory minimums. Covéa posted net growth in the number of policies across all business segments, particularly in motor insurance (9.4 million policies, up 2%) and personal property and casualty insurance (8.1 million policies, up 1.6%). Thanks to the dynamic sales performance of the 3 brands (MAAF, MMA, GMF), Covéa gained over 529,000 customers, bringing the total to more than 11 million. OUTLOOK The Covéa group continued its initiatives aimed at reinforcing the strength and competitiveness of its members. To this end, in 2013 the Group developed its operational organisation to increase cooperation and strengthen synergies between the brands, both in traditional insurance activities and in insurance services. This reorganisation resulted in the creation of new shared departments which have established greater cross-functionality and improved the operational management of the Group. Covéa has strengthened its position in collective health and personal insurance with the affiliation of mutual insurance company SMI, which enables Covéa to anticipate developments within the health insurance market. 08
IN MILLION EUR 2012 2013 4,349 4,856 10 10,466 10,751 9 EARNED PREMIUM LIFE RANK LIFE IN FRANCE EARNED PREMIUM NON-LIFE (incl. health) 75,741 78,935 85,214 89,169 1 RANK NON-LIFE IN FRANCE (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS 26 598 26 624 11.4 10.9 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 09
2013 HIGHLIGHTS Group profit was stable despite difficult environment. Group equity increased by 4.5%. Dr. Karsten Eichmann was appointed new CEO. Dr. Werner Görg (former CEO) was elected Chairman of the supervisory Board Focus on implementing multi-channel strategy. The merger of Gothaer and Asstel (direct insurance). OUTLOOK Gothaer intends to strengthen their market position further and is aiming at annual premium growth of three percent until 2016. The implementation of a multi-channel strategy gears processes to changes in customer behaviour and growing digitization. Therefore a modern communication platform will be implemented and marketing channels are attuning. The Gothaer and Asstel brands will be completely merged by 2016. With its high direct-marketing competence and its know-how in Customer Relationship Management, Asstel becomes an important part of Gothaer s multi-channel distribution. 10
IN MILLION EUR 2012 2013 1,544 1,500 12 12 GROSS WRITTEN PREMIUM LIFE COMBINED RANK LIFE AND NON-LIFE IN GERMANY (incl. health) 2,681 2,757 27,507 28,287 31,113 32,270 GROSS WRITTEN PREMIUM NON-LIFE (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS 6,042 5,979 3.5 3.5 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 11
2013 HIGHLIGHTS Solvency capital strengthened by SEK 4,732 million to SEK 40,469 million (2012: SEK 35,737 million). The technical result from non-life insurance operations rose to SEK 1,285 million (2012: SEK 1,439 million). The combined ratio was 97% (2012: 97%) and investment income amounted to SEK 4,407 million (3,282 SEK million). Operating profit for Länsförsäkringar Bank strengthened to SEK 647 million (2012: SEK 555 million). Profit for Länsförsäkringar Fondliv amounted to SEK 246 million (2012: SEK 128 million). Insurance capital rose by SEK 15 billion to SEK 78 billion. Profit for Länsförsäkringar Liv amounted to SEK 5.1 billion (4.9). The solvency ratio strengthened during the year and amounted to 118%, up 5%. OUTLOOK Länsförsäkringar continues to broaden the offering in banking and insurance. An increasing number of customers are choosing more banking products from our broad range leading to a steady and profitable growth in the banking operation. We continue our extensive efforts in the life-assurance and pension market by strengthening our unit-linked assurance offering and by offering our existing traditionalmanagement customers better long-term returns based on a modified offering related to the economic climate and present regulations. We constantly develop solutions to meet the customers demands. Digital development is one of our most important topics, particularly the development of our mobile services, which are very successful. 12
IN MILLION EUR 2012 2013 1,553 1,473 6 2,246 2,244 5 GROSS WRITTEN PREMIUM LIFE RANK LIFE IN SWEDEN GROSS WRITTEN PREMIUM NON-LIFE (incl. health) 26,543 23,744 55,361 55,912 1 RANK NON-LIFE IN SWEDEN (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS 5,889 5,889 3.5 3.5 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 13
2013 HIGHLIGHTS As a part of the extensive reorganisation of LocalTapiola over 1.5 million non-life insurance contracts, approximately EUR 353 million euro of premium income, assets of EUR 660 million and 457 employees were transferred to 19 regional companies. The risk premiums collected relating to non-life insurance were on a good level but the premium income goal was not reached. LocalTapiola Life increased the premium income by 30% and strengthened the solvency. Increased operating expenses had a negative effect on the result. LocalTapiola Bank reached a record result thanks to successful investment sales. LocalTapiola Asset Management increased the number of institutional investors and private banking customers. OUTLOOK Eläke-Fennia and LocalTapiola Pension merged and established the pension insurer Elo, and the new S-Bank started operations. The competitiveness of LocalTapiola is boosted through strategic and customer benefit cooperation (Bonus) with the S-group, a large Finnish retail trader and service group. The cooperation includes sales and development of products provided by S-Bank. LocalTapiola has advanced in its welfare and health strategy. Retail customers will be offered new life cycle products. A new counselling service will be launched in order to shorten the medical treatment chain. LocalTapiola is also taking action to improve profitability and decrease the expense ratio to reach a level similar than the levels of competitors. 14
IN MILLION EUR 2012 2013 423 *1,041 1,121 327 4 4 GROSS WRITTEN PREMIUM LIFE RANK LIFE IN FINLAND GROSS WRITTEN PREMIUM NON-LIFE (incl. health) 3 7,763 8,593 18,031 18,506 *1 2 2 RANK NON-LIFE IN FINLAND (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS *4,128 4,000 *1.5 1.6 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 15 *Reported figures 2012 are pro forma (combined figures for Tapiola General and Local Insurance Mutual Company).
2013 HIGHLIGHTS Swiss Mobiliar posted a very good consolidated profit of EUR 315.2 million. The non-life business contributed EUR 272.3 million (2012: EUR 153.0 million) and the life business EUR 43.0 million (2012: EUR 41.8 million) to this impressive overall result. Overall premium volume registered an increase of 3.9% to EUR 2.819 billion. In the non-life business, Swiss Mobiliar s growth was 4.6%, once more clearly exceeding the sector average, which came to 1.4%. The Swiss Mobiliar Group has an exceptionally strong financial base with capital and reserves far in excess of statutory requirements. The Solvency I ratio amounts to 568%. Calculated on the basis of the SST (Solvency II), the ration exceeds 300%. OUTLOOK Good news for customers again: Swiss Mobiliar ensures that its customers share its success. Following the reduction in MobiCasa household and building policies (from mid-2013 to mid- 2014), other policyholders will now benefit from the surpluses in the non-life business. Starting mid-2014, premiums for MobiPro business and building insurance as well as MobiCar vehicle insurance will be reduced by 10% for one year; around EUR 114.2 million will be returned to customers. 04 16
IN MILLION EUR 2012 2013 703 714 8 8 2,023 2,105 GROSS WRITTEN PREMIUM LIFE RANK LIFE IN SWITZERLAND GROSS WRITTEN PREMIUM NON-LIFE (incl. health) 13,641 13,918 12,966 13,089 3 3 RANK NON-LIFE IN SWITZERLAND (incl. health) ASSETS UNDER MANAGEMENT TOTAL ASSETS 4,201 4,266 1.6 1.6 NUMBER OF EMPLOYEES NUMBER OF CUSTOMERS IN MILLIONS 17
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