2017: a year of operational performance and reinforced financial solidity

Jun 13, 2018, par Covea

In the words of CEO Thierry Derez, “2017 was a very good year marked by robust sales momentum and excellent results in strategic markets. Covéa continues to attract members in its core business, with almost 160,000 additional vehicles insured, together with over 81,000 additional homes. These performances validate our business strategies and support our priorities, geared towards operational efficiency and profitable growth.

Thanks to our financial solidity, which has been further strengthened, and our renewed governance, we are in great shape and fully committed to meeting the challenges of a fast-moving sector, while focusing on the crucial area of customer relationships”.


2017 KEY FIGURES, GROUP                                        KEY FIGURES, FRANCE   

€16.3 bn - EARNED PREMIUMS                                 11.5 MILLION CUSTOMERS AND MEMBERS          

€818 M - NET PROFIT                                                  10.7 MILLION VEHICLES INSURED                        

€14.3 bn - SHAREHOLDERS’ EQUITY                        8 MILLION HOMES INSURED

372% - SOLVENCY RATIO                                           2.9 MILLION HEALTH INSURANCE CUSTOMERS


ONGOING DEVELOPMENT IN FRANCE

In 2017, Covéa reported earned premiums of 16.3 bn, on a par with the 2016 level.

Group earned premiums

EUR millions

2016

2017

% change

Property and casualty insurance

Personal insurance

Total insurance, France

8,729

5,565

 14,294

8,943

5,623 

14,566

+2.4%

  +1%

+1.9%

Total insurance, International

2,006

1,738

-13.4%

Total insurance business

16,300

16,304

-

 

90% of the Group’s insurance business is generated in France, with earned premiums up 1.9% to 14.6 bn.

Property and casualty insurance, which represents 61.4% of total business, enjoyed healthy growth (+2.4%), driven by all the Group’s markets.

In personal insurance, earned premiums were up 1% to 5.6 bn, representing 38.6% of the Group’s business.

Internationally, earned premiums (€1.7 bn) were down, mainly due to Italian subsidiary Bipiemme Vita’s operations.

 

 

PROPERTY AND CASUALTY INSURANCE: GROWTH ACROSS ALL OUR MARKETS

In property and casualty insurance, the Group expanded its presence in all its markets and confirmed its leadership position.

● In motor insurance, the Group’s earned premiums edged up 0.6% to €3.7 billion at end-2017. Covéa now insures more than 10.7 million vehicles and has consolidated its leading position in this market.

●  In private risk, earned premiums rose by 2.2% to €1.8 billion at end-2017. Covéa is the leading player in this sector, with more than 81,000 additional homes insured, lifting its total to slightly over 8 million homes.

● Among professionals and corporates, a segment in which Covéa is the second-largest insurer, the Group stood out for its robust growth, which was well above the market average. Earned premiums climbed 6.4% to €2.9 billion, fuelled in particular by the affinity market and corporate fleets.

.

● The legal protection business reported growth of 2%.

 

 

Earned premiums, France

EUR millions

2016

2017

% change

Motor

Private risk

Professionals and corporates

Legal protection

3,647

1,797

 2,712

 275

3,670

1,836

2,885

280

  0.6%

  2.2%

     6.4%

     1.9%

International reinsurance

Other (acceptances, pecuniary loss insurance)

 

150

148

171

100

13.9%

-31.8%

Total Property and Casualty

8,729

8,943

     2.4%

CLAIMS

The year 2017 brought a stream of weather-related events, including hurricanes Irma and Maria.

The overall cost of all these events combined was €449 million before reinsurance.

PERONAL LINES: TARGETED DEVELOPMENT IN COLLECTIVE HEALTH INSURANCE, PERSONAL PROTECTION AND UNIT-LINKED PRODUCTS

  • In health and personal protection, premiums amounted to €2.1 billion, up 1.8% versus 2016. This performance was driven by the 6.4% growth achieved in collective insurance and, particularly, by health insurance. In individual policies, the downturn in health insurance premiums was offset by ongoing growth in personal protection insurance.
  • In retirement savings, gross inflows totalled €3.5 billion, up 0.6% versus 2016. Inflows into unit-linked products increased significantly and now represent 17.3% of total gross inflows, versus 11.5% at end-2016.

ASSET MANAGEMENT

Covéa Group relies on the expertise of its asset management company, Covéa Finance, together with Covéa Immobilier (property specialist).

With more than €97.9 billion in assets under management, Covéa Finance is France’s tenth-largest asset management company. At end-2017, it managed 42 funds and had equity investments worth €17.6 billion.

Covéa Immobilier pools the resources and expertise of the Group’s entities in property asset management. At the end of 2017, Covéa’s property investment portfolio amounted to €4.9 billion.

GROUP COMBINED RESULTS: PERFORMANCE AND SOLIDITY

Net profit (group share) was €818 million.

Covéa once again improved its technical fundamentals with a combined ratio of 97.5%, versus 98% in 2016.

The Group’s combined shareholders’ equity stands at €14.3 billion (+5.9%).

Financial investments (taken at realisable value) amount to €107.4 billion, versus €104.8 billion in 2016.

Unrealised capital gains rose from €13.4 billion in 2016 to €13.6 billion in 2017.

 

 

EUR millions

2016

2017

 

Net profit (Group share)

 

825

 

818

Shareholders’ equity (Group share)

13,460

14,253

Unrealised capital gains

Financial investments (realisable value)

13,433

104,788

13,567

107,435

 

Regulatory solvency ratio

 

351%

 

372%

2018: SHARP FOCUS ON CUSTOMER RELATIONSHIPS

Covéa is rolling out an ambitious innovative programme for the overall transformation of customer relationships and has selected Salesforce to support it in this initiative.

The financial statements will be submitted for approval at the Annual General Meeting on 26 June 2018