-
Premium income stable at
€13.6 billion
-
Targeted development, particularly with very
strong development of the unit-linked individual savings / pensions
business
-
Strong growth in group health insurance, driven
by the new regulation in compulsory group health insurance, "ANI",
a market sector in which Groupama is France's number one
player
-
Net income of
€322 million
-
Economic operating profit of
€153 million
-
Technical and operating performance impacted by
a difficult environment due to the persistence of low interest
rates and the higher rate of claims due to weather and severe
claims
-
A non-life combined ratio of 100.3%
-
Active transformation of the life insurance
portfolio with a share of unit-linked in individual savings
reserves of 23.5%
-
A Solvency 2 ratio of
289%
"The strength of
Groupama's mutual insurance model, the Group's presence regionally,
and the unrelenting hard work of its elected representatives and
employees have enabled the company to help its customers and
members to deal with a year that was an unprecedented disaster from
a climate standpoint, whether they were affected by floods in the
spring, damage to goods or materials, or the series of bad weather
that hurt crops. Our members show their appreciation for Groupama
by subscribing to our mutual certificates in large numbers, and
we're proud of that.", said Jean-Yves
Dagès, Chairman of the Board of Directors of Groupama SA.
"Thanks to our
rigorous risk management, our 2016 results remained strong in spite
of an exceptionally high level of claims on crops and an
above-average level of claims for bodily injury. This demonstrates the solidity of the Group's fundamentals,
which we are constantly reinforcing by developing our human
resources and investing in digital solutions that are recognised as
being among the best in the market.", said
Thierry Martel, Chief Executive Officer of Groupama SA.
Paris, 17 March 2017 -
The board of directors of Groupama S.A. met on
16 March 2017, under the chairmanship of Jean-Yves Dagès,
and approved the Group's combined financial statements and the
consolidated financial statements of Groupama SA for fiscal year
2016.
The
Group's combined financial statements include
all business of the Group as a whole (i.e. the activity of the
regional mutuals and of the subsidiaries consolidated within
Groupama SA). The consolidated financial statements for Groupama SA
include the business of all subsidiaries as well as internal
reinsurance (nearly 35% of the premiums from the regional mutuals
ceded to Groupama SA).
The analysis
below focuses on the combined scope. The key figures of the
consolidated scope are presented in the appendices
notes.
At 31 December 2016,
Groupama reported combined premium income of €13.6 billion for
the year, a stable level compared to 2015.
Breakdown of
Groupama's combined premium income by business
activity as at 31 December 2016
| in millions of euros |
31/12/2016 |
Like-for-like change (%) |
| Property
and casualty insurance |
7,163 |
+0.7% |
| Life and
health insurance |
6,280 |
-0.6% |
| Financial
and banking businesses |
133 |
+5.7% |
|
GROUP TOTAL |
13,576 |
+0.1% |
Insurance premium income in France
as at 31 December 2016 amounted to €10.8 billion, up
+0.9% for the year.
In property and casualty
insurance, premium income rose +0.6% to €5.4 billion.
Insurance for individuals and professionals gained +0.3% over the
year, finishing at €3.2 billion. This upward trend is the
result of growth in home insurance (+1.2% to €1.0 billion) and
business liability insurance (+2.0% to €0.4 billion), stable
business for motor insurance (-0.2% to €1.5 billion), and a
decline in construction insurance (-4.0%). Growth in the
agriculture branch (+0,8%), development of the legal protection
branch (+13.2%), and increased assistance business (+14.1%) also
contributed to higher premium income in property and casualty
insurance.
In life and health insurance,
premium income was €5.4 billion, up +1.1% compared with
31 December 2015. This increase was mainly due to strong
growth in group insurance (+13.4%), driven by group health
insurance (+26%), under the effect of the rise in policies
following the new French regulation on compulsory group health
insurance, "ANI", a market where Groupama is number one in France.
The group protection segment also grew (+3.5%). The individual
savings/pensions business dropped -4.0%, a change that results from
growth in unit-linked products (+11.7%) while the market
dropped -1% (FFA) and a -11.1% decrease in euro-denominated savings
products within a stable market (FFA). Unit-linked outstandings
represented 23.5% of individual savings reserves at 31 December
2016 versus 20.7% at 31 December 2015.
The Group is present in
11 countries around the world, mainly in Europe. It also has
growth opportunities in Turkey, as well as in China, a country in
which it ranks second among foreign non-life insurers with
€256 million in premium income[1]. At
31 December 2016, international premium income totalled
€2.647 billion, down -2.9% compared with
31 December 2015.
In property and casualty
insurance, premium income was up +0.8% from 2015, at
€1.8 billion as at 31 December 2016. This change was
mainly due to the good performance of the agricultural business
segment (+15.1%), particularly in Turkey; home insurance (+2.2%);
and the growth in business activities with companies and local
authorities (+2.9%). These gains offset the decrease in motor
insurance (-1.1%).
In life and health insurance,
premium income was €880 million, reflecting a decrease of
-9.7%, particularly following the decline in the individual
savings/pension business (-18.8%), mainly in Italy and Greece.
Indeed, in Italy, as part of the strategy focused on profitable
development, the Group favours unit-linked policies (+55%) over
traditional policies denominated in euros, which saw a decrease in
inflows (-34%). Group life and health insurance was up +12.2%,
supported by growth in the group retirement segment (+27.4%).
Breakdown of
international premium income as at
31 December 2016
| in millions of euros |
31/12/2016 |
Like-for-like change (%) |
| Italy |
1,456 |
-9.0% |
| Turkey |
388 |
+4.6% |
| Hungary |
316 |
+4.4% |
| Romania |
208 |
+15.9% |
| Other countries* |
279 |
+1.8% |
| International insurance |
2,647 |
-2.9% |
*Greece,
Portugal, Bulgaria, Gan Outre-Mer
Group's premium income was
€133 million at 31 December 2016, mainly coming from
Groupama Asset Management for €128 million. Groupama Asset
Management's business was driven by growth in assets under
management, up €5 billion, reaching €96.8 billion as at
31 December 2016.
On 22 April 2016, Orange
and Groupama signed an agreement to develop an unprecedented 100%
mobile banking offering. In October 2016, regulatory and
prudential authorities, both in France and Europe, gave formal
approval for the acquisition by Orange of 65% of the capital of
Groupama Banque [2], renamed
Orange Bank on 16 January 2017.
The Group's economic operating
income amounted to €153 million as at
31 December 2016.
The contribution to economic
operating income from international subsidiaries was positive, up
+€51 million compared to 2015.
Breakdown of the
Group's economic operating income
|
in millions of euros |
2015 |
2016 |
2016/2015
change |
| Life and health insurance |
152 |
198 |
+46 |
| Property and liability insurance |
118 |
25 |
-93 |
| Financial and banking business |
9 |
27 |
+18 |
| Holding companies |
-117 |
-96 |
+21 |
| Economic operating income |
163 |
153 |
-10 |
Economic operating income from
insurance reached +€223 million as at
31 December 2016, despite an unfavourable
environment:
-
2016 was marked by a higher rate of
claims related to weather and severe claims.
-
lingering low interest rates, which
continued to have a high unfavourable impact of €121 million
after taxes.
In property and casualty
insurance, economic operating income totalled €25 million as
at 31 December 2016. The non-life net combined ratio was
100.3% as at 31 December 2016, versus 99.2% as at
31 December 2015. This change takes into account the rise
in weather-related and severe claims, which added +4.8 points.
Reinsurance protections proved to be effective, reducing the impact
of this category to 3.1 points. Favourable change in
loss-related claims and changes over previous years also helped
partially compensate for the increase. The net cost ratio improved
+0.2 points to 27.7%.
In life and health insurance,
economic operating income amounted to €198 million as at
31 December 2015, versus €152 million as at
31 December 2015, an increase of +€46 million. This
growth resulted from the improved loss experience in the health and
bodily injury businesses and the increased profitability of the
life insurance business benefitting from the development of
unit-linked policies in recent years in France.
The reconciliation from economic
operating income to net income takes into account non-recurring
items worth +€169 million as at 31 December 2016. In
the 2016 financial statements, besides realised capital gains
worth €234 million, the Group also had income from business
disposals (Cegid and Groupama Banque) of +€66 million, and
goodwill impairment in Turkey at -€88 million.
Overall, the Group's net income
amounted to €322 million as at 31 December 2016.
The Group's shareholders' equity totalled
€8.8 billion as at 31 December 2016 compared with
€8.2 billion as at 31 December 2015.
This includes mutual certificates issued by all of
Groupama's regional mutuals, worth €190 million. By issuing
mutual certificates, the regional mutuals have acquired the
necessary funding flexibility to invest in their territories and
strengthen a long-term, quality relationship with members based on
trust.
As at 31 December 2016, insurance
investments on the balance sheet amounted to €86.2 billion,
and unrealised capital gains totalled €11.0 billion, including
€7.7 billion on bonds, €0.9 billion on equities, and
€2.4 billion on property assets.
The Group continued its asset de-risking policy,
particularly by reducing its equity portfolio, which, net of
hedges, represented 4.5% of the asset portfolio[3] as at
31 December 2016 versus 5.0% as at
31 December 2015.
As at 31 December 2016, subordinated
debt remained stable compared with 31 December 2015.
Groupama's debt to equity ratio excluding revaluation reserves was
9.7% at 31 December 2016.
On 9 January 2017, Groupama launched an
offer to exchange any and all of its undated deeply subordinated
notes issued in 2007 and a portion of its senior subordinated notes
issued in 2009 for new senior subordinated notes due 2027.
Insititutional investors showed significant interest in the
transaction.
As at 31 December 2016, the Solvency 2
coverage ratio was 289%, up +26 points compared with 2015.
Groupama calculates its Solvency 2 ratio at the Group level,
incorporating the transitional measure on technical reserves in
accordance with the statutory provisions.
Group
Communications Department
| Press contact |
Analyst and investor contacts |
Guillaume Fregni - + 33 (0)1 44 56 28 56
guillaume.fregni@groupama.com
|
Yvette Baudron - +33 (0)1 44 56 72 53
yvette.baudron@groupama.com
Valérie Buffard - +33 (0)1 44 56 74 54
valerie.buffard@groupama.com
|
* * *
Groupama
financial information on the accounts closed on 31/12/2016
includes:
-
this press release,
which is available on the groupama.com website,
-
the Groupama combined
financial statements as at 31/12/2016, which will be added to the
website www.groupama.com on 21 March 2017 for the French
version and on 6 April 2017 for the English
version,
-
Groupama
SA's registration document, which will be
filed with the AMF on 27 April 2017 and posted on the
groupama.com website on 28 April 2017.
[1] On a basis of 100% of the premium income for Groupama Avic
China, entity accounted for using the equity method in the
Groupama's combined financial statements
[2] Groupama Banque is accounted for using the equity method in
the 31/12/2016 financial statements
[3] Asset breakdown calculated at market value, excluding
minority interests, unit-linked products, and repurchase
agreements
Appendix 1: key
figures for Groupama - combined financial statements
| |
2015 |
2016 |
2016/2015 |
| |
Reported
premium
income |
Pro
forma
premium
income* |
Reported
premium
income |
Change ** |
| in millions of euros |
% |
| > FRANCE |
10,695 |
10,703 |
10,796 |
+0.9% |
| Life and health insurance |
5,341 |
5,341 |
5,400 |
+1.1% |
| Property and casualty insurance |
5,354 |
5,362 |
5,396 |
+0.6% |
| > INTERNATIONAL & France
overseas |
2,770 |
2,728 |
2,647 |
-2.9% |
| Life and health insurance |
983 |
974 |
880 |
-9.7% |
| Property and casualty insurance |
1,787 |
1,753 |
1,767 |
+0.8% |
| TOTAL INSURANCE |
13,465 |
13,430 |
13,443 |
+0.1% |
| FINANCIAL AND BANKING BUSINESS |
280 |
126 |
133 |
+5.7% |
| TOTAL |
13,745 |
13,556 |
13,576 |
+0.1% |
* Based on comparable
data
** Change on a like-for-like
exchange rate and consolidation basis
|
in millions of euros |
2015 |
2016 |
2016/2015
change |
| Insurance - France |
271 |
173 |
-98 |
| Insurance - International |
-1 |
50 |
+51 |
| Financial and banking business |
9 |
27 |
+18 |
| Holding companies |
-117 |
-96 |
+21 |
| Economic operating income* |
163 |
153 |
-10 |
*
Economic operating income:
equals net income adjusted for realised capital gains and losses,
long-term impairment provision allocations and write-backs, and
unrealised capital gains and losses on financial assets recognised
at fair value (all such items are net of profit sharing and
corporate income tax). Also adjusted are non-recurring items net of
corporate income tax, impairment of value of business in force, and
impairment of goodwill (net of corporate income tax).
|
|
2015 |
2016 |
2016/2015 change |
| in millions of euros |
| Economic operating income* |
163 |
153 |
-10 |
| Net
realised capital gains |
269 |
234 |
-35 |
| Long-term
impairment losses on financial instruments |
-26 |
-15 |
11 |
| Gains and
losses on financial assets and derivatives recognised at fair
value |
38 |
-4 |
-42 |
| Net
income from disposal activities |
0 |
66 |
+66 |
| Goodwill
impairment |
0 |
-88 |
-88 |
|
Amortisation of intangible assets and other transactions |
-75 |
-23 |
+52 |
| Net income |
368 |
322 |
-46 |
Contribution of
businesses to combined net income
|
in millions of euros |
2015 |
2016 |
| Insurance and services - France |
360 |
374 |
| Insurance - international subsidiaries |
1 |
67 |
| Financial and banking businesses |
11 |
0 |
| Groupama SA and holding companies |
2 |
1 |
| Other |
-7 |
-120 |
| Net income |
368 |
322 |
| in millions of euros |
2015 |
2016 |
| Shareholders' equity (Group share) * |
8,219 |
8,752 |
| Gross unrealised capital gains |
10,156 |
10,955 |
| Subordinated debt |
750 |
750 |
| Total balance sheet |
107,295 |
98,085 |
* Including
perpetual subordinated debt recognised as equity
instruments
| |
2015 |
2016 |
| Non-life
net combined ratio |
99.2% |
100.3% |
|
Debt-to-equity ratio |
10.2% |
9.7% |
| Solvency
II margin* |
263% |
289% |
*
incorporating the transitional measure on technical reserves in
accordance with the statutory provisions
Appendix 2: key
figures for Groupama SA - consolidated financial statements
A/ Premium income
| |
2015 |
2016 |
2016/2015 |
| |
Reported
premium
income |
Pro
forma
premium
income* |
Reported
premium
income |
Change ** |
| in millions of euros |
% |
| > FRANCE |
7,239 |
7,247 |
7,356 |
1.5% |
| Life and health insurance |
4,021 |
4,021 |
4,090 |
1.7% |
| Property and casualty insurance |
3,218 |
3,226 |
3,267 |
1.3% |
| > INTERNATIONAL & France
overseas |
2,770 |
2,728 |
2,647 |
-2.9% |
| Life and health insurance |
983 |
974 |
880 |
-9.7% |
| Property and casualty insurance |
1,787 |
1,753 |
1,767 |
0.8% |
| TOTAL INSURANCE |
10,009 |
9,974 |
10,004 |
0.3% |
| FINANCIAL AND BANKING BUSINESS |
282 |
128 |
136 |
5.6% |
| TOTAL |
10,292 |
10,103 |
10,140 |
0.4% |
* Based on comparable
data
** Change on a like-for-like
exchange rate and consolidation basis
B/ Economic operating
income*
|
in millions of euros |
2015 |
2016 |
2016/2015
change |
| Insurance - France |
82 |
-13 |
-95 |
| Insurance - International |
-1 |
50 |
+51 |
| Financial and banking business |
9 |
27 |
+18 |
| Holding companies |
-116 |
-96 |
+20 |
| Economic operating income* |
-27 |
-32 |
-5 |
*
Economic operating income:
equals net income adjusted for realised capital gains and losses,
long-term impairment provision allocations and write-backs, and
unrealised capital gains and losses on financial assets recognised
at fair value (all such items are net of profit sharing and
corporate income tax). Also adjusted are non-recurring items net of
corporate income tax, impairment of value of business in force, and
impairment of goodwill (net of corporate income tax).
C/ Net income
|
in millions of euros |
2015 |
2016 |
2016/2015 change |
| |
| Economic operating income* |
-27 |
-32 |
-5 |
| Net
realised capital gains |
214 |
179 |
-35 |
| Long-term
impairment losses on financial instruments |
-24 |
-14 |
+10 |
| Gains and
losses on financial assets and derivatives recognised at fair
value |
34 |
-7 |
-41 |
| Net
income from disposal activities |
0 |
66 |
+66 |
| Goodwill
impairment |
0 |
-88 |
-88 |
|
Amortisation of intangible assets and other transactions |
-65 |
-24 |
+42 |
| Net income |
133 |
79 |
-54 |
Contribution of
business activities to consolidated net income
|
in millions of euros |
2015 |
2016 |
| Insurance and services - France |
118 |
130 |
| International insurance |
6 |
67 |
| Financial and banking businesses |
11 |
0 |
| Groupama SA and holding companies |
4 |
3 |
| Other |
-7 |
-120 |
| Net income |
133 |
79 |
D/ Balance sheet
| in millions of euros |
2015 |
2016 |
| Shareholders' equity (Group share)* |
4,811 |
5,613 |
| Gross unrealised capital gains |
9,102 |
9,892 |
| Subordinated debt |
750 |
750 |
| Balance sheet total |
99,345 |
90,484 |
* Including
perpetual subordinated debt recognised as equity
instruments
Version pdf
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: GROUPAMA via Globenewswire
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