Dynamic business in France - Very strong growth in earnings driven
by life insurance
Press release
Paris, February 8th 2024
Dynamic business in
FranceVery strong growth in earnings driven by
life insurance
KEY FIGURES 2023:
- Record total
revenue1 of 37.2 billion euros,
up 5.6%2
- Net income group share of
1,756 million euros3, up
20.9%4 on an underlying
basis
- Solvency II prudential
ratio of 214%
Nicolas Denis, Chief Executive Officer of Crédit
Agricole Assurances, said: “Crédit Agricole Assurances' very strong
annual results once again confirm the strength of our model of
universal, local banker-insurer serving all our customers.
With the support of our partner banks, mainly
the Crédit Agricole Regional Banks and LCL, we have continued to
diversify our activities in line with our strategy. Despite a
difficult market context, our revenues are at an all-time high,
thanks to very strong unit-linked inflows, the development of our
protection of individuals and assets offers, and new call for
tenders won in group retirement insurance. These successes
consolidate our position as France's number 1 insurer and Europe's
number 1 bancassurer.
During the recent climatic events, of an
exceptional scale, Crédit Agricole Assurances team members were
once again on hand to support all our customers - individuals,
professionals and businesses - who suffered losses, underlining the
excellence of our customer relations.
Internationally, we recently completed our
partnership with Banco BPM in Italy, continuing our geographic
expansion outside France.
In 2024, we will remain focused on the
implementation of our strategy, and will maintain our efforts to
generate sustainable growth that benefits both our customers and
society.”
CUSTOMER SATISFACTION AT THE HEART OF
OUR PURPOSE
Quality of service (customer relations, claims
management) is one of our top priorities. Customer satisfaction
rates for 2023 are high: 93% for property and casualty insurance
(after claim) and 91% for life insurance (Crédit Agricole and LCL
customers).
In addition, enhancing our banking applications
with offers and services that we can provide to our customers is
essential for our partner banks and Crédit Agricole Assurances.
2023 comes to a close with the integration into Ma Banque5 and LCL
Mes Comptes of the car quote and multi-risk home insurance
subscription (following on the multi-risk home insurance quote that
was already integrated). The recently overhauled services, which
are available to customers who log on to their personal online
space, received a customer satisfaction rating of over 4.7 out of
5.
A LEADING PLAYER IN FRANCE AND
EUROPE
For 2023, Crédit Agricole Assurances has
continued to develop its core businesses, with an accelerated focus
on protection of individuals and assets.
As a result, Crédit Agricole Assurances posted
premium1 of €37.2 billion, up 5.6%2 compared to the end of December
2022, driven by growth in France (+11.2%2), particularly in life
insurance (+11.7%), partially offset by (i) the 10.9% decline in
Italy, penalized by life insurance (-11.8%) due to competition from
Italian Government bonds, despite a 13.2% increase in property and
casualty insurance, and (ii) a 46.4% decline in the rest of the
world, mainly due to lower gross life insurance inflows in
Luxembourg, in competition with balance sheet savings.
In savings and retirement,
gross inflows amounted to €26.4 billion at the end of December
2023, up 4.4% year-on-year. The success of unit-linked bond
products and the acquisition of a significant group retirement
contract in the final quarter led to a high level of gross
unit-linked inflows of €12.2 billion (+15.1%). This performance was
partially offset by a 5.0% drop in the General Account inflows to
14.3 billion euros, in a context of sharp and rapid rise in
interest rates, which led to a switch with other savings products.
The share of unit-linked in gross inflows reached an all-time high
of 45.9% (+4.7 p.p. year-on-year); excluding the significant group
retirement contract, the share of unit-linked in gross inflows
would be 44.6%.
Net inflows stood at -0.3
billion euros, with positive net inflows of +6.1 billion euros on
unit-linked products offset by outflows on the General Account.
Life insurance assets under
management6 reached a record level of
€330.3 billion at the end of December 2023, including €95.4 billion
in unit-linked (+16.1% year-on-year, with an estimated market
effect of +4.7%) and €234.9 billion in General Account (-1.8%
year-on-year). As a result, unit-linked outstandings represented
28.9% of total assets at the end of December 2023 (+3.3 points
year-on-year). Thanks to the confidence of our policyholders who
entrust us with their savings, Crédit Agricole Assurances is a
leading institutional investor in the economy, in the territories
and in the ecological transition.
In order to provide our policyholders with the
best possible support in preparing for their retirement or building
up their assets, the 2023 average profit-sharing rate of Predica’s
Euro-denominated contracts has been increased by 50 bps to 2.80%,
with a possible increase to 3.85%. This is made possible in
particular by the mobilization of the policyholder participation
reserve (PPE), which amounted to €9.8 billion at the end of 2023,
representing 4.5% of Euro outstandings7.
In property and casualty, gross
written premium1 increased by 9.1%2 to €5.7 billion, driven by
portfolio growth of 3.5%, representing a net inflow of more than
540,000 policies over the year, as well as higher average premiums
due to price increases and changes in the product mix (notably
strong growth in crop insurance, in line with our desire to
strengthen the Pros and Farmers business). At the end of December
2023, the property and casualty portfolio comprised over 15.8
million policies.
Equipment rates of retail customers kept growing
in French Regional Banks (43.1%8 at end-December 2023, up 0.5 point
year-on-year), LCL (27.5%8 at end-December 2023, up 0.4 point
year-on-year), and CA Italia (18.8%9 at end-December 2023, up 2.0
points year-on-year).
In personal insurance / creditor
insurance / group insurance, gross written premium1 rose
by 8.3%2 to €5.1 billion, with growth in all segments. Creditor
insurance (+6.0%2) benefited from a higher backing rate, as well as
international single-premium contracts.
Personal protection performed well (+9.0%2), as
did group insurance10 (+24.9%) as part of our universal
bancassurance model for corporates.
STRONG GROWTH IN RESULTS DESPITE A
COMPLEX ENVIRONMENT
Crédit Agricole Assurances' net income
group share rose by 20.9%4 to 1,756 million euros3, thanks
in particular to life insurance in France (+30.3%), despite a high
climatic loss in the last quarter affecting property and casualty
insurance in France (-15.4%).
The combined ratio stood at
97.1%11 for 2023, up 1.8 point year-on-year, due to a high climatic
loss in the last quarter of 2023, while the discounting effect was
stable. The claims ratio net of reinsurance stood at 72.4%, up 2.0
points year-on-year. It includes 1.7% of natural catastrophes12,
down 0.5 point compared to 2022, as several significant climatic
events (including the November storms) did not fall within the
scope of the natural catastrophe compensation scheme in 2023.
Excluding discounting and unwind of discount effects, the net
combined ratio was 100.7% for 2023, compared with 98.8% for
2022.
The Contractual Service
Margin13 stood at €23.8 billion at the end of December
2023, up 9.5% year-on-year. It includes a stock revaluation effect
- excluding new business - of €1.9 billion. The total contribution
from new business of €2.3 billion, driven by an increased turnover
combined with buoyant financial markets, exceeds the allocation in
net income (€2.2 billion). As a result, the CSM allocation factor
was 8.5%14 for 2023.
SOLVENCY
At the end of December 2023, Crédit Agricole
Assurances once again demonstrated its strength, with a Solvency II
prudential ratio of 214%, up 10 points compared to December
2022.
RATING
Rating agency |
Date of last decision |
Main operating subsidiaries |
Crédit Agricole Assurances |
Outlook |
Subordinated debt |
S&P Global Ratings |
29 novembre 2023 |
A+ |
A |
Stable |
BBB+ |
HIGHLIGHTS SINCE THE LAST
PUBLICATION
- Crédit Agricole Assurances
increased the average profit-sharing rate of Euro-denominated
contracts to 2.80% and in its individual pension policies
(excluding PERP) to 2.99% by the end of 2023
- Pacifica, Property and Casualty
insurance subsidiary of Crédit Agricole Assurances, successfully
places its first Cat Bonds
- CAA announces it has completed the
acquisition of 65% of the share capital of Vera Assicurazioni, Vera
Protezione and Banco BPM Assicurazioni, launching the distribution
agreement with BBPM in non-life, personal protection and creditor
insurance in Italy
About Crédit Agricole
AssurancesCrédit Agricole Assurances, France's largest
insurer, is the company of the Crédit Agricole group, which brings
together all the insurance businesses of Crédit Agricole S.A.
Crédit Agricole Assurances offers a range of products and services
in savings, retirement, health, personal protection and property
insurance products and services. They are distributed by Crédit
Agricole’s banks in France and in 9 countries worldwide, and are
aimed at individual, professional, agricultural and business
customers. Crédit Agricole Assurances has 6,200 employees. Its
premium income (non-GAAP) to the end of 2023 amounted 37.2 billion
euros.www.ca-assurances.com
Press contactsNicolas Leviaux +33 (0)1 57 72 09 50
/ 06 19 60 48 53Julien Badé +33 (0)1 57 72 93 40 / 07 85 18 68
05service.presse@ca-assurances.fr |
Investor Relations contactsYael Beer-Gabel +33
(0)1 57 72 66 84Victoire-Emmanuelle Prud’homme +33 (0)1 43 23 90
66Valentin Lecomte +33 (0)1 43 23 59 76Gaël Hoyer +33 (0)1 57 72 62
22relations.investisseurs@ca-assurances.fr |
Appendix – Revenue analysis by geographic
area
Geographic area |
2023 revenues (1) In billion
euros |
2022 revenues (1) In billion
euros |
Change over 1 year At constant scope
of exchange rates |
France |
32.9 |
29.9 |
+11.2% |
Italy |
3.2 |
3.6 |
-10.9% |
Other countries |
1.1 |
2.1 |
-46.4% |
1 « Non GAAP » revenues2 At constant scope
excluding La Médicale3 The contribution to the net income group
share of Crédit Agricole S.A. amounts to €1,653 million. The
difference with Crédit Agricole Assurances' net income group share
is mainly due to consolidation restatements, including subordinated
(RT1) debt coupons for €89 million.4 Excluding the capital gain of
€101 million on the disposal of La Médicale in 2022. On a reported
basis, the change is +13.0%.5 Banking application of the Crédit
Agricole Regional Banks6 Savings, Retirement and Protection7 France
Life scope8 Share of customers having at least one contract in
automotive, household, health, legal, all mobiles or accident
insurance9 Share of CA Italia’s customers having at least one
contract marketed by CA Assicurazioni, non-life insurance
subsidiary of Crédit Agricole Assurances10 Excluding savings /
retirement11 P&C insurance combined ratio (Pacifica scope)
including discounting and excluding unwind of discount: (claims +
operating expenses + commissions) topremium income, net of
reinsurance12 Impact of undiscounted Cat Nat claims, all years, net
of reinsurance13 CSM or Contractual Service Margin : corresponds to
the profits expected by the insurer on the insurance activity, over
the duration of the contract, for profitable contracts, for
Savings, Retirement, Death and Disability and Creditor products14
CSM allocation factor = CSM allocation in P&L / [Opening CSM +
stock changes + New Business]
- CAA_CP_Activite_2023-Q4_EN_vdef
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