June 2009 - Covéa business model proves its worth in 2008

Covéa reported solid results in 2008 thanks to further growth in all three brands, efficient financial management, and a group-centred approach. The annual results bolster the group’s financial soundness.

“Covéa’s financial position was stronger at the end of 2008. The group was able to apply a long-term financial management strategy and proved remarkably resilient in terms of business activity. Its group-centred approach is a key tool for improving competitiveness at the different brands,”
said Thierry Derez, Chairman and CEO of Covéa.

One in four French households insured by a Covéa company

Solid sales momentum at MAAF, MMA and GMF allowed Covéa to win more than 150,000 new customers and expand its portfolios in all markets:

• 160,000 additional vehicles, for a total of 9.5 million motor policies,
• 140,000 additional homes, for a total of 6.2 million multi-risk home policies.

The group also has:

• 1.7 million individual health insurance customers,
• 1.8 million savings contracts,
• 2 million legal insurance policyholders.

In all, Covéa ended the year with 10.2 million insured members and customers (+1.5%) in the French market.

It consolidated its leadership in asset and liability insurance, its number three ranking in commercial insurance and number four position in individual health insurance.

Increase in property and casualty premiums

Even as the insurance market contracted by 9% in 2008, Covéa’s earned premiums held at €12.1 billion.

This reflected a 3% increase in non-Life premiums and a limited downturn in the Life segment (premiums down 7.6% in a market down 10.6%).

Equity boosted and solvency margin maintained at a high level

In spite of pricing pressure, the group was able to keep its technical results under control.

Net profit reached €336 million, a satisfactory level given the impact declining markets had on net financial income.

These results allowed Covéa to boost its capital and reserves by 3.9% to €7,574 million.

Its regulatory solvency ratio ended the year at 305% including unrealised capital gains. Excluding unrealised capital gains, the margin was 231%.

Covéa enhancing competitiveness for the three banners

A group-centred approach, leveraging a size effect and creating significant potential for streamlining and mutual enhancement, helped make MAAF, MMA and GMF more competitive.

Below are a few examples of concrete benefits generated in 2008 for insured members and customers:

• Fidélia Assistance became the provider of assistance services for all group banners and subsidiaries on 1st January 2009. Fidélia is number three in France.
• Coventéo: Covéa was able to put the Coventéo model for anticipating weather events and their consequences to the test during the Klaus and Quinten storms.
• Opening of two new “Houses for Four” in the Eure and Loir department. Covéa’s actions in favour of cranial trauma patients will continue at a steady pace in the years ahead, with around 40 such homes to be opened over the next five years.
  

The accounts will be submitted for approval by the General Meeting of 25 June 2009.

Media contact:

Françoise Ickowicz - +33 (0)1 53 10 65 10
Marie-Pierre Michel - +33 (0)1 53 10 63 57