Business growth and improved financial strength in 2019
“Our results in 2019 were satisfactory and in line with targets. Against the backdrop of an unprecedented crisis, with devastating health, economic and social effects, the Group’s robustness is essential as never before. It fuels the strong commitment of all Group entities to our members and customers, ensuring that we are able to build for the future, guided at all times by our core mutualist values.” Thierry Derez, Covéa's Chairman and Chief Executive Officer.
Business growth in France and in international markets
In 2019, the Group’s earned premiums rose 2.8% to €17.4 billion. Insurance activities in France accounted for 88% of the Group’s business, with earned premiums up 2.1% to €15.2 billion.
Earned premiums generated by the Group’s international subsidiaries reached €2.2 billion.
For international subsidiaries, earned premiums amounted to €2.2 billion, an increase of 7.7%, representing 12.4% of the Group’s business. The subsidiaries in Italy and the United Kingdom, Covéa’s main operations outside France, were the key contributors to this growth.
Net income: further improvement in technical fundamentals
Net income (Group share) totalled €858 million at 31 December 2019.
Balance sheet: improved financial strength
The Group’s combined equity, the guarantee of its commitments made to members, amounted to €16 billion.
The fair value of the Group’s financial investments amounted to €111 billion, with €14 billion in unrealised capital gains. To bring its long-term investment strategy to fruition, Covéa relies on the expertise of both Covéa Finance, its investment management company, and Covéa Immobilier, its property investment arm.
The solvency ratio of 406% reaffirms Covéa’s financial strength and illustrates the Group’s capacity for enduring resilience. In accordance with regulatory requirements, it integrates the profit-sharing reserve, which accounts for 18 points of the ratio.
On 27 May 2019, Moody’s awarded Covéa Coopérations a Financial Strength Rating of Aa3, with a stable outlook.
On 21 January 2020, S&P Global Ratings raised the Financial Strength Ratings of Covéa’s rated companies from ‘A+’ to ‘AA-‘, all with a stable outlook.
The financial statements will be submitted for shareholder approval at the Annual General Assembly on 30 June 2020.
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