Between January and the end of September, the group recorded a net profit of 918 million euros, against 987 million euros over the same period in 2019.
CNP Assurances, one of the main life and health insurers in France, reported on Thursday a net profit down 7% over the first nine months of the year, a decrease mainly linked to the effects of the health crisis in the ‘Hexagon.
Between January and the end of September, the group recorded a net profit of 918 million euros (991 million francs), against 987 million euros over the same period in 2019, the company said in a press release.
At constant scope and exchange rates, the decrease amounted to 4.5%.
“The financial and health crisis linked to the Covid 19 epidemic has had limited impacts at this stage,” said Antoine Lissowski, general manager, quoted in the press release.
Turnover however plunged 25.7% to 18.6 billion euros in the first nine months of the year.
CNP Assurances estimates the effects of the crisis at 3.5 billion euros, including 2.4 billion for France, which represents nearly two-thirds of the group’s activity.
In France, the fall in turnover was concentrated in the savings / retirement business (-37%), with the provident / protection business only falling by 3.4%.
In addition to the effects of the health crisis, with the closure of agencies in the spring, “the policy of restrictions on access to euro funds” of life insurance has weighed on turnover to the tune of 1.5 billion.
The group is gradually reorienting its stock of contracts in euros towards units of account (UC), investments in euro funds, made largely on bonds, now proving to be costly in times of very low interest rates. The units of account, potentially more profitable, are also more risky for the saver.
The share of CUs in France fell from 20.2% twelve months ago to 24.4% at the end of September 2020.
In Latin America, where the group is firmly established, sales suffered from the collapse of the Brazilian real, with turnover down 22.8% while activity increased by 1.1%.
However, this negative currency effect did not affect the level of the group’s profit, which is always hedged against this variation risk. “The coverage has played” and CNP Assurances is “immune to this decline,” said Thomas Béhar, Group Chief Financial Officer, during a conference call.