1. No category

La Mondiale
HALF YEAR 2014 EARNINGS
1
October 2014
Cautionary note
At half-year, La Mondiale does not produce full financial statements but only prepares a balance
sheet and an income statement. Auditors are not required and do not issue any audit or limited
review report on these financial figures. They have been presented and reviewed by La
Mondiale Board of Directors on September 25, 2014.
Certain statements contained herein may be forward-looking statements including, but not
limited to, statements that are predictions of or indicate future events, trends, plans or
objectives. Undue reliance should not be placed on such statements because, by their nature,
they are subject to known and unknown risks and uncertainties and can be affected by other
factors that could cause actual results and La Mondiale’s plan and objectives to differ materially
from those expressed or implied in the forward looking statements. Please refer to “La Mondiale
Rapport Financier 2013” for a description of certain important factors, risks and uncertainties
that may affect La Mondiale’s business and/or results of operations. La Mondiale undertakes no
obligation to publicly update or revise any of these forward-looking statements, whether to
reflect new information, future events or circumstances or otherwise.
Unless otherwise specified, financial statements are calculated in accordance
with IFRS as adopted by the European Union. Those relating to the solvency margin are,
according to regulatory rules, calculated with current French Gaap standards.
2
Contents
Key figures
page 4
Business activity
page 9
Financial performance
page 15
Invested assets
page 20
Appendix
page 25
3
KEY FIGURES
4
La Mondiale: Company Overview
• Founded in 1905
• Long story of sustained growth
• French Mutual Life Insurance Company
• In the capital market since 1989
• Strong positions on private wealth management market,
• Strong risk management and well diversified asset allocation
Group and Self Employed Retirement Plans
• Multi channel distribution networks
• La Mondiale is a member of a mutual insurance groups taking the
form of a Société de Groupe d’Assurance Mutuelle (SGAM) together
with AG2R Prévoyance under which it has committed to financial
solidarity with the members of the SGAM
SGAM AG2R LA MONDIALE
* These entities will be merged to AG2R Prévoyance by 12/31/2014
** La Mondiale Europa will be merged to La Mondiale Europartner by 12/31/2014
5
HY 2014 Summary
• Strong growth of premiums with significant increase in private wealth
management savings and a UL/€ mix above the market
• High net inflows in both UL and €
• Solid HY2014 net income and policyholder surplus reserve
• Equity, beyond € 3.1 billion, has doubled since 2008
• Core Solvency ratio (excluding unrealized gains) reaches 141%,
up 29 points since 2008
• Regulatory Solvency ratio up to 267%,
which represents an excess of almost € 3.5 billion
6
HY 2014 Key figures
In € million
HY 2013
FY 2013
HY 2014
HY14 /
HY13
Premiums
3,363
6,752
4,044
+20.3%
108
222
143
+31.7%
2,770
2,898
3,188
+15.1%
31.7%
29.5%
27.0%
-5 pts
Technical Provisions
57,847
61,411
64,608
+11.7%
Total Balance Sheet
69,803
73,257
79,714
+14.2%
Solvency I ratio
246%
250%
267%
+21 pts
Number of employees
2,794
2,852
2,856
+2.2%
Net Income
Equity
Gearing Ratio
(1)
(1/2)
(1)
Financing debt / total equity
7
HY 2014 Key figures
(2/2)
Equity (in € million)
Net results (in € million)
3,500
350
3,000
300
2,500
250
2,000
200
1,500
150
1,000
100
500
50
0
0
2006
2007
2008
2009
2010
2011
2012
2013
HY2014
2006
2007
Technical reserves (in € million)
2008
2009
2010
2011
2012
2013
HY2014
Solvency Margin
70,000
246%
250%
267%
60,000
189%
50,000
183%
175%
156%
40,000
175%
136%
112%
30,000
20,000
106%
110%
2006
2007
112%
114%
116%
125%
0
2007
2008
2009
2010
2011
2012
2013
130%
139%
141%
Regulatory Solvency Margin
Core Solvency 1 Margin
SCR Solvency 2 Margin
10,000
2006
142%
HY 2014
2008
2009
A Resilient Business Model & Capitalisation
2010
2011
2012
2013
HY2014
8
BUSINESS
ACTIVITY
9
HY 2014: Business activity
Premiums (in € million)
6,752
Total
Savings
Pension
4,044
4,835
3,363
Claims : back to normal after 2 years of high level for the
market as a whole
2,995
2,364
1,720
951
846
€
UL
Premiums : +20% compared to HY 2013, UL/€ mix 6pts
above the French market (22%/78% vs 16%/84%)
Savings : +27%
Pension : +12% (+4% without outstanding
premiums) :
HY 2013
FY 2013
HY 2014
78%
22%
79%
21%
78%
22%
Net inflows : +40% compared to HY 2013, with a stable
UL/€ mix : 35%/65%
Liabilities : +5% compared to FY 2013 with a stable UL/€
mix : 28%/72%
Net inflows (including arbitrations, in € million)
2,835
Net Inflow s
Liabilities (in € million)
70,000
€
60,000
Unit Linked
1,947
50,000
1,393
1,837
40,000
1,268
727
666
HY 2013
€
UL
52%
48%
Unit Linked
30,000
998
679
FY 2013
HY 2014
65%
35%
65%
35%
20,000
Guaranteed
Contracts
10,000
0
2006
2007
2008
2009
2010
2011
2012
2013 HY14
10
HY 2014: Core businesses’ financial structure
Outstanding liabilities
€ 64.6 billion
Unit Linked
28%
Liabilities +5.2% compared to FY2013
Guaranteed contracts : +4.9%
Unit linked : +6.0%
Outperformance of the market for both guaranteed contracts
(+3.8%) and UL (+9.7%)
Guaranteed
Contracts
72%
Liabilities by products
€ 64.6 billion
Protection
2%
Individual
Pension
12%
Retail Savings
6%
Stable UL/€ mix at 28%/72% (above the French market at
17%/83%)
New business : HY2014 new business amounts 56% of
FY2013 new business
New business breakdown (APE)
€ 295 million
Retail Savings
1%
Individual
Pension
15%
Group Pension
10%
Group Pension
25%
Private Wealth
Management
72%
Private Wealth
Management
55%
11
EARNINGS,
PROFITABILITY
AND SOLVENCY
12
HY 2014: Earnings and profitability
Cumulated net results (in € million)
Policyholder surplus reserve* (in € million)
1,800
800
1,600
1,400
1,200
2.00%
1.75%
143
HY2014
700
222
2013
600
310
1.58%
500
1.40%
1.20%
1.13%
1.20%
0.95%
400
1,000
0.73%
2011
300
800
600
100
2009
2008
2007
2006
172
68
123
111
200
0
683
760
167
1.00%
0.80%
0.60%
431
291
400
706
0.58%
200
2010
335
1.80%
1.60%
2012
227
1.68%
356
0.40%
234
0.20%
0
0.00%
2007
2008
2009
2010
2011
Profit-sharing reserve
2012
2013
HY2014
in % of insurance liabilities
Return on equity (ROE)
25%
19%
20%
14%
12%
15%
11%
9%
10%
8%
10%
5%
HY2014 net result : € 143 million
Increase of policyholder surplus reserve by € 77 million
Cumulated net results of € 1,710 million since 2006,
including two financial crisis
Policyholder surplus reserve : € 760 million : 1.68% of
insurance liabilities (guaranteed contracts)
5%
0%
2007
2008
2009
2010
2011
2012
2013
HY2014
13
* Savings and Pensions surplus reserve
HY 2014: Equity
Equity: +10.0%
Equity (in € million)
HY net result
€ +143 million
Fair value adjustment
Equities
Bonds
Other investment
€ +147 million
€ -13 million
€ +162 million
€ +2 million
€ +290 million
+147
0
+143
Change and other impacts
€ 0 million
Equity (in € million)
3,500
3 188
2 898
3,000
×2.3
2,500
2,000
1,500
1,000
500
2013
HY 2014
net result
Fair value
adjustment
Other
impacts
HY2014
0
2006
2007
2008
2009
2010
2011
2012
2013
HY2014
14
HY 2014: Solvency margin
Regulatory Solvency Margin (in € million)
Other Subordinated
Debt *
Core Solvency Margin (in € million)
141%
8,793
202
Other unrealized
gains *
+35 pts since 2006
424%
139%
130%
2,925
2,761
3,052
Eligible unrealized
gains
125%
2,399
116%
267%
Eligible Subordinated
Debt
Core eligible
elements
2,140
114%
2,614
Ow n funds
Solvency Capital
Requirement
2,075
1,925
112%
899
1,696
110%
141%
2,075
1,839
106%
1,473
1,381
2,026
Eligible elements
1,654
1,705 Solvency capital
requirements
2010
2011
1,491
1,218
1,254
Solvency Capital
Requirement
1,980
1,317
1,152
2006
2007
2008
2009
2012
2013
HY2014
• Core S1 margin has continued to improve in HY2014 (+2pts vs 2013), including the growth of eligible
subordinated debt (€ 899 million vs € 857 million at the end of 2013).
• Other Subordinated debt represents € 202 million vs € 239 million at the end of 2013. This debt will be eligible
following the growth of the Solvency Capital Requirement.
• Core solvency margin has increased by 35 points since 2006.
15
* Other Subordinated Debt and Other unrealized gains temporary above
regulatory ceiling
Subordinated redemption profile
Subordinated debt after 2013 restructuring
(in € million)
Issue date
Instrument Ccy
Nominal
(in € million)
Coupon
pre-call
Coupon postcall
Next call
date
02/10/2003
PerpNC10
EUR
51.23 / 400
5.875%
3mE + 270
Quarterly
25/11/2005
PerpNC5
EUR
91
09/11/2006
PerpNC10
EUR
150 / 200
15/04/2013
PerpNC6
USD
600
24/04/2013
31NC11
EUR
331.7
€ +5 million
1,096
1,101
38
38
435
439
3mE+105 3mE+205
25/11/2015
5.11%
3mE + 213
15/11/2016
7.625%
6yr MS + 753
23/04/2019
6.75%
3mE+604
25/04/2024
Maturity breakdown (by 1st call date, in € million)
332
332
51
51
150
150
439
332
51
91
91
FY13
HY14
2014
91
2015
150
38
2016
…
2019
Undated subordinated notes
…
2024
…
perpetual
Dated subordinated notes
16
INVESTED ASSETS
17
A diversified asset allocation
•
Asset allocation
(excl. unit-linked assets)
Assets under management have grown significantly over the last
decade at an average annual growth rate of +11% since 2006
•
La Mondiale’s sound asset allocation is key and enabled La Mondiale
to perfectly accommodate the recent two crisis (2008 and 2011)
without a significant P&L or solvency impact
•
La Mondiale kept a de-risking and diversified asset allocation over
the years
•
Sovereign exposure represents less than 25% of total bond exposure
o/w 65% exposure to France and 17% to peripherals.
Market values
(in € million)
Property
Equity
Bonds
Others
Total
FY 2013
HY 2014
2,740
4,436
42,926
113
2,642
5,252
47,038
358
%
(as of HY14)
4.8%
9.5%
85.1%
0.6%
50,215
55,290
100.0%
Historical asset allocation
(net book values)
100%
40 bn
35 bn
Property
Equity
30 bn
80%
Bonds
25 bn
60%
20 bn
40%
15 bn
10 bn
20%
5 bn
0 bn
0%
2006
2007
2008
2009
2010
2011
2012
2013
HY2014
2006
2007
2008
2009
2010
2011
2012
2013
HY14
18
Bonds – A Low risk asset allocation
Credit Exposure by Credit Rating*
Others
BBB3%
BBB 2%
7%
BBB+
6%
Total Bond exposure is at € 47.0 billion
AAA
17%
Total portfolio
average rating :
A+
A8%
AA+
24%
A
13%
A+
8%
AA5%
Limited exposure to risky investments with as less
than 18% of the investments currently rated BBB+ or
below
An estimated 15-year liabilities duration is a key
strategic element of our asset management policy
Unrealised capital gains :
FY 2013 :
€ 2,866 million
HY 2014 : € 5,137 million
AA
7%
Credit Exposure by Issuer Type
Portfolio by maturity band
40.0%
Sovereign
24%
Other
corporates
21%
35.0%
30.0%
25.0%
Sub
Financials
7%
20.0%
15.0%
Guaranteed
government
bonds
4%
10.0%
5.0%
0.0%
< 1 year
> 1 year to
3 years
> 3 to 5
years
> 5 to 7
years
> 7 to 10
years
> 10 to 30
years
* Second best rating methodology consists of using the second best rating
awarded to an issue by the three leading agencies, S&P, Moody's and Fitch
Senior
Financials
16%
Covered
bonds
16%
Supra /
Agencies
12%
19
Equities – Long term performance
Equities performance
Total Equities exposure is at € 5.3 billion
140
130
HY2014 performance at 5.0%, after 24.6%
performance in 2013.
120
110
100
An equity portfolio well diversified by geography and
sector
90
80
70
Y2
01
4
H
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
60
La Mondiale Equity
Euro Stoxx 50 (incl. dividends)
A focus on large liquid equity stocks traded on the
main exchange markets
Unrealised capital gains :
FY 2013 :
€ 328 million
HY 2014 :
€ 355 million
Breakdown by sector
Breakdown by countries
Other
USA 9%
4%
Switzerland
10%
Consumer Goods
France
54%
Financial Instit.
Industry
Health
Oil and Gas
Serv ices
Commodities
Germany
11%
TMT
La Mondiale Equity
Euro Stoxx 50
Local Gov ernment.
Technology
U.K.
12%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
20
Property – Resilient return
Geographic breakdown
3%
3%
Total Property exposure is at € 2.6 billion
La Mondiale property assets represent 457,000.00 sq.m.
and are mainly offices located in the center of or in
Western Paris, i.e. only Prime Real Estate
Paris and Paris
region’s offices
Other offices in
France
Rental yields largely outperforms the fixed income
markets even though they have been trending slightly
downwards recently
Paris and Paris
region’s homes
94%
Unrealised capital gains :
FY 2013 :
€ 606 million
HY 2014 :
€ 562 million
Property as asset diversification
Annual revenue (€ per sq.m)
260
500
450
240
400
220
350
200
300
180
250
160
200
Property (IEIF
index)
European
equities
7-10Y bonds
140
150
Indexed
bonds
120
100
100
50
0
2006
2007
2008
2009
2010
2011
2012
2013
80
Dec-03
Cash
investments
Sep-06
Jun-09
Mar-12
Dec-14
21
APPENDIX
22
Overview of La Mondiale Balance sheet
HY 2013
FY 2103
HY 2014
%Change
HY 2014/
HY 2013
TOTAL ASSETS
69,803
73,257
79,714
+14.2%
Intangible assets
60
57
54
-10.4%
ow. Goodwill
40
42
41
+3.0%
Insurance investments
51,145
52,818
58,316
+14.0%
Unit Linked investments
15,372
17,426
18,415
+19.8%
3,021
2,587
2,434
-19.4%
205
370
495
+142.0%
€ million
Others assets
Cash and cash equivalent
HY 2013
FY 2103
HY 2014
%Change
HY 2014/
HY 2013
TOTAL LIABILITIES
69,803
73,257
79,714
+14.2%
Equity Group Share
2,466
2,575
2,840
+15.2%
304
323
349
+14.8%
2,770
2,898
3,188
+15.1%
879
855
860
-2.2%
60,250
64,278
69,542
+15.4%
5,904
5,225
6,123
+3.7%
€ million
Minority Interests
Total Equity
Financing debt
Insurance and financial liabilities
Other liabilities
23
Overview of La Mondiale P&L account
HY 2013
FY 2103
HY 2014
%Change
HY 2014/
HY 2013
Revenue
3,363
6,752
4,044
+20.3%
Financial Products
1,129
2,322
1,205
+6.7%
Current operating income
4,753
10,847
6,507
+36.9%
-4,579
-10,470
-6,292
+37.4%
Operating Income
174
377
215
+23.9%
CONSOLIDATED NET RESULT
108
222
143
+31.7%
o.w Group share
96
199
129
+34.2%
o.w Minority Interest
12
23
14
+12.0%
€ million
Current operating expenses
24
Contact details
Management
André Renaudin
Chief Executive Officer
Sylvain de Forges
Deputy Chief Executive Officer
David Simon
Chief Financial & Risk Officer
[email protected]
+33 1 76 60 87 41
Jean-Louis Charles
Chief Investment Officer
[email protected]
+33 1 76 60 99 91
La Mondiale
104-110, boulevard Haussmann, 75008 Paris - France
Investor Relations - Contact: [email protected]
http://www.ag2rlamondiale.fr
25