Paris Launch, May 3, 2024
Good business dynamics
MAIN FIGURES FOR THE 1st quarter of 2024:
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Total yield1 of 12.3 billion euros, an increase of 5.2%
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Net inflows of +1.0 billion euros
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Property and casualty portfolio growth of 3.4% year on year
“In the 1st quarter, Crédit Agricole Assurances achieved good results in France and abroad, driven by dynamic growth in all its business lines. We are pleased to inform you that the measures taken in Italy and Luxembourg, in life insurance, have led to a significant improvement in activity. The beginning of the year was also marked by the continued development of our societal project, which aims, in particular, to act on the transition to a low-carbon economy, as illustrated by the launch of the first Article 9 Euro fund on the market, and by our investment in Murfy, a social and solidarity company specializing in the repair and reconditioning of household appliances, through Pacifica, our property insurance subsidiary. These two innovations confirm our actions in favor of the environment and climate, while creating added value for our customers and society.
I would like to thank all our employees and partners for the excellent start to the year, as well as for their mobilization and commitment.”
Nicolas Denis, CEO of Crédit Agricole Assurances
ROBUST BUSINESS GROWTH WITH RECOVERY IN INTERNATIONAL SALES
In the first quarter of 2024, Crédit Agricole Assurances recorded premiums1 of 12.3 billion euros, an increase of +5.2% compared to the end of March 2023, driven by the recovery of international life insurance (+52.5%), mainly in Italy and Luxembourg, and by the growth in non-life insurance in France (+8.0%), partially offset by the fall in life insurance in France (-2.7%).
In savings and retirement, gross inflows reached 8.6 billion euros at the end of March 2024, an increase of +4.3% compared to the end of March 2023. Payment bonus campaigns, launched during the first quarter, contributed for a strong level of gross inflows into the General Account at €5.2 billion (+17.2%). This dynamic was partially offset by a -11.1% decline in unit-indexed gross inflows, to €3.3 billion, in connection with less favorable market conditions, in particular a weaker attractiveness of unit-indexed bonds. Consequently, the share of unit-linked units in gross inflows fell to 39.1% (-6.7 points year-on-year).
Net inflows were +1.0 billion euros, a strong improvement compared to the first quarter of 2023, driven mainly by lower outflows in the General Account. Net inflows amounted to +1.5 billion euros in unit-linked products and -0.5 billion euros in the General Account.
Life insurance outstandingtwo set a new high of €334.9 billion at the end of March 2024, thanks to a positive market effect and net inflows. They include 98.7 billion euros in unit-linked (+3.4% in three months) and 236.2 billion euros in General Account (+0.6% in three months). Unit-linked reserves represented 29.5% of the total life insurance balance at the end of March 2024 (+0.6 points compared to the end of December 2023).
In property and casualtythe momentum continued with revenue1 increased +7.9% compared to the end of March 2023, reaching 2.4 billion euros. The portfolio grew +3.4% to almost 16.0 million contracts, representing a net contribution of more than 530 thousand contracts in one year; the average premium increases due to price revisions and changes in the product mix.
Equipment fees in the Crédit Agricole Group’s banking networks continued to grow in French regional banks (43.4%3 at the end of March 2024, i.e. +0.5 annual points), LCL (27.8%3 in March 2024, i.e. +0.4 points annually) and CA Italia (19.3%4 in March 2024, i.e. +2.0 points annually).
In personal protection (death and disability/creditor/group insurance), gross premiums written1 increased by +6.0% compared to the end of March 2023, to 1.3 billion euros. With a slight decline of -0.1%, creditor insurance activity remained resilient thanks to a stock effect that offset the drop in new business.
Individual death and disability insurance (+15.2% year-on-year) and group insurance5 (+21.8% year-on-year) recorded a strong performance.
GROWING EARNINGS DRIVED BY ACTIVITY AND FAVORABLE CLIMATE AND MARKET CONDITIONS
Contribution from Crédit Agricole Assurances for Crédit Agricole SA, the Group’s Net Profit was 494 million euros, an increase of 4.1% year-on-year. This is driven by a good performance in the insurance business (namely with an increase in CSM allocation resulting from increased balances) and a favorable tax effect, despite a decline in financial revenues due to a base effect related to the transition to IFRS 17, as of January 1, 2023.
O combined proportion6 stood at 93.8%, a drop of -0.9 points compared to the previous year, thanks to the favorable impact of the discount, while the weather accident rate remained stable. Excluding the effect of the discount, the net combined ratio remained stable at 96.2% (-0.1 points year-on-year).
O Contractual service margin7 stood at 23.9 billion euros at the end of March 2024, a slight increase compared to December 31, 2023 (+0.2%), benefiting from the contribution of new businesses in a market context favorable to savings and the reform.
ASSESSMENT
| Valuation Agency | Date of last decision | Main operating subsidiaries | Crédit Agricole Assurances | Panorama | Subordinated debt |
| S&P Global Ratings | November 29, 2023 | ONE+ | A | Stable | BBB+ |
HIGHLIGHTS SINCE THE LAST PUBLICATION
About Crédit Agricole Assurances
Crédit Agricole Assurances, the largest insurer in France, is the company of the Crédit Agricole group, which brings together all the insurance businesses of Crédit Agricole SA Crédit Agricole Assurances offers a range of products and services in savings, retirement, health, personal protection and insurance proprietary products and services. They are distributed by Crédit Agricole banks in France and in 9 countries around the world, and are aimed at private, professional, agricultural and business customers. Crédit Agricole Assurances has 5,800 employees. Its premium income (“non-GAAP”) at the end of 2023 amounted to 37.2 billion euros.
www.ca-assurances.com
1 ” No-GAAP » revenue
two Savings, Retirement and Protection (funeral)
3 Percentage of customers with at least one car, home, health, legal, all mobile or accident insurance contract
4 Percentage of CA Italia customers who have at least one contract marketed by CA Assicurazioni, the non-life insurance subsidiary of Crédit Agricole Assurances
5 Excluding savings/retirement
6 Combined P&C Insurance Index (Pacifica scope) including discount and exclusion no discount, reinsurance net: (claims + operating expenses + commissions) for premium income
7 CSM or Contractual Service Margin: corresponds to the profits expected by the insurer in the insurance activity, throughout the duration of the contract, for profitable contracts, for Savings, Retirement, Death and Disability and Creditor products
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