CNP Assurances - Investor Presentation slide image

CNP Assurances - Investor Presentation

RECOGNIZED FINANCIAL STRENGTH MOODY'S A1 Stable outlook November 2019 Latest update CNP Assurances - Investor Presentation - March 2020 S&P A Stable outlook December 2019 Latest update "CNP Assurances' credit profile is supported by (1) the group's very strong market position in the French life insurance market, (2) a low liability risk profile thanks to a low average guaranteed rate on traditional savings products, (3) a very stable level of profitability, as well as (4) a very good financial flexibility, in part owing to a strong shareholder, Caisse des Dépôts et Consignations (Aa2 positive), that will remain a key indirect shareholder within the new shareholding structure" [Credit Opinion - 7 Nov. 2019] "On 4 June, the French bank BPCE (A1/A1 stable, ba11) announced its plan to extend its distribution agreement with CNP Assurances (financial strength A1 stable) until December 2030 from December 2022 and remain a long- term shareholder in CNP. The plan is credit positive for CNP because the insurer will retain access to a large banking network, supporting its market position and profitability." [Issuer comment - 11 June 2019] "CNP Assurances holds a prominent position in the French life insurance market (...). It benefits from profitable joint ventures in Europe and Latin America, which generated 24% of the group's net profit at half-year 2019. CNP Assurances' book of business predominantly comprises capital-intensive savings products, which have relatively low margins. Nevertheless, we have observed a shift in the business mix over the past few years toward life-protection and unit-linked. We expect revenues from life-protection contracts to remain robust.". "The French government has announced plans to combine CNP with La Banque Postale to form a large public sector- owned financial services hub from the first quarter of 2020. We expect the ongoing support to CNP from Caisse des Depots et Consignations will moderate, but remain in a more indirect way, with La Poste group playing a leading role as a primary shareholder. We believe this transaction will not transform the historical model of CNP Assurances as an independent and multi-partnership bank-insurer". [Full Analysis - 18 December 2019] 38
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