A HUMAN ADVENTURE, A MUTUAL ADVENTURE - Covea · A HUMAN ADVENTURE, A MUTUAL ADVENTURE ... Joaquim Pinheiro Managing Director, Indemnities ... Laurent Tolli é Managing Director

A HUMAN ADVENTURE,A MUTUAL ADVENTUREHow we support 11.5 million people in France

2016 BUSINESS REPORT

Covéa, a unique model...

REINSURANCE

PROPERTY AND LIABILITY INSURANCE

HEALTH AND PROTECTIONLIFE INSURANCE

IP A

ND

AFF

ILIA

TED M

UTUAL COMPANIES

SUBSIDIARIES AND SHAREHOLDINGS

INTERNATIONAL

LA RÉFÉRENCE QUALITÉ PRIX

... based on MAAF, MMA and GMF, three strong brands with unique backgrounds and different positioning, but bound together by shared values.

THE LEGAL EXPENSESINSURANCE EXPERTS

INVESTMENT AT THE SERVICEOF INSURANCE

THE ASSISTANCE EXPERT

Every day we progress in each of our areas of action,

with a single purpose: accompanying, helping and

supporting the people who rely on us, our brands,

our subsidiaries and our Group, to protect their loved

ones, property and life plans. We know that we can

meet their expectations because...

WE ARE COVÉA.

WE ARE

COVÉA

WE ARE PASSIONATE ABOUT OUR PROFESSION. WE EMBODY AND SHAPE

A UNIQUE MODEL.WE PLACE PEOPLE AT THE CORE OF WHAT WE DO.WE GIVE THE BEST OF OURSELVES TO INNOVATE.

COVÉA, THE MUTUAL COMMITMENT

REINSURANCE

HEALTH AND PROTECTIONLIFE INSURANCE

2016 BUSINESS REPORT • 1

16

CONTENTS

We have...a feel for the business

We share...the performanceof a uniquemodel

17 - Property and Liability

21 - MAAF22 - Health and protection 24 - MMA25 - Insurance

for self-employed professionals and companies

26 - Life insurance27 - GMF 28 - Legal protection29 - Reinsurance 30 - International

04 - The editorial by Thierry Derez

06 - Key figures07 - Governance10 - Our Organisation12 - Our Human Resources14 - Our Asset Management

3

31

We chose...progress as a driver

32 - Technology serving people

34 - The company’s new innovation tools

38 - Consolidated accounts 2016

2 • 2016 BUSINESS REPORT

THE PERFORMANCEOF A UNIQUE

MODEL

WE SHARE...


Covéa, a single enterpriseThierry Derez, Chairman and Chief Executive Officer

Covéa, a single enterprise 2016 saw the successful completion of Covéa’s new, simpler and more efficient, transversal organisation. The year was also marked by work to create an equitable common status for all group employees that is economically viable and attractive to new talent. This new harmonised working environment will facilitate collaboration and open up new prospects for the 21,000 women and men who work each day in France to serve our 11.5 million customers and members. Covéa has thus become a single enterprise, with three strong brands, MAAF, MMA and GMF.

2016 was also a year focused on building our staff’s digital culture, a major lever for transforming the Group’s operational model and modernising its business tools and practices so as to support our customers at each key moment with greater speed and efficiency.

Covéa, an agile enterprise We are now ready to rise to the challenges ahead – and to those facing the entire insurance industry – in ever more demanding economic and regulatory

conditions, an extremely competitive environment and a fast-evolving society.

Ever since its creation, Covéa’s goal has remained unchanged: to strengthen the solidity of our mutual companies and their positions in the market. We want to ensure the best possible insurance experience for our members and customers, providing attractive products and services, rapid response, simplicity, originality, close contact and availability. As well as ensuring customer satisfaction, we aim to maintain our leadership in the Property & Casualty and Liability insurance markets and continue to attract professional and business customers.

Covéa, an innovative enterpriseChanges in consumer habits , the development of connected things and the emergence of new means of communication and contact are impacting our business. Insurance has always adapted to evolving risks. For several years now we have been mobilising our staff to make the most of the huge field of possibilities provided by big data, with the aim of improving our knowledge of our members and customers, their needs and the risks they face.

The collaborative economy gives us the opportunity to adopt a different approach to management and to insurance cover. Since November 2016, GMF’s motor insurance policyholders can enjoy from additional cover for car sharing. An offer created by Covéa of which MAAF and MMA may also benefit their members and customers.

Insurance is the science of risk supported by capital. Our financial solidity and expertise are therefore real advantages. It is up to us to predict market developments, to be capable of reassessing our approach and accepting change while focusing on profitable growth.

In a changing and uncertain environment, and in the face of growing competition, Covéa is pursuing its strategy of transformation into a single enterprise and of adaptation through innovation.

We want to ensure the best possible insurance experience for our members and customers.”



11.5

2,657 26,000

29%71%21,000

¤2

1.6 1.3

10.5 7.8

16.3 billion

Turnover

France International

825 million

Group net result (portion of the Group)

members and customers

points of sale in France employees,

including over

in France

Nearly

Life insuranceNon-life insurance

Property and liability Health and Protection Individual Life Other

individual health customers

collective health customers

insured vehicles

insured homes

13.4 billion

Equity capital(portion of the Group)

104.8 billion

Financial investments(in realizable value)

351%Solvency ratio

Key figures at 31 December 2016

CONSOLIDATED ACCOUNTS in euros

TURNOVER France/Abroad

BREAKDOWN OF TURNOVER by activity in France, in million euros

SPLIT OF NON-LIFE AND LIFE BUSINESS

PORTFOLIOS IN FRANCE in million

RESOURCES

¤14.3billion

1,806

Private Risks

3,647

Motor

2,670

Commercial

1,830 6153,726

billion


Thierry DerezJean-Claude SeysJean-Michel BanlierArnaud BillonJean-Claude BiscouPhilippe DebenestSerge DussaussoisRémy Verges

Assurances Mutuelles de France represented by Jean-Marie Meckler

Assistance Protection Juridique represented by Jean-Pierre Gualezzi

APGIS represented by René Thomas

DAS Assurances Mutuelles represented by Hélène Béjui-Hugues

FIDELIA Assistance represented by Xavier Dejaiffe

Force et Santé represented by Michèle Beyt

La Garantie Mutuelle des Fonctionnaires represented by Hubert Ivanoff

GMF Assurances represented by Jean-Marie Iché

GMF Vie represented by Christiane Maurech

MAAF Assurances represented by Michel Castagné

MAAF Assurances SA represented by Bernard Barbottin

MAAF Santé represented by Charles Zanoni

MMA IARD Assurances Mutuelles represented by Michel Coursat

MMA IARD represented by Anne-José Fulgéras

MMA Vie Assurances Mutuelles represented by Christophe Guettier

MMA Vie represented by Mario Colaiacovo

Prony Habitations represented by Christian Delahaigue

La Sauvegarde represented by Jean Fleury

SMI represented by Gérard Dufour

Téléassurances represented by Marie-France Orti

Jean Fleury Chairman La Sauvegarde

Bernard Barbottin MAAF Assurances SA

Michèle Beyt Force et Santé

Michel Coursat MMA IARD Assurances Mutuelles

Christian Delahaigue Prony Habitations

Anne-José Fulgeras MMA IARD

Hubert Ivanoff La Garantie Mutuelle des Fonctionnaires

Marie-France Orti Téléassurances

Jean-Jacques Vouhé

Board of Directors at 31 December 2016

Audit Committee at 31 December 2016

Governance


A human adventure, a mutual aventure

Didier BazzocchiManaging Director, Health/Protection

and Institutional Partnership

5

Édouard VieillefondDirector Life Insurance

8

Amaury de HauteclocqueDirector, Social Affairs

and Identity Group

10

Pierre MichelGroup Reinsurance Director

1

Éric LecuyerDirector Actuaries,

Control and Economic Steering Committees

2

Michel GougnardManaging Director,

Human resources & Internal Communication

3

Stéphane DurouleManaging Director MAAF

6

Philippe Maso Y Guell RivetManaging Director, Technology

and Information System

11

Hervé FrapsauceManaging Director MMA

12

12

7

Bertrand LefebvreKey function,

Group Internal Audit

Maud PetitManaging Director, Accounts and Financial Communication

9

9

Françoise TordjemannDirector, External

and Institutional Communication

4

Lionel CalvezKey function, Risk Management

13

13

Executive Committee at 31 March 2017

12

3

8

10 11

4

5

6

7


A human adventure, a mutual aventure

Joaquim PinheiroManaging Director, Indemnities

Assistance Services

16

16

Jérôme RoncoroniKey function, Compliance

21

21

Antoine ErmeneuxDirector, Strategic Marketing

and transformation

15

15

Sophie BeuvadenManaging Director, Investments

and Risk Control

20

20

Paul EsmeinChief Advisor

17

17

Patrice ForgetManaging Director, General Secretariat & International

22

22

Laurent TolliéManaging Director GMF

18

18

Christian BaudonManaging Director, Insurances

23

23

Thierry DerezChairman and Managing Director

19

19

Aurélie LagreKey function, Actuarial

24

24

Valérie CohenTechnical Director Motor and Home and for private

individual clients

14

14


Towards

a single enterprise Legal was one of the last functional departments that remained to be set up at Group level, and in July 2016, a shared legal department replaced the entities operating previously at the level of the individual brands. Part of the General Secretariat, it brings together around 50 lawyers in a single community that maximises their effectiveness. After the implementation in 2015 of the Retail P&C Technical Department, the Marketing and Strategic Transformation Department, the Human Resources and Internal Communication General Management Department and, in early 2016, the Life Insurance Department, this step completes Covéa’s new organisation. Backed by powerful shared functional departments, the Group’s brands can now concentrate all their energy on ensuring operational success.

Since 2015, there have been discussions between management and social partners regarding the creation of a single status for over 21,000 Group employees in France, who are currently governed by some 212 different collective agreements. These highly constructive discussions led to management’s proposal in September 2016 of 15 substitution agreements. Negotiations were then commenced on these projects. If they are concluded before the end of the year, it would make 2017 an historic year for the Group, as a key step in the constitution of our single enterprise, guaranteeing performance and increased opportunities for its 11.5 million members and customers and its 21,000 employees in France.

OUR ORGANISATION

In April 2016, the Toulouse-based employees of a MAAF centre of expertise, MMA’s regional department and a GMF management centre moved into the Group’s first shared site outside of Paris, on the Golf Park campus. Each brand has its own dedicated space, but employees also enjoy shared meeting and relaxation spaces, increasing their opportunities to connect.

Under the same roof

21,000Group employees in France

130employees in Toulouse

212different collective agreements

15substitution agreements

Over


Covéa’s corporate social network Corus, launched in 2014, has already registered more than 2 million visits and has more than 1,500 communities, organising collaboration and discussion between a plethora of business lines, project groups and teams. Its 10,000 regular users are the network’s best possible ambassadors for their 21,000 colleagues.

Never without Corus

240 employees from the customer relations business line participated in the second season of Covéa Campus, the Group’s Corporate University. Working from four key cities - Lyon, Bordeaux, Strasbourg and Nantes - they met in Paris at the end of the season, taking the opportunity to share the results of the 16 practical proposals that they had been trialling in the prievious months to make Covéa a major asset for each of its brands.

Covéa Campus

season 2


New organisation, overhaul of numerous procedures, preparation of the future status of thousands of employees, launch of tools to the latest standards of digital innovation... A wind of change is upon the Group’s human resources, freeing – and attracting – talent everywhere.

OUR HUMAN RESOURCES

A fresh spirit

for the Group

On 8 September 2016, the Group’s 1,200 managers from all brands, subsidiaries and divisions got together for a working day dedicated exclusively to human resources management. This first meeting will remain one of the highlights of 2016, the year when, driven by the action of the new Human Resources and Internal Communication General Management Department, the idea of a Covéa human community really took shape. Following the implementation in March of a grouped organisation of the Human Resources and Internal Communication functions, there were naturally other milestones in this decisive transformation. All entities’ employee indicators were harmonised. The new internal communication system, One, was introduced. Many projects were initiated, such as the project to create the common payroll information system and that of the HR portal Lifebox, designed to replace the separate brand portals and facilitate access to mobility information and skills development.

All these innovations include extensive digital content, the Group’s new “trademark” that facilitates life at work and inter-employee synergies.

Covéa is thus becoming an unequivocally modern company, capable of offering both young talent and confirmed professionals a fulfilling career thanks to its diverse business lines, its large number of sites and its brands’ prestige. This year, just as previously, its recruiters met and contacted young graduates at the fairs and on the forums of around ten schools, resulting in hundreds of internships and work-study training courses. And negotiations on the creation of a single status for over 21,000 Group employees in France entered the final straight in December. They are expected to conclude in 2017, sealing the attractiveness of a enterprise that is – in a word – unique.

of which

800permanent

and

1,650fixed-term contracts

Mainly sales and marketing, claims management and corporate risk underwriting and, to a lesser extent, actuary, statistician and experienced support function roles (accountancy, law and IT).

Launched in September, One, the Group’s new, ultra-agile internal communication system, is a combination of intranet platform, paper magazine, targeted e-letters, radio, videos, events and corporate social network. In November, this original system won first prize at the “Grands Prix Communication et Entreprise” awards.

One for all

2,450recruitments,

110interns taken on

430work-study trainees recruited

MOST SOUGHT-AFTER CAREERS


Covéa has chosen co-development as a means of helping its employees manage any unsatisfactory or uncomfortable interpersonal situations that they encounter in their day-to-day work. Participants – all volunteers – form groups of six to eight peers, coordinated by a coach. Each co-development session provides an opportunity for each participant to describe an interaction and explore the related resolution possibilities through feedback and questions from his or her peers. This enables the co-developers to learn from each other, over a nine-session module spanning several months. During the past nine years, more than 1,100 employees have tried the system, and most of them say that they learnt a great deal from the experience.

Consult your annual appraisal reports, showcase your skills, apply for training, submit a career change request... Replacing the old brand portals once the new procedures have been unified, the new HR services intranet portal, Lifebox, will be the one-stop shop for all mobility

matters within the Group. It already offers 22,000 employees access to a personal space for entering into deeper discussions with managers and human resources experts, all thanks to the simplicity of digital operation.

My career on a portal

“co-dev” to help develop interpersonal skills

To travel, you first need to get a passport... That is therefore the first step on the digital awareness pathway, freely available on the Group’s intranet. More than half of Covéa’s employees had already obtained it by the end of the year, meaning they could go on to the next steps, taking numerous trips to discover the digital world and collecting visas.

Passport for digital 10% and 8%These are, respectively, the Group’s enviable functional and geographical mobility rates.

Recruit with a tweet? Such is the original idea rolled out by MAAF on 19 May 2016, on the occasion of Twitter’s Job Day Europe. The objective? To reach new audiences who do not necessarily think about insurance.

Hired in 140 characters


Anticipating all possible market scenarios, the Investment and Risk Management Department along with Covéa Finance and Covéa Immobilier, the Group’s two asset management subsidiaries, held a firm course, protecting and growing a ¤100 billion pool of managed assets in a distinctly uncertain context.

OUR ASSET MANAGEMENT

The teams of the Investment and Risk Management Department, Covéa Finance and Covéa Immobilier, the Covéa Group’s two asset management subsidiaries, know how to keep a cool head. As a kind of euphoria gripped the equity market and a similar phenomenon intensified in the property market, our asset managers stuck to their scenario of rigour, mindful of the continuing possibility of a crash. Indeed, the unexpected improvement seemed to have much more to do with the latest interest rate cuts introduced by central banks than weak economic growth. These markets simply benefited from the virtually negative bond yields that left huge amounts of liquidity chasing a return, even if that did mean “forgetting about” the ultra high valuation levels already achieved. In this risky environment, Covéa Finance’s asset managers chose to invest only a quarter of the amount allocated to shares by the Group, concentrating investments on the rare downticks.

Meanwhile, the Covéa Immobilier experts completed two acquisitions: the Thémis building, an off-plan purchase in the Clichy-Batignolles mixed development zone, and an OPCI property mutual fund with capital comprising buildings located on Paris’ rue de Rivoli, rue Saint-Honoré and rue Tronchet. These opportunities corresponded perfectly to Covéa Immobilier’s portfolio strategy, focused on impeccable quality. Accordingly, its teams devoted the bulk of their energy to adding value to existing assets, deferring certain potential profit-taking opportunities in the absence of reinvestment solutions. While in the short term the price of this rigour may be lower performance, the assets of France’s largest cooperative insurance group are not to be managed as if they belonged to a purely speculative fund. Especially given that any number of market scenarios are predicted for 2017...

Acquired by Covéa Immobilier in April 2016, the new Thémis bui ld ing in the Cl ichy-Batignolles mixed development zone perfectly illustrates the company’s investment strategy. It is very well located, has excellent public transport links, produces part of its energy from geothermal sources and is expected to receive HQE Excellent, BREEAM Excellent, Effinergie+ and Biosourcé environmental certification.

The Thémis project

Finance and Property,

Covéa sets itself apart


Initially managing the assets of MAAF and GMF, then those of MMA from 2010, Covéa Finance celebrated its tenth anniversary in October. It marked an exemplary achievement: the company has fuelled the Group’s construction while growing into France’s tenth largest asset manager, renowned and praised throughout the world of finance.

Recognised by its peers

Covéa Immobilierat 31 December 2016

€4.5 billion of assets, mainly located in and around Paris

661,000 m2 of which

223buildings

Composed of

61%

offices and shops

39%

residential

Operating propertyat 31 December 2016

Over 580,000 m2of gross usable floor area

1,050sites (central and regional bases and commercial agencies)

Composed of

€441 million

Operating property assets of

Finance and Property,

Covéa sets itself apartInvestment property

Covéa Financeat 31 December 2016

93.3billion euros of assets under management

53funds under management

€17.2billion of equity investments

10thlargest French asset management company*

* At 31 December 2015, source AFG


WE HAVE...A FEEL

FOR THE BUSINESS


By being the first to offer its auto policyholders options covering shared vehicle use, Covéa demonstrates its pioneering ability to introduce innovations and insurance solutions catering to new consumer habits

For just a few extra euros, since November 2016 policyholders of Auto Pass, GMF’s motor insurance policy, have been able to benefit from “Mobility” and “Rental” options. The first gives them additional cover when they rent a vehicle, whether privately, from a car rental firm or via a car sharing site. They thus have better cover and avoid any additional costs, notably for deductibles. With the second, they can rent their own vehicle out to another person with no impact on their policy, no-claims status or excess in the event of an accident, while the hirer benefits from the same cover that they have. Lastly, Auto Pass covers car sharing passengers for no extra premium. This unprecedented offer is one of the first innovations of the Covéa Retail P&C Technical Department (DTIP), which was set up to take advantage of the statistical size effect of our three brands and to design

modular cover, services and products that are equally available to the policyholders of MAAF, MMA and GMF. Auto Pass is the result of a joint design effort by the technical teams of the three brands. It will enable MAAF and MMA to draw on all the lessons that GMF has learned from this experience and in turn position themselves in this growing market.

Similarly, MMA, which in September marketed Auto Access, its new budget auto solution, was closely followed by MAAF, which put a similar offer in place in January 2017.

Under this system, the Retail P&C Technical Department makes proposals and the brands decide when to market these new products, based on their respective priorities. And this is only the beginning, with the creation of a common motor and home insurance database, a common offer model,

convergence projects for motor and home policies and cover - as well as on pricing and management - all in the pipeline with the objective of promoting sharing, responding to change as efficiently as possible and supporting members and customers in their new consumer habits. Moving on from motor insurance, the Group now intends to turn its attention to new home insurance applications. In this way, Covéa is pursuing its strategy of conquering new markets and growing profitably, to remain the leader in this hotly contested segment.

PROPERTY AND LIABILITY

Ready

for the new economy

4 NEW FACTS ABOUT CAR SHARING BY PRIVATE INDIVIDUALS

For 41% of hirers and 58% of car owners, money is not the main reason for using car sharing as

private individuals.

The main reason that car owners give is their desire to

share a vehicle that they do not use much, for environmental reasons and to help others.

For hirers, car sharing increases the share of hiring in their total distance travelled per month

from 12.5% to 25.5%.

After people have started car sharing, there is no significant change in the frequency with

which they use either everyday or long distance means of transport.

Source: ADEME, National survey on car sharing by private individuals, September 2015.


Covéa AIS* won three trophies at the Argus claims management awards organised by L’Argus de l’Assurance: one for management initiative with its new service delivering replacement vehicles to motor policyholders, another – the digital award – for MAAF’s claim monitoring mobile application, and a third for compensation director of the year, won by the company’s Managing Director, Joaquim Pinheiro.

* Assistance, Indemnities, Services.

Claims management: triple reward for AIS

-0.6%Slight decrease in the volume of insurance claims

+3.3%General increase in claims expense and average costs

+5.7%Significant increase in assistance claims

Claims management

129,000claims relating to weather events, amounting to ¤371 million

Every year, hail storms cause extensive vehicle damage. After the more destructive storms, Covéa deploys emergency panel beating units; operating under gazebos, they deliver time savings for repairs that do not require paint work, at a 20% lower cost. Nine such units were sent out in 2016, to deal with more than 2,000 vehicles.

After the storm



They are one of the insured’s first reliable ports of call when faced with a claim and they play a very tangible role in the insurance policy. Fidélia employees are ready to intervene 24/7, in France and worldwide. Through a network of tried and tested providers, they can quickly organise anything from health-related repatriation, childcare, domestic assistance and school support to vehicle breakdown and towing services as well as emergency locksmith, plumbing and domestic appliance assistance call outs.

The Group’s sole assistance provider, Fidélia also works on a white label basis for other insurance companies that do not offer the same expertise. Initiated in 2016, its new strategic plan aims to gradually implement enhanced assistance, erasing the traditional boundaries between assistance and insurance, at the heart of the digital revolution. In addition to the ongoing enhancement of motor and home services, it plans to develop new health and protection services.

Fo l l ow i n g a l e r t s i s s u e d by meteorological prevention tools developed by the experts in Covéa’s Risk Analytics Division, MAAF, MMA and GMF sent 210,000 text messages to at-risk insureds prior to the floods in May and June. These messages were also relayed via social networks.

Fidélia removes the boundaries between assistance and insurance

210,000 preventive text messages

There was widespread concern that there would be another hundred-year flood of the Seine, after that of... 1910. Stretching from Orne to Moselle, the floods of May and June 2016 were nevertheless the most costly natural disaster since this regime’s creation in 1982. 1,358 municipalities in

24 departments successfully filed related claims. The assistance, indemnities and services (AIS) teams were mobilised before, during and after the event, deploying three mobile units within a matter of hours to assist customers by logging their claims and providing backup as

quickly as possible. Some 30,000 claims were logged for a total charge of around ¤200 million, representing over 54% of the Group’s annual weather claims charge.

Weather events: anticipating, rescuing, repairing

1.3million customers assisted in 2016

96.05% satisfaction rate

Over 12million customers

1,200employees at 31 December 2016

Nearly


In the event of serious bodily injury, indemnification is not enough. The people injured – sometimes with lifelong impact – need help with numerous administrative tasks, finding appropriate specialists to assist them, adapting their homes or moving house, rebuilding their life plans and regaining their confidence – the list goes on. Despite this, Covéa is the only French insurer to have developed an extensive network of 51 injury assessors, who offer a combination of technical expertise – enabling them to deploy around 50 different auto, personal multi-risk and individual accident cover solutions and maintain a perfect understanding of their sector’s aid and care ecosystem – and

people skills. The fact is that each case is different and the victim and those around him or her need to be listened to carefully to provide appropriate solutions. To be even more effective, 17 of these professionals have specialised in supporting those suffering from the most serious cases of physical or psychological injury. Given the scale of their task, Covéa provides them with unique resources: a medical crew, physios, social assistants and even an occupational therapist and an employment specialist. Throughout France, they have gradually become the recognised partners of assistance organisations and specialised institutions.

A partner for rebuilding one’s health

Human relations and the diversity of situations make our profession fascinating. It requires great adaptability to coordinate a multitude of players, from doctors and lawyers to claims handlers. It is about much more than simple compensation, as the victims we insure receive personalised support. It is immensely satisfying to feel that you are being genuinely useful.”

Géraldine Casala Covéa injury assessor

in Bordeaux

This is a mini revolution in the world of assistance: in the event of a car accident or car breakdown, Fidélia now offers the insured the possibility of choosing the delivery and pickup site for his or her replacement vehicle. This is the result of an exclusive partnership with a large car rental company, which covers the operation’s costs in their entirety – a unique offer that makes it possible to improve the service that we provide to the customer while reducing costs.

“Your vehicle is on its way”



MAAF, the benchmark for individuals and professionals alike

The breakthroughs continue. With a professional customer portfolio up 3%, MAAF continued to see an excellent take-up rate on its new professional multi-risk offer after that of 2015. The renewal of its partnerships with a number of professions, such as the building sector, shows – if such evidence were still needed – the strength of its commitment to them, which enables it to better understand them and so serve them better.

Committed to providing more and more services

Commitment is MAAF’s watchword when it comes to members and customers, for all of whom 2016 stands unquestionably as the year of service. “MAAF’s et Moi” mobile application won numerous awards and plaudits in the trade for its online claim tracking, but most importantly was an enormous success with insureds, who used it 2.5 million times. This is hardly

surprising given that it is constantly adding new features, such as the auto quote simulator. MAAF proved equally committed with its mobile rescue unit and its back-up teams deployed on site for the flooding in May and June 2016, the worst that France has experienced since 1910.

Effective but inexpensive

Again, MAAF is committed on behalf of its members to offering the best value for money in the market, with solid cover at the most appropriate cost. Risk reduction, prevention, loyalty… with Bonus Duo and Bonus à Vie MAAF motor insurance or Bonus Multipro and Bonus Décennal for tradespeople, members are rewarded with tariff reductions for low claim rates. MAAF Pur Bonus motor insurance, meanwhile, encourages policyholders to choose the least polluting vehicles.

As the market benchmark for value for money, MAAF continuously strengthens its ties with its members and customers, notably by developing new digital services, which are already being very widely used.

3.7million members and customers

4.1million vehicles insured

2.6million homes insured

574points of sale

Stéphane Duroule MAAF Managing Director

In a very competitive environment, it is no longer enough to have the lowest price: customer experience must now be at the heart of what we offer. The Covéa group’s capacity for innovation enables us to regularly offer new services, particularly digital, that make our members’ and customers’ lives easier. The quality of our claims management also plays a vital role in strengthening ties at a key point in the relationship. For every insured person, we must at all times ask ourselves: what do we want this person to experience? A technical procedure or a relationship of recognition and trust, which will strengthen their preference for the MAAF brand?”

HOW I SEE IT


The Covéa brands successfully capitalised on the entry into force of the job protection law in order to strengthen their positions in the corporate market.

HEALTH AND PROTECTION

A very

“collective” year

While this law, which arose from the 2013 National Interprofessional Agreement, obliged private employers to take out complementary health insurance for their employees before 1 January 2016, the vast majority of firms fell well short of that obligation on that date. For insurers, 2016 looked just as decisive as the previous year for taking a position in this market, securing their portfolio of companies by selling multiple policies and winning new customers. So it was mission accomplished for MAAF and MMA, which, thanks to the strong mobilisation of their sales and marketing networks, issued more than 16,800 group contracts in 2016. MMA thus confirmed its third overall position in the insurance market

for self-employed professionals and companies, with a significant presence among micro-businesses and SMEs. As for MAAF, its market, focused on micro-businesses and start-ups, remains replete with opportunities in 2017. This assessment would not be complete without mentioning APGIS and SMI, the Group’s two entities specialising in collective social protection. In particular, APGIS has recorded an average of 12% premium income growth for each of the past five years, and in 2016 secured seven additional sector recommendations, four of which as exclusive provider*.

At the same time, the resulting fall in activity in individual health ultimately proved lower than expected for MAAF and

MMA. GMF, meanwhile, saw its premium income grow by 20%. With new prospects related to the creation of UNÉOPÔLE, 2017 offers it new opportunities.

Lastly, individual protection insurance remains a good growth driver for the Group’s three brands.

* Notarial firm employees, equestrian centres, medical technology facilities, pharmaceutical product manufacturing and sale.


Key figures (including APGIS and SMI)

Protecting the nation and their fellow citizens is the daily commitment to which the forces of the security and defence community unreservedly subscribe.

To show them recognition consonant with that commitment, mutual insurance companies Unéo and MGP have joined GMF to form a consortium named UNÉOPÔLE.

Together, these three key players in the social and solidarity economy are committed to permanently ensuring the protection and preserving the living conditions of members of the security and defence community by providing them with better tailored and fairer solutions.

Protecting those who protect us, and reassuring those who reassure us: this is our mission.

UNÉOPÔLE

1.6 millionindividual health beneficiaries

1.3 millioncollective health beneficiaries

is a recognised player in collective social protection, with over 40 years’

experience. Its serves 25,000 companies with 13 professional sectors, having

signed recommendation agreements.

Association de Prévoyance Générale Interprofessionnelle

des Salariés (association for general interprofessional

employee protection)

APGIS

specialises in group contracts. With 9,000 member companies,

it protects almost 660,000 people and offers 11 specialised sector solutions.

Société Mutualiste Interprofessionnelle

(interprofessional mutual company)

SMI


MMA, the insurer for self-employed professionals and companies

Once again, MMA grew faster than the market for self-employed professionals and companies. Its goal of rapidly moving from third to second place on this priority target therefore remains more relevant than ever. To achieve this, the brand is cultivating its strengths, starting with proximity: its agents and brokers are entrepreneurs, who have the same networks and challenges as this customer segment.

More support, more expertise

In 2016, however, the brand decided to go further. By reorganising and reinforcing its regional teams, it geared up to provide its customers with more support and expertise. Its agents are now guided by a strategic plan based on a detailed diagnosis of local opportunities. Since the creation of Covery with one of the largest French brokers, they have had access to a targeted range of complementary products to cover all needs. Lastly, they are benefiting from new customisable websites that make it

easy for them to set up an online shop front.

Committed for all customers

Throughout the year, the determined action of the MMA’s Foundation of Entrepreneurs of the Future to promote regional innovation and the health of company executives has shown both regional players and individual executives that the brand’s commitment alongside them goes far beyond a commercial interest. Like all of MMA’s members and customers, they were also witness to this commitment during the floods of May and June 2016: thanks to the rapid deployment of mobile units and back-up teams, more than 8,000 claims were processed within a few weeks.

For retail customers, MMA revamped its zéroblabla prevention and advice site and at the same time launched Auto Access, a new entry-level motor offering.

In 2016, MMA showed again how it is becoming the preferred partner of self-employed professionals and companies, while continuing to support its retail customers.

3.3

2.8

1.7

1,709points of sale

1,183general agents

Hervé Frapsauce MMA Managing Director

million members and customers

million vehicles insured

million homes insured

Supporting self-employed professionals and company executives is not just about protecting their work tools and assets or their employees’ health. We also need to help them manage stress, rally their strengths and have a breather. Such is the task that we have entrusted to the MMA’s Foundation of “Entrepreneurs du futur”, which offers customers a whole host of studies, conferences and practical tools. It thus fulfils a general interest mission: for example, in 30% of cases in which an executive of a company with fewer than ten employees suffers an accident, the company is weakened as a result. With its ‘Grands Prix des Bonnes Nouvelles des Territoires’ awards, the Foundation also promotes these companies’ crucial role in social innovation. Such recognition is the very least that they deserve.”

HOW I SEE IT


MMA, the insurer for self-employed professionals and companies To support our policyholders we first need to get to know them well. A number of recent

studies have focused on SME managers’ personal situations, which can be both stimulating and stressful.

The emerging challenge of

executives’ health

INSURANCE FOR SELF-EMPLOYED PROFESSIONALS AND COMPANIES

This is a topic that is little talked about, almost taboo even... While research into health at work abounds, not much at all focuses on the managing director’s situation, which one generally assumes to be comfortable. Yet the sustainability of our 150,000 SMEs – each of which has between 10 and 249 employees – and 3 million even smaller businesses very often lies on the shoulders – and health – of one person. Indeed, an MMA-commissioned study by Opinion Way in 2016 shows that, while 76% of managers surveyed consider themselves to be generally healthy, 58% experience “stressful” days, with more than 60% attributing this to cash flow or order book uncertainties. And it is a proven fact that the risk of heart attack is four times higher for people under stress... “Company bosses hide their weaknesses to protect their image,” says Olivier Torres, a professor at the University of Montpellier and founder of the Amarok* observatory. “And while, supported

by the positive nature of their role as job and wealth creators, they are generally healthier than others, they are not immune to the laws of biology.” MMA has tackled this issue head on by launching a major programme to encourage executives to look after their health better. MMA’s Foundation of Entrepreneurs of the Future organises regular conferences throughout France in partnership with chambers of commerce and industry. Meanwhile, MMA itself posts regular online advice for company bosses to help them keep fit. In its latest offering, Stéphane Demouy, aka Mister Quot’Ching, a former high-level athlete, demonstrates a range of simple exercises that can be done in the office or workshop to prevent the all-too-familiar problem of musculoskeletal disorders. There’s no denying that an efficient day’s work is worth a few minutes’ warming up...

* On MMA Business TV

Professional customers are less likely to switch insurance providers than retail customers. Thanks to policies for protecting a company’s capital assets and employees as well as its manager’s personal assets, this segment offers great multiple-subscription potential – a key factor in customer loyalty.

A less volatile customer base

Of all the “Grands Prix des Bonnes Nouvelles des Territoires” awards that the MMA’s Foundation of Entrepreneurs of the Future handed out this year, that picked up by Compte Nickel stood out as a shining example. By December, more than 400,000 people had already opened an account though this initiative, simply by popping into a newsagents or tobacconists. It reopens the possibility for holders of making online deposits, withdrawals and payments with a credit card, but does not allow loans or overdrafts.

An exemplary first prize

Covéa Affinity designs and markets affinity contracts for car manufacturers and their financing entities, covering financial losses, mechanical guarantees, tyre guarantees, etc. Thanks to a 10% average annual increase in its premium income since 2010, it now insures 2.5 million vehicles in the five main European markets (France, Italy, Spain, Germany and the United Kingdom). New automobile habits (connected vehicles, self-driving cars, shared fleets, etc.) represent major avenues of development for Covéa Affinity in the years to come.

Covéa Affinity makes excellent headway


The average rates of return on euro savings vehicles remain attractive. They range from 2.01% to 2.51%, compared with an average of 1.80% for the market.

Rates consistently higher than the market

LIFE INSURANCE, RETIREMENT SAVINGS, CAPITALISATION AND PROTECTION

High quality financial management over time, something that the Group has always achieved, allows it to generate regular capital gains. It also meant that in 2016, MAAF, MMA and GMF were once again able to pay generous rates on their euro savings products, of between 2.01% and 2.51%, compared with a market average of around 1.80%. In order to preserve their valued savers’ interests over the long term, the three Covéa brands also continue to make significant contributions to their provisions for profit sharing. Meanwhile, their high level of unrealised capital gains will enable them to approach any future scenario equably.

In accordance with their objectives and duty of advice, MAAF, MMA and GMF steered members and customers towards unit-linked policies. Pursuing of their diversification strategy, they have also ramped up their development of individual retirement and protection insurance (loan insurance, temporary and death insurance) and continue to improve their products to make them more user friendly and better support their customers. They are also focusing their efforts on absorbing upcoming new regulatory constraints and accelerating the digital transformation.

GMF’s new Capital Famille policy offers payment of a ¤50,000 to ¤1 million lump sum in the event of the holder’s death or total and permanent incapacity. This is a good example of what the Group can do to complement its asset-oriented approach, in line with its underlying commitment to protection.

An adjusted asset-oriented approach

2.50% net*on all euro-denominated policies and funds

GMF Vie

2.35% net*on the Winalto euro-denominated vehicle

MAAF Vie

2.01% to 2.51% net* on the euro-denominated fund of the main life insurance and capitalisation policies

MMA Vie

€361.6 million of which ¤94 million in euros and ¤267.6 million in units of account

Net revenue

The strength of

the cooperative model

Retirement savings

€3.5 billion of which ¤3,103 million in euros and ¤403 million in units of account

Gross revenue

* rate after management fees but before social security and tax deductions


GMF flies the flag for public service values

Things are sometimes simpler when you spell them out. GMF’s new communication campaign – “We are for those who…” – enshrines the values of commitment and solidarity that the brand has always shared with public sector employees. It also uses “real” professionals, and their message really hit home, with almost 75% of public service employees surveyed saying that they found the campaign convincing.

First meet needs

In 2016, GMF continued to attract a growing number of customers in motor, home and accident insurance, in a competitive environment of a fierceness only compounded by a bankinsurers’ offensive. The products launched in 2015 proved their relevance: the Santé Pass top-up insurance policy accounted for a quarter of all new signings, for example. They were rounded out by Capital Famille, a new protection offer intended for families that require a capital guarantee of more than ¤50,000.

To better serve its policyholders, GMF also launched a new mobile site intended for prospective customers and a new mobile application dedicated to members, signalling the arrival of seamless relationships involving zero information loss between the various channels.

Team spirit, spirit of innovation

2016 also saw the creation of UNÉOPÔLE with the defence and police sector’s two main mutual companies – the starting point for numerous cooperation efforts to give their members the benefit of optimal protection.

The year was also marked by the renewal for a further six years of GMF’s partnerships with the French Rugby Federation and the National Rugby League, GMF having shared rugby football’s values for over 30 years.And lastly, innovation played its part with the launch of the “Rental” and “Mobility” options of the Auto Pass policy, the first to cater for new collaborative car uses.

While continuing to see its sales grow, GMF has laid the foundations for an even closer relationship with all public sector employees, for whom it is the most popular insurer.

3.5

3.3

2.8

370points of sale

Laurent Tollié GMF Managing Director

million members and customers

million vehicles insured

million homes insured

The strength of our ‘affinity’ ties with public service employees leads us to develop specific approaches in terms of guarantees, relationships and communication. Of course we have to offer excellent retail insurance solutions. But that is not enough: we must also provide our members with offers tailored to their specific needs. To do so, we can rely on the technical excellence of our Group’s departments and thus continue to innovate, while remaining both well positioned and... competitively priced.”

HOW I SEE IT


LEGAL PROTECTION

Two subsidiaries provide the Group’s customers with legal information and protection.

APJ operates on behalf of the MAAF and GMF brands, in particular providing their policyholders with numerous self-care services. Since 2016, APJ has offered its cyber risk legal protection option at no additional cost: it covers disputes related to internet transactions, the use of collaborative services, identity theft, online slander, cyber bullying at schools, etc.

Meanwhile, the provider supporting MMA insureds is DAS. As France’s leader in the self-employed professionals market, in 2016 it implemented an organisation that focuses exclusively on customer satisfaction and which, right from the information phase, prioritises an amicable solution.

DAS now offers Lexéa, also for business customers. This product offers both legal protection and tax protection, providing a tailored response to companies’ needs.

A year of innovation


321,300

57,900

156,000

27,100

€141.9 million

€127.6 million

€89.4million in legal protection

of whichTurnover

APJ DAS

Cases opened

Number of legal enquiries processed by telephone


REINSURANCE


1,297

35

€1.2

218

€168.6

A+

A

treaties

countries

billion of capital

cedant companies

million of premium income

Standard & Poor’s rating

AM Best rating

Insurance companies all over the world take out reinsurance contracts to cap off their biggest risks, support their development and offset their geographical risk concentration. While Covéa buys such protection for the Group – by ceding around ¤300 million of premiums to the market in 2016, for example – it also offers international inward reinsurance. This is a profitable business that has the added advantage of broadening the company’s vision to include diverse markets. In this area, Covéa is fortunate to be able to rely on the know-how of highly experienced teams with particularly stable customer relationships, some of which go back more than 50 years. These experts have recently expanded their activities to a new territory, English-speaking Canada. In 2016, a year marked by a sluggish market, a rise in fire-related claims and – again – strong competitive pressure, they recorded a strong increase in their premium income by nearly 9%. Since 1 January 2017, they have been operating directly under the Covéa brand, under the responsibility of a specific department.

Carrying on the momentum of 2015


INTERNATIONAL

In an increasingly uncertain international environment, Covéa remains active on both sides of the Atlantic. As well as contributing significant additional premium income, its subsidiaries place the Group in a position of privileged observer in markets that are often very different to those in France. These subsidiaries are systematically solid companies with sustainable profitability that operate within a stable regulatory framework.

In 2016, the group’s UK subsidiary Covéa Insurance posted growth in revenues of more than 13% in pounds sterling thanks to its motor insurance and professional insurance activities. It also launched its new motor insurance offer on price comparisor websites. Streamlining efforts continued following the integration of Sterling Group’s non-life insurance business on 1 January 2016.

In the Italian market, following on from the decline in inflows into the euro life insurance vehicle in line with its strategic orientation, the Group’s subsidiary, Bipiemme Vita, posted a decrease in revenues.

In the United States, the Group’s subsidiary, CSE, recorded a 2.5% increase in revenues in US dollars. It was faced with high claims losses resulting from numerous forest fires and a deterioration in motor insurance claims.

The Covéa Insurance subsidiary’s successful integration of Sterling, which the Group acquired in 2015, did not go unnoticed on the other side of the Channel. The acquisition was named “Transformation Deal of the Year” at the prestigious British Insurance Awards. Shortly before, the Sunday Times had once again ranked Covéa Insurance among the 100 best companies to work for in the UK.

Covéa Insurance attracts praise

SPAINCaserPARTICIPATION

• Insurance• Non-life / life• Bank insurance

LUXEMBOURGAME Life LuxSUBSIDIARY

• Insurance• Life• Authorised brokers

& agents

CANADALa Capitale AGPARTICIPATION

• Insurance• Non-life / life• Affiliated agents / brokers

ITALYBipiemme Vita

Bipiemme VitaAssicurazioni

SUBSIDIARY

• Insurance• Life / Health Protection• Partner bank

SUBSIDIARY

• Insurance• Non-life• Partner bank

UNITED KINGDOMCovéa Insurance

Swinton

SUBSIDIARY

• Insurance• Non-life• Brokers / direct

SUBSIDIARY

• Broker • Non-life• Multi-channel

UNITED STATESCSESUBSIDIARY

• Insurance• Non-life• Non-exclusive agents


€2 billionin premium income

5,000employees

6countries

12.3%of the Group’s premium income

Nearly

in

Active and Strong internationally


WE CHOSE...PROGRESS

AS A DRIVER


TECHNOLOGY SERVING PEOPLE

Charles’ life was turned upside down on 28 December 2015. Victim of a motorcycle accident, albeit a low-speed one, he now suffers from paraplegia and needs a wheelchair to move about. The medical centre where he is embarking on his lengthy rehabilitation is located 170 kilometres from his home. He will be one of the first people to use CovéaLink, in the form of a “remote interactive mobile terminal” provided by Covéa. This device makes it possible for someone a long way from home for a protracted period owing to illness or disability to stay connected to their home environment. Charles, 23, is single and lives with his parents. So in his case a “robot” was installed in his parents’ house, consisting of a screen, a camera and a microphone, wheel-mounted and standing at person height. Charles controls the robot remotely using a tablet. He can move from room to room as if he were at home, see and

chat to family and friends in the house, “take part” in meals and keep an eye on his pet parrot. Sometimes – still using the robot – he even pops round to see his grandmother, who, at 87, now rarely leaves the house... Charles consequently remains in good spirits and is gradually getting used to the change in his life.

Tested throughout the course of 2016 (six trials so far), CovéaLink can be adapted to a wide range of situations and conditions, enabling a child confined to their room to continue to attend school lessons for example, or a disabled person to carry on working at a company just as before. Its implementation, requested by the case manager and the medical specialist, requires the work of an entire team comprising a doctor, an occupational therapist, a lawyer, etc. CovéaLink does not replace human support, but makes it even more effective.

Attempted break-in, first sign of a house fire, water damage, etc. Today, you no longer need to be at home to be immediately alerted and take the necessary action. Pictures taken and alerts triggered by cameras and sensors positioned around your house can be simultaneously relayed to you via smart phone and sent to the emergency services. This service, which is proposed in partnership with Verisure, the European leader in remote surveillance, was tested in 2016 with GMF policyholders who had been victims of actual or attempted theft. It will be rolled out at MAAF and MMA in 2017. In terms of prevention, it is one of the first practical applications of the connected home concept, and looks set for a bright future.

Keeping an eye on your home

Charles, user of CovéaLink

CovéaLink, which features a sophisticated combination of wireless technology and robotics, allows people who have suffered serious bodily injury to keep connected, remotely, to their social, family and, in certain cases, professional environment. Technology helping to serve emotional needs...

The link is never broken

This simple connected screen means that I can get in touch with my parents whenever I want. It has been a real help, especially when I’ve been feeling down, as I can ‘go home’ and feel a little less alone in my hospital room.”


The idea could not be simpler, but can prevent a good many upsets. A new extranet dedicated to windscreen repairs enables accredited repairers to check whether a breakage is covered by the insured’s policy before going ahead with the work. This means that policyholders can make a decision with all the facts at their fingertips.

Total transparency

Simpler,more efficient, more usefulDeveloped wisely, new digital and communication technologies ease and secure policyholders’ lives. Several new services prove it.

MAAF is the first Covéa brand to offer members the Group’s mobile motor and home claim tracking application, recently designed by Covéa. At any time, via smart phone or tablet, they can find out about their claim’s progress, consult all related correspondence, be put in touch with the relevant contact person or, if they have chosen an approved garage, receive photo updates of repairs made on their vehicle. By the end of 2016, 380,000 people had already downloaded and used the app, clocking up some 2.5 million visits.

Very “smart” monitoring at MAAF

Your vehicle no longer needs to be out of use until the adjuster can make it down to the garage. With the SelfCAR(e) mobile application, insureds will soon be able to take claim-standard photos of vehicle damage after an accident. These photos will then be sent to an approved repair company, which will carry out the appraisal itself and approve the repair request. Two hundred tests carried out by MMA, which involved subsequent on-site approval checks, have confirmed the system’s reliability.

Expertise of the future

CESVI, the Group’s auto technical training and research centre, performs dozens of crash tests and modelling each year to advance the understanding of accidents, prevention and repair techniques. Nearly 800 experts and accredited repairers are trained there every year.

White-lab-coated repairers

The new motor and home quote simulators on GMF’s mobile site for potential customers are based on an intuitive Q&A text message conversation. Not only do they require no additional effort from users, but they also engage them – before they have even signed up – in an interaction with the brand.

Quoting in conversation

2.5million visits

380,000downloads

“MAAF et Moi” app

The Lab’s

new challenges

THE COMPANY’S NEW INNOVATION TOOLS

Now in its second year of existence, Covéa Lab continued to mobilise the Group’s talents and energies, giving people with innovative ideas the means to develop and test them within a few months, in the start-up style. A number of services have already been duly rolled out, while others are in the pipeline... The Lab is invariably a memorable experience for employees – and often a career-changing one...


A monthly average of 70,000 unique visitors since June 2016, with no advertising or paid listings: Avis-Auto.fr, the first service to emerge from the Lab, is a real success. Developed by MAAF, it enables web-user customers to review hundreds of second-hand models and the MAAF brand to find out who is considering changing vehicles and... insurance policy. This information is harder to obtain when it comes to prospective customers, as the site does not recognise their “signature”... To encourage them to enter their details, the Lab is therefore continuing to test new functionalities, in particular via a partnership with Reezocar, France’s biggest used car sales network.

A success, in our opinion

Sorti des eaux

The promise made by the BienAcheterSaMaison.com site is that you can be sure to make a sound purchase when buying a property, and therefore avoid future disappoint-ment and/or price depreciation. Designed at the Lab and

now included in the GMF Vie customer ex-perience, it gives an accurate estimate

of the target property’s value and the cost of any work needed

on it. It also provides valuable information on the local neighbourhood, a feature that owes much to the ex-tremely detailed analyses of experts from the Risks Analytics Division, on data ranging from local resi-dents’ average income to the probability of theft and

weather damage.

Making sure you make a sound purchase

Smart Pilot is still in the Lab. In April 2017, the project’s two originators even went full time on it for 6 months. It must be said that the stakes associated with this mobile application are high: analysing the performance of young learner drivers and then offering the highest scorers an appropriate policy once they have obtained their licence. During this process, Smart Pilot automatically completes their learner driver booklet and provides them with a whole range of driving tips. 40 driving schools affiliated to the network of CER, a GMF partner, have already indicated that they are ready to promote the application.

Smart Pilot gathers speed

Noé, which results from the observations of a claims manager, simplifies the filling out of water damage claim forms, which is somewhat complex. Information is input directly into this simple ap-plication while the manager is on the telephone with the customer, who immediately receives an 80% pre-completed copy of the form. Noé has now left the Lab and entered the in-dustrialisation phase...

Out of the water

The June callAfter the auto and home connected objects of 2015, the Lab launched its second call for volunteers in spring 2016. By choosing the themes of health and companies, it focused more directly on the Group’s commercial challenges. 150 candidates came forward. After initial vetting, 10 teams of 3 employees were formed. In June, they presented their proposals to the two business divisions concerned. Each division selected one project, and the respective teams are now working on their projects part-time at the Lab. Their work remains confidential...


THE COMPANY’S NEW INNOVATION TOOLS

By skilfully mobilising big data resources, it is possible to understand risks and customer behaviour at a more granular level. In this area, new investments are putting Covéa at the forefront of performance.

New performance horizons


Françoise Labouille of Saran’s TISD, participating in

Covéa’s first Data Challenge

Christophe Clergue MMA general agent

in Conches-en-Ouche (Eure)

and a 360° Vision Client user

Covéa’s big data developments have enabled it to build a unique infrastructure: the Data Lab. Inaugurated in December 2015, it transparently mobilises the calculation and storage capacity of dozens of remote servers. In its first year of existence, 140 Group employees had already used it for dozens of trials on knowledge of customers and risks. Implementation of this framework has also given the Group’s data scientists exclusive access to a powerful, innovative tool: the XDStore, winner of an innovation prize at the 2017 Big Data Paris awards.

The XDStore (eXternal Data Store), which looks l ike a traditional e-commerce site, enables users to regularly come and pick products from among thousands of selected external data sources that have been vetted and, in some cases, pre-processed. A powerful recommendation engine is on hand to help them by automatically estimating, in a few clicks, the contribution, in an initial statistical model, of all the external files present in the tool. The gains in precision, relevance and time are substantial. Developed with the assistance of the Blue DME start-up, the XDStore has been operational since the end of the year.

This material effort has been backed by an equivalent effort in data use training, which has already benefited more than 100 employees in traditional classroom format. On 26 and 27 June 2016, it took on a more original form with the Data Challenge, which brought together around 60 statisticians, actuaries, IT specialists and analysts from entities Group-wide for a modelling competition. This training module was accompanied by a video-conference-format series of Data Classes and 60-minute support sessions, for which the hundreds of available slots were snapped up within a matter of weeks. We are pleased to say that certain of our extremely active communities are efficiently relaying the related information on the Corus corporate social network.

It is hardly surprising, therefore, that experimentation is soaring, on the subject of customer experience analysis, for example, or combating fraud and in-depth understanding of risk factors. Some projects are already in “production”, and are revolutionising teams’ daily routines. As for MMA’s “Vision 360° Client” customer interface, the first of its kind to have been developed, this is already streamlining customer relationship management.

140users

Already

software offer covering numerous aspects of analytics: exploration, modelling, dataviz, etc.

A

teraoctets of data

Several

6use cases completed and in production

18under development

5awaiting scheduling...

The Data Lab, is...


I discovered a whole raft of work on data that I was unfamiliar with. I will definitely do it again.”

The biggest benefit I get from Vision 360° is the overview of the customer file with, on a single screen, personal and work details and, systematically, existing policies, account history and opportunities generated by marketing... The information is always clear and easy to understand. For example, in a single click you can find out the account’s overall commercial weight, in euros.”

Balance sheet Commitments Income statement

CONSOLIDATED ACCOUNTS 2016ASSETS (in thousands of euros) Gross amount Amortisation

and provisions Net amount 2016 Net amount 2015

Goodwill 913,399 -819,702 93,697 132,785Intangible assets 476,021 -221,119 254,902 266,348- Insurance business portfolio value 149,873 -99,735 50,138 54,592- Other 326,148 -121,384 204,764 211,756Insurance company investments 87,183,910 -1,019,170 86,164,740 83,204,195- Land and buildings 3,619,646 -627,007 2,992,639 2,919,958- Investments in tied companies and businesses in which Covéa

has a stake 1,780,752 -169,764 1,610,988 1,376,217

- Other investments 81,783,512 -222,399 81,561,113 78,908,020Investments for unit-linked accounts 4,687,701 4,687,701 4,254,799Investments in other companies 293,583 -91,033 202,550 308,371Equity affiliates 299,959 299,959 327,665Underwriting reserves held by reinsurers and retrocessionnaires 2,082,922 2,082,922 2,131,230

Insurance and reinsurance receivables 3,546,330 -126,692 3,419,638 3,374,830Customer receivables from banking companies 1,561,552 1,561,552 1,882,758Other receivables 1,433,038 -29,911 1,403,127 1,219,897Other assets 590,626 -366,692 223,934 276,401Accrual accounts - Assets 2,789,160 2,789,160 3,032,004- Deferred sales charges 864,308 864,308 827,848- Deffered tax assets 889,814 889,814 1,070,828- Other 1,035,038 1,035,038 1,133,328Translation gains or lossesTOTAL ASSETS 105,858,201 -2,674,319 103,183,882 100,411,283


LIABILITIES (in thousands of euros) 2016 2015

Group capital 13,459,648 12,703,344- Mutual capital or equivalent funds 1,117,352 1,113,276- Premiums 6,358 6,358- Reserves 11,511,203 10,534,430- Net income 824,735 1,049,280Minority interests 66,630 59,825Subordinated debt 181,497 185,919Gross underwriting reserves 79,730,173 78,147,622- Life insurance underwriting reserves 54,892,134 53,833,624- Non-life insurance underwriting reserves 24,838,039 24,313,998Underwriting reserves for unit-linked contracts 4,703,185 4,285,223Provisions for liabilities and charges 564,932 555,483Insurance and reinsurance liabilities 1,118,629 1,138,961Bonds and negotiable debt instrumentsDebts with banking companies 391,538 485,811Other payables 1,777,697 1,714,997Accrual accounts 1,189,953 1,134,098Translation gains or lossesTOTAL LIABILITIES 103,183,882 100,411,283


COMMITMENTS RECEIVED AND GRANTED 2016(in thousands of euros) 2016 2015COMMITMENTS RECEIVEDInsurance companies 366,262 38,780Other companies 75 228,402COMMITMENTS GRANTEDInsurance companies 542,435 599,863Other companies 42,738 37,121PLEDGES RECEIVED FROM REINSURERS AND RETROCESSIONNAIRES 1,412,653 1,339,496OUTSTANDINGS ON LONG-TERM FINANCIAL INSTRUMENTS

CONSOLIDATED PROFIT AND LOSS ACCOUNT 2016ALL BUSINESS LINES

(in thousands of euros)Non-life

insurance business

Life insurance business Other business Total 2016 Total 2015

Premiums issued 11,658,965 4,751,740 16,410,705 17,317,877Change in unearned premiums -110,174 -110,174 -65,619Premiums earned 11,548,791 4,751,740 16,300,531 17,252,258Gross premium or income from other activities 279,386 279,386 368,326Other operating income 54,135 39,781 2,993 96,909 92,353Financial income net of expense 808,015 1,917,811 45,362 2,771,188 3,774,885Total operating income 12,410,941 6,709,332 327,741 19,448,014 21,487,822Expenses from insurance services -8,314,783 -6,056,516 -14,371,299 -15,861,483Reinsurance expense or income net of disposals -142,829 -15,566 -158,395 -335,202Expenses from other activities -350,265 -350,265 -474,370Management expenses -2,885,452 -369,988 -3,255,440 -3,178,183Total operating expenses -11,343,064 -6,442,070 -350,265 -18,135,399 -19,849,238CURRENT OPERATING INCOME 1,067,877 267,262 -22,524 1,312,615 1,638,584Intersectoral transfers -67,577 10,525 57,052 0 0Current economic operating income 1,000,300 277,787 34,528 1,312,615 1,638,584Other net income -17,874 -7,881Extraordinary profit or loss 27,765 -49,280Income tax -479,914 -550,121NET PROFIT OF CONSOLIDATED COMPANIES 842,592 1,031,302Group share in net profit or loss of disposed companiesGroup share in profit of equity affiliates 12,002 56,956Provision for depreciation of goodwill -18,025 -27,760CONSOLIDATED NET PROFIT OR LOSS 836,569 1,060,498Minority interests -11,834 -11,218NET INCOME (Group share) 824,735 1,049,280


This document is printed on 100% recyclable, biodegradable coated paper made from ECF pulp (Elemental Chlorine Free). It was manufactured in European paper mills with the following certifications: ISO 9001 (for quality management), ISO 14001 (for environmental management), PEFC (for using papers from sustainably managed forests) OHSAS 18001 (for health and safety).

www.covea.eu

Design, editorial consulting & production:

Photo credits: LaCompany/Pascal Dolémieux, Poly, Corinne Vezzoni Architectes, Photothèque Covéa, GettyImages.

Document published by Covéa External and Institutional Communication Department Tel.: + 33 (0)1 55 50 65 10 E-mail: [email protected]

We wish to thank all members of the Covéa staff who were kind enough to lend their image to illustrate this publication

MUTUAL GROUP INSURANCE COMPANYgoverned by the French Insurance CodeRCS Paris 450 527 91686-90 rue Saint-Lazare – 75009 PARIS

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A HUMAN ADVENTURE, A MUTUAL ADVENTURE - Covea · A HUMAN ADVENTURE, A MUTUAL ADVENTURE ... Joaquim Pinheiro Managing Director, Indemnities ... Laurent Tolli é Managing Director