Business report 2015 - Covea

Staying one step aheadBusiness report 2015

MUTUAL COMMITMENT

GREATER PROXIMITY

GREATER SIMPLICITY

GREATER EFFICIENCY

GREATER STRENGTH

10 > Flooding in the Southeast: maximum responsiveness

12 > Pre-empting bad weather13 > Know better to respond better14 > Sharing Nature

02 > A mutual adventure04 > Covéa’s model05 > Key figures 06 > Conversation with Thierry Derez

18 > A Group in motion19 > Governance22 > MAAF24 > MMA26 > GMF28 > International business: growth and skills

32 > Expert in its markets39 > Covéa, a learning, innovative,

attractive community

48 > Experience and vigilance: the key to investment

50 > Consolidated Accounts

Transforming itself for

2015 will be remembered by the players in the

insurance industry in France as a year of major

regulatory challenges. The coming into force of

both the Hamon law, which allows policyholders

to terminate their contract before the maturity

date, and the 2013 employment protection law

which requires all private sector employers to

subscribe to a supplementary health insurance

policy for their employees, had an immediate

effect on the balance and function of the

related markets. At the same time, all players had to make great

efforts to prepare themselves for 1st January 2016, when the

Solvency II Directive came into force with requirements, especially

in relation to financial reporting. All this in a context of growing

macroeconomic pessimism and historically low interest rates...

Faced with all these events, the Covéa Group continues to transform itself.

The company’s new organisation improves efficiency by simplifying its

organisation: Covéa takes care of strategic management, while the

brands deal with operational management. Its “Ambition Clients 2020”

[Ambition 2020 customer goals programme] projects the Group resolutely

into the future with a transformed customer experience thanks to

huge digital resources. Covéa’s mutual model combined with its rigorous

management give it the necessary strength to seize opportunities for

profitable growth despite the increasingly competitive environment.

In a world of constant change, Covéa has strengthened its positions while staying one step ahead.

BUSINESS REPORT 2015 / Covéa / 01

Covéa’s originality is inscribed in its history.The Group was born in 2003 out of the determination of two large mutual insurers, MAAF and MMA, to pool part of their resources to better meet the needs of their members, increase financial strength, ensure their sustainability and stimulate their development. This was the birth of France’s first SGAM [a Mutual Insurance Company Group]. They were joined two years later by Azur-GMF, which made an important contribution to further strengthening its position.

The common adventure is possible for the 3 brands because they represent the same mutual values, while having strong and differentiated identities. MAAF offers global solutions to individuals and businesses, without intermediaries. MMA is a multi-specialist that relies on a powerful network of general agents to reach all target audiences. GMF offers insurance contracts and services without intermediaries to civil servants, through which it is referred.Together they constitute the French leader in assets and liabilities insurance.

Over time, new mutual and pensions institutions joined the Group. MAAF, MMA and GMF are equipped with powerful common resources to manage their claims, assist their members, manage assets, invest in new technologies and develop new services. They have also reduced their costs, improved performance and prepared themselves to face the challenges of the future, including digitalisation. Covéa today counts over 11,4 million members around its values and its services.The Group strengths its position and continues to refine its governance model to move towards a “single enterprise”.

The human and mutual adventure continues...

adventureA mutual

/ BUSINESS REPORT 2015 / Covéa02

v

2003 • Creation of the Covéa SGAM by MAAF and MMA

2005 • Azur-GMF joins the SGAM

2008• Thierry Derez succeeds Jean-Claude Seys

as Chairman of Covéa

2009 • FIDELIA Assistance becomes

the sole assistance company for all Group customers

2010 • Covéa adopts a single management

structure for all financial and real estate expertise

2011 • Apgis, pensions institution, joins the SGAM

2012• Covéa Coopérations created to support

all of the Group's investments, and the birth of Covea Insurance in the UK

2013• New Group member: SMI, specialised

in workers’ Health and Protection insurance

2014• Acquisition of Sterling Insurance Group, UK

2015• Strategy is laid down at Covéa level to foster

the dynamic, harmonious and profitable development of the brands

• Creation of a Covéa UES (a unique place or negociation) ready to build a common compensation package, for each of the employees

The Group strengths its position and continues to refine its governance model to move towards a “single enterprise”

03BUSINESS REPORT 2015 / Covéa /

Covéa: a solid and powerful mutual insurer, built on the synergy of strengths and identities of its founding mutuals and its partners and associates. Wealth in its three brands, MAAF, MMA, GMF, Covéa develops with serenity a unique and sustainable model combining solidarity and responsibility, performance and goodwill.

HEALTH AND PROTECTION

LIFE IN

SURA

NCE

REI

NSURANCE

PROPERTY AND LIABILITY INSURANCE

IP

AN

D A

FFILIATED MUTUAL COMPAN

IES

SUBSIDIARIES AND SHAREHOLDINGS

EFFICIENT AND INEXPENSIVE FOR INDIVIDUALS

AND COMMERCIALS

THE ASSISTANCE EXPERT

INVESTMENT AT THE SERVICE OF INSURANCE

THE LEGAL EXPENSES INSURANCE EXPERTS

INTERNATIONAL

INSURANCE FOR CIVIL SERVANTS


Key figuresat 31 December 2015

HEALTH AND PROTECTION

LIFE IN

SURA

NCE

05

Life insurance

33%

Non-life insurance

67%

SPLIT OF LIFE AND NON-LIFE BUSINESS(France and abroad)

Turnover France/Abroad

RESOURCES

2,700points of sales

in France

Over

26,000employees,

including over

21,000in France

PORTFOLIOS IN FRANCE in m illion

2.9health insurance policyholders

over 11.4 millionmembers and customers

BREAKDOWN OF TURNOVER by activity in France, in million euros and in % change

Motor

3,602

0.9%

4,158

4.1%

Private Risks

1,748

4.1%

Commercials

2,619

3.4%

1,892

2.5%

627

-0.8%

Property and liability OtherHealth / Protection Individual Life

CONSOLIDATED ACCOUNTS (in billion euros)

Financial investments(in realizable value)

Equity capital (portion of the Group)

12.7 101.2

Turnover

17.2

+5.2%

Group net result

1.049

+9.1%

Solvency ratio

459% (S1)

382% (S2)

1.1commercials policies

7.7insured homes

10.5insured vehicles

INTERNATIONAL

15%

FRANCE

85%

BUSINESS REPORT 2015 / Covéa /

EXPERTISE & DYNAMISMIn 2015, our brands achieved good sales momentum despite increasing competition from the bank insurance sector, which continues to grow. Our turnover was up by 5.2% and exceeds 17.2 billion euros. At the same time, we managed to slightly improve our combined ratio, which reflects our “technical” performance (excluding financial products) as an insurer. We can be satisfied with these results, since a large part of our energies was absorbed by the new regulatory requirements – the introduction of the Hamon law, and imminent implementation of ANI and Solvency II.

Admittedly, the year was not bad in terms of claims, with no major disasters, even if the French Southeast, especially the region around Cannes, was badly hit by floods in October.

In 2016 competition remains fierce, which obviously limits our leeway with pricing. Also, due to the state of financial markets, we cannot expect returns on assets to continue contributing to revenue. We are therefore falling back to the fundamentals of our business: risk selection, portfolio monitoring and claims management. Except in case of unforeseen disaster, natural or otherwise, our technical ratio should continue to grow since, thanks to our mutual nature, we base our development on our own resources.

conversation“To transform ourselves, we are cultivating the art of Tempo.”

with Thierry Derez, Chairman

AUDACITY & STRENGTHIn meeting these challenges, Covéa’s strengths are numerous. I’ll take a risk – typical for an insurer - and mention three: our size, our financial strength and our knowledge of risks. This last point is perhaps the most important. We operate in mature markets against great competitors: the difference is therefore marginal, tiny differences in performance, directly related to the experience and expertise of women and men. And this is where, I am confident, we have the advantage.

I’m intentionally not talking here about innovation, particularly digital innovation, whose effects cannot be measured in one financial year. Our policyholders will not change their habits overnight simply because we offer them a new smartphone app. They will continue to prefer direct contact with an advisor for some time to come – and for some people, forever – somebody who can explain a contract to them in simple terms, which can be a particularly complex task if we must study it ourselves, line by line. It is also about being prudent in our direct marketing so as not to offend customers. We shall not forget that young people, with their fascination in new technologies, are not typical to our portfolios: they come to us later and later, just as they obtain their driving licence ever later. In short, we offer... and our customers decide. This does not prevent us from having a strong interest in digital innovation because, in their need for closeness, these days, policyholders choose the multi-channel.

DECISIVENESS & THE ART OF TEMPOWe must continue to move towards a common compensation package for our employees in France. We must also integrate our IT systems and increase common products within MAAF, MMA and GMF. In other words, capitalise on our size to improve efficiency and performance; de-normalise the "insurance" product is to be done after the event, providing a high standard of service. This is based primarily on our brands and their networks, which know how to create, and maintain, strong customer relationship.

Our strategy is to first build on our own strengths, which are great. We are not planning any acquisitions or spectacular mergers. Our international presence gives us growth and expertise, but its development is not vital. This is why we can seize the best opportunities, free from all constraints.

Above all, we strive to find the right pace in our transformation, both internally and in relation to the market. This is a very delicate balance that means sometimes being a step ahead of events, sometimes a step behind ...

In music, it is called Tempo, or the art of timing, and, for me, this is the key to our success.


« Our strenghts? Our size, our financial strenght and our knowledge of risks.

»


GREATERPROXIMITY


GREATERPROXIMITY


“My colleagues and I at Fidélia, the AIS Assistance service, tried our best to bring a little humanity to our distressed policyholders. Conditions remained difficult in the affected areas and we can say that we pushed ourselves to the limit, constantly improving our organisation throughout our intervention. Songul Acikel, Covéa AIS, case handler

”“Proactive and present: we really played out our role of insurer.Alicia Ricard, Director of the MAAF branch at Mandelieu

”

FLOODING IN THE SOUTHEAST: MAXIMUM RESPONSIVENESSLate on Saturday 3rd October, torrential rains battered the Southeast of France, especially in and around Cannes, causing devastating and unfortunately deadly floods. Material damages were considerable. To assist the affected customers physically and speedily, on the Sunday Covéa dispatched two mobile units, one in MAAF livery and the other in GMF colours, since the branches offices themselves were damaged.

By the Monday morning, management organisations from Covéa AIS (Assistance and Indemnity Services) were also in place to increase the capacity to handle calls from affected policyholders, register the maximum number of statements and provide appropriate services.

Meanwhile, AIS called up volunteers to support local teams and decided to anticipate by a few days the Ministerial Decrees for Natural Disasters, and to take charge without waiting for damages normally excluded from contracts. Networks of experts and claim adjusters both employees and freelancers, were also mobilised to proceed directly with the first assessments and speed up the first compensation payments. In the end, 1,800 claims were processed by MAAF, MMA and GMF. This was a particularly strong human experience for both the customers and the employees involved.

Covéa staff testimonies

proximityTransforming itself for greater

Being close to customers means being there to respond in the unfortunate event that the risk becomes reality. It means using Digital innovation to provide the best personalized customer service. It is also being alongside the customer and working for a better quality of life.


7… This is the number of successive messages that Covisioto users can receive on their mobiles to follow progress on the repair of their vehicle. When completed, they are asked to evaluate the quality of the repair work, thus rating the network accredited by Covéa AIS. 250 repair shops tested the application for the 3 brands in 2015. It will be expanded to the other 1,600 in 2016.

AT YOUR SIDE WHEN ACCIDENTS STRIKEAccompanying severely injured victims calls for a sense of humanity, as much as it does technical skills. In these difficult situations, Covéa can rely on its team of 51 injury assessors, unique among French insurers. Well beyond monetary compensation for sustained injuries, they meet victims in their domestic environment, and advise and support them in approaching the institutions focused on persons with life-changing disabilities. They can also turn to specialists: rehabilitation specialists, psychologists, social workers, and even occupational therapist and architect. They accompany victims, whether Covéa policyholders or third parties, in their adjustment to a new way of living with, for example, housing and vehicle conversion.

“I have been an assessor with the Group for 25 years. I work in rural areas and am in regular contact with victims, which I find very rewarding. It is crucial to have the knowledge of the region and of all the players that could be useful in supporting victims: the judicial system, the availability of doctors, entities involved in social integration or in employment support, manufacturers of specialised equipment, care establishments…

Eric Dechamp, Covéa AIS, Specialist Injury Assessor in Lyon for the Bourgogne Franche-Comté region

”

Extra servicesSeveral partnerships negotiated by Covéa allow us to offer services to members that are particularly useful at such difficult times. A partnership with Leaseway provides members with a long-term rental vehicle at advantageous rates, bearing in mind that in almost 90% of cases flooded vehicles are beyond repair.

For damages to homes, the partnerships with the But stores provides an opportunity for insured victims to replace damaged furniture and appliances at reduced prices.

“In the mobile units, customers were satisfied and went away relieved. It was gratifying to know that we helped them out of their distress. We worked in synergy with branch advisors and experts, each person contributed his skills, procedures were accelerated and often solutions were provided on the day. Ehssouna Oukhai, Covéa AIS, GMF vehicle accident Manager

”“ Receiving the victims at the mobile unit allowed us to take immediate measures and gave us the agility to deploy and respond. Claims were opened and processed, and in some cases a compensation cheque was issued. A particularly appreciated gesture. Christine Vernet, Covéa AIS, Facilitator at an MAAF mobile unit

”


of MAAF policyholders appreciate the text weather alert service** Study conducted by MAAF Marketing Dept.,

March 2016

89%

Datascientists, at the Analytics Risks division, never stop increasing the weather forecasting tools efficiency.

PRE-EMPTING BAD WEATHER“The passage of storm Ulrika is confirmed for late tomorrow morning. Most models predict a path over Southern Brittany / Charente-Maritime, with stormy gusts as far as central France. For text alerts, we give priority to the most exposed coastal departements...”. This was exactly the message from the Risk Analysis Centre at Covéa’s Marketing and Strategic Development Management in its warning email to its internal network on 12 February 2016. In the following hours, 260,000 texts were sent to MAAF policyholders, enabling them to safeguard belongings and delay non-essential travel... This particularly popular new service has operated for several months thanks to Coventéo, a new range of weather protection tools being perfected constantly by data scientists at the Centre. Most notably, it enabled the claims management teams to be put on alert in Cannes Mandelieu 24 hours before the devastating October floods in the Southeast, and to immediately locate the impacted areas. A few months earlier, during a cold snap in February, Coventéo text messages allowed policyholders of the 3 brands to take

precautions and protect vulnerable facilities. Never ceasing to deepen its knowledge of risk engineering, the teams at the Risk Analysis Centre also created Covisiomap, an app that identifies all dangers threatening a building: natural or industrial risks, the frequency of thefts or structural damage... It enables very early intervention through targeted prevention work. Group underwriters and accident prevention specialists, who roam the country to meet policyholders, have also praised Covisiomap: each month they order over 2,000 general exposure reports, which they then make available to their customers. They therefore have all the “cards” in hand to act in time.

* At the crossroads of geography and computer science, data scientists collect multitudes of data to produce maps of areas at risk.

greater proximity to members and customers


SERIOUS NOT SERIOUS?…This is naturally the first question that comes to mind when faced with unusual symptoms, or when someone has a fall or feels unwell. It is also the name of the mobile app (in French, “Grave Pas Grave ?”) created in collaboration with the Paris “SAMU” (emergency medical assistance service) of Paris for MAAF Santé. Policyholders can use this app to instantly assess the severity of symptoms and react effectively in all circumstances: referrals to qualified professionals, performing first aid or geolocation and immediate contact with the emergency services... the ultra-simple interface is in fact an expert system designed by a team of emergency physicians led by Prof. Pierre Carli, director of the Paris “SAMU”. The app is very popular with users and was awarded a Silver Trophy in Insurance by a jury of experts in October 2015. By then it had already been downloaded over 125,000 times.

KNOW BETTER TO RESPOND BETTER One of the great promises arising from the spectacular developments in data processing capabilities, so called Big Data, is to make available more targeted offers to customers with a more complete overview of their situation. The past 2 years, Covéa has been actively developing Big Data infrastructures called "Data Lake". These new technologies enable the extraction of all information on a customer, supplemented by data from external sources. Almost in an instant, a factsheet called Vision 360 is provided to the client’s advisor. MMA life insurance brokers were the first to make use of the system at year’s end. Their satisfaction promises its rapid spread.

TAKE CONTROL OF YOUR HEALTHSantéclair provides a complete range of support and prevention services for all Group Health products. Policyholders can avail themselves of the best tools to better manage their health budget, in particular through an extensive network of 7,500 carefully selected health professionals, with whom rates and services have been negotiated, but also through the analysis of quotes, the provision of hospital ranking charts… And to help them take control of their health, effective prevention programmes are available (e.g. on nutrition, smoking, lifestyle), sometimes even extending to health coaching.


SHARING NATUREThis is the theme of the partnership between GMF and the “Parcs nationaux de France” [National Parks of France] since 2008, which was renewed for 2015-2017. Its central objective is to facilitate access to, and knowledge of nature to everyone, including people with disabilities, families and seniors. It now includes the protection of bio-diversity. Finally, the implementation of the civic services scheme for the under 26s continues: 59 young people have already benefited.

On the subject, many achievements marked the first year of the new agreement, including the installation at Port-Cros of submersible consoles that allow people unable to dive into the sea to experience the sensations; the running of the House at the Parc de Florac, in the Cevennes; the creation of exhibition space at the Cayolle mountain pass, in the Mercantour; or the development of a hiking trail for the visually impaired at the Amazonian Park in Guyana...

greater corporate proximity


99... Young graduates from disadvantaged neighbourhoods have already been supported with their vocational integration within the framework of the partnership with the “Nos Quartiers ont du Talent” [Our Neighbourhoods have Talent association], initiated by GMF in 2012 and adopted by Covéa. Over 25 sponsors from different Group offices and brands are personally committed to the project.

COVÉA ATTENDS HANDI2DAY VIRTUAL FAIR 2015 marked the first participation by Covéa in the two editions of Handi2day, the virtual fair for the recruitment of job seekers with disabilities. Each of the brands, MAAF, MMA and GMF created their recruitment page on Handi2day.fr.

JOURNEYS FOR SOLIDARITYFrom September to December, all Covéa employees in France were called on to cycle or walk when travelling privately or on business. The aim was for everyone to achieve the overall distance "from the Earth to the Moon" together. This challenge for the environment was also a challenge for solidarity: every recorded kilometre raised the donation to the Wimoov Association, whose 90 mobility professionals spread across 19 regional platforms accompany people who have mobility difficulties. A cheque for € 20,000 was handed over to the association on the fringe of COP 21 [the 2015 Paris Climate Conference].

PROMOTING FEMALE ENTREPRENEURSHIPAs partner to the “Les Pionnières" Federation, which develops business incubators created or run by women, MAAF promotes entrepreneurship and economic development for women.

COP 21: COVÉA MAKES ITS CONTRIBUTIONLimiting the destructive effects of climate change is also about anticipating extreme events, which are expected to increase in number. At Cop 21, Covéa presented two weather prediction solutions, Coventéo and Covisiomap, which remain unique on the market (p. 12).

RESPONSIBLE PROPERTY MANAGEMENTCovéa Immobilier, in charge of the management of property investment and operation for all Group companies, systematically studies ways of reducing environmental impact. Appropriate certification or labelling is aimed for, as soon as possible, during the construction, renovation or maintenance of buildings.

CRASH TESTSAs part of its “Zérotracas” scheme (the hassle-free scheme) with website, app, videos, twitter thread, etc, MMA partnered with the Paris Prefecture of Police during the fortnight of road safety to arrange crash tests involving different road users. Covéa, through its three brands, is particularly active in terms of road safety.

Last but not least…- MAAF, MMA and GMF all have a Disability Mission to promote the integration and continued employment of disabled persons “Fondation MAAF” and “Fondation MMA” participate in financing community projects of a humanitarian, cultural, sports or educational nature with the aim of improving the lives of persons with disabilities – GMF partners with UNAPEI - The Solidarity Funds at MMA and GMF provide financial assistance to victims of non-insurable risks - MMA supports “Fondation Agir Contre l'Exclusion” [Foundation for Action Against Exclusion]


GREATERSIMPLICITY


GREATERSIMPLICITY


simplicityTransforming itself for greater

The transformation of Covéa into a single enterprise, announced last year, is ongoing. This new organisation is proving effective in its simplicity: the strategy is now defined at Group level, with the brands responsible for its operational success.


governance

Thierry DerezJean-Claude SeysArnaud BillonJean-Claude BiscouPhilippe DebenestSerge DussaussoisMichel RouxRémy 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 (SA) represented by Anne-José Fulgéras

MMA Vie Assurances Mutuelles represented by Christophe Guettier

MMA Vie (SA) represented by Mario Colaiacovo

Prony Habitations represented by Christian Delahaigue

La Sauvegarde represented by Jean Fleury

SMI represented by Gérard Dufour

Téléassurances represented by Pierre Vionnet

COVÉA’S BOARD OF DIRECTORS at 31 December 2015

A GROUP IN MOTION In 2015, the Insurance Division was supplemented by a Personal & Commercial Technical Department, a Strategic Marketing and Transformation Department and a Life Insurance Department. The General Human Resources and Internal Communication Department has been set up. Meanwhile, the General Secretariat and International Department, already in charge of acceptances, is also entrusted with reinsurance disposals. Also, the Accounts and Financial Communication Department has been created, gathering the financial statements of the entities and the combined financial statements and the Group financial rating. Four key functions as defined in the Solvency 2 law have also been implemented: Risk, Compliance, Audit and Actuarial.

Two major projects are still to be finalised: the all integration of information systems and the creation of a common package for the 19,000 Group employees in France belonging to the new Economic and Social Unit (ESU).

AUDIT COMMITTEEat 31 December 2015

simplicity

Jean Fleury Chairman(La Sauvegarde)

Michèle Beyt (Force et Santé)

Michel Coursat (MMA IARD Assurances Mutuelles)

Christian Delahaigue (Prony Habitations)

Anne-José Fulgéras

Hubert Ivanoff (La Garantie Mutuelle des Fonctionnaires)

Michel Roux Pierre Vionnet (Téléassurances)

Jean-Jacques Vouhé

1

Patrice FORGET Managing Director,

Secretariat/International

2

Christian BAUDON Managing Director, Insurances

3

Valérie COHEN Technical Director Motor and Home

and for private individual clients

4

Thierry DEREZ Chairman and Managing Director

5

Françoise TORDJEMANN Director, External and Institutional

Communication

6

Laurent TOLLIÉ Managing Director GMF

7

Stéphane DUROULE Managing Director MAAF

8

Amaury de HAUTECLOCQUE Director, Social Affairs

and Identity Group

9

Hervé FRAPSAUCE Managing Director MMA

10

Philippe MASO Y GUELL RIVET

Managing Director, Technology and Information System

11

Lionel CALVEZ Key function, Risk Management

12

Éric LECUYER Director Actuaries, Control

and Economic Steering Committees

at 31 December 2015Executive Committee

11

12

107

8

9

1

5

2

6

3

4


13

Maud PETIT Managing Director, Accounts and Financial Communication

14

Michel GOUGNARD Managing Director,

Human resources & Internal Communication

15

Sophie BEUVADEN Managing Director, Investments

and Risk Control

16

Joaquim PINHEIRO Managing Director, Indemnities

Assistance Services

17

Édouard VIEILLEFOND Director Life Insurance

18

Antoine ERMENEUX Director, Strategic Marketing

and transformation

19

Paul ESMEIN Chief Advisor

20

Didier BAZZOCCHI Managing Director, Health/Protection

and Institutional Partnership

21

Jérôme RONCORONI Key function, Compliance

22

Bertrand LEFEBVRE Key function, Group Internal Audit

23

Jean-François ANDRJANCZYK Key function, Actuarial

20 21

23

17

13

14

15

16

1918

22


MAAF, for individuals and commercials

“Despite a year complicated by regulatory changes, we have many reasons to be satisfied. In P&C insurance, despite greater customer volatility, our turnover and portfolios achieved above-market growth, with rises in multi-car and home. In pensions, our portfolio grew by 3% and in savings, takings were boosted by contracts in units of account, whose volume doubled. Finally, we exceeded our growth targets on the professional market, apart from the Health market that was destabilised by ANI [National Inter-professional Agreement]. These results were achieved thanks to the strong commitment of our employees, supported by an unprecedented training plan. In 2016, the “Tous engagés Clients” [All committed to Customers] plan will be the symbol of our activities. It aims to improve the quality of our customer relations, to strengthen our P&C market share and to raise it in Health and Pensions. Our ambition is to move people to want to come to MAAF and stay.Stéphane Duroule, Managing Director MAAF

”

If we had to sum up 2015 for MAAF in a single figure, this would certainly be +4.8%. This is the rise in the number of commercial multi-risk contracts, at the same time confirming its status as the traditional insurer for the artisan world, the successful placement of its new products and the strong commitment of its teams to defend its territory.

The year of “POWER PRO”This year MAAF launched its new professional multi-risk formula with two types of cover: civil liability, and insurance of premises and contents. These can be supplemented by options called “peace of mind”: financial, legal or mobility. Adaptable to the specific needs of each entrepreneur, this product was very well received.

In response to the requirements of the National Inter-professional Agreement (ANI), MAAF also developed its supplementary group health product, once again playing the modularity card. The “Façonnables” now offers 6 levels of guarantees, complemented by a range of practical services and in 2016 should reach the full extent of their commercial appeal. The launch of these two products was supported by a comprehensive training plan involving 3,000 employees. Another investment that weighed in their success: the “POWER PRO” communication app, seen from September to December. MAAF deserves to be No. 1 in the Insurance* sector thanks to advertising awareness.

The last decisive boost was the creation of “Bonus à vie PRO” [the MAAF lifelong PRO Bonus], which rewards a 10% lifelong discount to professionals and companies with no claims over the previous 10 years. An innovation along the lines of the lifelong Bonus for drivers introduced in 2007.

Strengthening ties with its policyholdersIn 2015, MAAF also launched new digital services to strengthen ties with all of its policyholders as part of the Group’s “Ambition Clients 2020” [Ambition 2020 customer goals programme]. The app “MAAF et moi” now allows customers to access their contracts and certificates on their smartphones, but also to follow the processing of claims, view reimbursements or to be geo-located by MAAF Assistance in case of breakdown or accident. An updated version of MAAF Vie customer place was also put online with more services. The “Grave Pas Grave ?” (Serious Not Serious?) app developed in collaboration with the SAMU [ambulance service] of Paris assists in the detection and management of medical emergencies. Finally, there was an update to the Alcootel app, whose aim is to ensure people only drive when it is safe to... A range of innovations and tools that will enable MAAF to continue to strengthen its positions, in 2016, and remain the market benchmark for quality value.

* Source: Assurances Sofres monthly barometer

For MAAF, 2015 was a year of reconquest for commercials, with the launch of two new products. It also continued to expand in other markets and to strengthen customer relations...

employees

Over 7,500insured homes

2.6million

points of sales

575insured vehicles

4.1million

members and customers

3.8million


MMA, the insurer of commercials and entrepreneurs

“2015 was a strong year for MMA, which sharply repositioned itself on the Commercials and Corporates market: our turnover increased by 2%, four times faster than the market. We owe this result firstly to the commitment of our network of agents and brokers, who mobilised to promote our professionals range, most notably our new group health and protection product “AFFIPRO”. Thanks to them, we were able to sign 20,000 health insurance contracts in a few months... The launch of our new signature, “Entrepreneurs d'assurances” loudly affirms our strategy: our agents and brokers are entrepreneurs serving entrepreneurs. Our objective is to support them in their activities, but also in their daily lives and in their personal plans. With this in mind, we created the “MMA Entrepreneurs du Futur” Foundation. At the same time, we have not forgotten individuals: in September 2016, our new online product “Auto Access”, positioned at entry level, will enable us to attract new customers.Hervé Frapsauce, Managing Director MMA

”

“Entrepreneurs d'assurances” [Insurance Entrepreneurs]. In choosing its new signature, MMA made clear its strategy and marked its territory. And as this signature was a success, almost instantly projecting the brand to a strong second place in spontaneous awareness among business owners, it was definitely the right choice. They can count on the constant support of MMA agents and brokers, who are also business owners, speaking the same language and facing the same challenges: protection of operating resources, safeguarding the business should the owner become indisposed, covering his professional responsibilities and, since the introduction of ANI, choosing supplementary health insurance for all his employees.

A daily commitmentMMA meets all the needs of companies with the launch of its “AFFIPRO” solutions in group health, which comply with the new regulatory requirements. These solutions are complemented by assistance and support services, a practical guide and a digital service of the National Inter-professional Agreement (ANI). As for “MMA BTP”, product for builders launched in 2014, product launched in 2014, confirmed its successful start with a 20% increase in signed contracts.

For MMA, this commitment in support of entrepreneurs goes beyond the simple execution of its insurance business. In 2015, it launched the “MMA Entrepreneurs du Futur” [MMA

Entrepreneurs of the Future] Foundation to provide support at a local level and encourage their innovative initiatives, which create activity and employment. The best initiatives will be rewarded each year through a regional grand prize-giving for the best innovations. Furthermore, a partnership signed between the Foundation and the Chambers of Commerce and Industry specifically aims to support companies in several areas: digitalisation, the transfer of activities, the manager’s health... Thematic workshops, led by experts, are offered throughout the country.

Close to all its customersIndividuals also benefit from the determination of this brand to be close to its customers. In fact, the new mma.fr site offers more features and easier navigation: customers have their own space, structured according to their interests. The “Zérotracas” (hassle-free) prevention scheme continues to be very popular with the public, with 3.3 million visits to its prevention sites. Finally, MMA was recognised for the quality of its online customer relations by winning the Qualiweb trophy 2015 for the insurance sector. This will feed the brand’s strong conquering ambitions for 2016!

* Professional and Corporate Awareness Survey (IFOP, carried out from 19 to 30 October 2015 among 1,200 companies from 0 to 50 employees, representative of French companies in this category).

(excluding Agents and their staff)

employees


1.6million

points of sales

1,739insured vehicles

2.1million

MMA, the Group’s spearhead and No.3 on the french commercials and corporates market, strengthened its positions and is committed to assist entrepreneurs beyond its insurance business. This proximity is also reflected in its new digital services.

members and customers

3.3million


“If 2015 was a great year for GMF, it is firstly because it has greatly strengthened its relationship with its members. Of course, it owes this success to its mutual values recognised not only by its loyal customers, but also by newcomers. This explains how it actually benefited from the Hamon law. It also owes this success to its ability to evolve its products as and when necessary. The new “Accidents et Famille” contract, simplified and enriched with new guarantees, recorded solid turnover growth of 10%, while the supplementary “SANTÉ PASS” brought us a quarter of all new business in the second half of the year. Finally, digital innovation is contributing to tightening relationships. We are therefore on track to achieve our goal: to ensure good exposure so that GMF is the first choice of civil servants.Laurent Tollié, Managing Director GMF

”

Revenue increased by 3% for GMF Assurances; a rise in all portfolios, with 1.9% in Motor, 1.7% in Homes, 10% in “Accidents et Famille” [Accidents and Family], 12% in Health and 20% for the Protection; savings products, life insurance and legal protection also met some success. For GMF, 2015 was a good year in terms of commercial development.

Forward-moving product rangeThe reasons for this success are several. A large part was achieved through the work done to provide better protection to policyholders and support their evolving needs. A good example is the flagship product taken up by 1 member in 3: “Accidents et Famille” - its school insurance now covers theft with violence or through racketeering, and includes psychological support in case of cyber-harassment; it offers personal accident compensation at the first instance of disability and up to 2 million euros; it also proposes new services, in partnership with Fidélia, the Covéa Assistance company, when a loved one is stricken by illness, disability or old age. The “SANTÉ PASS” [Health Pass] has grown from two to four schemes, with an “à la carte” choice but no rate increase. It now includes a supplementary scheme that can also benefit private sector employees covered by a group contract, as well as their spouses and children. This is good way to adapt to the new context of the National Inter-professional Agreement (ANI).

Proximity and connectibilityGMF has not failed to seize the new digital opportunities to be closer to its customers. The gmf.fr site, now redesigned and available for tablets, is clearer and more fluid. The user can request a call-back or make an appointment online. It also includes an updated and simplified version of Auto quotes that enables faster enquiries. The result: the number of quotes multiplied by 3 and appointments by 2. Finally, dematerialisation is progressing well for volunteers with, for starters, notifications on monthly payments.

GMF also knows how to reach its members on “their territory.” It is partnering with the French national rugby team and participates in numerous events that allow people to discover the world of rugby. In collaboration with the national parks, it has worked for several years to open up access to natural spaces for people with disabilities. Internally, it continues to ensure compliance with equality in recruitment, mobility and salaries.

A new mobile app soonIn 2016, GMF will continue to develop products and services tailored to the needs of its members, with particular attention to new uses for cars. 2016 will also be the year of the mobile, with a new app for its members.

GMF, the leading insurer for civil servants

With an enhanced range of new digital services and enviable growth rates in all markets, GMF is on track to meet its key objective: to become the first choice of civil servants.

employees


2.8million

points of sales

382insured vehicles

3.2million

members/customers

3.5million


growth and skillsinternational businessCovéa achieves 15% of its turnover abroad.Focussing on the United Kingdom, the integration of Covéa Insurance and Sterling Insurance illustrates the Group's objective to build consistent and offensive entities able to seize opportunities in their domestic market.

It's a story of skills. With the acquisition of Sterling Insurance in the UK in Febuary 2015, Covéa has ensured the reinforcement of experienced teams with an excellent reputation at the heart of their business: customer service, offering a range of medium and high networth home insurance products, insurance for Commercials and Protection, each representing about one third of company turnover.

Experts in quality of serviceThe UK insurance market is quite different from the French market. Historically, brokers have held a dominant position, but are now in competition with direct sales and affinity distribution. This past decade, standard products have been purchased by customers mainly through online comparison sites. For the client, the insurer often has one name: that of the intermediary. The latter therefore calls directly on their reputation, making them extremely accommodating in terms of quality of service. They expect stable and qualified agents in whom they can have complete confidence in their dealings, which range from underwriting through

“Our primary objective was to forge ahead with the integration as quickly and efficiently as possible, while preserving the expertise of each entity. The different work-streams were steered with the greatest transparency and in an extremely positive atmosphere. Alain-Marc Chesnier, Integration Programme Manager, International Department

”

to claims management. Sterling can be proud to have been chosen to supply high networth home insurance products to the John Lewis department store, a veritable institution in Britain.

Successful integrationSterling Insurance also brought another benefit: to help diversify the product range of Covéa Insurance, until then very focused on the motor insurance sector. The new group is now in position to benefit from ever greater growth opportunities, while diluting risks. While support operations were pooled, the three company main sites were kept.

Future plansCovéa Insurance does not however plan to rest on its laurels. Besides two new sites, the redesign of insurance products for commercials and the creation of a single dedicated information system, in February 2016 Covéa Insurance launched a direct motor insurance product under the Provident brand, and will see its 650 employees in Halifax move to brand new premises in July 2016.

Covéa Insurance was listed in the “Sunday Times 100 best companies to work for” in the UK for the second consecutive year.

Three main sites:

Reading (Berkshire)

Halifax (Yorkshire)

West Malling (Kent)

10thUK Motor insurer

Covéa Insurance

Sterling

million euros 629 / 1 ,047 employees

At 31/12/2015

million euros 147 / 355 employees

Turnover

Turnover


Bipiemme VitaInsurance

Life/ Health ProtectionPartner bank

Subsidiary 81

Bipiemme Assicurazioni

InsuranceNon-life

Partner bankSubsidiary

23

Covéa InsuranceInsuranceNon-life

Brokers / directSubsidiary

1,402

Swinton Broker

Non-lifeMulti-channel

Subsidiary 3,684

UNITED KINGDOM

ITALY

AME Life Lux Insurance

LifeAuthorised brokers

& agentsSubsidiary

23

LUXEMBOURG

La Capitale AGInsurance

Non-life / lifeAffiliated agents / brokers

Participation

CANADA

CSE InsuranceNon-life

Non-exclusive agentsSubsidiary

126

UNITED STATES

Caser Insurance

Non-life / lifeBank insurance

Participation

SPAIN

COVÉA INTERNATIONALLYCovéa’s international presence provides it with an external source of growth in the P&C market, which is more constrained in France. By placing itself as a privileged observer on sometimes very different markets, it enriches its experience and thinking on new uses. Covéa targets countries with mature markets and a stable regulatory environment. Its priorities focus on those where it is already present with strong companies and sustainable profitability.

billion euros turnover

15%

of Group sales

+21.7%over 2014

2.6

At 31/12/2015

employees in

5,000over

countries6


GREATER

30 / BUSINESS REPORT 2015 / Covéa


A new form of risk managementBy creating a P&C Technical Division, Covéa has declared its ambition: to remain the leader in this highly competitive segment. What are its qualities to achieve this? Its risk control and claims management, the power of its brands and the multiplicity of synergies, especially through the development of data processing capabilities and digital innovation.

New online services can reduce the cost of risks in these very mature markets subject to strong competition. These services also pave the way for a new relationship, enabling policyholders to participate in their own risk management. An example is when they are invited by text to take precautions when a storm is forecast. This relationship is expected to become increasingly close, with greater attention to lifelong advice, support and assistance.

The prospects for profitable growth are also strong in general insurance for professionals and businesses. Here again, the power of personal contact, advice and belief in resources is central to performance.

Partner brandsIn choosing the signature "Insurance Entrepreneurs" and launching the “Entrepreneurs of the Future” Foundation, MMA, already No. 3 on the Commercials market, has made clear its ambition to be perceived by these customers as a preferred partner in the search for global solutions to protect their staff, work resources, personal property and the future of their families. The peculiarity of their distribution network, combining general agents and brokers, gives them the means. The new “MMA BTP” (for builders) confirmed its positive start to 2014, with 20% more contracts. The course for the future is drawn: to achieve a growth rate higher than the market. For its part, MAAF launched its new Professional Multi-risk scheme, which in 2015 translated into a sharp increase in contracts of 4.8%. Throughout the year, the brand implemented a broad management training plan for its 3,000 employees entrusted with advising. MAAF remains, more than ever, the favoured partner with commercials.

expertin its markets

Property and liability insurance, health and protection, life insurance, assistance, legal expenses insurance... In each segment of the insurance market, Covéa brands have relied on their unique technical expertise to address regulatory changes, uncertainty in financial markets and increased competition, particularly with Commercials. Thanks to the intense preparatory work led by the now unified divisions, their products and services are of the highest level, and their teams approached 2016 with a conquering spirit.

PROPERTY AND LIABILITY THE POWER OF A LEADER


Cesvi, expertise and competitiveness toolMAAF was already one of the founders in 1997. Covéa took control of Cesvi France, a centre for training and technical research on motor insurance, unique in its sector. Its remit is to develop innovative repair methods, test numerous materials, study newly marketed vehicles and reconstruct accidents on its crash test site... Cesvi empowers Covéa to better adjust its rates, train authorised partners and reduce its loss load. It is also a powerful lever for innovation at the dawn of the connected vehicle and the greater adoption of driving aids.

Covéa Affinity: leader in affinity solutions in FranceAs international specialist in affinity contracts, Covéa Affinity offers tailored responses to insurance requirements for vehicles, trucks, construction equipment and agricultural machinery. Its solutions cover the needs of manufacturers for mechanical warranty insurance, funding, automotive and borrower insurance.

At 31/12/2015

Insured vehicles:

over 2 million

Turnover 2015:

469 million euros

58% of activity in France

42% in other European countries

Simplify general insurance structuresAs part of the further simplification of the Covéa legal structure, corporate activities at Covéa Risks, Covéa Fleet and Covéa Caution were incorporated into MMA IARD SA and those of Nexx and NOVEA into MAAF Assurances SA.


A changing market The introduction in 2013 of the law to Safeguard Employment, which requires private employers to take out supplementary health insurance for their employees before 1st January 2016, upset the Health and Protection Insurance market. Many subscribers shifted from individual health protection for collective cover. In 2015 we finally saw the start of this phenomenon, with the affected employers not apparently rushed to set up this new regulated measure. The inevitable loss of individual contracts remained far below forecasts. In terms of turnover, this loss will be offset in 2016 by the introduction by Group entities of the new collective health and/or protection contracts taken out in 2015, including new acceptances for health/protection reinsurance.

Well anticipated mobilisation Since 2013, Covéa has prepared itself for the upheaval on this market. With the addition to the Group of Apgis and SMI, both recognised social protection specialists, Covéa acquired their skills to position itself strongly in the market of collective social protection. Teams from Apgis and SMI worked with those of MAAF and MMA to adapt or create collective health and protection products for Commercials: 350 employees worked on these for 18 months. This

mobilisation has continued with an awareness campaign and training of 4,000 employees from the MMA and MAAF networks focussing on the new product ranges, “Les Façonnables Pro” and “AFFIPRO Santé Collective”.

The 13,000 health contracts for Commercials signed by MAAF and MMA in 2015 are confirmation of the good positioning of these products, which have allowed Covéa to maintain in the "Top 10" for Collective Health in France. This strong determination must be accompanied by patience, with strong price pressures on this market, moving the Group towards a strategy of cost-effective, long-term development.

On the Individuals Health and Protection market , the good performances of the Group's products are no mere coincidence. GMF’s “SANTÉ PASS” and “Essentielle”, MAAF’s “Vivazen” and “Façonnables” 1 and 2, MMA’s “Vitale” and the new “Assurance Revenus” were all recently overhauled. From 2016, they will mitigate the impact of mandatory individual health coverage for corporate employees.

Reinsurance acceptances, an opportunity to seizeThe Health and Protection development on Commercials have brought about a need for reinsurance acceptance activities, as the players on this market have greater risks to cede. In 2015, Covéa therefore introduced an acceptances drive, whose start met expectations.

Individual health customers:

1.6 million

Collective health customers:

1.3 million

HEALTH & PROTECTION PATIENCE AND DETERMINATION


LIFE INSURANCE: RETIREMENT SAVINGS, CAPITALISATION AND PROTECTIONA year of changeAlthough down compared to 2014, rates paid this year on major life insurance contracts by MAAF, MMA and GMF are still quite far above the market average. Anticipating this downward trend linked to the historically low level of bond yields, in 2015, Covéa aimed to rebalance its product offering. The brands generally strengthened their commercial dynamic towards units of account and in favour of life insurance excluding savings (life pensions, individual retirement). In fact, there is real potential in the life pensions market, especially death insurance and loan insurance, as well as in individual protection contracts for self-employed professionals, as per the Madelin law offered by MMA and MAAF.

Meanwhile, in 2015, the Group made significant efforts to adapt to the ever more stringent regulatory requirements, especially in terms of unsettled contracts, the duty to provide advice and the fight against money laundering.

Towards diversificationCovéa’s sound financial position gives it the strategic serenity that allows it to develop products tailored to customers. Its decidedly mutual vision demands that it does so with an aspiration for excellence.

With regard to savings, the Group will thus continue to improve its customer support to better manage their assets, fulfilling its duty of advice, always better adapting its product range and encouraging a regular and countercyclical approach to investments in assets with greater risk. Indeed, in a context of low rates continuing to put pressure on euro fund rates, and even more so on net inflation, Covéa has set itself the long-term objective to offer higher risk and more lucrative products tailored to customers, but still fluid, comprehensible and simple. In particular, the complexity of products and strategies will always be adapted to the customer profile and the economic cycle, with the aim of developing wealth management products of high added value via its networks and specialised intermediaries. All this, of course, entirely consistent with the Group's strategy aimed at Commercials.

Life protection are actually a component of wealth management that are not enough covered by its customers. Covéa will continue to develop this focus, animated by its concern to protect.

2015: rates remain competitive Despite a background of continuing low interest rates and uncertain financial markets, MAAF, MMA and GMF offer a competitive return on savings. The Group continues to pursue a prudent management strategy in order to sustainably safeguard the interests of investors who put their trust in them. So this year, MAAF, MMA and GMF have again significantly strengthened their reserves, enabling them to keep their profit sharing provisions at a much higher level than the market average.

Covéa Life Insurance Division: responding to challengesAt the close of 2015, Covéa presented to its employee representatives a new reorganisation plan for its Life Insurance Division. This became effective on 1st March 2016. Its activities are now organised by profession so as to further improve the Group's performance, to effectively satisfy its members and to anticipate their future needs.

MAAF2.75%* on “Winalto” and “Winalto Pro”, the two main euro linked MAAF contracts on the market

MMABetween 2.35 and 2.85%* yield on funds in euros of the main life insurance and capitalisation contracts

GMF2.80%* on all contracts and funds in euros

* Net of management fees and pre-tax and tax.

At 31/12/2015

RETIREMENT SAVINGS

Gross revenue

3.9billion euros

Including

3,536million in euros

and

384 million units of account

Net revenue

824million euros


FIDELIA Assistance, the assistance company for all Group brands, operates 24/7 in France and around the world to assist its customers.Its areas of intervention include medical assistance and services for the individual (repatriation, medical evacuation, services at home, child care, scholastic support, health advice...), motor assistance (breakdown assistance, towing...), home emergency assistance (locks, plumbing, electrical...).

Since it was founded in 1990, Fidélia has worked as a white label company for most of its clients. It is thus the assistance provider for insurance companies such as “Mutuelle de Poitiers”, health mutuals such as “Mutuelle Générale de la Police”, “Mutuelle Nationale Territoriale”, “GMPA”, “Intégrance”, and financial institutions such as “La Banque Postale”, “Crédit Agricole CF Sofinco”, “Natixis”...

2015 was marked by a high level of client calls (over 1.2 million cases), rising significantly for vehicle assistance. Customer satisfaction remains very high at around 96%.

2015 also saw the culmination of the Dynamic Performance plan started in 2012. This plan focused on customer satisfaction, innovation and profitability, and allowed Fidélia to modernise equipment and reduce claims expenses by an average of 8% per year through tight control of its network of service providers.

Thanks to the professionalism and commitment of its teams, Fidélia is implementing a new strategic plan, firstly by improving the customer experience through innovation so as to build loyalty still further, and secondly by aspiring to increase the effectiveness and performance of its organisations through the recognition of its employees at fair value.

ASSISTANCE THE MOMENT OF TRUTH FOR INSURANCE

At 31/12/2015

New cases

Over 1.2million

(+3.9%)

Customer satisfaction rate

95.8%Customers

Over12million

Employees

1,2003 sites (Saint-Cloud, Tours and Nantes)


The market for legal expenses insurance is booming. As with many economic sectors, it sees the arrival of numerous ambitious start-ups that try to bypass the traditional players by increasing online services, often free of charge. At the same time, the decree of 11 March 2015 introduced a compulsory phase to find amicable solutions before any court proceedings and, by transposing a European directive, requires all professionals to set up free mediation for consumers.

APJ [Assistance Protection Juridique – Legal Protection Assistance], the Group’s specialised division that assists MAAF and GMF policyholders, had largely anticipated these trends by creating, in 2014, a website with a strong focus on selfcare. The search for negotiated outcomes has always been part of its expertise and at the heart of its business. As the first market player in the legal expenses insurance of individuals in France, APJ intends to remain an efficient and agile vehicle for access to the law, for customers in search of autonomy and ever faster solutions.

DAS, the Group's division that assists MMA policyholders, also expanded its focus on customer service. It set up a new organisation entirely focused on customer satisfaction and amicable negotiation. At every stage of their journey, customers are accompanied by legal experts who facilitate faster and cheaper solutions. This is a solution that DAS already offers from the information phase. Its ambition is to remain the preferred legal expenses insurer for commercials in France.

DAS and APJ are pooling their assets in a convergence programme that in 2016 will result in sharing best practices and the creation of joint networks of lawyers, experts and enforcement agents.

LEGAL EXPENSES INSURANCE ENHANCED COOPERATION FOR DAS AND APJ

APJ DAS

135 million euros

124 million euros, including 83.8 million

euros from legal protection

307,500 130,000

56,400 30,000

At 31/12/2015

Turnover

Requests for legal information handled by telephone

Open cases


Despite a series of years with high claims level worldwide, particularly due to natural disasters, the reinsurance market attracted new competitors in search of returns. Present on the market for over 60 years, Assurances Mutuelles de France (AM) was able to meet the challenge by relying on the stability of its very experienced teams and the financial strength of Covéa. 2015 was in fact an exceptional year for the company, with turnover growth of almost 10%. The reinsurance acceptances business is international by nature, since it acts as a balance for the onsite risks of insurance companies, which often have very localised activities. When closing its accounts, AM benefited from favourable exchange rates, but

this is far from explaining its overall performance. A small player in a market where contracts are processed by the year, AM has particularly stable relations with most of its partners, including the oldest with which it has had a continuous relationship... for 50 years. AM’s professionalism is a strong argument, on a stage where opportunistic players are showing signs of disinterest. It resulted in very good results, with a significant rise in the number of cedants on its books. AM has expanded its activities in Japan, Morocco and Anglophone Canada.

REINSURANCE ACCEPTANCES ANOTHER YEAR OF PROFITABLE GROWTH

At 31/12/2015

Processed contracts

1,291Cedant companies

215Countries

35Turnover

154.5million euros(10% increase)

Equity

1.2billion euros

Standard & Poor’s

A+AM Best

AExcellent

Covéa Cooperations takes up the batonSince 22nd October 2015, Covéa Coopérations, the Group entity holding all the shares in its subsidiaries, has become a reinsurance company. On 1st January 2017 it will also take over the international reinsurance acceptances of AM. Under its banner, Covéa will therefore market its new reinsurance activities in health-protection, launched on the introduction of ANI, together with those of AM France in the same area. AM’s sales representatives have already begun to inform its partners of this development. For the latter, there will be no changes, their interlocutors will remain the same. In the last similar reorganisation in 2011, they did not lose the confidence of any cedant...


A learning,innovative, attractive community

When participating in Covéa Campus, practising co-development or integrating Lab Covéa, Group employees are always surprised by the range of different work and innovation possibilities available to them, regardless of brand or job. Covéa is a learning community that is also innovative and attractive, thanks to the richness of its business scope and diversity of business activities.With the introduction of several new schemes, 2015 can definitely be referred to as a pivotal year.

COVÉA CAMPUS THE ACCELERATOR FOR INTEGRATIONMore than 1,300 applicants for 360 places and 46 proposals, of which 14 were being tested at the end of 2015... The success of the first Covéa Campus season, Covéa group training university can be summed up in numbers. It can also be described in words: “On arrival we considered ourselves as competitors, proudly wearing the colours of our brands. As the sessions progressed, we put these aside. The discovery of other perspectives was the seed from which our ideas sprouted!” as summarised by Christine Tavernier, L&H Insurance Manager at Niort. The objective to accelerate the creation of a common identity for all Group employees seems on track. Such as developing a new work culture in collaborative ecosystems, as expressed by Sabrina Beauclair, “Espace Master” Manager at Saint-Herblain: “This experience led us to surpass ourselves, but above all to want to continue doing so.” Throughout the year, monthly workshops of around twenty persons were held in Paris in which participants were able, on a voluntary basis, to unleash their creativity on three overarching themes: Covéa, what strength and singularity? How to work together better? What form of management in the digital era?

Season 2 promises to be equally rich, with 240 employees with customer related jobs who will work on the theme “How to make Covéa a major asset for each of its brands”.


A learning, innovative, attractive community

DigiTalentsTo develop a digital and collaborative culture within the Group, in 2015, Covéa launched “Tous DigiTalents”, a personalised coaching activity between digital savvy employees and a panel of top managers wanting to be digital talents. 40 working pairs were formed for this reverse mentoring.

Co-development or the art of cultivating relational skillsNot a trainer, but a coach-facilitator, groups made up of a few colleagues from diverse backgrounds, sharing and mutual support as a learning method... Co-development, an idea from Quebec, continues to revolutionise the support of managers, with the aim of enriching their range of relational behaviour when dealing with difficult situations. During the nine monthly meetings, each participant exposes the other group members to an actual problem they encountered. These one-day-consultants help the others to consider new angles and explore new solutions. The following month, that participant reports on the results of their implementation... Since its launch in 2008, around 1,000 volunteers within Covéa were able to experience co-development.

Corus, the year of consolidationCorus, the Group internal Social Network launched at the end of 2014, has already found its space at the workplace. As proof, the milestone of the millionth visit achieved in early October 2015. More than 1,100 communities have been opened in the context of collaboration with work, projects or team leadership. Blogs, forums and file sharing tools are also used, reducing unnecessary email exchanges.

Digital familiarisation of employeesIn its 2nd edition, Digital Days, the digital familiarisation event for employees, was held in 2015 at three Group sites. The 1,500 participants were able to discover the digital projects driven by Covéa and its brands, and learn more about the new digital opportunities.


THE ENERGY TO INVENT One day. That is as long as it took for all 60 seats at the first Covéa Hackathon to be reserved. This shows the appetite for innovation among Group employees, any of whom could register without distinction to profession, service or entity. As befits such challenges popularised by the giants of Silicon Valley, they met up to design new digital services for customers or Group employees, all in record time.

The flexibility gameAs spectacular as it sounds, the Covéa Hackathon is simply part of the campaign implemented by the Group to release creative energies and generate a real innovation community. “Learning to capitalise on the diversity of our skills was as important a goal as the projects themselves”, explains Claude Friedrich, Director of Research and Development. “That's why we did not want pre-formed teams, and awarded bonus points to those teams that included a diversity of persons in relation to gender, businesses and sites. However, all received the maximum bonus!”. The outcome of the projects illustrates another aspect of the organisation set in motion: the interchangeability of the schemes, enabling projects to find the best breeding ground according to their stage of development. For example, the winner, Selfair Habitation, a concept to report and value movable assets online, was taken up by “CBien”, a start-up company in which Covéa has invested. Almost all others were submitted to the CRI, the Committee for Research and Innovation at Lab Covéa, where many were eventually integrated.


Home-grown business incubatorCreated in 2015, this original structure can be compared to an internal business incubator for the fast and inexpensive testing of customer oriented solutions related to service. Again, one figure suffices to illustrate the entrepreneurial spirit within the Group: in less than a year, it received 200 applications, either spontaneously or in response to calls related to projects connected to automotive and home. After a selection process, 10% of the projects were effectively integrated by the Lab. “They then enter an entrepreneurial perspective”, explains Christophe de Cacqueray, its Manager. “Seconded for 50% of their time, project managers are placed at the head of a group that brings together the necessary expertise made available to them by our divisions, which act as investors. These small teams can conduct surveys on customer samples to test demo versions, launch real/false advertising campaigns... with one goal: to prove the economic value of their idea. After 9 months, the decision to end or proceed further must be taken.”

Already OnlineThe most advanced project from the Lab, Avis-Auto.fr is already online: one can discover the opinions of MAAF policyholders on many vehicles. This in turn enables Covéa to identify online shoppers with a high probability of purchasing.

“In the Lab, I am one of the project managers of Smart Pilot, a project to develop a smartphone teaching support for young drivers. The Lab’s approach empowers us to think outside the box, to change work habits, to focus on the basics and quickly compare one’s work to the customer vision. This freedom of operation is what drives me.” Philippe Thauvin, Technical Architect at DGTSI

Personally, I am passionate about digital innovations and start-ups. I didn’t think that could have an influence on my career, which I imagined was all mapped out. The Hackathon propelled me to the role of project manager, an adventure that I’m engaged in part-time at the Lab. This extraordinary experience has given me a different vision of the company and my own abilities. André Quimfumu, Covéa AIS, MAAF Home Claims Manager

I support projects in development and I also lead some myself. This is the case with Avis-Auto, which has the distinction of having gone back and forth between the Lab and the Hackathon. This has been a tremendous accelerator, thanks to the energy of the four developers on the team. The site was ready to be brought online in just a few weeks. Philippe Lebeaupin, Facilitator at Lab Covéa

”

Covéa staff testimonies



The start-upsIn parallel to its internal scheme for innovation, Covéa applies itself to feed its entire ecosystem by engaging with promising start-ups through 3 complementary tools:

• Covéa Next is a specialised subsidiary that invests directly in them. In 2015, it took a stake in “CBien”, which is developing an online platform to manage its moveable property, and in 2014 in “Wezzoo”, which offers a collaborative site for ultra-local weather forecasting.

• Covéa also opened “Habitat Connecté” (-connected home-) a business incubator in partnership with Paris&Co. In 2015, four start-ups were at work on topics ranging from emergency breakdown networks to supporting the elderly in their living environment through interconnected objects.

• Finally, Covéa is the exclusive sponsor of the insurance component of Global Fintech Challenge, an international competition offered to start-ups in finance technologies. A role that allowed it to choose the theme - “How to make policyholders take control of their risk” and to award “Testamento.fr”, winner of the 2016 edition.

“ A fast and inexpensive testing of customer solutions related to service.”

Data Lab, analytical power for allOpened on 2015, Covéa’s Data Lab is accessible to all Group entities wishing to conduct data analysis experiments. Based on a “Big Data” infrastructure, it basically puts high storage capacity and computing power at their disposal. “This tool gives us the means to test new “intelligent” models to revolutionise predictive analytics,” explains Mickaël Dupont, head of actuarial research projects at the Group's Technical Division. These methods enable the exploitation of data sources containing numerous criteria and observations, such as a fleet of connected vehicles. 5 projects were already launched in early 2016, all at a different entity.


COVÉA, AN ACTIVE RECRUITER 2,300 new employees joined Covéa in 2015, mainly commercial, claims managers, corporate risk underwriters and actuaries/statisticians. Experienced profiles in the support functions - accounting, legal, IT... - completed this recruitment drive to cope with the accelerated transformation of the Group linked to that of its environment. The multiplicity of its businesses - over 250 - and sites promise its employees a wide variety of career paths, facilitated by the building of bridges between the brands, now armed with a single Human Resources Department. In 2015, it pursued an ambitious strategy to accompany internal staff transfers.

On the trail of the greatest schoolsTo attract future talent, it is best to start at the source... Covéa highlights its visibility by recruiting students, at the brand level, through numerous traineeships and study contracts. To meet these students, the Group, in its own colours, attends forums and fairs at around ten schools, such as Audencia, HEC, Sciences Po Paris or the actuarial institute EURIA... A good means of capturing a wide range of profiles, at a stage when students are at the very beginning of their career search and have not yet narrowed down their fields of interest. Especially as the placements offered cover both traditional areas of insurance as well as support functions: marketing, technical, communications, finance...

Towards a common compensation package The recognition of a Covéa Economic and Social Unit, effective since 1st January 2016, came with the necessary pre-condition to create a common compensation package. The ESU groups 28 companies of the Covéa group and represents approx. 19,000 employees. Discussions on the new scheme, which will be conducted throughout 2016, have the goal of identifying solutions that are equitable to all employees of the ESU, while also being economically viable and attractive for the recruitment of new talent.

The range of topics being reviewed with the employees representatives: working hours, fixed remuneration elements, incentives and profit sharing, annual minimum salary, health and protection, retirement, classification, workforce and competency planning and development.

The future common scheme will be a new founding act for Covéa.

At 31/12/2015

1,200job offers posted on Covéa’s employment exchange

2,300recruited by permanent and temporary contracts

480trainees

330 apprenticeship contracts recruited

Over 26,000employees, including

over 21,000 in France

“ Forums at the majors schools allow us to meet students ahead of their career search and give us the opportunity to capture a wider range of profiles than we would in response to a specific job offer from us.Marthe Rouget, Recruitment Manager

”



David Poutier GIS SpecialistHis studies combined the two skills he uses today: geology and computer science. Logically, he started his career with a publisher of mapping software supplying, in particular... the Covéa P&C Analytics Centre. Last July he decided to re-join them to participate in the practical implementation of the tools he designed 15 years ago. As part of a team that includes meteorologists and statisticians, he meets the Group’s forecasting needs by performing ever more precise spatial risk analyses. These are as useful for assessing portfolio security, by brand and sector, as allowing policyholders to understand and mitigate their own risks. He is currently working on the creation of synthetic indicators to accompany members when purchasing new property. One way to strengthen ties during this crucial time in the relationship...

Myriam Ahdjoudj Social Media ManagerA profession so new but already indispensable... Recruited in June 2015, Myriam Ahdjoudj is the Group’s first social media manager. She uses powerful analytical tools to monitor e-reputation, following all that is said about Covéa and its brands on the internet and social networks: Facebook, Twitter, Instagram... If a controversy starts to grow, she alerts the External Communication Department and the community managers to organise the response. During the October floods in the South, the information collected and analysed helped the Group to formulate the appropriate response to the distress of policyholders. Since then, she has participated systematically in the development of emergency plans for crisis situations. She also builds up contacts with colleagues so as to exchange and share best practice procedures. She has also set up a personalised coaching programme to train and support managers on social network issues.

“ The explosion in data volume is drawing in the expertise of GIS specialists and statisticians. 80% of these data are geo-localisable and are only exploitable by everybody if placed on a map. It’s therefore up to us to be inventive, to continually produce innovations that better meet the needs of our business and our customers. ”

“I am part of the connected generation, both in my private sphere as well as in my professional life. My watchword is curiosity, because the networks are constantly on the boil and you can never know if a little, far removed novelty in the insurance universe today will not be inescapable to us tomorrow. ”


GREATERSTRENGTH


GREATERSTRENGTH


In a difficult context, the Division for Investments and Risk Control, Covéa Finance and Covéa Immobilier, the bodies in charge of managing the Group's assets, have maintained their level of performance. Their strength? Their ability to build relevant scenarios... and stick to them to optimize over 101 billion euros* in asset management .

THE POSITIVE SCENARIO AT COVÉA FINANCE In 2015, the Group’s f inancial management model once again proved its relevance. Covéa Finance, which manages the listed securities, faced a difficult environment where the dangers announced in 2014 were confirmed without the prospects of improvement being realised. Among the most important are the continuing slowdown of growth in China, the deepening crisis in Brazil, the fall in the prices of oil and commodities, early faltering of the US recovery and geopolitical tensions brought to the heart of Europe by the migrants crisis... The financial strength and solidity of Covéa assets, made up in large part of bonds, allowed it to acquire between 2009 and 2014, against the market and without excessive risk, low value shares and then redeeming them in 2014 and 2015, thus generating very significant gains.

This arbitrage illustrates once again the ability of its teams - notably in research - to create the best scenario and to stick to it, with the support of a largely collegial organisation.

A PROPERTY PORTFOLIO OF QUALITYA recognised player in real estate investment, particularly in the Paris region, Covéa Immobilier is responsible for the management of Covéa investment properties and for exploiting the sites occupied by the Group.

Boosted by low interest rates, the housing market is currently considered as a refuge for investors looking for performance. Transactions therefore continued at a strong pace in 2015.

The experts at Covéa Immobilier remain very cautious, given the disconnect that persists between sales prices and rental rates. For 15 years, rents in central Paris have not even kept up with inflation. Covéa Immobilier therefore took the opportunity to dispose of certain assets, whose sale value had become very attractive.

Retaining its best assets, Covéa Immobilier made two acquisitions: • a building of 9,000 m2 in the 4th district of Paris • a second under construction in the Paris area of Batignolles, near the future

“Tribunal de Grande Instance” – the new civil court.

billion euros in assets under management

Over 90French asset management company

funds in management

billion euros of assets in equities

10th 55 14.8

FINANCE AT THE SERVICE OF INSURANCE Overall, substantial financial products boosted by significant gains enable the setting of attractive rates on life insurance contracts, to supply the reserves of the life insurance companies and to maintain its contribution to Group profits.

strengthTransforming itself for greater

EXPERIENCE AND VIGILANCE: THE KEY TO INVESTMENT

* In realizable value


Property Investments at 31 December 2015

Investment assets

4.4billion euros, mainly located in Paris and the Paris region.

consisting of

229properties

654,000 m2 including 60% office and commercial, 40% homes.

Operating properties at 31 December 2015

Operating property assets

561 million euros

consisting of:

1,055 sites (central, regional and commercial agencies)

Over 561,000 m2 gross floor space

SIMPLIFIED GOVERNANCE OF FINANCE WITHIN COVÉAFor Covéa, 2015 was the year of the Group's reorganisation towards the single enterprise concept.

Having prepared for this step, the Division for Investment and Risk Control accompanied this migration, with the establishment of a unified financial management, rather than separate departments for the 3 brands.

The Division for Investments and Risk Control now oversees three departments: the Risk Control Department, which monitors and continuously scrutinises the Group's solvency margin in accordance with Solvency II requirements; The Department for Share interests, Liquid Assets and the Asset Control, which in particular oversees the proper treasury management of the brands, divestitures and acquisitions, and the compliance of financial operations; the Department for Investment and Assets-Liabilities Control, which develops and monitors the Group's investment programmes and, as such, is in direct contact with Covéa Finance and Covéa Immobilier. Both flexible and rigorous, this organisation enables Covéa to combine performance with security.

Solvency ratio

in 2015

in 2014

455% (S1)

382% (S2)

Turnover

in 2015

in 2014

17,252million euros

16,396*million euros

Equity capital (portion of the Group)

in 2014

in 2015

961million euros

1,049 million euros

eNet result

(across the Group)

in 2014

11,630million euros

in 2015

12,703million euros

Consolidated accounts, the basics

A +, rising to a strong outlookConsidering that Covéa maintains its leading position in non-life insurance in France, and that the Group has successfully adapted to regulatory and market changes, at year’s end Standard & Poor's saw fit to raise its rating for the Group from A to A+.

*Proforma

**459 % in S1

**


consolidated balance sheet 2015

ASSETS (in thousands of euros) Gross amount Amortisation and provisions Net amount 2015 Net amount 2014

Goodwill 981,739 -848,954 132,785 164,212Intangible assets 480,488 -214,140 266,348 290,970- Insurance business portfolio value 152,277 -97,685 54,592 69,222- Other 328,211 -116,455 211,756 221,748Insurance company investments 84,097,242 -893,047 83,204,195 79,138,426- Land and buildings 3,554,379 -634,421 2,919,958 2,920,941- Investments in tied companies and businesses

in which Covéa has a stake 1,546,559 -170,342 1,376,217 1,523,121

- Other investments 78,996,304 -88,284 78,908,020 74,694,364Investments for unit-linked accounts 4,254,799 4,254,799 3,572,421Investments in other companies 409,336 -100,965 308,371 579,581Equity affiliates 327,665 327,665 329,779Underwriting reserves held by reinsurers and retrocessionnaires 2,131,230 2,131,230 2,139,836

Insurance and reinsurance receivables 3,503,102 -128,272 3,374,830 2,400,959Customer receivables from banking companies 1,882,758 1,882,758 1,167,783Other receivables 1,250,169 -30,272 1,219,897 1,130,004Other assets 693,646 -417,245 276,401 235,104Accrual accounts - Assets 3,032,004 3,032,004 3,029,330- Deferred sales charges 827,848 827,848 744,698- Deffered tax assets 1,070,828 1,070,828 1,171,278- Other 1,133,328 1,133,328 1,113,354Translation gains or lossesTOTAL ASSETS 103,044,178 -2,632,895 100,411,283 94,178,405

LIABILITIES (in thousands of euros) 2015 2014

Group capital 12,703,344 11,629,744- Mutual capital or equivalent funds 1,113,276 1,108,652- Premiums 6,358 6,358- Reserves 10,534,430 9,554,181- Net income 1,049,280 960,553Minority interests 59,825 68,607Subordinated debt 185,919 185,958Gross underwriting reserves 78,147,622 74,548,747- Life insurance underwriting reserves 53,833,624 51,225,836- Non-life insurance underwriting reserves 24,313,998 23,322,911Underwriting reserves for unit-linked contracts 4,285,223 3,597,525Provisions for liabilities and charges 555,483 626,531Insurance and reinsurance liabilities 1,138,961 916,609Bonds and negotiable debt instrumentsDebts with banking companies 485,811 523,343Other payables 1,714,997 1,734,978Accrual accounts 1,134,098 346,363Translation gains or lossesTOTAL LIABILITIES 100,411,283 94,178,405


(in thousands of euros) 2015 2014COMMITMENTS RECEIVEDInsurance companies 38,780 39,227Other companies 228,402 91,236COMMITMENTS GRANTEDInsurance companies 599,863 368,321Other companies 37,121 54,236PLEDGES RECEIVED FROM REINSURERS AND RETROCESSIONNAIRES 1,339,496 1,186,331OUTSTANDINGS ON LONG-TERM FINANCIAL INSTRUMENTS 0 400,000

commitments received and granted 2015

consolidated profit and loss account 2015 ALL BUSINESS LINES

(in thousands of euros)Non-life

insurance business

Life insurance business

Other business Total 2015 Total 2014

Premiums issued 11,573,394 5,744,483 17,317,877 16,624,599Change in unearned premiums -65,619 -65,619 -88,936Premiums earned 11,507,775 5,744,483 17,252,258 16,535,663Gross premium or income from other activities 368,326 368,326 374,897Other operating income 52,180 34,871 5,302 92,353 108,201Financial income net of expense 1,146,376 2,558,840 69,669 3,774,885 3,864,320Total operating income 12,706,331 8,338,194 443,297 21,487,822 20,883,081Expenses from insurance services -8,168,494 -7,692,989 -15,861,483 -15,476,888Reinsurance expense or income net of disposals -312,306 -22,896 -335,202 -216,034Expenses from other activities -474,370 -474,370 -505,920Management expenses -2,819,518 -358,665 -3,178,183 -3,037,972Total operating expenses -11,300,318 -8,074,550 -474,370 -19,849,238 -19,236,814CURRENT OPERATING INCOME 1,406,013 263,644 -31,073 1,638,584 1,646,267Intersectoral transfers -128,843 1,912 126,931 0 0Current economic operating income 1,277,170 265,556 95,858 1,638,584 1,646,267Other net income -7,881 -70,955Extraordinary profit or loss -49,280 -33,039Income tax -550,121 -554,958NET PROFIT OF CONSOLIDATED COMPANIES 1,031,302 987,315Group share in net profit or loss of disposed companiesGroup share in profit of equity affiliates 56,956 18,512Provision for depreciation of goodwill -27,760 -33,540CONSOLIDATED NET PROFIT OR LOSS 1,060,498 972,287Minority interests -11,218 -11,734NET INCOME (Group share) 1,049,280 960,553


v

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Photo credits: LaCompany/Pascal Dolémieux, LNB/Christophe Boulze, Alex Giraud, Photo Library Covéa, Benjamin Chelly, 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 when reporting operations took place at the Sébastien Hermet MMA office in Saint-Germain-en-Laye, at MAAF office in Levallois-Perret, at GMF office in Paris-Nation and as well as at central headquarters of Covéa Paris-Tivoli.

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