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At a time of economic crisis marked by upheaval in the euro zone, major climate events and a high tax burden, Covéa bolstered its financial soundness, leading to increased credibility for its economic model.
Thanks to a new surge in business at the mutual insurance companies MAAF, MMA and GMF and effective financial management, Covéa again posted earnings in 2010 that consolidate its financial position.
“Covéa produced good sales results and very respectable earnings last year. The dynamism of our three companies, the effectiveness of our cooperation model – which resulted in two new cross-functional units, Covéa Finance and Covéa Immobilier, in 2010 – and our diversification strategy abroad are assets that should enable Covéa to calmly face future challenges, especially the regulations imposed by Solvency II,” said Thierry Derez, Chairman and CEO of Covéa.
Covéa brands win market share
Strong sales momentum at MAAF, MMA and GMF allowed Covéa to win nearly 200,000 new customers and expand its portfolios in all markets.
Some 10.6 million French citizens use the three brands to insure their property, a rise of 1.9%.
The number of risks insured by Covéa has increased twice as fast as the market in motor and comprehensive home insurance.
- 172,000 more vehicles, for a total of 9.7 million motor policies (up 1.8%)
- 136,000 more homes, for a total of 7 million properties covered by comprehensive home insurance (up 2%)
The Group also has:
- nearly 1.8 million individual health insurance customers
- 2 million savings contracts (up 4.1%)
- 3.3 million legal insurance contracts (up 1%)
The Group consolidated its leadership in property and liability insurance, its number three ranking in corporate insurance and its number four position in individual health insurance.
€13.6 billion in earned premiums as well as increased equity
Covéa’s earned premium income rose 4.4% to €13.6 billion.
Gross inflows for life insurance rose 10% to €4.5 billion, far exceeding the market's growth of 4%.
Its net income climbed to €522 million, a satisfactory level given the economic crisis, the climate events of 2010 and a heavier tax burden.
This performance enabled Covéa to boost its equity to €8,384 million (up 7%). Its regulatory solvency ratio of 356% is evidence of the Group’s solid financial position.
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Covéa combined earned premiums (in M€)
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2010
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2009
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Earned premium income
- Non-life
- Life
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13,556
9,080
4,476
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12,988
8,918
4,070
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Net income (Group share)
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522
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245
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Equity (Group share)
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8,384
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7,836
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Regulatory solvency ratio
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356%
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354%
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Covéa: an ever-expanding group
In 2010, Covea continued its efforts to strengthen its three brands' financial position, take full advantage of synergies and optimise their organisation.
Covéa Finance's merger with MMA Finance in May 2010 enabled them to pool skills developed in the asset management market, with the goal of creating value-added for the brands and their members. Covéa Finance is now the sixth largest asset management company in the French insurance market, with more than €71 billion of assets under management.
The Group integrated each insurance company's real estate activities at end-2010, founding Covéa Immobilier in early 2011.
Due to the synergies Covéa created by managing claims (Covéa AIS) and assistance (Fidélia), extraordinary steps were taken to respond more quickly to problems facing policyholders during the severe climate events of 2010 (especially the violent Xynthia windstorm and floods in the Var region of France).
Similarly, in June 2010 in Montbéliard, the Group was able to rapidly set up a mobile platform for repairing vehicles damaged by hail by sharing claim management resources.
The international development strategy consisted of acquiring Provident Insurance in the United Kingdom and the Banca Popolare di Milano insurance company in Italy in the second quarter of 2011. These two acquisitions illustrate the company's growth objectives in mature markets outside France. In 2011, Covéa's earned premium income worldwide will increase by a factor of three.
Press contacts
Françoise Ickowicz Tel.+ 33 (0)1 53 10 65 06
Marie-Pierre Michel Tel.+ 33 (0)1 53 10 63 57
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