2013 Half Year Figures Cautionary note At half-year, La Mondiale - - PDF document

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2013 half year figures cautionary note
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2013 Half Year Figures Cautionary note At half-year, La Mondiale - - PDF document

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October 2013 2013 Half Year Figures Cautionary note At half-year, La Mondiale does not produce full financial statements but only prepares a balance sheet and an income statement. Auditors are not required and do not issue any audit or limited

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2013 Half Year Figures

October 2013

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At half-year, La Mondiale does not produce full financial statements but only prepares a balance sheet and an income statement. Auditors are not required and do not issue any audit or limited review report on these financial figures. They have been presented and reviewed by La Mondiale Board of Directors on September 25, 2013

Cautionary note

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La Mondiale – Company overview

  • Founded in 1905
  • French Mutual Life Insurance Company
  • Leading positions on High Networth Savings, Group and Self

Employed Retirement Plans

  • Multi channel distribution networks
  • Long story of sustained growth
  • In the capital market since 1989
  • Strong risk management and well diversified asset allocation

GROUP STRUCTURE SGAM AG2R LA MONDIALE

La Mondiale Participations

La Mondiale

Arial assurance La Mondiale Partenaire La Mondiale Europartner

50% 100% 100% 50% 65% 35%

AG2R Prévoyance Isica Prévoyance INPCA Prima AG.Mut Prado Epargne

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KEY HIGHLIGHTS

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La Mondiale – HY 2013 Key Figures (1/ 2)

(1) Financing debt / total equity

I n EUR m io HY20 1 2 FY2 01 2 HY2 01 3 HY13 / HY1 2 Prem ium s 3 ,2 41 6 ,2 34 3,36 3 + 3 .8 % Net I ncom e 1 45 3 10 10 8

  • 25 .9 %

Equity 2 ,4 39 2 ,7 26 2,77 0 + 13 .5 % Gearing Ratio ( 1) 1 8.0% 16 .6 % 3 1 .7 % + 13 .7 pts Technical Provisions 5 2,13 3 55 ,6 4 2 5 7 ,8 47 + 11 .0 % Total Balance Sheet 6 2,44 4 67 ,0 1 3 6 9 ,8 03 + 11 .8 % Solvency I ratio 2 12 % 24 6% 2 46 % + 34 pts Num ber of em ployees 2 ,7 72 2 ,8 11 2,79 4 + 0 .8 %

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in €mio

400 800 1 200 1 600 2 000 2 400 2 800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 201 1 201 2HY201 3

French GAAP IFRS

Equity Solvency I Margin Technical Reserves and Premiums Net Results

in €mio 50 100 150 200 250 300 350

2001 2002 2003 2004 2005 2006 2007 2008 2009 201 201 1 201 2 HY201 3

French GAAP IFRS 189% 183% 112% 175% 156% 136% 246% 246% 106% 110% 112% 114% 116% 125% 130% 138%

0% 50% 100% 150% 200% 250% 300% 2006 2007 2008 2009 2010 2011 2012 HY2013 Regulatory Solvency Margin Core Solvency Margin

in €bn

10 20 30 40 50 60 70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 201 1 201 2HY201 3

2 000 4 000 6 000 8 000 10 000

in €mio

Technical Reserves (left) Premiums (IFRS since 2004) (right)

A Resilient Business Model & Capitalisation

La Mondiale – HY 2013 Key Figures (2/ 2)

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BUSINESS ACTIVITY

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466 1,046 973 339 395 487 1,385 1,368 HY 2012 FY 2012 HY 2013 UL €

2,072 4,020 2,411 1,062 1,985 836 3,240 6,234 3,364 HY 2012 FY 2012 HY 2013 Protection Pension Savings

HY 2013 – Revenues, Claims, Net inflows

€ 85% UL 15% € 85% UL 15% € 78% UL 22%

Revenues (in €mio) Net inflows (in €mio) Insurance claims

  • Revenues: further development. UL/ € mix is

improving and is still above market mix.

  • Claim s : back to normal, in line with the market
  • Net inflow s : level of full year 2012 reached in 6

months in 2013. UL/ € mix at 29% .

6.9% 8.7% 10.5%

HY 2012 FY 2012 HY 2013

€ 96% UL 4% € 76% UL 24% € 71% UL 29%

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HY 2013 – Liabilities

Liabilities by Products Outstanding Liabilities

Guaranteed C o ntracts 74% Unit Linked 26% Group Pension 26% Private Wealth M anagement 53% Protection 3% Individual Pension 1 1 % Retail Savings 7%

Total technical provisions

€ 57.8bn

+4.0% vs FY 2012

(74% ) (26% ) (25% ) (54% ) Figures (x% ) in FY 2012 (7% ) (11% ) (3% )

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EARNINGS, PROFITABILITY AND SOLVENCY

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HY 2013 – Earnings and profitability

Return on Equity Cumulated Net Results (in €mio, IFRS)

2011 2010 2009 2008 2007 2006 2012

111 123 68 172 335 227 310 108 300 600 900 1200 1500

HY2013

Policyholder surplus reserves (in €mio, IFRS)

20% 19% 17% 15% 10% 9% 8% 10% 12% 15% 9% 13% 10% 8% 11% 14% 19% 12% 5% 9% 0% 5% 10% 15% 20% 25% 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 2 1 2 H Y 2 1 3 French GAAP IFRS

  • Net income at €mio 108 in six months after an

increase of policyholder surplus reserve by €mio 33

  • €mio 1,454 accumulated earnings since 2006

291 161 233 430 370 726 759

1.20% 1.13% 0.73% 1.80% 1.82% 0.99% 0.56% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 HY 2013 Profit-sharing reserve in % of insurance liabilities

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HY 2013 – Equity

(in €mio, IFRS)

294 304 2,432 2,466

  • 10
  • 54

+108 2,726 2,770 2012 HY 2013 net income Fair value adjustment Other impacts HY 2013

  • Fair value adjustment of €mio -54 mostly driven by the growth of long-term interest rates

(2.32% vs 1.98% at the end of 2012 for OAT 10 years)

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106% 110% 112% 114% 116% 125% 130% 138% 126% 156% 120% 2006 2007 2008 2009 2010 2011 2012 HY2013 Core Solvency 1 Margin Solvency 2 Margin

  • Over the past years, La Mondiale has funded its

business developm ent thanks to internal capital generation, strong cost control and im provem ent

  • f operational profitability
  • Core solvency m argin has increased by 32 points

since 2006 and has alw ays been com fortably above the m inim um regulatory requirem ents

  • Throughout the crisis, La Mondiale has demonstrated

the resilience of its business m odel Core Solvency Margin HY2 0 1 3 Regulatory Solvency 1 Margin

  • Core S1 m argin has continued to im prove in

2 0 1 3 , including the growth of eligible subordinated debt (€mio 819 vs €mio 693 at the end of 2012)

  • Other Subordinated debt represents €mio 301 vs

0 at the end of 2012 (cf. p14). This debt will be eligible following the growth of the Solvency Capital Requirement.

(1 ) Excluding Unrealized gains (2 ) SCR Solvency 2 margin. Unaudited data based on current

  • assumptions. These assumptions may change in the future

HY 2013 – Solvency margin

1,804 819 2,046 1,899 828 301

Solvency Capital Requirement Eligible elements

Other Subordinated Debt * Other unrealized gains * Eligible unrealized gains Eligible Subordinated Debt Own funds

246% 138% 305% * Other Subordinated Debt and Other unrealized gains temporary above regulatory ceiling

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Subordinated debt restructuring

91 150 400 10 28 15 91 150 51

459 332

28 10

€ 693 mio in 2012 € 1,121 mio HY 2013

+ 427 M€

TSSDI : unchanged January 2013 15M€ redeemed 15 of April 2013 Tender and Exchange offer on Undated Subordinated Notes (TSDI) EUR 17 mio redeemed Exchange of € 332 mio TSDI for dated Subordinated Notes (TSR) TSDI unchanged 15 of April 2013 Issuance of USD 600 mio (EUR 459 mio) Undated Subordinated Notes

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INVESTED ASSETS

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16 0% 20% 40% 60% 80% 100% 2 6 2 7 2 8 2 9 2 1 2 1 1 2 1 2 H Y 2 1 3

Property Equity Bonds

A Diversified Asset Allocation

Historical Asset Allocation ( net book values)

* Including rate OPCVMs

0bn 5bn 10bn 15bn 20bn 25bn 30bn 35bn 40bn 45bn 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 2 1 2 H Y 2 1 3

Property Equity Bonds

Asset Allocation

  • excl. Unit-

Linked % ( as of HY 2 0 1 3 ) I FRS ( in € m io) ( as of HY 2 0 1 3 ) I FRS ( in € m io) ( end of 2 0 1 2 )

Property 5.7% 2,820 2,836 Equity 7.4% 3,645 3,145 Bonds* 85.4% 41,931 41,066 Others 1.4% 674 149 Total 100% 49,071 47,196

  • La Mondiale’s sound asset allocation is key and enabled La

Mondiale to perfectly accom m odate the recent tw o crisis ( 2 0 0 8 and 2 0 1 1 ) w ithout a significant P&L or solvency im pact

  • Assets under m anagem ent have grow n significantly over

the last decade at an average annual growth rate of 16% since 2002

  • La Mondiale kept a de-risking and diversified asset

allocation over the years

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Sovereign 24% Covered bonds 16% Senior Financials 17% Sub Financials 9% Other corporates 20% Securitiz. 0% Guaranteed government bonds 3% Supra / Agencies 11% AAA 20% AA+ 25% AA 6% AA- 4% A+ 9% A 10% A- 9% BBB+ 9% Others 8%

Bonds - A Low Risk Asset Allocation

Credit Exposure by Credit Rating** Credit Exposure by Issuer Type Portfolio by Maturity Band

* Excluding rate OPCVMs * * Second best rating methodology consists of using the second best rating awarded to an issue by the three leading agencies, S&P, Moody's and Fitch

  • Total Bond exposure is at 4 1 bn as of 30/ 06/ 2013 *
  • With a strategy based on lim ited exposure to risky

investm ents as less than 1 7 % of the investm ents are currently rated BBB+ or below

  • Credit Lim its decrease rapidly w ith the rating and

investments in subordinated debts are even more scrutinized

  • An estim ated 1 2 -year liabilities duration is a key

strategic element of our asset management policy and therefore of asset allocations

0% 5% 10% 15% 20% 25% 30% < 1 year > 1 year to 3 years > 3 years to 5 years > 5 years to 7 years > 7 years to 10 years > 10 years to 30 years

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Greece 0% Spain 47% Italy 23% Ireland 18% Portugal 12% France 68% Others 2% Austria 5% Belgium 7% Peripheral 18%

Sovereign Bonds Exposure (EUR 9.6bn)

  • Sovereign bonds exposure represents 2 3 % of the total

assets

  • Peripheral countries exposure is 18% of this sovereign bucket,

hence only 4 .4 % of the total investm ents – This is low er than industry average

  • There is no Greek sovereign debt exposure
  • La Mondiale is one of the French insurers least invested on the

peripheral countries

Peripheral Countries Exposure (EUR1.8bn)

Country Net asset exposure in EURm io * France 6,530 Spain 843 Belgium 660 Austria 465 Italy 411 Ireland 321 Portugal 207 Others 197 Greece TOTAL 9 ,6 3 4

* as of 30/ 06/ 2013

Bonds – Sovereign Exposure in 2013

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APPENDIX

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Overview of La Mondiale Balance sheet

€mio Assets 62,444 67,013 69,803 +11.8% Intagible assets 67 64 60

  • 10.3%
  • w. Goodwill

40 41 40 +0.2% Insurance investments 46,347 49,348 51,145 +10.4% Unit Linked investments 13,016 14,573 15,372 +18.1% Others assets 2,411 2,692 3,021 +25.3% Cash and cash equivalent 603 335 205

  • 66.1%

Liabilities 62,444 67,013 69,803 +11.8% Equity Group Share 2,163 2,432 2,466 +14.0% Minority Interests 0,276 0,294 0,304 +10.1% Total Equity 2,439 2,726 2,770 +13.5% Financing debt 439 453 879 +100.4% Insurance and financial liabilities 53,109 58,794 60,250 +13.4% Other liabilities 6,457 5,040 5,904

  • 8.6%

HY2012 * FY2012 %Change HY2013/ HY2012 HY2013 *

* HY 2012 and HY 2013 unaudited

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Overview of La Mondiale P&L Account

€mio Revenue 3,241 6,234 3,363 +3.8% Financial Products 1,236 2,760 1,129

  • 8.7%

Operating Income 218 520 174

  • 20.2%

Consolidated net profit 145 310 108

  • 25.9%
  • .w Group share

133 289 96

  • 28.3%
  • .w Minority Interest

12 20 12 +0.8% HY2012 * FY2012 %Change HY2013/ HY2012 HY2013 *

* HY 2012 and HY 2013 unaudited

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Contact Details

Managem ent André Renaudin Chief Executive Officer Sylvain de Forges Deputy Chief Executive Officer Jean-Louis Charles Chief Investment Officer jean-louis.charles@ag2rlamondiale.fr +33 1 76 60 99 91 David Simon Chief Financial & Risk Officer david.simon@ag2rlamondiale.fr +33 1 76 60 87 41

La Mondiale 104-110, boulevard Haussmann, 75008 Paris - France

I nvestor Relations - Contact: infosfinancieres@ag2 rlam ondiale.fr

http: / / www.ag2rlamondiale.fr