Financial results

Key figures 

Highlights HY2020

Over the first 6 months of the year, the Covid crisis was obviously the main focus, alongside the low interest rate environment which was already a major theme in 2019

Impacts of the Covid crisis: a tremendous shock that can be absorbed by the Group and that will not call into question the LT vision and strategy

• Technical impacts: increase in unpaid premiums and increase in partial unemployment, offset by a decrease in health claims; few surrenders on life insurance contracts
• Financial impacts: lower real estate rental fees and dividends, liquidity well above the comfort zone at any time of the crisis, impairment of property and equity
• Participation to national rescue effort: donation to the insurance industry solidarity fund (€6m) over the 1st semester and contribution to the exceptional tax which will impact the annual accounts (€35m expected)

Management of low rates environment

• Control of net inflows and arbitrage: monitored negative net inflows in euros, good performance of net inflows in Unit Linked, positive arbitrage from General Account to UL
• Management of UL mix: 48% of total premiums, and 31% of total liabilities, above the French market
• Successful opportunistic issuance of a Tier 2 Bullet for €500m, representing 7 points of solvency, in a context of low interest rates
• Equity hedging set up in 2019 and updated in order to gradually lengthen the hedging maturity to end of 2021, to secure the whole equity portfolio

No exposure to most-affected businesses

• Pure Life player with no exposure to business interruption nor Corporate lines
• Steered business model with unique positioning towards high net worth individuals and supplementary pensions
• Large share of Unit Linked in our Balance Sheet as well as in the New Business

Resilient asset allocation despite headwinds

• Very efficient equity hedging program that allowed us to stabilize unrealized gains during the crisis
• Exceptional liquidity (€1.5bn cash) above our reference position
• Slight reweighting towards Corporates without changing our credit investment policy.

 

A stable business development
(premium, Sgam, IFRS, in €bn)

 

Investment stability despite headwinds, as of HY2020: €103.3bn (+0.6%)
(HY2020, IFRS)

 

Controlled decrease of General Account exposure and focus on Unit Linked exposure

 

Executive summmary

 

OUR PUBLISHED FINANCIAL INFORMATION