Investor

Solvency

The Group has strong own funds of more of € 13 billion to support its activities in the service of its policyholders. Those own funds are compounded of quality elements, almost all of Tier 1.

Financial solidity of SGAM AG2R LA MONDIALE

  • results from the strength of each of its affiliates, reinforced by the links of financial solidarity and the diversification of risks between them;
  • is confirmed by Standards and Poor's rating 'A- outlook positive' ; and
  • gives the ability to provide the security expected by its policyholders and partners, to access debt markets, and to develop mutual certificates, thus strengthening the link between the Group and its policyholders.

The Solvency 2 ratio of SGAM AG2R LA MONDIALE as of HY2020 is 198%

 

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The solvency ratio decreased by 23 pts between FY2019 and HY2020 mainly due to:

  • -30 pts: financial market environment, especially drop of interest rate by -27 bps (the yield curve is in negative territory over the first 12 years) and CAC40 drop of -17% compared to December 2019
  •  +7 pts: €500m issuance of Tier 2 Bullet in June 2020

Thus, the amount of the transitional measure on technical provision is €2.6bn and represents 42 pts of SGAM ratio. The measure has been agreed by the supervisor until 2032

The issuer La Mondiale (solo) S2 ratio is at 237%

Thanks to the equity hedging, the equity market sensitivity was at FY2019 quite low at -4 pts in case of a drop by -20%. Under market conditions at the publication date and taking into account equity hedging, this sensitivity would be zero.

Performance in line with our financial strategy

AG2R-LA-MONDIALE-Solvency2-2020.png

 

Eligible own funds of €12.1 billions and almost all of very good quality (Tier 1)


Solvency Capital Requirement, or SCR, at €6.1 billions


The SCR is composed for 67% of the SCR market, directly related to the weight of savings and retirement activities and the risk profile of Sgam. The various management actions such as the control of the collect in euros, the underwriting policy on all the Group's businesses (Savings, Retirement, Pension, Health) and the adjustment of the profit-sharing policy to the low interest rate environment are used to master the level of SCR.

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