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 end of 2019 is 221%

AG2R-LA-MONDIALE-Investor-S2.PNG

The solvency ratio increased by 3 pts between FY2018 and FY2019 mainly due to :

-33 pts : financial market environment (especially drop of interest rate by -60bps)
+21 pts : Profit sharing reserve (PSR) decree impact
+10 pts : Equity hedging, purchase of puts
+8 pts : €500m RT1 issuance

Thus, the amount of the transitional measure on technical provision is €2.7bn and represents 44pts of SGAM ratio. The measure has been agreed by the supervisor until 2032.

The issuer La Mondiale (solo) S2 ratio is at 289%.

Thanks to the equity hedging, the equity market sensitivity was at FY2019 quite low at -4pts 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-Investor-Equity-Capital.PNG

 

Eligible own funds of € 13.4 billion and almost all of very good quality (Tier 1)

 

Solvency Capital Requirement, or SCR, at € 6.1 billion

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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