CNP Assurances announced Thursday a net profit in the first quarter up 2.7% year on year, to 316 million euros, however reduced by provisions. The group has in fact endowed theprovision for surplus participation“of 172 million euros, “out of caution” and “given the uncertainties that may arise between now and the end of the year“Commented to AFP Thomas Behar, finance director of CNP Assurances. This provision represents a reserve of profits from life insurance contracts made over the year, in order to distribute them later, in the event of a bad patch, which smooths returns.
Turnover amounted to 9.8 billion euros, up 25.3% over one year, boosted by the acquisition of the life insurance activities of the former Aviva Italy. Italy has become CNP Assurances’ second largest market, overtaking Brazil. At constant scope and exchange rates, the increase in turnover was 5.5% and was driven by international activities (+16.5%), with sales in France having fallen by 0.3%. CNP Assurances’ exposure in Russia is limited to 19 million euros, out of a balance sheet of 400 billion. La Banque Postale announced on Monday the launch of a simplified takeover bid for CNP Assurances, of which it held 85%, with the objective of exceeding the 90% threshold by May 31 for withdraw the insurer from the rating, and constitute a large public financial center.