net profit up 8.4% in H1, driven by acquisitions in Italy

CNP Assurances recorded net profit up 8.4% year on year in the first half, at 748 million euros, driven by the acquisition of certain Aviva life insurance activities in Italy, according to published figures Wednesday by the group, which became a 100% subsidiary of La Banque Postale in early June.

At constant scope and exchange rates, net profit increased by 4.6%, while turnover increased by 22.4% in the first half, to 19.9 billion euros (+2.2% at scope and constant exchange rates).

Results boosted by acquisitions

These “very good results“, according to Stéphane Dedeyan, CEO of CNP Assurances, who spoke during a press briefing, could even have been better without the provision for profit sharing, of 292 million euros net. This provision represents a setting aside of the profits of the life insurance contracts carried out, in order to distribute them later to smooth the returns. “We will see at the end of the year what we will do with it.said Thomas Béhar, Deputy CEO of CNP Assurances. The rise in rates could indeed push the group to use its reserves, “significantly above the market averageaccording to Stéphane Dedeyan, to improve the performance of its contracts in euro funds, penalized by the low rates of its last years, the time that the stock of bonds that compose them is renewed.

The results were also boosted by the acquisitions of certain life insurance activities of Aviva in Italy, in 2021, and which concluded on Wednesday with the purchase of the shares that CNP Assurances lacked from Unicredit. “We really changed dimension in Italy“, which has become the second market after France and ahead of Brazil, commented Mr. Béhar. International, whose turnover grew by 70% over one year in the first half (+11.3% at constant scope and exchange rates) made it possible to offset the drop in activity in France over the same period, by 2.6%.

Having become a 100% subsidiary of La Banque Postale at the beginning of June, the group does not intend to stop there and is eyeing in particular Mexico and Colombia. “We are in conquest“, with a “development strategy“, declared Stéphane Dedeyan, specifying however that the group “don’t really want to scatter» and excludes a priori the areas where it is not present, that is to say the United States and Asia.

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