CNP ASSURANCES (EPA:CNP) - Press Release CNP Assurances - Closing with CEF Brazil - 30 12 20

Transparency directive : regulatory news

30/12/2020 20:00

Press release

Paris, 30 December 2020

   CNP Assurances announces the finalisation of its new exclusive long-term
        distribution agreement with Caixa Econômica Federal in Brazil

CNP Assurances announces the finalisation of its new exclusive long-term
distribution agreement, through to 13 February 2046, with the Caixa Econômica
Federal (CEF) network - Brazil's public bank and one of the top five banks in
Latin America.

CNP Assurances announces that the closing operations set out in the agreement
signed with Caixa Econômica Federal and Caixa Seguridade on 29 August 2018
(amended on 19 September 2019), concerning their new exclusive long-term
distribution agreement for personal risk insurance, consumer loan insurance and
retirement products (vida, prestamista, previdência), were finalised today.

CNP Assurances has paid an initial amount of R$7.0 billion under the agreement.
A performance incentive mechanism covering the first five years allows for
additional payments, capped at R$0.8 billion (Group share) in value terms at 31
December 2020. The impact of the operation has been fully integrated in the
Group's SCR coverage ratio since 30 September 2019.

A new insurance joint venture has been created. This entity will be fully
consolidated by the CNP Assurances Group, which will hold 51% of voting rights
and 40% of economic rights, while Caixa Seguridade will hold 49% of voting
rights and 60% of economic rights. Caixa Seguros Holding (CSH) has transferred
the insurance portfolios relating to the products covered by the agreement to
this new jointly owned insurance company.

For the new partnership signed by CNP Assurances and Caixa Seguridade on 13
August 2020 for the distribution of consorcios products in the CEF network, the
parties have agreed to postpone the deadline for finalising this partnership,
initially scheduled for 4 January 2021, to 30 March 2021.

Antoine Lissowski

Chief Executive Officer of CNP Assurances

"CNP Assurances is delighted to have closed this new agreement, which
strengthens the Group's activity in the Caixa Economica Federal (CEF) network
in Brazil, including exclusive access to its 78 million customers, over the
very long term and for a new scope. It draws on the success of the partnership
between CNP Assurances and CEF since 2001 through their joint subsidiary, Caixa
Seguros Holding (CSH), and was the result of outstanding work by its teams, led
by Laurent Jumelle for the past three years."

                                    APPENDIX

       Operating and financial performance of Caixa Seguros Holding

CNP Assurances' share   2008  2019  Q3 2020  CAGR 2008-2019 CAGR 2008-2019
                                                 (in RUSD)     (in EUR)
Premium income
(RUSD bn)                2.2  15.4    11.3         19%            14%
Value of new business*
(RUSD m)                 209   907     680         14%            11%
Net profit
(RUSD m)                 332 1,100   1,214         12%             7%
*The value of new business in Latin America includes a marginal contribution
from Argentina. The value of new business for 2019 and Q3 2020 includes a
reduction in CNP Assurances' share of economic rights on the scope included in
the new distribution agreement (from 51.75% to 40%).

             Breakdown of premium income of Caixa Seguros Holding

100% of premium income of
Caixa Seguros Holding (RUSD bn)

                          2018  2019  Q3 2020      Change
                                                 2018-2019
                                               (%, reported)
Scope of new exclusive
distribution agreement    19.8  25.8    18.9        30%
Products distributed in
the CEF network not
included in the scope
of the new agreement       2.9   3.3     2.5        13%
Products sold by other
distribution channels
besides CEF (brokers,
digital)                   0.8   0.6     0.4       -18%
Total                     23.5  29.7    21.8        26%

                              New economic scope(1)

Q3 2020
(Group share)          Premium income    Value of new business
New economic scope
(across Brazil)              69%                  72%

(1) Taking into account the new scope of the exclusive distribution agreement
and CNP Assurances' reduced economic rights compared to the current situation
and including products distributed by channels other than CEF.

About CNP Assurances

A leading player in the French personal insurance market, CNP Assurances
operates in 19 countries in Europe and Latin America, where it is very active
in Brazil, its second largest market. As an insurance, coinsurance, and
reinsurance provider, CNP Assurances designs innovative personal
risk/protection and savings/retirement solutions. The company has more than 38
million insured in personal risk/protection insurance worldwide and more than
12 million in savings/retirement. In accordance with its business model, its
solutions are distributed by multiple partners and adapt to their physical or
digital distribution method as well as to the needs of customers in each
country.
CNP Assurances has been listed on the Paris Stock Exchange since October 1998.
The Group declared a net income of EUR1,412 million in 2019.

Contacts

Press

Florence de Montmarin  +33 (01) 42 18 86 51
Tamara Bernard         +33 (01) 42 18 86 19
Caroline Ceintrey      +33 (01) 42 18 85 73
servicepresse@cnp.fr

Investors and analysts

Nicolas Legrand        +33 (01) 42 18 65 95
Jean-Yves Icole        +33 (01) 42 18 86 70
Typhaine Lissot        +33 (01) 42 18 83 66
Julien Rouch           +33 (01) 42 18 94 93

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CNP ASSURANCES (EPA:CNP) - Press Release CNP Assurances - Closing with CEF Brazil - 30 12 20

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