La Mondiale FULL YEAR 2017 EARNINGS APRIL 2018 Ceci est un document exclusivement réservé à l’interne qui ne peut engager la responsabilité d’AG2R LA MONDIALE
Cautionary note Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and La Mondiale’s plan and objectives to differ materially from those expressed or implied in the forward looking statements. Please refer to “La Mondiale Rapport Financier 2017” (*) for a description of certain important factors, risks and uncertainties that may affect La Mondiale’s business and/or results of operations. La Mondiale undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. Unless otherwise specified, financial statements are calculated in accordance with IFRS as adopted by the European Union. SGAM Solvency 2 figures related to FY 2017 are estimated. (*) available at the end of May 2018 2 La Mondiale FY 2017 earnings
Contents 1. Executive summary 2. Group profile & business activity 3. A strong business model 4. Invested assets 5. Solvency & capital management 6. Appendix
Executive summary (SGAM, as of 12/31/2017) Diversified & strong Key player in the business model French Life insurance Robust balance sheet market and strong solvency €361 mn Strong FY2017 net income #2 in Supplementary pension €9,8 bn Controlled decrease of #3 in Health Insurance 224% S2 RATIO SGAM AG2R premiums on Life General #4 in Protection LA MONDIALE Account #10 in Savings +11% compared to FY2016 37%/63% Premium UL ** / GA * mix 277% S2 RATIO LA above the market Rated A- / stable 28%/72% MONDIALE (solo) – debt issuer 32%/68% Liabilities UL ** / GA * mix Confirmed by Standard & +21% compared to FY2016 above the market Poor’s in October 2017 21%/79% €6,1 bn IFRS Equity capital (part of group) 2017 Product mix +€0,5bn compared to FY16 (premiums) +86% on 5 years Sound asset allocation & risk management €2,7 bn Total amount of subordinated debts Protection 4,33% High level of policyholder & Health surplus reserve with 2,3€bn €76 mn Issuance of 37% of reserves mutual certificates 63% Less than 20% of investments rated (unrestricted Tier 1) Savings & BBB+ or below (lower than the market) Pensions 4 La Mondiale FY 2017 earnings SGAM : french prudential insurance group (*) : General Account are high capital need products, (**) : Unit Linked are low capital need products
Highlights AG2R LA MONDIALE and MATMUT La Mondiale has announced on November 28th to enter successively issued two into exclusive negotiation to study the subordinated debts in USD opportunity to build a new group Issuance of two redeemable subordinated notes Rationale of the operation : 30NC10 : - Larger and comprehensive group on the French - Private issue of $400 million on December 19, 2017, market completed in Asia - Diversification effects - Public issue of $310 million on January 12, 2018, - Cross-selling on existing customers subscribed mainly by European investors Organizational project : Umbrella SGAM SGAM SGAPS AG2R LA LA MONDIALE Creation of a dedicated MONDIALE MATMUT property company LA MONDIALE MATMUT and - Called AGLM IMMO other entities and its subsidaries - Aims to consolidate the real estate investments of the members of the Sgam - Should hold after asset transfers more than €4.5bn To be approved by the General Meetings of May / of assets June 2018, and in case effective on January 1, 2019 5 La Mondiale FY 2017 earnings
Contents 1. Executive summary 2. Group profile & business activity 3. A strong business model 4. Invested assets 5. Solvency & capital management 6. Appendix
AG2R LA MONDIALE organization SGAM and SGAPS are specific group structures for • Combination of mutual or non A Group collecting €29,0bn • mutual and assimilated entities, allowing combination • premium in 2017 capitalistic entities with specific and sharing of resources governance As of January 1 st 2018, SGAPS has also allowed full SGAM with €6.1bn equity • • prudential recognition SGAM AG2R LA MONDIALE LA MONDIALE SGAPS AG2R LA MONDIALE Mandatory Additional Protection and Savings and Pension Health Pensions Full financial Scheme solidarity in proportion of capital surplus 2017 premiums: €19.3bn 2017 premiums: €3.6bn 2017 premiums: €6.2bn AG2R Retraite Agirc AG2R Réunica Prévoyance La Mondiale: €2.1bn AG2R Retraite Arrco ViaSanté Mutuelle La Mondiale Partenaire: €1.6bn � Servicing on behalf Réunica Mutuelle La Mondiale Europartner: €1.7bn of the public pension system Prima Arial CNP assurances: €0.7bn for employees AG.Mut Common sharing of resources and governance 7
AG2R LA MONDIALE financial solidarity SGAM AG2R LA MONDIALE 1 rst level of financial 2 nd level of financial solidarity : between all solidarity : between affiliates into SGAPS SGAPS and La Mondiale 60%* Financial Entity 1 La Mondiale 100% solidarity Entity i Entity 2 (debt issuer) Financial Entity 3 solidarity Entity 4 … 100% Financial solidarity function of solvency ratios Financial solidarity - description SCR ratio 2 levels of financial solidarity : or 125% - The 1rst level between the members of SGAPS MCR ratio The 2 nd level between SGAPS and La Mondiale - Target 115% The financial solidarity process is the same in the 1 rst and the 2 nd level : Trigger 110% if an entity solvency ratio (SCR or MCR) falls below 110%, other entities will provide extra capital in order to restore 115% solvency ratio, in Financial proportion of their capital surplus and within the limits of their own solidarity in proportion of solvency. capital surplus 8 La Mondiale FY 2017 earnings * consolidated through use of the equity method as of 1 st of April 2016
Business activity (La Mondiale) Premiums (in € mn) Premiums : -6,1% compared to FY 2016, due to : � Controlled decrease GA exposure and focus on UL 6 790 6 611 6 205 Total � Savings : -21,5% voluntary decrease in General Account Savings � Pension : +29,2% mainly due to exceptional events on Pension Group Supplementary Pension with no impact on the net Others inflows 4 753 4 497 3 529 Lapse : Slight increase of the insurance claims ratio (in line with the French market), after two years at historical low 2 532 1 960 1 855 Net inflows : Controlled GA net inflows in a low interest 154 182 144 rate environment (-60% on total net inflows compared to FY2016) FY 2015 FY 2016 FY 2017 G/A 71% 71% 63% UL 29% 29% 37% Net inflows (including arbitrages, in € mn) Insurance lapse ratio 1 285 1 161 986 Unit Linked 6,8% 1 163 6,2% 5,9% 1 038 -98 General Account FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 9 La Mondiale FY 2017 earnings * France (Source : Fédération Française de l’Assurance)
Core businesses’ financial structure (La Mondiale) Outstanding liabilities Liabilities : global growth by +5% €79,8bn � General account : +2%, compared to less than 1% for the French market * Unit Linked � Unit linked : +11%, compared to 10% for the 32% French market * €25.2bn In 2017 UL liabilities represent 32% of total liabilities (compared to 21% for the market*) New Business (APE) : decline by -10% compared to General FY2016, but limited to -3% taking into account account exceptional elements in group pension 68% €54.6bn Liabilities by products New business breakdown (APE) €79,8bn €444mn Protection Retail Savings 1% Protection 2% 1% Retail Savings Individual Individual 6% Pension Pension 21% 14% Private Wealth Group Pension Group Pension Private Wealth 10% Management 24% Management 66% 55% 10 La Mondiale FY 2017 earnings * Source : Fédération Française de l’Assurance
Contents 1. Executive summary 2. Group profile & business activity 3. A strong business model 4. Invested assets 5. Solvency & capital management 6. Appendix
A strong financial performance (LA MONDIALE) Consolidated net results (in €mn) Group equity capital (in €mn) 2017 net result : €308mn +10% compared to FY2016 x3 compared to 10 years ago 350 + €355mn 300 4 000 -13 250 +57 +3 +308 3 500 200 150 3 000 3 863 3 508 100 2 500 50 2 000 0 2016 FY 2017 Fair value Mutual Other 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 net income adjustment certificates impacts Return on equity Consolidated Policyholder Surplus Reserves Increase of policyholder surplus 4,33% 25,0% reserve by €520 mn 19,4% 3,36% 3,09% 20,0% 13,9% 15,0% 11,1% 1,75% 1,76% 2,26 9,0% 9,3% 1,58% 8,4% 1,74 8,1% 1,20% 8,8% 1,54 12,2% 10,0% 0,95% 0,58% 0,73% 4,7% 0,83 0,71 0,68 5,0% 0,43 0,17 0,23 0,36 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0,0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 in % of insurance liabilities Profit-sharing reserve (€bn) 12 La Mondiale FY 2017 earnings
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