“I’m proud to present Groupama's development strategy today. This strategy is based on a consultation process conducted at all group levels. The aim of our strategy is to fortify our leadership in France, by accelerating operational performance and becoming a benchmark international player, especially in high-potential regions in Europe. We will continue to listen to our customers and expand our business lines and activities in a dynamic, balanced way while respecting our Group’s requirements in terms of risk diversification and financial strength, and towards achieving sustainable growth and profitability. I am convinced that thanks to the strong determination of all our staff, the application of existing best practices and the momentum already initiated in recent years, this strategy will allow us to continuously enhance our performance and propel ourselves to the ranks of other European insurance european leaders”.
Jean Azéma, Chief Executive Officer of Groupama
Groupama, a specific economic model... A balanced portfolio: 51% non-life and 49% life and health insurance in 2005 Accountability at each group level: governance system ensuring the strong involvement of Regional Mutuals and an internal reinsurance mechanism that allows risk spreading Leadership positions in France: No. 1 individual health, local authority and agricultural insurer; No. 2 motor, marine and transport insurer; No. 3 SME and property insurer 16th largest insurer in Europe The co-existence of 5 complementary distribution networks provides a strong local presence in France via 4,000 points of sale in all An international presence concentrated on high-potential markets in Europe, boosted by the acquisition of Turkish insurer, Basak, no. 5 in Turkey, and anticipating medium- to long-term opportunities in Asia Banking savings created from scratch in 2003, and still growing: 331,000 customers at the end of 2006
... that creates value A track record of growth in all business in France: + 4.2% of compound annual growth rate from 2001-2005 Very significant increase in profitability with RoE of 14.4% in 2005 versus 6% in 2001, two-fold increase in net profit and combined ratio down by more than 7 points on the same period. A contribution to net profit of 20% from International business in 2005, thanks to a more streamlined network and continuous development over the last 5 years Reinforced Group financial strength and solvency: considerable increase in the stock of unrealised capital gains and a 7-point drop in the debt ratio between 2001 and 2005
Clear strategic focus and ambition Consolidate and expand our positions in France Accelerate (organic and acquisitions) global expansion Achieve greater profitability through enhanced efficiency
=> Combine growth and profitability to increase the Group's value
To rank amongst the top 10 European insurers
Our 2009 goals in figures Premium income: achieve 7% compound annual growth rate Combined ratio: aim at 100% (+/- 2 points) ratio " Operating profit (net profit excluding realized capital gains and losses for the share reverting to the shareholder, exceptional transactions, and impact of unrealised gains and losses on financial assets): X 3 over 2005
A balanced portfolio: 51% non-life and 49% life and health insurance in 2005
