Crédit Agricole Assurances
Transcript of Crédit Agricole Assurances
CRÉDIT AGRICOLE ASSURANCES
September 2021
INVESTOR PRESENTATION
This document has been prepared by Crédit Agricole Assurances S.A. for information purposes only and is available on its website (https://www.ca-assurances.com/Espace-Investisseurs) It is
not to be reproduced by any person, nor to be forwarded or distributed to any person unless so authorised by Crédit Agricole Assurances S.A. Failure to comply with this directive may result in
a violation of the Securities Act of 1933, as amended (the Securities Act), or the applicable laws of other jurisdictions. None of Crédit Agricole Assurances S.A. or its affiliates, advisers, dealers
or representatives takes any responsibility for the use of these materials by any person.
No representation or warranty expressed or implied is made as to the entire information within this document being subjected to a full independent review, and no reliance should be placed on,
the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of Credit Agricole Assurance S.A. or its affiliates, advisers, dealers or representatives,
or any other person, shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its contents or otherwise arising in connection with this
document. This document is for preliminary informational purposes only and is not an offer to sell or the solicitation of an offer to purchase or subscribe for any securities and no part of it shall
form the basis of or be relied upon in connection with any contract or commitment whatsoever.
Without limiting the foregoing, this document does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States nor in any other jurisdiction.
The securities referred to herein have not been, and will not be, registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of,
U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Crédit Agricole Assurances S.A. does not intend to
register any portion of any offering in the United States or to conduct a public offering of securities in the United States.
This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
Forward-Looking Statements
This communication contains forward-looking information and prospective statements about Crédit Agricole Assurances S.A. that are not historical facts. These statements may include
financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and
statements regarding future performance and has been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory
environment (including but not limited to applicable accounting principles and methods and the applicable prudential regulations). Such statements do not represent profit forecasts and
estimates within the meaning of the COMMISSION DELEGATED REGULATION (EU) 2019/980 of 14 March 2019. Forward-looking statements may be identified by the words “believe,”
“expect,” “anticipate,” “target” or similar expressions. Although Crédit Agricole Assurances S.A.’s management believes that the expectations reflected in such forward-looking statements are
reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond
the control of Crédit Agricole Assurances S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include, but are not limited to, those discussed or identified in the section entitled “risk factors” in the preliminary prospectus relating
to the proposed offering of securities described herein. Crédit Agricole Assurances S.A. undertakes no obligation to publicly update its forward-looking statements, whether as a result of new
information, future events, or otherwise.
Disclaimer
Crédit Agricole Assurances September 2021
2
SOMMAIRE
Crédit Agricole Assurances
3
September 2021
SUMMARY
Executive summary
Company overview
A robust business model
Medium Term Plan 2022
Solvency & Capital
Management
Disciplined Risk
Management
Contemplated transaction
Appendices
CAA Contact List
01
02
03
04
05
06
07
08
09
p. 4
p. 6
p. 13
p. 17
p. 21
p. 25
p. 30
p. 33
p. 38
CHAPTER
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1
EXECUTIVE SUMMARY
CAA is considering issuing 10-year bullet subordinated Tier 2 Notes
Proposed transaction rationale and key credit consideration
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Further optimize and extend CAA’s debt maturity profile and diversify the funding base
Take advantage of supportive market conditions to redeem early internal subordinated debt instruments
subscribed by Crédit Agricole S.A.
Improve Crédit Agricole S.A. regulatory and rating agencies’ solvency ratios
Rationale
Key strengths of CAA’s credit profile
Very strong competitive position
Largest insurer in the French market1
Largest bancassurer in Europe market1
Crédit Agricole brand and extensive distribution
network
Strong and recurring profitability
Strong regulatory solvency position
Robust risk management
Increasing diversification of the business profile
A strong credit
profile
On 24th June 2021, S&P affirmed CAA’s main Insurance companies ratings at A / Stable outlook2
CAA, the holding company, is rated A- / Stable outlook by S&P, one notch below, as anon-operating holding company
The proposed transaction is expected to be rated BBB by S&P
S&P applies the standard notching for insurance subordinated debt: 2 notches below the holding companyrating, reflecting the instrument‘s deferral and subordination characteristics
S&PRatings
1 by premium income; 2 Credit Agricole S.A.’s ratings are the following: A+/A-1 with stable outlook by S&P, Aa3/P-1 with stable outlook by Moody's and A+/F1 with negative outlook by Fitch Ratings.
1. EXECUTIVE SUMMARY
CHAPTER
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2
COMPANY OVERVIEW
di82.8%
17.2%
Crédit Agricole Assurances (CAA): key figures
Strong Financial Profile
IFRS Net income Group share at end of June 2021
Solvency II ratio2 at end of June 2021
Life insurance outstandings at end of June 2021
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5,100 employees
10 countries
10,000 bancassurance
distribution branches3
€19.5bnin premium
income1
H1 2021
Savings & Retirement
Death & disability
Creditor
Group insurance
Property & Casualty
€14.0bn
€2.4bn
€3.1bn
243%
€700m
€316bn1 Under IFRS 2 Calculated using the standardised approach without transitional measures other than the grandfathering of subordinated debts3 Crédit Agricole Group’s networks in France and abroad
2. COMPANY OVERVIEW
International
France
Crédit Agricole Assurances: #1 insurer in France
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#1Life insurance
in France3
A leading position in profitable segments
Savings and Retirement Death & disability / Creditor /
Group insurance
Leader in Europe Leader in France
15%market share in Life
Insurance in France4
#1Individual Death & Disability
in France6
21%market share in Individual
Death & Disability in France8
#2Creditor bancassurer
in France7
20%market share in creditor
insurance in France9
#1bancassurer1
7%14
market share
in Car insurance in France13
#1Home, car and health
bancassurer in France12
Property & Casualty10
12%market share
in Home insurance in France13
1 Internal source CAA, premiums at end-20192 Source: L’Argus de l’assurance, December 18th, 2020, premiums at end-20193 Source: L’Argus de l’assurance, May 21st, 2021, premiums at end-20204 Source: Data FFA 2020 – life insurance outstandings – Predica estimations5 Source: Data DREES 2020 – premiums of Individual & Group supplementary retirement savings –
CAA estimations
6 Source: L’Argus de l’assurance, April 2nd, 2021, premiums at end-20207 Source: L’Argus de l’assurance, Septembre 4th, 2020, premiums at end-20198 Source: Data FFA 2019 – premiums of Death, Funerals and Dependence contracts9 Source: Data FFA 2020 – premiums
#1insurer2
10 #5 in France (source: L’Argus de l’assurance, December 18th, 2020, premiums at end-2019)11 Source: L’Argus de l’assurance, May 7th, 2021, number of contracts12 Source: L’Argus de l’assurance, April 23rd, 2021, premiums at end-202013 Source: Data FFA 2020 – number of contracts – Pacifica estimations14 Source : Data FFA 2020 , up pro forma compared to 2020
2. COMPANY OVERVIEW
#1Retirement bancassurer
in France12
10%market share in
Retirement in France5
#1Growth in home and car
insurance in France11
In 35 years, CAA has built from scratch a complete, diversified and international bancassurer Group, fully integrated into the banking system
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Natural extension of
banking network’s
savings business
into life insurance
Development of
alternative life and
non-life networks (Independent Financial Advisors
and heath care professionnals)
Increased ownership
of CA Vita (Italy) to 100%
Creation of Crédit
Agricole Insurance
Poland (Non-life
insurance in Poland)
1986 1990 2004 2008 2011 2012 2014
UAF & La Médicale
de FrancePredica
Life insurance
Pacifica
Property & Casualty
CACI
Creditor Insurance
SpiricaLife insurance
Diversification and
enhanced presence at
top of range and on web
2018
Life insurance partnership
with Credito Valtelinese
S.p.A. (Italy)
2. COMPANY OVERVIEW
2020
CA Insurance
Poland
Development of Creditor
insurance business
managed from Dublin
in 10 countries
Development of
Property &Casualty
business
Abanca
Europ Assistance
France
2017
Launch of the Group life
insurance offering
Launch of the Property &
Casualty commercial
lines
• Creation of CA Zycie, life insurance in Poland
• Creation of Abanca Seguros Generales (Non-life
insurance in Spain) in 50% joint-venture
• Increased ownership of Mudum Seguros (ex GNB
Seguros) to 100% of the share capital (Non-life
insurance in Portugal)
• Acquisition of 50% of Europ Assistance France1
CA ZycieLife insurance
1 Closing of the transaction on 13 January 2021
CA Vita
Crédit Agricole Group: a customer-focused universal banking model
Top 3 in consumer lending in Europe €91.0bn loans managed
1 out of 3 Mid-Caps financed by CAL&F in France #1
#1 European asset
manager€1.729bn AuM
#1 insurance company in France1
#1 bancassurer in Europe2
14.6m P&C insurance contracts3
€316bn AuM (life insurance and
retirement)3
#1 in financing of real estate development4 in France
€128bn assets under management
Leader in payments in France 30% market share
>11bn operations
#1 in fund administration in France€4,198 bn
#1 worldwide arranger in green, social andsustainable bonds, all currencies in volume and market share between 2015 & 2020
#3 worldwide syndicated credits for EMEA
Source : URD 2020. All figures underlying, cost income ratios excl. SRF contributions 1 L’Argus de l’assurance,
December 18th, 2020, 2019 data 2 2019 data 3 at end-2020 4 ACPR study
Large
customersAsset
gathering
Specialised financial services
PAYMENTS
REAL
ESTATE
in private
financing of
renewable
energies in
France
2. COMPANY OVERVIEW
Crédit Agricole Assurances September 2021
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Other specialized
services
outstandingsin custody
Cost/Income ratio: 44.1% RoNE: 22.5%
Cost/Income ratio: 48.8% RoNE: 11.7%
Cost/Income ratio: 62.9% RoNE: 10.7%
Cost/Income ratio: operating expenses / revenues
RoNE: Return On Normative Equity: Net income excl. AT1 coupons / Average allocated Capital (Own Funds allocation rate
9.5% X average RWA)
CAA: an integrated bancassurance model in France and abroad
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86%1 Bancassurance model: distribution of personal insurance,
property & casualty and creditors insurance in CA’s banking
networks
8%1 Group partnerships: internal financial partners together
with complementary channels (internet, independent wealth
management advisors, network dedicated to health
professionals)
6%1 External partnerships: e.g. partnerships with local banks
1 As a percentage of premiums at end-2020
2. COMPANY OVERVIEW
(Italy)(Poland)
CAA: various business models to support the Group international strategy
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DistributorsDistribution modelCountry
Italy
Poland
Luxembourg
Japan
Portugal (CACF)
Customer Focused Universal
Banking Model
Customer Focused Universal
Banking Model
European
Private Banking Hub
Open architecture model in
synergy with Amundi and
CACIB
Bancassurance Model
Group Non-Group
Freedom to provide services
Joint Venture with Abanca
Freedom to provide services
Spain
Germany
and ~20 other
partners
and 3 local
partner banks
and ~30 other
partners
2. COMPANY OVERVIEW
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A ROBUST BUSINESS MODEL
Efficient model, consistent and complementary to banking solutions
The Bancassurance model
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Additional source of sustainable revenue
Enriches the customer relationship and brand image
Protection solutions for retail banking customers
Empowers the role of banking advisor
Simple, transparent and competitive product range
complementary to banking solutions
Enhancement of the customer-focused universal banking model
Key Success Factors
…generating value for customers
1 Based on 6 006 customers that responded to a satisfaction survey on Predica’s main services2 Based on 4,500 individual Pacifica customers surveyed after a car home insurance claim3 Out of 4,500 Pacifica individual customers making a property & casualty claim between 1 Oct. 2019 & 30 Sept. 2020
Brand strength
Distribution and sales power
Combined knowledge of banking
& insurance markets
Multiple contacts and backings’ occasions
Best in class multichannel offers
An industrial production capacity
Strong integration & standardisation of
processes
Claims management decentralization
High quality of service
Full range of all savings and insurance
products supporting global customer
relationship
Satisfaction rate1 (2020)
LIFE INSURANCE
NON-LIFE INSURANCE
Satisfaction rate2 (2020)
Net promoter score3 (2020)
90%
93%
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3. A ROBUST BUSINESS MODEL
Strong and recurring profitability with efficient value creation
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3. A ROBUST BUSINESS MODEL
1 Extracontractual measure in favour of vulnerable persons: 5 M€; Contribution to CA's dedicated fund for the seniors: 4 M€ and Contribution for
supplementary healthcare insurers: 15 M€2 Crédit Agricole Assurances paid Crédit Agricole S.A. a cash balance of €54 million (€49 million net of tax) due to the early repayment of
redeemable subordinated notes in the amount of €1 billion in total. These redemptions followed a new €1 billion issue of perpetual subordinated
bonds in July 2020.
3 Group contribution to Crédit Agricole S.A.’s operating expenses (including an analytical allocation of charges by
Crédit Agricole S.A.) / Group contribution to Crédit Agricole S.A.’s revenues (including an analytical transfer of the
switch guarantee)4 (Claims + operating expenses + commissions) / earned premiums, net of reinsurance; Pacifica scope5 Adjusted. Without adjustments, the ratio was 33.4% at end-20206 Adjusted. Without adjustments, the ratio reached 97.6% at end-2020
Cost / income ratio3 (2020)
Combined ratio4 (2020)
29.8%5
94.9%6
1 4341 230
Net income Groupshare adjusted
Exceptional Covid-19 measures
One-off cashpayment
Net income Groupshare
CAA Net Income - Group Share in 2020(m€)
-49-151
604 590700
June 2019 June 2020 June 2021
CAA Net Income - Group Share adjusted (€m)
1 331
1 518
1 230
1 4691 518
1 434
2018 2019 2020
CAA Net Income - Group Share adjusted (€m)
Net Income - Group Share Net Income - Group Share adjusted
1 2
60 69 75 82
285 304 308 316
2018 2019 2020 June 2021
Euro Unit-Linked
2.2 4.5
-3.9
5.0
5.1
4.9
+ 7.3+ 9.5
+ 1.0
2018 2019 2020
Diversified business mix and strong activity in all strategic business lines
Crédit Agricole Assurances
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3. A ROBUST BUSINESS MODEL
Diversified business mix
Life insurance outstandings (€bn)
42%
30% 12%
16%
Total:
€19.5bn
Savings & retirement: 72%
(+6 pts vs June 2020)
€: +4 pts vs June 2020
UL: +2 pts vs June 2020
Death & disability / Creditor /
Group insurance
(-2 pts vs June 2020)
Property & casualty
(-4 pts vs June 2020)
Increasing diversification of the business profile
-2.7
-0.4
2.6 3.7
( 0.2)
+ 3.3
H1-20 H1-21
Protection - Gross premium income in €bn
Savings & retirement - Net inflows (€bn)
4.2 4.5 4.8
3.7 4.0 4.3
7.8 8.5 9.1
2018 2019 2020
2.8 3.1
2.0 2.4
4.9 5.5
H1-20 H1-21
+42.4%
UL
+9.7%1
+7.0%1 CAGR
235
82
316
June 2021
+4.2% CAGR
1 Growths restated of an accounting methodological correction; excluding the restatement, growth is 7.5% CAGR between
2018 and 2020 and 11.9% H1-21/H1-20.
End of June 2021 premium income
Euro
UL
-1.0 -0.3
1.7 2.0
+ 0.8 + 1.7
Q1-20 Q1-21
Euro Unit-Linked Total
234
78
312
March 2021
Total
Unit-Linked
Euro
4.2 4.5 4.8
3.7 4.0
4.3
7.8 8.5
9.1
2018 2019 2020
Death& Disability / Creditor / Group Insurance
Property & Casualty
September 2021
+13,2% CAGR UL
21%
Share of unit-linked
26%
CHAPTER
September 2021Crédit Agricole Assurances
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4
MEDIUM TERM PLAN 2022
LIFE INSURANCE
Savings: offer relevant savings products in a low interest rate environment as part of a global advisory approach
Support the customers in the diversification of their assets, with a loyal advisory approach…
… while preserving profitability for CAA Group
Retirement: strengthen positions in Individual and Group Retirement Solutions
Take full advantage of the “loi PACTE” to increase the market share in France
Strengthen synergies with AMUNDI for Group Retirement Plans
Death & Disability – Creditor & Group insurance2: adapt the offers and aim for a strong growth
Offer more flexible Creditor Insurance solutions to preserve our leadership
Boost growth on individual D&D insurance: improve product range and increase customer equipment
Continue to grow on Group Health Insurance and Group D&D Insurance
P&C INSURANCE
Increase Regional banks’ and LCL’s customer equipment on all segments
Offer new solutions to farmers to preserve their farms and crops
Reinforce the « Prevention – Insurance – Protection » approach with a prevention plan for all Regional banks
and for all targets4
Strengthen the Group’s leadership on core businesses
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4. MEDIUM TERM PLAN 2022
2022 targets
market share for new retirement
savings1 in France by 202215%
premium income in D&D,
Creditor & Group insurance2
(€5bn by 2022)+35%
AuM (€322bn by 2022)+13%
+31% premium income in P&C
Insurance (€5.5bn by 2022)
+5pp share of unit-linked
contracts in AuM by 2022 (26%
by end-2022)
+2pp customers equipped3
(equipment rate, Regional
banks)
>+5pp customers equipped with
at least one P&C insurance
contract (equipment rate,
Regional banks, LCL)Reference: 2018 figures. 1 Individual & Group retirement 2 Group Health Insurance and Group D&D insurance (retirement excluded) 3 Predica, term life insurance4 Young adults, families, seniors, farmers and employees
EXTEND THE OFFERING FOR HOUSEHOLDS
In-home services: remote surveillance, extended offers for P&C individual risk management and support for
key life events (comfort, accessibility)
Services for new mobilities: specific offerings for individuals and fleet management companies
E-health services for key life moments: health advisory, remote medical consultation, support for easier
treatment process, for individual customers and companies’ employees
CREATE A COMPREHENSIVE BANCASSURANCE OFFERING FOR CORPORATES
Deploy a complete offer for Group Health, Death & Disability and Retirement solution, structured for corporate
customers’ needs
Launch a P&C commercial lines insurance solution for corporates by end-2020
INCREASE THE INTERNATIONAL BUSINESS: +20% PREMIUM INCOME FOR INTERNATIONAL
ACTIVITY1 (€7.3BN IN 2022)
Within the Group via synergies
• Increase the equipment of retail customers in Italy
• Develop P&C activity in Italy, Portugal and Poland
Beyond the Group via partnerships
• Via a bancassurance business model with partner banks in Italy, Portugal, and Japan
• Via private banks hubs and creditor insurance in Europe
Explore new growth opportunities
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4. MEDIUM TERM PLAN 2022
1 International subsidiaries (excl. CALIE in France) and international activity of CACI; 2 Pacifica
+3%revenue 2018-22 CAGR
(Net Banking Income, €7.2bn in
2022)
<96% combined ratio2
~30% cost income ratio
2022 financial targets
GROUPE CRÉDIT AGRICOLE CRÉDIT AGRICOLE S.A.
CRÉDIT AGRICOLE GROUP Q2-21 & H1-21 HIGHLIGHTS
RB* Insurance
equipment rate8
+1.7 pp vs end 2019
+6.2 pp vs end 2018
42.4%
LCL
Insurance
equipment rate8
+1.2 pp vs end 2019
+2.5 pp vs end 2018
26.2%
CA Italia
Insurance
equipment rate8
+3.0 pp vs end 2019
+4.7 pp vs end 2018
18.4%
Constantly renewed organic growth potential
(1) Market share of UCITS in France at end December 2020 (2) End 2020, Crédit Agricole S.A. study – France – market share loans to LCL and RB households (3) End 2019, scope: annual contributions for temporary insurance for death + funeral coverage
+ long-term care (4) End 2019, annual contributions collected by CAA originated by CRCA and LCL (total Group market share of 25% including 9% insured by CNP) (5) End 2020, scope: Prédica, outstandings (6) End 2019, Pacifica & La Médicale de France
Property & Casualty business, annual contributions. Market size: Argus de l’Assurance (7) Internal sources (8) Car, home, health, legal, all mobile phones or personal accident insurance * Regional banks
4. MEDIUM TERM PLAN 2022
CHAPTER
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5
SOLVENCY & CAPITAL MANAGEMENT
A strong solvency ratio under Solvency II
Solvency ratio at a high level
A steadily high Solvency II prudential ratio of 243% at 30th June 2021, showing the solidity and the resilience of Crédit Agricole Assurances
Protection against an interest rate increase: policy of reserve constitution, high level of unrealised gains
Inclusion of the eligible policyholder participation reserve (PPE) in surplus funds
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5. SOLVENCY & CAPITAL MANAGEMENT
Group coverage ratio Key sensitivities
243% Solvency II ratio
at 30th June 2021 226%
239%
234%
218%
263%
243%
Stress Spreads Govies +75bp
Stress Spreads Corporate +75bp
Stress Equity Level -25%
Stress IR Down 50
Stress IR Up 50
June-21
CAA Solvency Capital Requirement (SCR) and Capital structure at end-June 2021
Use of the Standard formula
No transitional measures applied
Inclusion of the eligible policyholder participation reserve (PPE) in surplus funds
Unrestricted and restricted T1 cover 205% of SCR ; Tier 2 cover 38% of the SCR
Group’s subordinated debt valued at €7,563 million under Solvency II, of which €2,542 million held by Crédit Agricole Group
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5. SOLVENCY & CAPITAL MANAGEMENT
Breakdown of the Solvency Capital Requirement1 Eligible own funds (€bn)
64%2%
14%
7%
5%
8%
Market risk
Counterparty default risk
Life underwriting risk
Non-life underwriting risk
Health underwriting risk
Operational risk
€14.0bn
1 Solvency Capital Requirements (SCR) breakdown presented before diversification and after loss absorbing capacity by technical provisions and including operational risk
SCR14.0
Unrestricted Tier 1
26.7
Surplus19.9
Restricted Tier 11.9
Tier 25.3
8,9
7,1
10,7
Reconciliation
reserve
Ordinary share
capital & share
premium
associated
Surplus funds
33.9
Maturities and call dates of subordinated debts1
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2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Tier 1 - external Tier 2 - external
Tier 1 - intra-group Tier 2 - intra-group
730m PNC10
148m20NC10
182m2
107m 3
PNC10
750m PNC11
1000m PNC10
750m 10YB
1000m 30NC10
1000m 32NC12
550m 10YB
1 Maturity date for bullet issues and first call date for callable issues; 2 of which €168m of 20NC10 debt and €14m of 10Y debt; 3 2025 corresponds to the end of the grandfathering clause for the PNC10 €107m debt.
NB : The indication of the first call date is not an indication of the issuer’s intention to call or not to call the instruments
5. SOLVENCY & CAPITAL MANAGEMENT
1000m 10YB
CHAPTER
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6
DISCIPLINED RISK MANAGEMENT
Low structural exposure of CAA to minimum guaranteed rates
Average investment portfolio return of 2.13%* in 2020,
materially above the average guaranteed rate
Ability to adjust the profit-sharing rate to reflect a decrease
in the average investment return over time : 1.28%*** at end-
2020
One of the lowest average guaranteed rate of the market:
0.20% at end-2020
No minimum guaranteed rate (beyond one year) in life
insurance since 2000
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6. DISCIPLINED RISK MANAGEMENT
CAA minimum average guaranteed rate Return of assets and policyholders’ yields
0.38%0.36%
0.35%
0.32%
0.28%0.27%
0.20%
2015 2016 2017 2018 2019 2020
TMG TMG - new calculation method
3.40%
2.13%
3.5%
2.1%
2.91%
1.28%
2012 2013 2014 2015 2016 2017 2018 2019 2020
Average portfolio yield*
Market average portfolio yield**
Market average crediting rate**
* CAA scope ** Source: ACPR *** Predica scope
1 Rate calculated with a new calculation method. That takes into account the contractual guarantees
gross of fees, following the launch of new products since 2017 which applies negative guarantees for
customers.
1
Ability to adapt to the shift of the yield curve
Ability to increase the yield paid to policyholders
in case of rate increases:
Deliberate policy of reserves constitution via the
policyholder participation reserve (“PPE”) which reached
€12.2bn at end of June 2021 (5.9% of Euro contracts in
outstandings)
Part of the bond portfolio covered by CAPS
Strong customer loyalty (Surrender rate of 3.2% at end-
20202)
Dynamic management of the investment portfolio
Flexibility offered by a high level of unrealised gains
(€30.4bn at end of June 2021)
Ability to regulate euro-denominated products' inflows
and to assist the Group's clients in the diversification
of their savings
Ability to enhance the development of products less
sensitive to the low interest rate environment such as
protection, health, group insurance and creditor products
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Evolution of profit-sharing reserve1 (€bn)
6. DISCIPLINED RISK MANAGEMENT
2.1 3.0 5.4 7.29.0 9.8 10.8 11.6 12.2
1.2%1.6%
2.8%3.6%
4.5% 4.8% 5.2%5.6% 5.9%
2013 2014 2015 2016 2017 2018 2019 2020 June2021
Profit sharing reserve Share of Euro outstandings
1 ”Life France” Scope 2 Predica Scope
A prudent and diversified assets allocation with strong focus on Economic, Social & Environment
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6. DISCIPLINED RISK MANAGEMENT
Breakdown of investments by asset class (excl. Unit-linked accounts)1
Total of investments at end-2020: €344.8bn (excl. UL accounts)Bond portfolio by rating
1 Scope: life insurance companies of CAA; 2 Société civile immobilière: non-trading real estate investment company; 3 A power plant has an average power of 1.3 GW; 4 “Prêts participatifs Relance”
2.8% 3.4% 4.0% 4.5%7% 7% 6% 7%7% 8% 7% 8%
83% 81% 82% 80%
0.2% 0.3% 0.3% 1.2%
MarketValue Dec.
18
MarketValue Dec.
19
MarketValue Dec.
20
MarketValue Jun.
21
Short term investments
Interest rate products (bonds, etc…)
Real estate (buildings,shares, shares in SCIs²)
Equity
Other (private equity, convertible bonds, etc…)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
AAA AA A BBB BB ou < BB NR
2020
2019
Leading contributor among
insurers with €2.25bnRecovery Participating
Loans4
€6.3bnof green bonds
Financing of more than 8 GW of production capacity in
renewable energies, the
equivalent of 6 nuclear power
plants3
Number 1institutional investor in France in renewable
energies
Diversification of issuers and geographic areas
September 2021Crédit Agricole Assurances
29
Breakdown of investments by
geographical area at end-20201
Breakdown of investments by economic
sector at end-20201
Gross exposure to sovereign debt:
€77.3bn at end-20202
64%
20%
5%7%
4%
France
Euro Zone
Europe nonEuro Zone
Americas
Other
23%
33%
24%
8%
11%1%
Financial andSecurization
Government
Corporates
Real Estate
Agencies
Other
70%
12%
3%5%
5%5% France
Italy
Austria
Belgium
Spain
Other countries
1 Scope: CAA Group AuM owned directly excluding Mudum Seguros (ex GNB Seguros) and CA Assicurazioni as well as derivatives,repurchase agreements, intragroup loans.2 Exposure to sovereign debt is presented as net of impairment, before hedging, and corresponds to an exposure before application of sharing mechanisms between insurer and policyholder specific to life insurance.
6. DISCIPLINED RISK MANAGEMENT
CHAPTER
September 2021Crédit Agricole Assurances
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7
CONTEMPLATED TRANSACTION
Summary Terms of the Offering (Indicative, Non Binding)
September 2021Crédit Agricole Assurances
31
7. CONTEMPLATED TRANSACTION
Issuer Crédit Agricole Assurances S.A.
Issuer Rating A- / Stable outlook (S&P)
Notes EUR [●] Subordinated Tier 2 notes
Expected Issue Rating BBB (S&P)
Scheduled Maturity
Date
[●] 2031 Redemption subject to Relevant Supervisory Authority approval and other Conditions to Redemption and Purchase (no Regulatory Deficiency or Insolvent Insurance Affiliate Winding-up,
subject to regulatory waiver in certain conditions)
First Call Date - At anytime from the date falling 6 months prior to the Scheduled Maturity Date
Status
- Subordinated to all direct, unconditional, unsecured and unsubordinated obligations of the Issuer
- Subordinated to subordinated obligations of the Issuer that rank or are expressed by their terms to rank in priority to other subordinated obligations of the Issuer (including the Notes)
- Pari passu without any preference among themselves and with all other subordinated obligations of the Issuer, save for those preferred by mandatory provisions of law and those that rank or
are expressed by their terms to rank junior to the Notes
- In priority to any prêts participatifs granted to the Issuer, any titres participatifs issued by the Issuer, any deeply subordinated notes issued by the Issuer, and any class of share capital, whether
represented by ordinary shares or preference shares (actions de préférence) issued by the Issuer
Interest - Each Note bears interest at the Rate of Interest from (and including) the Issue Date and interest shall be payable annually in arrear on [●] in each year (each an “Interest Payment Date”)
Mandatory Interest
Deferral
- Interest will be mandatorily deferred in case of Regulatory Deficiency (each such date, a “Mandatory Interest Deferral Date”), subject to regulatory waiver
- Deferred interest payments will constitute Arrears of Interest which are cumulative. Arrears of Interest will not bear interest
Regulatory Deficiency
- (i) The own funds regulatory capital of the Group is not sufficient to cover its capital requirements (incl. SCR or MCR), or (ii) the Relevant Supervisory Authority has notified the Issuer that it has
determined, in view of the financial condition of the Issuer and/or the Group, that in accordance with the then Applicable Supervisory Regulations at such time, the Issuer must take specified
action in relation to payments under the Notes
Arrears of Interest
- Arrears of Interest may be paid at any time (in whole or in part) and must be paid (in whole) on the earliest of (i) redemption of the Notes, (ii) winding-up of the Issuer, or (iii) the next Interest
Payment Date whereby a discretionary dividend did occur in any forms on any ordinary or preference shares in the preceding 12 months (provided that the Interest Payment Date is not a
Mandatory Interest Deferral Date)
Special Event
Redemption
- In case of a Capital Disqualification Event, a Gross-Up Event, a Tax Deductibility Event (each a “Special Event”) . All redemptions are subject to Relevant Supervisory Authority approval and
Conditions to Redemption (no Regulatory Deficiency or Insolvent Insurance Affiliate Winding-up, subject to regulatory waiver in certain conditions)
Denomination - EUR 100k + 100k
Governing Law/Docs - French Law / Prospectus dated [●]
Form / Listing - Dematerialised bearer / Euronext Paris
Structural comparisonContemplated transaction
September 2021Crédit Agricole Assurances
Issue Date 28 September 2021 7 July 2020 24 June 2021 31 March 2021 10 September 2020
First Call Date (FCD)At anytime from 6 April 2031 to
the maturity dateNA
At anytime from 30 December 2031
to the maturity date
At anytime 6 months prior to 7 Oct.
2031 or any interest payment date
thereafter
At anytime 6 months prior to 17
March 2031 or any interest payment
date thereafter
Maturity Dated 6 October 2031 17 July 2030 30 June 2032 7 October 2041 17 September 2051
Issuer Rating (S&P/ F / M) A- / - / - A- / - / - - / A- / Baa1 A / A / A2 AA- / AA- / Aa3
Issue Rating (S&P/ F / M) BBB exp. / - / - BBB / - / - - /BBB-/Baa3 BBB+ / BBB/ A3 A/ -/ -
CCY/ Size EUR Benchmark EUR 1,000m EUR 500m EUR 1,000m EUR 300m
Interest [●] 2.000% 1.713% 1.375% until First Reset Date, 3m€
+2.4% 1.375% until First Reset Date, 10yr
MS +2.6%
Step-up NA NA NA Yes Yes
Optional Deferral NA NA NA
Anytime (other than a Compulsory
Interest payment Date or Mandatory
Interest Deferral Date)
Anytime (other than a Compulsory Interest payment Date or
Mandatory Interest Deferral Date)
Mandatory Deferral Upon Regulatory Deficiency Upon Regulatory Deficiency Upon Regulatory Deficiency Upon Regulatory Deficiency Upon Regulatory Deficiency
Arrears of Interest Cash Cumulative Cash Cumulative Cash Cumulative Cash Cumulative Cash Cumulative
Early RedemptionPar upon Gross-up, Tax
Deductibility, Capital
Disqualification Event
Par upon Gross-up, Tax Deductibility,
Capital Disqualification Event
Par upon Tax, Regulatory, Rating
Event, Clean-up Call
Par upon Tax, Regulatory,
Accounting, Rating Methology Event,
Clean-up Call
Par upon Tax, Regulatory,
Accounting, Rating Methology
Event, Clean-up Call
Exchange and Variation No No Yes Yes Yes
Denomination / Increment 100k / 100k 100k / 100k 100k / 1k 100k / 1k 100k / 100k
Governing Law French Law French Law Italian Law English Law French Law
Listing Euronext Paris Euronext Paris Luxembourg Luxembourg Luxembourg32
7. CONTEMPLATED TRANSACTION
CHAPTER
September 2021Crédit Agricole Assurances
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8
APPENDICES
As a responsible insurer, investor and company CAA has been mobilised during the crisis
COVID-19: strong support to our customers and the European economy
September 2021Crédit Agricole Assurances
3434
€38m Contribution to the solidarity fund
€40m Exceptional contribution of supplementary health insurers
€350m Economic recovery and health sector investments
€2.25bn2 Contribution Recovery Participating Loans
€239m Mutual and voluntary support scheme
24/7 remote medical consultation service available
98% CAA’s employees working remotely during lockdowns
Voluntary support scheme for all policyholders holding a comprehensive professional insurance withbusiness interruption coverage1 (~80k professionals);
Remote medical consultation service for all 420k beneficiaries of CAA’ top-up health insurance policies.
Employee support schemes: support and counselling services (social worker, free remote medicalconsultation);
Maintenance of our employees’ salaries and avoidance of short-time working measures, in line with CAGroup.
Solidarity fund set up by the public authorities to support very small enterprises;
Supplementary health insurers contribution to the expenses related to the management of the epidemic;
Economic recovery and health sector investments: €200m as part of the support programme for SMEsset up by French insurers and €150m to a SMEs equity investments fund.
Recovery Participating Loans “Prêts participatifs Relance”: CAA, leading contributor among insurers
€5m contribution to Crédit Agricole’s dedicated fund for financing basic necessities for the seniors;
Simplification and digitalisation of a number of processes to facilitate business continuity and continuityof services for its customers, while maintaining the same quality of services (remote management of P&Cclaims);
Accelerated claims processing for insured customers.
Simplification and digitalisation
Customers
Employees
Operations
Society
1 Crédit Agricole Assurances’ business interruption coverage specifically excludes the risk of a pandemic. 2 Out of an initial fundraising of €11bn announced by the French Insurance Federation
8. APPENDICES
Group organization
September 2021Crédit Agricole Assurances
35 Au 31/12/2020
Geographical breakdown
of Institutional investors
The top 50 institutional investors hold 20% of the
capital, i.e. 52% of the free float
Crédit Agricole
Group includes
Crédit Agricole
S.A.,
all of the
Regional Banks
and
Local Banks
and their
subsidiaries.
6%
10%21%
25% 37%
1%
France
Continental Europe
North America Asia
UK & Ireland
Rest of the World
Nearly
30,000
administrators
8. APPENDICES
Group key figures
September 2021Crédit Agricole Assurances
36
4 Source: Bloomberg6 Scope: Crédit Agricole Group
Retail bank in the
European Union
Based on number of retail banking
customers
Asset Manager in
Europe
Source: IPE Top 500 Asset Managers
published in June 2020 based on
assets under management as at
31/12/2019
Insurer in France
Source: L’Argus de l’assurance,
December 2020, ranking based on 2019
revenues
Provider of financing
to the French
economy
Internal source: Office of Economic Research
8. APPENDICES
Company overview: Crédit Agricole Group insurance companies
September 2021Crédit Agricole Assurances
37
In France,
– Life insurance and Death & disability
activities, with Predica and Spirica
– Property & casualty insurance activity led by
Pacifica and La Médicale 100%
Simplified consolidated organisational chart (March 2021)
Predica Spirica Pacifica CACI
CALIEMudumSeguros
(ex GNB Seguros)
CA Life Greece
CA Life Japan
CA Vita CAAssicurazioni
100%100% 100% 100% 100%
100% 94%
CAAS 2%
98%
La Médicale
100% 100% 100% 100%
In Europe,
– CACI develops creditor insurance worldwide
– Presence in several countries, mainly Italy and
Luxembourg
Space LuxSpace
HoldingAssur&me
100%100%
CACI Non Life
CACI ReCACI Life
100%
62%
100% 38% 100%
8. APPENDICES
CHAPTER
September 2021Crédit Agricole Assurances
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9
CAA CONTACT LIST
CAA Contact list
CAA Investors Relations [email protected]
Clément Michaud [email protected]
Chief Financial Officer
Marie-Isabelle Marcellesi +33 1 57 72 12 84
Head of Corporate Finance & Financial
Communication
9. CAA CONTACT LIST
Crédit Agricole Assurances September 2021
39