CNP Assurances Announces 2002 Consolidated Net Profit up 8.1% on 2001 Recurring Net Profit.

Business Editors

PARIS--(BUSINESS WIRE)--March 11, 2003

CNP Assurances

Including 11.3% Growth Like-for-Like Embedded Value Stands At EUR

42/Share, Demonstrating CNP Assurances' Resilient Performance in

Difficult Market Conditions

Summary

CNP Assurances turned in another resilient performance in difficult market conditions, achieving the turnover and earnings growth targets announced at the start of the year. Turnover and assets under management grew at a faster rate than for the French personal insurance market as a whole. Growth in recurring profit - at 8.1% or 11.3% like-for like (i.e. excluding Brazil and the currency effect) - was in line with the stated target of around 10%. Despite falling share prices, the Group's fundamentals remained extremely sound - with revalued net assets and embedded value only slightly down on 2001, at EUR 34.8 and EUR 42 per share respectively. In view of these excellent performances, the Executive Board intends to recommend increasing the dividend to EUR 1.49 per share (excluding the tax credit) from EUR 1.39 for 2001.

Key Figures

-- Consolidated net profit: EUR 571.1 million (up 8.1% on 2001 recurring profit and 11.3% like-for-like).

-- Consolidated premium income: EUR 18,361 million (up 6.2% or 5.3% like-for-like)

-- Mathematical reserves at 31 December 2002: EUR 140.8 billion (up 5.8% or 7.3% based on average annual reserves)

-- NAV per share: EUR 34.8 at 31 December 2002 versus EUR 34.6 at 30 June 2002

-- Embedded value per share: EUR 42

-- 2003 targets: barring the effects of an abrupt deterioration in the business environment, turnover growth in excess of that of the market as a whole and recurring profit on a par with 2002, provided there are no changes in tax rules and before the effect of any additional provisions required due to falling stock markets.

I. Business performance:

As announced in the press release published on 6 February 2003, consolidated premium income totalled EUR 18,361 million in 2002, an increase of 6.2% on the previous year. Based on a comparable structure and at constant exchange rates ("like-for-like"), the increase was 5.3%. CNP Assurances outperformed the French personal insurance market which, according to the latest estimates published by the insurance industry federation (FFSA) inched up 1% to EUR 94.8 billion.

II. Results

Mathematical reserves at 31 December 2002 totalled EUR 140.8 billion, an increase of 5.8% on the year-earlier figure. The average annual increase was 7.3%.

Consolidated net profit came to EUR 571.1 million, up 8.1% on 2001 recurring net profit of EUR 528.3 million. The difference between this rate of growth and the target rate of 10% is attributable to the reduction in the dividend tax credit rate from 15% to 10% introduced in the Finance Act voted at the end of 2002. Based on a comparable Group structure and at constant exchange rates, net profit totalled EUR 587.9 million, an increase of 11.3% year-on-year. Caixa Seguros made a negative contribution (EUR 9.5 million) to Group profit due to the sharp fall in the exchange rate for the Brazilian real. If the exchange rate had held firm, the objective of a neutral impact as of 2002 would have been achieved.

2002 net profit was down by a modest 2.3% on published net profit for 2001 (EUR 584.3 million) which was boosted by non-recurring income of EUR 56 million.

Unrealised gains at 31 December 2002 totalled EUR 6.50 billion - after deducting EUR 785 million worth of unrealised losses on equities - virtually unchanged from the 30 June 2002 figure of EUR 6.8 billion, but quite a bit lower than the year-end 2001 figure of EUR 9.66 billion. In the second half of the year, increased gains on the bond portfolio more or less entirely offset lower gains on the equities portfolio.

III. Revalued net assets

Revalued net assets (NAV) per share at 31 December 2002 stood at EUR 34.8, a decrease of only 1.7% compared with the year-earlier figure of EUR35.4 and above the 30 June 2002 NAV of EUR 34.6 per share.

This favourable performance is attributable to:

-- the increase to EUR 0.4 per share of the unrealised gain on CNP Assurances' interest in Carivita, which was sold at the beginning of 2003.

-- the good performance of the proprietary portfolio, which was less heavily weighted than the CAC 40 in the stocks which registered the sharpest falls in 2002.

IV. Embedded value

Changes in Embedded Value and New Business were as follows:

Embedded value at 31 December 2002 stood at EUR 5,784 million or EUR 42 per share, slightly down on the year-earlier figure of EUR 43.5. This good performance in last year's unfavourable market conditions was primarily attributable to the resilience of CNP Assurances' NAV. As in prior years, Embedded Value was calculated on the basis of a detailed analysis of all in-force business, performed with the assistance of an independent firm of actuaries, B & W Deloitte, who have certified the calculation method and reviewed the calculations.

New Business totalled EUR 107 million or EUR 0.77 per share, slightly down on the 2001 figure of EUR 0.87 per share. Excluding Brazil, the value of new business totalled EUR 83 million or EUR 0.60 per share, virtually unchanged compared with EUR 0.63 per share in 2001.

V. Return on equity (ROE) by business segment

2002 return on equity (ROE) after dividends stood at 13.1% or 13.3% excluding Brazil.

The breakdown of 2002 net profit, excluding Brazil, by business segment is as follows:

The contribution of the Savings business to 2002 net profit was EUR 358.2 million, representing an ROE of 12%. The Pensions business's contribution was EUR 73.4 million, representing an ROE of 14.5%. Lastly, the Personal Risk business - including loan insurance and health insurance - contributed EUR 149 million, representing an ROE of 17%.

VI. Solvency margin

The Group's solvency margin, calculated according to European standards and after dividends, represented 2.21 times the minimum solvency margin requirement. The margin requirement was covered 1.07 times by shareholders' equity and subordinated debt, before taking into account unrealised gains.

Based on the former presentation, the coverage rates were 2.32x and 1.16x, respectively, virtually unchanged from the rates at 30 June 2002.

VII. Dividend

At the Annual General Meeting of 3 June 2003, the Executive Board will recommend paying a dividend of EUR 1.49 per share, excluding the tax credit, up 7.2 % on last year. This dividend represents a payout rate of 36% based on profit before non-recurring items.

VIII. 2003 outlook and targets

Barring the effects of an abrupt deterioration in economic conditions and conditions in the financial markets, CNP Assurances has set as its targets for 2003:

-- turnover growth in excess of that for the personal insurance market as a whole, and

-- recurring profit on a par with 2002, provided that there are no changes in tax rules and before the effect of any additional provisions required due to falling stock markets.

Appendix

           EURm                                                    %
                                                                change
                                                                 like-
                                                                  for-
                                  2002         2001   % change    like
-------------------------- ------------ ------------ ---------- ------
Premium income                18,360,5     17,290,0      + 6.2   + 5.3
-------------------------- ------------ ------------ ---------- ------
Recurring net profit             571,1        528,3      + 8.1  + 11.3
-------------------------- ------------ ------------ ---------- ------
Consolidated net profit          571,1        584,3      - 2.3   + 0.6
-------------------------- ------------ ------------ ---------- ------
Earnings per share in EUR         4,14         4,26      - 2.8       -
-------------------------- ------------ ------------ ---------- ------
Number of shares           137,854,064  137,127,708
-------------------------- ------------ ------------ ---------- ------

                                     31/12/2002  31/12/2001  % change
------------------------------------ ----------- ----------- ---------
NAV per share                              34.8        35.4     - 1.7
------------------------------------ ----------- ----------- ---------
Embedded value per share                     42        43.5     - 3.5
------------------------------------ ----------- ----------- ---------

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