CNP Assurances Reports First-Half 2003 Net Profit up 13.3% and Estimated Embedded Value at 30 June 2003 of More Than EUR43 Per Share.

Business Editors

PARIS--(BUSINESS WIRE)--Sept. 9, 2003

Summary:

In the first half of 2003, CNP Assurances' turnover and profit held up well against a backdrop of rock-bottom interest rates and equity prices.

Net profit was 13.3% up on the same period of 2002, boosted by the EUR52 million net gain on the sale of the Group's interest in Italian insurer Carivita in early 2003. Net profit before capital gains inched up 0.5%.

In addition, CNP Assurances was not obliged to raise overall provision levels in response to falling prices on the financial markets.

The Group's NAV rose to EUR36.3 per share and estimated embedded value topped EUR43 per share at 30 June 2003.

Buoyed by this performance, CNP is standing by its target of 4% growth in premium income over the full year. Barring any change in tax rules, net profit is expected to be on a par with 2002. Operating profit is expected to rise 10%.

Key figures:

    --  First-half 2003 consolidated premium income: EUR10,099
        million, an increase of 3.1% (4.4% at constant exchange rates)

    --  First-half 2003 consolidated net profit: EUR255.7 million
        --  up 13.3% (16.6% at constant exchange rates)
        --  net profit before realized gains attributable to
            shareholders up 0.5%

    --  Mathematical reserves at 30 June 2003: EUR147.09 billion, up
        7.5% (average reserves up 6.7%)

    --  Revalued net assets per share: EUR36.3 at 30 June 2003 versus
        EUR34.8 at 31 December 2002, an increase of 4.3%

    --  Estimated embedded value per share: over EUR43 at 30 June 2003
        versus EUR42 at 31 December 2002, an increase of 2.4%

    --  Solvency margin requirement covered 2.49 times

    --  2003 targets:
        --  4% growth in premium income
        --  Net profit on a par with 2002, barring any deterioration
            in the financial markets and any changes in tax rules
        --  10% growth in operating profit before the effect of
            changes in financial market conditions.

I -- Business performance

As announced on 11 August 2003, the CNP Assurances Group's consolidated premium income for the six months ended 30 June 2003 totaled EUR10,099 million, up 3.1% on the year-earlier period. Excluding the currency effect, the period-on-period increase was 4.4%, a rate consistent with the 4% growth in the French personal insurance market as a whole and the 3% rise in the French savings market.

Net new money collected by the CNP Assurances savings business rose 2%, contrasting with a 1% net decline for the market due to higher payouts.

II -- Results:

At 30 June 2003, CNP Assurances' mathematical reserves totaled EUR147.09 billion. The 7.5% increase on the year-earlier figure outstripped the market growth rate of 6.7%. Excluding linked liabilities, mathematical reserves expanded 8.1%.

Consolidated net profit for the period, which did not include any non-recurring items, came in at EUR255.7 million, up 13.3% compared with EUR225.7 million for the first half of 2002. Excluding the currency effect, the period-on-period increase was 16.6%.

This performance, which has given the Group a head start in reaching its full-year goal of matching 2002 net profit, stems from a gain attributable to shareholders included in recurring profit for the period, corresponding to the bulk of the amount expected to be realized over the full year. The gain arose from the sale of the Group's interest in Carivita, which was announced in December 2002 and was closed in early 2003, adding EUR52 million to net profit for first-half 2003, whereas capital gains attributable to shareholders came to only EUR23 million in first-half 2002 and EUR51 million in the full twelve months of last year.

The Brazilian subsidiary, Caixa Seguros, generated net profit of BRL 125 million (EUR43.5 million) on a 100% basis. The new subsidiary trimmed EUR2.5 million from CNP Assurances net profit for the period, after financing costs and amortisation of book goodwill. However, excluding the currency effect, i.e. at first-half 2002 exchange rates, it made a positive contribution of EUR4.9 million.

Unrealized gains on the total investment portfolio amount to EUR9.1 billion compared with EUR6.5 billion at 31 December 2002. The increase primarily concerns the bond portfolio (with unrealized gains of EUR8.8 billion versus EUR6.4 billion), while unrealized losses on the equity portfolio have contracted slightly (EUR0.6 billion at 30 June 2003 versus EUR0.8 billion at 31 December 2002).

III -- NAV:

Revalued net assets (NAV) per share at 30 June 2003 represented an estimated EUR36.3, up 4.3% on the 31 December 2002 figure of EUR34.8.

The increase is primarily attributable to the stock market rally over the last six months, which drove an increase in unrealized gains of EUR0.53 per share. The sale of the Group's interest in Carivita led to the realization of the unrealized gain of EUR0.38 per share existing at 31 December 2002, boosting net profit for the first half of 2003.

IV -- Embedded value:

The CNP Assurances Group's estimated embedded value at 30 June 2003 amounts to over EUR43 per share compared with EUR42 at 31 December 2002, an increase of at least 2.4%.

V -- Solvency margin:

At 30 June 2003, the Group's solvency margin requirement was covered 2.49 times, including 1.12 times under European standards by shareholders' equity and subordinated debt, before taking into account unrealized gains (versus 2.21 times and 1.07 times respectively at 31 December 2002).

VI -- Targets and outlook for the full year:

CNP is standing by its target of 4% growth in premium income over the full year. Assuming that there is no change in tax rules and that conditions in the financial markets do not deteriorate, net profit is expected to remain flat compared with 2002 due to the Group's higher effective tax rate explained by lowering of the avoir fiscal dividend tax credit rate from 15% to 10% and the decrease in realized gains on equities qualifying for a reduced rate of taxation. Operating profit, which represents a more meaningful indicator of underlying pre-tax profitability, is expected to rise by 10%, provided that conditions in the financial markets do not deteriorate.

This is a free translation of the original press release in French. The French and English versions have been posted on the CNP Assurances web site www.cnp.fr.

Appendix 1 - CONSOLIDATED PROFIT AND LOSS ACCOUNT

----------- ---------------------------------- ---------- ------------
                       30/06/2003              31/12/2002   30/06/2002
               Life   Non-   Other    total
in millions            life   Busi-
 of euros                     nesses
----------- ---------------------------------- ---------- ------------
Written
 premiums     9,320.5  805.7         10,126.2   18,378.7      9,813.8
Change in
 unearned
 premiums              (27.1)           (27.1)     (18.2)       (16.8)
----------- ---------------------------------- ---------- ------------
Earned
 premiums     9,320.5  778.6         10,099.1   18,360.5      9,797.0
Turnover
 from other
 businesses                    11.7      11.7       24.4         12.6
Other
 operating
 revenues                       1.9       1.9       12.4          2.8
Net
 investment
 income       3,439.4     96    0.1   3,535.5    4,291.6      1,441.7
----------- ---------------------------------- ---------- ------------
Total
 operating
 revenues    12,759.9  874.6   13.7  13,648.2   22,688.9     11,254.1
----------- ---------------------------------- ---------- ------------
Claims
 expenses
 and change
 in
 technical
 reserves   (11,625.5)(678.2)       (12,303.7) (20,107.1)    (9,998.7)
Reinsurance
 result         (21.5)  (0.5)             (22)     (14.4)        (5.3)
Expenses
 from other
 businesses                    (9.5)     (9.5)       (22)       (11.3)
Commissions
 and
 admini-
 strative
 expenses      (675.2)  (159)          (834.2)  (1,552.7)      (795.9)
----------- ---------------------------------- ---------- ------------
Total
 operating
 expenses   (12,322.2)(837.7)  (9.5)(13,169.4) (21,696.2)   (10,811.2)
=========== ================================== ========== ============
Operating
 profit         437.7   36.9    4.2     478.8      992.7        442.9
=========== ================================== ========== ============
Other
 income and
 expenses                                (0.2)       0.2         (1.9)
Exceptional
 items                                   (2.6)       2.8         (1.1)
Corporate
 income tax                            (149.9)    (242.8)      (157.4)
----------- ---------------------------------- ---------- ------------
Net profit
 of fully
 consoli-
 dated
 companies                              326.1      752.9        282.5
----------- ---------------------------------- ---------- ------------
Income/
 (loss)
 from
 associated
 companies                               (0.7)     (57.4)         2.2
Amorti-
 zation of
 goodwill                               (12.8)     (25.6)       (12.7)
----------- ---------------------------------- ---------- ------------
Consoli-
 dated net
 profit
 before
 minority
 interests                              312.6      669.9          272
----------- ---------------------------------- ---------- ------------
Minority
 interests                               56.9       98.8         46.3
Consoli-
 dated net
 profit                                 255.7      571.1        225.7
=========== ================================== ========== ============
Earnings
 per share
 (in euros)                              1.85       4.14         1.64
=========== ================================== ========== ============

Appendix 2

In euros                        30/06/2003     31/12/2002     % change
-------------------------- --------------- -------------- ------------
NAV per share                         36.3           34.8        + 4.3
Embedded value per share   greater than 43             42        + 2.4