March 01, 2017

BNP Paribas Cardif reports pre-tax net profit of 1.4 billion euros, an increase of nearly 3%1

  • Solid results for 2016, more than 80 partnerships signed or renewed

  • New development plan centred on digital transformation

A specialist in personal protection insurance with a presence in 36 countries (57% of gross written premiums derived from outside France) and No. 1 worldwide in creditor insurance2, BNP Paribas Cardif3 has reported solid results for 2016. Pre-tax net profit totalled 1.4 billion euros, an increase of 2.8%1over 2015. To address changes in technology, customer behaviours and the regulatory environment, BNP Paribas Cardif has announced a 2017-2020 development plan centred on a digital transformation to better serve its clients and partner distributors.

Solid results thanks to business diversification


BNP Paribas Cardif assets under management were up 5.1% at 31 December 2016, reaching 226 billion euros. BNP Paribas Cardif leverages responsible management that balances financial performance with environmental and social impact. At the end of 2016, over 5 billion euros4was invested in socially responsible investment (SRI) vehicles. The company had gross written premiums of 27.1 billion euros, slightly below the previous year (-2.1%)1, with a stable distribution between the Savings (75%) and Protection (25%) businesses. Pre-tax net profit was 1.4 billion euros, up 2.8% over 20151.

BNP Paribas Cardif domestic markets (France, Italy and Luxembourg) recorded gross written premiums of 18.6 billion euros in 2016 (18.5 billion euros in 2015):

Francehad stable gross written premiums at 11.7 billion euros (11.6 billion euros in2015). Savings gross written premiums were 10.2 billion euros, an increase of 1% over 2015, with a continued high proportion of unit-linked contracts (29% at 31 December 2016).

Protection gross written premiums in France totalled 1.5 billion euros,2% below 2015 levels. Within the protection segment, gross written premiums at Natio Assurance5(primarily car and comprehensive homeowner insurance) were down 3% versus 2015 to 165 million euros, while business at Icare Assurance, a specialist in extended warranties for motor vehicles, continued to grow as gross written premiums rose 6% to 63 million euros at end 2016.

Italy recorded gross written premiums of 4.5 billion euros (down 4% compared with 2015), including 3.9 billion euros in the savings segment. Following two very good years of new cash inflows, the Italian subsidiary continues to develop unit-linked products, which rose 6% compared with 2015. In Luxembourg, gross written premiums at Cardif Lux Vie totalled 2.4 billion euros (up 13%), mainly in savings, with a majority in unit-linked products (55%).

In international markets (Asia, Latin America and Europe, excluding domestic markets), the insurer recorded total gross written premiums of 8.5 billion euros, a decrease of 8%1versus 2015. BNP Paribas Cardif has voluntarily reduced its savings activities in South Korea and Taiwan given unfavourable market conditions, and has developed the protection insurance segment, where gross written premiums rose 3%1to 4.6 billion euros. The protection insurance segment saw good performance in Latin America (1.6 billion euros in gross written premiums, an increase of 4.9%1over 2015), particularly in Chile and Brazil, countries where the middle class is expanding significantly, creating growing demand for insurance cover.

Protection insurance business also increased in Europe, totalling 2.2 billion euros in gross written premiums, an increase of 5%1. This included robust growth in Spain (215 million euros, up 9%) and Germany (502 million euros, up 20%), led by the development of creditor insurance.


A very good year for partnerships: more than 80 contracts signed or renewed

BNP Paribas Cardif distributes its products through some 500 partners in a variety of industries: banks, financial institutions, consumer credit companies, automakers, retailers, telecoms companies, as well as IFAs6 and brokers.

BNP Paribas Cardif has actively developed these partnerships in recent years, renewing its service offering through organic growth, acquisitions and joint ventures. In 2016, BNP Paribas Cardif signed or renewed more than 80 partnership agreements. They included contracts with Hua Nan Bank (HNB)in Taiwan, Grupo Aval, the largest financial group in Colombia and Ripley, one of the biggest retailers in Chile. In addition, building on the expertise of Icare, a pioneer in mechanical breakdown warranties and maintenance contracts in France7, BNP Paribas Cardif signed a partnership with Santander in Germany.

Another highlight of 2016 was the signature in November of a memorandum of understanding between BNP Paribas and the Matmutgroup for creation of a joint insurance company to be launched in 2018. Owned 66% by BNP Paribas Cardif and 34% by Matmut, this new insurer will specialize in property and casualty insurance, creating an omnichannel offering aligned with new policyholder needs.

Renaud Dumora, Chief Executive Officer of BNP Paribas Cardif, said:“Beyond our solid results and our successful business model based on partnerships, we are driving the transformation of our business to retain our leadership. The insurance industry has entered a new era shaped by new requirements and above all vast opportunities created by changes in technology, in society and new uses. The distinctive business model of BNP Paribas Cardif and our deep expertise in insurance cover for people and property distributed through partnerships give us a solid competitive advantage. Our position enables us to now begin to prepare the model of the future. The insurer of tomorrow must be open, as well as agile and able to respond swiftly to anticipate new needs. What’s more, the insurer of tomorrow must strike the right balance between people and digital technology, between customization of offers and pooling. It is essential that the fundamental pillar of insurance, the model of solidarity among policyholders, be maintained.

To become the insurer aligned with this vision, BNP Paribas Cardif is pursuing an ambitious development plan for 2017-2020 called Cardif Forward, marking the 3rd stage in the digitization of BNP Paribas Cardif. Through 2012-2014 the company engaged with a new digital culture, changing work methods and deploying new tools within the scope of 320 different projects launched in 36 countries. This was followed by a prototyping phase from 2014 to 2016. The 2017-2020 period will see the rollout of these initiatives on an industrial scale.


Cardif Forward, an ambitious development plan for BNP Paribas Cardif’s core business: protect people and their property at every stage in their lives

Clients expect day-to-day support, impeccable quality services and fast responsiveness. Technology helps meet these expectations. Improving the customer experience thus figures at the heart of BNP Paribas Cardif’s strategy. This initiative will take advantage of the insurer’s expertise in data to boost both quality and agility.

BNP Paribas Cardif will invite clients to experience a new approach to insurance that integrates day-to-day prevention and support, offering products and services adapted to new needs (such as Habit@t home insurance in Italy based on a detection box that triggers an alert in the event of fire, water damage, etc.) and to new lifestyles that emphasize usage over ownership.

By 2022, BNP Paribas Cardif aims to automate 80% of its processes to simplify the client journey, enhancing speed and transparency. In France, for example, BNP Paribas Cardif already provides an online health questionnaire in order to give an immediate answer to people applying for creditor insurance for a property loan. In Spain, an initiative in the protection segment is applying data science expertise to provide an immediate decision on 80% of insurance claims. Automation is a strategic priority that will be supported by accelerated investments in the company’s Data Lab’ (dedicated to data science and artificial intelligence) and in developing agile, high-performance information systems.

To execute this plan and continue to drive its transformation, BNP Paribas Cardif will also accelerate itsopen innovation strategy, taking advantage of engagement with start-ups (in particular through Cardif Lab’, the company’s innovation lab, which offers a direct interface with this ecosystem) and with the academic community (for example, BNP Paribas Cardif sponsors the chair in excellence forData Analytics & Models for Insurance at the Institut de Science Financière et d’Assurances).

BNP Paribas Cardif will also develop by gaining market share and capturing growth opportunities in emerging markets in Asia and Latin America and by developing partnerships with new distributors and new industries. By building on its successful partnership model, an ability to fluidly integrate distributor processes, and on its know-how in co-creating insurance offers, BNP Paribas Cardif will help its partnersenrich the services they offer to their customers.

This plan aims to maintain RONE8 of over 18% despite the current context of low interest rates and new regulatory costs. This is also expected to allow BNP Paribas Cardif to generate400 million euros in additional revenuesby 2020.


1 At constant exchange rates
2 Source: Finaccord
3 Contribution of insurance business to BNP Paribas consolidated accounts
4 Total investments comprising general fund and unit-linked investments
5 Natio Assurance is 50%-owned by BNP Paribas Cardif and fully consolidated in the company’s gross written premiums.
6 Independent Financial Advisors
7 BNP Paribas Cardif acquired 100% of Icare in 2014
8 RONE: pre-tax Return on Notional Equity