June 2009 - A solid year for the GMF Group in 2008 with sustained growth in all business sectors

Despite an economic crisis, plummeting financial markets and fierce commercial competition,

The GMF Group continued to record growth and significant gains in:

• the customer portfolio: 244,197 customers were added in 2008, lifting the total number of insured members to 3,129,686
• the contract portfolio: GMF recorded gains of 1.6% for consumer motor policies (growth three times above that of individual car fleet), 1.8% in multi-risk home insurance, 1.9% in individual accident insurance, 2.5% in legal insurance, 0.7% in savings products and 11.2% in provident insurance.

This sound dynamic was driven in part by the Group’s financial solidity, with

• Group equity increasing by 3% to €2,670 million – Group solvency ratio of 3.07,
• Group net profit of €125 million,

Earned premium income in France was stable at €2,847 million*, with

• Damages: earned premiums up 2.2% to €1,735 million*
• Life, the second highest inflow in 30 years in the sector: €1,112 million*, down by just 5.4% in a market that shrank by 11%.

Total earned premium income at GMF reached €2,947 million (at constant scope).

The GMF Group: ambitious plans for winning new customers

Damage insurance: motor, home, legal

In 2008, GMF consolidated its growth momentum and ranking as France’s number three provider of consumer insurance. It also ranks third by market share for motor and home insurance.

GMF expanded its portfolio across all segments in 2008, establishing 123,877 new contracts, of which 44,571 for homes and 40,942 motor policies.

The company continued to lower its premiums  * on all contracts during the year with special rates for young people (-25% the first year)   * and good drivers, and rates reduced by 4% as of 1st January 2008 for all customers achieving the maximum bonus over three years with no at-fault claims, and via its Bonus Plus plan (lifetime 15% reduction after seven years with no at-fault claims).

In the spring of 2008, GMF   * extended its ECO-PASS prices (10% reduction in motor premiums for those with monthly public transport passes) to all customers. This simple and efficient system delivers real benefits to policyholders.   * During the fall, it launched a new motor policy, AUTO PASS, with innovative guarantees and an average 3% premium reduction including price cuts that reflect the main concerns of households (low mileage drivers, "bio-bonuses", good drivers and holders of public transport passes).

GMF’s broad portfolio of individual accident policies expanded by 1.9% (1,209,567 holders), with life-accident guarantees (GAV formula) up 17% over the year.

It also introduced a new legal insurance policy including a “Basic” plan and more comprehensive “Integral” plan (Family Law and Construction). At end-December, 927,438 customers had taken out GMF Legal Insurance policies.

As part of its services designed specifically to protect public service agents on the job, GMF introduced a new Personal Insurance Policy for local elected officials and their deputies. The policy includes image insurance. The Multi-risk Associations contracts were also updated and simplified.

Life Insurance: foresight and financial products

In a highly turbulent financial market, GMF delivered a net return of 4.40% on life insurance policies, after offering 4.55% in the previous three years. True to its rigorous investment strategy, GMF once again guaranteed an attractive rate of remuneration on savings while maintaining sufficient provisions to secure its future.

At the end of 2008, GMF had 667,642 life and provident policyholders, for a 5% increase. The contract portfolio (751,983) expanded by 4.1% thanks in particular to an increase of more than 11% in provident insurance.

In 2008, GMF introduced two new time-windows for subscribing to Certigo, the multi-support contract with a buy-in time-window launched late in 2007. The portfolio included 5,840 contracts at the end of 2008. It also increased the types of investments included the Multéo life insurance contract, adding a new “Actions Solidaires” category for Socially Responsible Investing.

GMF innovated during the year by introducing on-line subscriptions including an electronic signature solution for the Accolia term insurance policy. This is the first death insurance contract available to all featuring an end-to-end online subscription process.

High loyalty among insured members and multi-channel organisation

In 2008, more than 70% of customers had at least two contracts with GMF and 48% at least three, proof of insured members’ loyalty to their insurer. One of the main qualities that attracts and retains members is an efficient multi-channel system that guarantees the fluidity of exchanges between telephone contacts, the branches and the Internet. Customers can reach GMF via any channel to get information, get quotes and subscribe, for instance, on the gmf.fr site (the brand’s interactive communication and service tool), and then follow up by phone or go to a GMF branch office for a one-on-one meeting.

A financially sound group

Thanks to its financial solidity, the group was able to withstand technical and financial shocks during a year made challenging by the global economic and financial crisis. This solidity will allow the group to continue to decide, in full independence, the role it wants to play in the market, as part of SGAM Covéa and with its partners, to benefit its insured members, networks and employees.

• Group net profit reached €125 million,
• Group equity reached €2,670 million (+3%)
• Assets under management reached €19,350 million (realisable value)
• Unrealised capital gains reached €638 million
• The combined solvency ratio reached 3.07

Rigorous management allowed GMF to avoid the most harmful consequences of the financial crisis.  

A group of mutual insurers anchored in the social economy

The GMF Group’ future is tied to Covéa, a solid group also comprising MAAF and MMA. France’s leading asset and liability insurer, SGAM (Société de Groupe d’Assurances Mutuelles) Covéa is a powerful driver of new ideas, development and savings as well as a guarantee of solidity for its three banners.

GMF also relies on long-term partnerships with players in the social economy that share its deep attachment to the mutual system. These partnerships, designed to benefit insured members, are geared to enhancing efficiency, expanding into new areas, bolstering the company’s presence at national and European levels, and continually improving services to insured members.

• Mutual health insurers: MG, MNT, MNH, MGP, GMPA, MAA, Mutuelle Intégrance, France Mutualiste
• The Crédit Coopératif group
• Belgian partner Ethias

In the words of Thierry Derez, Chairman and CEO of the GMF group,

“The year 2008 will be remembered for the rapid onset and intensity of the global financial and economic crisis, which did not spare the insurance industry, but the mutual insurance model applied by the GMF Group proved its relevance. This was a good year for group companies, which preserved their competitive margins. GMF remained attractive with simple and efficient product and service offerings that meet customer expectations. Today, GMF has more than 3.1 million insured members who trust it.”

The 2008 accounts will be approved by the General Meeting of GMF–Garantie Mutuelle des Fonctionnaires, to be held on 6 June 2009 in Marseille.

Media contact:

Claude MICHEL: +33 (0)1 47 54 17 10 – This e-mail address is being protected from spambots. You need JavaScript enabled to view it