Business Report 2013 MUTUAL COMMITMENT

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1 Business Report 2013 MUTUAL COMMITMENT

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3 02 A powerful group, respectful of mutualist values 04 Key figures and notable developments 06 An attractive group that combines soundness with security 08 Interview with Thierry Derez 10 Governance 2 A dynamic sales team on the insurance market Insurance Covéa 14 MAAF 16 MMA 17 GMF 18 Specialised companies 19 Health and Provident Cover Covéa 20 International A permanent quest for innovation, engagement and performance 28 Covéa AIS 32 Technology and Information System 34 RSE and Human Resources 38 Control, Solvency, Accounts and Reporting 40 Finance Covéa 42 Reinsurance and Acceptances, Organization and Financial Results 43 Consolidated Financial Statements 2013

4 A powerful group, respectful of mutualist values BUSINESS REPORT 2OI3 / Covéa

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6 Key figures Commercial results Financial results Assets and Liabilities N 1(1) Individual Health N 4 Companies N 3 Legal Protection N 1 Life and non-life turnover 15.5 billion euros (+5.8%) Turnover 69% 31% Non-life Life Members and clients More than 11(2) million Vehicles insured 10(2) million Net result (Group share) 824 million euros Solvency 405% Equity capital (Group share) 10.6 billion euros Homes insured (1) Source: l'argus de l'assurance at 31/12/ (2) 26,624 (2) Figures for the French companies included within the Covéa scheme (not including Carma). million employees (in France and abroad) BUSINESS REPORT 2OI3 / Covéa

7 Notable developments Organisation/Strategy Services Offers Stronger asset management with the creation of MMA Expertise Patrimoine resulting from the merger of AZUR Patrimoine and Courtage Vie. 30 years of the first GMF Telephone Call Centre (CRT) which today uses 11 CRT. Covéa operational reorganisation with creation of an Insurance Directorate and new Group Directorates. Joaquim Pinheiro succeeds Étienne Couturier as Managing Director of MAAF. SMI joins Covéa to strengthen the group health insurance position. Dematerialisation of claims management, a major increase in fluidity in customer relations and between MMA departments. User-friendly and versatile: creation of a new, more ergonomic member's area, Votre Espace GMF. Vigicarotte, MAAF's travel safety plan to make young people aware of their responsibilities regarding the dangers of drink-driving, highlighted on the social networks. Roll-out of the breakdown network for all the Group's motor insurance customers, a unique solution in France. Development of collaborative practices with all agents of the leading social insurance network MMA: customers, employees, agency staff and agents. New MAAF individual health product Vivazen constructed jointly with APGIS. The professionals and firms, heroes of the new MMA advertising campaign. Marketing of the value version of Santé Pass to suit GMF members with restricted budgets. Price blitz with MAAF Power : 5% reduction on 2013 motor insurance prices and no increase in GMF launches Protection Revenu to maintain the standard of living of state-employed agents and contract workers.

8 An attractive group that combines soundness with security Strong brands in a powerful mutual insurance Group Guided by the core values of mutual insurance, MAAF, MMA and GMF have combined their forces within Covéa. With their reputable specialist areas and respected identities, these top rank players in the insurance market in France still remain competitors. MAAF, mutual insurance company without any intermediary, offers global insurance solutions for individual private clients and corporate professionals. MMA, multi-specialist insurer with a network of general agents, caters for both the public at large and the business community. GMF, mutual insurance company without any intermediary, is the insurer of choice for those working in the public sector thanks to the range of policies and services it offers on property and personal insurance. A Group in constant development Covéa s positioning and solidity make it very attractive, opening up opportunities for development by bringing in new supporters. That was how APGIS, an organisation specialising in employee benefit schemes, then SMI, a mutual health insurance company, joined Covéa, in 2011 and 2013 respectively. Some twenty brands are present in the Group operating in the field of insurance, finance and general consultancy services. Covéa is also set up abroad where it realises an increasing part of its turnover. Its subsidiaries are situated in the United Kingdom, Italy, USA and Luxembourg. In addition, it has share interests in Spain and Canada. Over 11 million members: a growing impact on the French market Covéa has over 11 million members and clients in France. With policies designed to cover damage to property, life insurance as well as employee benefit schemes, the Group s logos and signs are up there in the everyday life of their clients. The three companies guarantee them solidarity, through customer relations and the management of claims and losses as well as being physically nearby. Each one provides excellent linked-up access facilities (points of sale, telephone, internet and social networks) in order to offer clients the contact point which suits them best. A staff of over 26,000 in France and abroad The Group s construction is above all that of a human adventure: over 26,000 women and men work together within Covéa. A staff of over 21,000 spread across France, at numerous locations, put their skills at the service of the people they insure. Multiple cooperation SGAM is a tool which allows the various companies to share certain resources and activities and thus gives them an added edge of competitivity. From year to year, Covéa has allowed cooperation in areas where the handling of financial issues is vital and where size and efficiency play a decisive role, such as, particularly, the efficient processing of claims and losses, investments and financial management, general procurement procedures, IT, reinsurance, health and supplementary benefits as well as international operations. This blending of skills provides a positive advantage for both the mutual insurance companies involved as well as their members who enjoy the best price rates as well as the most efficient and reliable services. In 2013, Covéa stepped up its organisation in order to further strengthen cooperation and explore sectors which had not so far been linked together, particularly in the core areas of business and skills. A model of organisation combining solidity and security Financial solidarity between the three enterprises is one of SGAM s fundamentals. It guarantees the durability of the companies and thus of the insurance provisions and services given to members. The organisation model thus provides the overall structure with solidity and security - vital elements in the current environment BUSINESS REPORT 2OI3 / Covéa

9 Communication S U R A N C I N E Insurance S U B S I D I A R I E S I N F R A N C E Members and clients Finance I P A N D AFFILIATED MUTUAL CO M PA N I E S Institutional Partners Technology and information system S E R V Solvency control, Accounts, Reporting I C E S A N D F I N A N C E Assistance Indemnities services Human Resources - General Secretariat

10 Interview with Thierry Derez Chairman and Managing Director How would you define the year 2013 for Covéa? Commercially, 2013 was rather satisfactory for the Group, particularly in the field of car and house insurance. As regards life insurance, although our net funds are positive, we have suffered from the uncertainty on the trends in the relevant tax levels involved. Our combined turnover, at over 15.5 billion euros, shows a progression of 5.8%. Covéa confirms its good financial solidity with a constantly high solvency margin. Finally, the year was essentially thwarted by the chain of climatic events, which taken individually weren t all that spectacular, but which, globally, represent a net charge for claims of 221 million euros. The entry of SMI into Covéa dates from October Are there any plans for development, in France or abroad? If an industrial project needed new support or simply increased cooperation with Covéa, we would very clearly study the question. But, for the time being, we haven t started looking for any new partnership. Similarly, our strategy for diversification at international level remains very pragmatic BUSINESS REPORT 2OI3 / Covéa

11 If an opportunity presented itself and met our criteria, we would analyse it carefully. Nevertheless, our objective is not to spread our wings abroad like some over-enthusiastic fanatic, given that the international side of our business already represents 12% of our combined turnover. Moreover, bearing in mind the context of the regulations and uncertainties which still hover over the conditions of solvency which will be imposed on us tomorrow, it s sensible to bide our time. What are the highlights in store for 2014? We are currently involved in the preparation for the coming into force of Solvency 2 in order to be up and running by 1st January This reform requires very significant means and human resources. Then, our domestic markets will be impacted by the implementation of new regulations and we must get ourselves ready for that. By authorising the infra-annual cancellation of car and house insurance policies, the Hamon law will bring about additional costs for technical, administrative and commercial management which will inevitably have an influence on our pricing policies. The Accord National Interprofessionnel [Inter-professional National Agreement] imposes on all companies the obligation to establish by 1st January 2016 at the latest a collective guarantee plan for health care costs, a plan which is obligatory to sign up for. This new arrangement should provoke shifts between individual and collective health insurance. The very marked advances in our environment constitute a real challenge for Covéa. Finally, we have to persevere in adapting to the digital revolution. New functions and processes have come into being, particularly via the internet and social networks. The following stage is the big data one. We must anticipate the arrival of these enormous databases which, by the sheer wealth of the information they contain, will allow us to refine our offers and prices.

12 Governance Covéa Management Committee at 31 december 2013 To strengthen the links between the Group s operational management boards and increase the level of cooperation, Covéa set up a new organisation in June Led by Thierry Derez, Chairman and Managing Director, the Covéa Management Committee is composed of 11 members: Thierry Derez Christian Baudon Didier Bazzocchi Sophie Beuvaden Patrice Forget Hervé Frapsauce Chairman and Managing Director of Covéa, MAAF and GMF, Chairman MMA Managing Director, Insurance Covéa Managing Director, Institutional Partnerships and Health and Provident Cover Covéa Managing Director, Finance Covéa Managing Director, Human Resources/ General Secretariat Covéa Managing Director MMA Michel Gougnard Joaquim Pinheiro Philippe Renault Laurent Tollié Jean-Claude Seys Managing Director, Assistance, Indemnities, Services Covéa Managing Director MAAF Managing Director of Technology and Information System Covéa Managing Director GMF Vice-Chairman and Managing Director of Covéa BUSINESS REPORT 2OI3 / Covéa

13 Covéa s Board of Directors At 31 December 2013, Covéa s Board of Directors had 28 executive managers: Thierry Derez, Chairman and Managing Director Jean-Claude Seys, Vice-Chairman and Managing Director of Covéa Denis Barré, Serge Dussaussois, Marie-Françoise Ferrand, Jean-Philippe Gauduchon, Michel Roux, Rémy Verges, Assurances Mutuelles de France represented by Alex Capelle, Assistance Protection Juridique represented by Jean-Pierre Gualezzi, Apgis represented by Gilbert Lebrument, DAS Assurances Mutuelles represented by Patrice Daudier de Cassini, Fidélia Assistance represented by Xavier Dejaiffe, Force et Santé represented by Michèle Beyt, La Garantie Mutuelle des Fonctionnaires represented by Hubert Ivanoff, GMF Assurances represented by Jean-Marie Iché, GMF Vie represented by Michel Radelet, MAAF Assurances represented by Michel Castagné, MAAF Assurances SA represented by Bernard Barbottin, MAAF Santé represented by Charles Zanoni, MMA IARD Assurances Mutuelles represented by Michel Coursat, MMA IARD (SA) represented by Anne José-Fulgéras, MMA Vie Assurances Mutuelles represented by Christophe Guettier, MMA Vie (SA) represented by Mario Colaiacovo, Prony Habitations represented by Christian Delahaigue, La Sauvegarde represented by Alexis Lehmann, SMI represented by Gérard Dufour, Téléassurances represented by Pierre Vionnet. Audit Committee Assurances Mutuelles de France represented by Alex Capelle - Président, Force et Santé represented by Michèle Beyt, Anne-José Fulgéras, La Garantie Mutuelle des Fonctionnaires represented by Hubert Ivanoff, MMA IARD Assurances Mutuelles represented by Michel Coursat, Prony Habitations represented by Christian Delahaigue, Michel Roux, Téléassurances represented by Pierre Vionnet, Jean-Jacques Vouhé.

14 A dynamic sales team on the insurance market BUSINESS REPORT 2OI3 / Covéa

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16 Insurance Covéa Strengthening the Covéa effect Maintaining the dynamics of each division by exploiting Covéa s potentials to the fullest extent possible. This is the objective of the new General Management for Insurance set up in June 2013 and comprising the senior insurance management executive boards of MAAF, MMA and GMF. Entrusted to Christan Baudon, it streamlines and facilitates the sharing and exploiting of the various skills available. Covéa s General Management for Insurance coordinates the General Management boards of MAAF, MMA and GMF, as well as the General Management team for Health and Provident Cover. MAAF, MMA, GMF, strong brands In Covéa s new organisation, each company keeps its own particular identity, with its own plan of action and its own operational organisation. Each one of them aims to remain a strong brand and pursue growth in its profitability. The creation of the General Management - Insurance aims to carefully consider every aspect of an issue and act together on it. The challenge for the Group is to increase its competitivity in order to tackle a level of competition which is constantly becoming more and more sustained. On the one hand, by reducing its costs, prudently selecting its risks and cutting costs on production so as to be able to offer attractive prices and, on the other hand, by offering quality products and services to its policyholders. A Management Board for Strategic Transformation Within the General Management - Insurance, the Management Board for Strategic Transformation has as its mission an increase in the efficiency and competitivity of each company individually and throughout the Group as a whole. It plays an important role in underlining the benefits of size, explores what can be achieved by working together and stimulates permanent improvement. This Management Board works closely with all the other General Management Boards in the Group in order to draw out new forms of cooperation. COhesion I had the opportunity and good luck to develop within the three companies in the Group. This experience is very enriching indeed. The links forged make it far easier to manage files in the common interest of our clients. Marina Rosel, GMF Assurances - Cayenne BUSINESS REPORT 2OI3 / Covéa

17 We have a real potential of reciprocal experiences to share. Christian Baudon, Managing Director Insurance Covéa What new types of cooperation between the companies in the Group do you intend creating? It s still too early to determine exactly what the areas we could develop together will be and how we shall proceed, but history would indicate that we should build together. For a decade now, the growing strength of Covéa has already made it possible to develop lots of areas of cooperation, notably for the management of losses, investments and financial management, procurement, etc. The challenge is to go further and explore the sectors which have not yet been linked up, particularly on core business and specific professional skills. We have a real potential of reciprocal experiences to share in order to further reduce our costs, select our risks better and offer still more service to our members. How do you envisage strengthening competitivity within the Group? It could well be, for instance, by creating common tools. Today, knowledge of our clients is an area that can be improved. In our files, we have mainly management data, linked to the various individual policies, but very little behavioural information on the policyholder. Our competitivity is thus going to concentrate and depend on that side of things too - refine the profile of our members, by making full use of all the data we can access and cross-reference within our various companies. How are you organising inter-company work? Initially, what s important is to learn how to get to know each other and work together. That s why we ve created clubs by specific job areas (Life, Networks, Technical, etc.). These meetings, presented by members of the Strategic Transformation division s management team, make it possible to get to know and trust each other. Thus, in particular, working groups have already been set up to analyse the consequences of the Hamon law for our companies. This means that an analysis is carried out only once and not three times as it used to be. The construction phase will be implemented later.

18 The quality price benchmark 3.6 million members/clients (1) 3.8 million vehicles insured (1) 2.4 million houses insured (1) More than 7,400 employees (FTE) Joaquim Pinheiro, Managing Director MAAF What are MAAF s 2013 financial results? Our results for 2013 meet our expectations and nicely reflect the operational resources we used. There were three very positive periods during the year. In the spring, the launch of Vivazen, our new individual Health offer, performed very well. Singled out and honoured by the professional press, this new policy received a very favourable network response. With MAAF Power, price rebates on current policies and maintenance of prices for 2014, MAAF opened the debate on the price increases in car insurance and, above all, was a real commercial success. Finally, the Enchantement client, a loyalty programme involving very broadly our networks and loss management procedures was the end of the year event and set the groundwork for the 2014 action plan. How does this balance sheet translate into figures? We recorded 80,000 net car policies, against 30,000 in MRH s business also benefitted from the fallout from MAAF Power, since we picked up more than 70,000 net MRH policies, as against 55,000 last year. A more than ideal phenomenon which, let s hope, will be confirmed over time. And it s the first time, since 2009, that the cancellation rate hasn t risen all that much. On the pensions side of the business, our turnover, just like the number of policies, is up. On life assurance, we continued our growth, with a net increase in funds collected of +17%, more additional payments and a significantly higher level of new business. And I m convinced we can do even better! What are your priorities for 2014? The first priority is to pursue the Enchantement client, the catalyst for growth par excellence. Creating trust and guaranteeing satisfaction are essential in our business. Four key moments in the relationship with our policyholder have been identified, and on these we can being real added value - support, managing a claim, moving house and, for us in the business, all the administrative tasks. The small business market, our core target, continues to progress in spite of the crisis, and we have a strong potential for development in this segment. Finally, we are obviously preparing, together with the Covéa General Management for Health and Provident Cover, the implementation of the statutory collective health insurance, for which we shall have to adapt our distribution procedures, passing from a rather individual and generalist approach to one which is rather collective and specialised. We approach all our strategic We approach all our strategic challenges in the Covéa context, a third route, which offers us experiences and enrichment. challenges in the Covéa context, a third route, which offers us experiences and enrichment. (1) Perimeter: MAAF Insurance, MAAF Health and MAAF Life BUSINESS REPORT 2OI3 / Covéa

19 The leading insurance social network in France Hervé Frapsauce, Managing Director MMA 3.3 million members/clients 2.8 million vehicles insured 1.8 million houses insured More than 6,600 employees (FTE) What is MMA s commercial track-record as shown in its balance sheet? MMA has had a successful year, our business results are solid, in line with the best in the market. Two segments performed well: there was an increase of 2.8% for car insurance and 4.6% for health insurance. The number of units of account collected posted a very strong increase of 32% and counterbalances a global figure collected which is slightly down. In the pensions market, we posted a record increase of +104% in new business. On the Professional Bodies and Companies side, our turnover is slightly up. The share of our active general agents in this segment is increasing. We are also attracting more and more new business through IARD [Fire, Accidents, Misc. Risks] brokerage, which constitutes a strong engine for development in this market. Finally, MMA has capitalised on its signature: 1 st social network for insurance picking up over 13% new business via the internet. What are your priorities for 2014? Our primary objective is to further improve our structural profitability by concentrating on the general efficiency of our activities. This efficiency entails a return to the fundamentals of insurance: careful choosing of risks, portfolio monitoring and perfect management of the work involved in dealing with accidents and losses. Our second ambition is to become a recommended player on the Professional Bodies and Companies market. Our offers have been revised or are in the process of being so. The quality of our operational management and the capacity of our sales and commercial forces to encourage our agents and brokers will be decisive. There is little doubt that we have a place to occupy. On the Life market, the major challenges are to maintain the sustained development and position of MMA on the market. Finally, we will have to be ready to mobilise ourselves faced with the restructuring of the Health market. Covéa constitutes a powerful training channel and contributes to our financial solidity. And in the longer-term? MMA is thinking a lot about the future of its business model and the positioning of its general agents. This future will notably involve e.business, if we wish to increase our position in the market for private individual clients in the coming years. In this context, Covéa constitutes a powerful training channel and contributes to our financial solidity.

20 Assuredly human Covéa allows sharing which in turn stimulates the GMF dynamic. Laurent Tollié, Managing Director GMF How has your balance sheet worked out for 2013? Commercially speaking, GMF has enjoyed a very good dynamic. The level of development in IARD is markedly ahead of the market. For car insurance, we ve seen the portfolio pass the 2% growth mark (+2.2%) for the third year in a row and nearly 2% for house insurance. And all this with a controlled lapse rate. The Health portfolio, bearing in mind how recent our offer is, is 30% up. For Life assurance, the gross takings are up by +4%, consistent with overall market results. Finally, Prêtiléa, a mortgage insurance product, has also been well received. What were the highlights? In 2013, we launched the new site for members on gmf.fr, which allows us to offer an internet site which is practical, up-to-the-minute and upgradeable. We have adjusted the organisational arrangements for work both in terms of telephonic communication and the management of accidents and losses in order to improve efficiency and increase satisfaction for members as well as for staff. For the network, we have also set up new tools with the aim of helping managers in the organisation of their GMF Consultancy assignments. These initiatives have been accompanied by significant support and guidance programmes for our managers in order to provide them with the means to implement these new procedures. Finally, a monitoring and technical quality control project has been initiated in the agencies and call centres. What are your priorities for 2014? First of all, we must retain a strong commercial dynamic which will be based on operations linked to the brand s 80 th birthday set against an economic (but also regulatory) environment which remains very difficult. It is also a year where we will be finalising a cycle of important investments, with notably the setting up of the new Information System for accidents and losses is finally a year which will project us into the future with the construction of new mutualisation programmes in Covéa, and the drafting of our next strategic plan for ! 3.4 million members/clients 3.1 million vehicles insured 2.7 million houses insured More than 6,600 employees (FTE) BUSINESS REPORT 2OI3 / Covéa

21 Specialised companies Covéa Fleet A subsidiary of Covéa Coopérations, MMA IARD and MAAF, Covéa Fleet - with its network of over 3,000 professionals (agents, brokers and staff networks) - is the only insurer in France specialising in the vehicle fleet, transport and haulage markets. In the same field, Covéa Fleet has also formed multiple partnerships, notably with car makers and their financial brokers handling policies for financing and damages as well as mechanical warranties in France and Europe. Globally for 2013, turnover reached 715 million euros - up by close on 7% compared with Business generated under the Freedom to Provide Services arrangement represents 17% of this turnover. Covéa Risks An IARD subsidiary of MMA, Covéa Risks works exclusively with brokers and maintains business relations with the big international brokerage groups as well as with purely national or regional brokers. It offers its collaborators a complete range of all-inclusive products as well as customised offers on the professional, MSE and medium-sized company markets. It also has a range of products for private individuals intended to support its professional and business clients. Capitalising on the expertise and know-how of the management teams at MMA, Covéa Risks intends to deploy a development strategy aimed at positioning it amongst the reference players in IARD s Professionals and Companies brokerage business without, for all that, adversely affecting the profitability of its operations. In a difficult economic environment and a depressed market, Covéa Risks confirms its dynamism with an advance in its turnover of more than 6% (623 million euros), in accordance with its commercial policy. Covéa Caution Covéa Caution is involved in 3 areas of financial guarantees in different business sectors: the guarantee known as legal (mandatory notably for the legal profession, as well as for property and tourism companies), the building guarantee (for professionals in the property construction industry), and the supplier and miscellaneous guarantees (in the service and transport industries). The business for 2013 turned out to be relatively stable at over 10 million euros in spite of the conditions affecting the main markets in which it operates (construction and property). This performance was possible, in particular, thanks to the increase in the impact of its new product for operators of wind farms (site reinstatement guarantee), the marketing of the solution in the area of the Financial Guarantee of Completion targeted at property developers as well as the ongoing development of its portfolio for professionals in the tourism industry. The mobilisation of its teams, the quality of the underwriting and monitoring of the portfolio, allowed Covéa Caution to maintain a high level of profitability for the financial year Nexx Assurances Nexx Assurances is a remote insurance company which, since 1997, has been developing new distribution concepts for its products by: Online sales over the Internet and by telephone, the provision of specific offers for peer targets, the setting up of partnerships with companies keen to diversify. These ready to go solutions come in different forms: distribution under the Nexx brand or white label, sales via its call centres or through a management arrangement offered by the partner. To date, Nexx has signed partnership agreements notably with large-scale distribution operators, the automobile industry and the insurance business. Alongside this, Nexx provides its support to MAAF for selling over the Internet and to insurance professionals. The laboratory activity on behalf of MAAF has, moreover, made it possible, in 2013, to carry out a pilot to test the proper functioning of the switch to the new European bank credit and debit transfer system (Sepa). In 2013, the Nexx Assurances portfolio comprises 152,800 policies for 94,100 clients.

22 Health and Provident Cover Covéa Capture market opportunities in Health and Provident Cover With 3.2 million health insurance beneficiaries, 40% of whom are covered by collective policies, the Covéa Group is a significant player on this market. Endowed with a strong sense of commercial reactivity, MAAF, MMA, GMF can seize those opportunities which arise in the Health and Provident insurance markets, relying on their numerous expert skills and the mobilisation of key resources thanks to an extensive transformation programme. COoperation With almost 4,000 new companies insured in 18 months, the MAAF-APGIS partnership shows that the Covéa Group has a real potential for development in collective Health and Pension schemes with SMEs and very small companies. Laurence Bouquet, Collective Insurance Director, Covéa Covéa s Health insurance business enjoyed sustained growth in Covéa now covers 3.2 million Health policyholders, in other words, an increase of 660,000 persons protected, following the entry of SMI into Covéa last October. The premiums acquired in 2013 for individual and collective health insurance came to billion euros, against billion euros in 2012, in other words, a growth of 20% in turnover. Covéa henceforth occupies 4 th position in the league table of individual health insurers in France and 10 th position for collective insurance. 2 million individual health beneficiaries Covéa is already very present on the individual health insurance market. The three names MAAF, MMA and GMF insure nearly 2 million people on an individual basis. GMF, which only recently started offering individual health cover, passed the hurdle of 100,000 people protected at the end of Designed to respond subtly to market expectations, MAAF s Vivazen offer got off to a good start in 2013, with over 133,000 beneficiaries at the end of the year and picking up several distinctions including two for excellence BUSINESS REPORT 2OI3 / Covéa

23 We are in the process of being configured so as to be reactive to cope with the changes in regulations. Are you satisfied with Covéa s Health and Provident Cover business in 2013? Yes. The initial results of Covéa s Health and Provident Cover dynamic, after two years of existing in its current form, are quite satisfactory, not least thanks to the success of the Vivazen and Façonnables offers. For the development of the Group s collective activity, SMI s joining Covéa constitutes a significant advance. On the human front, efficiency and a constructive frame of mind have prevailed in the cooperation between MAAF, MMA, GMF, APGIS and SMI, in an unstable legislative environment. How do you see the future faced with the unstable market announced? 2014 will be a decisive year. There are signs that the market will see times of great instability which will affect the entire profession. The teams have displayed a great sense of cohesion and excellent responsiveness in this difficult environment. That s a good omen. Besides the development of the collective insurance offer available, we must actively prepare the arrival of the new policy known as responsible, anticipated for 1 st January The revision of our offers to bring them into line with regulations is vital. According to the content of the new regulations, the impact on our portfolios could well be very significant. On the other hand, the possibility of making offers in the area of agreements with professional bodies represents a new opportunity for MAAF and MMA over the next few years. Finally, 2014 will likewise be an important year for the public sector. It is possible that future strategic partnerships could take shape for the GMF brand. What trump cards does Covéa hold to successfully come through these different stages? Our brands and distribution networks are powerful and have a real multi-channel dimension. Within Covéa Health and Provident Cover, we have strengthened our professional skills and created synergies between the know-how of the different companies in the Group. We are thus preparing to be reactive in the face of the upcoming amendments to the regulation. With the commercial networks of the brands (MAAF, MMA and GMF), APGIS and SMI, supported by the management of the IT and marketing departments, we are all up and ready to beat these new challenges. Didier Bazzocchi, Managing Director, Health and Provident Cover Covéa

24 Santéclair, an access platform for medical care and treatment Covéa offers its members, via the Santéclair platform, a unique range of services associated with their additional health policy. Santéclair is designed to facilitate access for its clients to medical care and services through the development of care networks. Seven networks have so far been developed in the following areas: dentistry, implantology, optics, refractive surgery, audiology, osteopathy and dietetics. The main services offered by Santéclair are navigating around the care system, the analysis of quotes and estimates and the possibility for beneficiaries to get better value for money when buying optical equipment, dental implants or even when purchasing hearing aids. Santéclair had a total 6.5 million clients at the end of 2013 for a turnover of 16 million euros (ex-vat) was a year marked by a strong progression in the number of clients. It also saw the creation of the dental implant network (with around forty practitioners) the implementation of the dental estimate via the Internet ( web devis ) and the launching of the new search tool for Santéclair partners ( Géoclair ) for the platform s clients. MMA s individual health insurance scheme, with more than 837,000 beneficiaries, will be reviewed during the year to bring it into line with legislative and regulatory developments currently under way. Increase in strength towards collective insurance cover The entry in 2013 of SMI into the Group, after that of APGIS in 2012, coupled with the sustained commercial development of MAAF on this market in 2013 have contributed to restoring balance to Covéa s business in the direction of company health insurance schemes. This segment thus represents almost a third of the Group s health insurance turnover and 40% of its Health portfolio in terms of the number of persons protected. Initial results of the cooperation between APGIS and MAAF Since mid-2012, MAAF has been offering a collective insurance scheme, Les Façonnables [The Shapables], aimed at companies with a staff of less than 20. This offer, co-insured and managed by APGIS, is well positioned on the market - it has already convinced more than 3,700 companies and covers more than 20,000 beneficiaries. The MAAF-APGIS cooperation arrangement thus enjoys a strong dynamic which helps to boost the MAAF portfolio significantly among very small companies and professionals (+15.1% of very small companies and professionals in 2013). Family Accident, strategic approach Provident insurance also constitutes a catalyst for growth for Covéa saw a net progression in individual pensions business for MAAF, MMA and GMF, with 100,000 new policies compared to 2012 and a final turnover of 192 million euros, up by 7% compared to BUSINESS REPORT 2OI3 / Covéa

25 SMI, or Société Mutualiste Interprofessionnelle, is a 45 mutual insurance company designed for the pension schemes of four professional branches. It insures and manages 760,000 beneficiaries in health and pension schemes, mainly in the form of collective policies. SMI has been an affiliate of Covéa since the end of It has a staff of 161, mostly based in Paris. In 2013, SMI s turnover (including reinsurance) was 191 million euros. SMI directly manages the schemes for its 5,274 corporate members. APGIS is a Pension Fund under joint management which insures and manages statutory collective schemes signed into by companies for the benefit of their staff as well as a Health and Provident Cover scheme known as heavy (death, death annuities, incapacity and disability). APGIS is also the insurer of nine branch agreements. Affiliated to the Covéa Group since October 2011, it has a staff of 232. In 2013, its turnover reached million euros (inclusive of all taxes, gross of reinsurance and net of acceptance). It handles the insurance requirements of 25,500 companies, 390,000 dues-paying members and 709,000 protected persons. The year was marked by a strong progression in the heavy pensions business, with +33% in incapacity/ disability and +19% in death/death annuities insurance. Within the framework of their co-insurance partnership, MAAF and APGIS achieved almost 3,000 members in statutory collective health schemes for very small companies.

26 International A Group present on the international stage Via subsidiaries in which it has a majority holding or some other degree of share interest, Covéa is present in Europe and North America. Insurance policies on damages and life assurance taken out at international level henceforth represent 11.6% of turnover, up by 17% compared to 2012 and to which must be added the brokerage business in Great Britain and the Freedom to Provide Services arrangement. A successful diversification. Through its various company connections, Covéa has been present beyond the boundaries of France for over 30 years. Although the development of the Group rests essentially on its activities in France, the internationalisation of the business remains an important factor. The Group has subsidiaries in the United Kingdom, Italy, Luxembourg and the United States. It also has share interests in Spain and Canada. Covéa has over 5,000 associates abroad. Fine performance from the Life subsidiary in Italy In Italy, the Life subsidiary, Bipiemme, turns in a fine performance. The premiums recorded have advanced by close on 43%, exceeding the billion euros mark. For its part, the non-life start-up, Bipiemme Assicurazioni, continues to develop, with turnover at 13.4 million euros on the car, house and loan insurance segments. The marketing of the car offer has only just begun. Covéa Insurance celebrates its first birthday In the United Kingdom, for its first full financial year, Covéa Insurance, born from the merger in 2012 of Provident and MMA Insurance, has posted a turnover below expectations, a drop of 8.2% on last year. The British market is very aggressive with certain competitors having anticipated in their prices an improvement on car claim rates. In this context, Covéa Insurance has chosen, instead, to give precedence to maintaining its result. Moreover, it recorded a fairly strong claim rate, linked particularly to the very bad weather in Great Britain at the end of the year. The insurance firm of Swinton is pursuing its transformation plan, which consists principally of reorganising its distribution network and renewing its information system. Its turnover, near that for 2012, came to 359 million euros (1). CSE lowers its combined ratio CSE, in California, is pursuing its recovery plan launched in In one year, its combined ratio has already dropped by 4 points, to 103%, the aim being, by putting the accent on claims and general expenses, to reach 99% on a long-term basis. Its turnover of million euros is stable. Caser, in Spain, has revived with a positive result after a difficult year in Operational results remain excellent, while, taking account of the stabilisation of the Spanish banking system, the financial side is picking up too. The restructuring of the banking system has led to a significant loss of partners for Caser, and therefore a reduction in its network of distributors and its turnover. In Luxembourg, AME Life Lux, in spite of the good performance of gross income figures, recorded net negative figures due to the fears sparked off by new fiscal regulations in Belgium. Covéa also has share interests of 30% and 20% in the Quebec group La Capitale. In 2013, the Canadian group continued its development, with profitability in line with that of the market. (1) Corporate turnover BUSINESS REPORT 2OI3 / Covéa

27 COllaboration We are bringing to BPM Covéa s technical and commercial know-how in the area of the management of insurance products and services for families. The bank is bringing us a quality network and customer base. Richard Ellero, Managing Director of the Bipiemme Vita Group Subsidiaries and shareholdings at 31 december 2013 Market Distribution mode Link with Covéa Headcount UK Covéa Insurance (insurance) Swinton (brokerage) non-life brokers subsidiary 833 non-life multi-chanel subsidiary 3,992 Italy Bipiemme Vita (insurance) Bipiemme Assicurazioni (assurance) life / accident and healthcare partner bank subsidiary 72 non-life partner bank subsidiary 15 USA CSE (insurance) non-life non-exclusive agents subsidiary 154 Luxembourg AME Life Lux (insurance) life brokers and authorised agents subsidiary 24 Spain Caser (insurance) non-life / life bancassurance shareholding Canada La Capitale AG (insurance) PennCorp (insurance) non-life life / accident and healthcare brokers and affiliated agents brokers and agents shareholding shareholding

28 26 27 BUSINESS REPORT 2OI3 / Covéa

29 A permanent quest for innovation, engagement and performance

30 Covéa AIS The passion of progress Covéa AIS (Assistance - Indemnities - Services) today manages one out of five claims in France. It constitutes a powerful strike force. To maintain its advance on its competitors, it is developing an appropriate organisation and high-performance services to offer its members a level of support which goes far beyond simple compensation. It is lining up for battle to anticipate the changes of tomorrow was a year particularly marked by climatic events. Floods, snow, hail, tornadoes, and on and on - a cortege of storms hit the country which, taken on their own, were not that dramatic but, taken together, added up to something quite exceptional. A year of bad weather Twenty-one events were recorded, in other words, nearly two a month. Totally unheard of! So, Covéa recorded a significant number of MRH/Pro claims, with 140,000 additional cases opened because of the storms and estimated at over 300 million euros, in other words twice the number of the 2012 climatic incidents - the equivalent of the Klaus and Quinten storms combined. On the vehicle side, the number of people killed on the roads continued to drop (-11%) and the number of people injured was down by 6%. This drop in vehicle injury claims can be explained on the one hand by the lowering of average speed limits combined with the wider application of the law enforcement system and on the other by the drop in the number of kilometres driven due to the economic crisis and the cost of petrol; then, by the weather conditions which discourage people from actually going anywhere. The number of RC claims and damages is also down globally. Conversely, claims for broken windscreens are up. As regards thefts, they re stagnant for cars but had already been dropping these last few years as a result of the protection improvements made by car makers. Delinquency claims are moving towards MRH, since burglaries are constantly on the increase. Average costs across all segments taken together are globally slightly up. In terms of physical injuries, the increase comes essentially from serious physical injury claims at GMF. COordination Should there be a climate event, Fidélia deploys significant technical means to bring together on to one single site the vehicles of Covéa policyholders which needed expert assistance - in order to speed up administrative procedures and thus compensation. Patrick Brunaud, Head of the Automobile Technical Division at FIDELIA Assistance BUSINESS REPORT 2OI3 / Covéa

31 APJ Assistance Protection Juridique (APJ) is the legal protection insurer for MAAF and GMF members. It offers extensive ranges of products intended for private individuals and professionals. In 2013, it also concluded a distribution partnership for a legal protection policy through the Banques Populaires network. For its legal information business by telephone, in October 2013 AJP was awarded ISO 9001 certification, a real acknowledgement of the quality of its organisation, skill and the motivation of its teams. The APJ portfolio has over 2.5 million policies and almost 4 million people enjoy the benefit of cover in a group policy. The company has a staff of 245 and in 2013 it achieved a turnover of 122 million euros, an increase of 5.3%. What new types of cooperation do you envisage with the integration of the Group s legal protection companies into the activities covered by Covéa AIS? The types of cooperation promoted by the arrival of DAS and APJ within Covéa AIS will be translated into facets of progress thanks to the choice of the best practices and the advantages linked to size (negotiation with supplier networks, sharing of development costs for new tools, etc.) or the increase in the capacity for service innovations. Our ambition is quickly summed up - tomorrow is always just round the corner. What are your plans for developing the service to members even further? In 2014, we are initiating two large-scale studies on the search for new services tied in with the opportunities offered by the digital age on the one hand and the social networks on the other. Moreover, we are already working on innovative offers of services within the framework of re-using a part, repairing broken windscreens, replacing in kind vehicles which are no longer usable, help to the helpers, accompanying patients suffering from chronic illness, etc. Michel Gougnard, Managing Director of Covéa AIS Progress to always provide better satisfaction for our clients. What are the avenues of progress you wish to explore? With the development of new technologies and the increasing population of internet users, our environment is going to see great changes in years to come. The requirements and needs of our members are going to change, as well as our range of specialist skills is for us year 1 towards the 2020 and beyond. Indeed, our ambition can be summed up in just a few words - tomorrow is always just round the corner. That s why, with the 600 managers at Covéa AIS, we are in the course of identifying the main areas on which we shall be focussing our efforts to pave the way towards the 2020 horizon in terms of our service, our advice, prevention, risk selection, portfolio monitoring and subscriptions. We must get ready now and make the right choices as soon as possible about the paths we want to go down.

32 In the area of call-out, there is a 4.5% for cars and 4.6% for medical assistance. It is down by -2.4% for MRH/Santé. Ever more services In its constant quest for innovation, Covéa AIS tries to stand out from the competition by always improving the service provided to the policyholder, while at the same time working on reducing claim rate costs. In 2013, it created the breakdown network, an unprecedented solution in the insurance world. This plan allows the client, in the event of a breakdown, to entrust his vehicle to one of the 1,900 service agents recommended by his insurer for its multi-brand skills and priority access commitment. The person insured also benefits from advantageous price conditions and related services, including, amongst others, priority treatment to reduce downtime and the provision of a replacement vehicle at privileged conditions. A solution which adds to the other support measures for the policyholder involved in an accident which have been put in place these last few years, particularly the completed reconstruction for victims of a fire (or a climate event) whose house has been totally destroyed. Another illustration: the TravoDéco site dedicated to policyholders who have suffered damage and who are willing to do the work themselves as a result of water damage. DAS DAS is the legal protection company of the Covéa Group s insurance companies with intermediaries (MMA, Covéa Risks, Covéa fleet). A major French player in the market, DAS is the leader with industry professionals. Its offer meets the needs of all types of policyholders - private individuals, professionals or collective groups - in the form of either a standard or customised policy. DAS is also present on the Financial Losses market with its range of compensation guarantees. The pursuit of the strategy of refocussing on its core business Legal Protection is bearing fruit with a legal protection turnover of 87 million euros (+3.4%), thanks particularly to the mobilisation of the network of MMA agents (+6% turnover). The commercial dynamic is based also on brokerage, a logic strengthened by the synergies installed with Covéa Risks. DAS supports over 4 million people in the protection of their rights. In 2013, over 200,000 legal and practical information memos were issued and over 37,000 legal protection cases dealt with. The 2013 turnover came to million euros, a drop of 24.5% due to the combined effect of cancellations at the instigation of DAS of the Rents Outstanding portfolio (-87%) and Financial Losses policies (-22%). Over and above these figures, DAS has the advantage of forces indispensable to any success: the commitment, professionalism and expertise of its 220 associates BUSINESS REPORT 2OI3 / Covéa