Capacity highCapacity of Groupama SA will be still higher

Officially, the introduction in scholarship of Groupama SA is always suspended to the achievement of one or more major acquisitions. But internally, the message destined for future minority shareholders is already well ground. The publication yesterday of the first set of half-yearly accounts of the history of the Green insurer had a small Gallop to test air in this regard.

The insurer is first in a performance of own funds to fade jealousy competition (23.8 at June 30). This has been studied for. "What characterizes Groupama SA, it is a very favourable alliance between profitability and soundness," advance Helman the step of Sécheval, Chief Financial Officer of the Green insurer. The future shareholder will benefit from the advantages of a structure shaped to the stock exchange, generating a level of net income (EUR 329 million at June 30) with just what need of own funds (4.2 billion).

"Capacity" high

"Capacity" of Groupama SA will be still higher. First, the structure has little debts (26 ratio of debt to the end of June). Most importantly, the Group has substantial surplus resources housed in regional banks. Highly solvent, they will keep the majority of the capital of the rated entity. "Regional banks have in the past already been put to contribution funding 46 of the acquisition of the GAN in 1998", recalls Helman the step of Sécheval. If need be, the social capital of Groupama SA may also be doubled, by simple decision of the Board of Directors ("Les Echos" from June 29).

With Groupama, the investor has in addition the certainty of getting off few or more cycles of insurance. "Year after year, the cruise ship Groupama recorded premiums of 3 to 6 growth," said Chief Financial Officer. He must do better than the 2.7 growth registered in the first half. "Without losing its regularity, the Group has the ability to be more responsive, more favourably seize market opportunities," he assured. In areas such as personal health ( 8 in urban areas), the guarantee of the accidents of life ( 13), the legal protection ( 9.5) or the comprehensive climate ( 10), the insurer is already faster than the market.

"Improve our efficiency.

Finally, even if Groupama SA continues to improve its operating income ( 56.2 to EUR 198 million on June 30), it still has a margin of progression. Damages, the ratio of combined (grim and fresh reported premiums) is evolving favourably and reaches 100.5 in the first half. But it suffers from comparison with the competition, which combined ratios currently revolve around 96. "We have the means to improve our efficiency to reduce our operating costs, and we tackle the subject both at the level of the GAN and Groupama", recognizes Helman the step of Sécheval.

The insurer has to a relatively unusual profile on the French market, life contributing much less results than branch damage (26 and 72 respectively, before) expenses of head office. But Groupama knows that it can take advantage of a more favourable dynamics. Its distribution networks have already started to limit their tropism for the products in euros. The result is a growth of 131 in the first half on units of account.