Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Merger or Acquisition (February 2006)
17 slides from Credit Agricole SA's merger presentation, Feb 20, 2006
Slide 1: Acquisition of 50% and management control of the bancassurance subsidiaries of the Espírito Santo Group in Portugal
Acquisition of 50% and management control of the bancassurance subsidiaries of the Espírito Santo Group in Portugal 20 February 2006
Slide 2: Contents
Contents ● Overview and rationale of the transaction ● Overview of Tranquilidade Vida and Espírito Santo Seguros ● Financial terms of the transaction ● Appendices: ● The Portuguese insurance market
Slide 3: Overview of the transaction
Overview of the transaction(a) • Crédit Agricole S.A. (“C.A. s.a.”) acquires 50% of the capital and takes management control of the life and non-life bancassurance subsidiaries of the Espírito Santo Group in Portugal, • Tranquilidade Vida, life bancassurance company (“TV”) • Espírito Santo Seguros,
Slide 4: Restructuring of Espírito Santo Financial Group Insurance Operations
Restructuring of Espírito Santo Financial Group Insurance Operations Before After(a) 67.4% 67.4% 32.6% 42% 32.6% 42% ESFG C.A. s.a. Bespar BES ESFG C.A. s.a. Bespar BES 66.7% 33.3% 8.8% 100% 8.8% 65.5% 25% 50% 50% Partran Partran TV TV 100% 100% 40% 50% 25% TS ESS TS ESS 25% 35% 25% Traditional Banc
Slide 5: The future C.A. s.a.-BES bancassurance partnership in Portugal
The future C.A. s.a.-BES bancassurance partnership in Portugal Tranquilidade C.A. s.a. BES Seguros 50% 50% Tranquilidade Vida 50% Espírito Santo 25% 25% Seguros Life Bancassurance Non-life Bancassurance • A more integrated bancassurance group: • The manufacturer and the distributor are more directly
Slide 6: Transaction rationale for Crédit Agricole S.A.
Transaction rationale for Crédit Agricole S.A. • Reinforces the long-standing alliance between C.A. s.a. and ESFG • By strengthening the ownership links at the level of BES, 3rd Portuguese banking group, with a market share of 18% • By implementing a direct partnership in life and non-life bancassur
Slide 7: Alliance between C.A. s.a.'s expertise in integrated bancassurance and BES' distribution capabilities
Alliance between C.A. s.a.’s expertise in “integrated bancassurance” and BES’ distribution capabilities C.A. s.a.’s expertise in BES’ distribution “integrated bancassurance” capabilities • Pioneer and leader in French • 3rd banking group in Portugal bancassurance with approximately 644 branches and
Slide 8: Corporate governance principles for TV and ESS
Corporate governance principles for TV and ESS For each company: • C.A. s.a. holds a majority at the Board of Directors (5 directors proposed by C.A. s.a., 4 by BES) • The non executive Chairman is proposed by BES • Management is delegated to an Executive Commitee composed of 3 members (2 proposed b
Slide 9: Contents
Contents ● Overview and rationale of the transaction ● Overview of Tranquilidade Vida and Espírito Santo Seguros ● Financial terms of the transaction ● Appendices: ● The Portuguese insurance market
Slide 10: Tranquilidade Vida
Tranquilidade Vida Split of 2005 Key financials(a) premiums(b) by products Revenues: € 1.2 bn Traditional and Mixed Products 8.2% Pension Products Technical provisions: ~ € 6 bn 41.5% Solvency ratio: 197% Number of policies: ~1 million Capitalisation Products 50.3% Total: € 1.2 bn Tranquilidade Vida
Slide 11: Espírito Santo Seguros
Espírito Santo Seguros Key financials(a) Evolution of ESS’ premiums(b) (€ m) Revenues: € 61.8 m 61.8 Combined ratio: 94.5% 50.3 35% Solvency ratio: 214% 35% 29.4 Number of policies: > 336 000 36% 29% 37% 38% 33% 28% 29% 2001 2003 2005 Household Motor Health Espírito Santo Seguros ranks among the top
Slide 12: Contents
Contents ● Overview and rationale of the transaction ● Overview of Tranquilidade Vida and Espírito Santo Seguros ● Financial terms of the transaction ● Appendices: ● The Portuguese insurance market
Slide 13: Key financial terms of the transaction
Key financial terms of the transaction • Valuation of TV’s bancassurance operations (100%): € 900 m • Valuation of ESS (100%): € 80 m • These valuations are based on a 25-year distribution agreement between the Companies and BES. A clawback price adjustment mechanism is in place should TV and ESS fa
Slide 14: Contents
Contents ● Overview and rationale of the transaction ● Overview of Tranquilidade Vida and Espírito Santo Seguros ● Financial terms of the transaction ● Appendices: ● The Portuguese insurance market
Slide 15: The Portuguese life insurance market
The Portuguese life insurance market 2004 life premiums(a) per capita ($) Penetration • A market in excess of € 6bn Rate(b) United Kingdom 3,190 8.9% • CAGR 1998-2004: +13% vs. Ireland 2,617 5.7% +7% for France Finland 2,461 6.9% Denmark 2,310 5.1% • One of the lowest penetration Belgium 2,291 6.7%
Slide 16: The Portuguese non-life insurance market
The Portuguese non-life insurance market 2004 non-life premiums(a) per capita ($) Penetration rate(b) • A market of € 4.3 bn Netherlands 1,663 4.7% Luxembourg 1,556 2.2% • CAGR 1998-2004: +7.5% vs. Ireland 1,474 3.2% +5% for France United Kingdom 1,318 3.7% Denmark 1,310 2.9% • A low penetration rat
Slide 17: Life and non-life insurance market shares in Portugal
Life and non-life insurance market shares in Portugal 2005 market share in life insurance(a) 2005 market shares in non-life insurance(b) Fidelidade 21.5% BCP Fortis 24.1% Imperio 13.8% AXA 9.0% Tranquilidade 8.9% CGD 20.5% Allianz 7.4% Zurich 7.3% Açoreana 4.1% Tranquilidade 3.6% 17.6% Ocidental Vid
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