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Mondial Assistance Annual Report 2008


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  • 1. Annual report 2008
  • 2. Brand values Caring: a passion for people We are people who care about people. This is why the rst thing on our minds every day is your well-being. And to make sure we are getting it right, we listen to you rst to understand what you need. This open dialogue is second nature to us. Why? Simply because we really do care. An integral part of our job is acting on our passion for people. At the end of the day, it’s about helping you and making you feel special. Our passion makes the difference. Connected: a global community We are as diverse and widespread as you are. In fact, our strength lies in our diversity – the essence of our global community. Have you ever wondered why you can reach us and rely on us anytime, anywhere? It’s simple. Because we are everywhere at all times. Our vast human and technological connections and resources make this possible. We use our global resources to lend a helping hand, wherever you may be. Our global reach with our local human touch. Proactive: going beyond expectations We’re never satis ed to just wait for your call. Each of you and your customers is different. For us, part of helping you is anticipating what you need before you call; and offering solutions that exceed your expectations after you call. Solutions that surprise, innovate, and reassure above and beyond the call of duty. When we put our proactivity to work, what we’re really doing is working to improve the way we serve you, continuously. Creating solutions that innovate and surprise, day in, day out. Professional: expertise at your service We do not keep our wealth of skills and expertise for ourselves but make them available to you, when, where and how you need them. Whether you or your customers need the full story, or just the answer, our years of professionalism are the foundation of all our business relationships. We have built a reputation of excellence, and are proud that you are a part of it. Our guarantee of excellence at your service. Trust: to earn it everyday Trust has to be earned. We know that. Whether it’s towards a relative, a friend or a customer, we can win your trust only one way – by showing you that we are dedicated, honest and reliable every single day. Our goal is to make sure that each one of your lives is safer, simpler and more secure. To do this, earning your trust comes rst. Trust truly is at the heart of what we do. The heart of who we are.
  • 3. Contents A history of helping people and pro le 01 Editorial 02 Key gures 04 Lines of business 06 Travel 08 Auto 10 Health & Lifecare 12 Property & others 14 International presence 16 Asia-Paci c 20 Americas 21 Europe, Middle East and Africa 22 Financial results 26 Review of Operations for the year 2008 28 Financial statements of Mondial Assistance Group 30 Consolidated Balance Sheet 32 Cash Flow Statement 34 Notes to the Consolidated statements 35 Report of the Group auditors 43 Report of the Statutory auditor 46 Financial statements of Mondial Assistance AG 44 Business years 2007-2008 47 Worldwide addresses 48
  • 4. Group history A history of helping people In 1950 in Switzerland, when people began traveling more, a team of forward thinking business pioneers created ELVIA Travel Insurance. This year marked the beginning of our story in helping people. Twenty-four years later in 1974, SACNAS-Mondial Assistance was founded in France; and our helping reached a new level. The creation of SACNAS-Mondial Assistance paralleled the development of the assistance busi- ness, which, in addition to travel insurance, included roadside, medical and repatriation assistance. In 1979, AGF became a shareholder of Mondial Assistance. During the 80’s and 90’s, still as two separate entities, (Elvia and Mondial Assistance), we accompanied our corporate clients through their own changes. As they grew geographically, so did we, developing first in Europe and then gradually throughout the rest of the world. In 1995, Elvia joined German’s Allianz Group. In 2000 Elvia Travel Insurance and SACNAS-Mondial Assistance successfully merged and created our group as we know it today. With nearly 80 years of combined experience and know-how, we became the leading world player in assistance, travel insurance and customer services. We acquired World Access in the United States in April 2000 and Worldcare in Australia a year later. In 2006, we launched a new Brand identity and values world- wide. This was a long-term strategic step for us. It showed our dedication to you and your well-being, and reflected our rich, multi-cultural diversity. In 2007 we hit a landmark year. On January 1st, our four French companies – Mondial Assistance, France Secours, Elvia and SSC – merged to form Mondial Assistance, a unique entity and brand. In doing so, we confirmed and solidified our position in France. And true to our goal to grow internationally, we ope- ned offices in Mexico and India. We also acquired Medvantis, a medical call-centre in Switzerland. We registered our Russian office in 2007 and began operations there on March 1st, 2008. Today, we operate under a unique brand name and speak to you with a single voice. We are present on all 5 continents and feel right at home in the 28 different countries where we are pre- sent. Wherever you go, we are always close by, looking out for you. We are here to make sure you have our help, anytime, anywhere. You – our customers, stakeholders and staff members – were, are and always will be what our business is all about. ACIF * * A.C.I.F.: Allianz 50% 50% Compagnia Italiana Finanziamenti S.p.A.
  • 5. Profile Mondial Assistance, worldwide leader in assistance services and travel insurance 40 million calls 13.5 handled million cases handled 3,500 people assisted every hour Mondial Assistance Annual Report 2008 1
  • 6. Editorial Breaking from the string of bad news, we are proud to present our 2008 results. They aptly reflect the energy and commitment that the 9,817 talented people who make up our Group demonstrated this past year. Together, they embody our business mission and passion - helping people, anywhere, anytime. Our turnover was 1.597 billion euros, up 6%, and our net return was 62.6 million euros, +9.6% over 2007 ! These results clearly reinforce our leading world position in assistance and travel insurance. 2008: Growth in a troubled environment Despite the current economic environment, the tourism market continued to grow slightly, but then slowed due to the volatile world economy. The automotive industry took a real beating from the compounded effects of the crisis. The financial sector, also seriously shaken, lost some important players, while a new financial landscape, though still in flux, begins to emerge. In this complex, unstable context, competition remains fierce on the markets and continents where we are present. Nevertheless we actively pursued growth in all regions where we currently operate, often despite unfavorable exchange rates. Our efforts paid off because 2008 proved to be another strong growth year, + 6% with an operating profit of 106.1 millions euros. Our excellent profitability, with a combined ratio of 94.9%, is the result of our strict, long-term cost control policy. Innovation and sharing best practices – at the heart of our success Our four business lines all contributed to sales growth. Tourism activities account for 48% of Group turnover, nearly 50% of which is generated by e-tourism. The automotive business still represents 39% of overall sales, and today, health & lifecare services constitute the Group’s third mainstay for development. Geographic expansion leads to more balanced international sales We registered our strongest geographic expansion in the Americas (Canada and Brazil) and the Asia Pacific (Japan and Australia). Both regions, which represent 19% and 9.5% respectively, contribute more and more to Group turnover. In Europe, 71.5% of Group sales, Italy, Belgium, Spain and France registered the strongest growth. Five countries from three continents (France, USA, Italy, Australia and UK) together represent 57% of Group turnover. This weight illustrates our objective to achieve more balanced, international sales. A new subsidiary joins the Mondial Assistance family We continued to expand in Eastern Europe in 2008 and opened a subsidiary in Moscow, confirming our investment strategy in BRIC countries (Brazil, Russia, India and China). This geographic expansion strengthens our relations with global customers and demonstrates our firm commitment to partners who wish to offer innovative, top quality services in every corner of the world. 2009: What lies ahead Given the international context, we expect 2009 to be a difficult year. However, when signs of the crisis first appeared, we quickly adjus- ted our strategy to limit costs and help absorb the impact. Today, our policy to balance risks, geographically and in terms of products and distribution channels, is undeniably one of the Group’s solidifying factors as it allows us to absorb some of the negative effects of the crisis. While we remain focused on our immediate future, we are also preparing our long-term growth comeback. By launching stra- tegic initiatives outlined in our ambitious “2015 plan”, we will be able to double our turnover. In 2009 we will further develop synergies 2 Mondial Assistance Annual Report 2008
  • 7. Mondial Assistance Executive Committee President Rémi Grenier Members Jonathan Ansell Ulrich Delius Didier Lebret Ida Luka-Lognoné Laurence Maurice Mondial Assistance AG Board of Directors Chairman: Jean-Philippe Thierry Vice-President: Detlev Bremkamp Vice-President Delegate: François Thomazeau Members: Dr Manfred Knof Dr Walter Gutberlet Share capital: CHF 40,000,000 Year of legal foundation: 1999 “In 2008, our 9,817 colleagues, the talented people who make up our Group, handled more than 13.5 million cases around the world” across the Group, and support best practices and knowledge sharing. It’s essential that we take full advantage of our innovations, experience and rich resources to strengthen our competitive edge in our traditional business lines. We will look to leverage opportunities in counter-cycle activities, such as healthcare, in innovative products like Consumer Specialty Insurance, and in technology. And we will seize all opportunities in new distribution channels. Wallisellen and Paris, April 24, 2008 Jean-Philippe Thierry Rémi Grenier Chairman of the board of directors of Mondial Assistance AG President of the Mondial Assistance Executive Committee Chairman and Chief Executive Officer of AGF Member of the Board of Management of Allianz SE Mondial Assistance Annual Report 2008 3
  • 8. Key figures 2008 in gures Turnover (in million euros) 2008 1,597 2007 1,508 Turnover per zone 2006 1,344 19% Americas 9.5% Asia Paci c 71.5% EMEA Net pro t (in million euros) 2008 62.6 2007 57.1 Turnover per LOB 2006 55.9 48% Travel 5% Property & others 39% Auto Combined ratio (in points) 8% Health & Lifecare 2008 94.9 2007 95.1 Staff per zone 2006 95.2 25% Americas 14% Asia Paci c 61% EMEA Total staff (number of people) 2008 9,817 2007 9,356 2006 8,550 4 Mondial Assistance Annual Report 2008
  • 9. The Mondial Assistance family grows! • 1st year completed in Hungary • Ready to expand in Romania • New subsidiary opens in Russia Unique brand name • We implemented a Chinese tag-line reflecting our mission and brand promise. 2008 rewards for innovation and dedication! • The Netherlands, the United States • China: Best China Call Center and Canada adopted the new brand • USA: Global Call Center of the Year name. They now operate under a • France: Purchasing Decision Award unique brand and speak to you with • Japan: 3-star Call Center a single voice all around the world. • Belgium: Best Assistance Product • We launched our new brand • Germany: Best in class for Travel Insurance positioning successfully across the Group. 2008 milestones Mondial Assistance Annual Report 2008 5
  • 10. Lines of business 6 Mondial Assistance Annual Report 2008
  • 11. intervention 1 every 2 seconds 250million beneficiaries 24/7 365 days per year Mondial Assistance Annual Report 2008 7
  • 12. Lines of business Travel Our historic travel business just keeps booming. We have been helping people and offering travel insurance solutions since the 1950s. Our historic line of business is still growing today and accounts for almost half of our Group turnover. The international tourism industry has grown significantly since 2005. In fact this trend continued through 2008 when the industry registered +2% growth. e-commerce redesigns Our cover is always the travel business personalised e-commerce has been massively contri- Helping and working closely with you, buting to this development. Many new players have revolutionized the travel industry in the past few years. Low cost carriers have challenged the airline our client partners, whether you are travel agents, brokers, tour operators or online travel specialists, is what we do best. Our aim is to design innova- 48% of Mondial Assistance industry. Online travel agencies have tive, customised, surprising solutions turnover re-invented the way to buy travel. We for you. expect some consolidation in this frag- Some but not all of these tailored mented market; in fact travel industry solutions include insurance and pro- players think this will be their main chal- tection against lost or stolen luggage, • leisure and sports solutions for specific lenge over the next few years. So, when repatriation due to illness, medical activities such as skiing, golf…; we think of this market change, we see and hospital expense coverage when • holiday accommodation solutions; the opportunity to keep growing, and abroad, reimbursed fares when you or • Schengen zone solutions; we’ll rely on our solid position to achieve your customers must cancel a trip due • globe-trotter solutions. continued growth. to unforeseen events, and vehicle repair For the second consecutive year in in case of a breakdown. Medical excellence – the mark the United States, online sales in 2008 We offer solutions that you can rely on of our commitment exceeded offline sales. Today, all players 24/7. Our goal is to make sure you have In 2008, as in previous years, we carried considered, e-commerce represents 35% our help whoever you are, wherever out more than 670,000 medical assis- of the world’s travel market. Compared you’re from and wherever you’re going. tance and repatriation interventions for to this benchmark, we So, rest assured that you can travel you and your customers. How did we performed extremely worry-free and receive exactly the travel do this? Thanks to our multi-lingual, tra- well, and reported on- services you expect: vel and medical assistance specialists line sales representing +2.8% • solutions for business travellers; who work around the clock, around the more than 50% of our in turnover • assistance solutions for holidays world. You rely on us, but who do we global travel turnover. abroad; rely on? On top-quality, certified service 8 Mondial Assistance Annual Report 2008
  • 13. providers in every corner of the globe, while abroad. Each database-listed and 180 international correspondents. structure receives an annual evaluation A solid Our medical team helps you in more visit. In 2008, the database cited 1,287 international ways than one. Comprised of doc- hospitals in 458 cities in 122 countries. team to tors with long-standing international Our medical evaluation team regularly serve you experience, they continually evaluate adds new structures to the database. hospitals and clinics in countries with It also evaluates airport medical structures We should now tell you that we’ve set up an international heavy, widespread tourism, and where to assist airline companies in case of an travel sales team whose job is the level of medical coverage is weak or aircraft diversion. This program, named to respond to our international inconsistent. Their aim: to optimize your «In-flight Medical Support», kicked off in partners’ demands for online solutions. And you should know healthcare and whatever treatment you 2008. We now have 192 evaluated air- that this team has an essential may need with a database built from ports in our worldwide database. mission: to co-ordinate local first-hand visits. This database provi- There are only a few of us on the inter- business requirements in line with our partners’ international des our 500 doctors and medical staff national travel market who own such a strategies to sell and implement with critical information (quality of care, database and offer these services. So, travel insurance and assistance hygiene, equipment, pathologies treated, deprive yourself no longer and simply hop in several countries via a unique platform. etc.) about the establishments where onboard! p 40 e-commerce correspondents patients are likely to be hospitalised throughout the world; p local client management with a global contract: «Glocal» e-commerce skills at a local Innovation on the online business: level; Travel Insurance 2.0 p secured web services with the exclusive and innovative «e-MAGIN» platform. In 2008, we launched Travel Insurance 2.0. This is a real-time, web-services software developed in-house. It lets us profile your final customers and then offer them specific, What you get is a wealth of tailor-made products that fit their needs. In doing so, we’re meeting your expectations international experience and better. And in doing that, you can better serve your customers. Another advantage: expertise creating services that conversion rates (ratio number of policies sold/trip sold) increase and revenues are are perfectly adapted to your maximised. We have successfully implemented this new tool in the USA with major local needs. partners. We are planning to deploy it in Europe in 2009. Mondial Assistance Annual Report 2008 9
  • 14. Lines of business Automotive We’re always a step ahead of your expectations. Since 1974, we’ve helped you help your customers with a full range of roadside assistance solutions. With years of expertise under our belt, we do our best to anticipate your every need, and keep perfecting our services so they’re exactly right, every time. Our help is worldwide. We now offer roadside assistance in more than 50 countries. We are known as an industry leader who “repairs” both customers and their immobilised vehicles. And we’re proud of this. A look at the global to build our international contract portfolio Our offer goes way beyond environment in Europe with auto and insurer partners roadside assistance 2008. What a year! Relative stability, but and consolidated our Flexibility best describes our offer. Each growing unease in the first six months long, successful rela- of you is different, and our offer can be when financial sector concerns mounted with soaring fuel prices. +8.1% tionship with BMW. We also extended our easily adapted to your differences. We have a lot of experience setting up dedi- in turnover Then the fury of the global financial cri- support to Volvo and cated customer platforms. You train sis hit the entire auto industry. New car Toyota in Europe. our staff and then they operate your sales in Europe fell by 7.8% in 2008 and by 19.3% in Q4. US and European demand dropped, prompting a drama- tic slowdown in Asia. Gloomy forecasts Knowledge sharing works were announced for 2009. While a swift recovery is unlikely, we must meet the • Res@car services: In real • SMS Communication on With this, you can quickly market challenge. time, our BUs can check ETA: As we all know, assess customer treatment and book a rental car via waiting 5 minutes for and send BUs remarks We will continue to provide competiti- the Internet. This saves assistance can feel like and goodwill requests. vely-priced, quality services with clear precious time all around. 1 hour. With SMS We want you to have added value. More than ever, we will Communication, you the best customer • E-Mission through MIRA receive real-time satisfaction ratings support you with our innovation and (Golden Argus Award progress reports about possible, and your 2007 – Technology creativity. Innovation): Automatic your assistance case – Extranet portal can help who will come and when you get them. assistance case dispatch will they be there! Strong, steady via GPS tracking to • E-Invoicing and E-Billing towers. The result: • Website communication: for our providers and geographical expansion less reliance on human You can now view your partners. This saves In 2008, we entered the automotive intervention, better assistance accounts in real on administration costs, market in Russia, and completed our breakdown response time. How? On a dedicated reduces billing errors time and deploying Extranet site. The site and ensures our supply BRIC strategy by strengthening our local the right resource, provides information on chain is paid accurately presence in key markets. We continued first time. your assistance cases. and swiftly. 10 Mondial Assistance Annual Report 2008
  • 15. platforms. It goes without saying that we opportunities car owners have with their help you out with more than just road- auto brands: purchase, check-up, MOT side assistance. Whether you’re a car test, breakdown, etc. manufacturer, or a leasing, insurance or car fleet company – here are just a few of our flexible solutions: • Roadside assistance: repair and towing With ICCM, we can install a range of integrated services – new vehicle delivery time, complete maintenance management, and proactive claims 39% of Mondial Assistance for broken down/immobilised vehicles; management. turnover • Accident management: towing, repla- This way, we help increase sales for the cement vehicle, car repair ; brand and reinforce customer loyalty. • Used car and extended warranty ; • Service program management ; • Telematics: GMS localisation, post- theft notification & tracking, navigation, Telematics remote door unlock, remote controlled breakdown diagnosis, concierge servi- For the last ten years we have been one of the major providers of location-based services for ces (best routes, weather, traffic, legal our automotive partners. In 2000 we pioneered with Volvo the first Pan-European Telematics program. In 2008 we launched several programs with manufacturers and Telematic Service assistance…); providers. Our innovations include the remote diagnosis “B” (Breakdown) call for France, and • Customer Relationship Management: “pay as you drive” program in Italy. telemarketing, customer surveys, loyalty programs, etc. The Operations Based Automotive Technician (OBAT) Integrated Customer Contact Management (ICCM) The OBAT is one of our very specialised professions. These experts repair breakdowns ICCM is a new customer loyalty service “long distance”. We don’t want to ask you to wait by the roadside during a repair if the repair can be done more simply. Over the phone, the technician advises the driver what to do; for our auto clients. Here’s the idea: he coordinates garage repairs and even intervenes on site on behalf of the manufacturer. We’ve identified a number of contact All our OBATs have technical experience working for major car manufacturers. Mondial Assistance Annual Report 2008 11
  • 16. Lines of business Health & Lifecare We care about your health. And your life. A few years ago, we launched Health and Lifecare Assistance, our 3rd business line. It has grown ever since its creation. Healthcare Assistance focuses specifically on your health. It offers more specialised services that provide information, comfort, support and coordination. Lifecare Assistance focuses on your daily well-being - meeting your personal needs at home or work. A dynamic year Our offer in a nutshell. We have for a healthy sector the right care for everyone Around the world populations are get- Healthcare ting older and becoming increasingly dependent. This global trend will fuel our future growth in the heath sector. As in previous years, we continue to focus on • Dependency: These are short or long-term services to help you reco- ver if you are temporarily dependent, or stay at home if you are permanently 8% of Mondial Assistance “dependency” and on our world’s ageing so. These services are mostly for those turnover population. If you are an elderly person, with serious health issues and depen- chances are you want to stay in your dent seniors. But we’re also thinking home for as long as possible. If you are a about your supporting relatives and supporting family member, chances are have assistance for them too! you are looking for a solution that makes • Personal Response Services. We assistance and travel insurance for financial and logistical sense. And you know how important it is to be able students and employees because we want your relatives to be safe and com- to reach someone immediately when know that the unexpected can happen fortable in their home. you’re not feeling well. So we offer anywhere. We offer Impatriate cove- We are also tuned in to a younger popu- state-of-the-art technological devices rage in your destination country, mostly lation with entirely different needs. In fact, that monitor your home and facilitate as a condition for granting a visa. our Impatriate Services also enjoyed communication, location and trigge- • Disease Management and Patient steady growth in 2008. This was espe- ring alarms. These services range from Support: If you suffer from a chronic cially true in Australia tele-assistance to tele-medecine. What disease, an impairment or an abnormal where we are market you must know is that even if you feel functioning, then you may fully benefit leader, mostly due to our partnering activities +7.1% vulnerable, we’re watching over and caring for you 24/7. from these assistance services. They also target consumers of prescription in turnover with local universities • Expatriates / Impatriates: We provide drugs. For the best results, we require and schools. semi-permanent or long-term medical active participation on your part. 12 Mondial Assistance Annual Report 2008
  • 17. • … and also Medical counselling, Third Party Health Administration, Partnerships for Lifecare services Rehabilitation Management, Prevention, Our partnership with a major respect lifestyle attitudes that will Second Medical Opinion, etc. French bank enhances Lifecare optimize brain ageing. services The second program, for 65-75 year Lifecare We have built a strategic partnership in olds, is in the form of a special kit to France with one of the country’s largest measure the risk of Alzheimer’s. The • Daily life services: We help you get banks to enhance Lifecare services for customer’s own doctor, who first is through everyday life (babysitting, clea- its customers and networks. trained by one of our professional ning, gardening etc.). As a joint venture, we have created a nurses, administers the test. A positive range of dedicated Lifecare services result does not mean you suffer from • Employment Assistance: Do you Alzheimer’s. It simply indicates that for people of all ages to help make need help finding a first job, or getting a their lives simpler, safer and more you need to follow it up with early new one? Do you plan to retire? Do you secure. treatment should the disease appear. Partnering with telecom company Early treatment can give you an extra need career assessment advice or just 18-24 months of normal functioning. makes cell phone tele-assistance an understanding ear? Our professional a reality Teaming up with a world and retirement advisors are on hand to Our global partnership with one of healthcare leader give you all the support you need. France’s leading telecom companies In 2008 we signed a European now enables tele-assistance via your agreement with a 120 year-old world • Bereavement and Funeral cell phone. leader in healthcare, a household Assistance. Cell phones are equipped with a “panic name in most parts of the world. • Retirement Assistance. button”. By pressing it, customers Our joint program provides assistance come into immediate contact with one to those of you with severe psoriasis. of our emergency centers. Our center After you contact one of our platforms, assesses the situation and organizes our healthcare professional receives appropriate assistance. a contact report. With this, he/she can Working with an insurer to enhance fully coordinate follow-up actions for awareness of Alzheimer’s this healthcare company’s innovative In collaboration with a leading French treatment. The program is to help Medical University, we have developed professionals monitor, educate and two Alzheimer programs. assist you in using the treatment The first helps increase disease properly. awareness and literacy. Designed for insurer’s customers between 55 and 65 years old, it helps them adopt and Mondial Assistance Annual Report 2008 13
  • 18. Lines of business Property & others Getting personal: Your property is our concern. Property “breakdown”. You all know what this means – a broken water pipe, a faulty electrical system, a branch that falls and damages the roof. Some of you may have even experienced natural catastrophes. Whatever your business, whoever your customers, we’re here to help you help them if adversity strikes. Property Assistance – two small for your credit cards and cell phones, words for a great big offer. From a leaky CRM programs, concierge services faucet to a flooded community, we have a flexible, customized solution to meet your needs. 24/7. We also offer tele- security home and office surveillance, and round-the-clock information call centers for public inquiries. For us, it’s all about getting closer to you to take better care of you and your 5% of Mondial Assistance protection services and warranties belongings. turnover +18.7% in turnover Keeping your children safe Our risk assessment service provides parents and care-givers with valuable information about how to keep kids safe and prevent unnecessary injuries from happening at home. Event Cancellation Property assessment We send a qualified provider to your home to perform a domestic risk How many of you have bought tickets for something - and missed it assessment examination and make necessary recommendations. because work, family obligations, health problems or transportation Our aim is that you have a totally child-friendly home. woes prevented you from going? To find out exactly how you feel about this problem, we conducted a survey. Switch/outlet inspection The provider inspects all electrical switches and outlets for shock The majority said you wanted to be reimbursed if an unforeseen potential and installs 10 childproof outlet covers. incident occurred, and 73% expected the insurance cost to be 5% of the ticket cost. Well, we have good news! Rearranging furniture Our event ticket insurance ensures you against the cost of your ticket Our provider may rearrange your furniture to reduce potential risks. plus any associated costs, such as shipping, should you miss an Recommendation booklet event. And it costs 5% of the overall ticket! A hands-on booklet explains how to prevent accidents (from breaking Let’s just say that we’ve tried to think of everything because bones to ingesting toxic substances) and build an emergency first aid we care and want to make life’s occasional upsets easier to bear. kit, and provides a vaccination timetable. 14 Mondial Assistance Annual Report 2008
  • 19. “Helping people, anytime, anywhere for a simpler, safer and more secure life” Mondial Assistance Annual Report 2008 15
  • 20. International presence 16 Mondial Assistance Annual Report 2008
  • 21. 9,817 staff members Business units in 28 countries 40 languages Mondial Assistance Annual Report 2008 17
  • 22. International presence • 24-hour availability • Best price/quality ratio Our “provider” selection • Official credentials Americas criteria ensures you • Cashless access to services always get the best: • Guarantee of appropriate Brazil and well maintained equipment Canada Mexico USA We cover the world A worldwide network that’s here to help you ! Our international network: competent and complete. The promise we make is that we’re here advisors, employment and retirement to help, wherever you or your customers counsellors to social service workers, happen to be. This is why we work with our network of specialists assists you more than 400,000 highly qualified and your customers with every need, any service and assistance providers and time, anywhere. We have an international 180 correspondents worldwide. dedicated team set up in Paris at Group From transport technicians to medi- headquarters that selects, manages and cal experts, home repairmen to legal controls our network of providers. 18 Mondial Assistance Annual Report 2008
  • 23. Countries with Europe, Middle East & Africa Asia, Pacific Group offices (Business units and commercial offices) Austria Bosnia/Herzegovina Australia Countries with a Belgium Bulgaria China commercial Group Czech Republic India activity Romania France Serbia/Montenegro Japan Our Special partner Germany Croatia Singapore Greece Slovenia Thailand Hungary Baltic Countries Ireland Denmark Italy Finland Taiwan Poland Lebanon South Korea Portugal Norway Malaysia Reunion Island Sweden New Zealand Russia Ukraine Spain Uzbekistan Switzerland Moldova The Netherlands Turkey United Kingdom Morocco Mondial Assistance Annual Report 2008 19
  • 24. International presence Asia-Paci c With modest growth (+7.9%) in 2008, we fell slightly short of targets. But with strong contributions from Australia and Japan, our profitability was up (+49.3%) over the same period in 2007. Signs of commercial slowdown appeared in Q3 when our main auto and travel partners saw demand fall. The slowdown spanned all regions, even those that had been enjoying double-digit growth. Australia: Strengthening India: Year one operations market positions successful Our Australian business enjoyed +14% During our first year in India we focused 9.5% growth, and reinforced its lead position in on developing roadside assistance for of Group turnover core markets – travel insurance, automo- the auto industry. We signed contracts tive assistance, overseas student health with manufacturers, leasing and insu- insurance and international medical assis- rance companies. Today we are the tance. All of these, plus e-travel insurance, sector’s market leader. We also launched contributed to growth. We improved our CRM and claims notification services operating profit (+52%) by adopting lower, and began to pave the way for travel Singapore & South East Asia: cost-base best practices in each respec- insurance in 2009. An added bonus was Increased dynamics in travel tive market. A dedicated team focused recognition for our quality services in a insurance on growth through innovation, notably on very challenging market. In Singapore, our regional hub, we conti- developing customer value. nued to develop e-commerce travel Japan: Customers pleased insurance, and successfully launched China: Reaching out to the auto with improved service delivery it in Malaysia. We also concluded travel and financial industries 2008 was an excellent year for Millea insurance programs for hotel-only boo- We launched several new car manufac- Mondial. Despite the difficult economic king portals. Online booking agents in turer programs in 2008 and continued to context, sales revenues climbed 27% Singapore can now get ticket protection report strong growth in roadside assis- and we exceeded profit targets. Most insurance. tance. Our Chinese BU also focused growth came from traditional roadside on the financial sector. Today, we count assistance services. We also launched Thailand: profit steady despite several leading Chinese financial institu- innovative pet insurance, automation difficult times tions among our partners. Changes in projects and impro- 2008 was a difficult year for Thailand. travel insurance regulations early in the ved processes. The ongoing political crisis and civil year adversely affected our bottom and Today we offer more unrest at airports impacted our turno- top line travel insurance results. +7.9% streamlined, afforda- ver. However, we still delivered a healthy in turnover ble customer service profit. How? By fiercely implementing delivery. robust cost containment policies! 20 Mondial Assistance Annual Report 2008
  • 25. Americas We had a record year in the Americas zone. Revenue growth was the highest in the Group and online travel insurance defied the global recession, meeting revenue and profitability goals. Our teams from the US and Brazil introduced a range of innovative products and technologies which produced exceptional results. And 2008 was a transition year in Canada, while Mexico continued to build its capabilities. Brazil : A record year off, helping to improve our bottom line We are US market leader in online travel across the board result and position us to move comforta- insurance and event ticket insurance. Our Brazilian business unit performed bly forward. We also greatly strengthened Despite the economic downturn, our extremely well, buoyed by profitable internal corporate governance. revenue grew by nearly 20% for the growth and diversification. We strengthe- fourth consecutive year. We continued ned online partnerships with travel Mexico: to lead the way in credit card enhan- agencies and airline carriers and promo- Expanding ted our own travel website. We signed 19% network helps cements and out-of-country health services, and also launched many inno- several new partners in our traditional of Group new clients turnover vations. These include a new, patented business lines, solidifying our lead posi- Operations grew “intelligent” technology that offers per- tion. We also successfully launched a steadily in 2008 in sonalized products to customers in an win-win solution integrating roadside our recently ope- online environment. assistance with comprehensive CRM ned Mexican business unit. We now services. offer roadside, home, medical, legal and In 2008, our customer service center travel assistance in Mexico to a wide received the coveted “Global Call Center Canada: variety of clients including the automo- of the Year” award. Employees in the US Improved tive, travel and financial industries. We also led the group with the highest score +18.6% governance in a also strengthened our offer with a 24/7 for job satisfaction. in turnover pivotal year international platform, supported by a We indeed had a pivo- growing local network of providers. tal year in Canada in year-over-year performance, employee USA: Double-digit growth for engagement and innovation. We conso- fourth consecutive year lidated our lead position in online travel Our American business had another insurance by winning new customers and successful and record year. Impressive offering new products. We strengthened growth, customer satisfaction and innova- and built key strategic partnerships in tion were keys to success. Our American our distribution and service networks. business unit is the second largest in the And our cost containment initiative paid group, and the largest in travel insurance. Mondial Assistance Annual Report 2008 21
  • 26. International presence Europe, Middle East and Africa The EMEA zone is still our main contributor. It generated 71.6% of global turnover in 2008. Our e-commerce sales continued to boom in the travel segment. And because we are always looking for better ways to help you, we continued to innovate. We acquired and launched new services in domestic healthcare, and introduced online business models in many countries. Austria & SEE: New Products established contacts with travel agents Czech & Slovak Republics: and an eye to expand and tour operators. We’ve completed a Our 10th anniversary Despite the difficult market and economy, home web page, installed an electronic Our business unit in Prague celebrated we enjoyed moderate +4% growth in booking system and developed tailored its 10-year anniversary by successfully the traditional travel business in Austria. travel products. transferring its entire business activity The new premium Comprehensive pro- to our new Mondial Assistance brand. duct launched in January 2008 partially Belgium: Creativity for growth We continued to actively develop and contributed to this. December 2008 Our Belgian business unit showed lea- improve our vehicle, travel and domes- marked the end of our first full and satis- dership and product creativity once tic assistance and insurance offers. The factory business year in Hungary where again by winning the «Best Assistance result: we considerably grew our client 50% of sales came from our traditional Product» award given by a jury of non- portfolio! business lines, and 50% from e-com- life insurance experts. Another triumph We continued to work closely with merce travel insurance. We succeeded – we ran an innovative, award-winning Allianz-Slovenska Poistovna, the lea- in winning key accounts in the travel communication campaign! Our strong ding Slovak insurer, and expanded our (including air lines) and automotive sec- relations with you, our travel agent and collaboration in vehicle assistance, tra- tors. Now our Austrian insurance broker partners, were rein- vel insurance and reinsurance. We also business unit is ready forced by several successful network worked together to penetrate the home to take a further step events. We also concluded new agree- assistance and healthcare markets. into the SEE and +4.1% ments for healthcare services, which In 2008 our relations with our Slovak in turnover enter the Romanian helped increase our profitable turnover business partners were dominated by market. So far, we’ve by +14%. the country’s entry to the Euro zone. 22 Mondial Assistance Annual Report 2008
  • 27. We launched some major IT projects, created a dedicated business line, laun- innovative products for students. In line designed to help you - customers and ched the “servissimes” platform with one with current trends, we continued to shift staff – and make your lives easier! These of France’s biggest banks, and imple- our business model from offline to online. include a new, locally designed e-com mented two new electronic devices for The most important change for us in sales tool, a new management informa- healthcare and lifecare providers. We’re 2008 was our name transition to the tion system, a data warehouse and web recognized as a pioneer in tele-assis- Mondial Assistance brand. access to assistance files. Our reward tance, and specialized in helping the Our assistance entity continued to for our positive results? We’ll be moving elderly population. This expertise led co-develop with Allianz new domestic to new offices in Prague in 2009! to us receiving the 2008 «Recognition healthcare products for the senior market. for lifecare services» award from the And to meet your growing expectations, France: Market leader National Center for Lifecare Services. we also pursued efforts to improve quality for the first time! But we didn’t stop here. For the first and productivity standards for our road- Our French business unit enjoyed time in France, we supervised a “depen- side assistance activities. +7,8% growth in 2008. And for the dency” questionnaire for people over 70; first time in our history, we are now lea- we also developed new services to help Greece: New legislation der on the French assistance market! healthcare assistants. Today we are and popular B2C solutions So, where did we grow commercially? proud of our wide range of dependency Greek roadside assistance legislation In the bank-insurance sector particu- assistance solutions. changed a lot in 2008. At our local busi- larly with home assistance services. We ness unit, we aligned ourselves with the also signed many new contracts with Germany: Travel and new laws, which are much more deman- mutual insurance companies, renewed Assistance sales consolidation ding, and also met our financial targets! agreements with major auto manufac- In 2008, we successfully strengthened We increased turnover by +6,2% over turers, and signed new contracts with and streamlined the organization of 2007 and achieved a combined ratio of car rental companies. Our e-travel busi- our German business units. How? By less than 95%. Where did we focus to ness continued to grow. And so did our consolidating all insurance carriers and increase sales and profitability? Mostly penetration into several new segments: setting up a new structure for all assis- on B2B2C and roadside assistance business travel, hotel bookings, and tance activities. These changes in 2008 renewal schemes for importers. We events ticketing. Enhanced guarantees helped bring about remarkable success also launched, and B2C/ for our tourism clients have met with in both sales and profit. We succeeded white label travel insurance solutions. great success. We invested significantly in being the first assistance company to These are currently very popular with to promote direct online sales of tele- offer a complete range of annual travel online travel agencies, and show promi- surveillance and tele-security products. insurance policies. This product gene- sing growth. We’re pleased to say that And this paid off because 1/3 of our ration was judged “best-in-class” by a we’ve maintained our lead position in new customers come from online! Local very important German consumer sur- the Greek automotive market and have communities continued to subscribe to vey. Our earned premiums increased in been boosted by a rapid growth in travel our tele-assistance services, boosting 2008 by 62% over the previous year. But insurance. growth in this area. We worked relentles- 2008 was also very challenging because sly to successfully optimize purchasing the German travel insurance market is Italy: Proactivity leads to agreements with rental car companies, highly competitive, made even more growth and profitability airlines and our network of vehicle repair so by aggressive new players. To com- In Italy, we enjoyed +11.6% growth in providers. These pensate for the traditional flat tourism 2008, generated mostly from the tra- efforts also paid off. business, our travel entity focused on vel industry. We paid close attention Our innovation developing travel insurance offers for to managing our portfolios proactively; strategy to develop 71.6% financial institutions, insurance com- and closed off the year on a good roll of Group lifecare services turnover panies and brokers. We also worked by signing new contracts with several got an operational closely with new customers to develop Italian tour operators, which we hope boost when we for their distribution channels a range of will boost our 2009 sales! We also took Mondial Assistance Annual Report 2008 23
  • 28. International presence time to carefully review our B2C web- considered a domestic leader. We have Spain: Quality improvements site and asked ourselves how we can also built a strong base to foster future and a bright “green” attitude help you, our direct customers, better? growth. How? By improving our core With 68% female staff, our Spanish The answer is in our new online product business and successfully launching business unit increased sales by 14.3% offers like cell phone insurance and new domestic products targeting the in 2008, mostly from the tourism indus- roadside assistance! 2008 was a key mass market. Our innovative healthcare try. But who was the real star? A product partnering year with Allianz. We worked products and additional concierge servi- line for travel agencies whose revenues closely with their new management team ces have also been very successful. climbed by 30%! We created a new to build a best-in-class way to manage computer-assistance service, which operations and ensure transparency Reunion Island: A diversified works by phone, email or chats, and between us. In a similar vein we renewed client portfolio offers a remote access option as well. our commitment to the values of corpo- We sustained over 5% growth in our 2008 was a very “green” year for us in rate social responsibility and launched Reunion Island business unit in 2008. Spain. We extended a caring hand to the This won us SA8000 CRM services remain the main line environment and reduced our consump- certification! And we have a newcomer of business; that being said, the tion of paper and paper products by to our Group - Mondial Contact Center assistance activity is picking up vigo- 50%! We also launched a hefty roadside Italia. Here we manage contact center rously. It combines emergency hotline assistance program in Madrid with 3 tow services for our customers and even solutions with services and claims trucks – this should let us handle more ourselves! handling (i.e. car fleets, insurance than 6,500 cases in our capital a year. claims and real estate management…). And because you are always on the top Netherlands: innovation In response to this growth, we recently of our mind, we set out to improve the in a mature market launched several innovative solutions for quality of our roadside assistance ser- The vehicle assistance market in the our customers. Our client portfolio has vices and our ability to design specific Netherlands continued to climb in 2008. grown as well and now includes several customized solutions for you. How, you On this wave, we strengthened our ope- public sector entities. might ask? Through Neoasistencia, rational productivity. We continued to a subsidiary company that focuses focus efforts on promoting our popular Russia & CIS: a bold beginning exclusively on these challenges. annual travel insurance products. We for travel insurance and also observed a shift from the travel roadside assistance Switzerland: new distribution industry toward the insurance industry On March 1st, 2008 we kicked off our channels key for future growth as a distribution channel. As one of our new Russian activities and had a very We enjoyed another successful year in goals is to further help our individual promising first year. Our 24/7 assistance our Swiss business unit. Revenues grew consumers, we successfully launched platform, which also covers medical by 17.3% and we increased our share in a roadside assistance solution just for requests, helped many people and all key markets! We worked in a sound them. And of course, as in other coun- handled over 5,000 files in 10 months! economic environment into Q3, which tries, we transitioned very successfully to We’re also pleased to announce that our led to a higher loss ratio as people tra- the new Mondial Assistance brand! Russian team is now complete. Our core veled more and paid more to do so. This activities in this vast market are travel trend reversed in Q4. Overall our profit Poland: Dynamic sales insurance and roadside assistance. So grew in line with revenues and our com- and innovative healthcare far we have built a roadside assistance bined ratio reached an excellent 94%. The assistance market in Poland grew network in 80 Russian cities and we’re A major change for us in 2008 was the by 30% in 2008 – and it was an excel- actively developing our core offer for the distribution landscape. For the first time, lent year for our Polish business unit. CIS (Commonwealth of Independent a major retail chain is now selling our tra- We achieved high sales growth des- States) and Bulgaria. We’re currently vel insurance and roadside assistance pite a more competitive environment. in close contact with insurance com- products. Car dealers are also offering We now have a 33% share of the panies in the Ukraine, Kazakhstan and travel insurance at the time of a new country’s assistance market and are Armenia. car purchase. These new distribution 24 Mondial Assistance Annual Report 2008
  • 29. channels will be key for our future growth. We also saw a big boost in demand for healthcare. Popular among newcomers are medical consulting, medical triage and disease management products. Turkey: We’ve come a long way... We’ve come a long way with our Turkish business unit, and 2008 was a fine example of the progress we’ve made. Our turnover grew by more than 30% and we achieved a combined ratio of 93%! Perhaps equally as rewarding – we received a prize for Home Assistance! We can confidently say today that we are looking forward to sustainable growth in the future. We’ve set our sights on wider horizons too. With our new entity, Mondial Assistance Insurance, we have entered the insurance sector and will leading tour operators. We’ve been very soon have full insurance capability. We successful in developing sales of our are pursuing the medical and assistance on-line warranty and travel insurance businesses in regions like Azerbaijan products. Continuous improvement is and Georgia. Through an internal IT part of our daily vocabulary and for 2008 tool, the Eureka Project, we made great this was no exception. So that we can cost containment achievements in the help you better and faster, we signifi- medical sector. As a result, our business cantly improved our call centre efficiency units in Germany, France, Holland and and automatic dispatch processes to our Belgium come through us to manage technicians in the field. Today, our UK their medical and technical files. business unit is among the region’s top We continue to make gains in both the three providers of dedicated roadside banking and automotive sectors, and assistance, travel insurance administra- recently signed agreements with two tion and automotive warranty. You should major automobile brands. This positive also know that we focused a great deal Middle East & Africa: dynamic is not just a feeling. It’s real, in 2008 on developing our people and in Reinforcing the core business reflected in our improved NPS rating and investing in technology. HR and Internal Throughout 2008, we supported Allianz growing staff. Communications offered strong support in developing its activities in Africa and for in-house training. The old adage «a the Middle East by providing quality tra- UK and Ireland: Booming little goes a long way» is absolutely vel insurance. Our aim is to help as many e-commerce and streamlined true. Our simple actions reinforced people as possible, so we took appro- processes staff Engagement and Loyalty, and priate action. We furthered our relations 2008 was a challenging year for our maximized productivity. Today we are with existing partners in the Near East, UK and Irish business units due to the recognized for our excellent customer including Lebanon, Jordan and Egypt. economic downturn. But in the end services and successfully implementing And we began developing services for we maintained our final annual results. innovative change; staff turnover is way new partners in the Gulf countries, focu- We made new business wins throughout down, well below the industry average, sing particularly on insurers, banks and the year. Among them is one of the UK’s and our operating results are strong. airlines. Mondial Assistance Annual Report 2008 25
  • 30. Financial results 26 Mondial Assistance Annual Report 2008
  • 31. 1,597 million € turnover +6% growth 62.6 million € net profit Mondial Assistance Annual Report 2008 27
  • 32. Financial results Review of Operations For the year 2008 Turnover (Premiums and Service Revenue) In 2008, Mondial Assistance reached The business contributing to the half of Geographically, the Americas and EMEA its targets by achieving 1.6 billion euros the total growth was automotive. Repre- regions were the main contributors gross turnover with a combined ratio senting 39% of the total group revenues, to the growth of revenues in volume, below 95%. This good result was possible with mainly roadside assistance prod- respectively with +18.6% and +4.1%, thanks to the insurance business whose ucts, the line of business automotive followed by Asia Pacific with +7.9%. written premiums increased by +8.1% had a growth of +8.1%. The strong growth, mainly coming compared to last year, along with stable The remaining part of the business is from France, Brazil, Italy and the USA, service revenues. split between the third line of business was heavily impacted by -40.7 million 48% of the revenues come from travel health and lifecare services, representing euros resulting from important foreign insurance products, such as trip cancella- 8% of the total revenues, and the fourth exchange rates fluctuations during the tion, medical costs coverage and medical one property & others with 5% revenue year 2008, the major impacts being with assistance. This line of business had a share. The corresponding products the British pound, the US dollar and the growth of +2.8% in 2008 with a clear trend sold mainly on the finance market had Australian dollar. to internet online business through travel respectively turnover increases of +7.1% agents and airlines companies. and +18.7%. Claims and expenses Compared to last year, the claims ratio to 20.5% in 2008, which is very stable decreased from 37% in 2007 to 36% improved by 1.4% point from 58.4% to as during last years and mostly driven by in 2008. In parallel, Headcounts increased 57.8%. This comes from both a slight the insurance business ratio of 23.9%. by +4.9% and full time equivalent improvement of the current year claims In addition to those improvements, the increased by +6.1%. ratio and also a better run-off from previ- efficient control of the costs has to be As a consequence of the above men- ous year claims. emphasized as the general expenses tioned improvement, the combined ratio, Globally the commission ratio gross of increased by only +5.1% to 565.2 million as a mix of insurance and service busi- reinsurance moved from 20.7% in 2007 euros and the general expenses ratio nesses, improved to 94.9%. Investments and nancial results At December 31st, 2008, the Group’s especially in UK, and 52.3 million euros euros coming from exchange rates financial investments amounted to more securities available for sale, mainly result especially on contracts in British 581.6 million euros, which represent coming from more cash invested in pound, US dollar, Canadian dollar and 40.5% of the total assets, compared to money market mutual funds. euro against Swiss franc. Furthermore, 562.4 million euros and 41% in 2007. The investments and financial results the result from investments was lower In 2008 there were 45 million euros less decreased by -9.4 million euros in 2008 than in 2007 due to the economic crisis long term bank deposits than in 2007, to 24.1 million euros, thereof -7.6 million and the impairment of some bonds. 28 Mondial Assistance Annual Report 2008
  • 33. Turnover Turnover per zone Turnover per LOB (in million euros) 19% 48% 2008 1,597 Americas Travel 9.5% 5% 2007 1,508 Asia Property Paci c & others 71.5% 39% 2006 1,344 Auto EMEA 8% Health & Lifecare Combined ratio Net pro t Total staff (in points) (in million euros) (number of people) 2008 94.9 2008 62.6 2008 9,817 2007 95.1 2007 57.1 2007 9,356 2006 95.2 2006 55.9 2006 8,550 Result before and after tax, and return on equity The result generated by the operating to fluctuations in currency exchange in the Switzerland’s tax legislation, profit activities increased by +11.9% com- rates since year-end 2007, this con- after taxes ended up at 62.6 million pared to 2007 to 79.9 million euros. solidated profit could have been euros, which is 5.5 million euros better Thanks to this operating result, Mondial hypothetically 3.5 million euros higher. than in 2007. Assistance could achieved 103.1 million Deducting the taxes on profits of Correspondingly, the return on equity euros result before tax in 2008 which is 38 million euros, lower than in 2007 throughout the twelve-month period higher than in 2007 by +1%. Without by 5.1 million euros due to a one-off ended December 31st, 2008 increased any negative translation impact due increase in 2007 following a change to 17.3% in 2008. Changes in Group structure As during previous years, some changes has started in 2008 and following steps to the consolidated financial statements”, in Group structure took place during the are expected in 2009 and following starting on page 35 of this report. year 2008. In addition to new consolida- years. Details of these 2008 operations tions, a legal restructuring of the Group can be found in the chapter “Notes Mondial Assistance Annual Report 2008 29
  • 34. Financial results Financial statements of Mondial Assistance Group Consolidated Income Statement of Mondial Assistance Group 2008 2008 2008 2007 2007 GROSS CEDED FOR OWN FOR OWN RESTA- FOR OWN ACCOUNT ACCOUNT TEMENT ACCOUNT IN THOUSAND EUR RESTATED INSURANCE AND ASSISTANCE BUSINESS Total turnover (premiums and service revenue) 1,596,951 10,388 1,586,563 1,495,385 (15,301) 1,510,686 Written premiums 1,227,565 10,388 1,217,177 1,126,292 (15,301) 1,141,593 Unearned premium reserve change (19,808) 186 (19,994) (34,823) (1,119) (33,704) Earned premiums 1,207,757 10,574 1,197,183 1,091,469 (16,420) 1,107,889 Claims paid current year (442,626) (3,676) (438,950) (406,566) (406,566) Transferred claims administration (124,100) (124,100) (113,586) (113,586) expenses (ICHC) CY Change in current year reserves (147,613) (1,439) (146,174) (129,453) (129,453) Claims incurred current year (714,339) (5,115) (709,224) (649,605) (649,605) Claims paid previous year (95,425) (3,199) (92,226) (85,479) (85,479) Transferred claims administration (10,716) (10,716) (9,446) (9,446) expenses (ICHC) PY Change in previous year reserves 129,767 6,499 123,268 109,669 109,669 Claims incurred previous year 23,626 3,300 20,326 14,744 14,744 Other technical income / expenses (2,826) 0 (2,826) (2,329) 15,301 (17,630) Total claims (693,539) (1,815) (691,724) (637,190) 15,301 (652,491) Commission paid (Insurance Business) (289,238) (1,485) (287,753) (259,614) (259,614) Insurance margin 224,980 7,274 217,706 194,665 (1,119) 195,784 Service revenue 369,386 369,093 369,093 Service income deferred change 1,582 (4,741) 7,966 (12,707) Service revenue earned 370,968 364,352 7,966 356,386 Other service income / expenses (43,547) (27,384) (27,384) Commission paid (service business) (34,818) (45,203) (45,203) Transferred service administration (174,050) (162,222) (162,222) expenses (ISHC) Service Margin 118,553 129,543 7,966 121,577 Staff costs (370,945) (343,705) (343,705) IT costs (27,836) (22,324) (22,324) Telecommunication costs (15,675) (13,555) (13,555) Fees for group services (6,405) (11,802) (11,802) Other administration costs (144,358) (146,643) (146,643) Transfer of ICHC and ISHC 308,865 285,253 285,253 General expenses after transfer (256,354) (252,776) (252,776) Operating result 79,905 71,432 6,847 64,585 30 Mondial Assistance Annual Report 2008
  • 35. 2008 2008 2008 2007 2007 GROSS CEDED FOR OWN FOR OWN RESTA- FOR OWN ACCOUNT ACCOUNT TEMENT ACCOUNT IN THOUSAND EUR RESTATED Financial operations Current income investments 17,289 14,223 14,223 Current expense investments (1,141) (737) (737) Current investment result 16,148 13,486 13,486 Realised gains 3,436 2,999 2,999 Realised losses (2,081) (1,802) (1,802) Realised result 1,355 1,197 1,197 Write-ups 0 76 76 Write-offs (6,401) (851) (851) Net write offs (6,401) (775) (775) Result from investments 11,102 13,908 13,908 Exchange rate fluctuation gains 115,935 23,875 23,875 Exchange rate fluctuation losses (123,427) (23,761) (23,761) Exchange rate result (7,492) 114 114 Interest and similar income 21,750 20,363 20,363 Interest and similar expenses (1,205) (859) (859) Interest and similar result 20,545 19,504 19,504 Financial result 13,053 19,618 19,618 Other income/expenses (948) (2,873) (2,873) Result before tax 103,112 102,085 6,847 95,238 Taxes (37,997) (43,064) (2,263) (40,801) Result after tax 65,115 59,021 4,584 54,437 Minority interest in the results (2,551) (1,937) (1,937) Group result 62,564 57,084 4,584 52,500 Mondial Assistance Annual Report 2008 31
  • 36. Financial results Consolidated Balance Sheet of Mondial Assistance Group 2008 2007 RESTATEMENT 2007 IN THOUSAND EUR RESTATED ASSETS Goodwill 19,497 19,176 19,176 Other intangible fixed assets 23,371 28,455 28,455 Intangible fixed assets 42,868 47,631 0 47,631 Land and buildings 7,706 7,973 7,973 Other tangible fixed assets 44,942 47,400 47,400 Tangible fixed assets 52,648 55,373 0 55,373 Shares 216 24 24 Fixed-interest securities 317,429 304,626 304,626 Other Investments 80,480 41,161 41,161 Securities - available for sale 398,125 345,811 0 345,811 Investments - fair value through profit & loss 803 4,700 0 4,700 Participations 776 284 0 284 Mortgages 0 0 0 Long term bank deposits 148,930 193,890 193,890 Loans 32,957 17,743 17,743 Mortgages, long term deposits and loans 181,887 211,633 0 211,633 Investments 581,591 562,428 0 562,428 Accounts receivable - direct business 121,097 100,504 100,504 Accounts receivable - indirect business 69,995 67,031 67,031 Accounts receivable from associated companies - 2,310 8,074 8,074 current accounts Other accounts receivable 203,855 176,262 176,262 Accounts receivable 397,257 351,871 0 351,871 Deferred acquisition costs 36,991 28,568 0 28,568 Cash and cash equivalents 239,643 225,046 0 225,046 Reinsurance deposits 5,430 29,873 29,873 Other deposits 5,547 5,407 5,407 Other assets 10,977 35,280 0 35,280 Accrued interest 8,431 10,537 10,537 Other (prepayments and accrued income) 33,456 26,680 26,680 Accruals & prepayments 41,887 37,217 0 37,217 Deferred taxes - assets 31,187 29,099 4,089 25,010 Total assets 1,435,049 1,372,513 4,089 1,368,424 32 Mondial Assistance Annual Report 2008
  • 37. 2008 2007 RESTATEMENT 2007 IN THOUSAND EUR RESTATED SHAREHOLDERS’ EQUITY AND LIABILITIES Share capital 25,509 25,509 25,509 Additional paid in capital 30,633 30,633 30,633 Other reserves 210,227 211,363 211,363 Retained earnings brought forward 59,747 33,937 33,937 Correction of an error related to previous years (9,275) (13,859) (13,859) Net profit for the financial year 62,564 57,084 4,584 52,500 Shareholders’ equity 379,405 344,667 (9,275) 353,942 Minority interest in shareholders’ equity 10,324 9,416 0 9,416 Unearned premium reserves and deferred service income 419,599 436,201 13,364 422,837 Claim reserves 183,483 170,355 170,355 Other technical provisions 41,413 46,787 46,787 Technical provisions and deferred service income 644,495 653,343 13,364 639,979 Personnel provisions and similar liabilities 48,413 44,556 44,556 Provision for income taxes and similar taxes 22,067 25,822 25,822 Other non-technical provisions 10,411 12,521 12,521 Non-technical provisions 80,891 82,899 0 82,899 Deposits received from reinsurers 180 226 226 Loans 11,954 17,120 17,120 Liabilities - direct business 36,875 16,806 16,806 Liabilities - indirect business 13,033 10,813 10,813 Liabilities to associated companies - current accounts 8,100 579 579 Other liabilities 217,865 201,116 201,116 Deferred income 12,827 19,928 19,928 Other liabilities 300,834 266,588 0 266,588 Deferred taxes - liabilities 19,100 15,601 0 15,601 Total liabilities 1,055,644 1,027,847 13,364 1,014,483 Total shareholders’ equity and liabilities 1,435,049 1,372,513 4,089 1,368,424 Mondial Assistance Annual Report 2008 33
  • 38. Financial results Cash Flow Statement IN THOUSAND EUR 2008 2007 Net result of the period 62,564 52,500 Change in unearned premiums reserve (16,601) 32,533 Change in claims and claim handling costs 13,128 19,196 Change in other technical reserves (5,374) 880 Change in deferred acquisition costs (8,422) (2,454) Change in deposits held by others under reinsurance business assumed 24,443 (4,746) Change in deposits held under reinsurance business ceded (46) (3) Change in accounts receivable / payable on reinsurance business (745) (4,768) Change in loans and advances to banks and customers (15,214) 111 Change in liabilities to banks and customers 14,812 9,781 Change in other receivables and liabilities (22,793) (55,764) Change in deferred tax assets / liabilities (315) 219 Adjustment for investment income/expenses not involving movements of cash 0 0 Adjustments to reconcile amortization of goodwill 34 0 Depreciation and amortization expense 22,692 24,768 Other (13,786) 4,888 Minority interests 2,551 1,937 Cash flow from operating activities 56,928 79,078 Change in securities available for sale* 5,038 (6,940) Change in real estate 0 0 Change in other investments 0 0 Acquisition of subsidiaries net of cash acquired (1,572) (20,996) Change in fixed tangible and intangible assets (10,436) (27,382) Cash flow from investing activities (6,971) (55,318) Cash inflow from capital increases 0 0 Dividend payouts (25,650) (16,859) Other from shareholder equity and minority interests (9,710) 150 Cash flow from financing activities (35,360) (16,709) Effect of exchange rate changes on cash and cash equivalents 0 0 Change in cash and cash equivalents 14,597 7,051 Cash and cash equivalents at beginning of period 225,046 217,995 Cash and cash equivalents at end of period 239,643 225,046 * Including unrealised loss/gain reserves on investments available for sale. 34 Mondial Assistance Annual Report 2008
  • 39. Notes to the consolidated nancial statements of Mondial Assistance Group Consolidation scope replaced by a new branch: Elvia Travel used for acquired businesses, including The consolidated financial statements Insurance Spain. entities under common control of of Mondial Assistance Group comprise Mondial Assistance AG’s ultimate holding the annual accounts of Mondial Consolidation principles company. Companies acquired or Assistance AG and subsidiaries, which Subsidiaries have been recorded accor- disposed of during the year are included are prepared in accordance with the ding to the full consolidation method in the consolidated financial statements accounting and valuation principles of the when subject to the majority control of from the date of acquisition or to the Mondial Assistance Group. Consoli- the Mondial Assistance Group. date of disposal respectively. dated subsidiaries are listed further in All intra-group transactions and balances the notes to the consolidated financial have been eliminated. Foreign currency statements. Interests in joint ventures are recognised translation In 2008, the following companies by including the accounts using the The Group’s reporting currency is the were founded: Neoasistencia Manot- equity consolidation basis. euro (€). The functional currency for each eras S.L. (Spain), Mondial Assistance Equity investments in which the Mondial Group company is the currency of the Sigorta Aracilik Hizmetleri Ltd Sirketi Assistance Group owns at least 20% environment where the enterprise carries (Turkey) and Atencion Integral a la of the voting rights are accounted on its activities. Assets and liabilities are Dependencia S.L. (Spain). The first for using the equity method, except translated at the closing rate on the balance two were consolidated in the Mondial for investments in which the Mondial sheet date. Expenses and income are Assistance Group; whereas the last Assistance Group is not able to exercise translated at the annual average rate from one is a joint venture held at 50% and significant influence, in which case the the functional currency into the reporting is accounted for according the Equity cost method is used. currency. Translation differences between method. Participations in which the company the functional currency and reporting In 2008, one Italian company Mondial owns less than 20% are accounted for currency, including those arising in the Contact Center Italia S.r.l. was acquired under the cost method. process of equity consolidation, are taken and has been consolidated into Mondial The equity and net income attributable to shareholders’ equity without affecting Assistance Group. to minority shareholders’ interests are earnings. Translation differences between Finally, the Spanish subsidiary Mondial disclosed separately in the balance sheet the transaction currency and functional Assistance Seguros y Reaseguros de and income statement respectively. currency are reported in earnings. Riesgos Diversos was closed, and The purchase method of accounting is Exchange rates of principal currencies BALANCE SHEET YEAR END RATE (AGAINST 1 EURO) 2008 2007 Australia (AUD) 2.0274 1.6757 Japan (JPY) 126.1400 164.9300 Brazil (BRL) 3.2436 2.6217 United Kingdom (GBP) 0.9525 0.7334 Switzerland (CHF) 1.485 1.6547 USA (USD) 1.3917 1.4721 INCOME STATEMENT AVERAGE RATE (AGAINST 1 EURO) 2008 2007 Australia (AUD) 1.7432 1.6351 Japan (JPY) 152.3492 161.247 Brazil (BRL) 2.67854 2.6648 United Kingdom (GBP) 0.79705 0.6846 Switzerland (CHF) 1.58694 1.6427 USA (USD) 1.47109 1.3705 Mondial Assistance Annual Report 2008 35
  • 40. Financial results Restatement of 2007 issued without considering the period of 2.5 months and health medical care A detailed actuarial review performed the contract because the unearned pre- for foreign students with an average during 2008 has shown that the income mium was believed to be immaterial. duration of 3-4 years; recognition policy for certain contracts The contracts requiring these adjust- • for Portugal: roadside (yearly policy) in the US, Australian, and Portuguese ments are: and automotive maintenance con- Business Units requires adjustment • for US: mainly travel insurance con- tracts (average duration 4.5 years). and this has led to a restatement being tracts with an average duration of The total reserve adjustment required required of the 2007 results. 3 months; can be summarized as follows: These entities used to recognize the pre- • for Australia: travel insurance con- mium income in full when the policy was tracts with an average duration of CONVERTED TO EUROS 31.12.2006 31.12.2007 31.12.2008 DEVIATION RECORDED RESTA- DEVIATION (12.2008 EXCHANGE RATE) 2007 2007 TEMENT 2008 Portugal (1,605) (3,096) (3,478) (1,491) (1,491) (382) Australia (11,712) (8,234) (9,258) 3,478 (1,729) 5,207 (1,025) USA (6,894) (6,328) (7,313) 566 (2,565) 3,131 (985) Total (20,211) (17,658) (20,049) 2,553 (4,294) 6,847 (2,391) The tax rates applied to these adjust- recognition, other intangible fixed assets finance expense for each accounting ments are : are measured at cost less accumulated period. The depreciation policy for • Portugal: 26.50%; amortisation and any accumulated leased assets is consistent with that for • USA: 35%; impairment losses. other depreciable assets. • Australia: 30%. Other intangible fixed assets are amor- Investments tised using the straight-line method over Investments include securities available Accounting their estimated period of benefit with a for sale, investments at fair value through and valuation policies maximum of 5 years. profit & loss, mortgages, long term bank deposits and loans. BALANCE SHEET Tangible fixed assets Securities available for sale are Tangible fixed assets include property Intangible fixed assets accounted for at fair value. Positive and and other tangible fixed assets such as Intangible fixed assets include goodwill negative differences between market equipment. and other intangible assets such as value and cost or amortised cost are Property used for own use and equip- exclusivity fees and software purchased included in a separate component of ment is stated at cost and depreciated from others or developed in-house. shareholders’ equity, net of deferred tax. using the straight-line method over the Goodwill represents the difference Realised gains and losses are principally shorter of the estimated life of the asset between the purchase price of subsi- determined by applying the average cost or the lease term. Land is not depre- diaries and the proportionate share of method. ciated. Buildings are depreciated over a their net assets valued at the current Investments at fair value through profit maximum of 50 years in accordance with value of all assets and liabilities at & loss are accounted for at fair value. the useful life of the building, while other the time of acquisition. Goodwill is Changes in fair value are included in tangible fixed assets are depreciated over recognised as an asset in the balance profit and loss. the period of their estimated useful life at sheet and is not amortised. Mortgages, long term bank deposits the date of purchase which is between The Mondial Assistance Group perio- and loans are valued at cost less any 3 and 10 years. di cally evaluates the recoverability of necessary value adjustment. The Group recognises finance leases as Goodwill and takes into account events assets and liabilities in the balance sheet Accounts receivable or circumstances that indicate the exis- at the amount equal at the inception of Accounts receivable are carried at nominal tence of an impairment. Impairment the lease to the fair value of the leased value less any necessary value adjust- testing for goodwill is carried out at property. Initial direct costs incurred are ment. least annually, at the end of the year. The included as part of the asset. Lease impairment is recognized through the payments are apportioned between Deferred acquisition costs income statement and the reversal of an the finance charge and the reduction Deferred acquisition costs, which are impairment loss is prohibited. of the outstanding liability. The finance incurred in connection with the acqui- Other intangible fixed assets are mea- charge is allocated to periods during the sition or renewal of insurance policies, sured initially at cost and are recognised lease term so as to produce a constant are capitalised and amortised through if it is probable that the future economic periodic rate of interest on the remaining the income statement over the term of benefits that are attributable to the asset balance of the liability for each period. the policies. will flow to the Group and the cost of the A finance lease gives rise to deprecia- asset can be measured reliably. After initial tion expense for the asset as well as a 36 Mondial Assistance Annual Report 2008
  • 41. Cash and cash equivalents by IBNR reserves (reserves for claims EXPLANATION OF THE This item includes balances with banks Incurred But Not Reported) based on ACCOUNTING AND payable on demand, cash on hand and management and statistical estimates. VALUATION POLICIES bank deposits with a maturity of three months or less at the date of purchase. Non-technical provisions DIFFERING These include personnel provisions and FROM SWISS LAW The carrying amount of cash with banks similar liabilities, provision for income and cash on hand corresponds to the The most important differences are sum- taxes and other non-technical provi- fair value. Cash funds are stated at their marised below. sions. face value, with holdings of foreign notes Pension and similar reserves are cal- Investments available for sale and coins valued at year-end closing culated taking local circumstances into (afs investments) rates. account as well as expected future Investments available for sale are shown Deferred tax trends in salaries and wages, retirement in the balance sheet at market value The calculation of deferred tax is based rates and pension increases. with the unrealised gains / losses being on temporary differences between the Defined benefit plans are recognised included under other reserves in share- carrying amounts of assets or liabilities using the method of accruing actuarial holders’ equity. in the published balance sheet and their gains and losses through income. Investments are recorded at the lower of tax basis, and on differences arising from Provisions for income taxes are calcu- cost and market value under the Swiss the application of uniform valuation poli- lated in accordance with the relevant Code of Obligations. cies for consolidation purposes. The tax local tax regulations. rates used for the calculation of deferred Claim equalisation reserves Other liabilities Claim equalisation reserves and catas- taxes are the local rates applicable in Other liabilities include deposits retained trophe reserves are not allowed under the countries concerned. Substantively from reinsurers, loans, liabilities direct/ Mondial Assistance Group accounting enacted changes in tax law are already indirect business, liabilities with asso- policies because they do not represent taken into account as at the balance ciated companies (current accounts), a present obligation towards third par- sheet date. deferred income and other liabilities. ties. Impairment of assets All assets are reviewed regularly to INCOME STATEMENT Claims reserves ensure that no further value adjustments Turnover Under Mondial Assistance Group are required. Valuation write-downs are Turnover includes insurance premiums accounting policies, claims reserves charged to the income statement if an and service income. usually are lower than under statutory other than temporary diminution in value accounting principles as they are calcu- is identified. Write-downs are based on Premiums earned lated at the best estimate of the ultimate the relevant estimated recoverable Premiums written for travel insurance are cost. The Swiss Code of Obligations amounts. reported proportionately as income over requires a conservative calculation in the term of the insurance contract on a accordance with the prudence prin- Accounting for operating leases daily basis. ciples. Equipment and vehicles held under operating leases, whereby the risks Claims and service administration Premium receivables / and benefits relating to ownership of expenses (internal claims handling claims payable the assets remain with the lessor, are costs ICHC and internal service Premium receivables from fronting not recorded in the balance sheet and handling costs ISHC) transactions are shown net of claims all related expenses are accounted for Claims and service handling costs are payable. in the income statement in the period assessed according to business man- Acquisition costs they arise. agement criteria and reported under Under Mondial Assistance Group claims incurred and service administra- Technical provisions and deferred accounting policies acquisition costs tion expenses. service income are capitalised and amortised over the Technical provisions and deferred service Ordinary result term of policy. income unearned premium reserves, Interest income and interest expense Goodwill deferred service income, claim reserves are recognised on an accrual basis. Goodwill with an indefinite useful life is and other technical provisions. Dividends are recognised as income not amortised under Mondial Assistance Premiums written and service income when received. Group accounting policies. Impairment attributable to future periods are deferred Interest on finance leases is recognised testing for goodwill is carried out at least under unearned premium reserves res- as interest expense over the term of the annually and if impairment is applicable, pectively under deferred service income respective lease. it is recognised through the income on a pro-rata basis, over the period of Income Taxes statement. the contract on a daily basis. Income tax expense includes current Goodwill is usually amortised under the Claim reserves are assessed according to income taxes and deferred income Swiss Code of Obligations. local regulatory requirements, on a case taxes. by case basis and are supplemented Mondial Assistance Annual Report 2008 37
  • 42. Financial results VALUATION ANALYSIS INVESTMENTS IN THOUSAND EUR 2008 2007 FIXED-INCOME SECURITIES AND OTHER INVESTMENTS Acquisition cost of portfolio 395,463 343,099 Fair value per end of period 397,909 345,787 Difference 2,446 2,688 Shares Aquisition cost of portfolio 212 17 Fair value per end of period 216 24 Difference 4 7 INTANGIBLE AND TANGIBLE FIXED ASSETS INTANGIBLE OTHER TANGIBLE REAL TOTAL IN THOUSAND EUR FIXED ASSETS FIXED ASSETS ESTATE Balance value as of January 1st 47,631 47,400 7,973 103,004 Exchange rate change (451) (3,179) 0 (3,630) Additions 5,400 21,429 0 26,829 Change scope of consolidation (765) 132 0 (633) Disposals (731) (8,227) (185) (9,143) Amortisation / Depreciation (7,488) (12,613) (82) (20,183) Change in accounting policies (728) (728) Balance value as of December 31st 42,868 44,942 7,706 95,516 Real Estate Tangible fixed Assets they extend the useful life of the asset, The gross capitalised values totalled The gross capitalised values totalled otherwise they are recognised as an 10.987 thousand euros at the beginning 132.904 thousand euros at the begin- expense. of the year and 10.801 thousand euros ning of the year and 137.988 thousand Intangible fixed Assets at the end of the year. The decrease is euros at the end of the year. Goodwill (net) amounted to 19.176 due to a reclassification through build- Accumalated depreciation amounted to thousand euros at the beginning and ing used by third parties. Accumalated 85.504 thousand euros at the beginning 19.497 thousand euros at the end of depreciation amounted to 3.014 thou- of the year and 93.046 thousand euros the period. Other intangible fixed assets sand euros at the beginning of the year at the end of the year. Expenditures (net) totalled 28.455 thousand euros at and 3.096 thousand euros at the end of to restore the future economic ben- the beginning of the year and 23.371 the year. efits from the assets are capitalised if thousand euros at the end of the year. CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY IN THOUSAND EUR 2008 2007 Shareholders’ equity as of January 1st 344,667 323,352 Exchange rate differences (5,969) (1,061) Net profit for the financial year 62,564 57,084 Unrealised gains on afs investments 4,328 (695) Unrealised losses on afs investments 2,978 (1,716) Dividends to shareholders (25,650) (16,859) Others movements (3,513) (1,579) Correction of an error related to previous years (13,859) Shareholders’ equity as of December 31st 379,405 344,667 38 Mondial Assistance Annual Report 2008
  • 43. DISCLOSURES OF ARTICLE 663 A/B CO, SUPPLEMENTED BY VOLUNTARY INFORMATION IN THOUSAND EUR IF NOT OTHERWISE INDICATED 2008 2007 1. Contingent liabilities 34,236 51,031 2. Assets pledged as security for own obligations - 178 3. Leasing obligations 82,326 83,682 4. Mondial Assistance International AG and Mondial Assistance AG belong to the the Allianz Suisse Insurance value added tax group and are therefore jointly and severably liable for all value added tax liablities of the value added tax group to the Swiss Federal Tax Administration. 5. Participations with at least 20% of voting rights or capital share 2008 2007 EUROPE Austria Mondial Assistance GmbH, Vienna Share capital in ATS 15,000,000 15,000,000 Purpose: Assistance and services Share 100% 100% Belgium Société Belge d’Assistance Internationale S.A., Brussels Share capital in EUR 7,709,000 7,709,000 Purpose: Insurance Share 94.14% 94.14% Société Belge de Services Téléphoniques S.A., Brussels Share capital in EUR 74,400 74,400 Purpose: Services Share 94.99% 94.43% Czech Republic Mondial Assistance s.r.o., Prague Share capital in CZK 30,000,000 30,000,000 Purpose: Services Share 100% 100% France Mondial Assistance Réunion S.A., Saint Denis (Reunion Island) Share capital in EUR 329,008 329,008 Purpose: Services Share 99.97% 99.97% Gestion de Télésécurité et de Services S.A., Châtillon Share capital in EUR 720,000 720,000 Purpose: Services Share 99.98% 99.98% Mondial Assistance France S.A.S., Paris Share capital in EUR 7,584,077 7,538,390 Purpose: Services and broker Share 95.00% 94.43% Fragonard Assurance S.A., Paris Share capital in EUR 37,207,660 35,688,980 Purpose: Insurance Share 95.00% 94.43% Mondial Assistance S.A.S., Paris Share capital in EUR 20,088,900 20,088,900 Purpose: Holding Share 99.99% 99.99% TEL2S , SARL Share capital in EUR 72,510 72,510 Purpose: Services Share 99.91% 99.91% Société Européenne de Protection et de Services Share capital in EUR 174,750 174,750 d’Assistance à Domicile S.A., Paris Purpose: Security and others Share 56.00% 56.00% Mondial Assistance France Services à la personne S.A.S. Share capital in EUR 340,000 340,000 Purpose: Services Share 95.00% 94.43% Germany Mondial Assistance Deutschland GmbH, Munich Share capital in EUR 50,000 50,000 Purpose: Services Share 50.99% 50.00% REHACARE GmbH, Munich Share capital in EUR 128,000 128,000 Purpose: Service Share 38.19% 37.44% Great Britain Mondial Assistance United Kingdom Ltd, Croydon Surrey Share capital in GBP 1,360,940 1,360,940 Purpose: Assistance and services Share 99.99% 99.99% World Access Europe Ltd, London Share capital in GBP 100 100 Purpose: Assistance and services Share 99.99% 99.99% Mondial Assistance Annual Report 2008 39
  • 44. Financial results 2008 2007 Greece POLY - Assistance & Services A.E., Athens Share capital in EUR 60,000 60,000 Purpose: Assistance and services Share 50.99% 50.99% Hungary ELVIA Assistance Kft., Budapest Share capital in HUF 3,000,000 3,000,000 Purpose: Services Share 100% 100% Ireland Assistance and Services Corporation of Ireland Ltd, Dublin Share capital in EUR 146,050 146,050 Purpose: Services Share 99.99% 99.99% Italy Mondial Service Italia S.r.l., Milan Share capital in EUR 98,000 98,000 Purpose: Services Share 100% 100% Mondial Assistance Italia S.p.A., Milan Share capital in EUR 7,908,216 7,908,216 Purpose: Insurance and reinsurance Share 100% 100% Mondial Contact Center Italia S.r.l. Share capital in EUR 17,370 95,000 Purpose: Call center Share 70% 100% The Netherlands Mondial Assistance B.V., Amsterdam Share capital in EUR 454,000 454,000 Purpose: Reinsurance and services Share 100% 100% ELVIA Travel Insurance International N.V., Amsterdam Share capital in EUR 23,156,868 23,156,868 Purpose: Insurance Share 100% 100% Poland Mondial Assistance Sp.z o.o., Warsaw Share capital in PLN 3,800,000 3,800,000 Purpose: Services Share 100% 100% Portugal Mondial Assistance Portugal Servicos de Assistencia LDA, Lisbon Share capital in EUR 1,600,000 1,600,000 Purpose: Services Share 100% 100% Russia Mondial Assistance OOO Share capital in RUB 48,000,000 48,000,000 Purpose: Services Share 99.99% 100% Spain Sociedad Mundial de Asistencia S.A., Madrid Share capital in EUR 210,350 210,350 Purpose: Services Share 99.99% 99.99% Neoasistencia Manoteras Share capital in EUR 19,006 Purpose: Services Share 99.99% Atencion integral a la dependencia Share capital in EUR 300,000 Purpose: Services Share 50.00% Switzerland ELVIA Reiseversicherungs-Gesellschaft AG, Zurich Share capital in CHF 25,000,000 25,000,000 Purpose: Insurance and assistance Share 100% 100% MEDVANTIS Share capital in CHF 125,450 125,450 Purpose: Services Share 100% 100% Turkey SAT S.A., Istanbul Share capital in TRY 206,785 206,785 Purpose: Services Share 96.99% 95.99% Mondial Sigorta Aracilik Hizmetleri Limited Sirketi Share capital in TRY 25,000 Purpose: Insurance Share 97.05% AFRICA Mauritius Island Mascareignes Services Assistance Ltd, Port Louis Share capital in MUR 1,103,000 1,103,000 Purpose: Services Share 99.99% 99.99% 40 Mondial Assistance Annual Report 2008
  • 45. 2008 2007 ASIA PACIFIC Australia Mondial Assistance Australia Holding (Pty) Ltd, Toowong Share capital in AUD 11,000,000 11,000,000 Purpose: Holding Share 100% 100% ETI Australia (Pty) Ltd, Toowong Share capital in AUD 11,000,000 11,000,000 Purpose: Services Share 100% 100% China Mondial Assistance Beijing Services Co. Ltd., Beijing Share capital in EUR 1,780,000 1,780,000 Purpose: Services Share 99.99% 99.99% India Mondial Services (India) Private Limited Share capital in INR 300,000,000 120,202,360 Purpose: Services Share 89.66% 99.99% Japan Millea Mondial Co Ltd, Tokyo Share capital in JPY 100,000,000 100,000,000 Purpose: Services Share 50.00% 50.00% Singapore World Access Asia (PTE) Ltd, Singapore Share capital in SGD 2,050,000 2,050,000 Purpose: Assistance and services Share 100% 100% Thailand Mondial Assistance (Thailand) CO Ltd., Bangkok Share capital in THB 20,408,200 20,408,200 Purpose: Services Share 46.55% 44.10% NORTH AMERICA Canada World Access Canada Inc., Waterloo Share capital in CAD 1,394,484 1,394,484 Purpose: Assistance and services Share 100% 100% World Access Insurance Broker Ltd, Waterloo Share capital in CAD 1 1 Purpose: Insurance broker Share 100.00% 47.37% USA Travel Care Inc., Richmond Share capital in USD 25,000 25,000 Purpose: Assistance and travel agency Share 100% 100% World Access Inc., Richmond Share capital in USD 74 74 Purpose: Holding Share 100% 100% ELVIA WA Building Share capital in USD 2,500 2,500 Purpose: Assistance and services Share 100% 100% Jefferson Insurance Company Share capital in USD 10,453,700 10,453,700 Purpose: Insurance Share 100% 100% World Access Service Corp., Richmond Share capital in USD 5,000 5,000 Purpose: Assistance and insurance agency Share 100% 100% Mexico Mondial Servicios S.A. De C.V. Share capital in MXN 50,000 50,000 Purpose: Services Share 99.99% 100% Mondial Mexico S.A. De C.V. Share capital in MXN 50,000 50,000 Purpose: Services Share 100.00% 100.00% SOUTH AMERICA Argentina Mercosul Assistance Argentine S.A., Buenos Aires Share capital in ARS 212,000 212,000 Purpose: Services Share 100.00% 100.00% Brazil Mercosul Assistance Participacoes Ltda, São Bernardo do Campo Share capital in BRL 7,641,918 7,641,918 Purpose: Services Share 99.99% 99.99% Mondial Protection Corretora de Seguros Ltda, Share capital in BRL 10,000 10,000 São Bernardo do Campo Purpose: Broker Share 99.98% 99.98% Mondial Assistance Annual Report 2008 41
  • 46. Financial results 2008 2007 6. Shareholders with more than 5% votes Allianz Compagnia Italiana Finanziamenti S.p.A. Share 50% 50% AGF Holding S.A., Paris Share 29.8% 29.8% AGF Iart S.A., Paris Share 10.1% 10.1% AGF Vie S.A., Paris Share 10.1% 10.1% 7. Receivables, payables and liabilities from insurance business with associated companies: Accounts receivable from insurance business 18,344 31,626 Deposit retained on reinsurance assumed 1,627 25,960 Accounts receivable for services 17,472 9,024 Other accounts receivable 53,000 18,034 Liabilities from insurance business 25,010 17,961 Deposit retained on reinsurance ceded 936 936 Rendering of service debts 0 6 Other liabilities 9,190 1,496 42 Mondial Assistance Annual Report 2008
  • 47. Report of the Group Auditors on the consolidated nancial statements to the Board of Directors of Mondial Assistance AG, Wallisellen As group auditor, we have audited the accompanying consolidated financial statements on pages 30 to 42 of Mondial Assistance AG, which comprise the balance sheet, income statement, cash flow statement and notes for the year ended December 31, 2008. Board of Directors’ Responsibility The board of directors is responsible for the preparation of the consolidated financial statements in accordance with the require- ments of Swiss law and the consolidation and valuation principles as set out in the notes. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The board of directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the account- ing policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements for the year ended December 31, 2008 comply with Swiss law and the consolidation and valuation principles as set out in the notes. Report on Other Legal Requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence. We recommend that the consolidated financial statements submitted to you be approved. KPMG AG Ian Sutcliffe Cécile Martenet Licensed Audit Expert Licensed Audit Expert Auditor in Charge Zurich, March 24, 2009 Mondial Assistance Annual Report 2008 43
  • 48. Financial results Financial statements of Mondial Assistance AG Balance Sheet of Mondial Assistance AG IN THOUSAND CHF 2008 2007 ASSETS Fixed assets Other intangible assets 398 876 Participations 398,511 398,511 Loans to group companies 8,910 0 Total fixed assets 407,819 399,387 Current assets Cash and cash equivalents 32 47,889 Receivables 7,921 9,115 Receivables from group companies 32,092 17 Accrued income 370 307 Total current assets 40,415 57,328 Total assets 448,234 456,715 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Accruals and deferred income 343 315 Other liabilities 862 588 Other liabilities to group companies 776 1,007 Total liabilities 1,981 1,910 Shareholders’ equity Share capital 40,000 40,000 Other legal reserve 357,000 357,000 Legal reserve 977 977 Retained earnings brought forward 16,122 0 Net profit for the financial year 32,154 56,828 Total shareholders’ equity 446,253 454,805 Total liabilities and shareholders’ equity 448,234 456,715 Income Statement of Mondial Assistance AG IN THOUSAND CHF 2008 2007 Financial Income 37,512 61,103 Personnel expenses (1,539) (1,612) Administrative expenses (3,341) (2,198) Depreciation (478) (424) General expenses (5,358) (4,234) Profit for the financial year before taxes 32,154 56,869 Taxes 0 (41) Profit for the financial year 32,154 56,828 44 Mondial Assistance Annual Report 2008
  • 49. Notes to the nancial statements of Mondial Assistance AG DISCLOSURES UNDER ART. 663B CO, SUPPLEMENTED BY VOLUNTARY INFORMATION IN THOUSAND CHF (IF NOT OTHERWISE INDICATED) 2008 2007 1. Participations with at least 20% of voting rights or capital share: Mondial Assistance International AG, Wallisellen (formerly Elvia Reiseversicherungs-Gesellschaft AG, Share capital 25,000 25,000 Wallisellen, renamed November 2008) Purpose: Insurance and assistance Share 100.00% 100.00% Mondial Assistance S.A.S., Paris Share capital in thousand EUR 20,089 20,089 Purpose: Holding Share 99.99% 99.99% 2. Mondial Assistance AG belongs to the Allianz Suisse Insurance value added tax group and is therefore jointly and severably liable for all value added tax liabilities of the value added tax group to the Swiss Federal Tax Administration Risk assessment • to define and control the Mondial In order to ensure coherency and Mondial Assistance has established a Assistance AG risk policy in all its accurate monitoring of risk carried central position for Risk management by dimensions (risk family, region, type out by the group activity, several creating the post of Chief Risk Officer of event); committees have been established (such (CRO). • to promote and enhance a strong as Underwriting Advisory Committee, The main objectives of this position are: risk culture and develop risk control Reinsurance Committee, Reserve Com- • to ensure the development and main- mechanisms for the Company; mittee) allowing the Risk Committee to tenance of a risk management and • to provide the Executive Committee define and maintain oversight of all risk controlling framework; with relevant information to enable management activities. them to define Mondial Assistance Risk Strategy. PROPOSAL FOR TRANSFER OF CAPITAL RESERVES IN THOUSAND CHF 2008 2007 Capital Reserves (Additional paid in capital) at the beginning of the year 357,000 357,000 Allocation to unrestricted reserves (100,000) - Capital Reserves (Additional paid in capital) at the end of the year 257,000 357,000 PROPOSAL FOR THE DISTRIBUTION OF PROFITS IN THOUSAND CHF 2008 2007 Net profit for the financial year 32,154 56,828 Balance at the beginning of the year 16,122 - Available profit 48,276 56,828 It is proposed to the annual general meeting to allocate a dividend as follows: From available profit 48,276 40,706 Allocation from unrestricted reserves 25,974 - Proposal for dividend distribution 74,250 40,706 Balance carried forward - 16,122 Available profit 48,276 56,828 Mondial Assistance Annual Report 2008 45
  • 50. Financial results Report of the Statutory Auditors on the nancial statements to the General Meeting of Mondial Assistance AG, Wallisellen As statutory auditor, we have audited the accompanying financial statements on pages 44 to 45 of Mondial Assistance AG, which comprise the balance sheet, income statement and notes for the year ended December 31, 2008. Board of Directors’ Responsibility The board of directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The board of directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accor- dance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements for the year ended December 31, 2008 comply with Swiss law and the company’s articles of incorporation. Report on Other Legal Requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence. In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of financial statements according to the instructions of the board of directors. We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s articles of incorporation. We recommend that the financial statements submitted to you be approved. KPMG AG Ian Sutcliffe Cécile Martenet Licensed Audit Expert Licensed Audit Expert Auditor in Charge Zurich, March 24, 2009 46 Mondial Assistance Annual Report 2008
  • 51. Business years 2007 - 2008 INCOME STATEMENT 2008 2007 RESTATEMENT 2007 IN MILLION EUR RESTATED Gross total turnover (written premiums and service revenue) 1,597.0 1,507.8 (15.3) 1,523.1 Net earned premiums and service income 1,568.1 1,455.8 (8.5) 1,464.3 Claims (691.7) (637.2) 15.3 (652.5) Costs (796.5) (747.2) (747.2) Operating result 79.9 71.4 6.8 64.6 Investment result 11.1 13.9 13.9 Financial result and other income/expenses 12.1 16.7 16.7 Result before Tax 103.1 102.0 6.8 95.2 Taxes (38.0) (43.0) (2.2) (40.8) Result after Tax 65.1 59.0 4.6 54.4 Minority interest in the results (2.5) (1.9) (1.9) Group result 62.6 57.1 4.6 52.5 BALANCE SHEET ASSETS Investments 581.6 562.4 562.4 Cash and cash equivalents 239.7 225.0 225.0 Accounts receivable 397.2 351.9 351.9 Total remaining assets 216.5 233.2 4.1 229.1 Total assets 1,435.0 1,372.5 1,368.4 SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity 379.4 344.7 (9.2) 353.9 Technical provisions 644.5 653.3 13.3 640.0 Other liabilities 411.1 374.5 374.5 Total shareholders’ equity and liabilities 1,435.0 1,372.5 4.1 1,368.4 KEY FIGURES Return on equity 17.3% 17.1% 15.5% Return on net earned premiums and service income (before taxes) 6.6% 7.0% 6.5% Combined ratio 1) 94.9% 95.1% 95.6% Growth on net earned premiums and service income 7.7% 9.9% 10.6% 1) Claims and all costs as a percentage of net earned premiums and service income. Mondial Assistance Annual Report 2008 47
  • 52. Worldwide addresses COUNTRY BUSINESS UNIT ADDRESS PHONE FAX WEB SITE Australia Mondial Assistance Mondial Assistance House +61 7 33 05 7000 +61 7 33 05 7007 Australia 74 High Street Toowong QLD 4066 Austria Mondial Assistance Pottendorfer Strasse 25-27 +43 1 52 50 30 +43 1 52 50 3999 Austria 1120 Wien Belgium Mondial Assistance rue des Hirondelles 2 +32 2 290 64 11 +32 2 290 64 19 Belgium 1000 Brussels Brazil Mondial Assistance Al. Santos, 745 2° andar +55 11 43 31 50 26 +55 11 43 31 52 45 Brazil - cj. 22 01419-001 São Paulo - SP Canada Mondial Assistance 4273 King Street +1 519 742 2800 +1 519 742 2581 Canada East Kitchener, Ontario N2P 2E9 China Mondial Assistance 1403-08 Air China Plaza +86 10 84 47 59 66 +86 10 84 47 57 23 (Beijing) 36 Xiaoyun Road, Services Co., Ltd. Chaoyang District Beijing 100027 Czech Mondial Assistance Na Maninách 7 +420 283 002 711 +420 283 002 701 Republic 170 00 - Praha 7 France Mondial Assistance 54, rue de Londres +33 1 53 05 88 69 +33 1 53 05 88 70 France S.A.S. 75008 Paris SEPSAD 2 Boulevard Montmartre +33 1 53 34 16 28 +33 1 53 34 16 29 Société Européenne 75009 Paris de Protection GTS Gestion Télésécurité 81 rue Pierre Sémard +33 1 46 12 12 12 +33 1 46 12 12 14 Services S.A. 92324 Chatillon Cedex TEL2S 81 rue Pierre Sémard +33 1 46 12 12 12 +33 1 46 12 12 14 92324 Chatillon Cedex Germany Mondial Assistance Ludmillastr. 26 +49 89 62 42 41 45 +49 89 62 42 42 44 International Germany 81543 Münich Mondial Assistance GmbH Riedenburger Strasse 2 +49 89 20 801 1028 +49 89 20 801 1900 Deutschland 81677 Münich Greece Mondial Assistance 10 Premetis Str. +30 210 99 58 100 +30 210 99 43 053 Greece Athens - 173 42 India Mondial Services (India) 21st Floor, +91 124 43 43 800 +91 124 43 43 900 Pvt Ltd DLF square M-Block, Jacaranda Marg, Phase-II Gurgaon – Haryana 122002 Ireland Mondial Assistance 2 Bracken Court +353 1 602 7000 +353 1 637 3649 Ireland (ASCI) Bracken Road Sandyford - Dublin 18 Italy Mondial Assistance Piazzale Lodi, 3 +39 02 236 95 1 +39 02 236 95 96 Italia SpA 20137 Milano Japan Millea Mondial Co., Ltd Shinagawa Seaside +81 3 5783 7699 +81 3 3474 6180 South Tower 3F 4-12-1 Higashi-shinagawa, Shinagawa-ku, Tokyo 140-0002 48 Mondial Assistance Annual Report 2008
  • 53. COUNTRY BUSINESS UNIT ADDRESS PHONE FAX WEB SITE Mexico Mondial Servicios S.A. Blvd. Adolfo López Mateos +52 55 53 77 3800 +52 55 53 77 3810 de CV. No. 379 Col. Atlamaya 01760 Mexico, D.F. Morocco * Mondial Assistance Lotissement de la Civim +212 22 95 93 00 +212 22 95 93 37 Morocco (ISAAF S.A.) lot n° 131 Route de l'aéroport QI Sidi Maârouf Casablanca Netherlands Mondial Assistance Poeldijkstraat 4 +31 20 561 87 11 +31 20 561 88 65 www.mondial-assistance- Netherlands Amsterdam 1059 VM Poland Mondial Assistance ul. Domaniewska 50B +48 22 522 25 00 +48 22 522 25 23 Sp. z o o. 02-672 Warszawa Portugal Mondial Assistance Rua Quinta da Fonte +351 21 780 62 00 +351 21 796 54 05 Portugal Edi cio Bartolomeu Dias 2774-535 Paço de Arcos Reunion Island Mondial Assistance 11 rue Roland Garros +33 262 90 99 45 +33 262 90 99 93 Reunion Island (B.S.A.) 97400 Saint Denis Russia Mondial Assistance Timiryazevskaya str., 1 +7 495 661 47 22 +7 495 661 47 21 127422 Moscow Singapore Mondial Assistance 143 Cecil Street +65 6535 3585 +65 6535 5052 Asia Paci c 13-01 GB Building Singapore 069 542 Spain Mondial Assistance Edi cio Delta Norte 3 +34 91 325 54 40 +34 91 325 54 43 Spain Avenida de Manoteras 46 bis Madrid 28050 Switzerland Mondial Assistance Hertistrasse 2 +41 44 283 32 22 +41 44 283 33 83 International Switzerland 8304 Wallisellen Mondial Service Bolligenstrasse 54 +41 31 340 05 00 +41 31 340 05 55 Switzerland 3006 Berne Thailand Mondial Assistance 29th Floor, Thanapoom Tower, +66 23 05 85 55 +66 23 05 85 56 Thailand 1550 New Petchburi Road, Makasan Rajathevi, Bangkok 10400 Turkey Mondial Assistance Buyukdere C Enka Binasi 108 +90 212 337 43 37 +90 212 337 43 38 Turkey Kat 10 Esentepe Istanbul 34394 UK Mondial Assistance 102 George Street +44 208 681 25 25 +44 208 603 02 15 UK Croydon Surrey CR9 1AJ USA Mondial Assistance 2805 North Parham Road +1 804 285 3300 +1 804 673 3570 USA Richmond, VA 23294 * Special partner
  • 54. 37, rue Taibout 75009 Paris, France Tél. : +33 1 53 25 53 25 Fax : +33 1 53 25 54 04 Mondial Assistance SAS © Mondial Assistance - May 2009 - Production: Group Communications - Concept & design : SEQUOÏA FRANKLIN - Texts: Dixit - Photos: Jupiter Images, Getty, Van Beek image, Mondial Assistance, Jean Lionel Dias. Printed by IME on 100% PEFC paper from sustainably managed forests. ISO 14001 certified production process