Mondial Assistance Annual Report 2008


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Mondial Assistance Annual Report 2008

  1. 1. Annual report 2008
  2. 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. 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. 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. 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. 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. 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. 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. 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. 10. Lines of business 6 Mondial Assistance Annual Report 2008
  11. 11. intervention 1 every 2 seconds 250million beneficiaries 24/7 365 days per year Mondial Assistance Annual Report 2008 7
  12. 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. 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. 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. 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. 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. 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. 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. 19. “Helping people, anytime, anywhere for a simpler, safer and more secure life” Mondial Assistance Annual Report 2008 15
  20. 20. International presence 16 Mondial Assistance Annual Report 2008
  21. 21. 9,817 staff members Business units in 28 countries 40 languages Mondial Assistance Annual Report 2008 17
  22. 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. 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. 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. 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. 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. 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. 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. 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. 30. Financial results 26 Mondial Assistance Annual Report 2008
  31. 31. 1,597 million € turnover +6% growth 62.6 million € net profit Mondial Assistance Annual Report 2008 27
  32. 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. 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. 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. 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. 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