Forward-looking solutions For whAt MAtters todAy

2012 I business review

MAlAkoFF Médéric Protection in the name of the common interest

MalakoFF MédérIc In BrIeF

198,000companies

3 millionparticipating employees

2.8 millionpensioners

E9.8bnin contributions

management of Pay-as-you-go suPPlementary Pension schemes

health, disability insurance and emPloyee benefit Plans

3.7 millionemployee plan holders

1.2 millionindividual plan holders

E3.3bnin recurring premium income (46% health, 44% personal risk, 10% retirement savings)

185,000companies

E3.6bnin equity

two historic business lines with one goal

the Malakoff Médéric group has two separate but complementary business lines, namely:

- management of pay-as-you-go supplementary pension schemes for private sector employees (AGirc and Arrco);

- health, disability insurance for more than a century and employee benefit plans for 40 years. Malakoff Médéric targets companies and business sector federations as well as individuals.

capitalising on the strengths of these two business lines, the Malakoff Médéric group has set itself the aim of taking care of people’s health, well-being and ageing well at all stages of life.

a governance structure guaranteeing the common interest

Malakoff Médéric has always had a fully independent governance structure, on the basis of an equitable and mutualist approach.

equitable: administrated in equal parts by representa-tives of France’s 5 main employee trade union confe-derations (cGt, cGt-Fo, cFe-cGc, cFdt and cFtc) and employer organisations (Medef, cGPMe, upa).

mutualist: administrated by representatives elected by members, who therefore govern directly.

these means of decision-making ensure that the interests of businesses and individual plan holders are taken into account and protected.

the Group is organised in accordance with national agreements signed by employee representatives. there are two bodies responsible for ensuring a consistent approach and coordination of the entities that make up the Group.

the association sommitale malakoff médéric (as2m) decides on the main directions to be taken and oversees their implementation, while the asso-ciation de moyens malakoff médéric (a3m) is in charge of implementing these decisions, and brings together all of the necessary human and material resources.

a not-for-Profit organisationMalakoff Médéric does not have any shareholders to pay. All of its surpluses go towards optimising and developing its products and services, implementing its social welfare initiatives and its efforts to help the disabled.

5,700emPloyees

bernard lemée is chairman and danièle karniewicz is Vice-chairman of As2M

as2m board of directors, from left to right:

Yves Blanchet (Medef) / Pascal Milsonneau (FO) / François Puyaubreau (Medef) / Patrick Poizat (CFTC) / Dominique Plumion (CFDT) / Bernard Lemée (Medef) / Danièle Karniewicz (CFE-CGC) / Bernard Daeschler (CGT) / Olivier Robert de Massy (Medef) / Jean-Luc Colin (Medef)

Q&a02 03

how do you see your market? what is malakoff médéric’s aPProach?gs: economic uncer taint ies and concerns about our welfare system are creating very high expectations among our clients, both businesses and individuals. they are all looking to optimise their welfare budgets while limiting their healthcare costs. And they all want access to straightforward information that meets their needs. they want us to be flexible and responsive.

since 2008, Malakoff Médéric has developed an innovative response to its clients’ concerns. on one hand, we propose to companies and business sector federations that they become new “healthcare territories” in order to reconcile employee healthcare and productivity. on the other hand, we act as an intermediary between the French people and healthcare services, by providing support and guidance for our individual clients for both pensions and health and disability insurance.

more Precisely, how do you helP your Pension contributors, for examPle, to PrePare for this life change?gs: our group manages the contributions of 3 mil l ion employees under AGirc-Arrco schemes. Aware of their concerns about their future pensions, we have placed the emphasis on providing high-quality information, also by means of our social welfare initiatives. we offer a personalised response, for example in our “toutM” online customer area and through Malakoff Médéric experts on social media.

what do you ProPose for your Plan holders who want their suPPlementary health insurance to corresPond Precisely to their Personal situation?gs: the national cross-industry agreement of 11 January 2013 will provide a generalised basis for supplementary health insurance for all employees. however, there will still be individual requirements relating to factors such as age, health and family situation. we therefore design our cover so that it meets the needs of each individual and is able to evolve with life events. At the same time, we negotiate with healthcare professionals in order to respond to a concern shared by all of our plan holders, namely reducing how much they have to pay while also ensuring quality standards.

many business owners and human resources dePartments are wondering how to reconcile the health of their emPloyees with the financial constraints they are facing. what do you say to them?gs: businesses no longer want to keep on increasing their employee welfare costs. we firmly believe that this needs to become a source of competitiveness once again. working in partnership with companies and business sector federations,

Malakoff Médéric helps them to become new “healthcare territories”. thanks to our “doser” system, the Group is able to offer active risk managemen t , wh i ch adap t s co l l e c t i v e supplementary health insurance to the actual needs of the company and its employees. we also offer diagnosis, prevention and screening tools. this is beneficial for everyone, both businesses and employees.

what do you suggest for small business owners having to deal with increasingly comPlicated emPloyee welfare regulations?gs: in dealing with these complex regulations, Malakoff Médéric offers straightforward solutions to help small business owners to comply with current legislation. to do this, we provide the support of dedicated sales and management representatives and various targeted management tools. our latest innovation - the single online occupational risk assessment form - is particularly useful considering that, despite it being mandatory, just 58% of small businesses filled in the form in 2012!

to conclude, what added value do you believe malakoff médéric offers?gs: i would say first of all that our equitable, mutualist and not-for-profit nature means that our choices and actions reflect the common interest on a day-to-day basis. i would then say that all of the examples i have mentioned speak for themselves. our strategy of providing innovative solutions for our clients, as well as our financial strength, steadfast commitment to people and society and the efforts of all of our employees, enable us to tackle the issues of today with confidence in order to be able to offer solid and responsible solutions that look to the future.

We act as an intermediary between the French people and healthcare services and help businesses to become “healthcare territories”.

with guillaume sarkozy,executiVe director oF MAlAkoFF Médéric

interView

˝Developing new services, improving our productivity and standards - these are the contributions that Agirc and Arrco ask us to make.˝

expert opin ion

chief operating officer (coo), Malakoff MédéricyAnn chArron,

20%of agirc-arrco pensions

PenSIonS

* “Association générale des institutions de retraite des cadres” for managers and “Association pour le régime de retraite complémentaire des salariés” for all categories of employees

to ensure the governance of the AGirc and Arrco pension schemes, employee representatives signed an agreement on 13 March 2013 that will help to reduce the deficits of supplementary pension schemes. Against this backdrop, Malakoff Médéric is continuing with its rigorous approach to managing pensions, offering effective support and developing innovative information channels for businesses, future pensioners and existing pensioners.

the keys

retirement

to gettingreAdy For

(322,000 downloads), information about all rights acquired during a holder’s career and their estimated retirement age.

- a multi-scheme pension simulator on toutM for a complete overview of a holder’s future retirement and their estimated pension, based on different retirement age assumptions (62,000 individual simulations in 2012).

- chats with pensions experts on toutM every 10 days, to provide personal and detailed analysis of holders’ careers and validation of their pension points earned.

- the “toute ma retraite“ mobile app for active employees. the app, launched in december 2012 on iPhone and Android, is the most comprehensive on the market.

helP for those entering retirementMalakoff Médéric offers those entering retirement its full breadth of expertise to help them deal with this major life change with full peace of mind.

to obtain a comprehensive and fair overview of their pension, plan holders are able to access a number of services via the toutM area, such as viewing pension payments and downloading pension statements or tax certificates. in addition, as the cover provided for employees under health and disability insurance policies does not continue after retirement, Malakoff Médéric offers innovative solutions to provide better protection for people in retirement, such as ma complémentaire santé Peps individuelle and ma prévoyance évolutive. (see p.11)

04 05

Focus

making life easier for businessesthanks to the dedicated portal for businesses on the Group’s website, more than 120,000 employers are able to perform a number of management operations online, such as registering and removing employees from schemes, and notifications of sick leave. this area also provides access to administrative notices in electronic format, such as the single automated decla-ration of employee data (“dAds-u”) and the single declaration of social security contributions (“ducs”).

Malakoff Médéric also allows businesses to prepare the individual Pension Assessment (“bilan retraite individuel” or “bri”) for their employees, which helps employees to prepare for retirement.

raising awareness from the age of 35Malakoff Médéric aims to provide information and reassurance and to answer questions about retirement for all pension contributors.

the Group takes part in awareness campaigns for members of AGirc-Arcco schemes currently in active employment, sending out a newsletter to all new plan holders entering into working life, as well as providing a statement of their pension position every five years from the age of 35.

it specifically offers its clients a number of services:

- malakoff médéric experts available on social media, providing a response within 24 hours.

- the “toutm” personalised area of the website, which provides access to individual pension statements, up-to-date pension points statements

social welfare pension funds: everyday answers

the Group’s pension funds use the resources of the social welfare pension funds (“action sociale retraite”) in accordance with Agirc-Arrco policy for 2009-13 for pensioners and the Group’s pension contributors:

- developing preventive care to enable people to age in comfort (conferences, prevention assessments etc.);

- extending autonomous living at home;

- helping people requiring dependency support at care facilities (around 6,000 beds reserved).

the welfare scheme also helps people in financial or social difficulty. More than 120,000 people have received advice, guidance or financial support.

S65 million of resources dedicated

to social welfare pension funds

> No.1 GROuP in TERMs OF quALiTY OF MAnAGEMEnT - aGIrc-arrco audIt, end-2011

37 regional offices across France

223 employees, including 157 on the ground

the “toute ma retraite” mobile app for those in active work allows people to simulate their future pension, talk to expert advisors and obtain information about their pensions in real time.

business client area. Find out about our dedicated portal for businesses.

Watch the video

59%of employees believe that companies should look after employees’ health beyond the risks relating to safety in the workplace**.

oPtimising emPloyee benefits: solutionsover the last few years, businesses’ employee welfare budgets have continued to escalate. it is now vital to control costs, and one of the items being closely moni-tored is supplementary health insurance: is it possible to optimise cover by taking greater account of the spe-cific requirements of the company or business sector federation? Also, how do you manage health risks correctly while adhering to employee agreements?

in response to these key questions, Malakoff Médéric focuses on four main areas:

adapting plan design in order to ensure increased responsibility Malakoff Médéric offers its business clients the oppor-tunity to review their entire supplementary health insurance cover in order to improve their risk mana-gement. this is what it calls the“doser” approach.this means estimating potential savings on a policy by acting on various areas and identifying the best

* national cross-industry agreement (Ani) of 11 January 2013** source: sociovision/OpinionWay for Malakoff Médéric, november 2011

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in the face of a challenging economic climate, extensive regulation and rising healthcare costs, businesses are looking for ways of optimising their employee welfare while also improving the health and well-being of their employees. human capital is central to their concerns. companies and business sector federations are currently responsible for negotiating a healthcare cost plan for everyone*, making them into genuine “healthcare territories”.

heAlth MakInG eMPloyee

part oF the company’s

cAPitAl

06 07

cover relative to the business sector, while also encouraging employees to behave responsibly.

developing high quality healthcare networksMalakoff Médéric offers all employees of its business clients access to its kalivia healthcare networks: a network of more than 4,200 vision-care providers of high quality services at low cost, and a network of 1,350 hearing aid providers created in 2012. More than 50% pairs of glasses bought by Group policyhol-ders were bought via the kalivia optician network. other networks are planned, in particular a dental network in 2014.

limiting abuse and fraudMalakoff Médéric encourages employees to obtain quotes in order to better control their spending: knowing what share they have to pay and how much more they are paying relative to the regional average. in the future, if policyholders want, the Group will be able to negotiate on their behalf if the quote obtained is much higher than the market rate. Malakoff Médéric can already lower the cost by making a call to vision care providers for which requests are made off the market.

developing preventive care the Group pursues an active preventive care policy in order to manage the risk factors that can damage the health of employees, such as sleep, nutrition and physical activity, as well as risk factors relating to chronic diseases.

financial and social Performance: win/winMalakoff Médéric helps companies and business sector federations to become new “healthcare territories”, where the well-being of employees and the company’s performance go hand-in-hand. the Group is continuing to roll out the prevention and diagnostic tools it has been implementing over the last four years, with an innovative hr policy, based on information (dedicated portal for business clients, see p.5), a range of training programmes, data on absenteeism, a back to work or return to work pro-gramme for employees on sick leave etc. in order to better understand the needs of its business clients, malakoff médéric has updated its “health and well-being in the workplace” survey of 7,000 private-sector employees every year since 2009. the 2012 results confirm that the challenges relating to the workplace are still the primary risk factor in absenteeism and disengagement. the survey has recently been extended to the public sector. each business can also perform a diagnosis of its own major risks using a similar methodology with the “mesure management santé” tool.the results of preventive care services launched for employees - monbilan santé and vigisanté - have been excellent. Monbilan santé, a confidential screening service for individuals, has been offered at the premises of a number of large businesses representing a total of more than 5,000 employees. the benefit of this service in encouraging access to early screening of healthcare risks has been confirmed, particularly in the area of cancer and heart disease. it forms part of the Île-de-France regional health agency’s risk management programme for 2013.

Helping businesses to become

“healthcare territories” means providing preventive

care and screening and encouraging employees

to adopt best practices and responsible behaviour.

> n°1 GROuP in HEALTH insuRAnCE> n°2 GROuP in DisABiLiTY

insuRAnCE

“We need to offer our clients healthcare protection at a reasonable cost with first-class service, providing them with tools to help them to better manage health and personal risk.”

expert opin ion

director of business development, Malakoff MédéricchristoPhe scherrer,

national collective bargaining agreementsTo help business sector federations understand the healthcare challenges relating to their business, Malakoff Médéric offers tailored diagnostic tools and business cover that take account of the specific attributes of the professional sector.

PePs éco active

Find out about the range of supplementary health insurance schemes designed specifically for under 50 employees sMes, which includes risk management tools and a segmented offering, with a broad range of modular cover, the doser approach, regional cover and access to healthcare networks...

mesure management santé (mms) listen to what clients have to say

Focus

Watch the video

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in 2012, Vigisanté - the first disease management programme providing in-company screening and monitoring of high blood pressure through remote medical services - was offered to 22,000 employees in the nord Pas-de-calais region. 4,500 volunteered for screening and around 700 employees with high blood pressure are now monitored in the nord Pas-de-calais and Picardy regions by a medical team. the experiment has been extended to the Picardy region. the second phase of the experiment has begun with the initiation of a medical and economic assessment of the programme, in order to discern whether it can be rolled out across France. the results will be known in late 2013. Attesting to its success, Vigisanté has joined united for health, a pan- european project to assess the performance of remote medicine programmes in europe.

new emPloyee needs: decryPtioncoping with the long term care requirements of a relativethe dependency care requirements of the elderly impact the personal and professional lives of employees looking after them. with the “Pass indépendance” scheme created in 2012, in addition to providing cover for their own future dependency care requirements, Malakoff Médéric offers employees a range of services to provide day-to-day support with managing the dependency care requirements of a relative.

Preparing for your future retirement Malakoff Médéric helps employees to become aware of the need to prepare for a drop in income when they retire, using support tools such as the pensions simu-lator in the toutM client area. the Group also provides more comprehensive analysis through individual Pension Assessments (“bilan retraite individuel” or bri). this gives employees a complete record of their career and the company savings schemes they have benefited from in the past. Malakoff Médéric also helps employees to build up retirement savings in the form of a life-plan supplementary pension scheme within a very flexible framework: “retraite 83 multisupports nouvelle génération”. the company chooses the kind of investment universe it wants to offer its employees, from very safe to self-managed. employees make their choices according to their own financial and family situation.

61%of employees want support in the event of illness in order to help them get back to work*.

* sociovision/OpinionWay for Malakoff Médéric, november 2011

“The aim of the innovative strategy implemented by the Group is to help companies to improve their risk management in keeping with their employee agreements.”

expert opin ion

director of strategy and Marketing, health and benefits, Malakoff Médéric

isAbelle hébert,

14%* of employees look after a relative needing dependency care

malakoff médéric extends the “healthcare territory” concept to business sector federationsPursuant to Article 1 of the national cross-industry agreement (ANI) of 11 January 2013, concerning making supplementary health insurance available to all private-sector employees and inviting business sector federations to begin negotiations*, Malakoff Médéric has increased the support it offers to all business sector federations, with:

- specific governance;

- bespoke cover;

- services that take account of the professional identity of bodies and sector issues: prevention and screening programmes, dedicated welfare schemes etc.

- strategic reporting tools;

- an observatory for the body’s business activities and specific characteristics;

- a dedicated sales team and experienced representatives.

At the end of 2012, the Group had implemented the “healthcare territory” concept for 24 business sector federations.

* if not, businesses are required to ensure that their employees benefit from health cover with a minimum basket of care services no later than 1 January 2016.* Malakoff Médéric “Mesure Management santé” survey, 2012

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08 09

Quatrem: the solution for insurance intermediaries and brokersQuatrem, a company governed by the French insurance code, is Malakoff Médéric’s solution for intermediaries and brokers. With annual revenues of more than €1.1 billion, Quatrem defined an ambitious growth strategy for the next five years in 2012, including risk management and making the Group’s services available. It has achieved its sales targets, with business production of €108 million in 2012 compared with a target of €82 million. In pensions and savings, business production amounted to €49 million compared with an initial target of €33 million. In the future, Quatrem will continue to develop its relations with brokers, primarily by means of strategic partnerships.

the malakoff médéric health and well-being at work Prize, launched in 2012.

The Malakoff Médéric Health and Well-Being at Work prize is awarded to the most innovative employee health and well-being initiatives implemented following a “Mesure Management Santé” assessment (see p.7). Of the 70 companies in the running, the three winners were: Fuchs Lubrifiant France, Viessmann France and l’Institut de Cancérologie Gustave Roussy.

main commercial successes of 2012

in 2012, under difficult economic conditions, the sales teams at malakoff médéric and Quatrem delivered an exceptional performance.

Contracts with business sector federations

- national collective bargaining agreements for engineering firms, engineering consultants and consulting firms (disability insurance for 211,000 employees)

- national collective bargaining agreements for chambers of commerce and industry (disability insurance for 30,000 employees)

- national collective bargaining agreements for casinos (disability insurance for 17,000 employees)

Contracts with business clients

Health and personal risk insurance for

23,000 employees

Health insurance for 16,000 employees

employee savings schemes for

23,000 employees

Health and disability insurance for

1,809 employees

Health and disability insurance for

1,000 employees, including 600 disabled

workershandicapés

Health and disability insurance for

3,075 employees

Health insurance for 3,000 employees

Health and disability insurance for

1,800 employees

Health and disability insurance for

1,312 employees

Health and disability insurance for

1, 000 employees of the regional consular

network régional

Health insurance for 748 employees

86%of French people want a personalised supplementary health insurance policy.*

* source: BiPE, supplementary health insurance observatory, March 2013

Malakoff Médéric ensures that its policyholders - whether employees or individual clients - benefit from high quality health and personal risk insurance services and innovative services at the best cost.Acting as an intermediary between people and healthcare services in France, the Group sets up healthcare networks and in the future will be able to negotiate with healthcare professionals in order to minimise the cost payable by policyholders.

For all of our individual policyholders

clear, transParent and accessible Personal insurance is PossibleFor many people, welfare protection is a complex issue. that is why Malakoff Médéric favours providing information that is straightforward, clear and easy to access, thanks to a solid multi-channel network. For our clients, the “toutM” secure area - with more than 800,000 registered users - can be accessed from the malakoffmederic.com website, on iPhone, iPad and Android. our advisors can also be contac-ted by dialling 3932 - with more than 1.9 million calls made in 2012 - or at our boutiques. Malakoff Médéric’s pensions experts respond to questions from everyone on the dedicated Facebook page, which has around 100,000 fans. Mobile apps - with more than 220,000 downloads - also enable users to value their future pensions, carry out health tests or plan medical treatment. All of these services enable people to make a better assessment of their level of welfare cover and subscribe to the Group’s products and services.

the right

situationProtectionfor each individual

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10 11

healthcare system: follow the guideMalakoff Médéric allows its policyholders to benefit from the advantages offered by its partner healthcare networks and healthcare professional geo-location tools. these services were developed significantly in 2012.

- Malakoff Médéric’s optician and hearing aid provider networks (see p.6) allow policyholders to benefit from negotiated rates in order to reduce the amount they have to pay, while also benefiting from high quality equipment, with an average discount of 40% on lenses and €500 on hearing equipment.

- online guidance tools comparhospit (guide to healthcare establishments) and comparehpad (guide to dependency care homes for the elderly) provide information for policyholders about the qua-lity of healthcare services and a comparison of rates.

anticiPating new needssupplementary plans for specific needswith the national cross-industry agreement (Ani) of January 2013, all employees will benefit from supplementary health insurance, but they will be able to subscribe to a Malakoff Médéric supplementary plan tailored to their specific needs. these policies are available as part of the PePs eco Active range (see p.7) or as part of a bespoke policy with a large company.

cancer: improving day-to-day lifecancer is a disease that affects sufferers’ social and professional lives in many ways. the Group has launched the “Prévoyance cancer” insurance range, providing everyday support that commences as soon as a diagnosis is given. with additional financial sup-port, Prévoyance cancer won the Argus d’or insurance award in 2013.

savings: preparing for the futureMalakoff Médéric enables employees to make addi-tional payments within the framework of Article 83 of the French General tax code (pension savings) to boost their retirement income. the Group also offers the possibility of subscribing to an individual life insurance policy for investment purposes: mon épargne multiprojets.

For policyholders taking out individual cover

cover for everyone: the best coverMalakoff Médéric provides personalised and evolving health and disability insurance cover, allowing for a maximum reduction in the amount out of pocket policyholders while still maintaining the highest quality standards. this is illustrated by two flagship products Ma complémentaire santé Peps individuelle and Ma prévoyance évolutive.

ma complémentaire santé Peps individuelle is based on a modular structure of cover and prices taking account of the age, family situation and budget of the person taking out the policy. it combines optimised coverage, access to the Group’s healthcare networks and use of guidance and infor-mation tools such as geo-location and analysis of quotes given.

ma prévoyance évolutive is targeted at the newly retired and offers cover that is both effective and able to evolve in the event of death or loss of autonomy. the originality and strength of this policy lies in the gra-dual nature of risk coverage and the balance between death benefit and cover.

social welfare insurance funds: listening to the needs of our clientsthe Group is involved in welfare insurance initiatives for the benefit of its policyholders. in 2012, it dedicated more than €10 million of surplus insurance profits to:- boosting support for disabled or sick people to return to work;- facilitate access to insurance for those who do not have any (information about the “Aide à la complémentaire santé” (Acs), providing help to take out supplementary health insurance for those with limited financial resources;

- provide information and raise awareness about preventive health care in the workplace.

auxia : paying tribute to individual personal risk insuranceAuxia, France’s leading provider of funeral expenses cover with 850,000 policies, is a fast-growing company (7% new business*). The Malakoff Médéric subsidiary designs, manages and provides own-brand individual personal risk insurance products for a variety of partner distributors.

*2012 figures

Focus

comparhospit 18,000 patient opinions were added to the online guide to healthcare establishments in 2012.

toutm Find out about the services on offer in this personalised area.

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Prévoyance cancer Find out about the bespoke support solutions offered by Malakoff Médéric.

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ma prévoyance évolutive optimum cover for the newly retired.

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“Our priority is to make using healthcare services easy for our policyholders. We are always working in close partnership with healthcare professionals. “

expert opin ion

director of health insurance, Malakoff MédériclAurent borellA,

FInancIal StrenGtH

Malakoff Médéric, a not-for-profit welfare cover group, needs to be profitable in order to guarantee its ability over the long term to uphold the commitments it has made. this reasoned profitability enables the Group to continue to invest in improving quality standards, developing skills and adapting its products and services to new requirements. it also allows it to strengthen its equity, thereby safeguarding policyholders against any uncertainties, most significantly financial market volatility.

optimisation on all Frontsthe health risk management policy in which the Group has invested over the last three years is begin-ning to pay off. its networks of opticians and hearing aid technicians allow for management of services provided, a reduction in the amount payable by poli-cyholders and access to a broader range of services. the Group’s financial management is designed to obtain a rate of return in keeping with the long-term commitments made, while also minimising the market risks. therefore, despite the fall in interest rates, the rate of return on portfolios increased in 2012 and the outlook for the future is solid.

lastly, the Group has made a commitment to overhauling its it systems in preparation for changes to come. considerable resources have been imple-mented for this investment. this effort will result in the gradual roll-out until 2016 of high value-added client relations.

Careful financial management proving its worth

saFeguardingtHe lonG terM

in 2012, the Group generated income of €192 million, an increase of 15% relative to 2011. in addition to the effect of the stock markets being less negative than in 2011, this performance reflects the ongoing progress made by the Group in a number of areas.

net income of

€192Min 2012

revenue growth (in € million)

recurring revenues

total revenues

3,059 3,1003,259 3,333 3,449

2009 2010 2011 2012

12 13

contributions

cost of claims

other underwriting items

technical margin

recurring management costs

Fees and project management charges (2)

Financial and other contributions

Pre-tax income from ordinary activities

tax on ordinary activities

net income from ordinary activities

exceptional items

net income

2011 pro forma (1)

3,259

- 2,696

64

627

- 325

- 243

145

204

- 37

166

1

167

2012

3,333

- 2,759

79

653

- 336

- 266

171

222

- 34

188

4

192

coMbined incoMe stAteMent(in € million)

the group’s financial management is looked after by Fédéris Gestion d’Actifs, a subsidiary of the Group that manages its listed assets using an sri approach (socially responsible investing), as well as the investment department for real estate, private equity and infrastructure finance. Assets under management amounted to €27 billion at the end of 2012, including €17 billion in the combined scope (insurance), €9 billion on behalf of Agirc-Arrco schemes and €1 billion for third parties.

excellent Financial strengththe confidence of a growing number of clients is reflected by the increase in recurring revenues of 2.3% to €3.33 billion in 2012. Growth was particularly strong in health insurance, at 4.2%.the rise in the Group’s income has also been accompanied by an increase in provisions to enhance the personal risk insurance and retirement savings services provided over the next few years. Provisions for with-profit funds have therefore been increased by an additional €25 million. A provision of €20 million has been set aside for a future rise in pension annuities. the Group’s solvency ratio is 4.9 times the regulatory minimum in terms of solvency 1 and twice the regulatory minimum in terms of solvency 2.

201220112010

solvency margin cover (in € billion)

At the end of 2012, the Group’s solvency margin cover stood at €4.97 billion, representing a solvency 1 ratio of 4.9.

4.04.9

3.6

(1) 2012 pro forma figures take account, relative to 2011, of recurring gains and losses for prior years, as well as stabilisation in financial income over the long term, excluding exceptional items.

(2) The budget for insurance projects was larger in 2012 than in 2011 due to investment in the overhaul of iT systems.

cSr I Hr PolIcy

csr - corporate social responsibility - is central to Malakoff Médéric’s activities, in terms of offering high quality and accessible welfare protection in the form of pensions and personal insurance.

this commitment is guided by an innovative view of the market: “taking care of each person’s health, well-being and ageing well, at all stages of life”. steered by a dedicated committee, Malakoff Médéric’s csr policy is based on precise mapping of the challenges faced:- respecting governance within its equitable and

mutualist framework;- improvement in the offering and client relations;- responsible procurement;- responsible asset management;- responsible institutional and group investment

management;- responsible marketing and communications;- promoting preventive measures among clients;

- respecting codes of ethics and legal requirements;- an efficient approach to social action and solidarity;- concern for the environment in the Group’s operations.

csr issues are taken into account in devising products and services based on risk management and developed for the benefit of the Group’s clients. they also continue to be factored into all of its activities and internal functions. For example, the majority of innovations developed by the strategy department - from prevention to help with returning to work - are offered internally to all employees. this helps to improve Malakoff Médéric’s own csr approach.

develoPment of emPloyees in suPPort of the grouP’s strategy the Group provided training support for 2,970 employees - equal to one in two employees - across all areas covered, namely management, project management, corporate social responsibility, business activities and other areas. the Group also continued to encourage internal transfers in order to forge stronger links between its business lines. 75% of permanent positions are filled internally. consolidation of the internal resources transfers department continued. this department, which acts like an internal interim employment agency, allows employees wanting a change to work in different departments: 63 “interim” staff therefore took on 171 assignments. 27 “interim” staff turned their temporary assignments into perma-nent positions.

sensible management with a Personal aPProachA total of 256 managers have been trained in areas such as management practices, handling difficult

situations, employee law, stress in the workplace and communications techniques... the results are clear: according to the 2012 employee satisfaction survey, 78% of employees have confidence in their manager (an increase of 10 points relative to the 2010 survey).

Promoting diversity to boost Performancethe Group firmly believes that in order to perform well, a company needs to reflect the diversity of today’s society and hence of its clients. in 2012, it initiated procedures to obtain the AFnor diversity label. the Group’s aim is to make a concrete and effective com-mitment to preventing discrimination. this approach is also a way of demonstrating the quality of some of its practices. this commitment is reflected by its policy of supporting disabled workers. in 2012, 6.10% of employees were registered disabled.

in 2012, the human resources department focused on three main areas in order to reconcile employees’ personal development and the performance of the organisation.

> 5,700 EMPLOYEEs

> 462 PROMOTiOns

> 8,000 TRAininG COuRsEs

> 840 inTERnAL TRAnsFERs

> 6.10 % OF DisABLED EMPLOYEEs

at malakoFF médéricresPonsibility

corPorAte

the grouP’s Hr PolIcy

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the second volume of “bien déjeuner dans ma boîte” was released in october in bookshops and malakoff médéric boutiques. the cookbook contains 70 easy, low-cost and tasty recipes to help employees prepare heart-healthy lunches. All proceeds from sales of the

book go to the Fédération Française des banques Alimentaires.

14 15HIGHlIGHtS oF 2012

Malakoff Médéric won a number of awards for its innovations in 2012. Find out more on: www.malakoffmederic.com/rapport-annuel-2012

tAkinG cAre oF society, well-being and ageing wellFocus on highlights of 2012

two PoPular healthcare networks

Prize-winning initiatives

20 innovative boutiQues

a 20th boutique in 2012, 26 planned for 2013, and micro-boutiques soon to come, all designed to provide a place for individuals to talk and obtain information.

long term care and critical illness cover

two types of cover to meet today’s needs, with: - “Pass indépendance” to help employees looking after a loved one needing dependency care.- “Prévoyance cancer” to provide support as soon as the disease is diagnosed, particularly in day-to-day life.

launch of PePs éco active

PePs éco active, a range of environmentally- friendly healthcare products that enable sMes to reconcile the health of their employees and control of their welfare protection budgets.

malakoff médéric was awarded the 2012 prize for employee-led innovation for its internal “initiative awards”, open to all employees to reward creative ideas for new products and services, com-munications and client relations, receiving more than 1,200 ideas in the space of seven weeks!

malakoff médéric won first prize at toP com consumer 2012 awards for the “tout M” ipad app, which allows its clients to access their policy information and detailed health records.

success of malakoff médéric’s healthcare net-works, with 4,200 vision care and 1,350 hearing aid provider partners, all of which are committed to providing the highest quality equipment at the lowest price, all over France.

handisPort suPPorters’ club: 130,000 fans

the handisport supporters’ club on facebook had 130,000 fans and 17 million friends at the end of 2012. the club was set up in partnership with the Fédération Française handisport on the occasion of the Paralympic Games in london to support disabled athletes.

bien déjeuner dans ma boîte (volume 2)

two community PartnershiPs

renewal of the partnership with unis-cité allowing young people in civic service to help their elders to learn about new information technologies, as part of the “Passeurs de mémoire” inter- generational programme.

signature of a three-year partnership agree-ment with Les Petits Frères des Pauvres to set up new teams of volunteers to help vulnerable elderly people.

Able to Answer your questions for what matters today

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Registered office - 21 rue Laffitte 75009 Paris - malakoffmederic.com

> > on www.malakoffmederic.com> > In France by telephone: 3932

Monday to Friday from 8.30 a.m. to 9.00 p.m., saturday from 9.00 a.m. to 6.00 p.m. (apart from public holidays), price of a local call excluding any additional costs charged by your operator

Business presence

Social welfare service centre

Stores

Stores opening 2013

Micro-stores opening 2013

More information about the annual report online: www.malakoffmederic.com/rapport-annuel-2012

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Paris-Tolbiac

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Évry

Boulogne-Billancourt

Paris-Nation

Paris MontparnasseParis St-Lazare

Amiens

Annecy

Besançon

Caen

Chalon-sur-Saône

Chambéry

Charleville-Mézières

Clermont-Ferrand

Dijon

Lorient

Limoges

Montpellier

Perpignan

Pau

Reims

Roanne

Rouen

Toulouse

Tours

Troyes

Valenciennes

Valence

Le Havre

Le Mans

Metz

Saint-Étienne

Marseille

Rennes

AngersNantes

Bordeaux

Lyon

Grenoble

Nancy

MontbéliardOrléans

Dunkerque

Lille

Nice

Strasbourg

Maisons-Alfort

Cergy-Pontoise

Paris-Laffitte

Aulnay-sous-Bois

Paris-Tolbiac

Saint-Quentin-en-Yvelines

Évry

Boulogne-Billancourt

Paris-Nation

Paris MontparnasseParis St-Lazare