Mixed rebound for BNP Paribas’ insurance business

Headquarters of BNP Paribas Cardif.

This Tuesday, February 8, BNP Paribas published its financial statements for 2021. The insurance business is returning to growth without returning to 2019 levels.

Comparing the 2021 and 2020 financial years can be complicated, as the year 2020 was hit on the commercial level. This is even truer for insurers whose economic model is based on a multi-partner strategy such as BNP Paribas Cardif. Insurance is also one of the group’s priority segments, along with asset management. As such, institutional and private management rather did well in 2021.

Looking at the figures published by BNP Paribas, we can only see an increase in the insurance activity of the banking group in 2021 compared to 2020.

However, it is far from returning to the heights of 2019. In this pre-pandemic era, the net banking income of its insurance activity exceeded 3 billion euros. It then weighed 6.9% of the group’s total GNP.

In 2021, insurance NBI reached 2.827 billion euros, or 6.1% of BNP Paribas’ activity. Few details on the behavior of the various branches in 2021. At most a laconic sentence evoking “the good performance of the Protection business, particularly in France, (offset by the impact of the increase in claims)”. For savings, the summary of the year is limited to a “high contribution”. It should be noted, however, that gross savings inflows soared by 42.2% to 25.7 billion euros, driven by the French, Italian and Luxembourg markets.

Earnings before tax down slightly

Despite the 3.7% increase in NBI between 2020 and 2021, pre-tax income decreased slightly to 1,368 million euros (-1%), i.e. a level close to 2016. 5.5% management, “in connection with the rebound in activity and targeted projects”concludes the banking group.

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