APRIL Lyon, 24 January 2017
APRIL delivers 2016 full-year sales
of €861.2m, up 7.9%
- Like-for-like sales grew by 7.4%
- Brokerage activities in Health & Personal Protection have returned to growth
The APRIL Group reported consolidated sales of €861.2m for the year ending 31 December 2016, up 7.9% compared with reported figures for the previous year. Fourth quarter growth came in at 9.2%, demonstrating an improvement in the growth rate each quarter.
APRIL CEO Emmanuel Morandini made the following comments: "The APRIL Group posted record full-year sales of €861.2m. The initiatives carried out over the last fifteen months are beginning to bear fruit, with the Group's brokerage business returning to growth in 2016, including Health & Personal Protection. These results are particularly satisfying in view of the restrictive regulatory environment, as they indicate strong progress in all market segments outside of individual employee health insurance. This is therefore a significant achievement. At the same time, our risk carrying business continues to register steady growth. The return to positive growth dynamics in all our activities, together with measures designed to restore the profitability of loss-making operations and the reorganisation of our international operations launched in December 2016, will serve as foundations to keep up turning the Group's financial performance around".
| IFRS - €m | 2016 | 2015 | Change | Change LFL1 |
| Consolidated sales | 861.2 | 798.0 | +7.9% | +7.4% |
| Brokerage commissions and fees | 485.8 | 473.5 | +2.6% | +1.8% |
| of which Health & Personal Protection | 311.1 | 302.9 | +2.7% | +0.6% |
| of which Property & Casualty | 176.4 | 172.7 | +2.1% | +3.7% |
| Insurance premiums | 375.4 | 324.5 | +15.7% | +15.7% |
[1]Pro forma or like-for-like sales, at constant exchange rates and consolidation scope, adjusted for acquisitions, disposals and changes in consolidation method, as well as exchange rate fluctuations, calculated on the basis of the prior year financial statements converted using the exchange rate for the current year.
Like-for-like sales for the year rose 7.4% compared to 2015. Brokerage commissions continued to grow, up 1.8% to €485.8m, while insurance premiums maintained a solid upward trend with sales of €375.4m, up 15.7% from the previous year.
The Group also benefited from targeted external growth transactions, mostly including the acquisition of Avilog at the end of 2015, GlobalHealth in early 2016 and Bamado in July 2016.
The Group posted a €3.6m impact of exchange rate fluctuations for the year, impacting Health & Personal Protection commissions in the United Kingdom and Property & Casualty commissions (mainly in Brazil, Canada and Colombia).
| 2015 to 2016 sales progression - €m | ||
| 2015 consolidated sales | 798.0 | |
| Impact of exchange rate fluctuations | (3.6) | |
| Acquisitions | 9.2 | |
| Deconsolidation | (1.8) | |
| 2015 like-for-like1 sales | 801.8 | |
| Growth in brokerage commissions and fees | 8.5 | |
| Growth in insurance premiums | 50.9 | |
| 2016 sales | 861.2 |
Sales by division
Changes by type of revenues are as follows:
- Brokerage commissions in Health & Personal Protection amounted to €311.1m in 2016, up 2.7% compared to 2015 based on reported data. Excluding consolidation changes relating to the Avilog, GlobalHealth and Bamado acquisitions, commissions were up slightly by 0.6%. The strong performances of group, loan and personal protection insurance now make up for the losses recorded in individual employee health insurance, following the extension of group private health insurance.
- Property & Casualty commissions came to €176.4m, up 2.1% compared with reported figures for 2015. Excluding the impact of exchange rate fluctuations, commissions were up 3.7% and posted growth for the second year running. Wholesale brokerage continued to grow, specifically in substandard motor, two-wheeled vehicle insurance and the professional range. Travel insurance and assistance activities held up well in a challenging environment and recorded an increase in sales compared with the previous year.
- The 6.8% increase in Health & Personal Protection insurance premiums reflects the momentum in this business, driven by the development of the individual (seniors and self-employed) Health & Personal Protection and expatriate insurance portfolios. It is also related to the growth in group private health insurance portfolios generated by partnerships set up to meet the demand created by the extension of corporate group private health insurance. These solid performances contribute to offsetting the expected decreases in some run-off portfolios.
- Strong growth in Property & Casualty insurance premiums continued, with premiums up €37.5m (30.7%) to €159.6m. This reflects the expansion of our legal protection business and corporate and affinity member operations, in a highly-reinsured risk-carrying model.
| IFRS - €m | 2016 | 2015 | Change | 2015 LFL1 | Change |
| Health & Personal Protection | 527.7 | 505.7 | +4.3% | 512.2 | +3.0% |
| Commissions and fees | 311.1 | 302.9 | +2.7% | 309.3 | +0.6% |
| Insurance premiums | 216.6 | 202.8 | +6.8% | 202.8 | +6.8% |
| Property & Casualty | 336.0 | 294.8 | +14.0% | 292.3 | +15.0% |
| Commissions and fees | 176.4 | 172.7 | +2.1% | 170.1 | +3.7% |
| Insurance premiums | 159.6 | 122.1 | +30.7% | 122.1 | +30.7% |
| Intra-group eliminations | (2.5) | (2.5) | +0.2% | (2.7) | +7.7% |
Quarterly sales
| IFRS - €m | 2016 | 2015 | Change | 2015 LFL1 | Change |
| Q1 | 208.4 | 195.6 | +6.5% | 195.5 | +6.6% |
| Q2 | 221.8 | 206.1 | +7.6% | 206.2 | +7.6% |
| Q3 | 215.1 | 198.5 | +8.4% | 200.1 | +7.5% |
| Q4 | 215.9 | 197.8 | +9.2% | 200.0 | +7.9% |
| Total | 861.2 | 798.0 | +7.9% | 801.8 | +7.4% |
Outlook
Fourth quarter sales trends are in line with Group expectations and enable us to confirm the outlook published for 2016: APRIL estimates that its current EBIT should decrease by 10 to 12% compared to 2015.
Marc Le Doze, Group CFO, will be holding a conference call for financial analysts, investors and the press this evening at 6.00 pm (French time), during which these matters will be discussed in greater detail.
Dial-in details: France - +33 (0)1 76 74 24 28 / United Kingdom - +44 (0)145 2555 566
Please dial in a few minutes beforehand, in order to register, and give the following reference number: 5347 4183.
Upcoming releases:
- 2016 Annual results: 8 March 2017 after market close
- 2016 Annual results presentation: 9 March 2017 at 9.30 am in Paris
- Q1 2017 sales: 25 April 2017 after market close
- Shareholder Annual General Meeting: 4 May 2017, in Lyon
This release contains forward-looking statements that are based on assessments or assumptions that were reasonable at the date of the release, and which may change or be altered due to, in particular, random events or uncertainties and risks relating to the economic, financial, regulatory and competitive environment, the risks set out in the 2015 Registration Document, and any risks that are unknown or non-material to date that may subsequently occur. The Company undertakes to publish or disclose any adjustments or updates to this information as part of the periodical and permanent information obligation to which all listed companies are subject.
Contacts:
Analysts and investors
Guillaume Cerezo: +33 (0)4 72 36 49 31 / +33 (0)6 20 26 06 24 - guillaume.cerezo@april.com
Press
Samantha Druon: +33(0)4 72 00 46 56 - samantha.druon@insign.fr
About APRIL
Established in 1988, APRIL is an international insurance services group with operations based in 31 countries in Europe, America, Asia, Africa and the Middle East, and the leading wholesale broker in France. Listed on Euronext Paris (Compartment B), the Group posted sales of €861m in 2016. Its 3,800 staff members design, manage and distribute specialist insurance solutions (health and personal protection, property and casualty, mobility and legal protection) as well as assistance services, for private individuals, professionals and businesses, by pursuing the ambition APRIL set itself from the very beginning: to change the image of insurance and make it easier and more accessible. Driven by a strong entrepreneurial culture, the group bases its development on four values in support of its customers: building trust, pushing boundaries, innovating and keeping things simple.
Full regulated information is available on our website at www.april.com (Investors section).
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: April via Globenewswire
