2020 Universal registration document and annual financial report - BNP PARIBAS134
3 2020 review of oPerations
3
Core Business results
INSURANCE AND WEALTH & ASSET MANAGEMENT
For the whole of 2020, Insurance and Wealth and Asset Management(1) achieved a positive business drive led by very good net asset inflows, in particular late in the year. Assets under management(2) came to 1,165 billion euros as at 31 December 2020. They were up by 3.8% compared to 31 December 2019 with a very good level of net asset inflows (+54.9 billion euros) and a favourable performance effect (+18.8 billion euros), thanks to the rebound in the financial markets, in particular in the fourth quarter 2020, but an unfavourable foreign exchange effect (-21.8 billion euros). The very good net asset inflows were driven in particular by Asset Management s very strong net asset inflows (40 billion euros) in money-market and medium- and long-term vehicles (in particular in diversified and thematic funds), Wealth Management s very good net asset inflows in Asia and Europe (in particular in Germany), and Insurance s good net asset inflows, in particular into unit-linked policies.
As at 31 December 2020, assets under management(2) broke down as follows: Asset Management (512 billion euros, including 29 billion euros from Real Estate Investment Management), Wealth Management (390 billion euros) and Insurance (264 billion euros).
Insurance showed good resilience and continued its business development. Savings rebounded late in the year, with more dynamic net asset inflows and an increase in the share of unit-linked policies, particularly in France. Protection performed well in France and Asia, and the creditor protection insurance business in France expanded further, thanks to the development of Cardif Libertés Emprunteur. In addition, the business continued to diversify by signing new partnerships (in particular with Brasilseg, a Brazilian leader in life insurance and bancassurance specialist).
(1) Asset Management, Wealth Management and Real Estate Services.
(2) Including distributed assets.
INSURANCE
In millions of euros 2020 2019 2020/2019
Revenues 2,725 3,068 -11.2%
Operating Expenses and Dep. (1,463) (1,500) -2.5%
Gross Operating Income 1,263 1,568 -19.5%
Cost of Risk (1) (3) -55.5%
Operating Income 1,261 1,564 -19.4%
Share of Earnings of Equity-Method Entities 90 167 -46.0%
Other Non Operating Items 31 (15) n.s.
Pre-Tax Income 1,382 1,716 -19.5%
Cost/Income 53.7% 48.9% +4.8 pt
Allocated Equity ( bn) 8.6 8.4 +2.7%
WEALTH & ASSET MANAGEMENT
In millions of euros 2020 2019 2020/2019
Revenues 2,982 3,320 -10.2%
Operating Expenses and Dep. (2,510) (2,682) -6.4%
Gross Operating Income 472 638 -26.0%
Cost of Risk (17) (6) n.s.
Operating Income 455 632 -28.0%
Share of Earnings of Equity-Method Entities 64 57 +12.6%
Other Non Operating Items 65 7 n.s.
Pre-Tax Income 583 695 -16.1%
Cost/Income 84.2% 80.8% +3.4 pt
Allocated Equity ( bn) 2.0 2.1 -4.2%
