It is a discreet society, but regulated like clockwork. The insurance group Prévoir, 70% owned by four families and 27% by its employees or former employees, has just published a net result of 51.7 million euros for 2022, an increase of 5.1% compared to 2021. The company that was created in 1910 and which self-finances its growth, is small for the sector, but well capitalized. With 790 million euros in equity, its solvency ratio stands at 245%, a figure very comparable to 2021.
One of the group’s special characteristics is its independence. A few buyers took an interest in the company in the 2000s, but without success. It is now a far cry from the capitalist operations that drive the insurance industry. However, the recently observed valuations are something to think about. At the end of 2022, for example, the broker April – which works with the Prévoir group – was acquired by KKR for an enterprise value of 2.3 billion euros. Based on its results, Prevoir can be valued at almost one billion euros. But its capital structure deters potential buyers, including the most voracious. A shareholder agreement that collects more than 50% of the capital actually binds the families that own the company.
The Group therefore intends to apply its original strategy without deviating. “We are positioned on a customer base of popular savers”, says Patricia Lacoste, president of the group. Customers have an average income of two Smics per household for average portfolios of 5,000 to 10,000 euros. Prévoir derives almost 60% of its results from its insurance activities, or almost 30 million euros. One-third of this amount comes from non-life insurance, such as dependent insurance or long-term care, and about two-thirds from life insurance. This activity remains the most important in the group, with 1,400 of its 1,700 employees dedicated to it. 80% of the products are marketed by its network of “standing” sellers, 720 in total.
The fund in euros resists Livret A
In line with its positioning on a risk-averse clientele, the group sells very few units of account, as the contracts constitute 99% of its funds in euros. For the time being, the increase in Livret A tariffs does not pose a threat. “We currently see no exits from our life insurance contracts”, assures the president. And this, even though Prévoir’s Eurofund distributed 1.9% for 2022, against a rate for Livret A currently of 3%. The insurance company has gifted its mathematical determination to be able to increase the dividend this year.
Holding Prévoir, the parent company of the entire group, makes a net contribution of 17 million euros, mainly with the management for its own account of a portfolio consisting of shares and real estate. Finally, asset management, with outstandings of €4.5 billion, of which 10% on behalf of third parties, brought in €4.5 million in 2022.
Independence and self-financing do not mean that the group does not monitor the opportunities that may arise in the market. “No acquisitions are on the agendasays Patricia Lacoste,but if a file comes up, we’ll look at it“. Thus, after acquiring the digital broker AssurOne in 2019, the group had studied the Axéria Prévoyance file, which was finally sold in April to Malakoff Humanis in 2020. However, Prévoir will develop at its own pace. Present in France, Portugal and Vietnam there is currently no question of expanding its geographical scope.management “like a good father” demanded by the shareholders.
