H1 2018 results
Growth in main financial indicators at end June

  • Sales up 7.5% to €492.1m (up 7.0% like-for-like[1])
  • Gross margin[2] up 4.0% to €221.6m
  • Current EBIT up 10.6% to €42.2m
  • Net income (group share) up 15.4% to €27.5m

Annual target maintained

 The APRIL group posted H1 2018 consolidated sales of €492.1m, up 7.5% as reported compared to the previous year, and current EBIT up 10.6% to €42.2m.

Following this announcement, APRIL group CEO Emmanuel Morandini made the following comments:  

"First half 2018 results confirm our growth momentum, as we posted strong performances across most key financial indicators and strategic businesses, especially in French and international health and personal protection and in niche P&C insurance.

In order to maintain these positive trends, we will to continue to realign our business activities and optimise performance. Furthermore, the group's transformation is underway. We continue to refocus on business lines that generate the highest value-added and keep developing our partnerships and acquisitions, such as the acquisition of la Centrale de Financement.

All of these factors allow us to maintain our current EBIT growth outlook of 6 to 10% in 2018."


Group (IFRS - €m) H1 2018 H1 2017 Change
Consolidated sales 492.1 457.7 +7.5%
PF: +7.0%
Brokerage commissions and fees 261.0 257.0 +1.6%
PF: +0.8%
Insurance premiums 231.0 200.7 +15.1%
PF: +15.1%
Gross margin 221.6 213.1 +4.0%
Financial income 5.5 4.5 +21.9%
Current EBIT 42.2 38.1 +10.6%
EBIT 42.3 37.7 +12.4%
Net income (group share) 27.5 23.9 +15.4%

The Board of Directors met on 6 September 2018 to approve APRIL's statutory and consolidated
half-year financial statements. The statutory auditors have conducted a limited review of the financial statements and the financial report may be consulted on the group website.

APRIL posted consolidated sales of €492.1m for the first half of 2018, up 7.5% as reported from the same period last year.

2017 to 2018 sales progression - €m  
Consolidated sales at 30/06/2017 457.7
Impact of exchange rate fluctuations -3.4
Acquisitions +5.8
Disposals -0.3
Like-for-like sales at 30/06/2017 459.8
Growth in brokerage commissions and fees +2.0
Growth in insurance premiums +30.3
Consolidated sales at 30/06/2018 492.1

Like-for-like sales (€459.8m for the first half of 2017) offset a €3.4m negative impact of exchange rate fluctuations, mainly affecting Property & Casualty commissions in Brazil, the United States and Canada.

Like-for-like sales also include a +€5.5m net change in consolidation mainly arising from the consolidation of Public Broker in May 2017 and Benecaid in April 2018, incorporated into the Health and Personal Protection division, as well as Pont Grup in October 2017 in the Property & Casualty division.

Accordingly, at constant consolidation scope and exchange rates, insurance premiums increased 15.1% to €231.0m. Brokerage commissions rose slightly to €261.0m, up 0.8% like-for-like, reflecting 1.2% growth in Property & Casualty and flat sales in Health & Personal Protection (up 0.4%).

The gross margin increased 4.0% to €221.6m. This growth was driven both by brokerage (up 3.2% to €192.0m) and risk-carrying activities (up 9.9% to €29.6m).

Net financial income amounted to €5.5m, up €1.0m. This figure includes €2.2m in capital gains on the sale of financial assets, compared with €0.1m in H1 2017.

Current EBIT amounted to €42.2m, up 10.6% compared to the previous year and in line with 2018 targets. This growth was mainly driven by Health & Personal Protection, which benefited from strong momentum in French and international health insurance, as well as the acquisitions carried out in 2017 and 2018.

EBIT amounted to €42.3m, up 12.4%. No material non-recurring items were recorded during the period.

Benefiting from current EBIT growth and an effective tax rate down 2.4 pp to 33.3%, net income (group share) amounted to €27.5m, up 15.4% from €23.9m in H1 2017.

Health & Personal Protection

Health & Personal Protection (IFRS - €m) H1 2018 H1 2017 Change
Consolidated sales 302.3 282.5 +7.0%
PF: +5.9%
Brokerage commissions and fees 168.3 164.6 +2.2%
PF: +0.4%
Insurance premiums 134.0 117.9 +13.6%
PF: +13.6%
Gross margin 137.7 131.8 +4.4%
Financial income 5.4 2.8 +89.8%
Current EBIT 43.5 37.8 +15.1%

The Health & Personal Protection division reported a 7.0% increase in sales comprising a 2.2% increase in brokerage commissions as reported (up 0.4% like-for-like) and a 13.6% increase in premiums as reported and like-for-like.

The increase in insurance premiums was driven by strong growth in individual (seniors and self-employed) health and personal protection and group health insurance portfolios. This strong performance was slightly mitigated by a loss-making local health portfolio in the United Kingdom, now closed. The local health business in the United Kingdom is already being reviewed by group management.

The increase in brokerage commissions was primarily driven by the strong performance in French and international health insurance and direct corporate brokerage activities.

The Health and Personal Protection gross margin increased 4.4% to €137.7m due to the strong performance posted by individual health and personal protection and expatriate health insurance, as well as by the consolidation of Public Broker and Benecaid.

The division's current EBIT amounted to €43.5m, up 15.1% compared to the first half of 2017, primarily due to the increase in the gross margin of risk-carrying operations, the increase in financial income and the optimisation of operating expenses. The streamlining of operations in Italy also contributed to this growth.


Property & Casualty (IFRS - €m) H1 2018 H1 2017 Change
Consolidated sales 191.0 176.6 +8.1%
PF: +8.7%
Brokerage commissions and fees 93.6 93.3 +0.3%
PF: +1.2%
Insurance premiums 97.4 83.3 +17.0%
PF: +17.0%
Gross margin 83.9 81.3 +3.3%
Financial income 0.9 1.3 -34.0%
Current EBIT 5.7 5.4 +5.5%

The Property & Casualty division reported an 8.1% increase in sales comprising flat growth in brokerage commissions as reported (up 0.3% as reported, up 1.2% like-for-like) and a 17.0% increase in premiums as reported and like-for-like.

The continued expansion of corporate, affinity member, travel insurance and assistance operations, carried out in a highly reinsured risk-carrying model, contributes to a strong growth in insurance premiums results.

Brokerage commissions posted strong performances in wholesale brokerage, particularly in car, two-wheeled, sailing and property insurance. However, growth has been curbed by declining portfolios in certain niche markets in Canada and by changes in risk carriers in the United States, which have led to a temporary slowdown in business.

The gross margin, up 3.3% to €83.9m, was mainly driven by the strong performances posted by travel insurance activities in Brazil and wholesale brokerage in France, as well as the consolidation of Pont Grup.

P&C current EBIT amounted to €5.7m, up 5.5% compared to the previous year.


Group (IFRS - €m) 30/06/2018 31/12/2017 Change
Shareholders' equity (group share) 642.4 632.3 +1.6 %
Provisions for contingencies and charges 28.5 30.0 -5.1%
Financial debt
% of shareholders' equity
-0.2 pp
Adjusted net cash[3] 160.4 195.1 -17.8%

At 30 June 2018, APRIL continued to show a healthy financial structure:

  • Consolidated shareholders' equity (group share) of €642.4m, up €10.1m compared to the previous year, and provisions for contingencies and charges[4] down slightly at €28.5m.
  • Financial debt of €36.8m, i.e. 5.7% of shareholders' equity (group share), comprising a loan taken out in 2017 under favourable market conditions and commitments made as part of the group's acquisition policy (earnouts and commitments to buy out minority interests). Over the first half, financial debt decreased primarily due to the repayment of the bank loan.
  • Group net cash adjusted for deposit accounts amounted to €160.4m, compared to €195.1m at 2017 year-end.


The strong performances posted in the first half illustrate the appropriateness of APRIL's strategy. The group will thus continue its refocusing and transformation efforts, drawing on organic growth, a turnaround in loss-making operations and acquisitions in targeted business lines.

Accordingly, on 17 July the group acquired a 49.9% stake in Elitis Protection, a specialist wholesale loan insurance broker in Belgium that makes use of a 100% digital subscription and management solution. This transaction is part of APRIL's strategy to export its expertise to key markets abroad.

APRIL also announced the acquisition of a 54% stake in the third largest loan brokerage network in France, la Centrale de Financement, on 4 September. "This acquisition is a substantial move for the group. As we integrate la Centrale de Financement within the group, we are bridging the gap between loan and insurance brokerage, first for individuals, then for professionals. This transaction will step up the transformation of our group in one of our core markets and our evolution towards an open, multi-brand model", APRIL group CEO Emmanuel Morandini added.

Therefore, APRIL is maintaining its current EBIT growth target of 6-10% versus 2017.

APRIL group CEO Emmanuel Morandini and CFO Emmanuel Maillet will be holding a conference call in French with a live slideshow on Thursday 6 September at 6:30 pm (France). It will be available at www.april.com and will be uploaded for listening the next day (See Investisseurs / Nos actualités financières / Webcasts - audiocasts on the French website).


  • Sales analysis
  • Summary consolidated income statement
  • Summary consolidated balance sheet
  • Summary consolidated cash flow statement
  • Gross margin bridge
  • Adjusted net cash bridge

Release of half-year financial report

The half-year financial report is available to the public as of this day and has been filed on the website of the Autorité des Marchés Financiers. It can be downloaded in French on APRIL's website at www.april.com and on the AMF website (www.amf-france.org).


  • Q3 2018 sales: 23 October 2018 after market close


Analysts and investors
Guillaume Cerezo: +33 (0)4 72 36 49 31 / +33 (0)6 20 26 06 24 - guillaume.cerezo@april.com

Press relations
Samantha Druon: +33 (0)7 64 01 74 35 - samantha.druon@insign.fr

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 2017 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.


In 2018, APRIL-the international insurance services group and leading wholesale broker in France-will be celebrating its 30th anniversary. And at 30 years young, APRIL still has many more years to offer to simplify the lives of its customers and partners-be they individuals, professionals and businesses-in the 31 countries where the group operates. On their behalf, APRIL's 3,800 employees design, manage and distribute specialist insurance solutions (health and personal protection, mortgage, property and casualty, mobility and legal protection) as well as insurance services, capitalising on its experience to make insurance easier and more accessible to as many customers as possible.
Listed on Euronext Paris (Compartment B), the group posted sales of €928.4m in 2017.

Full regulated information is available on our website at www.april.com (Investors section).


Sales by division

IFRS - €m H1 2018 H1 2017 Change H1 2017 LFL Change LFL
Health & Personal Protection 302.3 282.5 +7.0% 285.5 +5.9%
Commissions and fees 168.3 164.6 +2.2% 167.5 +0.4%
Insurance premiums 134.0 117.9 +13.6% 117.9 +13.6%
Property & Casualty 191.0 176.6 +8.1% 175.8 +8.7%
Commissions and fees 93.6 93.3 +0.3% 92.5 +1.2%
Insurance premiums 97.4 83.3 +17.0% 83.3 +17.0%
Inter-division eliminations -1.2 -1.5 +16.4% -1.5 +16.4%
Consolidated sales 492.1 457.7 +7.5% 459.8 +7.0%

Quarterly sales

IFRS - €m 2018 2017 Change 2017 LFL Change LFL
Q1 240.6 227.7 +5.7% 228.2 +5.4%
Q2 251.4 230.0 +9.3% 231.6 +8.6%
Q3 - 232.7 - - -
Q4 - 238.1 - - -
Total - 928.4 - - -


(IFRS - €m) H1 2018 H1 2017
Sales 492.1 457.7
Net financial income (excluding financing cost) 5.5 4.5
Total income from ordinary activities 497.6 462.3
Insurance underwriting expenses (198.5) (167.9)
Income or expenses net of ceded reinsurance (9.3) (10.6)
Other purchases and external expenses (124.9) (124.1)
Taxes, duties and similar payments (13.0) (13.3)
Staff costs (100.0) (99.9)
Depreciation allowance (9.4) (8.5)
Provisions (net of reversals) (0.8) (0.3)
Other current operating income and expenses 0.5 0.4
Current EBIT 42.2 38.1
Other non-current income and expenses 0.2 (0.4)
EBIT 42.3 37.7
Financing cost (0.0) (0.0)
Share of companies integrated on an equity basis (0.1) (0.1)
Income tax (14.1) (13.5)
Net income from continuing operations 28.1 24.1
Net income/(loss) from discontinued operations (0.0) (0.0)
Consolidated net income 28.1 24.1
Share of minority interests 0.6 0.2
Net income (group share) 27.5 23.9
Earnings per share (in €) 0.68 0.59


(IFRS - €m) 30 June 2018 31 December 2017
Intangible assets 314.0 292.0
  of which goodwill 246.2 224.8
Tangible assets 13.0 12.0
Financial investments 678.4 667.2
Reinsurers' share of underwriting provisions 217.9 224.5
Other 23.9 23.2
Total non-current assets 1247.2 1218.9
Receivables from insurance and accepted reinsurance operations 127.3 100.9
Receivables from ceded reinsurance operations 33.2 21.7
Trade receivables 609.3 247.3
Cash and cash equivalents 94.5 107.8
Other 81.8 39.8
Total current assets 946.1 517.5
TOTAL ASSETS 2193.3 1736.3
Shareholders' equity (group share) 642.4 632.3
Minority interests (0.5) (0.2)
Total shareholders' equity 641.9 632.1
Underwriting provisions for insurance policies 623.0 499.4
Provisions for contingencies and charges 28.5 30.0
Deferred tax liabilities 5.2 7.4
Financial debt 36.8 37.5
Total non-current liabilities 693.5 574.3
Current bank loans and overdrafts 37.0 14.7
Payables from insurance and accepted reinsurance operations 73.0 39.1
Payables from ceded reinsurance operations 80.5 51.1
Operating liabilities 462.2 314.6
Other 205.0 110.5
Total current liabilities 857.8 529.9


(IFRS - €m) H1 2018 H1 2017
Net income (group share) 27.5 23.9
Net income/(loss) from discontinued operations (0.0) (0.0)
Minority interest in consolidated companies' net income 0.6 0.2
Net income from continuing operations 28.1 24.1
Cash flow 57.6 42.0
Change in operating working capital (23.1) (16.8)
Operating cash flow from discontinued operations (0.0) (0.0)
Net cash flow from operating activities 34.4 25.3
Net investment in tangible and intangible assets (11.0) (8.7)
Net investment in financial assets (21.1) (13.6)
Net cash flow from acquisition/disposal of consolidated companies (23.2) (8.1)
Investment in equity-accounted companies (1.0) -
Investment cash flow from discontinued operations - -
Net cash flow from investing activities (56.4) (30.4)
Capital increase linked to exercise of stock options - -
Capital increase linked to minority interests in consolidated companies 0.0 0.0
Purchase and sale of own shares (0.0) 0.1
Dividends paid out (11.7) (10.9)
Net change in borrowings (1.9) 20.5
Financing cash flow from discontinued operations - -
Net cash flow from financing activities (13.6) 9.7
Impact of foreign exchange rate changes (0.2) (1.3)
Change in net cash and cash equivalents (35.7) 3.3


(IFRS - €m) 30 June 2018 30 June 2017
Sales 492.1 457.7
Financial income of insurance companies 5.6 4.3
Brokerage commissions paid to intermediaries (68.3) (70.6)
Insurance underwriting expenses (198.5) (167.9)
Income or expenses net of ceded reinsurance (9.3) (10.6)
Other 0.1 0.1
Gross margin 221.6 213.1
Of which brokerage 192.0 186.1
Of which risk-carrying 29.6 27.0


(IFRS - €m) 30 June 2018 1 January 2018
Cash and cash equivalents 94.5 107.8
Current bank loans and overdrafts (37.0) (14.7)
Net cash 57.5 93.1
Term deposits 102.9 102.0
Adjusted net cash 160.4 195.1

[1] Proforma or like-for-like (LFL): sales at constant consolidation scope and exchange rates. This figure is 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.

[2] Gross margin allows a comparison between the various brokerage business models and the insurance businesses and shows the contribution of each business to group value-added:
-           With regard to brokerage, gross margin is the difference between (i) commissions recognised under sales and (ii) commissions paid to intermediaries recognised under purchases and external expenses.
-           With regard to risk-carrying operations, gross margin is the sum of the underwriting result and the financial result.

[3] Adjusted net cash = Cash and cash equivalents - current bank loans and overdrafts + deposit accounts registered in the name of APRIL (classified under "Financial investments" on the balance sheet)

[4] The company received a notice of audit initiated by the authorities on the group's reinsurance operations. At this stage, and as stated in the notes to the half-year financial report, no provision has been recorded in the financial statements for the period ending 30 June 2018.