PARIS, Sept. 19, 2001 (PRIMEZONE) -- AGF (Paris Stock Exchange:AGF):
At today's meeting of the Board of Directors, Mr. Jean-Philippe Thierry, elected Chairman of AGF by the Board of Directors following the General Meeting of Shareholders of 5 June, presented strategic directions for the next several years.
It will consist of optimizing capital allocation in the Group in order to reduce the volatility of results and creating the resources needed for lasting and steady growth in profitability.
This direction will occur in the context of social dialog, as conducted in our company for many years, thereby contributing to the cohesiveness of the Group.
The Chairman recommended to the Board that 4 strategic areas be targeted in France and all countries under AGFs responsibility:
1. Creating a global financial services group (life insurance, asset management, banking)
-- Using multiple distribution channels to reach customers the assurfinance strategy already in place, AGF intends to be a financial services leader by developing its networks and providing them with the resources they need (in customer relationship management, product lines, etc.) to increase multiple product ownership. This strategy will place priority on Group products and services. Banque AGF, which has 130,000 customers and manages assets of 725 mn euros will be crucial to the success of this strategy. Likewise, AGF plans to strengthen its leadership in group insurance by expanding its product offer and developing or strengthening new businesses such as group health and employee savings. Lastly, AGF will build its domestic presence in private asset management and life insurance through the Allianz acquisition of Dresdner (Dresdner Gestion Privee and AVIP) and reinforce its position as the 7th asset manager in France with nearly 60 billion euros of assets under management by combining the activities of AGF Asset Management and Dresdner RCM Gestion.
2. Increasing non-life profitability and reducing volatility dramatically,
-- In the Marine-Aviation-Transport world market, AGF and Allianz are reorganizing their activities into a joint entity. The operation will involve AGF selling AGF MAT (250 mn euros in half-year premium income, 110 mn in allocated capital) to Allianz, thereby lowering the volatility of non-life results and freeing up additional capital for insurance businesses with recurring profitability;
-- In global Corporate Risk, AGF has reaffirmed its intent to rely on Allianz Global Risks. Using reinsurance pooling and expertise and resources shared with Allianz, as well as aggressive on-going rate increases, AGF plans to significantly reduce its combined ratio over the next several years;
-- In local businesses (individual, small and mid-sized businesses and auto fleets) where products are distributed by brokers and general agents alike, AGFs course of action will lead to service offers that enable it to hold market share, increase rates, and reduce costs so profitability rises significantly.
3. Strengthening the multidistribution strategy:
-- AGF will continue expanding its bancassurance partnership with Credit Lyonnais and develop other methods of distribution (mail order, e-business and prospective agreements with mass market retailers).
4. Increase positions in specialty businesses: credit insurance and assistance
-- The merger of Euler and Hermes will create the worldwide credit insurance group of reference with complementary geographic and business strength. AGF expects to create significant value for shareholders, with the integration strengthening profitability and giving rise to steadier profits.
-- And lastly, in Assistance, AGF plans to be the worldwide market reference in high potential businesses. Already present in 28 countries on 5 continents, Mondial Assistance has been strengthening its positions through external growth since 2000.
AGF stays on course and establishes the following objectives:
-- a 15% return on allocated capital in 2002, under normal market conditions
-- a 2 point annual reduction in the combined ratio,
-- steady development of savings and asset management revenue.