Mutual insurer MAIF focuses on more than 30
“Now is the time to be ambitious in the face of challenges ahead” launched MAIF managing director Pascal Demurger during the presentation conference of the mutual insurer’s new 2023-2026 strategic plan.
It should be taken into account that there are many problems in the insurance sector, the increase in the price of insurance, “tolerable” According to Pascal Demurger, the increase in the frequency of claims, inflation and an uncertain macroeconomic environment are associated with the sometimes rapid transformation of the use of insurance. In managing the workforce, MAIF faces the need to make sense of how to operate in a very tight job market.
Frustrated business world
“It is surprising to see a project aimed at increasing working hours in a context where companies are struggling to make work attractive, where work is not central to people’s aspirations” Pascal Dumerger was surprised when asked about the pension reform. In any case, the question of job attractiveness and combating the “big resignation” in a disillusioned business world is one of the strategic issues for MAIF.
The status of a company with a mission also requires the payment of environmental dividends, i.e. mobilizing 10% of net profits each year (ie 10 million to 15 million depending on the year) for prevention measures or biodiversity programs. serves as an argument for attracting and retaining talent.
Compared to the 50% redistribution rate for shareholders of listed insurers, the effort may seem modest. But the mutualist likes to remember that its philosophy is to put members first over profit. “At rates 25% below the industry average”.
Rejuvenate the portfolio
This strategy also aims to acquire new customers, as MAIF intends to rejuvenate and become its customer portfolio “thirties’ favorite insurer”. The insurer has a good image, largely inherited from its status as a teacher insurer and its action in 2020 to return €100 million in car premiums to its members when it was arrested. The insurer has also been ranked number one in 2022 for customer relationships across all sectors for several years.
But it will need to invest in new offerings (especially for the self-employed) with efficient customer journeys. “Thirty-year-old goal sets us the highest standard”, Pascal Demurger reckons. Currently, a quarter of the portfolio is under 30 years old, and 40% of applicants are in their thirties.
With 4 million members (+200,000 on average per year), a turnover of €4.5 billion (+15%) and a share capital that has doubled to €3.5 billion in ten years, the insurer has the means to match its ambitions. But this year, not surprisingly, the net result should show a sharp decline to €100 million after a difficult year for non-life insurance. In 2022, the combined ratio (losses compared to premiums) should exceed 100%, and MAIF has set a target of an operating ratio of less than 30% by 2026.
140 million recapitalization of SMACL
Finally, there is the mutual insurer “defeat” its boundaries, i.e. exploring diversification in insurance, but also insurance-related services, such as health. This could be through partnerships already developing (slowly) with AG2R, but also through external growth deals such as the acquisition of an 82% stake in e-tailer Camif.
MAIF has also pushed its pawn into the world of local authority insurance by acquiring 70% stake in SMACL, one of the segment heavyweights. The bill is probably heavier than expected. Undoubtedly, this subsidiary, which was bought at the price of its net assets, was recapitalized up to 140 million manats to cover the losses of 2022. Thus, MAIF imposes on him a proper cleaning of the portfolio (increasing tariffs, more selective subscriptions). ) with the goal of returning to profitability in 2024-2025.
The insurer was also approached by the Orpéa file, the group of nursing homes at the center of the scandal, to seek new funding under the guidance of the Caisse des dépôts. But in this matter, MAIF will not “Without comment”.