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2Mondial Assistance Annual Report 2008
2008: Growth in a troubled environment
Despite the current economic environment, the tourism market continued to grow slightly, but then slowed due to the volatile
world economy. The automotive industry took a real beating from the compounded effects of the crisis. The financial sector,
also seriously shaken, lost some important players, while a new financial landscape, though still in flux, begins to emerge.
In this complex, unstable context, competition remains fierce on the markets and continents where we are present.
Nevertheless we actively pursued growth in all regions where we currently operate, often despite unfavorable exchange rates.
Our efforts paid off because 2008 proved to be another strong growth year, + 6% with an operating profit of 106.1 millions
euros. Our excellent profitability, with a combined ratio of 94.9%, is the result of our strict, long-term cost control policy.
Innovation and sharing best practices – at the heart of our success
Our four business lines all contributed to sales growth. Tourism activities account for 48% of Group turnover, nearly 50% of
which is generated by e-tourism. The automotive business still represents 39% of overall sales, and today, health & lifecare
services constitute the Group’s third mainstay for development.
Geographic expansion leads to more balanced international sales
We registered our strongest geographic expansion in the Americas (Canada and Brazil) and the Asia Pacific (Japan and
Australia). Both regions, which represent 19% and 9.5% respectively, contribute more and more to Group turnover. In Europe,
71.5% of Group sales, Italy, Belgium, Spain and France registered the strongest growth. Five countries from three continents
(France, USA, Italy, Australia and UK) together represent 57% of Group turnover. This weight illustrates our objective to achieve
more balanced, international sales.
A new subsidiary joins the Mondial Assistance family
We continued to expand in Eastern Europe in 2008 and opened a subsidiary in Moscow, confirming our investment strategy in
BRIC countries (Brazil, Russia, India and China). This geographic expansion strengthens our relations with global customers and
demonstrates our firm commitment to partners who wish to offer innovative, top quality services in every corner of the world.
2009: What lies ahead
Given the international context, we expect 2009 to be a difficult year. However, when signs of the crisis first appeared, we quickly adjus-
ted our strategy to limit costs and help absorb the impact. Today, our policy to balance risks, geographically and in terms of products
and distribution channels, is undeniably one of the Group’s solidifying factors as it allows us to absorb some of the negative effects of
the crisis. While we remain focused on our immediate future, we are also preparing our long-term growth comeback. By launching stra-
tegic initiatives outlined in our ambitious “2015 plan”, we will be able to double our turnover. In 2009 we will further develop synergies
Editorial
Breaking from the string of bad news, we are proud to present
our 2008 results. They aptly refl ect the energy and commitment that
the 9,817 talented people who make up our Group demonstrated this past year.
Together, they embody our business mission and passion - helping people,
anywhere, anytime. Our turnover was 1.597 billion euros, up 6%, and our net return
was 62.6 million euros, +9.6% over 2007 ! These results clearly reinforce
our leading world position in assistance and travel insurance.