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Economic situation
2009 was mainly marked by the world eco-
nomic crisis. In this unfavourable situation
the economic position of consumers and
businesses deteriorated considerably.
Except for Asia (powered by China)
and Brazil, the car market was greatly
affected by the crisis. New vehicle sales fell
except in France and Germany where gov-
ernment measures were introduced.
The travel industry was also very much af-
fected by the economic crisis and by the
impact of the swine fl u epidemic. According
to the World Travel and Tourism Council, the
contribution from tourism to GDP fell from
9.6% in 2008 to 9.3% in 2009, and ac-
cording to Euromonitor the number of trips
made was down 8%, with the number of air
tickets dropping by 14%.
The impact of the crisis was very marked
in Europe, North America, Mexico and
Russia.
The Group’s activity
In spite of the diffi cult economic situ-
ation, total Group sales which came to
1.7 billion euros were up 5% compared
to 2008. Business in Europe was most
affected by the crisis with growth of
around 2% whereas growth areas in
Asia and the Americas posted two fi gure
growth rates of 18 and 17% respectively.
With sales of 790 million euros, up 4%
nearly on 2008, travel insurance prod-
ucts accounted for 47% of total sales.
Roadside assistance sales were sta-
ble at 623 million euros. Sales of health
products were up by 18% while property
damage products increased by almost
30%.
REVIEW OF OPERATIONS
FOR THE YEAR 2009
Report on the activity of the Group and its subsidiaries in 2009
The contribution by Mondial Assistance
France, World Access Inc. in the USA
and Mondial Assistance Australia ac-
counted for 44.3% of total sales in 2009,
against 41% in 2008.
In France, travel insurance sold online and
new customers in the automotive sector
made up for the erosion in rates seen on
traditional markets. In the USA, growth was
driven by online sales and by a new product
covering the cancellation of event tickets.
In Asia, Australia posted strong organic
growth in travel and health insurance
while the China portfolio reached the
critical size of 16 million euros.
Operational result
The Group’s operational result came to
94 million euros, down 14.2% compared
to 2008 but in line with budget.
The change is due to the deterioration in
the combined ratio resulting from a rise
in insurance claims offset in part by strict
control of internal costs.
The rise in claims was felt in travel in-
surance in particular where the volume
of cancellations increased signifi cantly
in the first part of the year because
of the reduction in consumer purchasing
power. In addition, an increase in claims
was seen in roadside assistance in the
second half and was even more marked
in the last quarter in continental Europe.
The contribution by Mondial Assistance
France accounts for 32% of the total op-
erational result against 38% in 2008 and
the contribution by the Americas now
represents 26% of the total operational
result against 14% in the previous year.
Asia continues to grow, with a contri-
bution to the Group’s operational result
reaching 10% against 9% in 2008. Addi-
tionally, in Germany, a loss-making con-
tract with a tour operator is the reason
for the 2009 technical loss. In Portugal
the Group continued to turn round loss-
making business begun in 2008.
Investments and fi nancial
result
At end December 2009, the Group’s port-
folio came to 603 million euros which is
39.8% of assets, up 4% on 31 December
2008. Investment policy continues to favour
short term placements with a low risk profi le
(bonds, short term deposits).
The operational fi nancial result came to
27.9 million euros, down 0.7 million euros
compared to 2008. The result from invest-
ments fell by 11 million euros which was
in line with the decline in fi nancial yields.
Book profi ts from fi nancial management
fell from 4.25% in 2008 to 2.92% in 2009.
The impact of negative exchange rates
of -8.2 million euros in 2008 was up at
+1.8 million euros end 2009.
Net result
After the tax charge (38 million euros)
and a non operational result of 2.3 mil-
lion euros mainly from investments, the
Group’s net result came to 56 million
euros, down 10.5% compared to the
2008 fi nancial year.
Profi tability
On the basis of an average amount of
equity of 393.9 million euros, the return
on equity for 2009 came to 14.2%.
28 Mondial Assistance / ANNUAL REPORT 2009
FINANCIAL RESULTS