2007 - April

1.0
Management report
Asset management, i.e. the choice of asset categories and
investment vehicles, therefore represents an essential
element for the management of insurance companies.
In order to improve performance levels, the financial
management of the Group’s insurance portfolios is delegated
to a qualified external service provider.
The management of assets and liabilities makes it possible
to maximize the match between the rate of future payments
and the investment of these premiums in various categories
of assets.
Risk assessment
At December 31 st , 2007, APRIL GROUP, through its insurance
companies and primarily Axéria Prévoyance and Axéria IARD,
had a financial investment portfolio with a market value of
309,797 thousand euros, based on the following breakdown:
Liquidity risk:
On account of the Group’s asset-liability management
approach, this risk is not significant.
Equity risk:
The Group’s insurance companies invested 17% of their
portfolios in equities, with the French Insurance and Mutual
Supervisor (Autorité de Contrôle des Assurances et des
Mutuelles) capping this amount at 65% of regulated assets.
As such, the companies have adopted a highly cautious
approach in relation to regulatory requirements.
Investments are made exclusively through UCITS, enabling
a better distribution of risks. These UCITS are based on
shares from various sectors – banking, insurance, mass
retail, cosmetics, industry, etc. – primarily covering Europe,
including France, as well as Japan on an ancillary basis.
In thousand euros Market value % Historical cost
Unrealized capital
gains or losses
Bonds 178,366 58% 183,158 -4,792
Bond UCITS 0 0% 0 0
Bond Total 178,366 58% 183,158 -4,792
Equities 0 0% 0 0
Equity UCITS 51,500 17% 41,654 9,847
Equity Total 51,500 17% 41,654 9,847
Other 25,760 8% 24,729 1,031
Monetary 54,171 17% 53,683 488
PORTFOLIO TOTAL 309,797 100% 303,224 6,573
Of which, Axeria Prévoyance 197,761 64% 194,128 3,633
Of which, Axeria IARD 62,693 20% 60,847 1,845
Of which, other companies 49,343 16% 48,248 1,095
The following table presents a detailed breakdown of the
portfolio’s equity risk exposure by region at December 31 st ,
2007:
EQUITY RISK
EXPOSURE BY
REGION
(In thousand euros)
Foreign exchange risk:
Europe
All of APRIL GROUP’s portfolio is invested in euros, but there
may be an indirect foreign exchange risk on account of the
underlying resources (notably equity UCITS).
The following table presents the portfolio’s exposure to
currency market risks as at December 31 st , 2007:
US
Other
regions
Total
Equities
Equity UCITS 49,328 2,172 51,500
PORTFOLIO TOTAL 49,328 2,172 51,500
% 95.8 % 4.2% 100.0%
FOREIGN EXCHANGE
RISK EXPOSURE
(In thousand euros)
Total %
Financial assets denominated in EUR 305,954 98.8 %
Financial assets denominated in GBP 2,411 0.8 %
Financial assets denominated in USD
Financial assets denominated in other
currencies
1,432 0.5 %
PORTFOLIO TOTAL 309,797 100.0 %
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