Mondial Assistance Annual Report 2008

• 1. Annual report 2008

2. Brand valuesCaring: a passion for peopleWe are people who care about people. Thisis why the rst thing on our minds every day isyour well-being. And to make sure we are getting itright, we listen to you rst to understand what youneed. This open dialogue is second nature to us.Why? Simply because we really do care. An integralpart of our job is acting on our passion for people.At the end of the day, its about helping you andmaking you feel special.Our passion makes the difference. Connected: a globalcommunityWe are as diverse and widespread as you are. In fact,our strength lies in our diversity the essence of ourglobal community. Have you ever wondered whyyou can reach us and rely on us anytime, anywhere?Its simple. Because we are everywhere at all times.Our vast human and technological connectionsand resources make this possible. We use our globalresources to lend a helping hand, wherever youmay be.Our global reach with our local human touch. Proactive: going beyondexpectationsWere never satis ed to just wait for your call. Eachof you and your customers is different. For us, partof helping you is anticipating what you need beforeyou call; and offering solutions that exceed yourexpectations after you call. Solutions that surprise,innovate, and reassure above and beyond the call ofduty. When we put our proactivity to work, what werereally doing is working to improve the way we serveyou, continuously.Creating solutions that innovate and surprise,day in, day out. Professional: expertiseat your serviceWe do not keep our wealth of skills and expertisefor ourselves but make them available to you, when,where and how you need them. Whether you or yourcustomers need the full story, or just the answer, ouryears of professionalism are the foundation of all ourbusiness relationships. We have built a reputation ofexcellence, and are proud that you are a part of it.Our guarantee of excellence at your service. Trust: to earn it everydayTrust has to be earned. We know that. Whetherits towards a relative, a friend or a customer, we canwin your trust only one way by showing you that weare dedicated, honest and reliable every single day.Our goal is to make sure that each one of your livesis safer, simpler and more secure. To do this, earningyour trust comes rst. Trust truly is at the heart ofwhat we do.The heart of who we are. 3. Contents A history of helping people and pro le 01Editorial 02 Key gures 04 Lines of business 06Travel 08 Auto 10 Health & Lifecare 12Property & others 14International presence 16Asia-Paci c 20 Americas 21Europe, Middle East and Africa 22 Financial results 26 Review of Operations for the year 2008 28Financial statements of Mondial Assistance Group 30Consolidated Balance Sheet 32Cash Flow Statement 34Notes to the Consolidated statements 35Report of the Group auditors 43Report of the Statutory auditor 46 Financial statementsof Mondial Assistance AG 44Business years 2007-2008 47 Worldwide addresses 48 4. Group history A history of helping people In 1950 in Switzerland, when people began traveling more, a team of forward thinking business pioneers created ELVIA Travel Insurance. This year marked the beginning of our story in helping people. Twenty-four years later in 1974, SACNAS-Mondial Assistance was founded in France; and our helping reached a new level. The creation of SACNAS-Mondial Assistance paralleled the development of the assistance busi- ness, which, in addition to travel insurance, included roadside, medical and repatriation assistance. In 1979, AGF became a shareholder of Mondial Assistance. During the 80s and 90s, still as two separate entities, (Elvia and Mondial Assistance), we accompanied our corporate clients through their own changes. As they grew geographically, so did we, developing first in Europe and then gradually throughout the rest of the world. In 1995, Elvia joined Germans Allianz Group. In 2000 Elvia Travel Insurance and SACNAS-Mondial Assistance successfully merged and created our group as we know it today. With nearly 80 years of combined experience and know-how, we became the leading world player in assistance, travel insurance and customer services. We acquired World Access in the United States in April 2000 and Worldcare in Australia a year later. In 2006, we launched a new Brand identity and values world- wide. This was a long-term strategic step for us. It showed our dedication to you and your well-being, and reflected our rich, multi-cultural diversity. In 2007 we hit a landmark year. On January 1st, our four French companies Mondial Assistance, France Secours, Elvia and SSC merged to form Mondial Assistance, a unique entity and brand. In doing so, we confirmed and solidified our position in France. And true to our goal to grow internationally, we ope- ned offices in Mexico and India. We also acquired Medvantis, a medical call-centre in Switzerland. We registered our Russian office in 2007 and began operations there on March 1st, 2008. Today, we operate under a unique brand name and speak to you with a single voice. We are present on all 5 continents and feel right at home in the 28 different countries where we are pre- sent. Wherever you go, we are always close by, looking out for you. We are here to make sure you have our help, anytime, anywhere. You our customers, stakeholders and staff members were, are and always will be what our business is all about. ACIF ** A.C.I.F.: Allianz 50%50% Compagnia ItalianaFinanziamenti S.p.A. 5. ProfileMondial Assistance, worldwideleader in assistance servicesand travel insurance40million calls13.5 handled million cases handled 3,500 people assisted every hour Mondial Assistance Annual Report 2008 1 6. Editorial Breaking from the string of bad news, we are proud to present our 2008 results. They aptly reect 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. 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 Groups 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 Groups 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 2 Mondial Assistance Annual Report 2008 7. Mondial Assistance Executive Committee President Rmi Grenier Members Jonathan Ansell Ulrich Delius Didier Lebret Ida Luka-Lognon Laurence MauriceMondial Assistance AG Board of Directors Chairman: Jean-Philippe Thierry Vice-President: Detlev Bremkamp Vice-President Delegate: Franois Thomazeau Members: Dr Manfred Knof Dr Walter GutberletShare capital: CHF 40,000,000 Year of legal foundation: 1999 In 2008, our 9,817 colleagues, the talented people who make up our Group, handled more than 13.5 million cases around the worldacross the Group, and support best practices and knowledge sharing. Its essential that we take full advantage of our innovations, experience and rich resources to strengthen our competitive edge in our traditional business lines. We will look to leverage opportunities in counter-cycle activities, such as healthcare, in innovative products like Consumer Specialty Insurance, and in technology. And we will seize all opportunities in new distribution channels.Wallisellen and Paris, April 24, 2008 Jean-Philippe ThierryRmi Grenier Chairman of the board of directors of Mondial Assistance AGPresident of the Mondial Assistance Executive Committee Chairman and Chief Executive Officer of AGF Member of the Board of Management of Allianz SE Mondial Assistance Annual Report 20083 8. Key figures 2008 in guresTurnover (in million euros)20081,597 20071,508 Turnover per zone2006 1,34419% Americas 9.5% Asia Paci c 71.5% EMEANet pro t (in million euros)200862.6 200757.1 Turnover per LOB200655.948% Travel 5% Property & others 39% AutoCombined ratio (in points)8% Health & Lifecare 2008 94.9 200795.1 Staff per zone200695.225% Americas 14% Asia Paci c 61% EMEATotal staff (number of people)20089,817 2007 9,356 20068,550 4 Mondial Assistance Annual Report 2008 9. The Mondial Assistance family grows! 1st year completed in Hungary Ready to expand in Romania New subsidiary opens in RussiaUnique brand name We implemented a Chinese tag-line reecting our mission and brand promise.2008 rewards for innovation and dedication! The Netherlands, the United States China: Best China Call Centerand Canada adopted the new brand USA: Global Call Center of the Yearname. They now operate under a France: Purchasing Decision Awardunique brand and speak to you with Japan: 3-star Call Centera single voice all around the world. Belgium: Best Assistance Product We launched our new brand Germany: Best in class for Travel Insurance positioning successfully across the Group. 2008 milestonesMondial Assistance Annual Report 2008 5 10. Lines of business 6 Mondial Assistance Annual Report 2008 11. intervention1 every2 seconds250million beneciaries 24/7 365 days per year Mondial Assistance Annual Report 2008 7 12. Lines of business Travel Our historic travel business just keeps booming. We have been helping people and offering travel insurance solutions since the 1950s. Our historic line of business is still growing today and accounts for almost half of our Group turnover. The international tourism industry has grown signicantly since 2005. In fact this trend continued through 2008 when the industry registered +2% growth. e-commerce redesignsOur cover is always the travel business personalised e-commerce has been massively contri- Helping and working closely with you, buting to this development. Many new players have revolutionized the travel industry in the past few years. Low cost carriers have challenged the airline our client partners, whether you are travel agents, brokers, tour operators or online travel specialists, is what we do best. Our aim is to design innova- 48%of Mondial Assistance industry. Online travel agencies have tive, customised, surprising solutions turnover re-invented the way to buy travel. We for you. expect some consolidation in this frag- Some but not all of these tailored mented market; in fact travel industrysolutions include insurance and pro- players think this will be their main chal- tection against lost or stolen luggage, leisure and sports solutions for specific lenge over the next few years. So, when repatriation due to illness, medicalactivities such as skiing, golf; we think of this market change, we seeand hospital expense coverage when holiday accommodation solutions; the opportunity to keep growing, andabroad, reimbursed fares when you or Schengen zone solutions; well rely on our solid position to achieve your customers must cancel a trip due globe-trotter solutions. continued growth. to unforeseen events, and vehicle repair For the second consecutive year inin case of a breakdown. Medical excellence the mark the United States, online sales in 2008 We offer solutions that you can rely on of our commitment exceeded offline sales. Today, all players24/7. Our goal is to make sure you have In 2008, as in previous years, we carried considered, e-commerce represents 35% our help whoever you are, whereverout more than 670,000 medical assis- of the worlds travel market. Comparedyoure from and wherever youre going.tance and repatriation interventions for to this benchmark, we So, rest assured that you can travelyou and your customers. How did we performed extremely worry-free and receive exactly the travel do this? Thanks to our multi-lingual, tra- well, and reported on-services you expect:vel and medical assistance specialists line sales representing +2.8% solutions for business travellers;who work around the clock, around the more than 50% of our in turnover assistance solutions for holidays world. You rely on us, but who do we global travel turnover.abroad;rely on? On top-quality, certified service8 Mondial Assistance Annual Report 2008 13. providers in every corner of the globe,while abroad. Each database-listed and 180 international correspondents.structure receives an annual evaluation A solid Our medical team helps you in more visit. In 2008, the database cited 1,287 international ways than one. Comprised of doc- hospitals in 458 cities in 122 countries.team to tors with long-standing internationalOur medical evaluation team regularlyserve you experience, they continually evaluateadds new structures to the database. hospitals and clinics in countries withIt also evaluates airport medical structuresWe should now tell you thatweve set up an international heavy, widespread tourism, and where to assist airline companies in case of an travel sales team whose job is the level of medical coverage is weak or aircraft diversion. This program, named to respond to our international inconsistent. Their aim: to optimize yourIn-flight Medical Support, kicked off inpartners demands for onlinesolutions. And you should know healthcare and whatever treatment you2008. We now have 192 evaluated air-that this team has an essential may need with a database built fromports in our worldwide database.mission: to co-ordinate local first-hand visits. This database provi-There are only a few of us on the inter-business requirements in linewith our partners international des our 500 doctors and medical staffnational travel market who own such a strategies to sell and implement with critical information (quality of care,database and offer these services. So,travel insurance and assistance hygiene, equipment, pathologies treated, deprive yourself no longer and simply hop in several countries via a uniqueplatform. etc.) about the establishments where onboard!p 40 e-commerce correspondents patients are likely to be hospitalisedthroughout the world;p local client management with a global contract: Glocal e-commerce skills at a localInnovation on the online business: level;Travel Insurance 2.0p secured web services with the exclusive and innovative e-MAGIN platform. In 2008, we launched Travel Insurance 2.0. This is a real-time, web-services software developed in-house. It lets us prole your nal customers and then offer them specic, What you get is a wealth of tailor-made products that t their needs. In doing so, were meeting your expectations international experience and better. And in doing that, you can better serve your customers. Another advantage: expertise creating services that conversion rates (ratio number of policies sold/trip sold) increase and revenues are are perfectly adapted to your maximised. We have successfully implemented this new tool in the USA with majorlocal needs. partners. We are planning to deploy it in Europe in 2009. Mondial Assistance Annual Report 20089 14. Lines of businessAutomotiveWere always a step ahead of your expectations.Since 1974, weve helped you help your customers with a fullrange of roadside assistance solutions. With years of expertiseunder our belt, we do our best to anticipate your every need, andkeep perfecting our services so theyre exactly right, every time.Our help is worldwide. We now offer roadside assistance in more than50 countries. We are known as an industry leader who repairs bothcustomers and their immobilised vehicles. And were proud of this. A look at the global to build our international contract portfolio Our offer goes way beyondenvironmentin Europe with auto and insurer partnersroadside assistance2008. What a year! Relative stability, but and consolidated ourFlexibility best describes our offer. Eachgrowing unease in the first six months long, successful rela-of you is different, and our offer can bewhen financial sector concerns mountedwith soaring fuel prices. +8.1% tionship with BMW. We also extended our easily adapted to your differences. We have a lot of experience setting up dedi- in turnoverThen the fury of the global financial cri- support to Volvo andcated customer platforms. You trainsis hit the entire auto industry. New carToyota in Europe. our staff and then they operate yoursales in Europe fell by 7.8% in 2008and by 19.3% in Q4. US and Europeandemand dropped, prompting a drama-tic slowdown in Asia. Gloomy forecasts Knowledge sharing workswere announced for 2009. While a swiftrecovery is unlikely, we must meet the Res@car services: In real SMS Communication on With this, you can quicklymarket challenge. time, our BUs can checkETA: As we all know, assess customer treatmentand book a rental car viawaiting 5 minutes forand send BUs remarksWe will continue to provide competiti-the Internet. This saves assistance can feel like and goodwill requests.vely-priced, quality services with clearprecious time all around.1 hour. With SMS We want you to haveadded value. More than ever, we will Communication, you the best customer E-Mission through MIRA receive real-timesatisfaction ratingssupport you with our innovation and (Golden Argus Award progress reports about possible, and your2007 Technologycreativity. Innovation): Automatic your assistance case Extranet portal can help who will come and when you get them.assistance case dispatch will they be there!Strong, steadyvia GPS tracking to E-Invoicing and E-Billingtowers. The result: Website communication:for our providers andgeographical expansionless reliance on human You can now view your partners. This savesIn 2008, we entered the automotiveintervention, better assistance accounts in real on administration costs,market in Russia, and completed our breakdown response time. How? On a dedicated reduces billing errorstime and deploying Extranet site. The site and ensures our supplyBRIC strategy by strengthening our localthe right resource,provides information on chain is paid accuratelypresence in key markets. We continued rst time. your assistance cases.and swiftly. 10 Mondial Assistance Annual Report 2008 15. platforms. It goes without saying that weopportunities car owners have with their help you out with more than just road- auto brands: purchase, check-up, MOT side assistance. Whether youre a cartest, breakdown, etc. manufacturer, or a leasing, insurance or car fleet company here are just a few of our flexible solutions: Roadside assistance: repair and towingWith ICCM, we can install a rangeof integrated services new vehicledelivery time, complete maintenancemanagement, and proactive claims39% of Mondial Assistance for broken down/immobilised vehicles;management.turnover Accident management: towing, repla-This way, we help increase sales for the cement vehicle, car repair ; brand and reinforce customer loyalty. Used car and extended warranty ; Service program management ; Telematics: GMS localisation, post- theft notification & tracking, navigation,Telematics remote door unlock, remote controlled breakdown diagnosis, concierge servi-For the last ten years we have been one of the major providers of location-based services for ces (best routes, weather, traffic, legalour automotive partners. In 2000 we pioneered with Volvo the rst Pan-European Telematicsprogram. In 2008 we launched several programs with manufacturers and Telematic Service assistance);providers. Our innovations include the remote diagnosis B (Breakdown) call for France, and Customer Relationship Management:pay as you drive program in Italy. telemarketing, customer surveys, loyalty programs, etc. The Operations Based Automotive Technician (OBAT) Integrated Customer Contact Management (ICCM)The OBAT is one of our very specialised professions. These experts repair breakdowns ICCM is a new customer loyalty service long distance. We dont want to ask you to wait by the roadside during a repair if the repaircan be done more simply. Over the phone, the technician advises the driver what to do; for our auto clients. Heres the idea: he coordinates garage repairs and even intervenes on site on behalf of the manufacturer. Weve identified a number of contact All our OBATs have technical experience working for major car manufacturers.Mondial Assistance Annual Report 2008 11 16. Lines of businessHealth & LifecareWe care about your health. And your life.A few years ago, we launched Health and Lifecare Assistance,our 3rd business line. It has grown ever since its creation.Healthcare Assistance focuses specically on your health.It offers more specialised services that provide information, comfort,support and coordination. Lifecare Assistance focuses on your dailywell-being - meeting your personal needs at home or work.A dynamic year Our offer in a nutshell. We havefor a healthy sector the right care for everyoneAround the world populations are get-Healthcareting older and becoming increasinglydependent. This global trend will fuel ourfuture growth in the heath sector. As inprevious years, we continue to focus on Dependency: These are short or long-term services to help you reco- ver if you are temporarily dependent, or stay at home if you are permanently8%of Mondial Assistancedependency and on our worlds ageing so. These services are mostly for thoseturnoverpopulation. If you are an elderly person,with serious health issues and depen-chances are you want to stay in your dent seniors. But were also thinkinghome for as long as possible. If you are a about your supporting relatives andsupporting family member, chances arehave assistance for them too!you are looking for a solution that makes Personal Response Services. Weassistance and travel insurance forfinancial and logistical sense. And youknow how important it is to be able students and employees because wewant your relatives to be safe and com-to reach someone immediately when know that the unexpected can happenfortable in their home.youre not feeling well. So we offeranywhere. We offer Impatriate cove-We are also tuned in to a younger popu-state-of-the-art technological devicesrage in your destination country, mostlylation with entirely different needs. In fact, that monitor your home and facilitate as a condition for granting a visa.our Impatriate Services also enjoyed communication, location and trigge- Disease Management and Patientsteady growth in 2008. This was espe-ring alarms. These services range fromSupport: If you suffer from a chroniccially true in Australia tele-assistance to tele-medecine. Whatdisease, an impairment or an abnormalwhere we are marketyou must know is that even if you feelfunctioning, then you may fully benefitleader, mostly due toour partnering activities+7.1%vulnerable, were watching over and caring for you 24/7. from these assistance services. They also target consumers of prescription in turnoverwith local universities Expatriates / Impatriates: We provide drugs. For the best results, we requireand schools. semi-permanent or long-term medical active participation on your part. 12 Mondial Assistance Annual Report 2008 17. and also Medical counselling, Third Party Health Administration,Partnerships for Lifecare services Rehabilitation Management, Prevention, Our partnership with a major respect lifestyle attitudes that will Second Medical Opinion, etc.French bank enhances Lifecareoptimize brain ageing. services The second program, for 65-75 year LifecareWe have built a strategic partnership in olds, is in the form of a special kit to France with one of the countrys largest measure the risk of Alzheimers. The Daily life services: We help you getbanks to enhance Lifecare services for customers own doctor, who rst is through everyday life (babysitting, clea- its customers and networks.trained by one of our professional ning, gardening etc.).As a joint venture, we have created anurses, administers the test. A positive range of dedicated Lifecare services result does not mean you suffer from Employment Assistance: Do youAlzheimers. It simply indicates that for people of all ages to help make need help finding a first job, or getting a their lives simpler, safer and moreyou need to follow it up with early new one? Do you plan to retire? Do yousecure.treatment should the disease appear. Partnering with telecom companyEarly treatment can give you an extra need career assessment advice or just18-24 months of normal functioning. makes cell phone tele-assistance an understanding ear? Our professionala realityTeaming up with a world and retirement advisors are on hand toOur global partnership with one of healthcare leader give you all the support you need.Frances leading telecom companies In 2008 we signed a European now enables tele-assistance via your agreement with a 120 year-old world Bereavement and Funeral cell phone.leader in healthcare, a household Assistance. Cell phones are equipped with a panic name in most parts of the world. Retirement Assistance.button. By pressing it, customers Our joint program provides assistance come into immediate contact with one to those of you with severe psoriasis. of our emergency centers. Our center After you contact one of our platforms, assesses the situation and organizes our healthcare professional receives appropriate assistance.a contact report. With this, he/she can Working with an insurer to enhance fully coordinate follow-up actions for awareness of Alzheimers this healthcare companys innovative In collaboration with a leading French treatment. The program is to help Medical University, we have developedprofessionals monitor, educate and two Alzheimer programs.assist you in using the treatment The rst helps increase diseaseproperly. awareness and literacy. Designed for insurers customers between 55 and 65 years old, it helps them adopt and Mondial Assistance Annual Report 200813 18. Lines of businessProperty & othersGetting personal: Your property is our concern.Property breakdown. You all know what this means a broken waterpipe, a faulty electrical system, a branch that falls and damages theroof. Some of you may have even experienced natural catastrophes.Whatever your business, whoever your customers, were here to helpyou help them if adversity strikes.Property Assistance two smallfor your credit cards and cell phones,words for a great big offer. From a leakyCRM programs, concierge servicesfaucet to a flooded community, we havea flexible, customized solution to meetyour needs. 24/7. We also offer tele-security home and office surveillance, and round-the-clock information call centers for public inquiries. For us, its all about getting closer to you to take better care of you and your 5%of Mondial Assistanceprotection services and warranties belongings.turnover+18.7%in turnover Keeping your children safe Our risk assessment service provides parents and care-givers with valuable information about how to keep kids safe and prevent unnecessary injuries from happening at home. Event CancellationProperty assessment We send a qualied provider to your home to perform a domestic riskHow many of you have bought tickets for something - and missed itassessment examination and make necessary recommendations.because work, family obligations, health problems or transportationOur aim is that you have a totally child-friendly home.woes prevented you from going? To nd out exactly how you feelabout this problem, we conducted a survey. Switch/outlet inspection The provider inspects all electrical switches and outlets for shockThe majority said you wanted to be reimbursed if an unforeseen potential and installs 10 childproof outlet covers.incident occurred, and 73% expected the insurance cost to be 5%of the ticket cost. Well, we have good news! Rearranging furnitureOur event ticket insurance ensures you against the cost of your ticket Our provider may rearrange your furniture to reduce potential risks.plus any associated costs, such as shipping, should you miss anRecommendation bookletevent. And it costs 5% of the overall ticket!A hands-on booklet explains how to prevent accidents (from breakingLets just say that weve tried to think of everything because bones to ingesting toxic substances) and build an emergency rst aidwe care and want to make lifes occasional upsets easier to bear.kit, and provides a vaccination timetable. 14 Mondial Assistance Annual Report 2008 19. Helping people, anytime, anywhere for a simpler, safer and more secure lifeMondial Assistance Annual Report 2008 15 20. Internationalpresence 16 Mondial Assistance Annual Report 2008 21. 9,817 staff membersBusiness units in28countries 40 languages Mondial Assistance Annual Report 2008 17 22. International presence 24-hour availability Best price/quality ratioOur provider selection Ofcial credentialsAmericascriteria ensures you Cashless access to servicesalways get the best: Guarantee of appropriate Braziland well maintained equipmentCanada Mexico USAWe cover the worldA worldwide network thats here to help you !Our international network:competent and complete.The promise we make is that were hereadvisors, employment and retirementto help, wherever you or your customers counsellors to social service workers,happen to be. This is why we work withour network of specialists assists youmore than 400,000 highly qualifiedand your customers with every need, anyservice and assistance providers andtime, anywhere. We have an international180 correspondents worldwide. dedicated team set up in Paris at GroupFrom transport technicians to medi- headquarters that selects, manages andcal experts, home repairmen to legalcontrols our network of providers. 18 Mondial Assistance Annual Report 2008 23. Countries with Europe, Middle East & AfricaAsia, PacicGroup ofces (Business units and commercial ofces)Austria Bosnia/Herzegovina Australia Countries with a Belgium Bulgaria China commercial Group Czech Republic India activity Romania FranceSerbia/MontenegroJapanOur Special partner Germany CroatiaSingapore GreeceSlovenia Thailand Hungary Baltic Countries Ireland Denmark Italy FinlandTaiwan PolandLebanonSouth Korea PortugalNorway Malaysia Reunion IslandSweden New Zealand RussiaUkraine Spain Uzbekistan Switzerland Moldova The Netherlands Turkey United KingdomMoroccoMondial Assistance Annual Report 2008 19 24. International presenceAsia-Paci cWith modest growth (+7.9%) in 2008, we fell slightly shortof targets. But with strong contributions from Australia and Japan,our protability was up (+49.3%) over the same period in 2007.Signs of commercial slowdown appeared in Q3 when our main autoand travel partners saw demand fall. The slowdown spanned allregions, even those that had been enjoying double-digit growth.Australia: StrengtheningIndia: Year one operationsmarket positionssuccessfulOur Australian business enjoyed +14%During our first year in India we focused 9.5%growth, and reinforced its lead position in on developing roadside assistance for of Groupturnovercore markets travel insurance, automo-the auto industry. We signed contractstive assistance, overseas student healthwith manufacturers, leasing and insu-insurance and international medical assis-rance companies. Today we are thetance. All of these, plus e-travel insurance, sectors market leader. We also launchedcontributed to growth. We improved ourCRM and claims notification servicesoperating profit (+52%) by adopting lower,and began to pave the way for travelSingapore & South East Asia:cost-base best practices in each respec-insurance in 2009. An added bonus was Increased dynamics in traveltive market. A dedicated team focused recognition for our quality services in a insuranceon growth through innovation, notably onvery challenging market.In Singapore, our regional hub, we conti-developing customer value.nued to develop e-commerce travelJapan: Customers pleasedinsurance, and successfully launchedChina: Reaching out to the auto with improved service deliveryit in Malaysia. We also concluded traveland nancial industries 2008 was an excellent year for Millea insurance programs for hotel-only boo-We launched several new car manufac-Mondial. Despite the difficult economic king portals. Online booking agents inturer programs in 2008 and continued to context, sales revenues climbed 27% Singapore can now get ticket protectionreport strong growth in roadside assis- and we exceeded profit targets. Mostinsurance.tance. Our Chinese BU also focusedgrowth came from traditional roadsideon the financial sector. Today, we countassistance services. We also launched Thailand: prot steady despiteseveral leading Chinese financial institu-innovative pet insurance, automationdifcult timestions among our partners. Changes in projects and impro-2008 was a difficult year for Thailand.travel insurance regulations early in theved processes. The ongoing political crisis and civilyear adversely affected our bottom and Today we offer moreunrest at airports impacted our turno-top line travel insurance results. +7.9% streamlined, afforda-ver. However, we still delivered a healthyin turnoverble customer service profit. How? By fiercely implementing delivery.robust cost containment policies! 20 Mondial Assistance Annual Report 2008 25. Americas We had a record year in the Americas zone. Revenue growth was the highest in the Group and online travel insurance deed the global recession, meeting revenue and protability goals. Our teams from the US and Brazil introduced a range of innovative products and technologies which produced exceptional results. And 2008 was a transition year in Canada, while Mexico continued to build its capabilities.Brazil : A record year off, helping to improve our bottom line We are US market leader in online travel across the board result and position us to move comforta-insurance and event ticket insurance. Our Brazilian business unit performedbly forward. We also greatly strengthenedDespite the economic downturn, our extremely well, buoyed by profitable internal corporate governance.revenue grew by nearly 20% for the growth and diversification. We strengthe-fourth consecutive year. We continued ned online partnerships with travelMexico:to lead the way in credit card enhan- agencies and airline carriers and promo- Expanding ted our own travel website. We signed19% network helpscements and out-of-country healthservices, and also launched many inno- several new partners in our traditionalof Groupnew clientsturnovervations. These include a new, patented business lines, solidifying our lead posi-Operations grewintelligent technology that offers per- tion. We also successfully launched a steadily in 2008 insonalized products to customers in an win-win solution integrating roadside our recently ope-online environment. assistance with comprehensive CRMned Mexican business unit. We now services.offer roadside, home, medical, legal andIn 2008, our customer service centertravel assistance in Mexico to a wide received the coveted Global Call Center Canada:variety of clients including the automo-of the Year award. Employees in the US Improved tive, travel and financial industries. We also led the group with the highest score +18.6%governance in aalso strengthened our offer with a 24/7 for job satisfaction.in turnoverpivotal year international platform, supported by a We indeed had a pivo-growing local network of providers. tal year in Canada in year-over-year performance, employee USA: Double-digit growth for engagement and innovation. We conso- fourth consecutive year lidated our lead position in online travel Our American business had another insurance by winning new customers and successful and record year. Impressive offering new products. We strengthened growth, customer satisfaction and innova- and built key strategic partnerships intion were keys to success. Our American our distribution and service networks. business unit is the second largest in the And our cost containment initiative paid group, and the largest in travel insurance.Mondial Assistance Annual Report 2008 21 26. International presenceEurope, Middle Eastand AfricaThe EMEA zone is still our main contributor. It generated71.6% of global turnover in 2008. Our e-commerce sales continuedto boom in the travel segment. And because we are always lookingfor better ways to help you, we continued to innovate. We acquiredand launched new services in domestic healthcare, and introducedonline business models in many countries.Austria & SEE: New Products established contacts with travel agentsCzech & Slovak Republics:and an eye to expandand tour operators. Weve completed aOur 10th anniversaryDespite the difficult market and economy, home web page, installed an electronic Our business unit in Prague celebratedwe enjoyed moderate +4% growth in booking system and developed tailoredits 10-year anniversary by successfullythe traditional travel business in Austria. travel products. transferring its entire business activityThe new premium Comprehensive pro- to our new Mondial Assistance brand.duct launched in January 2008 partially Belgium: Creativity for growth We continued to actively develop andcontributed to this. December 2008Our Belgian business unit showed lea-improve our vehicle, travel and domes-marked the end of our first full and satis- dership and product creativity oncetic assistance and insurance offers. Thefactory business year in Hungary whereagain by winning the Best Assistanceresult: we considerably grew our client50% of sales came from our traditionalProduct award given by a jury of non- portfolio!business lines, and 50% from e-com- life insurance experts. Another triumphWe continued to work closely withmerce travel insurance. We succeeded we ran an innovative, award-winningAllianz-Slovenska Poistovna, the lea-in winning key accounts in the travel communication campaign! Our strong ding Slovak insurer, and expanded our(including air lines) and automotive sec- relations with you, our travel agent and collaboration in vehicle assistance, tra-tors. Now our Austrianinsurance broker partners, were rein-vel insurance and reinsurance. We alsobusiness unit is readyforced by several successful network worked together to penetrate the hometo take a further stepevents. We also concluded new agree- assistance and healthcare markets.into the SEE and +4.1%ments for healthcare services, which In 2008 our relations with our Slovak in turnoverenter the Romanianhelped increase our profitable turnoverbusiness partners were dominated bymarket. So far, weve by +14%. the countrys entry to the Euro zone. 22 Mondial Assistance Annual Report 2008 27. We launched some major IT projects,created a dedicated business line, laun- innovative products for students. In line designed to help you - customers and ched the servissimes platform with one with current trends, we continued to shift staff and make your lives easier! Theseof Frances biggest banks, and imple-our business model from offline to online. include a new, locally designed e-commented two new electronic devices forThe most important change for us in sales tool, a new management informa-healthcare and lifecare providers. Were 2008 was our name transition to the tion system, a data warehouse and webrecognized as a pioneer in tele-assis- Mondial Assistance brand. access to assistance files. Our reward tance, and specialized in helping theOur assistance entity continued to for our positive results? Well be movingelderly population. This expertise led co-develop with Allianz new domestic to new offices in Prague in 2009!to us receiving the 2008 Recognitionhealthcare products for the senior market.for lifecare services award from theAnd to meet your growing expectations, France: Market leaderNational Center for Lifecare Services. we also pursued efforts to improve quality for the rst time! But we didnt stop here. For the first and productivity standards for our road- Our French business unit enjoyed time in France, we supervised a depen-side assistance activities. +7,8% growth in 2008. And for thedency questionnaire for people over 70; first time in our history, we are now lea- we also developed new services to help Greece: New legislation der on the French assistance market! healthcare assistants. Today we areand popular B2C solutions So, where did we grow commercially?proud of our wide range of dependencyGreek roadside assistance legislation In the bank-insurance sector particu-assistance solutions.changed a lot in 2008. At our local busi- larly with home assistance services. We ness unit, we aligned ourselves with the also signed many new contracts withGermany: Travel andnew laws, which are much more deman- mutual insurance companies, renewedAssistance sales consolidation ding, and also met our financial targets! agreements with major auto manufac-In 2008, we successfully strengthenedWe increased turnover by +6,2% over turers, and signed new contracts withand streamlined the organization of2007 and achieved a combined ratio of car rental companies. Our e-travel busi- our German business units. How? By less than 95%. Where did we focus to ness continued to grow. And so did our consolidating all insurance carriers and increase sales and profitability? Mostly penetration into several new segments: setting up a new structure for all assis-on B2B2C and roadside assistance business travel, hotel bookings, and tance activities. These changes in 2008renewal schemes for importers. We events ticketing. Enhanced guaranteeshelped bring about remarkable successalso launched e-Mondial.gr, and B2C/ for our tourism clients have met within both sales and profit. We succeeded white label travel insurance solutions. great success. We invested significantly in being the first assistance company to These are currently very popular with to promote direct online sales of tele-offer a complete range of annual travelonline travel agencies, and show promi- surveillance and tele-security products. insurance policies. This product gene- sing growth. Were pleased to say that And this paid off because 1/3 of our ration was judged best-in-class by a weve maintained our lead position in new customers come from online! Localvery important German consumer sur-the Greek automotive market and have communities continued to subscribe tovey. Our earned premiums increased inbeen boosted by a rapid growth in travel our tele-assistance services, boosting 2008 by 62% over the previous year. Butinsurance. growth in this area. We worked relentles-2008 was also very challenging because sly to successfully optimize purchasingthe German travel insurance market isItaly: Proactivity leads to agreements with rental car companies,highly competitive, made even more growth and protability airlines and our network of vehicle repair so by aggressive new players. To com-In Italy, we enjoyed +11.6% growth in providers. These pensate for the traditional flat tourism 2008, generated mostly from the tra- efforts also paid off. business, our travel entity focused on vel industry. We paid close attention Our innovation developing travel insurance offers for to managing our portfolios proactively; strategy to develop71.6% financial institutions, insurance com- and closed off the year on a good roll of Group lifecare servicesturnoverpanies and brokers. We also worked by signing new contracts with several got an operational closely with new customers to developItalian tour operators, which we hope boost when wefor their distribution channels a range of will boost our 2009 sales! We also took Mondial Assistance Annual Report 200823 28. International presencetime to carefully review our B2C web- considered a domestic leader. We haveSpain: Quality improvementssite and asked ourselves how we can also built a strong base to foster futureand a bright green attitudehelp you, our direct customers, better? growth. How? By improving our core With 68% female staff, our SpanishThe answer is in our new online product business and successfully launchingbusiness unit increased sales by 14.3%offers like cell phone insurance andnew domestic products targeting thein 2008, mostly from the tourism indus-roadside assistance! 2008 was a key mass market. Our innovative healthcare try. But who was the real star? A productpartnering year with Allianz. We worked products and additional concierge servi- line for travel agencies whose revenuesclosely with their new management teamces have also been very successful.climbed by 30%! We created a newto build a best-in-class way to manage computer-assistance service, whichoperations and ensure transparencyReunion Island: A diversied works by phone, email or chats, andbetween us. In a similar vein we renewedclient portfolio offers a remote access option as well.our commitment to the values of corpo-We sustained over 5% growth in our 2008 was a very green year for us inrate social responsibility and launched Reunion Island business unit in 2008.Spain. We extended a caring hand to thewww.mondiality.it. This won us SA8000 CRM services remain the main lineenvironment and reduced our consump-certification! And we have a newcomer of business; that being said, thetion of paper and paper products byto our Group - Mondial Contact Center assistance activity is picking up vigo-50%! We also launched a hefty roadsideItalia. Here we manage contact center rously. It combines emergency hotlineassistance program in Madrid with 3 towservices for our customers and even solutions with services and claims trucks this should let us handle moreourselves!handling (i.e. car fleets, insurance than 6,500 cases in our capital a year.claims and real estate management). And because you are always on the topNetherlands: innovation In response to this growth, we recentlyof our mind, we set out to improve thein a mature marketlaunched several innovative solutions forquality of our roadside assistance ser-The vehicle assistance market in theour customers. Our client portfolio hasvices and our ability to design specificNetherlands continued to climb in 2008. grown as well and now includes several customized solutions for you. How, youOn this wave, we strengthened our ope-public sector entities.might ask? Through Neoasistencia,rational productivity. We continued to a subsidiary company that focusesfocus efforts on promoting our popularRussia & CIS: a bold beginning exclusively on these challenges.annual travel insurance products. Wefor travel insurance andalso observed a shift from the travel roadside assistanceSwitzerland: new distributionindustry toward the insurance industryOn March 1st, 2008 we kicked off our channels key for future growthas a distribution channel. As one of ournew Russian activities and had a veryWe enjoyed another successful year ingoals is to further help our individual promising first year. Our 24/7 assistanceour Swiss business unit. Revenues grewconsumers, we successfully launched platform, which also covers medicalby 17.3% and we increased our share ina roadside assistance solution just for requests, helped many people and all key markets! We worked in a soundthem. And of course, as in other coun-handled over 5,000 files in 10 months! economic environment into Q3, whichtries, we transitioned very successfully to Were also pleased to announce that ourled to a higher loss ratio as people tra-the new Mondial Assistance brand! Russian team is now complete. Our core veled more and paid more to do so. Thisactivities in this vast market are traveltrend reversed in Q4. Overall our profitPoland: Dynamic sales insurance and roadside assistance. Sogrew in line with revenues and our com-and innovative healthcare far we have built a roadside assistancebined ratio reached an excellent 94%.The assistance market in Poland grewnetwork in 80 Russian cities and were A major change for us in 2008 was theby 30% in 2008 and it was an excel- actively developing our core offer for the distribution landscape. For the first time,lent year for our Polish business unit. CIS (Commonwealth of Independent a major retail chain is now selling our tra-We achieved high sales growth des-States) and Bulgaria. Were currentlyvel insurance and roadside assistancepite a more competitive environment.in close contact with insurance com- products. Car dealers are also offeringWe now have a 33% share of thepanies in the Ukraine, Kazakhstan andtravel insurance at the time of a newcountrys assistance market and are Armenia. car purchase. These new distribution 24 Mondial Assistance Annual Report 2008 29. channels will be key for our future growth. We also saw a big boost in demand for healthcare. Popular among newcomers are medical consulting, medical triage and disease management products.Turkey: Weve come a long way... Weve come a long way with our Turkish business unit, and 2008 was a fine example of the progress weve made. Our turnover grew by more than 30% and we achieved a combined ratio of 93%! Perhaps equally as rewarding we received a prize for Home Assistance! We can confidently say today that we are looking forward to sustainable growth in the future. Weve set our sights on wider horizons too. With our new entity, Mondial Assistance Insurance, we have entered the insurance sector and will leading tour operators. Weve been very soon have full insurance capability. We successful in developing sales of our are pursuing the medical and assistance on-line warranty and travel insurance businesses in regions like Azerbaijan products. Continuous improvement is and Georgia. Through an internal IT part of our daily vocabulary and for 2008 tool, the Eureka Project, we made great this was no exception. So that we can cost containment achievements in thehelp you better and faster, we signifi- medical sector. As a result, our business cantly improved our call centre efficiency units in Germany, France, Holland and and automatic dispatch processes to our Belgium come through us to manage technicians in the field. Today, our UK their medical and technical files.business unit is among the regions top We continue to make gains in both the three providers of dedicated roadside banking and automotive sectors, and assistance, travel insurance administra- recently signed agreements with two tion and automotive warranty. You should major automobile brands. This positivealso know that we focused a great deal Middle East & Africa: dynamic is not just a feeling. Its real, in 2008 on developing our people and inReinforcing the core business reflected in our improved NPS rating andinvesting in technology. HR and Internal Throughout 2008, we supported Allianz growing staff.Communications offered strong supportin developing its activities in Africa and for in-house training. The old adage athe Middle East by providing quality tra- UK and Ireland: Booming little goes a long way is absolutelyvel insurance. Our aim is to help as many e-commerce and streamlinedtrue. Our simple actions reinforcedpeople as possible, so we took appro- processes staff Engagement and Loyalty, andpriate action. We furthered our relations 2008 was a challenging year for our maximized productivity. Today we are with existing partners in the Near East, UK and Irish business units due to therecognized for our excellent customerincluding Lebanon, Jordan and Egypt. economic downturn. But in the end services and successfully implementing And we began developing services for we maintained our final annual results. innovative change; staff turnover is way new partners in the Gulf countries, focu- We made new business wins throughoutdown, well below the industry average, sing particularly on insurers, banks and the year. Among them is one of the UKs and our operating results are strong.airlines.Mondial Assistance Annual Report 200825 30. Financialresults 26 Mondial Assistance Annual Report 2008 31. 1,597 million turnover+6% growth 62.6million net prot Mondial Assistance Annual Report 2008 27 32. Financial resultsReview of OperationsFor the year 2008Turnover (Premiums and Service Revenue)In 2008, Mondial Assistance reached The business contributing to the half ofGeographically, the Americas and EMEAits targets by achieving 1.6 billion eurosthe total growth was automotive. Repre- regions were the main contributorsgross turnover with a combined ratiosenting 39% of the total group revenues,to the growth of revenues in volume,below 95%. This good result was possiblewith mainly roadside assistance prod- respectively with +18.6% and +4.1%,thanks to the insurance business whoseucts, the line of business automotive followed by Asia Pacic with +7.9%.written premiums increased by +8.1% had a growth of +8.1%.The strong growth, mainly comingcompared to last year, along with stableThe remaining part of the business is from France, Brazil, Italy and the USA,service revenues. split between the third line of businesswas heavily impacted by -40.7 million48% of the revenues come from travelhealth and lifecare services, representingeuros resulting from important foreigninsurance products, such as trip cancella-8% of the total revenues, and the fourthexchange rates uctuations during thetion, medical costs coverage and medicalone property & others with 5% revenue year 2008, the major impacts being withassistance. This line of business had a share. The corresponding products the British pound, the US dollar and thegrowth of +2.8% in 2008 with a clear trendsold mainly on the nance market hadAustralian dollar.to internet online business through travelrespectively turnover increases of +7.1%agents and airlines companies.and +18.7%.Claims and expensesCompared to last year, the claims ratio to 20.5% in 2008, which is very stabledecreased from 37% in 2007 to 36%improved by 1.4% point from 58.4% toas during last years and mostly driven by in 2008. In parallel, Headcounts increased57.8%. This comes from both a slightthe insurance business ratio of 23.9%.by +4.9% and full time equivalentimprovement of the current year claimsIn addition to those improvements, theincreased by +6.1%.ratio and also a better run-off from previ- efcient control of the costs has to be As a consequence of the above men-ous year claims.emphasized as the general expensestioned improvement, the combined ratio,Globally the commission ratio gross ofincreased by only +5.1% to 565.2 millionas a mix of insurance and service busi-reinsurance moved from 20.7% in 2007euros and the general expenses rationesses, improved to 94.9%.Investments and nancial resultsAt December 31st, 2008, the Groups especially in UK, and 52.3 million euroseuros coming from exchange ratesfinancial investments amounted to more securities available for sale, mainlyresult especially on contracts in British581.6 million euros, which representcoming from more cash invested in pound, US dollar, Canadian dollar and40.5% of the total assets, compared tomoney market mutual funds.euro against Swiss franc. Furthermore,562.4 million euros and 41% in 2007.The investments and nancial resultsthe result from investments was lowerIn 2008 there were 45 million euros lessdecreased by -9.4 million euros in 2008 than in 2007 due to the economic crisislong term bank deposits than in 2007, to 24.1 million euros, thereof -7.6 million and the impairment of some bonds. 28 Mondial Assistance Annual Report 2008 33. Turnover Turnover per zoneTurnover per LOB(in million euros) 19%48% 20081,597Americas Travel9.5% 5% 2007 1,508 Asia PropertyPaci c & others71.5%39% 2006 1,344AutoEMEA 8% Health & LifecareCombined ratio Net pro tTotal staff (in points)(in million euros) (number of people) 2008 94.9200862.62008 9,817 200795.1 2007 57.1 20079,356 2006 95.2200655.920068,550 Result before and after tax, and return on equity The result generated by the operating to fluctuations in currency exchange in the Switzerlands tax legislation, prot activities increased by +11.9% com- rates since year-end 2007, this con- after taxes ended up at 62.6 million pared to 2007 to 79.9 million euros.solidated profit could have been euros, which is 5.5 million euros better Thanks to this operating result, Mondialhypothetically 3.5 million euros higher. than in 2007. Assistance could achieved 103.1 million Deducting the taxes on profits ofCorrespondingly, the return on equity euros result before tax in 2008 which is38 million euros, lower than in 2007 throughout the twelve-month period higher than in 2007 by +1%. Without by 5.1 million euros due to a one-offended December 31st, 2008 increased any negative translation impact due increase in 2007 following a changeto 17.3% in 2008. Changes in Group structure As during previous years, some changeshas started in 2008 and following stepsto the consolidated nancial statements, in Group structure took place during theare expected in 2009 and following starting on page 35 of this report. year 2008. In addition to new consolida-years. Details of these 2008 operations tions, a legal restructuring of the Group can be found in the chapter NotesMondial Assistance Annual Report 2008 29 34. Financial resultsFinancial statementsof Mondial Assistance GroupConsolidated Income Statementof Mondial Assistance Group 2008 20082008 2007 2007GROSSCEDED FOR OWN FOR OWNRESTA- FOR OWN ACCOUNT ACCOUNT TEMENTACCOUNTIN THOUSAND EURRESTATEDINSURANCE AND ASSISTANCE BUSINESSTotal turnover (premiums and service revenue) 1,596,95110,3881,586,563 1,495,385 (15,301)1,510,686 Written premiums1,227,56510,3881,217,177 1,126,292 (15,301)1,141,593Unearned premium reserve change (19,808)186(19,994)(34,823)(1,119) (33,704)Earned premiums 1,207,75710,5741,197,183 1,091,469 (16,420)1,107,889 Claims paid current year(442,626)(3,676)(438,950) (406,566) (406,566)Transferred claims administration(124,100) (124,100) (113,586) (113,586)expenses (ICHC) CYChange in current year reserves (147,613)(1,439) (146,174)(129,453)(129,453)Claims incurred current year(714,339)(5,115) (709,224)(649,605)(649,605)Claims paid previous year (95,425) (3,199) (92,226) (85,479) (85,479)Transferred claims administration(10,716) (10,716) (9,446) (9,446)expenses (ICHC) PYChange in previous year reserves129,7676,499 123,268109,669109,669Claims incurred previous year23,6263,30020,326 14,744 14,744Other technical income / expenses(2,826) 0(2,826)(2,329)15,301 (17,630)Total claims(693,539)(1,815) (691,724)(637,190) 15,301 (652,491)Commission paid (Insurance Business)(289,238)(1,485) (287,753)(259,614)(259,614)Insurance margin224,9807,274 217,706194,665 (1,119)195,784 Service revenue369,386 369,093 369,093Service income deferred change 1,582 (4,741) 7,966 (12,707)Service revenue earned 370,968 364,352 7,966 356,386Other service income / expenses(43,547)(27,384)(27,384)Commission paid (service business) (34,818)(45,203)(45,203)Transferred service administration(174,050) (162,222) (162,222)expenses (ISHC)Service Margin 118,553 129,543 7,966 121,577 Staff costs(370,945)(343,705)(343,705)IT costs (27,836) (22,324) (22,324)Telecommunication costs(15,675) (13,555) (13,555)Fees for group services(6,405)(11,802) (11,802)Other administration costs (144,358)(146,643)(146,643)Transfer of ICHC and ISHC308,865285,253285,253General expenses after transfer(256,354)(252,776)(252,776) Operating result79,90571,432 6,84764,585 30 Mondial Assistance Annual Report 2008 35. 2008 2008 20082007 2007GROSSCEDEDFOR OWNFOR OWN RESTA-FOR OWNACCOUNTACCOUNTTEMENT ACCOUNT IN THOUSAND EUR RESTATED Financial operations Current income investments 17,28914,223 14,223 Current expense investments (1,141) (737)(737) Current investment result16,14813,486 13,486 Realised gains 3,436 2,9992,999 Realised losses (2,081) (1,802)(1,802) Realised result1,355 1,1971,197 Write-ups0 76 76 Write-offs(6,401) (851)(851) Net write offs (6,401)(775)(775) Result from investments11,10213,908 13,908 Exchange rate uctuation gains 115,935 23,875 23,875 Exchange rate uctuation losses (123,427) (23,761) (23,761) Exchange rate result (7,492)114114 Interest and similar income21,75020,363 20,363 Interest and similar expenses (1,205) (859)(859) Interest and similar result20,54519,504 19,504 Financial result 13,05319,618 19,618 Other income/expenses (948) (2,873)(2,873) Result before tax103,112102,085 6,847 95,238 Taxes (37,997)(43,064) (2,263) (40,801) Result after tax 65,11559,021 4,584 54,437 Minority interest in the results(2,551) (1,937)(1,937) Group result 62,56457,084 4,584 52,500 Mondial Assistance Annual Report 200831 36. Financial resultsConsolidated Balance Sheetof Mondial Assistance Group 2008 2007RESTATEMENT2007IN THOUSAND EUR RESTATEDASSETSGoodwill19,497 19,176 19,176Other intangible xed assets23,371 28,455 28,455Intangible xed assets42,868 47,631047,631Land and buildings 7,7067,9737,973Other tangible xed assets44,942 47,400 47,400Tangible xed assets52,648 55,373055,373Shares 216 24 24Fixed-interest securities317,429304,626304,626Other Investments 80,480 41,161 41,161Securities - available for sale398,125345,8110 345,811Investments - fair value through prot & loss8034,7000 4,700Participations 7762840 284Mortgages000Long term bank deposits148,930193,890193,890Loans 32,957 17,743 17,743Mortgages, long term deposits and loans181,887211,6330 211,633Investments581,591562,4280 562,428Accounts receivable - direct business121,097100,504100,504Accounts receivable - indirect business 69,995 67,031 67,031Accounts receivable from associated companies - 2,3108,0748,074current accountsOther accounts receivable203,855176,262176,262Accounts receivable397,257351,8710 351,871 Deferred acquisition costs36,991 28,568028,568Cash and cash equivalents239,643225,0460 225,046Reinsurance deposits 5,430 29,873 29,873Other deposits 5,5475,4075,407Other assets10,977 35,280035,280Accrued interest 8,431 10,537 10,537Other (prepayments and accrued income)33,456 26,680 26,680Accruals & prepayments41,887 37,217037,217 Deferred taxes - assets31,187 29,0994,08925,010Total assets1,435,0491,372,5134,089 1,368,424 32 Mondial Assistance Annual Report 2008 37. 2008 2007 RESTATEMENT2007 IN THOUSAND EURRESTATED SHAREHOLDERS EQUITY AND LIABILITIES Share capital25,509 25,50925,509 Additional paid in capital 30,633 30,63330,633 Other reserves210,227211,363 211,363 Retained earnings brought forward59,747 33,93733,937 Correction of an error related to previous years (9,275) (13,859)(13,859) Net prot for the nancial year62,564 57,0844,584 52,500 Shareholders equity379,405344,667(9,275)353,942Minority interest in shareholders equity10,3249,416 0 9,416Unearned premium reserves and deferred service income 419,599436,20113,364 422,837 Claim reserves183,483170,355 170,355 Other technical provisions 41,413 46,78746,787 Technical provisions and deferred service income644,495653,34313,364 639,979 Personnel provisions and similar liabilities 48,413 44,55644,556 Provision for income taxes and similar taxes 22,067 25,82225,822 Other non-technical provisions 10,411 12,52112,521 Non-technical provisions 80,891 82,899 082,899 Deposits received from reinsurers 180226 226 Loans11,954 17,12017,120 Liabilities - direct business36,875 16,80616,806 Liabilities - indirect business13,033 10,81310,813 Liabilities to associated companies - current accounts8,100579 579 Other liabilities 217,865201,116 201,116 Deferred income12,827 19,92819,928 Other liabilities 300,834266,588 0 266,588Deferred taxes - liabilities 19,100 15,601 015,601Total liabilities1,055,6441,027,847 13,364 1,014,483 Total shareholders equity and liabilities 1,435,0491,372,5134,089 1,368,424 Mondial Assistance Annual Report 2008 33 38. Financial resultsCash Flow Statement IN THOUSAND EUR 2008 2007 Net result of the period 62,564 52,500Change in unearned premiums reserve(16,601) 32,533Change in claims and claim handling costs13,128 19,196Change in other technical reserves (5,374) 880Change in deferred acquisition costs (8,422)(2,454)Change in deposits held by others under reinsurance business assumed 24,443 (4,746)Change in deposits held under reinsurance business ceded (46)(3)Change in accounts receivable / payable on reinsurance business(745)(4,768)Change in loans and advances to banks and customers(15,214)111Change in liabilities to banks and customers 14,8129,781Change in other receivables and liabilities(22,793) (55,764)Change in deferred tax assets / liabilities(315) 219Adjustment for investment income/expenses not involving movements of cash00Adjustments to reconcile amortization of goodwill 340Depreciation and amortization expense22,692 24,768Other(13,786)4,888Minority interests2,5511,937Cash ow from operating activities 56,928 79,078Change in securities available for sale*5,038 (6,940)Change in real estate00Change in other investments00Acquisition of subsidiaries net of cash acquired (1,572)(20,996)Change in xed tangible and intangible assets(10,436) (27,382)Cash ow from investing activities(6,971) (55,318)Cash inow from capital increases00Dividend payouts (25,650) (16,859)Other from shareholder equity and minority interests (9,710) 150Cash ow from nancing activities(35,360) (16,709)Effect of exchange rate changes on cash and cash equivalents 00Change in cash and cash equivalents14,5977,051Cash and cash equivalents at beginning of period 225,046217,995Cash and cash equivalents at end of period 239,643225,046 * Including unrealised loss/gain reserves on investments available for sale. 34 Mondial Assistance Annual Report 2008 39. Notes to the consolidated nancial statements of Mondial Assistance GroupConsolidation scopereplaced by a new branch: Elvia Travel used for acquired businesses, including The consolidated nancial statements Insurance Spain. entities under common control of of Mondial Assistance Group compriseMondial Assistance AGs ultimate holding the annual accounts of Mondial Consolidation principles company. Companies acquired or Assistance AG and subsidiaries, whichSubsidiaries have been recorded accor- disposed of during the year are included are prepared in accordance with theding to the full consolidation methodin the consolidated nancial statements accounting and valuation principles of the when subject to the majority control offrom the date of acquisition or to the Mondial Assistance Group. Consoli- the Mondial Assistance Group.date of disposal respectively. dated subsidiaries are listed further in All intra-group transactions and balances the notes to the consolidated nancial have been eliminated.Foreign currency statements.Interests in joint ventures are recognised translation In 2008, the following companies by including the accounts using theThe Groups reporting currency is the were founded: Neoasistencia Manot- equity consolidation basis.euro (). The functional currency for each eras S.L. (Spain), Mondial AssistanceEquity investments in which the MondialGroup company is the currency of the Sigorta Aracilik Hizmetleri Ltd SirketiAssistance Group owns at least 20% environment where the enterprise carries (Turkey) and Atencion Integral a laof the voting rights are accounted on its activities. Assets and liabilities are Dependencia S.L. (Spain). The firstfor using the equity method, excepttranslated at the closing rate on the balance two were consolidated in the Mondial for investments in which the Mondial sheet date. Expenses and income are Assistance Group; whereas the last Assistance Group is not able to exercise translated at the annual average rate from one is a joint venture held at 50% and signicant inuence, in which case the the functional currency into the reporting is accounted for according the Equitycost method is used. currency. Translation differences between method.Participations in which the companythe functional currency and reporting In 2008, one Italian company Mondial owns less than 20% are accounted for currency, including those arising in the Contact Center Italia S.r.l. was acquiredunder the cost method. process of equity consolidation, are taken and has been consolidated into Mondial The equity and net income attributable to shareholders equity without affecting Assistance Group.to minority shareholders interests areearnings. Translation differences between Finally, the Spanish subsidiary Mondialdisclosed separately in the balance sheetthe transaction currency and functional Assistance Seguros y Reaseguros de and income statement respectively. currency are reported in earnings. Riesgos Diversos was closed, and The purchase method of accounting is Exchange rates of principal currencies BALANCE SHEET YEAR END RATE (AGAINST 1 EURO)2008 2007Australia (AUD) 2.0274 1.6757 Japan (JPY) 126.1400 164.9300 Brazil (BRL)3.2436 2.6217 United Kingdom (GBP)0.9525 0.7334 Switzerland (CHF)1.485 1.6547 USA (USD) 1.3917 1.4721 INCOME STATEMENT AVERAGE RATE (AGAINST 1 EURO)2008 2007Australia (AUD) 1.7432 1.6351 Japan (JPY) 152.3492161.247 Brazil (BRL) 2.67854 2.6648 United Kingdom (GBP) 0.79705 0.6846 Switzerland (CHF)1.58694 1.6427 USA (USD)1.47109 1.3705Mondial Assistance Annual Report 2008 35 40. Financial resultsRestatement of 2007 issued without considering the period of 2.5 months and health medical careA detailed actuarial review performed the contract because the unearned pre- for foreign students with an averageduring 2008 has shown that the income mium was believed to be immaterial.duration of 3-4 years;recognition policy for certain contractsThe contracts requiring these adjust- for Portugal: roadside (yearly policy)in the US, Australian, and Portuguese ments are: and automotive maintenance con-Business Units requires adjustment for US: mainly travel insurance con- tracts (average duration 4.5 years).and this has led to a restatement beingtracts with an average duration ofThe total reserve adjustment requiredrequired of the 2007 results.3 months; can be summarized as follows:These entities used to recognize the pre- for Australia: travel insurance con-mium income in full when the policy wastracts with an average duration of CONVERTED TO EUROS31.12.200631.12.2007 31.12.2008 DEVIATION RECORDEDRESTA-DEVIATION(12.2008 EXCHANGE RATE)20072007TEMENT2008Portugal(1,605)(3,096)(3,478)(1,491)(1,491)(382)Australia (11,712) (8,234)(9,258) 3,478 (1,729)5,207 (1,025)USA (6,894)(6,328)(7,313) 566 (2,565)3,131 (985)Total (20,211) (17,658) (20,049)2,553 (4,294)6,847 (2,391)The tax rates applied to these adjust-recognition, other intangible xed assetsnance expense for each accountingments are : are measured at cost less accumulatedperiod. The depreciation policy for Portugal: 26.50%; amortisation and any accumulated leased assets is consistent with that for USA: 35%; impairment losses. other depreciable assets. Australia: 30%.Other intangible xed assets are amor- Investmentstised using the straight-line method overInvestments include securities availableAccountingtheir estimated period of benet with afor sale, investments at fair value throughand valuation policiesmaximum of 5 years.prot & loss, mortgages, long term bank deposits and loans.BALANCE SHEET Tangible xed assets Securities available for sale areTangible xed assets include propertyIntangible xed assets accounted for at fair value. Positive andand other tangible xed assets such asIntangible xed assets include goodwillnegative differences between marketequipment.and other intangible assets such asvalue and cost or amortised cost areProperty used for own use and equip-exclusivity fees and software purchasedincluded in a separate component ofment is stated at cost and depreciatedfrom others or developed in-house. shareholders equity, net of deferred tax.using the straight-line method over theGoodwill represents the difference Realised gains and losses are principallyshorter of the estimated life of the assetbetween the purchase price of subsi- determined by applying the average costor the lease term. Land is not depre-diaries and the proportionate share of method.ciated. Buildings are depreciated over atheir net assets valued at the current Investments at fair value through protmaximum of 50 years in accordance withvalue of all assets and liabilities at & loss are accounted for at fair value.the useful life of the building, while otherthe time of acquisition. Goodwill is Changes in fair value are included intangible xed assets are depreciated overrecognised as an asset in the balanceprot and loss.the period of their estimated useful life atsheet and is not amortised.Mortgages, long term bank depositsthe date of purchase which is betweenThe Mondial Assistance Group perio-and loans are valued at cost less any3 and 10 years.di cally evaluates the recoverability of necessary value adjustment.The Group recognises nance leases asGoodwill and takes into account eventsassets and liabilities in the balance sheetAccounts receivableor circumstances that indicate the exis-at the amount equal at the inception ofAccounts receivable are carried at nominaltence of an impairment. Impairmentthe lease to the fair value of the leasedvalue less any necessary value adjust-testing for goodwill is carried out atproperty. Initial direct costs incurred arement.least annually, at the end of the year. The included as part of the asset. Leaseimpairment is recognized through thepayments are apportioned between Deferred acquisition costsincome statement and the reversal of an the nance charge and the reductionDeferred acquisition costs, which areimpairment loss is prohibited.of the outstanding liability. The nance incurred in connection with the acqui-Other intangible xed assets are mea- charge is allocated to periods during thesition or renewal of insurance policies,sured initially at cost and are recognisedlease term so as to produce a constant are capitalised and amortised throughif it is probable that the future economicperiodic rate of interest on the remaining the income statement over the term ofbenets that are attributable to the assetbalance of the liability for each period.the policies.will ow to the Group and the cost of the A nance lease gives rise to deprecia-asset can be measured reliably. After initial tion expense for the asset as well as a 36 Mondial Assistance Annual Report 2008 41. Cash and cash equivalents by IBNR reserves (reserves for claims EXPLANATION OF THE This item includes balances with banksIncurred But Not Reported) based on ACCOUNTING AND payable on demand, cash on hand and management and statistical estimates. VALUATION POLICIES bank deposits with a maturity of three months or less at the date of purchase. Non-technical provisionsDIFFERING These include personnel provisions andFROM SWISS LAW The carrying amount of cash with banks similar liabilities, provision for income and cash on hand corresponds to the The most important differences are sum- taxes and other non-technical provi- fair value. Cash funds are stated at theirmarised below. sions. face value, with holdings of foreign notes Pension and similar reserves are cal- Investments available for sale and coins valued at year-end closing culated taking local circumstances into (afs investments) rates. account as well as expected futureInvestments available for sale are shown Deferred taxtrends in salaries and wages, retirementin the balance sheet at market value The calculation of deferred tax is basedrates and pension increases.with the unrealised gains / losses being on temporary differences between theDefined benefit plans are recognisedincluded under other reserves in share- carrying amounts of assets or liabilities using the method of accruing actuarialholders equity. in the published balance sheet and theirgains and losses through income.Investments are recorded at the lower of tax basis, and on differences arising fromProvisions for income taxes are calcu-cost and market value under the Swiss the application of uniform valuation poli-lated in accordance with the relevant Code of Obligations. cies for consolidation purposes. The taxlocal tax regulations. rates used for the calculation of deferredClaim equalisation reserves Other liabilities Claim equalisation reserves and catas- taxes are the local rates applicable in Other liabilities include deposits retained trophe reserves are not allowed under the countries concerned. Substantively from reinsurers, loans, liabilities direct/ Mondial Assistance Group accounting enacted changes in tax law are already indirect business, liabilities with asso- policies because they do not represent taken into account as at the balance ciated companies (current accounts),a present obligation towards third par- sheet date. deferred income and other liabilities.ties. Impairment of assets All assets are reviewed regularly toINCOME STATEMENTClaims reserves ensure that no further value adjustmentsTurnoverUnder Mondial Assistance Group are required. Valuation write-downs are Turnover includes insurance premiumsaccounting policies, claims reserves charged to the income statement if an and service income. usually are lower than under statutory other than temporary diminution in valueaccounting principles as they are calcu- is identied. Write-downs are based onPremiums earned lated at the best estimate of the ultimate the relevant estimated recoverablePremiums written for travel insurance are cost. The Swiss Code of Obligations amounts.reported proportionately as income over requires a conservative calculation in the term of the insurance contract on a accordance with the prudence prin- Accounting for operating leases daily basis.ciples. Equipment and vehicles held under operating leases, whereby the risks Claims and service administration Premium receivables / and benefits relating to ownership of expenses (internal claims handlingclaims payable the assets remain with the lessor, arecosts ICHC and internal service Premium receivables from fronting not recorded in the balance sheet and handling costs ISHC)transactions are shown net of claims all related expenses are accounted forClaims and service handling costs are payable. in the income statement in the period assessed according to business man- Acquisition costs they arise. agement criteria and reported under Under Mondial Assistance Group claims incurred and service administra- Technical provisions and deferred accounting policies acquisition costs tion expenses. service incomeare capitalised and amortised over the Technical provisions and deferred service Ordinary result term of policy. income unearned premium reserves, Interest income and interest expense Goodwill deferred service income, claim reserves are recognised on an accrual basis. Goodwill with an indenite useful life is and other technical provisions. Dividends are recognised as income not amortised under Mondial Assistance Premiums written and service income when received. Group accounting policies. Impairment attributable to future periods are deferred Interest on nance leases is recognised testing for goodwill is carried out at least under unearned premium reserves res-as interest expense over the term of the annually and if impairment is applicable, pectively under deferred service income respective lease. it is recognised through the income on a pro-rata basis, over the period of Income Taxesstatement. the contract on a daily basis. Income tax expense includes current Goodwill is usually amortised under the Claim reserves are assessed according to income taxes and deferred incomeSwiss Code of Obligations. local regulatory requirements, on a case taxes. by case basis and are supplemented Mondial Assistance Annual Report 200837 42. Financial resultsVALUATION ANALYSIS INVESTMENTS IN THOUSAND EUR 20082007FIXED-INCOME SECURITIES AND OTHER INVESTMENTSAcquisition cost of portfolio395,463 343,099Fair value per end of period 397,909 345,787Difference2,446 2,688SharesAquisition cost of portfolio 212 17Fair value per end of period 216 24Difference 47INTANGIBLE AND TANGIBLE FIXED ASSETS INTANGIBLEOTHER TANGIBLE REAL TOTALIN THOUSAND EUR FIXED ASSETSFIXED ASSETS ESTATE Balance value as of January 1st 47,63147,400 7,973 103,004Exchange rate change(451)(3,179)0(3,630)Additions5,40021,4290 26,829Change scope of consolidation (765) 132 0(633)Disposals (731)(8,227)(185)(9,143)Amortisation / Depreciation (7,488)(12,613) (82) (20,183)Change in accounting policies (728)(728)Balance value as of December 31st 42,86844,942 7,70695,516Real EstateTangible xed Assetsthey extend the useful life of the asset,The gross capitalised values totalledThe gross capitalised values totalled otherwise they are recognised as an10.987 thousand euros at the beginning 132.904 thousand euros at the begin-expense.of the year and 10.801 thousand eurosning of the year and 137.988 thousand Intangible xed Assetsat the end of the year. The decrease iseuros at the end of the year. Goodwill (net) amounted to 19.176due to a reclassication through build-Accumalated depreciation amounted to thousand euros at the beginning anding used by third parties. Accumalated 85.504 thousand euros at the beginning 19.497 thousand euros at the end ofdepreciation amounted to 3.014 thou- of the year and 93.046 thousand euros the period. Other intangible xed assetssand euros at the beginning of the yearat the end of the year. Expenditures (net) totalled 28.455 thousand euros atand 3.096 thousand euros at the end of to restore the future economic ben- the beginning of the year and 23.371the year.ets from the assets are capitalised if thousand euros at the end of the year.CHANGES IN CONSOLIDATED SHAREHOLDERS EQUITY IN THOUSAND EUR 20082007Shareholders equity as of January 1st344,667323,352Exchange rate differences(5,969)(1,061)Net prot for the nancial year62,564 57,084Unrealised gains on afs investments 4,328 (695)Unrealised losses on afs investments2,978 (1,716)Dividends to shareholders(25,650)(16,859)Others movements (3,513)(1,579)Correction of an error related to previous years (13,859)Shareholders equity as of December 31st379,405344,667 38 Mondial Assistance Annual Report 2008 43. DISCLOSURES OF ARTICLE 663 A/B CO, SUPPLEMENTED BY VOLUNTARY INFORMATIONIN THOUSAND EUR IF NOT OTHERWISE INDICATED 20082007 1. Contingent liabilities 34,236 51,031 2. Assets pledged as security for own obligations - 178 3. Leasing obligations82,326 83,682 4. Mondial Assistance International AG and Mondial Assistance AG belong to the the Allianz Suisse Insurance value added tax group and aretherefore jointly and severably liable for all value added tax liablities of the value added tax group to the Swiss Federal Tax Administration. 5. Participations with at least 20% of voting rights or capital share20082007 EUROPE Austria Mondial Assistance GmbH, Vienna Share capital in ATS15,000,00015,000,000 Purpose: Assistance and servicesShare100%100% Belgium Socit Belge dAssistance Internationale S.A., BrusselsShare capital in EUR7,709,000 7,709,000 Purpose: InsuranceShare 94.14%94.14% Socit Belge de Services Tlphoniques S.A., BrusselsShare capital in EUR 74,40074,400 Purpose: Services Share 94.99%94.43% Czech Republic Mondial Assistance s.r.o., Prague Share capital in CZK30,000,00030,000,000 Purpose: Services Share100%100% France Mondial Assistance Runion S.A., Saint Denis (Reunion Island) Share capital in EUR 329,008 329,008 Purpose: Services Share99.97%99.97% Gestion de Tlscurit et de Services S.A., ChtillonShare capital in EUR 720,000 720,000 Purpose: Services Share99.98%99.98% Mondial Assistance France S.A.S., Paris Share capital in EUR 7,584,077 7,538,390 Purpose: Services and brokerShare95.00%94.43% Fragonard Assurance S.A., Paris Share capital in EUR37,207,66035,688,980 Purpose: InsuranceShare95.00%94.43% Mondial Assistance S.A.S., ParisShare capital in EUR20,088,90020,088,900 Purpose: HoldingShare99.99%99.99% TEL2S , SARLShare capital in EUR72,51072,510 Purpose: Services Share99.91%99.91% Socit Europenne de Protection et de Services Share capital in EUR174,750 174,750 dAssistance Domicile S.A., Paris Purpose: Security and othersShare 56.00%56.00% Mondial Assistance France Services la personne S.A.S. Share capital in EUR340,000 340,000 Purpose: Services Share 95.00%94.43% Germany Mondial Assistance Deutschland GmbH, Munich Share capital in EUR 50,00050,000 Purpose: Services Share 50.99%50.00% REHACARE GmbH, Munich Share capital in EUR128,000 128,000 Purpose: ServiceShare 38.19%37.44% Great Britain Mondial Assistance United Kingdom Ltd, Croydon Surrey Share capital in GBP1,360,940 1,360,940 Purpose: Assistance and servicesShare 99.99%99.99% World Access Europe Ltd, London Share capital in GBP100 100 Purpose: Assistance and servicesShare 99.99%99.99% Mondial Assistance Annual Report 2008 39 44. Financial results2008 2007GreecePOLY - Assistance & Services A.E., Athens Share capital in EUR 60,000 60,000Purpose: Assistance and servicesShare 50.99% 50.99%HungaryELVIA Assistance Kft., Budapest Share capital in HUF3,000,0003,000,000Purpose: Services Share 100% 100%IrelandAssistance and Services Corporation of Ireland Ltd, DublinShare capital in EUR 146,050146,050Purpose: Services Share99.99% 99.99%ItalyMondial Service Italia S.r.l., MilanShare capital in EUR 98,000 98,000Purpose: Services Share 100% 100%Mondial Assistance Italia S.p.A., Milan Share capital in EUR7,908,2167,908,216Purpose: Insurance and reinsuranceShare 100% 100%Mondial Contact Center Italia S.r.l.Share capital in EUR 17,370 95,000Purpose: Call centerShare70% 100%The NetherlandsMondial Assistance B.V., AmsterdamShare capital in EUR454,000454,000Purpose: Reinsurance and services Share 100% 100%ELVIA Travel Insurance International N.V., AmsterdamShare capital in EUR 23,156,868 23,156,868Purpose: InsuranceShare 100% 100%PolandMondial Assistance Sp.z o.o., WarsawShare capital in PLN3,800,0003,800,000Purpose: Services Share 100% 100%PortugalMondial Assistance Portugal Servicos de Assistencia LDA, Lisbon Share capital in EUR1,600,0001,600,000Purpose: Services Share 100% 100%RussiaMondial Assistance OOOShare capital in RUB 48,000,000 48,000,000Purpose: Services Share 99.99% 100%SpainSociedad Mundial de Asistencia S.A., Madrid Share capital in EUR 210,350210,350Purpose: Services Share99.99% 99.99%Neoasistencia Manoteras Share capital in EUR19,006Purpose: Services Share99.99%Atencion integral a la dependenciaShare capital in EUR 300,000Purpose: Services Share50.00%SwitzerlandELVIA Reiseversicherungs-Gesellschaft AG, ZurichShare capital in CHF 25,000,000 25,000,000Purpose: Insurance and assistance Share 100% 100%MEDVANTIS Share capital in CHF125,450125,450Purpose: Services Share 100% 100%TurkeySAT S.A., IstanbulShare capital in TRY 206,785206,785Purpose: Services Share96.99% 95.99%Mondial Sigorta Aracilik Hizmetleri Limited Sirketi Share capital in TRY25,000Purpose: InsuranceShare97.05% AFRICAMauritius IslandMascareignes Services Assistance Ltd, Port LouisShare capital in MUR1,103,0001,103,000Purpose: Services Share 99.99% 99.99% 40 Mondial Assistance Annual Report 2008 45. 2008 2007 ASIA PACIFIC Australia Mondial Assistance Australia Holding (Pty) Ltd, Toowong Share capital in AUD11,000,000 11,000,000 Purpose: HoldingShare100% 100% ETI Australia (Pty) Ltd, ToowongShare capital in AUD11,000,000 11,000,000 Purpose: Services Share100% 100% China Mondial Assistance Beijing Services Co. Ltd., Beijing Share capital in EUR 1,780,0001,780,000 Purpose: Services Share99.99% 99.99% India Mondial Services (India) Private LimitedShare capital in INR30