“The name Cardif provides coherence,” says Cardif Lux International CEO Fabrice Bagne. “As the life insurance company of BNP Paribas Assurance, it means we strengthen our link with BNP Paribas and can be consistent in our communication.” Bagne admits that in the current climate of uncertainty that link can only be positive. After all, BNP Paribas has enhanced its reputation as one of the most solid financial institutions during the crisis and has an AA+ rating from Standard & Poor’s. Nevertheless, Bagne is keen to emphasise Cardif Lux International’s open architecture policy. “The majority of our business is conducted with some of the biggest competitors of BNP Paribas,” he explains. “We have partnerships with the leading private banks in the world.” Indeed, close to 70% of Cardif Lux International’s business is conducted with partners outside the BNP Paribas Group.

Investlife Luxembourg was created by Cardif and BNP Paribas Luxembourg in 1994 to conduct the mass affluent asset retail of life insurance products via French and Belgian brokers. By 2000 the company was ranked second in Luxembourg behind Lombard International, with turnover of close to 600 million euros, which, says Bagne, was about as far as the company could go. Coinciding with changes to the regulatory legislation governing life insurance, this led to a review of the company’s strategy and operations and between 2000 and 2004 it invested in an overhaul of risk management, technical support and back office operations. This gave the company a solid foundation on which it could, with the arrival of Bagne in June 2006, embark on a new commercial strategy.

That strategy has clearly paid off as the company has announced record figures of more than 700 million euros in Gross Written Premiums for 2008. By the end of September 2008 it enjoyed a 9.5% share of the Luxembourg market compared with 3.5% at the end of 2007, which places it third in the Luxembourg league table behind Lombard and Fortis. “We completely changed our leading personnel, with a new technical director and new commercial director. All members of the commercial team have been with the company for less than three years,” Bagne explains.

The main thrust of the new commercial strategy has been threefold. Firstly, the company targeted High and Ultra High Net Worth Individuals, particularly through its new Personal Life Solutions arm, which offers tailor-made services via partnerships with renowned private banks, financial institutions and high-level independent wealth managers. Secondly, it launched innovative products such as a three-in-one service that allows customers to combine three types of investment into the same policy and modify their portfolio allocations between the three. And thirdly, the company expanded its geographical reach so that it now offers policies compliant with regulations in France, Belgium, Germany, Italy and Spain. It can also offer services via its numerous partnerships to UK and Swiss residents and is also expanding to South America. Cardif Lux International has also launched an Internet service, finagora.lu, which offers its partners access to professional communication and management tools in five languages.

The commercial expansion with multiple partners has been enhanced by adherence to strict confidentiality regulations. “We have a very strong Chinese Wall which complies with Luxembourg regulatory requirements on client confidentiality,” says Bagne. “Clients may enjoy the security of working with a member of the BNP Paribas Group, but they also want the guarantee of autonomy.” In the current economic climate, clients are also looking for secure products and Bagne reveals that Cardif Lux International will be launching two guaranteed rate products in January, and during 2009 will be seeking other products that reflect the trend for security. “Our ambition for 2009 is to do at least as well as 2008,” says Bagne. “We are confident that our new product range, our new commercial team and the change in name to Cardif Lux International have armed us well for a good year.”