APRIL: third-quarter 2016 sales

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Lyon, 25 October 2016

APRIL: third-quarter 2016 sales

€645.3m in sales at end September 2016, up 7.5% based on reported data and 7.2% like-for-like¹
Growth in Property & Casualty sales in line with first half, both in brokerage (up 3.5% like-for-like¹) and insurance (up 34.7% like-for-like).
Brokerage commissions in Health & Personal Protection hold up well (down 1.4% like-for-like).

"In the third quarter, sales momentum was in line with trends observed since early 2016 and the return to growth in brokerage commissions is confirmed. Nevertheless, we remain cautious regarding the end of the year given the very challenging macroeconomic and regulatory environment in France and abroad. While our teams are more focused than ever on business development, we are pursuing our efforts in adapting our business models and restoring profitability to loss-making operations. In addition, we are continuing our policy of selected acquisitions, in order to support the expansion of our expertise and of some of our business lines abroad. These initiatives procede from our strategic growth levers in order to improve the Group's performance over the medium term." APRIL Chairman & CEO Bruno Rousset stated.

APRIL recorded consolidated sales of €645.3m for the first nine months of 2016, up 7.5% compared with reported figures for the same period in 2015.

IFRS - €m	9M 2016	9M 2015	Change	9M 2015 LFL¹	Change
Consolidated sales	645.3	600.2	+7.5%	601.8	+7.2%
Brokerage commissions and fees	361.1	358.2	+0.8%	359.7	+0.4%
Insurance premiums	284.2	242.0	+17.4%	242.0	+17.4%

[1] Pro forma or 'like-for-like' sales at constant consolidation scope and exchange rates, adjusted for acquisitions, disposals and changes in consolidation method, as well as exchange rate fluctuations, calculated on the basis of the prior year accounts converted using the exchange rate for the current year.

The Group posted a €3.8m impact of exchange rate fluctuations for the period, mainly affecting Property & Casualty commissions in Brazil, the UK and Canada. Consolidation gains of €5.4m, primarily resulting from the acquisition of Avilog at the end of 2015, GlobalHealth in early 2016 and Bamado in July 2016, mainly contributed to Health & Personal Protection commissions.

Like-for-like sales for the first nine months of the year rose by 7.2%, with brokerage commissions slightly up by 0.4% to €361.1m and a solid growth in insurance premiums, up 17.4% to €284.2m.

Breakdown of the change in sales between 2015 and 2016 - €m
Consolidated sales as at 30.09.2015	600.2
Impact of exchange rate fluctuations	-3.8
Acquisitions	+6.6
Disposals	-1.2
Like-for-like¹ sales as at 30.09.2015	601.8
Increase in brokerage commissions and fees	+1.3
Increase in insurance premiums	+42.2
Sales as at 30.09.2016	645.3

Sales by division

Changes by type of revenues are as follows:

ARIVA.DE Börsen-Geflüster

Kurse

April

0,00%

Brokerage commissions in Health & Personal Protection amounted to €231.8m at end September 2016, up slightly (0.6%) on a reported basis compared to the same period last year. Excluding the impact of changes in the scope of consolidation relating to the Avilog, GlobalHealth and Bamado acquisitions, commissions were down 1.4%. The trend observed is in line with the first half. Group and loan insurance continued to grow without fully offsetting the impact of individual employee health insurance cancellations.
Property & Casualty commissions amounted to €130.5m and continued to grow as they increased by 1.0% compared to reported data for 2015. Excluding the impact of exchange rate fluctuations, organic growth was 3.5%. This performance, while slightly lower compared to the first half, remains satisfactory: wholesale brokerage activities continued to expand, particularly in substandard motor, two-wheeled vehicle insurance and the professional range. Travel insurance and assistance activities held up well in a challenging environment, and recorded an increase in sales compared with the previous financial year.
The 7.1% increase in Health & Personal Protection insurance premiums reflects the momentum in this business, driven by the development of individual (seniors and self-employed) Health & Personal Protection and expatriate insurance portfolios. It is also related to the growth in group private health insurance portfolios generated by partnerships set up to meet the demand created by the extension of corporate group private health insurance. These solid performances contribute to offsetting the expected decreases in some run-off portfolio.
The trend in Property & Casualty insurance premiums continued, with premiums up €31.5m to €122.3m. This reflects the expansion of our legal protection business and corporate and affinity member operations, in a highly-reinsured risk-carrying model.

IFRS - €m	9M 2016	9M 2015	Change	9M 2015 LFL¹	Change
Health & Personal Protection	394.3	382.1	+3.2%	386.8	+1.9%
Commissions and fees	231.8	230.4	+0.6%	235.1	-1.4%
Insurance premiums	162.5	151.7	+7.1%	151.7	+7.1%
Property & Casualty	252.8	220.0	+14.9%	216.9	+16.6%
Commissions and fees	130.5	129.2	+1.0%	126.1	+3.5%
Insurance premiums	122.3	90.7	+34.8%	90.8	+34.7%
Intra-group eliminations	-1.7	-1.8	+3.1%	-2.0	+11.2%

Highlights of the third quarter of 2016:

APRIL affirmed its difference with two digital innovations this quarter:

To strengthen its leading position in delegated loan insurance, APRIL presented its Digital application process, a platform designed to streamline and speed up the application procedure,
In order to provide further support to its broker partners in their development and digitalisation, the Group rolled out the APRIL ON pilot programme, a new online platform that offers major innovations in terms of services and customer relationship management.

Quarterly sales

IFRS - €m	2016	2015	Change	2015 LFL¹	Change
Q1	208.4	195.6	+6.5%	195.5	+6.6%
Q2	221.8	206.1	+7.6%	206.2	+7.6%
Q3	215.1	198.5	+8.4%	200.1	+7.5%
Q4	-	197.8	-	-	-
Total	-	798.0	-	-	-

Outlook:

The Group remains focused on restoring the profitability of its loss-making operations and will continue its efforts to adapt certain businesses.

For 2016, APRIL had anticipated a decline in its current EBIT that could range between 8% and 12%. The third quarter is in line with trends observed in the first half and therefore, the Group confirms its forecast of a decrease towards the lower end of the results range.

Upcoming releases:

- 24 January 2017 after market close: 2016 Full-year sales
- 8 March 2017 after market close: 2016 Annual results

This release contains forward-looking statements that are based on assessments or assumptions that were reasonable at the date of the release, and which may change or be altered due to, in particular, random events or uncertainties and risks relating to the economic, financial, regulatory and competitive environment, the risks set out in the 2015 Registration Document, and any risks that are unknown or non-material to date that may subsequently occur. The Company undertakes to publish or disclose any adjustments or updates to this information as part of the periodical and permanent information obligation to which all listed companies are subject.

Marc Le Doze, Group CFO, will be holding a conference call for financial analysts, investors, and the press this evening at 6.00 pm (French time).

Dial in details: France - +33 (0)1 70 99 32 12 / United Kingdom - +44 (0)207 1620 177

Please dial in a few minutes beforehand, in order to register, and give the following reference number: 960 478

Contacts:

Analysts and investors
Marc Le Doze: +33 (0)4 72 36 18 85 / Guillaume Cerezo: +33 (0)4 72 36 18 58

Press
Samantha Druon: +33(0)4 72 00 46 56 - samantha.druon@insign.fr

About APRIL

Established in 1988, APRIL is an international insurance services group with operations based in 31 countries in Europe, America, Asia, Africa and the Middle East, and the leading wholesale broker in France. Listed on Euronext Paris (Compartment B), the Group posted sales of €798m in 2015. Its 3,800 staff members design, manage and distribute specialist insurance solutions (health and personal protection, property and casualty, mobility and legal protection) as well as assistance services, for private individuals, professionals and businesses, by pursuing the ambition APRIL set itself from the very beginning: to change the image of insurance and make it easier and more accessible. Driven by a strong entrepreneurial culture, the group bases its development on four values in support of its customers: building trust, pushing boundaries, innovating and keeping things simple.

Full regulated information is available on our website at www.april.com (Investors section).

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: April via Globenewswire

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