14
Annual Report -
2013
-
Vivendi
Group Profile
| Businesses | Litigation | Risk Factors
1
Insurance
1.5.
Insurance
Vivendi has centralized insurance coverage with major French and
international insurance companies, through group insurance schemes
established by the Group’s Insurance Department to cover risks that
apply to all its subsidiaries, combined with coverage provided at the
level of each subsidiary for their specific risks. These policies are
subject to regular competitive bids to allow the Group to benefit from
optimal technical and financial conditions.
These insurance schemes supplement the Group’s risk management
policy. In particular, as part of the Property Damage / Business
Interruption plan, regular inspections of the Group’s main facilities,
in France and abroad, are performed by insurers, allowing them to
better assess the risks covered, and enabling Vivendi to optimize the
conditions for negotiating the corresponding insurance policies. This risk
management policy also includes “return to work”, or first aid plans to
address incidents affecting the nerve center of a particular business
unit, as well as environmental protection measures.
The main insurance schemes taken out by Vivendi on behalf of
its subsidiaries are the following: property damage and business
interruption, third-party liability and work accidents.
1.5.1.
Property Damage and Businesses Interruption
General insurance programs for the entire Group are in place for a total
coverage of up to €400 million per loss. These programs cover risks of
fire, water damage, natural events, terrorism (depending on the legal
restrictions in each relevant country or state) and business interruption
resulting from these events. In general, the applicable excess per
incident is €250,000.
1.5.2.
Third-Party Liability
Business and third-party product liability schemes have been
implemented and provide aggregate cumulative coverage of
€150 million per year for the entire Group. This amount supplements
various so-called first-line policies that are subscribed for directly by
the business units (i.e., Canal+ Group, Universal Music Group, GVT, SFR
and the Maroc Telecom Group), for an aggregate amount comprised
between 2 and 16 million dollars or euros, as applicable.
1.5.3.
Work Accidents
Certain schemes are specific to operations in the United States,
particularly those relating to work accidents, for which the employer
remains liable for insurance purposes. So-called “workers’
compensation programs” have been implemented to address the
requirements under the various state laws.
1.6.
Investments
Vivendi’s main investments include acquisitions of financial
investments, as described in Section 1.1 of the Financial Report, as
well as investments in content and capital expenditures, as described
in Sections 3 and 4.2 of the Financial Report. The impact of these
investments on Vivendi’s financial position is described in Section 5 of
the Financial Report. The impact of financial investments on Vivendi’s
Consolidated Statement of Financial Position is described in Note 2
of the Appendix to the Consolidated Financial Statements, and the
impact of both content investments and capital expenditures on the
Consolidated Statement of Financial Position is described in Notes 11,
12, 13 and 14 of the Appendix to the Consolidated Financial Statements.
Moreover, the contractual commitments assumed by Vivendi, as part of
the acquisitions of financial investments as well as content investments
and capital expenditures, are described in Note 27 of the Appendix to
the Consolidated Financial Statements. Capital expenditure, broken
down by geographic region and business unit, is presented in Note 3
of the Appendix to the Consolidated Financial Statements. The Group
is not planning any future investments for which Management has firm
commitments, other than those described in Note 27 of the Appendix to
the Consolidated Financial Statements.
