La banque d'un monde qui change 2004 - BNP Paribas

2004 Review of OperationsPremium rates and policy terms are based on the Bank’sknown claims experience, market claims experience and globalinsurance market capacity.Some business units may take out insurance locally to covercertain specific activities, or if adequate coverage cannot beobtained on the French market.After two difficult years, conditions in the insurance marketbecame somewhat easier in 2004, allowing the Group tomaintain high quality coverage of risks at competitive rates.In selecting insurers, the Group pays close attention tothe credit rating and claims paying ability of the companiesconcerned.Pledged AssetsAssets given as pledges do not represent material amountsat Group level, and mainly comprise assets of Klépierre, theGroup’s listed subsidiary. For more details, please refer to thefinancial data published by Klépierre.Claims and LitigationClaims and litigation ongoing at 31 December 2004 arecovered by adequate provisions. The outcome of these claimsand litigation is not likely to significantly impact the Group’sfinancial position.Patents, Licences, ContractsBNP Paribas is not dependent upon any patents or licencesor any industrial, commercial or financial services contractsfor the conduct of its business.In April 2004, BNP Paribas and its subsidiaries beganoutsourcing data processing operations to the “BNP ParibasPartners for Innovation” (BP2I) joint venture set up with IBMat the end of 2003.BNP Paribas exercises significant influence over BP21, whichis owned on a 50/50 basis with IBM. BP21 is staffedessentially with BNP Paribas employees and its officesand data centres are owned by the Group. Its corporategovernance system provides BNP Paribas with a contractualright of oversight and the Group can take back responsibilityfor data processing operations if necessary.Exceptional EventsAt 31 December 2004, no exceptional events had occurredand no claims or litigation were pending or in progress thatwould be likely to have a material adverse effect on the assetsand liabilities, financial position or results of the BNP ParibasGroup.191BNP PARIBAS - ANNUAL REPORT 2004