GROUPAMA / 2018 Registration document

6 EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS Amaline’s net combined ratio stood at 102.3% in 2018, ❯ comparedwith 101.4% in 2017 (+0.9 points),in connectionwith the worsening of the net loss experience (+5.6 points to 70.7% in 2018). The occurrence of a serious claim and lower amounts of reserves releases on prior years explain this change. The operating cost ratio decreasedby -4.7 pointsto 31.6% in 2018, reflecting theefforts to control generalexpenses.

In France, the recurring financial margin (after tax) of the property and casualty insurance business amounted to €68 million in 2018, up +20.5% overthe period. In France, net income amounted to €84 million in 2018 versus €11 million in 2017. The non-recurring financial margin increased by €9 million overthe period.

Life and healthinsurance (b)

L&H France

Insurance premium income (in millions of euros)

31.12.2017 pro forma

31.12.2018

Change %

Groupama Gan Vie

3,595

3,919

9.0%

Groupama Assurances Mutuelles

462

478

3.6%

Gan Assurances

142

142

-0.5%

Amaline Assurances

3

3

-1.1%

Other entities  (1)

8

5

-36.3%

TOTAL

4,211

4,548

8.0%

Including Assuvie. (1)

Life and health insurance premium income (57.3% of premium income in France) increased +8.0% to €4.548 billion. Group premium income for life and capitalisation in France rose +7.9% in a market up +4% at the end of December 2018(source: FFA). This change is mainly attributable to the increase in individual UL savings/pensions(+11.3%), with premium income of the segment in euros increasing by +1.0%. After taking into account arbitrage operations (euros for unit-linked for -€237 million) on Fourgous transfers (€269 million) and unit-linked net inflows (€502 million), the rate of actuarial reserves in individual UL savings is now 25.3% (compared with 25.8% at 31 December 2017). The good performance posted by the group retirement segment (+64.3%) should also be noted. Premium income in health and bodily injury at 31 December2018 was up +8.1% comparedwith the previous period. This change is due in particular to the increase in health insurance (+9.0%), which breaks down into an increase of +0.5% in individual health and an increase of +14.2% in group health. The municipal staff insurance segment grew+13.9%. The Group’s net inflows were negative at -€891 million at 31 December 2018 compared with -€1,200 million over the previous period.

The networks comprising Groupama Gan Vie posted +9.0% growth in premium income to €3.919 billionat 31 December2018. By business line, Groupama Gan Vie’s premium income was mostly generated in individual insurance (55.9%), with written premiums +3.0% higher compared with 31 December 2017 at €2.192 billion. The individual savings business rose +6.6%, including +7.5% in UL and +5.8% in euros. Unit-linked outstandings in individual savings now represent 25.3% of total outstandingscomparedwith 25.8%at the end of December 2017. This slight decrease is related to market effects of actuarial reserves bookedmark to market. Note that in addition to premium income, Groupama Gan Vie managed Fourgous transfers to multi-component funds (not recognised in premium income) for €269 million (including €115 million invested in UL). Group insurance (44.1% of business) increased by +17.7% to €1.727 billion. It was driven by the growth of the group health (+14.8%) and group retirement (+64.3%) segments, which benefited especially from the development of several single-premium policies for approximately €100 million i UL.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES