GROUPAMA / 2018 Registration document

6 EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS

In life andhealth insurance, economic operating income in France was €128 million in 2018 comparedwith €118 millionin 2017.

Life and health insurance in France (in millions of euros)

31.12.2017

31.12.2018

2018-2017 change

Gross earned premiums

4,243

100.0% 4,588

100.0%

345

8.1%

Underwriting expenses (policyservicing) – excluding claims management costs

(3,339)

-78.7% (3,575)

-77.9%

(236)

-7.1%

Reinsurance balance

(19)

-0.4%

(23)

-0.5%

(5)

-25.5%

Technical margin net of reinsurance

886

20.9%

989

21.6%

104

11.7%

Net expenses from currentunderwriting operations

(859)

-20.3%

(913)

-19.9%

(53)

-6.2%

Underwriting incomenetof reinsurance

26

0.6%

77 80

1.7%

50

>100%

Recurring financialmarginnetof profit sharing andtax

124

2.9%

1.7%

(45)

-35.9%

Other items

(33)

-0.8%

(28)

-0.6%

4

13.4%

Economicoperating income

118

2.8%

128

2.8%

10

8.5%

Capital gains realisednet of corporate income tax nd profit sharing Allocations to reserves for long-term impairment net of corporate income tax andprofitsharing Gainsor losses on financialssetsrecognised at fair value netof corporate incometax andprofit sharing

31

0.7%

154

3.4%

123

>100%

(8)

-0.2%

(1)

0.0%

7

88.1%

8

0.2%

(4)

-0.1%

(12)

<-100%

Other operations netof corporate income tax

(141)

-3.3%

(21)

-0.5%

120

85.0%

Incomeexcluding restructuring

9

0.2%

256

5.6%

247

>100%

Net income from discontinued businessactivities

17

0.4%

(17)

NA

GROUP NET INCOME

25

0.6%

256

5.6%

231

>100%

Underwriting income net of reinsurance improved by +€50 million in 2018. With regard to Groupama Gan Vie, recurring net underwriting income increasedby €54 millionover the period in connectionwith the increase in the net technical margin in reinsurance, mainly in group insurance. In individual insurance, the technical margin excluding expenses increased by +€16 milliondue to the increase in premium charges (+€8 million)mainly in health and individual protection,markups on outstanding UL (+€5 million), and management markups on the L441 plans(+€6 million). In group insurance, the margin excluding expenses increased significantly by +€83 million before taxes due to the increase in markups on premiums (+€23 million) in connection with the increase in premium income from health and individual protection and inward reinsurance. The margin also benefited from non-recurringitems (surplus onprior years). The technical net income of life and health insurance of the entity Groupama Assurances Mutuelles decreased slightly over the period.

The recurring financial margin (net of profit sharing and taxes) was €80 million, down €45 million over the period due in particular to the increasein the profit-sharing rate. In France, the result excluding discontinued activities of life and health insurance amounted to €256 million at 31 December 2018 comparedwith €9 millionat 31 December2017. The non-recurring financial margin increased€118 millionover the period, mainly due to greater realised capital gains in connection with the sale of a property in La Défense. Non-recurring items amounted to -€21 million in 2018. As a reminder, fiscal year 2017was marked by extraordinary items representing an expense of -€141 million, which included the reserving of statutory enhancements of life annuities following the legislative change for -€133 million and the corporate tax surcharge. After taking into account net income from discontinued businesses, net income from life and health insurance in France amounted to €256 million in 2018 versus €25 million in 2017.

164

REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES