GROUPAMA / 2018 Registration document

EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS

International activity and earnings 6.1.4.4

31.12.2017 pro forma

31.12.2018

International premium income (in millions of euros)

L&H

P&C

Total

L&H

P&C

Total

Italy

493

1,013

1,506

440

1,041

1,481

Greece

53

79

132

52

86

139

Turkey

55

189

244

59

206

265

Hungary

184

156

339

188

167

355

Romania

14

184

198

15

201

216

Bulgaria

6

9

15

7

11

18

Gan Outre-Mer

8

55

63

9

55

64

TOTAL

813

1,685

2,498

770

1,768

2,537

The group’s International combined premium income was €2.537 billion at 31 December 2018, up +1.6% compared with 31 December 2017. Property and casualty insurance premium income totalled €1.768 billion at 31 December 2018, a +4.9% increase over the previous period. The growth in the passenger vehicle segment (+6.3%), particularly in Italy, Romania, and Turkey, combined with the growth of the business and municipal property segment (+3.8%),explains this development. Life and health insurance premium income decreasedby -5.3% to €770 million,with mixed trends among the segments.Individual life and health insurance decreased -7.9% due to the decline in individual savings/pensions(-12.6%), particularly in Italy. Group life and health insurancewas up +12.2%at €116 million,driven by the good performance of the group retirement (+30.7%) and group health (+24.6%) segments, mainly in Italy.

Economic operating income for insurance on the International scope was €43 million in 2018 (-€41 million comparedwith 2017). The property and casualty insurance result decreased by nearly -€30 million with a combined net ratio at 103.2% (+2.6 points compared with 2017). The net loss experience decreased by +1.9 points to 71.1% in 2018. This trend conceals the mixed results across countries. Technical results worsened in Italy, particularly in the motor liability segment, while they improved in Hungary, especially in connection with pricing adjustments and a degree of clemency in serious and weather claims. The operating cost ratio was up 0.7 points at 32.1%. The result of the life and health insurance business declined by -€11 million as of 31 December 2018 due in particular to the increase in the loss experienceof the group protection segment in Italy.

6

Economic operating income (in millions of euros)

31.12.2017

31.12.2018

Italy

37

(26)

Greece

9

10

Turkey

7

10

Hungary

11

26

Romania

10

9

Bulgaria

1

1

Gan Outre-Mer

2

9

Equity-method entities

7 1

5 1

Tunisia (Star)

China (AVIC)

6

4

TOTAL

84

43

165

REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES