GROUPAMA / 2018 Registration document

6 EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS Romania (e) Premium income of the Romania subsidiary Groupama Asigurari rose by +8.7%to €216 millionat 31 December2018. The property and casualty insurance business (€201 million) increased+8.9%. The passengervehicle segment (more than 70% of premiums in property and casualty insurance) increased +10.8%, breaking down into +7.8% for the damage insurance segment and +16.5% for the liability segment, particularly under the effect of price increases combined with development of the portfolio. Life and health insurance premium income (€15 million) increased +6.8%over the period, driven by growth in group health (+13.6%), particularly dueto development of theportfolio. The Romanian subsidiary’s economic operating income totalled +€9 million at 31 December 2018 compared with a result of +€10 million at31 December 2017. The net combined ratio in property and casualty insurance improved slightly (+0.9 points) to 96.7%. The current loss experiencedeteriorateddue in particular to the increase in average costs of claims weighing on motor vehicle risks and the impact of weather events on agricultural risks. The operating cost ratio was up 0.2 points at32.5% following theincrease incommissions. The technical result of life and health insurance decreased slightly with a decrease in the result of life insuranceactivities. The increased recurring financial margin (+€2 million) followed the favourable trendon markets. Net incomewas a profit of +€2 millionat 31 December2018 versus +€10 million at 31 December 2017.

casualty insurance (€11 million) was up +27.0%, driven by growth in the passenger vehicle segment (+44.9%), which benefited from development of theportfolio in numberof policies. The contribution of the Bulgarian subsidiaries to the Group’s net income was stable, representing +€1 million of income at 31 December 2018. GanOutre-Mer (g) Premium income for Gan Outre-Mer rose +0.9% to €64 million at 31 December 2018. Property and casualty insurance remained stable at €55 million, with growth in the home insurance segment (+6.9%) being offset by the decline in the business damage segment (-11.1%, in particular as a result of the voluntary termination of policies). Premium income in life and health insurance (mainly individual health) continued to grow. It was up +6.8% at €9 million. Gan Outre-Mer’s economic operating income totalled +€9 million in 2018 compared with €2 million in 2017. Net underwriting income in property andcasualty insurance increased by €10 million with a combinednet ratio that improved -18.7 pointsto 77.6%. As a reminder, fiscal year 2017was affected by the occurrence of a major fire and various weather events. The operatingcost rate was down -0.1 pointsat 28.3% in2018. Gan Outre-Mer’snet income totalled €9 million in 2018, compared with €2 million in 2017. Tunisia (h) The equity-method income of the Tunisian subsidiary Star was +€1 million in 2018. China (i) The Chinese subsidiary’s contribution represented a profit of +€4 million at 31 December 2018 compared with a profit of +€6 million at 31 December 2017.

Bulgaria (f)

In Bulgaria, premium income of the subsidiaries Groupama Zastrahovane and Groupama Jivotozastrahovane increased +19.8% to €18 million at 31 December 2018. Life and health insurancepremium income grew +9.7% to €7 million.Propertyand

Financial and banking businesses 6.1.4.5

31.12.2017

31.12.2018

2018-2017 change

(in millions of euros)

Net banking income, netof costof riskandlong-term financial instruments Other operating income andexpenses and non-underwriting current income andexpenses

143

153

10

6.9%

(97)

(101)

(4)

-4.0%

Other items

(15)

(18)

(3)

-21.3%

Economicoperating income

32

34

3

8.8%

Other operations netof corporate income tax

(35)

(59)

(24)

-68.9%

GROUP NET INCOME

(3)

(24)

(21)

<-100%

The economic operating income of financial and banking investment property management subsidiary, was stable over the businesses totalled +€34 million in 2018 versus +€32 million in period.

2017. These figures include the income of Groupama Asset Management and Groupama Épargne Salariale, with net banking income up +7.2% and +2.7% respectively over the period. The economic operating income of Groupama Immobilier, the Group’s

Net income from financial and banking activities amounted to -€24 million in 2018 and includes the equity-method income of Orange Bank in other transactions net of tax.

168

REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES

Made with FlippingBook flipbook maker