GROUPAMA / 2018 Registration document
EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS
Groupama Assurances Mutuelles and holdings 6.1.4.6
31.12.2017
31.12.2018
2018-2017 change
(in millions of euros)
Other operating income andexpenses and non-underwriting current income andexpenses
(117)
(119)
(1)
-1.1%
Recurring financial income (after corporate incometax)
10
(12)
(23)
<-100%
Other items
62
42
(20)
-32.4%
Economicoperating income
(45)
(89)
(44)
-96.6%
Capital gains realisednet of corporate income tax
68
89
21
30.4%
Allocations to reserves for long-term impairment net of corporate income tax Gainsor losses on financialssetsrecognised at fair value netof corporate incometax
(2)
(2)
15
12
(3)
-22.1%
Financing expenses
(57)
(57)
-0.2%
Other operations netof corporate income tax
(75)
32
107
>100%
Resultexcludingdiscontinued operations
(95) 108
(16)
79
82.8%
Net income from discontinued businessactivities
(2)
(111)
<-100%
GROUP NET INCOME
13
(19)
(32)
<-100%
Groupama Assurances Mutuelles is the head entity of the Group and is the central body. It acts as a holding company by holding (directly or indirectly) all of the Group’s French and international subsidiaries. In this function, Groupama Assurances Mutuelles ensures the operational management of the Group. It is the focal point for internal and external financing. The financial result is broken down on a standardisedbasis for the underwritingactivity. The expenses allocated to that activity correspond to the share of costs and expenses of General Management, functional departmentsand shared, non-underwritingexpenses. The holding economic operating income totalled -€89 million in 2018, a decrease of -€44 millioncomparedwith 2017, mainly due to the decline in therecurring financialmargin.
The result excluding discontinued activities of the holding companies improved by +€79 million to -16 million in 2018. The non-recurring financial margin improved due to the realisation of significant capital gains. Other transactionsnet of taxes generated income of +€32 million, whereas they represented an expense of -€75 million in 2017 in connection with reserves for contingencies and charges and non-recurringtax effects. The net income of holding companieswas a loss of -€19 millionat 31 December2018 comparedwith a profit of +€13 millionin 2017. The result from discontinued businesses (-€2 million) corresponds to the result from the sale of the Portuguesesubsidiaries,whereas in 2017, the income of +€108 millioncorrespondedto the share of the result on the sale of Icade shares allocated to the holding companybusiness.
6
The Group’s netincome breaks down as follows:
Net income (in millions of euros)
31.12.2017
31.12.2018
Total Insurance – France
36
340
Total Insurance – International
91
22
Banking and financialbusinesses
(3)
(24)
Holding activities
57
(19)
Impairment of goodwill
(58)
Other
(36)
TOTAL GROUPAMA SA NETINCOME
87
319
169
REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES
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