GROUPAMA / 2018 Registration document
2 THE GROUP’S BUSINESSES INSURANCE IN FRANCE
2.1.3
INTERNATIONAL NETWORKS
exclusive agreement with the farming cooperative TKK in 2008. During the 1 st half of 2013, GroupamaAssicurazionisigned several bancassurance agreements with independent regional banking institutes of mediumsize locatedin north-centralItaly. At the end of 2010, Groupama and the AVIC group (Aviation IndustryCorporationof China) signedan agreementon the creation of a joint venture to expand activities in the non-life insurance segment in the People’s Republic of China. The joint venture Groupama AVIC has established sales and service networks for individualsand companiesin the provinceswhere it holds licences. In November 2012,it obtainedthe qualificationto providecomplete coverage in non-life insurance on the Chinese market. In 2013, Groupama and the AVIC Group signed a second partnership agreementin the field of insuranceto support the strong growth of GroupamaAVIC Insurance on the agriculturalmarket and the rural sector in China. In 2017, Groupama AVIC Insurance is present in 7 provincesin the People’s Republicof China.
Groupama offers a wide range of non-life and life insurance products internationally, in nine countries, mainly in Europe. Products on these markets are offered via various distribution networks, particularly exclusive agents, salespeople, brokers, banking networksand partnerships. In the mid-2000s, the Group began to establish banking partnerships,sometimes exclusive, a particular example being the exclusive agreement with OTP Bank covering several countries in Central and Eastern Europe; these partnerships have enabled the Group to develop in new markets supported by established players. In addition to bancassurance partnerships, the international subsidiaries have developed exclusive and non-exclusive distribution agreements with partners such as leasing companies, automobile distribution networks, or farming cooperatives, such as in Turkey, where the Group signed an
INSURANCE IN FRANCE
2.2
2.2.1
ECONOMIC ENVIRONMENT AND
2.2.2
COMPETITION AND POSITIONING
MARKET TRENDS
In 2018, French insurance premium income was higher at €218 billion. This general market trend reflects the 2.8% increase in activity in property and casualty insurance and life and health insurance (+4.3%), which represented nearly 75% of premium income in 2018 (source: FFA – 4 February 2019). Life and health insurance premium income totalled €164 billion. In life insurance, contributionsincreasedby +4% to €140 billionas of the end of 2018. The proportion of UL vehicles was 28%. Net life insurance inflows (deposits greater than withdrawals) totalled €22.4 billion, with net inflows of €21.1 billion for unit-linked products. Life insurance assets continued to grow, amounting to €1,700 billion in 2018. In health insurance, premium income grew +5.7% to €23.8 billion, with growth in healthcare (+7.4%) and protection insurance (+3.7%). Premium income in property and casualty insurance increased +2.8% to €56 billion. The individual insurance sector continues to drive the market upward, with an increase in motor insurance of +2.9% and comprehensivehome of +2.7%. The motor insurance loss experience worsened in 2018, especially due to the increase in average costs prevailing over the decrease in theft and liability frequencies. In home insurance, the overall loss experience has worseneddue to the extensivewater damage in the first half of the year as well as fires.
On the mature insurance market in France, many insurance companies offer products comparable to Groupama’s products, sometimes through the same marketing techniques. The Group is in competition with insurance companies, mutuals and bancassurance companies and may face competition on the savings market from Asset Managers, independent asset management advisors andother financial institutions. The difference lies primarily in the following criteria: the size, power and quality of the distribution networks, ❯ particularly inadvisoryservices; the range of products offered, their quality and the capacity for ❯ innovation; prices; ❯ service quality; ❯ financial management performance; ❯ brand reputationand awareness; ❯ attractiveness ofproducts to customers. ❯
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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES
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