GROUPAMA / 2019 Universal Registration Document

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

31.12.2018

31.12.2019

(in millions ofeuros)

Economicoperatingincome

298

413

Net capital gains realised (1)

351

354

Allocationto reservesfor long-term impairment (1)

(7)

(71)

Gains or losses on financialassets recognisedat fair value (1)

(25)

9

Other expensesand income

(109)

(110)

Financingexpenses

(57)

(63)

Net income from discontinuedbusinessactivities

(2)

(4)

Goodwill impairment

0

(183)

NET INCOME

450

345

Amountsnet of profit sharing and corporatetax. (1)

Summary of activity and income 6.1.4.2

31.12.2018 pro forma

Like-for-like change

Premium income (in millionsof euros)

31.12.2018

31.12.2019 Actual change

Propertyand casualty insurance –France

3,391

3,391

3,466

2.2%

2.2%

GroupamaGan Vie

3,919

3,919

4,012

2.4%

2.4%

Life andhealthinsurance in France – excluding Groupama G n Vie

629

629

651

3.6%

3.6%

Total Insurance –France

7,939

7,939

8,129

2.4% 2.4%

Propertyand casualty insurance –International

1,768

1,675

1,623

-8.2% -3.2%

Life and health insurance –International

770

737

734

-4.7% -0.4%

Total Insurance –International

2,537

2,413

2,357

-7.1% -2.3%

Bankingand financialbusinesses

173

173

172

-0.8% -0.8%

Total Groupama

10,650

10,525

10,657

0.1% 1.3%

Total Insurance

10,477

10,352

10,486

0.1% 1.3%

Propertyand casualty insurance

5,159

5,067

5,089

-1.4%

0.4%

Life and health insurance

5,318

5,285

5,397

1.5%

2.1%

2018 pro forma data: The restatementof certain data from 31 December 2018 was necessary toallow changes between thetwo periods tobe compared andanalysed. - In France, Amaline’s 2018premium income waspro forma totake into accountthe portfolio transfer tothe regional mutuals (impact: €3 million in life and health insurance and€71 million in property andcasualty insurance). - In Turkey, a pro formawas done totake into accountthe end of a major partnership(impact: -€23 millionin life and health insurance and-€64 million in property and casualty insurance). For thoseentities thatdo not use the euro astheir functionalcurrency(Turkey, Romaniaand Hungary),the exchangerate effectsare neutralised in thepro forma data; the actual data at31 December2018 were converted based on the exchangerate at31 December2019. In the rest of the document,figures are expressed ona like-for-likebasis andwith constant exchangerates. The data with constant exchangerates correspondto the comparisonbetween theactual data at 31 December2019 and the actual data at 31 December2018, converted atthe averageexchangerates at 31 December 2019.

At 31 December 2019,Groupama’s consolidated premium income from Insurance increased +1.3% to €10.5 billion on a like-for-like basis (+0.1% in actual data) compared with 31 December2018. Including financial businesses,the Group’s consolidatedpremium income was up +1.3% on a like-for-like basis (+0.1% in actual change)at €10.7 billion. The Group’s property and casualty insurance premium income increased +0.4%, including +2.2% in France and -3.2% for International. The business is supported by insurance for businesses and local authorities (+3.3%), which benefits from the growth of the fleet segment (+2.0%) and the business and local

authorities casualty (+4.3%) segment. The good performance of the agricultural business lines (+1.6%) should also be noted. Growth in the assistance business (+16.3%) in France is reinforcing this trend. Insurance for individuals and professionals fell -1.7%, masking a +2.7% increase in home insurance and a -3.8% decrease in passenger vehicle insurance. Life and health insurance premium income grew by +2.1% at 31 December 2019. Groupama Gan Vie, which supports the savings/pensionsbusiness in France, enjoyeda +2.4% increase in premium income over the period. Other life and health insurance businesses in France also increased +3.6%. This is explained

114 Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES