GROUPAMA / 2019 Universal Registration Document

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

In France, the recurring financial margin (after tax) of the property and casualty insurance business amounted to €43 million in 2019, down -37% over the period. The change in the other elements is explained in particular by the change in the tax expense based on theunderwriting income.

In France, net income amounted to €148 million in 2019 versus €84 million in 2018. The non-recurringfinancial margin decreased by -€6 million over the period due to lower realised capital gains. Other transactions net of taxes amounted to -€76 million and include various non-recurringexpenses totalling -€22 millionand a tax expense relatedto the cancellationof a loss for -€57 million.

(b) Life and health insurance

L&H France

Insurance premiumincome (in millions ofeuros)

31.12.2018 pro forma

31.12.2019

Change%

GroupamaGan Vie

3,919

4,012

2.4%

GroupamaAssurancesMutuelles

482

501

4.0%

Gan Assurances

142

145

2.1%

Other entities (1)

5

6

5.1%

TOTAL

4,548

4,663

2.5%

IncludingAssu-Vie. (1)

Life and health insurance premium income (57.4% of premium income in France) increased +2.5% to €4,663 million. Group premiumincomefor life and capitalisationin Francefell by -3.2% in a market that posted an increase of +4% at the end of December 2019(source: FFA). This change is mainly attributable to the decrease in individual UL savings/pensions(-11.1%), with premium income of the segment in euros increasing by +5.2%. This situation (very pronounced at the beginning of the year and diminishing over the course of the year) was related to a wait-and-see situation for customers in the context of regulatory developments affecting the savings/pensions market and the financial environment (low rates and impact of the end-2018 “air pocket” on equity markets). After taking into account arbitrage operations (euros for unit-linked for -€479 million) on Fourgous transfers (€141 million) and unit-linked net inflows (€400 million), the rate of actuarialreserves in individualUL savings is now 28.1% (comparedwith 25.3%at 31 December2018), in accordancewith the strategic direction taken since the beginning of the decade to reinforce actuarialreserves in UL. Premium income in health and bodily injury at 31 December2019 was up +11.0% comparedwith the previous period. This change is due in particular to the increase in health insurance (+9.5%), which breaks down into an increase of +2.3% in individual health and an increase of +13.3% in group health. The municipal staff insurance segment grew+11.0%.

The Group’s net inflows were negative at -€977 million at 31 December2019 comparedwith -€891 millionover the previous period. The networks comprising Groupama Gan Vie posted +2.4% growth in premium income to €4,012 million at 31 December 2019. By businessline, Groupama GanVie’s premium incomewas mostly generated from individual insurance (54.2%), with written premiums -0.9%lower comparedwith 31 December2018, down to €2,172 million. The individual savings business was down -1.6%, masking a -16.2%decrease in premium income in UL and a +10.8% increase in premium income in euros. This cyclical developmentis associatedwith the adverse financial environment at the end of 2018, which led to a slowdown in the volume of UL businessat the beginningof 2019, and the regulatoryenvironment (PACTE law and pension reform). Despite this, unit-linked outstandings in individual savings now represent 28.1% of total outstandings versus 25.3% at the end of December 2018. Note that in addition to premium income, Groupama Gan Vie managed Fourgous transfers to multi-component funds (not recognised in premium income) for €141 million (including €81 million invested in UL). Group insurance (45.8% of business) rose +6.5% to €1,839 million.It was driven by the growth in the Group protection (+14.8%) and group health (+13.8%) segments. The group retirement segment decreased by -35.6%. As a reminder, it benefited from several single-premium contracts in 2018.

118 Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES