GROUPAMA / 2019 Universal Registration Document

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

International activity and earnings 6.1.4.4

31.12.2018pro forma

31.12.2019

International premiumincome (in millions ofeuros)

L&H

P&C

Total

L&H

P&C

Total

Italy

440

1,041

1,481

417

916

1,334

Greece

52

86

139

61

90

151

Turkey

30

121

151

38

150

188

Hungary

184

164

348

181

188

370

Romania

15

197

212

18

212

229

Bulgaria

7

11

18

9

11

19

Gan Outre-Mer

9

55

64

9

56

65

TOTAL

737

1,675

2,413

734

1,623

2,357

The Group’s International consolidated premium income was €2,357 millionat 31 December2019, down -2.3% comparedwith 31 December2018. Property and casualty insurance premium income was €1,623 million as of 31 December 2019, down -3.2% compared with the previousperiod due to the decline in the passengervehicle insurancesegment (-7.4%, or more than 60% of written premiums in property and casualty insurance). This decrease is attributable exclusivelyto Italy. However,the good performanceof the business property damage (+7.2%) and housing (+4.4%) segments dampened this trend. Life and health insurance premium income decreased -0.4% to €734 million. The individual life and health insurance segment remainedvirtually stable over the period, with good performancein the protection (+3.5%) and health (+11.4%) insurance segments, erasingthe decline in individualsavings/pensions(-2.9%).Group life and health insurance fell by -2.2% to €88 million,as growth in the group health segment (+19.3%) failed to compensate for the decline in the pension (-4.6%) and protection insurance (-20.5%) segments. Economic operating income from insurance on the international scope represented a loss of -€96 million at 31 December 2019 compared with a profitof +€43 millionat 31 December2018.

Economic operating income from the property and casualty insurance business amounted to -€110 million at 31 December 2019 compared with -€13 million at 31 December 2018. The combined ratio was up +8.7 points at 112.1%. This change is mainly due to the Italian subsidiary,which had significantdeficits in the motor insurance segment over previous fiscal years and replenished its underwriting reserves. In Romania, in a context of high inflation, the subsidiary’s loss experience worsened due in particular to the increase in the average cost of claims. The international operating claims ratio worsened by +1.1 points to 34.1% as of 31 December2019, primarily due to the decrease in earned premiums. However, this ratio was affected by the change in the treatmentof the insurancetax (GIT) in Hungary.Correctedfor this impact, the ratio would be up +0.5 points, mainly due to a scissor effect in Italy. Economic operating income from the life and health insurance business totalled +€14 million in 2019, down sharply (-€16 million) in particular following the end of life and health insurance distributionagreementsin Turkey and the increase in the attritional loss of the Italiannon-life insurance subsidiary.

Economic operatingincome (in millions ofeuros)

31.12.2018

31.12.2019

Italy

(26)

(121)

Greece

10

7

Turkey

10

4

Hungary

26

20

Romania

9

(14)

Bulgaria

1

(1)

Gan Outre-Mer

9

9

Equity-methodentities

5

(1)

Tunisia (Star)

1

3

China (AVIC)

4

(4)

TOTAL

43

(96)

121 Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES