GROUPAMA / 2019 Universal Registration Document

2 THE GROUP’S BUSINESSES Insurance in France

2.2

INSURANCE IN FRANCE

2.2.1

ECONOMIC ENVIRONMENT AND MARKET TRENDS

2.2.2

COMPETITION AND POSITIONING

In 2019, French insurance premium income increased to €227 billion.This general market trend reflects the 3.5% increase in activity in property and casualty insurance and life and health insurance (+3.7%), which represented nearly 75% of premium income in 2019(source: FFA – 31 January 2020). Life and health insurance premium income totalled €169 billion. In life insurance,contributionsincreasedby +4% to €145 billionas of the end of 2019. The share of unit-linked (UL) products in contributions represents 27%. Net life insurance inflows (deposits greater than withdrawals) totalled €25.9 billion, with net inflows of €19.8 billion for unit-linked products. Life insurance assets continued to grow, amounting to €1,788 billion in 2019. In health insurance,premiumincomegrew 4.6% to €24.8 billion,with growth in healthcare (+4.5%) and protection insurance (+4.7%). Premium income in property and casualty insurance increased 3.5% to €58 billion. This is the largest increase in the last eight years. This growth concerns both professional insurance (+3.7%) and individual insurance (+3.4%). The automotive and multi-risk home insurance segments grew by 3.2%. The loss experience performed favourably trend for most of the year, but worsened considerablyat the end of the year. It ultimatelyfurther increasedin 2019 (+1%), mainly due to an increase in averagecosts and natural events atthe end of the year.

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 and other financial institutions. The differencelies primarily in the followingcriteria: the size, power and quality of the distribution networks, ● particularly in advisory services; the range of products offered, their quality and the capacity for ● innovation; prices; ● service quality; ● financial management performance; ● brand reputationand awareness; ● attractiveness of products to customers. ●

GroupamaAssurancesMutuelles generated €8.1 billion in insurance premium income in France during 2019. The table below shows the change in Groupama’s ranking in France, eighth-largest French multi-line insurer in 2019:

French ranking (1)

2019

2018

Insurance

8

9

P&C

3

3

L&H

12

13

Source: L’Argusde l’Assurance,December 2019. (1)

Motor insurance and Mobilities 2.2.3.1 Groupamaranks number 4on the Frenchmotor insurancemarket (source: L’Argus de l’Assurance , October 2019)and insures more than 3,800,000 passenger vehicles (1) (excluding fleets) as of the end of 2019. The Group offers a complete, innovative range of products and services at competitive prices responding to the major trends in consumptionand includingan original value-addedserviceoffering with the CapsAuto network of repairers as well as a unique prevention offering via the Centaure driving training centres, for policyholders andtheir children, also available to all drivers.

2.2.3

PROPERTY AND CASUALTY

INSURANCE

Groupama Assurances Mutuelles generated €3.5 billion in premium income in property and casualty insurance in France (43% of premium income generatedin France) as of 31 December 2019.

Number of policies insured directly or indirectly (through the reinsurance agreement). (1)

22 Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES