GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

On 19 May 2020, then on 29 September 2020, the agency confirmed Groupama’s “A” rating and “Stable” outlook. The Fitch rating reflects Groupama’s ability to maintain strong capitalisation and leverage as well as its highly robust business profile in the French insurance sector.

In addition to these actions, €2 billion in investmentswere made to support the recovery of French SMEs and midcaps, including €800 million in the health sector and €200 million for tourism (source: FFA news release of 17 December 2020). The Group-level impact of Covid-19has not been exactly the same in France (where the portfolio is highly diversified) as internationally, where business (mainly non-life) in most countries is relatively focused on motor insurance.In addition, the situation internationally is not comparablebetween some countries heavily affected by the pandemic, such as Italy, or other less-affected countries (Eastern European countries, Turkey, and China). In France, Covid-19 has especially affected the Group’s non-life businesses, given the measurestaken to support its customersand members, such as premium reduction and contribution to government spending through the health tax. The claims incurred directly caused by the health crisis on certain segments managed to be contained (in particular on operating losses). Positive effects brought about by Covid-19 on other segments, such as motor insurance (due to reductions of frequency during the lockdown), were evaluated statistically. Internationally, the pandemic has had different effects in different countries, with declining premium income in most countries, stemming from the various measures granted to customers, but with positive effects on the loss experience, given the business relatively concentratedin motor insurance, which benefited from a lower frequency of claims as a result of the lockdown measures that took place in most countries. The Group has benefited from a diversification effect associated with its geographical presence as well as its various businesses, which have demonstrated an overall resilience to this crisis. However, the crisis is far from over. In 2021, and probably in 2022, the Group will still have to cope with the consequences of the health crisis, first by supportingthe affectedcustomersand then by facing the market conditions that are likely to tighten. In particular, the Group will implement the measures announced for 2021 to support hotel operators, café owners, and restaurant owners as well as businesses and professionals in the tourism, culture, entertainment, and sport sectors with up to 250 employees: freezing of premiums on professional multi-risk insurance ❯ policies; establishment of free assistance cover for heads of companies ❯ and employees personally affected by Covid-19; recourse to the insurance ombudsmanextended to companies ❯ for any dispute relating to a professional insurance contract.

Business activities 6.1.2.3 Partnerships (a)

On 19 December 2019, La Banque Postale and the Groupama group announced the signing of a memorandumof understanding for La Banque Postale to acquire Groupama’s 35% stake in La Banque Postale IARD. On 7 April 2020, the sale was finalised for €211 million. The proceeds from the sale were recorded in non-current operatingincome in the Group’s financial statementsin 2020. On 8 September2020, Elitis Insurancepartneredwith Groupamato launch Agriprotect, a comprehensiveinsurance policy for Walloon farmers. Already present in nine countries in Europe as well as in China, Groupama is playing its full role as a Europeanplayer in the protection of farmers by becominga partner of Elitis Insuranceand contributes to better security of Walloon agriculture. Acquisition (b) On 18 December 2020, the Groupama group announced the signing of an agreement concerning the acquisition by its HungariansubsidiaryGroupamaBiztositoof the Croatian insurance company OTP Osiguranje, owned by OTP Banka d.d. Property (c) On 11 June 2020, Groupama announced the launch with Vinci of the constructionof The Link, Total’s future headquartersin Paris La Défense.The planningand work are expectedto take five years. At the end of this period, Total will take deliveryof the propertyand will be a tenant of The Link for a renewable term of 12 years. Socially responsible investment strategy (d) At the end of June 2020, the Group published its ESG/Climate report entitled “Responsibleinvesting: key to risk managementand confidence”. The management of both insurance or financial risks currently requires incorporating unpredictable environmental and societal impacts. The management of Groupama’s property and financial assets increasingly focuses on measuring and optimising environmental, social, and corporate governance risks and opportunities of organisations and their impact on the Group’s assets. On 9 December 2020, the Groupama group committed to a definitive phase-out of thermal coal in its investment portfolios by 2030 at the latest for corporate issuers in European Union and OECD countries and by 2040 for the rest of the world. On 15 December 2020, by partnering with the AlphaOmega Foundation, the Groupama group made its first social-impact investment through the philanthropy venture.

Financial soundness 6.1.2.2 Financial rating (a)

On 19 March 2020, Fitch Ratings revised Groupama’s rating outlook to “Stable” and maintained its “A” rating, to take into account both the significant uncertainty created by the global coronavirus pandemic, which led to high levels of volatility in financial markets, and “Negative” on the French life insurance sector.

117 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES