GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

success of a new retirement product. Other life and health insurance business activities in France increased 2.7%. The main reason for this increase was the growth of municipal staff insurance (+12.6%), while the health (individual and group) segment remaining stable over the period. International life and health insurance premium income was down 1.0% due to the decline in individual savings/pensions(-3.4%), although the good performance of the Group retirement segment (+11.9%) dampened this trend. Insurance premium income in France represented 83.2% of the Group’s overall business over the period, whereas international insurance premium income amounted to 15.5% of total premium income. The Group’s other businesses (financial businesses) represented 1.3% of total premium income. Net banking income from these businessesamounted to €162 millionat 31 December 2020.

In property and casualty insurance, the Group’s premium income was stable, combining 0.7% growth in France and a 2.1% decrease internationally. The business is supported by insurance for businesses and local authorities (+4.0%), which benefits from the growth of the fleet segment (+3.9%) and the business and local authorities casualty (+4.0%) segment. Insurance for individualsand professionalswas down 0.9%due to the decline in international business (-4.3%), which saw moderate growth in France (+0.3%) in the contextof Covid-19.In France,growth in the automotive and home insurance segments was 1.2% and 1.5% respectively,while the professional risks sector, the focus of most of the customer support pricing measures in the context of the crisis, fell 6.2%. Life and health insurance premium income grew by 3.1% at 31 December 2020. Groupama Gan Vie, home to the savings/pensions business in France, enjoyed 4.0% growth in premium income over the period, explained particularly by the

31.12.2019

31.12.2020 Change in value

Change %

Economic operating income (in millions of euros)

Property and casualty insurance - France

223

134

(89)

-39.9%

Life and health insurance - France

339

191

(148)

-43.7%

Total Insurance - France

562

325

(236)

-42.2%

Property and casualty insurance - International

(110)

8

118

>100%

Life and health insurance - International

14

15

1

7.1%

Total Insurance - International

(96)

23

119

>100%

Financial businesses

38

43

5

13.2%

Holding company activities

(90)

(86)

5

4.4%

Groupama Total

413

306

(107)

-25.9%

Property and casualty insurance

113

142

29

25.7%

Life and health insurance

353

206

(146)

-41.6%

in France, the decrease in attritional loss experience of ❯ -1.7 points was offset by an increase in the cost of serious claims, which accounts for a significant part of the adverse changes, in particular in risks related to insurance for cancellations and operating losses for administrative closures. Internationally, attritional loss decreased by 8.9 points, particularly in connection with the health situation, which has reduced the claims burden of the segments (especially motor insurance) in which the Group operates. Also noteworthy is the unfavourable impact of other items and changes in prior years (+4.1 points) in a context of prudence associated with the uncertainty of the Covid-19 crisis as well as the decrease in external reinsuranceexpense (-1.4 points)due to the increase in the claims incurred ceded to reinsurers; the increase in operating expenses (+0.3 points), due in ❯ particular to the weight of premiumreductionmeasuresgranted to support policyholders in the context of the health crisis. Banking and financial businesses contributed +€43 million to the Group’s economic income in 2020. The Group’s holding activity posted an economic operating loss of -€86 million in 2020, compared with -€90 million in 2019.

The Group’s economic operating income totalled €306 million at 31 December 2020 compared with €413 million at 31 December 2019. Economic operating income from insurance was €348 million in 2020, down €117 million from 2019. Economic operating income in life and health insurance stood at €206 million in 2020 versus €353 million in 2019. This decrease can be attributed primarily to business in France, which dropped €148 million over the period. Groupama Gan Vie’s operating income from Group insurancewas heavily impactedby the health crisis. However, economic operating income from life and health insurance at the international subsidiarieswas virtually stable over the period. In property and casualty insurance, economic operating income amounted to €142 million compared with €113 million at 31 December 2019 (-€89 million in France and +€118 million internationally). The net combined ratio in non-life insurance was thus 98.7% in 2020 versus 97.0% in 2019 (+1.7 points).The loss experience was also marked by the health situation related to Covid-19: The following should be noted:

119 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES