GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

Life and health insurance premium income grew by 2.9% 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 success of a new retirement product. Other life and health insurance business activities in France increased 0.8%. The main reason for this changewas the growth of municipal staff insurance (+12.3%), while the health (individual and group) segment was down 2.3% 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 77.1% of the Group’s overall business over the period, whereas international insurance premium income amounted to 21.1% of total premium income. The Group’s other businesses (financial businesses) represented 1.8% of total premium income. Net banking income from these businessesamounted to €162 millionat 31 December 2020.

At 31 December2020, Groupama’sconsolidatedpremiumincome from Insurance increased 1.2% to €10.4 billion on a like-for-like basis (-0.5% in actual data) compared with 31 December 2019. Including financial businesses, the Group’s consolidatedpremium income was up 1.4% on a like-for-like basis (-0.3% in actual change) at €10.6 billion. The Group’s property and casualty insurance premium income decreased 0.7%, combining stability in France and a 2.1% decrease internationally.Insurancefor individualsand professionals decreased 2.6% under the circumstancesof Covid-19, breaking down in -1.5% in France and -4.3% internationally.The passenger vehicle segment decreased 3.3%, while the professional risks segment, the focus of most of the customer support pricing measures in the context of the crisis, fell 6.0%. However, the good performance of business and local authorities insurance (+3.7%) offsets these changes and is explained by the growth of the fleet segment (+3.0%) and the business and local authorities casualty (+4.1%) segment.

31.12.2019

31.12.2020 Change in value

Change %

Economic operating income (in millions of euros)

Property and casualty insurance – France

197

108

(89)

-45.2%

Life and health insurance – France

186

96

(90)

-48.4%

Total Insurance – France

383

204

(179)

-46.7%

Property and casualty insurance – International

(110)

9

118

>100%

Life and health insurance – International

14

15

1

7.1%

Total Insurance – International

(96)

24

120

>100%

Financial businesses

38

43

5

13.2%

Holding company activities

(91)

(86)

5

5.5%

Total Groupama Assurances Mutuelles

235

185

(50)

-21.3%

Property and casualty insurance

87

116

29

33.3%

Life and health insurance

200

111

(89)

-44.5%

in France, the decrease in attritional loss experiencewas 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 is decreasing, 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 in a context of prudenceassociatedwith the uncertaintyof the Covid-19crisis as well as the decrease in external reinsuranceexpense due to the increase in the claims incurred ceded to reinsurers; the increase in operating expenses (+0.8 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 -€91 million in 2019.

The Group’s economic operating income totalled €185 million at 31 December 2020 compared with €235 million at 31 December 2019. Economic operating income from insurance was €227 million in 2020, down €60 million from 2019. Economic operating income in life and health insurance stood at €111 million in 2020 versus €200 million in 2019. This decrease can be attributed primarily to business in France, which dropped €90 million over the period.GroupamaGan Vie’s operatingincome from Group insurance was heavily impacted by the health crisis. However, operating income at the international subsidiaries was virtually stable over the period. In property and casualty insurance, economic operating income amounted to €116 million compared with €87 million at 31 December 2019 (-€89 million in France and +€118 million internationally). The net combined ratio in non-life insurance was thus 99.8% in 2020 versus 98.5% in 2019 (+1.3 points).The loss experience was also marked by the health situation related to Covid-19: The following should be noted:

121 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES