GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

Premium income for Gan Assurances decreased 1.2% to €1,250 million at 31 December2020 and held up well against the health crisis overall. The passengervehicle segment fell 0.6%. The professional risks segment, where most of the development actions are concentrated, faced a slightly more difficult situation due to the health crisis and was down 6.9%. The good performance in business and local authority damage insurance (+7.7%) significantly mitigated these movements. Groupama Assurance-Créditet Caution posted premium income of €46 million at 31 December 2020, up 0.8% from the previous period. However, the segment’s good performancewas offset by the decline in the credit segment. Mutuaide Assistance’s premium income at 31 December 2020 was down 4.4% at €190 million due to the health crisis and its impact on travel contracts in particular. Société Françaisede ProtectionJuridique’spremiumincome grew by 3.3% to €128 million as of 31 December 2020. Economic operating income in property and casualty insurance in France totalled€108 millionin 2020 comparedwith €197 millionat 31 December 2019. It is presented as follows:

Property and casualty insurance premium income (41.0% of premium income in France) remained stable at €3,362 million at 31 December 2020. Insurance for individuals and professionals decreased 1.5% over the period to €1,885 million(more than 55% of written premiums in property and casualty insurance). The professional risks segment, marked by Covid-19-relatedpremium reduction measures, fell 6.2% to €309 million at 31 December 2020. Passenger vehicle insurance (-0.6% at €883 million) and home insurance (-1.0% at €557 million) also suffered from the circumstances of the crisis. Insurance for businesses and local authorities (€528 million and 16% of the portfolio) was up 4.5%, driven by the good performance of the fleet segment (+3.6% at €265 million) and the business and local authorities casualty segment (+5.3% to €263 million). GroupamaAssurancesMutuelles’spremiumincome from property and casualty insurance totalled €1,748 million at 31 December 2020, an increaseof 1.1%, drivenmainly by the good performance of business and local authorities insurance (+4.4%) and the agricultural business segment (+3.9%). However, the decline in insurance for individuals and professionals (-0.9%) mitigated this movement. It is mainly explainedby the decline in the professional risks (-4.0%), passenger vehicle (-0.7%), and home insurance (-1.3%) segments.

31.12.2019

31.12.2020

2020-2019 change

Property and casualty insurance in France (in millions of euros)

Gross earned premiums

3,467

100.0% 3,343

100.0% (124)

-3.6%

Underwriting expenses (policy servicing) – excluding claims management costs

(2,043)

-58.9% (2,230)

-66.7% (187)

-9.2%

Reinsurance balance

(133)

-3.8%

37

1.1%

170

>100%

Underwriting margin net of reinsurance

1,290

37.2% 1,149

34.4% (141)

-10.9%

Net expenses from current underwriting operations

(1,005)

-29.0% (1,010)

-30.2%

(5)

-0.5%

Underwriting income net of reinsurance

285

8.2% 139

4.2% (146)

-51.1%

Recurring financial margin net of tax

43

1.2%

43

1.3%

(1)

-1.2%

Other items

(131)

-3.8%

(74)

-2.2%

57

43.5%

Economic operating income

197

5.7% 108

3.2% (89)

-45.2%

Capital gains realised net of corporate income tax

33

1.0%

2

0.1%

(31)

-94.6%

Gains or losses on financial assets recognised at fair value net of corporate income tax

(3)

-0.1%

(2)

-0.1%

1

31.4%

Other operations net of corporate income tax

(76)

-2.2%

(40)

-1.2%

36

47.7%

Income excluding restructuring

151

4.4%

68

2.0% (83)

-55.1%

Net income from discontinued business activities

(3)

-0.1%

0.0%

3

NA

GROUP NET INCOME

148

4.3%

68

2.0% (80)

-54.2%

In France, net underwriting income (gross premiums earned – gross underwriting expenses – net expenses from current underwriting operations and reinsurance balance) decreased by

opposite effects: an improvedattritional loss experience,especially in the motor segment, and a decline in serious claims. Serious

claims were marked by exceptional events related to operating €146 million over the period. The deteriorationin the net combined losses for administrative closures, cancellations of events, and ratio of 4 points to 95.8% in 2020 was the cause of this change. credit and assistancerisks due to the health situation.The net loss The loss experience for the 2020 fiscal year was affected by two ratio decreased by 2.8 points to 65.6% in 2020.

123 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES