GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

claims, which were slightly lower than last year, take into account a level of cautiongiven the circumstancesof 2020. The operating cost ratio was up by +1.3 points at 32.9% in 2020, particularly due to the increase in earned premiums. In France, the recurring financial margin (after tax) of the property and casualty insurancebusinessamountedto €43 millionin 2020, down nearly 1% over the period. The change in the other elements is explained in particular by the change in the tax expense based on the underwriting income. In France, net income amounted to €68 million in 2020 versus €148 million in 2019. The non-recurringfinancialmargindecreased by €30 million over the period under the effect of lower realised gains. Other transactions net of taxes amounted to -€40 million mainly in connectionwith the decreasein the deferredtax rate and the contribution to the Covid-19 fund (-€8 million).

The following key items should be noted at 31 December 2020: the combined ratio of Groupama Assurances Mutuelles, the ❯ Group’s internal reinsurer, deterioratedby 5.3 points to 97.3% in 2020. This change stemmedfrom the increase in the net loss experience. The operating costs ratio was up 0.5 points at 22.7% 31 December 2020; underwriting income for Gan Assurances in property and ❯ casualty insurance was down €5 million from 2019. The gross loss experience deteriorated by 5.3 points. The current loss experience decreased by 2.6 points, combining a decrease in attritional loss experience of 6.1 points, an increase in serious claims of 3.2 points (mainly in motor and agricultural),and, to a lesser extent, an increase in weather claims of 0.4 points. Taking these factors into account, reinsuranceplayed a positive role, reducing the net loss ratio to 64.6% in 2020 (-1 point compared with 2019). It should be noted that the changes on

Life and health insurance (b)

L&H France

Insurance premium income (in millions of euros)

31.12.2019 pro forma

31.12.2020

Change %

Groupama Gan Vie

4,012

4,172

4.0%

Groupama Assurances Mutuelles

501

511

2.0%

145

140

-3.4%

Gan Assurances

Other entities (1)

6

5

-4.9%

TOTAL

4,663

4,828

3.5%

Including Assu-Vie. (1)

Premium income of the networks constitutingGroupamaGan Vie rose 4.0% to €4,172 millionas of 31 December2020. By business line, the majority of Groupama Gan Vie’s premium income was generated in individual insurance (57.3%), with written premiums up 10.0% compared with 31 December 2019 at €2,391 million. The individual savings/pensions segment was up 12.7%, consisting of a 7.8% decrease in individual savings in connection with the health crisis and a 75.4% increase in individual retirement due to the launch of the Perin product and its very significant commercial performance. The ongoing UL development strategy resulted in a 39.4% increase in premium income in individual UL savings/pensions and a 3.3% decrease in premium income in euros for this segment. UL assets in individual savings now represent 28.8%of the total assets. Also note that GroupamaGan Vie had €99 million in Fourgous transfers to multi-component funds (including €85 million invested in UL). Group insurance (42.7%of business) suffered the consequencesof the health crisis and fell 3.1% to €1,781 million, mainly due to the decrease in protection insurance (-10.6%) and health insurance (-3.9%).

Life and health insurance premium income (59.0% of premium income in France) increased 3.5% to €4,828 million at 31 December2020. Group premium income for life insuranceand capitalisation in France increased 7.2% in a market down 20% at the end of December 2020(source: FFA). This change is mainly attributable to the growth in the individual savings/pensions business (+12.7%), thanks in particular to the major commercial success of Perin policies (individual savings/pensionsplans). After including arbitrage operations (euros to unit-linked at -€497 million),Fourgous transfers (€99 million),and unit-linkednet inflows (€661 million), the rate of actuarial reserves in unit-linked individual savings is now 28.8% (compared with 28.1% at 31 December 2019). Premium income in health and bodily injury insurance at 31 December 2020 decreased 1.2% comparedwith the previous period. The good performance of municipal staff insurance (+12.3%) does not compensate for the decrease in the health insurance business (-2.3%), breaking down in -0.6% in individual health insurance and -3.1% in Group health insurance, mainly related to the anticipation of premiums in arrears that will be unpaid in the context of the health crisis. The Group’snet inflows in Francewere negativeat -€865 millionat 31 December 2020 compared with -€977 million during the previous period.

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES