GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

Economic operating income (in millions of euros)

31.12.2019

31.12.2020

Italy

(121)

(6)

Greece

7

6

Turkey

4

6

Hungary

20

26

Romania

(14)

(6)

Bulgaria

(1)

1

9

7

Gan Outre-Mer

Equity-method entities

(1)

(10)

Tunisia (Star)

3

2

China (AVIC)

(4)

(11)

TOTAL

(96)

24

Net income from international insuranceamounted to €10 million at 31 December 202c0ompared with -€98 million at 31 December 2019. The breakdown of net income, by entity, is as follows:

31.12.2019

31.12.2020

Net income (in millions of euros) (1)

Italy

(136)

(26)

Greece

8

7

Turkey

10

5

Hungary

23

24

Romania

(13)

2

Bulgaria

0

1

10

7

Gan Outre-Mer

Equity-method entities

(1)

(10)

Tunisia (Star)

3

2

China (Groupama AVIC)

(4)

(11)

TOTAL

(98)

10

Excluding income from the holding business. (1)

(a) Italy Premium income for the Italian subsidiaryGroupamaAssicurazioni fell 6.5% to €1,247 million at 31 December 2020. Property and casualty insurancepremiumincomedecreased6.4% to €858 million. The passenger vehicle insurance segment (nearly 70% of property and casualty insurance premiums) fell 8.3%. Competitive pressure in the context of Covid-19 combined with the roll-out of the subsidiary’srecoveryplan explains the portfolio’s decline in number and new business. Life and health insurance business (€389 million)decreased6.8% compared with the previous period. Individual savings/pensions premium income decreased5.9%. More specifically, individual UL savings fell 5.4% (mainly on the network of agents), while the decline in individual savings in euros (-6.7%) followed the market trend. Group life and health insurancepremiumincomewas down 17.3%, with the good performance in the retirement segment (+15.1%) unable to offset the decline in the health segment (-44.4%).

Economic operating income amounted to -€6 million compared with -€121 million at 31 December 2019. The combined ratio in property and casualty insurance was 103.6%, a decrease of 15.8 points compared with the previous fiscal year. This change is explainedby the combinationof several factors that favourably affected the current loss experience (down 14 pointsat 63.3%) on almost all segmentsand particularlyon the motor segment: decrease in the frequency of claims during the lockdown periods and less impact of changes in provisions on prior fiscal years (28% decrease in underwriting losses compared with 2019, a year in which the provisioningwas adjusted). In motor insurance, the current loss experiencewas thus down 19 pointsat 60%. The continuation of structural reforms also contributed to improving underwriting profitability. The operating cost ratio increased by 1.8 points to 33.2% due to the decline in earned premiums.

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES