GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

Bulgaria (f) In Bulgaria, the premium income of the subsidiaries Groupama Zastrahovane and Groupama Jivotozastrahovaneclimbed 25.6% to €24 million at 31 December 2020. Life and health insurance totalled €13 million, up +49.6% due to the takeover of Express Life. Property and casualty insurance (€11 million)was up +5.6%. The growth in the business damage segment (+57.6% from the development of new business) and the financial losses segment (+49.4%) offset the decline in passenger vehicles (-16.5%). The contribution of the Bulgarian subsidiaries to the Group’s net income was +€0.9 million at 31 December 2020 compared with -€0.4 million over the previous period. Gan Outre-Mer (g) Gan Outre-Mer’spremiumincome rose +1.6% to €66 millionas of 31 December2020. The propertyand casualty insurance business amounted to €57 million(+2.2%) and benefited from growth in the passenger vehicle (+2.9%) and home insurance (+2.0%) segments. Life and health insurance premium income (mainly individual health) remained stable at €9 million.

Gan Outre-Mer’s economic operating income totalled +€7 million at 31 December 2020 compared with €9 million in 2019. Net underwriting income in propertyand casualty insurancedecreased by -€3 million with a net combined ratio that worsened by 6.6 pointsto 79.4%. The operatingcost rate was down -0.6 points at 27.2% in 2020. Gan Outre-Mer’snet income totalled €7 million in 2020 compared with €10 million in 2019. Tunisia (h) The equity-method income of the Tunisian subsidiary Star was +€2 million as of 31 December 2020. China (i) The Chinese subsidiary’s contribution represented a loss of -€11 million at 31 December 2020 compared with -€4 million at 31 December 2019. The subsidiary was struck by a series of exceptionally severe weather condition(sdrought, typhoon, etc.).

Financial businesses 6.1.4.5

31.12.2019

31.12.2020

2020-2019 change

(in millions of euros)

Net banking income, net of cost of risk and long-term financial instruments Other operating income and expenses and non-underwriting current income and expenses

152

162

10

6.4%

(99)

(101)

(3)

-3.0%

Other items

(16)

(18)

(2)

-13.7%

Economic operating income

38

43

5

12.4%

Other operations net of corporate income tax

(63)

(50)

13

20.2%

Income excluding restructuring

(25)

(8)

17

69.6%

Goodwill impairment

(81)

81

NA

GROUP NET INCOME

(106)

(8)

99

92.8%

Net income from financial and banking businesses totalled -€8 million at 31 December 2020 compared with -€106 million over the previous period. This figure takes into account Orange Bank’s loss of -€50 million. As a reminder, net income at 31 December2019 included in other transactionsnet of taxes not only Orange Bank’s equity-method income for -€63 million but also the impairment of Orange Bank securities for -€81 million.

The economic operating income of financial and banking businesses totalled +€43 million in 2020 versus +€38 million in 2019. These figures include Groupama Asset Management’s earnings, which totalled €39 million at 31 December 2020 compared with €32 million at 31 December 2019. The economic operating income of the other entities (Groupama Immobilier, Groupama Épargne Salariale, and Groupama Gan Reim) represented +€4 million in income in 2020.

131 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES