GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

Financial income was positive at +€276 million compared with +€490 million in 2019. The change in this item is mainly related to: a decrease in received dividends of -€340 million (2019 was ❯ notably marked by large non-recurring dividends from Groupama Holding Filiales et Participations); an impact of +€107 millionfrom financial provisions.Recall that ❯ 2019 was markedby a significant impairmentin the accountsof Cofintex 17 (which is the holding company for Groupama’s stake in Orange Bank); a decreaseof €24 millionin the expenseof subordinateddebts, ❯ related to interest savings following the refinancingof the 2019 TSR with the TSR of the same amount maturing in 2029 and benefiting from better financial terms. Extraordinary income amounted to -€18 million (-€21 million in 2019). The “tax” line item representsincomeof €115 million,not including any Group corporate tax expense. The net income for the fiscal year was therefore €145 million. Balance sheet 6.1.8.2 The 2020 balance sheet of Groupama Assurances Mutuelles totalled €14,528 million, down by €285 million compared with 2019. Shareholders’ equity represented€3,833 millionand consisted of mutual certificates for €3,618 million, retained earnings of €70 million, and the profit for the fiscal year of €145 million. Subordinated liabilitiesamountedto €2,732 million(comparedwith €2,730 million at the end of 2019) with no redemptions or new subscriptions taking place this year. Reserves for contingent liabilities totalled €92 million, including €49 million in reserves for pensions and commitments. Gross underwriting reserves increased by €450 million to €6,809 million, related to the excess loss experience for the year and replenishmentson claims. They represented250% of earned contributions (compared with 226% in 2019). Underwriting reserves ceded and retroceded increased by €202 million to €1,354 million. The largest asset item on the Groupama Assurances Mutuelles balance sheet consists of investments with a net book value of €12,266 million. The unrealised gain on investments was €2,044 million.

inward reinsurance from the regional mutuals, up €13 million ❯ (+0.6%) to €2,195 million.Growthwas mitigated by the effect of the takeover of the Amaguiz portfolio (100% reinsured in 2019 by Groupama Assurances Mutuelles but falling within the General Reinsurance Regulations of the regional mutuals in 2020, for an average divestment rate of 30% at GMA). Excluding the Amaguiz effect, contributions increased by approximately €67 million (+3.1%), despite premium reduction measures granted by the regional mutuals, with an impact of -€29 million at Groupama Assurances Mutuelles; contributions ceded to GroupamaAssurancesMutuellesby the ❯ Group’s subsidiaries(€496 million),up €6 millioncomparedwith 2019 (up +1.3%); the change in the partnership with La Banque Postale, which ❯ resulted in the termination of the quota share treaty for Groupama Assurances Mutuelles (only non-proportional protectionshaving been retained for 2020). In 2019, premiums accepted by Groupama Assurances Mutuelles totalled €115 million but fell by -€103 million to 12 million in 2020; as well as premium income from other operations (professional ❯ pools, partnerships excluding La Banque Postale, etc.), which increased by €0.4 million from 2019. Claims expenses (excluding claims management expenses), annuities, and other underwritingreserves totalled -€2,191 million, up -€166 million, under the combined effect of: the deterioration of the current loss (-€33 million), particularly ❯ marked by operating losses for administrative closures (-€117 million), whereas conversely, the claims incurred was reduced due to the termination of the quota share treaty with Banque Postale (+€61 million); and the decrease in surpluses on claims of -€108 million ❯ (-€91 million compared with +€17 million in 2019) including -€128 million in motor deficits mainly on excess claims (stemming from the low interest rate environment). The reinsurance and retrocession balance was €12.5 million compared with -€123.8 million in 2019, incorporating a strong recovery of claims due to the excess and weather loss experience for the fiscal year but also the share of reinsurers in the deficits on claims. After taking into account the commissionspaid to ceding entities for €489 million, the net underwriting margin before general expenses was income of €59 million, down €92 million compared with 2019. At -€288 million, Groupama Assurances Mutuelles’s total operating expenses were stable compared with 2019 (-€286 million).

137 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES