GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

2 THE GROUP’S BUSINESSES Insurance in France

2.2

INSURANCE IN FRANCE

2.2.1

2.2.2

COMPETITION AND POSITIONING

ECONOMIC ENVIRONMENT AND MARKET TRENDS

The Covid-19 pandemic began to wreak havoc on 2020 in March with major impacts on the economy, individuals and entities, and markets. In the face of great difficulties, insurers took measures totalling €2.6 million to support the individualsand companiesmost affected by the crisis. They also committed to helping to revive the country through a historic €2 billion historic investment plan, which will primarily benefit French SMEs and midcaps as well as the tourism and healthcaresectors. Insurers themselveswere also impactedby the crisis and fully mobilised to ensure business continuity during this exceptionalperiod and to support their policyholderson a daily basis. ( source: FFA – 17 December 2020 ). In 2020, French insurance premium income totalled €200 billion, down sharply from 2019. Life and health insurance premium income totalled €142 billion. Life insurance contributions fell by -20% to €116 billion as of the end of 2020 despite stable unit-linked product (UL) contributions. Net life insurance inflows were negative in 2020 at -€6.5 billion versus +€21.9 billionin 2019. In health insurance, premium income increased +2% to €25.2 billion, with growth in health (+2%) and protection insurance (+1%). In property and casualty insurance, premium income reached €58 billion at the end of 2020. In motor insurance, contribution growth was 2.0% in 2020 (compared with 3.1% in 2019). Personal property damage insurance contributions also slowed in 2020 but to a lesser extent: 3.6%after 4.3% in 2019. For home insurance policies, the contributiongrowth of 3.2% was 1.8 percentage points higher than the growth in thneumber of policies.

On the mature insurance market in France, many insurance companies offer products comparable to Groupama’s products, sometimes through the same marketing techniques. The Group is in competition with insurance companies, mutuals and bancassurance companies and may face competition on the savings market from Asset Managers, independent Asset Management advisors and other financial institutions. The difference lies primarily in the following criteria: the size, power and quality of the distribution networks, ❯ particularly in advisory services; the range of products offered, their quality, and the capacity for ❯ innovation; prices; ❯ service quality; ❯

financial management performance; ❯ brand reputation and awareness; ❯ attractiveness of products to customers. ❯

Groupama AssurancesMutuelles generated €8.2 billion in insurance premium income in France during 2020. The table below shows the change in Groupama’s ranking in France, 9 th -largest French multi-line insurer in 2020:

2020

2019

French ranking (1)

Insurance

9

8

P&C

3

3

L&H

14

12

Source: L’Argus de L’Assurance – December 2020 (1)

PROPERTY AND CASUALTY INSURANCE

2.2.3

GroupamaAssurancesMutuellesgenerated€3.4 billion in premium income in property and casualty insurance in France (41% of premium income generated in France) as of 31 December 2020.

22 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES