Groupama // 2021 Universal Registration Document

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

Economic operating income (in millions of euros)

31.12.2020

31.12.2021

Change in value

Change%

Property and casualty insurance - France

134

128

(6)

-4.5%

Life and health insurance - France

191

298

107

56.0%

Total Insurance - France

325

426

101

31.1%

Property and casualty insurance - International

8

21

12

>100%

Life and health insurance - International

15

20

5

33.3%

Total Insurance - International

23

41

17

78.3%

Financial businesses

43

62

19

44.2%

Holding company activities

(86)

(68)

18

20.9%

Groupama total

306

461

155

50.7%

Property and casualty insurance

142

148

6

4.2%

Life and health insurance

206

319

112

54.9%

The Group’s economic operating income totalled €461 million at 31 December 2021 compared with €306 million at 31 December 2020. Economic operating income from insurance was +€467 million in 2021, up +€119 million from 2020. Economic operating income in life and health insurance stood at €319 million in 2021 versus €206 million in 2020. This good performance can be attributed primarily to business in France, which increased €107 million over the period. As a reminder, Groupama Gan Vie’s operating income for 2020 was affected in group insurance by the health crisis. The international subsidiaries reported an increase of €5 million in economic operating income from life and health insurance over the period. The net combined ratio in life and health insurance was 97.7% in 2021 compared with 99.5% in 2020 (-1.8 points). In property and casualty insurance, economic operating income increased slightly to €148 million compared with €142 million at 31 December 2020 (-€6 million in France and +€12 million internationally). The net combined ratio for property and casualty insurance was 98.6% in 2021 compared with 98.3% in 2020 (+0.3 points). The net combined ratio for non-life business, which includes health/non-life insurance, was 98.3% in 2021 compared with in France, the current loss ratio improved by -0.3 points to ❯ 72.8%. The return to a more normal level of frequencies due to a less strict lockdown than in 2020 partly explains the increase in the attritional loss ratio (+1.8 points to 60.4%). This effect was significant for motor risk. Two other factors weigh on the attritional claims rate: an increase in health frequencies partly attributable to the rise in France of the “zero cost” regulation and the weight of inflation on certain property damage business lines. 98.7% in 2020 (-0.4 points). The following should be noted:

The burden of serious claims, which in 2020 was heavily affected by administrative closures, was significantly lower in 2021 (-1.9% to 5.7%). Weather-related claims decreased slightly (-0.3 points to 6.6%). They presented a very different typology in 2021 with high losses in frost on crops while, on the other hand, the year was significantly less affected by storm and drought risks. Reserves releases on previous years were up due to serious claims that were closed favourably, despite supplements to operating losses due to the extension of administrative closures to 2021 (they had been provisioned at the end of December 2020 on the basis of an anticipated reopening at the end of the first quarter of 2021); internationally, the current loss ratio increased by +4.5 points to ❯ 65.5%. This change is explained by an increase in attritional claims (+4 points to 52.9%) with a return to more normal frequencies in 2021 in motor and health (with significantly less severe lockdown situations than in 2020) and under the notable effect in several countries of inflationary pressure on property damage or the motor segment (spare parts and labour). The burden of serious claims also increased by +0.6 points to 9.6%, mainly in Turkey and Hungary. Weather-related claims were stable (-0.1 points to 3.0%) despite contrasting trends by geographical area. Reserves releases on previous years were also at a higher level than in 2020 with an unchanged provisioning policy; operating expenses were under control with a ratio of 27.8% ❯ over the period. Banking and financial activities contributed €62 million to the Group’s economic result in 2021, an increase of €19 million, thanks to Groupama Asset Management, which had a record year, both in fixed fees and in performance fees. The Group’s holding business posted an economic operating income of -€68 million in 2021 compared with -€86 million in 2020.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES