Groupama // 2021 Universal Registration Document

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

Property and casualty insurance premium income (45.4% of premium income in France) increased 2.6% to €5,842 million at 31 December 2021. Insurance for individuals and professionals rose by 1.7% to €3,380 million ( i.e. nearly 60% of premiums written in property and casualty insurance). This increase was driven by growth in the private motor insurance segment (+1.7% to €1,610 million) and the professional risks segment (+4.2% to €443 million). Business and municipal property insurance (€1,004 million and 17% of the portfolio) increased by +7.3%, driven by the good performance of the fleet (+3.8% to €495 million) and business and municipal property (+10.9% to €509 million) segments. The growth of the agricultural trades segment (+2.5%) is explained in particular by the absence in 2021 of any reduction in exceptional premiums; it should be remembered that in 2020, under the effect of the health crisis, reductions in premiums had been granted (two months’ reduction in premiums on tractors). Premium income of regional mutuals in property and casualty insurance (€4,217 million) grew 3.4% over the period. The passenger vehicle segment (+2.7% to €1,218 million) combines portfolio development in terms of number (+19,000 vehicles at the end of December 2021) and price increase. The property and casualty insurance business grew +1.7% to €860 million due to the price effect, as the portfolio decreased slightly (-5,000 policies at the end of December 2021). The good performance of the fleet (+2.1% to €352 million), commercial and public property (+12.4% to €399 million), and professional risks (+12.3% to €209 million) segments should also be noted. The growth of the agricultural business (+2.7% to €937 million) is mainly explained by the “ricochet effect” on 2021 of the non-recurring premium reductions granted in 2020 in connection with the health crisis. Adjusted for

this effect, the segment’s premium income would be stable over the period. Premium income at Groupama Assurances Mutuelles, which is home to some nationwide business activities via reinsurance and the share in professional pools (Gareat, Assurpol, etc.) totalled €18 million at 31 December 2021 versus €27 million in the previous period. Gan Assurances’ premium income was up by 1.5% to €1,266 million at 31 December 2021, and it has now achieved a real turnaround in its development, combining profitability and growth. This growth was driven by the good performance recorded in its priority markets (+9.0% in retail, +2.7% in agricultural, +3.1% in business, especially in fleets and garages, and +1.4% in construction). On the rest of the scope, we can note the +2.0% increase in the Automotive sector and the decrease of -3.9% in home insurance. Groupama Assurance-Crédit et Caution posted premium income of €50 million at 31 December 2021, up 9.8% from the previous period, in connection with the development of new business. Mutuaide Assistance’s premium income at 31 December 2021 was up by 2.7% to €195 million, driven by the resumption of travel activities and motor assistance activities (post-health crisis). Société Française de Protection Juridique’s premium income decreased by 9.5% to €95 million at 31 December 2021, due to the change in the pricing structure with a major partner. This change in the premium structure is offset by a similar change in the commission scheme and therefore has no margin effect. In property and casualty insurance, France’s economic operating income was €128 million in 2021 compared with €134 million in 2020. The figures are as follows:

Property and casualty insurance in France (in millions of euros)

31.12.2020

31.12.2021

2021-2020 change

Gross earned premiums

5,672

100.0% 5,849

100.0% 176

3.1%

Underwriting expenses (policy servicing) - excluding claims management costs

(3,830)

-67.5% (3,742)

-64.0% 89

2.3%

Reinsurance balance

25

0.4% (206)

-3.5% (231)

<-100%

Underwriting margin net of reinsurance

1,867

32.9% 1,901

32.5% 34

1.8%

Net expenses from current underwriting operations

(1,721)

-30.3% (1,766)

-30.2% (45)

-2.6%

Underwriting income net of reinsurance

146

2.6% 135

2.3% (11)

-7.6%

Recurring financial margin net of tax

75

1.3%

81

1.4% 6

7.8%

Other items

(87)

-1.5% (88)

-1.5% (1)

-1.2%

Economic operating income

134

2.4% 128

2.2% (6)

-4.8%

Capital gains realised net of corporate income tax

39

0.7%

67

1.1% 28

72.8%

Allocations to reserves for long-term impairment net of corporate income tax Gains or losses on financial assets recognised at fair value net of corporate income tax

(6)

-0.1%

(9)

-0.1% (2)

-33.4%

9

0.2%

14

0.2% 5

63.4%

Other operations net of corporate income tax

(64)

-1.1% (27)

-0.5% 37

58.1%

GROUP NET INCOME

110

1.9% 173

3.0% 62

56.6%

124

Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES