Groupama // 2021 Universal Registration Document

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

In France, net underwriting income (gross premiums earned – gross underwriting expenses – net expenses from current underwriting operations and reinsurance balance) decreased by €11 million over the period. The deterioration in the net combined ratio of 0.3 points to 97.7% in 2021 was the cause of this change. The claims experience for 2021 is characterised by a return to a level of attritional claims closer to historical observations. The increase in frequencies in the post-Covid context and less strict lockdown than in 2020, but also the taking into account of the effects of inflation in the assessment of commitments, particularly in property insurance, explains this change. The year was also marked by a decrease in the cost of serious claims and, to a lesser extent, in the cost of weather-related claims (the year was atypical in that it was marked by an exceptional episode of frost on crops in the first half of the year, but by a level of droughts and storms that was significantly lower than in previous years. In addition, the reserves releases on previous years are favourable despite the additional operating losses related to administrative closures (the risk having been provisioned at the end of 2020 with a reopening hypothesis planned for the end of the first quarter of 2021). The net loss ratio decreased by 0.4 points to 67.5% in 2021. The following key items should be noted at 31 December 2021: the net underwriting result of the regional mutuals’ portfolio ❯ improved with a combined ratio in property and casualty insurance that decreased by nearly -0.5 points to 99.4% under

the combined effect of a return to a more usual level of write-offs on previous years (in a post-Covid context, as 2020 had prompted a cautious assessment of certain risks) and a lower burden of serious and climatic claims; underwriting income for Gan Assurances in property and ❯ casualty insurance was down €10 million from 2020. The net loss ratio increased by 0.7 points to 65.4%. The current loss ratio fell by -2.9 points, combining a deterioration in attritional claims of +1.3 points, an increase in weather-related claims of +1.5 points, and a decrease in serious claims of -5.7 points (mainly in motor, agricultural and business). The operating expense ratio was stable at 32.9% in 2021; in France, the recurring financial margin (after tax) of the ❯ property and casualty insurance business amounted to €81 million in 2021, up €6 million over the period. Other items were stable over the period. In France, net income amounted to €173 million in 2021 versus €110 million in 2020. The non-recurring financial margin increased by €31 million over the period under the effect of an increase in realised gains (2021 being rather marked by a few rotations in the securities portfolios and a lower level of real estate gains). Other transactions net of tax amounted to -€27 million. For the record, in 2020 this item included the contribution to the Covid-19 fund (-€18 million).

Life and health insurance (b)

L&H France

Insurance premium income (in millions of euros)

31.12.2020 pro forma

31.12.2021

Change %

Groupama Gan Vie

4,164

4,786

14.9%

Regional mutuals

1,999

2,075

3.8%

Groupama Assurances Mutuelles

10

11

4.2%

Gan Assurances

140

142

1.8%

Other entities (1)

5

5

-1.6%

TOTAL

6,319

7,019

11.1%

including Assu-Vie. (1)

Life and health insurance premium income (54.6% of premium income in France) increased 11.1% to €7,019 million. The Group’s life and capitalisation premium income in France increased 20.4%. This change is mainly attributable to the growth in the individual savings business (+36.9%) and in particular on UL vehicles +32% as well as the individual pension savings business, which benefited from the success of the PERIN product with growth on UL vehicles of +85.7%. After including arbitrage operations (euros to unit-linked at -€473 million), Fourgous transfers (€113 million), and unit-linked net inflows (€1,015 million), the rate of actuarial reserves in unit-linked individual savings is now 31.9% (compared with 28.8% at 31 December 2020).

Health and bodily injury premium income at 31 December 2021 was 3.6% higher than in the previous period, driven by increases in premium income from health segments (+2.7% of which individual health: +3.1% and group health: +2.3%) and group acceptances (+13.0%). The Group’s net inflows in France were negative at -€565 million at 31 December 2021 compared with -€865 million during the previous period. Premium income of the networks constituting Groupama Gan Vie rose 14.9% to €4,786 million as of 31 December 2021. By business line, the majority of Groupama Gan Vie’s premium income was generated in individual insurance (58.8%), with written premiums up 17.7% compared with 31 December 2020 at €2,813 million. This growth was driven by the individual retirement savings segment, which rose by 20.8%.

125

Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES