Groupama // 2021 Universal Registration Document

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

The discontinued business of the subsidiary Assu-Vie decreased 14.8% compared with 31 December 2020. Its premium income (consisting only of periodic premiums in run off) amounted to €2 million at 31 December 2021.

In life and health insurance, economic operating income in France was €298 million in 2021 compared with €191 million in 2020.

Life and health insurance in France (in millions of euros)

31.12.2020

31.12.2021

2021-2020 change

Gross earned premiums

6,361

100.0% 7,048

100.0% 687

10.8%

Underwriting expenses (policy servicing) - excluding claims management costs

(5,071)

-79.7% (5,587)

-79.3% (516)

-10.2%

Reinsurance balance

(27)

-0.4% (14)

-0.2% 13

47.5%

Underwriting margin net of reinsurance

1,263

19.9% 1,447

20.5% 184

14.6%

Net expenses from current underwriting operations

(1,250)

-19.7% (1,302)

-18.5% (52)

-4.1%

Underwriting income net of reinsurance

12

0.2% 145

2.1% 132

>100%

Recurring financial margin net of profit sharing and tax

197

3.1% 210

3.0% 12

6.3%

Other items

(19)

-0.3% (56)

-0.8% (37)

<-100%

Economic operating income

191

3.0% 298

4.2% 107

56.2%

Capital gains realised net of corporate income tax and profit sharing Allocations to reserves for long-term impairment net of corporate income tax and profit sharing Gains or losses on financial assets recognised at fair value net of corporate income tax and profit sharing

93

1.5% 57

0.8% (36)

-38.6%

(11)

-0.2% (5)

-0.1% 6

51.8%

20

0.3% 32

0.5% 12

58.7%

Amortisation of intangible assets net of corporate tax

0.0%

0.0%

Other operations net of corporate income tax

(49)

-0.8% (7)

-0.1% 42

84.9%

GROUP NET INCOME

244

3.8% 375

5.3% 131

53.5%

At €145 million, the net underwriting result from reinsurance increased by +€132 million at 31 December 2021, mainly due to the increase at Groupama Gan Vie (+€123 million). Groupama Gan Vie’s net underwriting margin increased by €167 million over the period. This good performance is explained in particular by the increase in the current margin (+€53 million). In Group insurance, the current margin improved by +€42 million, particularly in health and protection insurance, due to a lower loss ratio in work stoppage and death, segments affected by Covid in 2020. In individual insurance, the current underwriting margin increased by +€11 million, mainly in savings (+€19 million) due to the increase in charges on unit-linked policies, while conversely there was a deterioration in the claims experience in health and protection insurance. In addition, the change in regulatory or contractual provisions had a positive impact on the margin (+€100 million) as well as the increase in the discounting effect of mathematical provisions for disability annuities. Operating expenses increased by €44 million in part due to increased commissions related to successful commercial operations.

The net underwriting income of the regional mutuals deteriorated by nearly €20 million over the period with a combined net ratio of 95.3% (+1.2 points compared with 31 December 2020) under the effect of the adverse change in current claims since the entry into force of the “zero excess charges” in health. The net underwriting result of Groupama Assurances Mutuelles’ personal insurance improved by nearly €40 million under the effect of favourable liquidation results on previous years and the long-term care segment in run-off whose provisioning level no longer requires reinforcement. The recurring financial margin (net of profit-sharing and tax) increased by €12 million over the period due to the increase in equity and bond income. In France, net income from life and health insurance amounted to €375 million at 31 December 2021 compared with €244 million at 31 December 2020. The non-recurring financial margin decreased by €18 million over the period, mainly due to lower realised gains. Other transactions net of taxes amounted to -€7 million mainly in connection with the decrease in the deferred tax rate.

127 Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES