Groupama // 2021 Universal Registration Document

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

International activity and earnings 6.1.4.3

31.12.2020 pro forma

31.12.2021

International premium income (in millions of euros)

L&H

P&C

Total

L&H

P&C

Total

Italy

389

858

1,247

394

831

1,225

Greece

65

83

148

75

84

158

Turkey

26

109

135

32

139

171

Hungary

169

188

357

186

206

392

Croatia

2

2

Romania

22

194

216

25

306

331

Bulgaria

13

11

24

13

17

30

Gan Outre-Mer

9

57

66

9

59

68

TOTAL

693

1,500

2,194

736

1,641

2,377

The Group’s international combined premium income was €2,377 million at 31 December 2021, up 8.4% from 31 December 2020. Property and casualty insurance premium income totalled €1,641 million at 31 December 2021, a 9.4% increase compared with the previous period. This growth was driven by the private passenger motor segment (+10.1%, i.e. more than 60% of written premiums in property and casualty insurance), which grew in all geographical areas (and more particularly in Romania under the effect of the failure of a major player resulting in natural market flows towards the other players in the portfolio) with the exception of Italy, which was subject to sustained competitive pressure. The strong performance of the business and local authority protection segment (+14.7%), particularly in Italy, Turkey, Hungary and Romania, is also worth noting. Life and health insurance premium income grew by 6.1% to €736 million. Individual life and health insurance increased 4.9% due to the growth in individual savings/pensions (+2.8%, i.e. nearly 60% of life and health insurance written premiums), mainly in Hungary. Group personal insurance increased by 14.3% to €103 million, due to the growth of the pension segment (+12.0%), particularly in Greece, and group health (+21.3%), particularly in Greece and Romania. The economic operating income of the insurance business in the International scope was €41 million at 31 December 2021, compared with €24 million at 31 December 2020.

The economic operating income of the property and casualty insurance business represents a profit of €21 million compared with €8 million on 31 December 2020. The combined ratio in property and casualty insurance improved by 0.4 points to 101.9%. The deterioration of the attritional loss ratio is largely explained by the increase in frequencies in 2021 due to the post-Covid context, particularly in the motor sector. As a reminder, the loss experience for the financial year 2020 was favourably affected by the lockdown measures imposed in the various countries due to the Covid epidemic. The burden of serious claims increased mainly in Turkey and to a lesser extent in Italy and Hungary. It should be noted that the weight of weather-related claims remained stable over the period. Reserves releases on prior years increased over the period, mainly in Italy. The cost of reinsurance increased by 2.7 points to 3.9%. The operating costs ratio decreased by 0.8 points to 36.1%. It should also be noted that this economic operating income includes the share of the equity method of the subsidiary in China, which increased by €15 million over the period, after a very negative year in 2020 due to a very unfavourable climatic event that weighed on crop insurance. The economic operating income of the life and health insurance business amounted to €20 million at 31 December 2021, compared with €15 million in the previous period. Non-life personal insurance deteriorated, with the combined ratio increasing by 0.8 points to 93.8% due to the increase in the frequency of claims. The underwriting result of the life insurance segment is stable.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES