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

Italy

(6)

18

24

Greece

6

5

(1)

Turkey

6

(20)

(26)

Hungary

26

25

(1)

Romania

(6)

1

7

Bulgaria

1

1

1

Gan Outre-Mer

7

4

(3)

Equity-method entities

(10)

6

16

Tunisia (Star)

2

3

1

China (Groupama AVIC)

(11)

3

15

TOTAL

24

41

17

The net income from international insurance totalled €41 million at 31 December 2021 compared with €10 million at 31 December 2020. The breakdown of net income, by entity, is as follows:

Net income (in millions of euros) (1)

Actual 31.12.2020

Actual 31.12.2021

Italy

(26)

5

Greece

7

6

Turkey

5

(16)

Hungary

24

31

Romania

2

4

Bulgaria

1

1

Gan Outre-Mer

7

4

Equity-method entities

(10)

6

Tunisia (Star)

2

3

China (Groupama AVIC)

(11)

3

TOTAL

10

41

Excluding income from the holding business. (1)

(a) Italy Premium income for the Italian subsidiary Groupama Assicurazioni fell 1.7% to €1,225 million at 31 December 2021. Different segments fared differently. Property and casualty insurance premium income decreased 3.1% to €831 million. The private passenger car segment (nearly 65% of property and casualty insurance premiums) posted a 5.4% decline as a result of the fall in the portfolio in terms of numbers and the average premium in a context of strong competitive pressure. Personal insurance business (€394 million) increased by 1.2% compared with 31 December 2020. Premium income in the individual retirement savings business remained stable over the period, masking a 22.4% increase in unit-linked individual savings and a 6.2% decline in euro-denominated individual retirement savings business. Group personal insurance premium income (+8.0%) benefited from the good performance of the protection (+18.1%) and health (+17.4%) segments.

Economic operating income represented a profit of €18 million compared with a loss of -€6 million at 31 December 2020. The combined ratio in property and casualty insurance was 102.0%, a decrease of 1.6 points compared with the previous fiscal year. The loss experience ratio improved by 3.6 points to 66.9%. This development is the result of a combination of several adverse factors. The current loss ratio deteriorated by 5.3 points to 69.1% due to the increase in the frequency of claims (less strict lockdown than in 2020). In addition, it should be noted that 2020 was still marked by a certain number of actions to strengthen the provisioning on previous years, in particular on the motor liability segment. As this process has now been completed, the level of reserves releases has returned to a more normalized level. The operating cost ratio increased by 0.8 points to 34.0% due to the decline in earned premiums.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES