Groupama // 2021 Universal Registration Document

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

In personal insurance, the underwriting result improved despite a deterioration in the current claims experience (individual protection and health insurance) marked by the return to normal after the 2020 Covid year, which was offset by an equally high level of settlements on previous years. The underwriting result for life insurance remained relatively stable. The recurring financial margin (net of profit sharing) increased slightly, mainly due to the lower profit-sharing rate. Net income represented a profit of €5 million compared with a loss of -€26 million at 31 December 2020. This result includes the non-recurring financial margin (realised gains, allocation to provisions for impairment, and change in fair value of financial instruments), which increased (decrease in investment impairments), as well as the amortisation of the value of the portfolio (- €10.8 million) related to the historical Nuova Tirrena portfolio. Turkey (b) The premium income of the Turkish subsidiaries Groupama Hayat and Groupama Sigorta increased by 26.7% to €171 million at 31 December 2021 at constant exchange rates in a context of high inflation (+36.1%) and erosion of the Turkish lira (the average rate used is TRY 10.5/€, and the closing rate TRY 15.2/€) and therefore decreased at current exchange rates. In this context of inflation and currency erosion, the premium income of property and casualty insurance (€139 million) recorded an increase of 27.9% under the effect of strong price increases, thanks to real operational agility and price positioning. On the strength of these factors, passenger vehicle insurance (+19.9%) benefited from this situation and from marketing campaigns that were good for both the damage segment (+19.3%) and the liability segment (+21.5%). The good performance of the agricultural (+43.0%) and commercial (+52.4% due to the increase in the average premium) segments should also be noted. The life and health insurance business (€32 million) increased 21.8%, mainly due to the growth of the health insurance segment (individual and group: +27.9%), which benefited from a growing portfolio and an increase in the average premium. The economic context weighs heavily on the economic operating income of the Turkish subsidiaries Groupama Sigorta and Groupama Hayat. It represented a loss of €20 million versus a profit of €6 million at 31 December 2020. The combined ratio of the property and casualty insurance business amounted to 134.2%, up 21.2 points compared with 2020. This change is explained by the deterioration of the loss experience (serious and attritional), which particularly affected the motor sector, which experienced a significant increase in the cost

of spare parts due to high inflation and the depreciation of the Turkish lira in the last quarter. In addition, the change in provisions for previous years had an unfavourable effect on the business and other risks segments. The operating cost ratio was down 3 points at 26.1%. The underwriting result in personal insurance deteriorated in both non-life and life insurance. In non-life, the gradual relaxation of the lockdown measures in 2021 caused medical care to return to normal and thus weighed on individual health claims. The recurring financial margin (net of profit sharing and tax) increased due to the favourable effect of the evolution of yields. Net income of the Turkish subsidiaries represented a loss of €16 million at 31 December 2021 compared with a profit of €5 million at 31 December 2020. This result includes non-recurring financial income, which is higher than in the previous period. Greece (c) Groupama Phoenix’s premium income increased 6.6% compared with the previous period to €158 million at 31 December 2021. The property and casualty insurance business remained stable at €84 million. Against a backdrop of a health crisis and very strong competition, the private passenger car segment (more than 65% of property and casualty insurance premiums) posted a decline of 0.9%. The good performance of the business damage segment (+4.3%) compensated for this development. Life and health insurance premium income increased by 14.6% to €75 million. It was driven by the good performance of individual health (+11.8%) and group health (+34.5%), which benefited from portfolio development and price adjustments. The Group retirement segment posted an increase of 12.8%, linked to the development of major policies. Premiums for unit-linked individual savings and pensions increased by 15.1%. Economic operating income totalled €5 million at 31 December 2021, down €1 million compared with the previous period. The combined ratio in property and casualty insurance was 84.8%, a decrease of 1.5 points from the previous period. This decrease is due to favourable changes in underwriting reserves on previous years, mainly in the motor liability segment, which compensates for the deterioration in the current claims ratio (+5.7 points to 50.1%) during the second half of the year due to the end of the lockdown. The operating cost ratio increased by 0.8 points to 45.8% due to the decline in earned premiums. The underwriting result in life and health insurance was down due to the reinforcement of reserves in the protection insurance segment (life insurance). Non-life insurance improved due to higher changes in prior year underwriting provisions in health insurance.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES