Groupama // 2021 Universal Registration Document

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

Romania (e) Premium income of the Romanian subsidiary Groupama Asigurari rose by 53.3% to €331 million at 31 December 2021. It should be remembered that this growth stemmed from the failure of a major player, resulting in natural market flows to the other players in its motor liability portfolio. Property and casualty insurance (€306 million) increased by 57.3%, driven by the strong growth of the private motor insurance segment (83.5% or nearly 75% of property and casualty insurance premiums). Premium income in the non-life motor segment rose by 16.8% (due to the increase in new business and the average premium), while premium income in the civil liability segment increased by a factor of 4.5, as the subsidiary benefited from the effects of the failure of the major player mentioned above. The good performance posted by the business protection segment (+19.8%) should also be noted. Life and health insurance premium income (€25 million) increased 17.2% over the period, driven by growth in group health (+16.6%), particularly due to significant policy renewals. The growth in the individual protection segment (+16.3%) should also be noted. The Romanian subsidiary’s economic operating income represented a profit of €1 million compared with a loss of €6 million at 31 December 2020. The net combined ratio of property and casualty insurance improved by 1.2 points to 101.7%. The loss ratio decreased by 7.9 points to 60.9% due to the favourable development of changes in underwriting reserves from previous years in the motor segment (mainly in civil liability). The current (attritional) loss ratio of the motor segment increased (+1.5 point to 76.4% in non-life) due to the gradual return to normal activity associated with the lifting of lockdowns and a prudent approach to the provisioning of IBNR due to the general inflationary context and the strong growth of the portfolio. Severe weather (exceptional drought and hail) also negatively affected the agricultural business and home insurance segments. The reinsurance balance (+4.5 points) deteriorated due to the implementation of a new proportional reinsurance treaty, set up to support the development. The operating expense ratio increased by 2.2 points to 35.9% (inflation on salaries and reallocation of costs). Life and health insurance underwriting income was up significantly, especially in life insurance (individual protection). The recurring financial margin (net of profit sharing and taxes) increased under the effect of more favourable market conditions. Net income was €4 million, up €2 million on the previous year.

The recurring financial margin (net of profit sharing and tax) was down slightly due to lower dividends. Net income totalled €6 million compared with €7 million in 2020. This includes the non-recurring financial margin, which showed an increase in realised capital gains. Hungary (d) Premium income of the subsidiary Groupama Biztosito in Hungary increased 9.8% to €392 million at 31 December 2021. Written premiums in property and casualty insurance were up 9.6% at €206 million at 31 December 2021. The development of the portfolio and new business with high average premiums explain the growth of the non-life business (+23.1%). The good performance posted by the home insurance segment (up +7.5%) and agricultural business lines (up +26.1%) should also be noted. In life and personal insurance, premium income totalled €186 million, up 10.0%, driven by growth in the individual savings/pensions segment (+8.0% due to the development of the portfolio). The success of unit-linked products in the partner banking network enabled the segment to post a 3.5% increase, while premiums for traditional savings rose by 30.1% thanks to the success of the Risk Life product. The subsidiary’s life/savings premium income was comprised 79.7% of unit-linked policies. The good performance of the individual protection segment should also be noted (+18.3%). Economic operating income totalled €25 million at 31 December 2021, down €1 million compared with the previous period. The net combined ratio for property and casualty insurance decreased by 3.4 points to 92.0% at 31 December 2021. This improvement is mainly due to the impact of changes in underwriting provisions from previous years (increase in bonuses), particularly in the motor liability segment, following exceptional additions to reserves in 2020. The current loss ratio was comparable to that of last year, and the all-year loss ratio was down by 3.7 points (at 38.7%). The operating expense ratio was up slightly (+0.7 points) at 49%. The underwriting result in personal insurance increased, thanks to the improvement in individual non-life insurance. The recurring financial margin (net of profit sharing and tax) was down as a result of the decrease in financial income. The Hungarian subsidiary’s net profit was €31 million, up €7 million on the previous year. This result includes the non-recurring financial margin, which increased due to the rise in unrealised capital gains on investments recorded at market value against the result.

131 Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES