Groupama // 2021 Universal Registration Document

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

The remainder of the commentary on business activity focuses exclusively on net substitution transactions. Earned contributions reached €2,847.8, up 4.5% (€121.6 million) compared with 2020 (€2,726.3 million). This change came mainly from: inward reinsurance from the regional mutuals, up €149 million ❯ (+6.8%) to €2,344 million. Growth was accentuated by the effect of the takeover of the Grand Courtage portfolio (France Division) by Groupama Rhône-Alpes Auvergne, which generated an increase in premiums ceded to Groupama Assurances Mutuelles of €24 million. Excluding this takeover effect, the increase in accepted contributions remained strong at 5.8%; contributions ceded to Groupama Assurances Mutuelles by the ❯ Group’s subsidiaries (€477 million), down €19 million compared with 2020, in connection with the transfer of the Grand Courtage portfolio from Gan Assurances. Excluding this transfer effect, accepted contributions increased by +2.1%; the cessation by Groupama Assurances Mutuelles of the ❯ reinsurance of La Banque Postale IARD for which only the run-off is covered and which results for Groupama Assurances Mutuelles in almost zero premiums in 2021 compared with €12 million in 2020; as well as premium income from other operations (professional ❯ pools, partnerships, etc.), which increased by €4 million from 2020, of which €6 million came from the international Grand Brokerage Division transferred by Gan Assurances. Claims expenses (excluding claims management expenses), annuities, and other underwriting reserves totalled -€1,892 million, down €299 million, under the combined effect of: the improvement in current claims (€74 million): excess claims ❯ decreased significantly (€193 million compared with €322 million in 2020, which was marked by operating losses due to administrative closures). This significant decrease was partially offset by the deterioration of the attritional claims rate, which returned to a more usual level (return to a more recurrent level of the professions favourably impacted by the lockdown of 2020 such as the automobile sector, whereas health insurance was unfavourably affected by the weight of the “zero excess charges”); and the significant increase in surpluses on prior years, which ❯ totalled +€122 million in 2021 compared with -€91 million in 2020, partly from run-off portfolios and partly from the scope of the regional mutuals in Auto and L&H. This level of surplus is comparable to historical observations (after a 2020 marked by withholding in the provisioning level). The reinsurance and retrocession balance deteriorated by -€221 million in connection with the improvement in the original excess loss ratio. The year 2020 was impacted by significant

excess loss recoveries (notably for business interruption claims for administrative closures and climate claims). After taking into account the commissions paid to ceding entities for €496 million, the net underwriting margin before general expenses was income of €251 million, up €192 million compared with 2020. Groupama Assurances Mutuelles’ total operating expenses amounted to -€277 million, down €11 million. The increase in fees related to major projects is offset by a significant decrease in travel expenses. Financial income was positive at €72 million compared with +€276 million in 2020. The change of -€205 million is mainly related to the decrease in dividends received from GHFP by -€248 million, (€152 million versus €400 million last year), the balance being related to non-recurring financial results (results of disposals and flows of reserves for permanent impairment). Extraordinary income amounted to -€21 million (-€18 million in 2020). The “tax” line item represents net income of €64 million and results from the position of Groupama Assurances Mutuelles as the parent of the Group’s tax consolidation Group. The tax Group recorded a Group corporate tax expense of -€105 million (included in the net tax income of the Groupama Assurances Mutuelles entity). The corporate net income for the fiscal year was thus €89 million. Balance sheet 6.1.8.2 The 2021 balance sheet of Groupama Assurances Mutuelles totalled €15,304 million, up by €776 million compared with 2020. Group's equity represented €3,908 million and consisted of mutual certificates for €3,618 million, retained earnings of €201 million, and corporate net income for the fiscal year of €89 million. Subordinated liabilities amounted to €3,232 million ( versus €2,732 million at the end of 2020). A new loan was issued on 30 June 2021 in the form of redeemable subordinated instruments (TSR) for €500 million. Reserves for contingent liabilities totalled €51 million, including €20 million in reserves for pensions and similar commitments. Gross underwriting reserves increased by €211 million to €7,020 million. They represented 247% of earned contributions (compared with 250% in 2020). Underwriting reserves ceded and retroceded increased by €37 million to €1,392 million. The largest asset item on the Groupama Assurances Mutuelles balance sheet consists of investments with a net book value of €12,914 million. The unrealised gain on investments was €2,121 million.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES