Groupama // 2021 Universal Registration Document

1 OVERVIEW OF THE GROUP Key figures

1.3.2

ALTERNATIVE PERFORMANCE INDICATORS (API)

The economic operating income and the combined non-life ratio are alternative performance indicators (“API”) in the light of the ESMA guidelines and the AMF position published in 2015. These alternative performance indicators are used by the Group to analyse its operating trends, financial performance, and financial position and to provide investors with additional information considered useful and relevant to the Group’s results. 1.3.2.1 Economic operating income equals net income adjusted for realised capital gains and losses, long-term impairment provision allocations and write-backs, and unrealised capital gains and losses on financial assets recognised at fair value (all such items are net of profit sharing and corporate income tax). Also adjusted are non-recurring items net of corporate income tax, impairment of value of business in force, impairment of goodwill (net of corporate income tax), and external financing expenses. Definitions

The combined ratio is the sum of the all-years net loss experience and the rate of operating costs. The all-years net loss experience is the ratio between underwriting expenses for all years, gross of reinsurance, plus the reinsurance balance and earned premiums, gross of reinsurance. The rate of operating costs is the ratio between operating general expenses and earned premiums, gross of reinsurance. The combined non-life ratio relates to the non-life business. 1.3.2.2 The reconciliation of economic operating income and the combined non-life ratio with the line of the financial statements of the corresponding period or its subtotal or the nearest total is presented in the tables below. Reconciliations

2021

2020

2019

(in millions of euros)

Economic operating income

461

306

413

Net capital gains realised (1)

135

118

354

Allocation to reserves for long-term impairment (1)

(20)

(32)

(71)

Gains or losses on financial assets recognised at fair value (1)

58

45

9

Other expenses and income

(89)

(85)

(110)

Financing expenses

(53)

(49)

(63)

Net income from discontinued business activities

0

0

(4)

Goodwill impairment

0

(125)

(183)

Net income

493

177

345

Amounts net of profit sharing and corporate tax. (1)

Non-life business activity

2021

2020

2019

All-years net loss experience

70.5%

70.9%

69.5%

Operating expense ratio

27.8%

27.8%

27.5%

Combined ratio

98.3%

98.7%

97.0%

9 Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES