UNIVERSAL REGISTRATION DOCUMENT 2023

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

The Group’s economic operating income totalled €627 million as at 31 December 2023, compared with €306 million as at 31 December 2022. Economic operating income from insurance was €705 million in 2023, up €323 million from 2022. This development was mainly due to the increase in economic operating income from property and casualty insurance (+€338 million), while the savings/pensions business (+€14 million) posted a more moderate rise and health and protection insurance came in slightly down (-€29 million). The net underwriting margin for all models increased by €280 million, including €389 million for PAA business and -€109 million for long ‑ term business. Economic operating income in health and protection insurance is a driver of Group profitability. It amounted to €233 million in 2023 versus €262 million in 2022. Most of this segment’s activity is driven by the PAA accounting model. This model covers the Group’s individual and group health and protection segments, which form the core of the Group business. For this business line, which is subject to inflation in healthcare costs and transfers of expenses from general plans to supplementary plans, the Group applies a rigorous selection and pricing policy reflecting the appropriate level of risks, resulting in a net combined ratio of 95.0% for health and protection PAA model in 2023 compared with 96.3% in 2022 (an improvement of -1.3 points). Conversely, the net underwriting margin for long ‑ term activities (including in particular the long ‑ term care business and borrower policies) decreased by €27 million over the period. In property and casualty insurance, economic operating income totalled €316 million as at 31 December 2023, compared to a loss of €22 million as at 31 December 2022. This progress is due to the significant improvement of the net combined ratio for property and casualty insurance was 97.9% in 2023, compared with 102.6% in 2022 (a decrease of -4.7 points). The net combined ratio for the PAA model (Property and casualty insurance and Health/protection) was 96.8% in 2023, compared with 100.4% in 2022 (-3.6 points). The change is the result of several factors: the effect of claims discounting, which led to a 2.1 point improvement in the combined ratio; ❯ a current weather loss experience net of reinsurance, which accounted for 7.3 points of insurance revenue in 2023 ( versus 6.3 points in 2022), reflecting an additional net retention of €198 million compared with last year. It has three characteristics: ❯ a gross cost of €1,321 million in weather ‑ related claims (down €209 million compared with 2022), ■ a loss experience that significantly impacted the international subsidiaries in 2023 (€189 million versus €46 million in 2022), ■ less coverage by reinsurance protections than in the previous year; and ■

For savings/pensions, the economic operating income amounted to €156 million in 2023, up €14 million over the period. This change includes: changes on previous years, which improved significantly by 2.4 points compared to the previous year. This change can be seen both in France and internationally. It is partially attributable: to 2022, which was characterised by the constitution of provisions to cover the increase in the cost of pending cases: to inflation; and, in 2023, to a better level of claims settlement (accounting for nearly one point in loss experience), thanks in large part to the efforts of management. It should be noted that, net of reinsurance, the weight of the change in the previous weather loss experience remained stable; ❯ the operating expense ratio was stable at 28% in 2023. ❯ a VFA underwriting margin down to €38 million, which comprises a -€55 million decrease in France and an increase of €17 million internationally. The decline in France is mainly due to a market effect linked to the change in the yield curve at the end of 2023, which had the adverse effect of releasing the CSM (contractual service margin) under the “bow wave” (a mechanism that corrects a distortion of the emergence of Savings/pension margins due to the time effect in the models). This effect, which resulted in a favourable correction of financial performance in 2022 worth €64 million, did not result in a correction of 2023 financial performance and therefore had no effect on 2023 profit. Adjusted for this effect, the level of CSM release and the associated risk (AR) margin is comparable to last year, i.e. €278 million in 2023 (compared with €279 million in 2022). Internationally, the underwriting margin benefited from the favourable effect of a reversal of loss component in Italy for €20 million; ❯ a series of factors linked to the increase in financial performance, against a backdrop of more favourable financial markets, which benefits the insurer in terms of equity positioned opposite to Savings/pensions contracts. These items were up by around €60 million versus the previous year and contributed positively to ROE; ❯ income from BBA contracts (+€7 million) net of financial income, mainly linked to the release of CSM, which constitutes a -€7 million change in income compared to last year. ❯ Economic operating income from financial activities fell by €7 million, while that of the holding business increased by €5 million over the period. The Group’s net income totalled €510 million in 2023 compared with €13 million in 2022. a minor increase in the cost of serious claims (+0.5 point) compared to last year. Around 0.3 point can be explained by the effect of the riots in France in June and July; ❯ a 1.5 ‑ point improvement in the attritional loss experience to 60.7%. This noteworthy change in France and internationally conveys the emphasis placed on preserving margins in a context marked by inflation and a need for increased risk selection; ❯

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Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES