UNIVERSAL REGISTRATION DOCUMENT 2023

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 €3,326.9 million, up +10.2% (€306.7 million) compared with 2022 (€3,020.2 million). This change came mainly from: inward reinsurance from the regional mutuals, up €203 million (+8.4%) to €2,632.7 million, growth that was driven in particular by pricing effects on mass portfolios and strong growth in the Crops segment; ❯ contributions ceded to Groupama Assurances Mutuelles by the Group’s subsidiaries (€649.3 million), up €99.2 million compared with 2022, including €37 million contributed by Groupama Assistance with the implementation of the new quota share treaty €23 million by Gan Assurances, and €15 million by Groupama Asigurari (linked to the quota share treaty); ❯ as well as premium income from other operations (professional pools, partnerships, etc.), which increased by €4.3 million from 2022, mainly from the international Grand Courtage portfolio. ❯ Claims expenses (excluding claims management expenses), annuities, and other underwriting reserves totalled -€2,294 million, a strong improvement of €299 million, resulting from: mixed results for the current fiscal year with an excess loss experience that was slightly distorted (+0.7 points to 10.6%) in earned premiums, an attritional loss experience that improved by -2.2 points and a lacklustre improvement in weather loss experience (-5.6 points to 24%), which remains well above the average observed in recent years over a slightly longer observation period; ❯ a sharp increase of €379 million euros in changes on previous years (+€486 million euros compared with +€107 million euros in 2022) across all scopes. This -11.1 ‑ point change in earned premiums is largely due to interest rate effects (which were already significant in 2022 but amplified in 2023), particularly in motor third ‑ party liability; ❯ serious motor claims are largely reinsured by Groupama Assurances Mutuelles, the Group’s internal reinsurer; ❯ the rate component reduces the 2023 combined ratio by around 6 points and about 90% of it is surpluses on previous years. While 2023 was unusual due to the very strong rate effect, 2022 was, conversely, marked by the impact of inflation on pending claims; ❯ the 2023 trend for weather ‑ related claims versus previous years was unfavourable (in particular due to the revision of claims linked to the 2022 drought). These various elements obscure a structural improvement observed on claims settlement versus 2022. ❯

6.1.8.2 Balance sheet The balance sheet of Groupama Assurances Mutuelles as at 31 December 2023 totalled €16,702 million, up €1,004 million compared with 2022. Shareholders’ equity represented €4,154 million and consisted of mutual certificates for €3,618 million, retained earnings of €372 million, and income for the fiscal year of +€165 million. Subordinated liabilities amounted to €3,009 million ( versus €3,006 million in 2022). Reserves for contingencies and charges were €116 million. Gross underwriting reserves increased by €166 million to €7,860 million. Underwriting reserves ceded and retroceded increased by €12 million to €1,982 million. The largest asset item on the Groupama Assurances Mutuelles balance sheet consists of investments, with a net book value of €13,490 million. The unrealised gain on investments was €2,291 million. The reinsurance balance (including retrocessions) deteriorated by -€308 million under the combined effect of an increase in the cost of reinsurance (increase in ceded contributions net of commissions of €57 million) and lower recovery of claims (the ceded weather claims expense decreased sharply between 2022 and 2023). After taking into account the commissions paid to ceding entities for €566 million, the net underwriting margin before general expenses was income of €425 million, down €222 million from 2022. Operating expenses for Groupama Assurances Mutuelles totalled -€333 million. Financial income was positive at €193 million. This change is attributable to favourable asset arbitrage on the bond portfolio (held via funds in particular), an increase in remuneration from group entities (dividends and coupons on internal loans) and a decrease in external financing expenses (thanks to the partial repayment of a perpetual subordinated bond) in the second half of 2022. Extraordinary items and tax represented an expense of €121 million in 2023, compared with income of €71 million in 2022. It should be remembered that Groupama Assurances Mutuelles is the Group’s tax consolidation hub, which causes a high degree of volatility in the tax item in the Company’s results. The corporate net income for the fiscal year was thus €165 million.

196

Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES