Groupama // Universal Registration Document 2022

6

EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

Banking and financial businesses contributed +€42 million to the Group’s economic income in 2022, down €20 million. This decline is linked to Groupama Asset Management after a record 2021 in both fixed fees and asset management performance fees. The Group’s holding business posted economic operating income of -€118 million in 2022, compared with -€69 million in 2021. The Group’s net income amounted to €454 million as at Reserves releases on prior years were stable over the period with surpluses up mainly in Italy while decreasing in Hungary and Romania; operating expenses were under control with a ratio of 27.5% over the period. ❯ (-0.7 points to 2.4%) despite contrasting trends by geographical area.

31 December 2022, compared with €493 million as 31 December 2021. The non ‑ recurring financial margin increased by €75 million. It includes realised capital gains of €315 million in 2022, up €184 million with an increase in property capital gains following the sale of a building on the Champs ‑ Elysées and a decrease in capital gains on the sale of securities. Conversely, the financial environment characterised by a rise in bond yields and a drop in the equity markets had an unfavourable impact on changes in the fair value of financial instruments (-€100 million). The 2022 result also includes various non ‑ recurring expenses in the amount of -€51 million, including a sector tax in Hungary of -€13 million. As a reminder, 2021 income included the result from the sale of Orange Bank for -€54 million. The net income from discontinued operations in 2022 corresponds to Turkey’s results.

31.12.2021

31.12.2022

Value change

Economic operating income

480

349

(131)

(1)

Net capital gains realised

131

315

184

(1)

Allocation to reserves for long ‑ term impairment

(20)

(29)

(9)

(1)

Gains or losses on financial assets recognised at fair value

58

(43)

(100)

Other expenses and income

(88)

(51)

37

Financing expenses

(53)

(54)

(1)

Net income from discontinued businesses

(16)

(34)

(19)

NET INCOME

493

454

(39)

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

6.1.4.2 Business and results in France

31.12.2021

31.12.2022

Premium income - France (in millions of euros)

L&H

P&C

Total

L&H

P&C

Total

Regional mutuals

2,075

4,217

6,292

2,119

4,396

6,515

Groupama Assurances Mutuelles

11

18

29

11

33

44

Groupama Gan Vie

4,786

4,786

4,790

4,790

Gan Assurances

142

1,266

1,408

147

1,295

1,442

(1)

Other entities

5

341

346

4

442

446

TOTAL

7,019

5,842

12,860

7,071

6,166

13,237

(1) Including Assu ‑ Vie.

Insurance premium income in France as at 31 December 2022 increased by 2.9% compared with 31 December 2021 and totalled 13,237 million.

147

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES