Groupama // Universal Registration Document 2022

6

EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

Life and health insurance in France (in millions of euros)

2022 ‑ 2021 change

31.12.2021

31.12.2022

Gross earned premiums

7,048 100.0% 7,096 100.0%

49

0.7%

Underwriting expenses (policy servicing) - excluding claims management costs

(5,587)

-79.3% (5,365)

-75.6% 222

4.0%

Reinsurance balance

(14)

-0.2%

(9)

-0.1%

6

40.2%

Underwriting margin net of reinsurance

1,447

20.5% 1,723

24.3% 276

19.1%

Net expenses from current underwriting operations

(1,302)

-18.5% (1,348)

-19.0% (46)

-3.6%

Underwriting income net of reinsurance

145

2.1% 374

5.3% 230 >100%

Recurring financial margin net of profit sharing and tax

210

3.0% 150

2.1% (59)

-28.3%

Other items

(56)

-0.8% (116)

-1.6% (60)

<-100%

Economic operating income

298

4.2% 409

5.8% 110

37.0%

Capital gains realised net of corporate income tax and profit sharing Allocations to reserves for long ‑ term impairment net of corporate income tax and profit sharing Gains or losses on financial assets recognised at fair value net of corporate income tax and profit sharing

57

0.8%

97

1.4%

40

70.2%

(5)

-0.1% (13)

-0.2%

(8)

<-100%

32

0.5% (12)

-0.2% (44)

<-100%

Other operations net of corporate income tax

(7)

-0.1%

(5)

-0.1%

3

37.7%

GROUP NET INCOME

375

5.3% 476

6.7% 101

27.0%

Underwriting income net of reinsurance improved by +€230 million as at 31 December 2022. Groupama Gan Vie’s net underwriting income increased by €147 million over the period in connection with the increase in the net underwriting margin (+€210 million), while operating expenses were up €63 million, 2/3 of which is attributable to the increase in commissions and deferred acquisition costs and general expenses for 1/3. The current underwriting margin increased by €67 million, mainly due to the increase in group insurance (+€57 million), thanks to the effect of all the technical measures (price adjustments, selection, etc.) taken to improve the profitability of this portfolio. It should also be noted that net underwriting income includes the effect of discounting actuarial reserves on work stoppage annuities in the consolidated financial statements (based on the conservatively estimated rate of return on assets revised upwards in line with changes in the financial market environment as mentioned above). This adjustment of +60 bp (bringing the rate to 2.00%) at Groupama Gan Vie is characterised by an impact of +€52 million on pre ‑ tax income, mainly concerning prior years. In group insurance, the current underwriting margin increased by €57 million, in connection with the improvement in the loss experience in protection insurance. In individual insurance, the current underwriting margin increased €10 million. In addition, the change in regulatory or contractual provisions had a positive impact on the margin (+€39 million) as well as the increase in the discounting effect of actuarial reserves for

incapacity/invalidity annuities. These two factors were primarily related to the macroeconomic environment (rise in interest rates). The increase in operating expenses (-63 million euros) stemmed mainly from the increase in distribution costs (commissions related to the change in premium income). The net underwriting income of the regional mutuals improved by more than €40 million over the period, with a combined net ratio of 93.3% (-1.9 points compared with 31 December 2021) under the effect of the adverse change in the current loss ratio. The net underwriting result of Groupama Assurances Mutuelles’ life and health insurance improved by more than €40 million under the effect of favourable liquidation results on prior years and the long ‑ term care insurance segment in run ‑ off whose provisioning level no longer requires reinforcement. The recurring financial margin (before profit sharing and tax) was stable at €1.1 billion. Net of profit sharing and tax, it decreased by €59 million over the period due to a voluntary contribution to the profit ‑ sharing fund (combined with an increase in policyholder compensation). In France, net income from life and health insurance amounted to €476 million as at 31 December 2022 compared with €375 million as at 31 December 2021. The non ‑ recurring financial margin decreased by €12 million over the period, mainly because of unfavourable changes in financial assets measured at fair value. Other transactions net of tax amounted to -€5 million.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES