Groupama // Universal Registration Document 2022

6

EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

Economic operating income (in millions of euros)

31.12.2021

31.12.2022

Change

Italy

18

23

5

Greece

5

4

0

Hungary

25

36

11

Romania

1

28

27

Bulgaria

1

3

1

Gan Outre ‑ Mer

4

6

2

Equity ‑ method entities

6

8

2

Tunisia (Star)

3

3

0

China (Avic)

3

5

2

TOTAL

60

109

49

The net income from international insurance totalled €95 million as at 31 December 2022, compared with €57 million as at 31 December 2021. The breakdown of net income, by entity, is as follows:

Net income (in millions of euros)

31.12.2021

31.12.2022

Italy

5

23

Greece

6

5

Hungary

31

17

Romania

4

33

Bulgaria

1

3

Croatia

0

0

Gan Outre ‑ Mer

4

6

Equity ‑ method entities

6

8

Tunisia (Star)

3

3

China (Groupama AVIC)

3

5

TOTAL

57

95

in unit ‑ linked individual savings and a 17.4% decrease in euro ‑ denominated individual savings/pensions business. It should be noted that the agent network was more resilient than the market, while the banking channel was in sharp decline. Group life and health insurance premium income fell 6.0% mainly because of the decline in the protection business (-13.3%). Economic operating income represented a profit of +€23 million, up +€5 million. The combined ratio in property and casualty insurance was 101.2%, a decrease of 0.8 points compared with the previous fiscal year. The loss experience ratio improved by 1.6 points to 65.3% thanks to the favourable effect of changes in the settlement of motor segment claims from previous fiscal years. The current loss experience nevertheless deteriorated by 3.6 points to 72.7% due to the increase in frequency and the average cost of attritional loss experience in all segments. The reinsurance balance deteriorated by -1 point. The operating expense ratio improved by 0.2 points to 33.8%.

(a) Italy Premium income for the Italian subsidiary Groupama Assicurazioni fell 3.6% to €1,181 million as at 31 December 2022. Property and casualty insurance premium income remained stable at €831 million. The passenger vehicle segment (more than 60% of property and casualty insurance premiums) posted a 2.3% decline as a result of the fall in the portfolio in terms of numbers and the average premium in a context of strong competitive pressure. This trend is due to the drop in the box portfolio (telematics), which decreased by -14%, while the “non ‑ box” portfolio gained 0.7%. Moreover, this annual adverse trend was eased by the growth in the business and local authorities casualty segment (+7.8%) thanks to the success of the development of the brokerage channel. Life and health insurance business (€350 million) decreased by 11.1% compared with 31 December 2021. Premium income in the individual retirement savings business posted a 16.2% decrease over the period, broken down into a 13.0% decrease

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES