Groupama // Universal Registration Document 2022

6

EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

(b) Greece Groupama Phoenix’s premium income increased 12.3% compared with the previous period to €178 million as at 31 December 2022. The property and casualty insurance business remained stable at €84 million. The decline in the passenger vehicle insurance (-1.9% or nearly 65% of premiums in property and casualty insurance) and home insurance (-11.2% in connection with the banking portfolio run ‑ off) segments diminished the growth of the business damage insurance segment (+14.6%). The start of the direct business in motor insurance was slower than expected, but the stronger growth has now been encouraging since the last quarter. Life and health insurance premium income increased by 25.2% to €93 million. It was driven by the good performance of the group retirement segment (+56.9% in connection with the development of large single premiums). The individual (+10.2%) and group (+17.9%) health insurance segments benefited from the development of the portfolio. Economic operating income amounted to +€4 million as at 31 December 2022 compared with +€5 million for the previous period. The combined ratio in property and casualty insurance amounted to 89.1%, up 4.2 points compared with last year. The slight decrease in the loss experience (-0.4 points to 26%) was due to the adverse effect of the increase in the current loss ratio and the increase in liquidation surpluses on prior fiscal years. The current loss experience deteriorated (increase of 3.9 points to 54%), particularly in motor insurance, because of the increase in frequency (end of lockdown) and the impact of inflation on the average cost of claims. The operating expense ratio was up 4.9 points at 50.6%, mainly due to the launch of the direct insurance platform and the impact of inflation on general expenses. The underwriting result in life and health insurance increased thanks to the improvement in individual protection in life insurance, which benefited from a favourable interest rate effect. Conversely, the individual health segment in non ‑ life insurance deteriorated significantly with an increase in frequency (end of lockdown and return to normal). The recurring financial margin (net of profit sharing and tax) was slightly lower. Net income totalled €5 million compared with €6 million as at In life and health insurance, underwriting income fell mainly under the effect of the increase in the current loss ratio in the personal protection and health segments, following the return to a normal situation after the lockdown period in 2021. The recurring financial margin (net of profit sharing) increased significantly under the effect of the increase in rates of return. Net income represented a profit of €23 million compared with a €5 million as at 31 December 2021. This result includes the non ‑ recurring financial margin (including a sharp increase in realised capital gains) and, for the last year, the amortisation of the portfolio’s value (-€11 million), which is now fully amortised.

(c) Hungary Premium income of the subsidiary Groupama Biztosito in Hungary increased 13.9% to €409 million as at 31 December 2022. Written premiums in property and casualty insurance were up 16.5% at €220 million as at 31 December 2022. The development of the portfolio and new business with high average premiums explain the growth of the non ‑ life business (+19.6%). The good performance posted by the passenger vehicle (+15.1%), home (+12.6%), and agricultural sector (+62.0%) segments should also be noted. In life and health insurance, premium income was up 11.0%, reaching €189 million, driven by the good performance of the individual savings/pensions (+8.6%) and individual protection (+20.0%) segments. Traditional savings premiums rose by 23.1% thanks to the success of the Risk Life product, while unit ‑ linked premiums in the partner banking network were up 4.9%. The subsidiary’s life/savings premium income now accounts for 76.9% of UL policies. Economic operating income totalled €36 million in 2022 versus €25 million for the previous period. The net combined ratio in property and casualty insurance increased by 7.6 points to 99.6% as at 31 December 2022. The loss experience worsened by 12.4 points to 51.2%. This situation is explained by the combined effect of the increase in the current loss experience and the adverse impact of changes over prior fiscal years. The current loss experience deteriorated by 9 points to 54.3% because of the impact of inflation (and the weakness of the currency) on the average cost of claims (motor and home insurance segments) and the consequences of the drought on the agriculture segment during the first half of the year. However, the subsidiary managed to effectively contain the effect of inflation, which was 25% in Hungary in 2022, through dynamic pricing management. Reserves releases on prior fiscal years were down mainly in the motor segment. The operating expense ratio was up slightly at 49.5%. Life and health insurance underwriting income improved thanks to individual savings in life insurance. The recurring financial margin (net of profit sharing and taxes) was up sharply due to the increase in interest rates and extremely efficient asset management (reduction of the risk asset segment at the beginning of the year and reinvestment of cash under good conditions in a context of sharp rise in interest rates). The Hungarian subsidiary’s net income represented a profit of €17 million. This includes the non ‑ recurring financial margin as well as an exceptional contribution of -€13 million on insurance business activities implemented by the Hungarian government in June 2022. 31 December 2021. This result notably includes the non ‑ recurring financial margin (incorporating a decrease in realised capital gains compared with the prior fiscal year).

155

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES