FULL YEAR 2018 RESULTS Analysts Conference Call – 15 March 2019
GROUPAMA GROUP FY 2018 Results Key messages SIGNIFICANT INCREASE IN THE NET INCOME €354m €14,3bn €450m Insurance Economic Premium Income Net Income Operating Income (+4.0%) (+54%) € € Realised capital gains Strong increase in both Economic operating from the sale of the Window Groupama – combined perimeter P&C and L&H insurances income at €298m building in La Défense C 2
GROUPAMA GROUP FY 2018 Results Key messages FINANCIAL STRENGTH C C €540m €8.9bn 167% Mutual Certificates IFRS Group’s equity Solvency Ratio outstanding € € C C Increase in ‘core’ IFRS IFS rating confirmed: €104m of mutual certificates Groupama – combined perimeter equity A- Positive, Fitch Ratings issued in 2018 3
GROUPAMA GROUP FY 2018 RESULTS 1. Business performance 2. Financial strength 3. Appendices 4
GROUPAMA GROUP FY 2018 Results Business performance INCREASE IN PREMIUM INCOME Total premium income Premium income breakdown +4.0% 31/12/17 €14.3 bn Like-for-like Premium income 31/12/18 ∆ In millions of euros Proforma P&C 7,196 7,389 +2.7% €13.7 bn France 5,511 5,621 +2.0% International 1,685 1,768 +4.9% L&H 6,368 6,706 +5.3% France 5,555 5,936 +6.8% Groupama – combined perimeter International 813 770 -5.3% Total Insurance 13,564 14,094 +3.9% Financial businesses 147 169 +15.1% 31/12/17 31/12/18 ABR : assurance de biens et responsabilité Total – Groupama 13,711 14,263 +4.0% proforma AP : assurance de personnes 5
GROUPAMA GROUP FY 2018 Results Business performance INCREASE IN FRANCE AND OUTSIDE FRANCE Premium income Premium income International premium income breakdown France International +4,4% Like-for-like €11.6bn In millions of euros 31/12/18 ∆ +1,6% Italy 1,481 -1.7% €11.1bn CEEC (Hungary, 589 +6.5% €2.54bn Romania, Bulgaria) €2.50bn Other countries (1) 468 +6.5% Total Insurance - 2,537 +1.6% International Groupama – combined perimeter China (2) 300 +10.1% (1) mainly Turkey and Greece (2) Equity method accounted entity (50% of Groupama AVIC owned by Groupama) 31/12/17 31/12/18 31/12/17 31/12/18 proforma 6
GROUPAMA GROUP FY 2018 Results Business performance LIFE & HEALTH INSURANCE L&H Premium income Premium income breakdown Premium income breakdown L&H - International L&H - France +5.3% €6.7 bn Savings & pensions: 36.2% - o/w Euros: 20.6% Savings & pensions - o/w UL: 15.5% 64.5% €6.4 bn Protection 23.4% Others 7,4% 31/12/18 31/12/18 Groupama – combined perimeter Health 12.1% Protection 20.5% Health 35.9% 31/12/17 31/12/18 7
GROUPAMA GROUP FY 2018 Results Business performance SAVINGS & PENSIONS IN FRANCE Share of unit-linked in revenue, Share of unit-linked in individual Financial Leeway individual savings & pensions savings reserves (Groupama Gan Vie) (France) (France) Inforce business 41.6% 39.3% 2.1% +100 bp 1.1% 29.9% 25.8% 25.3% 28.1% 31/12/2018 14% 13% New business 9.0% Groupama – combined perimeter 7.1% 12.2% 11.8% +170 bp 1.7% 2011 2012 2017 2018 2011 2012 2017 2018 0% No guaranted Groupama Gan Vie rate Market (FFA) 31/12/2018
GROUPAMA GROUP FY 2018 Results Business performance PROPERTY & CASUALTY INSURANCE P&C Premium income Premium income breakdown Premium income breakdown P&C - International P&C - France +2.7% €7.4bn €7.2bn Others Others Agricultural 3.7% 7.1% insurance 6.9% Agricultural insurance Companies & 17.7% local authorities 14.2% 31/12/18 31/12/18 Groupama – combined perimeter Companies & local authorities 15.5% Personal and Personal and Professional: 75.2% Professional: 59.7% - o/w motor insurance: 62.2% - o/w motor insurance: 29.5% - o/w home insurance:11.8% 31/12/17 31/12/18 - o/w home insurance:19.3% 9
GROUPAMA GROUP FY 2018 Results Business performance NON-LIFE COMBINED RATIO Non-life combined ratio Non-life combined ratio Historical data - Group Group France Non-life combined ratio 98.8% 98.6% 98.9% 99.3% 102.6% 100.8% 100.3% 99.3% 31/12/17 31/12/18 Net claim ratio 70.9% 71.6% 99.0% 99.2% 98.9% Net cost ratio Non-life combined ratio International 99.7% Groupama – combined perimeter 102.6% 28.0% 27.7% 2012 2013 2014 2015 2016 2017 2018 31/12/17 31/12/18 31/12/17 31/12/18 10
GROUPAMA GROUP FY 2018 Results Group results ECONOMIC OPERATING INCOME Operating income Breakdown of Groupama Operating income P&C operating income Total Insurance Total -€10m In €m France Int’l P&C €364m €354m 31/12/17 59 43 102 In €m 31/12/17 31/12/18 31/12/18 59 13 72 72 102 Insurance 364 354 Operating income L&H Financial activities 32 34 Groupama – combined perimeter 282 France 262 Total -89 Holdings -46 Int’l In €m Other L&H GGVIE Total entities TOTAL 349 298 31/12/17 85 136 221 41 262 31/12/17 31/12/18 31/12/18 80 172 252 30 282 L&H P&C 11
GROUPAMA GROUP FY 2018 Results Group results STRONG INCREASE IN NET INCOME Net income Breakdown of Groupama net income +54.0% 31/12/18 In €m 31/12/17 €450m Economic operating income 349 298 Net realised capital gains (1) 208 351 Net profit from disposal activities (2) 136 -2 Long-term impairment losses on financial €292m -7 -7 instrument (1) Gains or losses on financial assets 40 -25 booked at fair value (1) Financing expenses -57 -57 Groupama – combined perimeter Goodwill impairment -58 0 Other costs and income -318 -109 Net income 292 450 31/12/17 31/12/18 (1) amounts net of profit sharing and tax (2) of which ICADE in 2017 12
GROUPAMA GROUP FY 2018 RESULTS 1. Business performance 2. Financial strength 3. Appendices 13
GROUPAMA GROUP FY 2018 Results Balance sheet ASSET BREAKDOWN IN LINE WITH OUR TARGET Asset portfolio* Asset portfolio breakdown* Unrealised capital gains €75.6bn €73.7bn Equities Cash available Others 5.8% 4.8% 2.3% In € bn 31/12/17 31/12/18 Property 5.6% Fixed income 6.9 5.2 Equities 1.0 0.6 31/12/18 Property 2.5 2.2 Groupama – combined perimeter Fixed income Total 10.4 8.0 81.4% 31/12/17 31/12/18 * Fair value, excluding unit linked, repurchase agreements and minorities 14
GROUPAMA GROUP FY 2018 Results Balance sheet RESPONSIBLE INVESTOR Financing the real economy Property and forest assets Groupama’s commitments • Gradual withdrawal from any 21,000 ha of sustainably managed Nearly €1.8 billion commitment : company whose turnover is forests … private equity, loan funds, more than 30% coal-derivated transportation infrastructure, energy- environment, commercial real estate • No investment in companies projects… whose oil sands represent more allowing to store 10 Mt of carbon than 15% of total reserves of which €500 million commitment • Investments of €1 billion over 3 in support of major infrastructure years to finance the energy Groupama – combined perimeter projects Green bonds transition Nearly €250 million Almost half directly dedicated to outstanding amount finance the energy transition of green or socially responsible bonds 15
GROUPAMA GROUP FY 2018 Results Balance sheet STABLE GROUP’S EQUITY IFRS Group’s equity Change in IFRS Group’s equity (in €m) (in €m) €8.9bn €8.9bn 8,912 +450 8,884 1,099 1,099 -86 +104 1,285 subordinated 1,780 debts -496 revaluation reserve core Group's 6,501 6,033 equity Groupama – combined perimeter 31/12/2017 31/12/2018 Group's equity Revaluation Mutual Net Income Others Group's equity 31/12/2017 reserve Certificates 31/12/2018 * Core Group’s equity: initial capital, retained earnings 16
GROUPAMA GROUP FY 2018 Results Balance sheet STRONG SOLVENCY RATIO Solvency ratio with and without transitional measure Solvency ratio roll-forward In €m ratio w/o transitional measure -16 bp +9 bp 315% 297% +2 bp +4 bp 12.9 12.7 174% -5 bp 167% 174% 167% Group strategy: +15 bp Group strategy: +15 bp 9.4 9.0 eligible own funds 5.6 5.2 Groupama – combined perimeter capital 4.3 4.0 requirement (SCR) with transitional w/o transitional 31/12/2017 Results Mutual Subordinated Market Others 31/12/2018 w/o transitional with transitional Certificates Debt environment measure measure measure measure 31/12/2017 31/12/2018 17
GROUPAMA GROUP FY 2018 Results Solvabilité Groupe CONTRIBUTION TO SCR, ELIGIBLE OWN FUNDS AND SENSITIVITIES Contribution to SCR Eligible Own Funds (1) Sensitivities by risk 31/12/18 o/w « grandfathered » Sub. Debts Tier 2 interest rate 13% (4% of EOF) -19 bp -50 bp 7% o/w « grandfathered » sub. Debts 87% interest rate 21% (10.5% of EOF) +13 bp +50 bp Tier 1 45% At 31/12/18 w/o diversification equity markets effect -11 bp o/w mutual -25% 9% certificates (4.2% of EOF) equity markets + 9 bp 10% +25% 8% Groupama – combined perimeter corporate spreads +5 bp + 75 bp Market risk Counterparty default risk Life underwriting risk 31/12/2018 Health underwriting risk (1) Scope w/o financial activities Non-life underwriting risk Operational risk 18
GROUPAMA GROUP FY 2018 RESULTS 1. Business performance 2. Financial strength 3. Appendices • Ranking • Asset portfolios • Subordinated debts 19
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