GROUPAMA reported 43% increase in full-year net profit

18 March 2016 — Vlad BOLDIJAR
The French insurer GROUPAMA reported a strong increase (of 43%) in its 2015 net profit, to EUR 368 million (EUR 257 million in 2014), a stable non-life combined ratio of 99.2% and a significant growth in economic operating income to EUR 163 million, "despite two significant adverse factors: the low-interest rate environment and changes in legislative environment for motor third-party liability in Turkey", the insurer said in a press release published on its website.

At the same time, GROUPAMA's combined premium income stood at EUR 13.7 billion (vs. EUR 13.6 billion in 2014). In property and casualty insurance, the Group posted premium income growth of +0.8% to EUR 7.1 billion "thanks to a selective underwriting policy and targeted tariff increases", while premium income from life and health insurance was EUR 6.3 billion, up by 1.1% y-o-y: "this change was due in particular to the strong growth in the group health insurance business both in France and internationally and the turnaround in the savings/pension business in France with premium income stabilising over the period after several years of decline".

Analyzing the territorial distribution of premium income, one notices that France represented 78% of the group's overall activity which amounted to EUR 10.7 billion on 31 December 2015 (0.9% more y-o-y).

At the same time, financial an banking businesses premium income remained unchanged at EUR 0.28 billion.

Outside France, the value of premium income totaled EUR 2.8 billion, 1.3% more compared with FY2014 figures. GROUPAMA's premium income volume increased in Romania (+13.2%) and Turkey (+5.1%) while in Hungary (-2.8%) the value of premium income declined.

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