Groupama, 1H2021: improving operating results despite the high level of weather-related losses

2 September 2021 — Daniela GHETU
French Groupama's combined financial statements for the 1H2021 show a combined premium income of EUR 10.1 billion, up by +8.8% y-o-y. Business was up significantly in life and health insurance (+16.7%) with premium income reaching EUR 4.7 billion. In property and casualty insurance, the Group generated EUR 5.3 billion in premium income, up +2.3% y-o-y.

The main highlights of the 1H2021 results are:

  • Premium income of EUR 10.1 billion, up +8.8%
  • Sharp increase in life and health insurance (+16.7%) driven by the excellent performance of the individual savings/pensions segment in France (+48.5%)
  • Growth in property and casualty insurance (+2.3%) both in France (+2.4%) and internationally (+1.4%)
  • Net income up significantly at EUR 297 million (+114%)
  • Non-life combined ratio of 98.1% in line with our objectives
  • Growth in economic operating income to EUR 264 million
  • Increase in non-recurring financial margin
  • Solvency ratio with transitional measure of 261%
  • A solvency ratio of 174% without transitional measure on technical reserves
  • Group's IFRS equity of EUR 10.7 billion
"The first few months of this year have once again been marked by a high level of weather-related losses - hail, frost and floods - which have particularly affected the agricultural sector. Because climate issues are at the heart of our concerns, Groupama is actively participating in the work carried out by the French government on risk management and crop insurance. I would like to thank our employees and elected members for their commitment to our customers and members because, despite those unfavorable climate conditions, the mobilization of everyone has enabled the Group to achieve good half-year results.", stated Jean-Yves Dages, Chairman of the Board of Directors of Groupama Assurances Mutuelles.

Insurance premium income in France amounted to EUR 8.8 billion, up +9.4% compared with 30 June 2020. In property and casualty insurance, premium income totaled EUR 4.5 billion at 30 June 2021, up by 2.4%. Insurance for individuals and professionals increased +1.5% to EUR 2.5 billion (nearly 60% of written premiums in property and casualty insurance). This increase was driven by the growth in professional risks (+3.3%) and, to a lesser extent, by motor insurance (+1.0%) and home insurance (+0.9%). Insurance for businesses and local authorities increased significantly (+7.2%) to EUR 813 million. The growth in agricultural insurance (+4.9%) to EUR 901 million is primarily explained by premium reductions granted in 2020 in connection with the pandemic crisis.

In life and health insurance, premium income increased +17.6% to EUR 4.320 billion. The Group's life and capitalization premium income in France increased +43.2%. This change mainly stemmed from the growth in the individual savings/pensions business (+48.5%), in particular UL inflows, which increased +74.1% and represented nearly 60% of premium income.

Health and personal injury premium income at 30 June 2021 was up +4.6% from the previous period, linked with the growth in individual health (+1.9%) and group health (+6.4%).

Internationally, over the first half of 2021, business reached EUR 1.2 billion, up +3.0% from 30 June 2020 on a like- for-like basis and with constant exchange rates. Property and casualty insurance premium income totaled EUR 798 million at 30 June 2021, up by 1.4% from the previous period. Business lines however fared differently. The good performances of insurance for businesses and local authorities (+8.1%), agricultural insurance (+9.6%) and home insurance (+3.1%) are noteworthy. In motor insurance, business fell -1.8%, mainly in Italy and Hungary, but rose in Turkey, Romania, and Bulgaria.

In life and health insurance, premium income was up +6.5% at EUR 366 million. Individual life and health insurance increased +6.1% thanks to the growth in individual savings/pensions (+8.3%), mainly in Italy and Hungary. Group life and health insurance was up +8.7% at EUR 52 million in connection with the growth in the group health segment (+17.6%), especially in Greece and Romania.

The Group's economic operating income was EUR 264 million at 30 June 2021, up +EUR 68 million from 30 June 2020. It includes EUR 246 million in economic operating income from insurance at 30 June 2021, up +11.8%.

More details on the 1H2021 results are available on the Group's website.

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