The Group's economic operating income was EUR 349 million as at 31 December 2022, down +EUR 131 million from 31 December 2021.
It includes EUR 425 million in economic operating income from insurance at as 31 December 2022 compared with EUR 486 million as at 31 December 2021. This result takes into account the effect of discounting technical reserves on non-life annuities with a prudently estimated expected rate of return on assets revised upwards in a context of rising bond yields. It also takes into account the effects of accelerating inflation, with the creation of a specific additional provision for excess inflation on property and casualty insurance claims.
In life and health insurance, operating income was EUR 438 million as at 31 December 2022 compared with EUR 317 million as at 31 December 2021. This change can be attributed primarily to business in France, which grew EUR 110 million over the period, despite the significant strengthening of the profit-sharing fund on general assets.
In property and casualty insurance, economic operating income was -EUR 13 million as at 31 December 2022 compared with EUR 169 million as at 31 December 2021. The exceptionally high level of weather-related claims that marked 2022 resulted primarily from the successive violent hailstorms in many French regions between 20 May and the end of June and from the harsh winter weather in northern France. To deal with this crisis, Groupama mobilised experts in the field to support its affected policyholders. Although reinsurance cover mitigated their effect, the cost of weather events (including weather-related damage to vehicles and homes) for the Group totalled EUR 724 million, net of reinsurance. The average cost of claims also increased significantly because of inflation, affecting both current and prior year claims. However, releases of reserves for prior fiscal years were up as at 31 December 2022 because of the positive impact of the change in the discount rate for non-life annuities following the rise in interest rates.
The non-life combined ratio was 99.4% as at 31 December 2022 versus 97.8% as at 31 December 2021. Operating expenses were under control, with a ratio of 27.5%, down 0.3 points from 31 December 2021.
The economic operating income from financial activities amounted to +EUR 42 million, and the Group's holding business posted an economic operating loss of -EUR 118 million as at 31 December 2022.
The reconciliation of economic operating income to net income includes non-recurring items. The non-recurring financial margin increased +EUR 75 million compared with 31 December 2021, in particular because of the sharp increase in realised capital gains following the sale of a property on the Champs-Elysees in Paris. This increase was mitigated by the less favourable financial market impacts on the change in fair value of financial assets.
The Group's overall net income was +EUR 454 million as at 31 December 2022 compared with +EUR 493 million as at 31 December 2021.
"The year 2022 has been undoubtedly one of the worst in our history in terms of weather losses. Despite this, Groupama showed strong resilience with very good results and once again reaffirmed its major role in the territories, as well as its position in the agricultural sector, particularly in terms of climate insurance issues and measures", said Jean-Yves Dages, Chairman of the Board of Directors of Groupama Assurances Mutuelles.
"The group posted very solid results despite extremely adverse conditions, both in terms of unprecedented weather-related losses and in economic and financial terms with accelerating inflationary pressures and sharp rise in interest rates. This is the result of a constant strategy of controlled development and careful management of our risks, both financial and technical, over the years", said Thierry Martel CEO of Groupama Assurances Mutuelles.