GROUPAMA, 1H2018: increase premium income and improved combined ratio

The French group GROUPAMA (Groupama Assurances Mutuelles) has reported a combined premium income of EUR 9.5 billion, 3.6% up y-o-y, for 1H2018. Most of the premium income, worth EUR 8 billion, was provided by the French business segment.

Business was up for property and casualty insurance (+2.1%), where the Group had generated EUR 5.3 billion in premium income and life and health insurance (+5.2%) at 30 June 2018, for which premium income reached EUR 4.1. billion.

"The results of the first half of the year confirm the relevance of Groupama's strategic choices and the steady progress in its operating efficiency. We are proud of these results at a time when Groupama is returning to its roots by converting its central body to a mutual insurance company," stated Jean-Yves Dages, Chairman of the Board of Directors of Groupama Assurances Mutuelles.

In France, GWP went up by 3.2% y-o-y, with the best dynamics being recorded in the life&health segment, which saw a 5.7% increase in premiums. Group premium income for life and capitalization in France rose 10.2% in a market up 6% at the end of June 2018 (source: FFA). This change is mainly attributable to the increase in individual savings/pensions in unit-linked (+9.6%), the growth of contracts in euros being lower (+3.8%). Unit-linked share of individual savings liabilities reached 26.2% on 30 June 2018 versus 25.8% on 31 December 2017. In health insurance, premium income grew 3.1% compared to the previous period, driven by strong development in group health (+7.1%).

International premium income amounted to EUR 1.4 billion at 30 June 2018, up 4.5% on a like-for-like basis and with constant exchange rates compared with 30 June 2017.

In property and casualty insurance, premium income was up 6.4% from the previous period at EUR 984 million on 30 June 2018. This growth is mainly linked to the good performance of motor insurance (+7.7%), particularly in Italy and Romania, and of the agricultural business lines (+5.8%), mainly in Turkey.

In life and health insurance, the EUR 406 million in premium income was up 0.4%, with contrasting results depending on the line of business. Premium income in individual savings/pensions was in decline (-6.4%), given the strong performance in Italy and Hungary in 2017. Meanwhile, group insurance surged 23.6%, thanks to the strong growth in the retirement (+42.0%) and health (+31.2%) branches, especially in Italy.

A solid balance sheet

The group's shareholders' equity totaled EUR 8.9 billion at 30 June 2018. It includes EUR 504 million of mutual certificates, of which EUR 68 million were collected during the first half of 2018.

At 30 June 2018, insurance investments stood at EUR 87.2 billion, stable against the figure at 31 December 2017. The Group's unrealized capital gains were EUR 9.4 billion at 30 June 2018, including EUR 6.1 billion from the bond portfolio, EUR 0.8 billion from the equity portfolio, and EUR 2.5 billion from real estate.

On 19 April 2018, the rating agency Fitch confirmed the 'A-' Insurer Financial Strength (IFS) ratings of Groupama Assurances Mutuelles and its subsidiaries and raised the outlook associated with these ratings from 'Stable' to 'Positive'.

At 30 June 2018, the Solvency 2 ratio was 298%. Groupama calculates its Group Solvency 2 ratio including the transitional measure on technical reserves authorized by the ACPR. Without the transitional measure on technical reserves, the solvency ratio was 167%.

Note: The Group's combined financial statements include all business of the Group as a whole (i.e. the activity of the regional mutuals and of the subsidiaries consolidated within Groupama Assurances Mutuelles). The consolidated accounts of Groupama Assurances Mutuelles include the business of all subsidiaries as well as internal reinsurance (nearly 35% of the premium income of the regional mutuals ceded to Groupama Assurances Mutuelles).

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

ALLIANZ announced three executives appointments

German insurance Group ALLIANZ announced three senior leadership appointments at ALLIANZ DIGITAL Health, ALLIANZ Private Krankenversicherung and Allianz Global Corporate & Specialty SE.


Lloyd's of London announced new members to the Council

Lloyd's of London announced that Albert BENCHIMOL and Victoria CARTER have been appointed respectively External member and Working member of the Lloyd's Council with effect from 1 February 2019. Michael WATSON, currently on the council, has been re-elected as External member.



ALLIANZ announced three executives appointments

German insurance Group ALLIANZ announced three senior leadership appointments at ALLIANZ DIGITAL Health, ALLIANZ Private Krankenversicherung and Allianz Global Corporate & Specialty SE.



Inclusive insurance on the agenda of the second CEE & SEE - Regional Actuarial Insurance Conference in Skopje, Macedonia

Insurance should be accessible to all social classes, regardless of their wealth and income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. The low insurance penetration rates across the region show the need for another approach.


Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.


IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.


See all