French storms hurt Groupama

Groupama’s half-year profits collapsed because of its €436m payout over the French storms but business in the UK grew.

Financial highlights

Consolidated results

• Revenues: €8,358m, up 8.4% (4.5% like-for-like)
• Operating profit: €115m, down 49.6%
• Net profit: €166m, down 40.5%

Combined results

• Revenue: €10,983m, up 7.2% (4.3% like-for-like)
• Net profit: €110m, down 66.4%
• Combined ratio (excluding storm damage claims) at 101.2%

In the UK

• Revenues €253m up 0.8%
• Property & Casualty revenues €204m up 6.3% - 29% growth in fleet insurance and 30.3% rise in home insurance
• Individual motor premiums down 3%
• Life & Health premiums €48m down 20% - mainly due to the discontinuation of payment protection insurance, now being in run-off

Jean Azéma, chief executive officer said: “Groupama fully played its part as an insurer when after the early-year storms the group compensated its policyholders up to a total amount of €436m. All the same, the group posted a net profit.

“Our business continued to grow rapidly in the first half of the year” commented. We ended the period with a strong performance in Life & Health insurance and solid foundations for growth in our international subsidiaries.

“We remain confident of fulfilling our ambitions in Europe and will continue in the second half implementing our business investments, while also working to unleash the significant synergies that exist at all levels in our organisation.”