Groupama said its UK subsidiary had refocused on its core business and increased its risk selectivity in order to return to profitability.
The French insurer issued the statement at the same time as its full year results for 2003.
It said the portfolio had been strongly targeted towards Household and Small Business insurance.
It said this focused approach to underwriting and competitive pressure, its UK non-life business had shown a drop of 8% in premium income at constant exchange rates.
Premium income for 2003 was €827m, compared on a like-for like basis with income of €992 for 2002.
The UK business was the only international sector to show a drop in income over the last 12 months.
On a constant exchange rate basis, total insurance income for the group was €12,883 for the year ending 31 December 2003, a 5.3% increase on a like-for-like basis on the 2002 figure of €12,085.
