Groupama announced on Friday April 19 a net profit of 510 million euros in 2023, closing a year hampered by the significant burden of climate disasters in France in the second half.
The results of this year appear to be very satisfactory, commented the general director of Groupama, Thierry Martel, at a press conference, however noting a huge contrast between the first and second half of the year.
The insurer’s net profit in France amounted to 26 million euros between July and December compared to 546 million euros between January and June. At the group level, net profit remains up sharply compared to 2022, (13 million euros comparable accounting standards and following the taking into account of significant provisions in response to inflation), for a figure of business of 17 billion euros (+6.9%).
Almost 1 billion euros in climate losses
The burden of climatic claims turned out to be much higher at the end of 2023 due to floods in the north of France and especially storm Ciaran which hit Brittany where Groupama is very established, the insurer said. Net of reassurance, the cost of climate claims approached one billion euros for the group last year, compared to 770 million euros in 2022.
SGAM Macif: climate events impact 2023 net profit
The insurer was nevertheless able to rely on its international subsidiaries, particularly in Romania and Hungary. It also recorded a loss of 110 million euros outside France linked to the sale of its subsidiary in Turkey.
Community Insurance Discussions
Asked about the insurance of local authorities, a market in which Groupama is present, the manager underlined the common points between the two reports recently launched on the subject, one presented on March 28 by the Senate and the other carried by the government, still in progress.
Protect your companion thanks to our animal insurance comparator
The only point on which there will probably be divergence (…) is the question of covering the risk of the packs, estimated Thierry Martel. Reassurers (insurers of insurers, Editor’s note) have de facto completely withdrawn from this risk, he continued, the only solution today being to transfer a large part of the risk onto the communities themselves, if it there was no pooling of risk organized by public authorities.
The cost of last summer’s riots, triggered by the death of Nahel, killed in June by a police officer, amounts to nearly 400 million euros for Groupama. Groupama also announced Thursday at the end of the day the departure of the president of Groupama Assurance Mutuelles Franois Schmitt, less than a year after his election by the board of directors, replaced by Laurent Poupart.
The insurer claims 12 million members and customers as well as 31,000 employees around the world.
Reproduction forbidden.