NATIXIS -2020 Universal Registration Document

OVERVIEW OF THE FISCAL YEAR Management report at December 31, 2020

Insurance 4.2.2.3

(in millions of euros)

2019 pro forma Change 2020 vs. 2019

2020

Net revenues

901

846

6.5% 2.5%

Banking operating expenses Gross operating income Provision for credit losses Net Operating income Gains or losses on other assets Change in the value of goodwill Pre-tax profit Associates

(491)

(478)

410

368

11.6%

410 (17)

368

11.6%

10

393

378

4.2%

Cost/income ratio Equity (Average)

54.5%

56.5%

924

926

ROE

29.3%

27.9%

Net revenues for Insurance businesses totaled €901 million, up 6% compared with 2019, resulting from: 11% net revenue growth in personal insurance, which benefited V from the 6% increase in outstandings but was impacted by the public health crisis and the downturn in the financial markets (mitigated by existing equity hedges). The growth in net revenues also attributable to the resistance of the Personal Protection Insurance and Payment Protection Insurance, with a drop in the claims expense for ADE (in connection with the update of final accounts for the previous year) and the deterioration in Protection insurance claims due to work cessation guarantees; the 3% increase in property& casualty insurancewith a decrease in V the claims expense for individual customer products on account of the lockdown, especially in the auto segment. The combined ratio totaled 89.2%, an improvement on 2019 (89.6%); the one-off contribution to the insurance solidarity Fund set up by V the French government, which had an impact of €13.9 million. Operating expenses stood at €491 million, up 2.5%. This increase reflected the implementation of the ambitions under the New Dimension plan: to support business growth and implementationof strategic projects, and in particular #INNOVE2020. Gross operating income rose 11.6% to €410 million. Income of associates was affected by: the defaultin paymentin Lebanon:a loss to the valueof €23.1 million V was recognized from the bank-insurer ADIR (34%-owned); a BPCE IARD contribution of €4.9 million, in comparison to V €6.7 million in 2019, mainly due to the deterioration of claims expenses for operating loss guarantees for restaurant owners following the public health crisis. At 29.3%, the division’s ROE improved by 1.4 points compared to 2019.

The year was marked by the COVID-19 pandemic with the consequence of a significant slowdown in commercialactivity during the first lockdown, between March and May. With €8.1 billion in direct business premiums, life insurance inflows fell 19% compared to 2019. Premiums on unit-linked assets totaled €2.9 billion and made up 35.4% of total gross inflows, down 5 points compared to 2019, and 1 point higher than the market average at end-December. Gross inflows invested in the “Euro” fund decreased by 25% to €5.3 billion. At €1,053 million, premiums on personal protection insurance and payment protection insurance (ADE) continued to climb (+6%). Premiumson personal protection insurancegrew 10%, mostly driven by the Caisse d’Epargnenetwork (17%) which now represents39% of activity. Payment Protection Insurance was up 5%, with no material impact from the Bourquin amendment of the public health crisis. In Non-Life Insurance, the portfoliogrew5% (excludingNBFI) to reach 6.4 millioncontracts.Gross sales decreasedfell 2% due to the health crisis and the impact of lockdowns;they did howeverbenefit from the success of the stimulus plan put in place in May 2020 and the deploymentof the #INNOVE2020programacross the two networks. At €1,654 million, earned premiums gained 5% year-on-year with identical business growth in the Caisse d’Epargne and Banque Populaire networks (+5% and +5% respectively). Growth was driven by the core offering, with auto insurance up +5%, multi-risk home insurance up +7%, Pers. acc./Multi-riskacc. insurance up 5%, in line with growth in the portfolio and updated tariffs.

4

237

www.natixis.com

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020