Activity Report 2020 - Groupe Mutuel

ACTIVITY REPORT

2020

Insured. Right now.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Editorial Key figures Groupe Mutuel in 2020 Groupe Mutuel values Support Proactivity Responsibility Governance

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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“The Hill We Climb”. This was the title of the poem read by the young poet Amanda Gorman at the inauguration ceremony of the new President of the United States on 20 January 2021. This title perfectly reflects our state of mind as we look back over the 12 past troubled months. The COVID-19 pandemic is everywhere. It has disrupted not only our lives but also the Swiss health system.

The crisis we have been experiencing since March 2020 has affected us all considerably.

It has affected our private lives, our working lives, our hobbies, our dreams... In 2020, everything was brought to a standstill.

The pandemic we have been going through for over a year has turned everything upside down. Fear and uncertainty have taken over. The consequences are only just beginning to be felt and will stay with us for many months, if not years. The health, economic and social crisis has shaken many of our convictions. And yet. Thanks to resilience, courage and our capacity to adapt and, sometimes at the cost of overwhelming sacrifices, the system has held strong.

WE have stood firm.

The Swiss health system has also resisted. Hospitals have stood firm thanks to the outstanding work carried out by exemplary medical staff. Our social insurance systems have held strong thanks to solid foundations. However, we are paying the price and will continue to do so, because entire sections of the Swiss economy have been hit hard. Above all, physical and mental health have never been so badly affected. Especially among young people and the elderly. Everyone in fact.

And yet, we must continue to climb that hill and find innovative solutions to remain loyal to our spirit of solidarity and our origins. In order to remain close to you, our customers. To achieve this, Groupe Mutuel has strengthened its internal sales force to improve its services, particularly in German-speaking Switzerland. We have also expanded our teams to better support you.

What have we done to minimise the consequences of this unprecedented crisis? We have made every effort to provide uninterrupted, high-quality, fast and efficient services to our customers. We have protected the health of our employees who represent the foundation of the company’s future development.

These two principles have driven our approach during the crisis.

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We repaid 101 million Swiss francs to close to 80% of our insured persons. We donated 1 million Swiss francs to SMEs thanks to the DireQt campaign supported by QoQa. And we donated 1 million Swiss francs to the “Chaîne du Bonheur” to help those in need. We temporarily suspended the deadlines for all our commercial rents in order to help SMEs, and even offered up to two months’ rent to a number of craftsmen, shopkeepers and restaurant owners who were experiencing financial difficulties. We also put in place a number of measures to help those who are currently facing hardship, such as by waiving reminder fees. Or offering payment facilities. We have been proactive, responsive and supportive. We have placed human values at the heart of our business, our transformation and our strategy.

In these troubled times, the financial results for 2020 are therefore somewhat anecdotal, but they remain balanced in the health sector (AOS/OKP). And on the rise for supplemental insurance. Business results have increased significantly in the corporate sector, where we are once again able to strengthen our market shares.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Thanks to our financial strength, we are able to ensure stability for the entire system and look to the future with confidence.

Our financial reserves, in the same way as the equity of any other company, are essential but not excessive. They amount to approximately three months’ worth of invoices sent in by our customers. Furthermore, we have decided to reduce our financial reserves by 50 million Swiss francs and redistribute this amount to our policyholders. The intention to reduce our financial reserves, still to be approved by the Federal Office of Public Health (FOPH), is in line with the repayment of CHF 101 million that took place in 2020. Financial reserves serve to deal with unexpected events and the period we are currently experiencing has shown us how important this is. It is not part of our strategy to increase reserves unnecessarily. Beyond any political tensions, we are facing up to our responsibilities and taking concrete action in the interest of our policyholders.

Groupe Mutuel is not only a health insurer. We aim to be your overall health partner and your retirement benefits’ specialist, during your

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

entire medical journey, whether you are an individual person or a company. We aim to support you in the best possible way, for example by offering new digital services to make your life easier and to provide you with prevention advice. This is done by placing human beings, patients, insured persons and customers at the centre of our concerns, at all times. We aim to put these values at the heart of our business in order to strengthen our corporate culture. We hope that you will enjoy reading this activity report, which highlights our corporate culture and our values.

Let us continue this progression together.

Let us climb the hill together.

Karin Perraudin President

Thomas Boyer Chief Executive Officer

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Key figures 2020 Groupe Mutuel Holding SA

50 mio Repayment to policyholders planned in 2022, depending on the status of financial reserves as at 31.12.2020.

(101 million Swiss francs repaid in 2020)

2,547

5,273,000 Collected premiums / Turnover (consolidated figures in CHF thousand) (5,420,102 in 2019)

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Number of employees as at 31.12 (including apprentices)

5 service centres

(2,317 in 2019)

(5 in 2019)

36

51%

1,320,265

Annual result (consolidated figures in CHF million)

Equity ratio in % of net insurance premiums

Number of private customers as at 01.01 of the following year

(485 in 2019)

(49% in 2019)

(1,329,402 in 2019)

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

34 Number of agencies (34 in 2019)

39% 61% Percentage men/women (39% / 61% in 2019)

25,500

5.3%

Number of corporate customers as at 01.01 of the following year

AOS/OKP administrative costs

(24,000 in 2019)

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

(4.1% in 2019)

4,792,000 2,665,000 Insurance benefits (consolidated figures in CHF thousand)

Equity (consolidated figures in CHF thousand)

(4,861,067 in 2019)

(2,629,000 in 2019)

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Groupe Mutuel in 2020

101 mio 50 mio 25,500

+230

repaid to our policyholders in autumn 2020.

number of newly hired employees in 2020.

Since health costs were lower than expected in 2019, Groupe Mutuel repaid CHF 101 million to over 780,000 policyholders in 2020. In 2021 and in line with what has been undertaken previously, we have decided to reallocate CHF 50 million of financial reserves to our policyholders, in a form yet to be defined and subject to approval by the FOPH. Why a refund once again?

Because there is no need to accumulate excess financial reserves; they must be returned to our policyholders.

Reserves belong to our policyholders. We said that we would do it and we are doing it. We will continue to do so if our financial situation makes it possible.

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the impact of COVID-19 direct costs on compulsory health insurance (AOS/ OKP).

According to several recent studies and estimates, direct costs in Switzerland related to COVID-19 amount to hundreds of millions of francs for all health insurers. For Groupe Mutuel, an additional CHF 50 million can be put down to the consequences of the pandemic (mainly costs of hospital stays and tests covered by health insurers until June 2020).

At the same time, however, health costs did not increase as much as expected last year due to successive partial lockdowns (fewer elective operations, less appointments with specialists).

According to our estimates, the average cost per insured person increased by less than 1% in 2020 compared to an average of 3% in recent years.

corporate clients (+1,500).

Significant increase in the corporate sector.

In 2020, 1,500 new companies signed up to Groupe Mutuel, bringing the total number of corporate clients to 25,500 as of 1 January 2021.

Despite the pandemic, Groupe Mutuel continued to recruit employees throughout the year, with over 230 new positions created in 2020.

This significant effort reflects our commitment to strengthen all sectors of the company, in particular internal sales and the Contact Center.

In terms of loss of earnings insurance in the event of illness, Groupe Mutuel is now ranked 4th in Switzerland, ahead of most private insurers, which is an excellent achievement. In 2020, our overall turnover in the corporate sector increased by close to CHF 40 million.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

300,000

564 mio

12.5 days

number of GMapp users.

lower costs: thanks to invoice verification and digitisation to help contain costs.

refunding benefits without delay is added value for our customers.

The number of customers using GMnet as at 31 December 2020 was 300,000. It increased by 100,000 in 2020. 82% of our customers set up the mobile app, while the others used only GMnet.

Number of invoices sent using GMnet: 264,000 Number of invoices sent using GMapp: 472,000 Number of changes made using GMnet: 140,000 Number of changes made using GMapp: 107,000 New features were added in 2020, including: – New GMnet lay-out – Possibility of accessing GMapp via several other mobile devices (e.g. for couples, both persons can access the family accounts) – Insurance card in digital format – Possibility to receive invoices in paper format.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

In 2020, the average time to refund invoices (from the time of receipt of the invoice to sending out the refund document) was 12.5 days compared to 14.3 days in 2019.

In 2020, the total amount of medical invoices received by Groupe Mutuel exceeded CHF 5.28 billion for all types of treatment. Verification and corrections made using new technology, and thanks to the expertise of our employees, have made it possible to reduce expenditure by 10.4%, that is over CHF 564.6 million, which represents a relief on the same amount of premiums.

In terms of the average time to process invoices, we are maintaining our objective to refund benefits within 16 days.

In 2020, the most significant savings resulted for the first time from “other outpatient care” (CHF 140.7 million) while outpatient hospital care and doctors (CHF 115.9 million) came second.

The next largest savings were made in inpatient hospital care and EMS care homes (CHF 106.6 million) and drugs (CHF 32.4 million).

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Corporate culture, the foundation of success Groupe Mutuel is constantly reinventing itself. It is refining its strategic objectives, reviewing its internal processes and does not simply rest on past achievements. In this context, Groupe Mutuel redefined its strategic priorities in 2019. At the same time, the company conducted a review of its new corporate culture and values.

Among the new strategic priorities, the “Culture and Values” project was prominent.

This project started in January 2020 and is far from completed. The corporate culture and its associated values are decisive in involving employees and having them commit to the company’s vision. The values of a company represent its DNA, its identity.

These are solid foundations for strengthening the cohesion and loyalty of the entire staff.

Groupe Mutuel wants to create a strong and uniform corporate culture with which employees can identify themselves. This will allow us to effectively support Groupe Mutuel’s strategy and objectives, including placing customer satisfaction in the foreground.

This is directly in line with Groupe Mutuel’s aim to become a reference partner in terms of health and retirement benefits for both private and corporate clients.

In other words, it is not only the “what” but also the “why” and “how” of daily business.

Values are the meaning you choose to give ” to your life. “

Jean-Paul Sartre

A hands-on approach It is essential that company values are shared by employees and management alike. This mindset should go without saying and in no way be imposed. This is why a hands-on approach was conducted initially: employees at all levels and from all departments were invited to take part in a number of workshops as ambassadors. Substantial internal communication was implemented to inform the entire company of the stages of the project. Employees were extremely committed and spent many hours exchanging their views.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

2020 Beginning: First ambassadors’ workshop Summer: Identification of three values September: Presentation of values to all employees

2021

2022

Ongoing implementation with ambassadors

I wish to contribute to this change process and am pleased to work with colleagues from different departments.

(Anouck Droux, Sion)

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Ultimately, over 80 employees and 40 managers became “culture & values” ambassadors.

1,100 All in all, over 1,100 employees participated in the value definition stage, also through a major survey.

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I am really grateful that my employer is challenging its corporate culture. This goes to show that it is prepared to change.

(Sandra Burnier, Martigny)

To this “bottom up” approach was added the “top down” vision of the Board and Executive Board. A debate on semantics took place as part of a hands-on approach and resulted in the following three values:

Support

Proactivity

We are a company in which support, cooperation, trust, respect and solidarity are anchored in the actions and considerations of all employees.

We are an agile company that shows initiative and anticipates the needs of colleagues, customers and the market.

Responsibility We act with integrity, transparency and fairness and fully assume our responsibilities towards our colleagues, customers and partners.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Being able to participate in such an important project is incredible because a company’s values are at the heart of its identity.

(Nadia Hofer, Zurich)

A long-term process

These three values were presented during a number of meetings between the management and employees. Rather than a long speech by the ceo, ambassadors explained the values to their colleagues in a dynamic and in-house video.

More than ever, these are values defined by everyone for everyone.

This approach helps to strengthen the identification of employees with the company.

This fundamental cultural change was greatly challenged by the COVID-19 pandemic. Values such as support and responsibility were even more important in such a difficult period, where being close to each other and communicating with colleagues are essential to ensure efficient collaboration and good interpersonal relationships. Indeed, a vast majority of employees worked from home for almost five months in 2020.

However, the health crisis highlighted Groupe Mutuel’s ability to change rapidly from an operational point of view, and demonstrated that teams were able to react quickly in an emergency. The “Culture & Values” project was able to continue online despite the lockdown measures.

The implementation is not yet complete. It will extend to 2021 and 2022 in order to bring the whole company to the appropriate cultural maturity, in a progressive, sustained and agile way.

Implementing the values within the company has involved, and will involve, many employees of their own will and at all levels, as ambassadors of change.

In this way, Groupe Mutuel can look forward to the future with peace of mind since it is able to count on supportive, proactive and responsible employees.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

SUPPORT 2020 was marked by the COVID-19 crisis and its consequences on health, the economy and society. Many people face partial unemployment or have lost their jobs.

Others have ceased business or suffer from isolation due to the measures imposed.

In these difficult times, Groupe Mutuel has acted in line with its values: it has showed support and solidarity towards its employees, its policyholders, people in difficulty, tenants of the Group’s commercial property and small and medium-sized businesses.

In addition, Fondation Groupe Mutuel, which was set up specifically to support health-related projects, upheld its social involvement in 2020.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Donations to the “chaine du bonheur” for people in need In order to support people who experienced a difficult financial situation last year, Fondation Groupe Mutuel donated 1 million Swiss francs to the Chaîne du Bonheur.

This Swiss platform for collecting donations launched an operation at the beginning of the pandemic and, thanks to the funds raised, is helping more than 100 national organisations that provide assistance to those most affected by the crisis.

Maintaining contact with our policyholders

“It is our duty to show solidarity and help those most in need during this unprecedented period”, said Karin Perraudin, President of Fondation Groupe Mutuel.

The Foundation supplements welfare benefits granted to individuals and families who were already experiencing financial hardship before the crisis and who have lost their income.

Moreover, it supports homeless people in need of protection, as well as elderly or disabled people living in isolation.

To help cope with the uncertainty of the beginning of the pandemic, our insurance and pension advisers stayed in touch with our elderly customers during the spring in order to provide support. Between April and June, advisers enquired about the health of more than 17,000 insured persons aged 65 and over and provided them with valuable information, including on the postponement of postal payments and the opening dates of our agencies. In addition, 2,500 clients who hold several insurance policies with Groupe Mutuel received a fruit and vegetable basket at their home.

This considerate gesture was extremely appreciated by our insured persons: “This is a very generous and touching gesture towards your loyal policyholders during this difficult lockdown period. Thank you very much.” (thank you letter from a policyholder having received a fruit and vegetable basket)

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Handling payment difficulties in a proactive manner Because of the coronavirus pandemic, some people were unable to pay their bills on time.

In anticipation of this, Groupe Mutuel suspended its reminder letters from mid-March onwards and renewed this decision in April.

Support to the local economy When shops closed due to the first lockdown in 2020, the company QoQa created the DireQt platform to support small businesses, together with Groupe Mutuel and La Vaudoise Assurances.

Local businesses were therefore able to offer their services online and customers had the opportunity to purchase vouchers or make cash donations. For each order or donation, La Vaudoise Assurances and Groupe Mutuel paid the retailer 20% more than the purchase value and the buyer received a 10% discount on each voucher purchased. Fondation Groupe Mutuel supported the project by donating CHF 1 million.

“During this critical period for many SMEs, the Swiss economy must come together and show solidarity.

Thanks to this project, in partnership with QoQa, small local companies received tangible support”, said Thomas Boyer, CEO of Groupe Mutuel.

Debt collection procedures were suspended during two months. Customers whose reminders had been suspended were informed in advance of the initiative and encouraged to contact us in order to agree on a payment agreement. 110,000 letters were sent out to this end.

More than 3,000 policyholders accepted our offer and contacted us to this effect. We reviewed their situation and agreed an individual payment timetable with them.

The usual processing fee for deferred payment was waived between April and June.

The partnership was a great success: the funds made available were allocated in a very short time. 34,000 people bought a voucher or made a financial contribution for the benefit of 5,200 companies.

In total, the local economy received CHF 9 million between 27 March and 11 May 2020.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Payment of commercial rents As the lessor of many properties, Groupe Mutuel also has a responsibility to local businesses.

Last year, when the situation was difficult, particularly in spring and in December, we showed solidarity and support by paying part of the rents of our business tenants. This resulted in a loss of revenue of CHF 96,179 for Groupe Mutuel.

In concrete terms, during the first lockdown, we waived one month’s rent for all rents below CHF 3,500. In the second half of the year, depending on the type of business and the financial losses caused by administrative measures, one or two months’ rent were not claimed.

A total of 26 small and medium-sized enterprises, such as restaurants and hairdressers, received help.

As the pandemic and the tough financial situation is expected to continue in 2021, we have waived one or two months’ rent from February 2021 onwards, depending on the type of business.

The solidarity demonstrated last year will continue

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

SOLIDARITY ON A DAILY BASIS Groupe Mutuel does not only show solidarity with the local community when times are hard.

Last year, it was more than essential to reach out to our policyholders, as well as to the Swiss population and local businesses.

In the future, we want to continue to work for the benefit of the community by showing support, solidarity and assistance, as well as respect for different opinions, both internally and externally.

In 2020, Groupe Mutuel continued its supportive action, including through the “Coeur à Coeur” operation sponsored by RTS and the Chaîne du Bonheur, as well as the “Boule à Zéro” event.

Therefore, Fondation Groupe Mutuel was able to donate CHF 25,000 to “Coeur à Coeur” in 2020.

This amount was made up of a main grant of CHF 18,000, of donations collected in Groupe Mutuel agencies, as well as of an amount collected as part of an in-house campaign organised by Groupe Mutuel employees. The “Coeur à Coeur” fundraising campaign supports children who are the victims of domestic violence in Switzerland and helps raise public awareness of this important issue.

The “Boule à Zéro” event and the comic strip of the same name have provided recreational moments since 2015 for children and teenagers in hospital.

The drawings are intended to be both light-hearted and serious and help young patients to relate to their illness in an entertaining way.

At the end of 2020, thanks to the support of Groupe Mutuel, 500 comic books were distributed to children in hospital.

In addition, employees were able to buy the comics at a preferential rate and the proceeds were donated to the fundraising event. More than 300 comics were purchased and many other books were donated to children in hospital.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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PROACTIVITY HIGH-QUALITY SERVICES THANKS TO A NEW DISTRIBUTION STRATEGY Being proactive means laying down today the foundations for the future. Groupe Mutuel has been planning its new distribution strategy for some time now since the insurance industry is due to undergo a number of changes as from 1 January 2021. The “branch agreement” as well as new customer needs will require a radical transformation of distribution activities.

The Swiss insurer initiated the change early on by implementing a number of measures.

The most important step was to strengthen internal distribution and reduce reliance on external brokers. Thanks to the development of its own distribution network, with around 200 new full-time positions, we are able to be even closer to our customers and to provide better quality services throughout Switzerland.

For example, we have significantly increased our visibility in German-speaking Switzerland by hiring external staff and entering into a partnership. Around 150 former employees of Maklerzentrum Schweiz AG joined Groupe Mutuel on 1 January 2021.

The majority of those employees now work in the distribution regions as insurance and pension advisers. These experienced specialists are a valuable addition to the existing Customers & Markets team and bring with them new skills. Therefore, the groundwork has been laid for further improving both customer advice and market success.

Groupe Mutuel also entered into a partnership with Neosana AG with the acquisition of a majority stake of 51% of the company’s share capital. Neosana AG employs more than 100 people and offers comprehensive advisory services for all types of insurance to customers throughout Switzerland. As a comprehensive insurance company offering insurance solutions for private and corporate clients in the areas of health and retirement benefits, Groupe Mutuel has made a perfect start to 2021 thanks to new specialists and a strong partnership.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Office, teleworking or working from another location: our employees have expressed the need for more flexible working arrangements.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

NEW AGENCIES FOR GREATER PROXIMITY TO CUSTOMERS Groupe Mutuel offers help where it is most needed, in a proactive manner. By creating new general agencies and opening new regional agencies, we are closer to our customers than ever before.

In practical terms, this means that 13 general agencies throughout Switzerland, as well as an extensive agency network with the opening of 11 regional agencies, are now available to our customers. In addition, Groupe Mutuel has introduced a new concept for the layout within the agencies. Customer lounges, a separate area for private conversations and a coffee bar ensure a positive customer experience.

Whether visiting agencies or making contact digitally: today’s customers are hybrid. This makes interaction between agency staff and Contact Center staff all the more important.

Physical agencies are actively supported by the Contact Centers, which are the first point of contact for advising customers by phone. Also in the context of its new distribution strategy, Groupe Mutuel has introduced a development plan for Contact Centre staff.

This makes the work in these centres more attractive and helps develop the skills of employees. The result is improved coordination of customer needs with the agencies and customised advice. This allows us to pay even more attention to our customers.

EMPLOYEES AS DIGITAL NOMADS Being proactive also means speeding up a project during a crisis. This is exactly what happened with the “Nomad” project during the coronavirus pandemic.

Groupe Mutuel launched “Nomad” at the beginning of 2020, a project that aimed to make the workplace more flexible by November 2020. The coronavirus crisis and the Federal Council’s recommendation for working from home last spring gave a considerable boost to the project. It was implemented nine months ahead of schedule and, in record time, more than 90% of employees were working from home and providing comprehensive customer services.

Video conferencing, artificial intelligence and decentralisation have become standard practice. In terms of logistics, the challenge was huge. Throughout Switzerland and within a few weeks, Groupe Mutuel’s IT specialists equipped close to 2,000 employees with laptops and monitors to allow them to work remotely.

The Contact Center was completely decentralised and employees were equipped with the appropriate tools to answer and handle calls from home. In this way, we were able to meet our top priority which is to take care of our employees’ health. However, work was not limited to material aspects. With unrelenting commitment, the HR department staff proactively supported their colleagues. Thanks to tutorials, online training courses on work organisation or health programmes (remote fitness and yoga classes, webinars on sleep, stress, nutrition, etc.), our HR specialists took care of their home-based colleagues’ well-being.

What will happen after the coronavirus crisis?

For Groupe Mutuel, teleworking is not just an emergency solution. After the crisis, all employees whose job makes it possible for them to do so will be able to continue working from home on a part-time basis or for a maximum of two days a week. This will allow us to provide employees with the requested flexibility and, at the same time, strengthen our corporate culture.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Ready for the digital future Thanks to its culture of innovation, Groupe Mutuel is not only open to change, it is also proactively shaping the digital transition.

We are committed to supporting our insured persons in all health related matters throughout their life.

Within a strong innovative approach, we have combined health promotion and digitisation and have launched three applications for the general public.

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REMOTE DIAGNOSIS WITH MYHEALTHCHECK

DIABETES PREVENTION WITH MYDIABCHECK

The MyHealthCheck application is able to reduce the workload of medical facilities.

The application makes it possible for the user to self-diagnose all benign conditions remotely (24 hours a day, 7 days a week).

Unnecessary visits to the doctor can be avoided, thus relieving the burden on the health system. The application comes with a blood test kit. A single drop of blood on the strip indicates whether it is necessary to make an appointment with a doctor.

If needed, users can obtain medication online immediately. MyHealthCheck helps to better understand the most common diseases and to take appropriate action.

MyDiabCheck is also based on individual coaching via video phone consultations.

The application is aimed at people who are at risk of developing type 2 diabetes or who already suffer from the condition.

Lack of exercise and obesity, which are two risk factors, are on the increase.

In Switzerland, almost half a million people are already affected by this chronic metabolic disease. MyDiabCheck provides professional support to help people live healthier lives and prevent diabetes.

INDIVIDUAL PSYCHOLOGICAL COACHING WITH MYND The web-based application “mynd” provides psychological support to better cope with everyday challenges. Swiss coaches, trained in online counselling and cognitive behavioural therapy, offer professional help using video phone. mynd is available to anyone who wants to better deal with stress or anxiety, improve communication within the family or simply talk to someone. Here, the focus is on prevention.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

THE CRISIS WAS MANAGED EXTREMELY WELL THANKS TO OUR EMPLOYEES

Prevention thanks to skilled ambassadors

A crisis can only be managed well if events are dealt with proactively. To do so, a crisis unit and an infrastructure need to be in place before a crisis occurs. Because it had prepared itself proactively, Groupe Mutuel was able to activate its crisis unit very quickly when the coronavirus crisis broke out. From the very beginning of the pandemic, the task force had two objectives: to ensure employees’ health and to guarantee the best possible service to customers.

Many things at the same time: both use their talent to promote wellness and prevention, and both are Groupe Mutuel ambassadors. As part of our prevention action, Kariem Hussein, 400m hurdler, and Marie Robert, GaultMillau’s “Cook of the Year 2019”, have actively supported us.

What do a famous chef and top athlete have in common?

The measures implemented were rapidly successful: employee productivity was well above expectations and, after one week, more than 90% of employees were working from home, where the risks of contagion are lowest. When physical distance is suddenly created, it is essential to develop “digital proximity”. The crisis team met several times a week, or even daily depending on the situation, to provide employees with up-to-date information on the crisis. It proactively and continuously provided information on the next steps and measures, set up several hotlines for questions about the pandemic and the CEO ensured that he was always in touch with employees by broadcasting video messages. Launching a counselling support programme and fitness and health tutorials also helped employees to feel well supported during the crisis..

This was done in particular by using our social media channels. With the headline: proactivity and prevention go hand in hand.

We are proud of our staff and their commitment.

Thanks to our employees, who worked tirelessly and with great determination, perseverance and, above all, proactivity, we can say that we were able to handle the crisis successfully. Our employees’ commitment never wavered and customers always received the information requested and their refunds in good time.

This goes to show that Groupe Mutuel knows how to remain efficient, even in times of crisis.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

In short videos on Instagram, YouTube, Facebook and other platforms, Kariem Hussein demonstrated how to perform an effective sports training at home, how important it is to warm up beforehand or how to train for running while avoiding accidents. Kariem gave valuable prevention advice, also on a psychological level. For example, he explained how to train mental strength, reduce stress and ensure a good work-life balance. His posts generated many “likes” and positive comments from our community.

Marie Robert, the famous chef, introduced us to the world of healthy eating. For her, it is important to associate food and pleasure. Marie prepared some of her easy-to-make creations for the Groupe Mutuel social media community. During the coronavirus crisis and the lockdown in particular, it was important to find comfort and experience positive emotions. Such as with cooking, for example.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

RESPONSIBILITY To ensure that its policyholders were also able to take advantage of more stable health costs in 2019, Groupe Mutuel redistributed 101 million Swiss francs to more than 780,000 AOS/OKP policyholders last year.

Many policyholders were quick to send us their warm, touching and spontaneous “thank you” notes. Whether a card, a handwritten letter, an email, a drawing or a photo, formats and subjects were many and varied. They included colourful flowers, beautiful landscapes, autumnal prints, natural or animal designs, and snowy atmospheres.

Groupe mutuel repays chf 101 million to its policyholders

The messages received were encouraging: “It’s Christmas in November”, “I am and will remain a loyal customer”, “I was able to repair my car”, “Thank you for this unexpected support”, “I have the best insurance”, and also: “Thank you so much. We would like to take this opportunity to tell you how pleasant your staff is on the phone and how they take the time to explain things clearly.”

These messages were heart-warming and reminded our employees that a satisfied customer is the best and most motivating reward.

While health insurers are required to meet high legal standards and be able to pay their financial commitments whatever happens, Groupe Mutuel also believes that any excess financial reserves should benefit policyholders and families, whose financial burden increases each year.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Groupe mutuel safeguards its employees’ health and makes sure to stay in touch with customers In 2020, the year of the COVID-19 pandemic, the challenges faced by Groupe Mutuel were unprecedented – whether health-related, logistical, technical or organisational. Whether it was about protecting employees, ensuring the company’s security or keeping operations running, there was no lack of priorities.

The purpose being to ensure that our customer relationships continue to run as smoothly as possible.

Since the beginning of the pandemic in February 2020, a crisis unit has monitored and assessed the situation on a daily basis and taken the appropriate measures, always in line with the rules issued by the cantonal and federal authorities.

The hygiene measures recommended by the FOPH were implemented from the very beginning of the pandemic, whether relating to the provision of hydro-alcoholic hand gel and masks throughout the company, the installation of Plexiglas and protective screens in

our agencies, or compliance with strict protective measures (hand washing, social distancing, etc.).

All staff eligible for home office were also quickly provided with computer equipment to be able to connect to their workplace from home. Thanks to these measures, Groupe Mutuel has been able to maintain its operations and interactions with its customers. At the same time, it has shown itself to be an attractive and responsible employer.

STUDIES TO IMPROVE THE HEALTH SYSTEM The publication in 2020 of a study of Groupe Mutuel on the use of benzodiazepine sleeping pills by the elderly in Switzerland received wide and positive media coverage.

According to this study, 20% of people aged 65 and over made use of benzodiazepines in 2017, and overconsumption may affect 16% of seniors. Carried out in partnership with the General Medicine and Public Health University Centre in Lausanne, this survey is part of Groupe Mutuel’s overall commitment to take part in scientific studies aimed at improving the healthcare system. In November 2020, a second Groupe Mutuel study was published, this time on the minimum number of cases in hospitals. The minimum number of cases defines the frequency with which an operation should be performed in a hospital in order to guarantee high quality standards. The study showed that there is a true potential for improvement in this respect, as in 2018, 46% of hospitals had not reached the minimum number of cases. Therefore, it would be appropriate to review hospital planning, which falls under the responsibility of cantons in Switzerland.

Ensuring customer satisfaction remains the first and foremost concern of Groupe Mutuel. In order to support and serve our policyholders in the best possible way, and to be useful as simply, quickly and efficiently as possible.

There is only one way to do this: to continually listen to customer needs and to constantly improve our services.

OUR PRIORITY: TO ENSURE CUSTOMER SATISFACTION Significant resources were allocated in 2020, in particular to the Contact Center, in order to respond even better to customer expectations and ensure policyholders were able to access Groupe Mutuel through all channels of customer interaction, including during COVID-19 and when employees are working from home. At the same time, a major focus was placed on

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

BALANCING WORK AND PRIVATE LIFE Balancing work and private life is a priority for Groupe Mutuel, especially when employees work from home.

EMPLOYEE HEALTH ON A DAY-TO-DAY BASIS Groupe Mutuel is committed to its employees’ health and well-being. As from the spring of 2020, when most employees started working from home, it’s priority is to maintain strong ties between employees and the company.

To this end, tutorials were posted on the company intranet to provide advice and support on good home office practices. A little later, in the autumn, as part of the “Attractive working environment” initiative, Groupe Mutuel launched the BOOST programme to promote work-life balance and the quality of working life for its employees, both on a physical and mental level, an approach that is all the more important during this tricky period of pandemic.

Sports (fitness, yoga, tai chi, Pilates, muscle strengthening, etc.), nutritional advice, cooking classes, webinars and web capsules on health topics and good practices: BOOST aims to improve our employees’ well-being and health. Similarly, free consultations were offered on the newly launched applications mynd and MyDiabCheck, as well as free access, in December 2020, to the application MyHealthCheck.

Finally, monthly surveys were conducted among employees by an external company to guarantee that answers remain anonymous. These surveys make it possible to monitor changes in employee mindsets as closely as possible and to identify areas for improvement.

enhancing our employees’ skills, including by introducing a development plan focused on training, skills and customer retention. Systematic surveys were also carried out to measure customer satisfaction. Thanks to these surveys, we were able to detect potential areas for improvement rapidly.

Finally, in July 2020, the strategic project GM360° was launched with the aim to implement a new customer engagement platform (CRM). This tool is designed to generate transparency in customer records, facilitate the daily work of employees and improve services to policyholders.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Groupe Mutuel has also developed an innovative paid leave policy. Following the introduction of the new law granting two weeks’ paid paternity leave to working fathers, Groupe Mutuel confirmed its desire to strengthen its position as an attractive employer by offering a total of three weeks’ fully-paid leave from 1 January 2021.

FORUM PREVOYANCE SURVEY Originally planned on 3 September in Pully (VD), Forum Prévoyance, proposed by Groupe Mutuel in collaboration with Le Temps and PME Magazine, did not take place in the end because of the pandemic.

However, live-chats and online forums were held between 3 and 17 September and were widely attended. For the occasion, Groupe Mutuel and Le Temps commissioned a survey on retirement savings’ plans, the results of which were widely reported in the media.

According to the survey, Swiss people want to have more freedom in choosing their pension plan. At the same time, 74% of citizens are opposed to raising the retirement age and a majority are also against lowering the conversion rate.

As for the monitoring of quality, it obviously also plays a role in the digitisation of customer experience.

Colombus Consulting conducted a study on a panel of some 20 major insurance companies, and Groupe Mutuel’s GMapp application came out top of its category. Third in the overall result (and first health insurer in this ranking), Groupe Mutuel also took second place in terms of social networks. It should be noted that the GMapp application had more than 300,000 users at the end of December 2020.

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Governance Groupe Mutuel

Groupe Mutuel is organised in the form of a holding company. The companies that make up the holding company are active in various insurance fields, such as health, life, patrimony or corporate insurance.

Groupe Mutuel Holding SA is wholly owned by Fondation Groupe Mutuel, a non-profit foundation. The Foundation supports the well-being of the general public in Switzerland, as well as health promotion and prevention measures, by carrying out a wide range of activities.

The subsidiary company Groupe Mutuel Services SA has made its administrative infrastructure and employees available to the other companies of the Group. This pooling of resources allows for the development of synergies that benefit all of the companies and, in the end, customers. Services are clearly differentiated between the various insurance business segments, in particular between compulsory health insurance (LAMal/KVG) and supplemental insurance (LCA/VVG), as well as between the different companies. Services are invoiced to member companies according to allocation keys in line with the industry’s good practices. The services allocated are audited by an independent third party so that each company’s contribution is in line with the actual use of resources.

Groupe Mutuel Services SA may also offer its services to third parties. This is particularly the case for health insurance and occupational pension benefits.

Structure of Groupe Mutuel

Groupe Mutuel Holding SA OWNER

Basic insurance

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Avenir Assurance Maladie SA

Philos Assurance Maladie SA

Mutuel Assurance Maladie SA

Easy Sana Assurance Maladie SA

SUPRA-1846 SA

AMB Assurances SA

Private insurance

Groupe Mutuel Assurances GMA SA

Groupe Mutuel Services SA

Groupe Mutuel Vie GMV SA

Mutuel Assurances SA

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Overview of the subsidiaries of Groupe Mutuel Holding SA and their activities Groupe Mutuel Holding SA owns six health insurance companies that offer compulsory health insurance: Mutuel Assurance Maladie SA, Philos Assurance Maladie SA, Avenir Assurance Maladie SA, Easy Sana Assurance Maladie SA, SUPRA-1846 SA and AMB Assurances SA. The private insurers that offer supplemental health insurance and patrimony insurance are Groupe Mutuel Assurances GMA SA and Mutuel Assurances SA. For its part, Groupe Mutuel Vie GMV SA offers life insurance products. Some insurance companies also offer accident insurance (LAA/UVG) and daily allowance in the event of illness pursuant to LAMal/KVG and LCA/VVG.

Mutuel Assurance Maladie SA

n

n

Philos Assurance Maladie SA

n

n

Avenir Assurance Maladie SA

n

n

Easy Sana Assurance Maladie SA

n

n

SUPRA-1846 SA

n

n

AMB Assurances SA

n

n

Groupe Mutuel Assurances GMA SA

n

n

n

n

Mutuel Assurances SA

n

n

n

n

Groupe Mutuel Vie GMV SA

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Life insurance

Daily allowance

Accident insurance pursuant to LAA/UVG

Patrimony insurance (LCA/VVG)

LCA/VVG supplemental insurance

LAMal/KVG basic health insurance

Groupe Mutuel Services SA makes available its administrative infrastructure and employees to the other companies of the group.

n

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The Board of Groupe Mutuel Holding SA

The Board is responsible for the strategic management of Groupe Mutuel Holding SA. It consists of a five to nine members elected for four years. It defines the company’s position and strategy, exercises highlevel management and supervision and sets the organisational structure and principles of the internal control system.

It is supported in its work by three specialised committees: the Audit and Risk Committee, the Innovation and Digital Transformation Committee and the Remuneration and Appointments Committee.

The committees inform the Board of their activities on a regular basis.

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The Audit and Risk Committee is chaired

by Jean-Blaise Conne (photo above) and comprises two other members of the Board.

Its main task is to verify the integrity of financial information, compliance with legislation, internal regulations and guidelines, supervision of the internal control system and audit processes. It organises and assesses the performance, certification and independence of internal and external auditors.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

... and its specialised committees

The Remuneration and Appointments Committee is chaired by Marc-André Ballestraz (photo above) and comprises two other members of the Board.

It submits proposals to the Board regarding the remuneration of Board and Executive Board members. It is also responsible for the appointment and replacement of Board and Executive Board members. It sets the individual objectives of the Executive Board and assesses them.

It reviews the remuneration system on a regular basis.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

The Innovation and Digital Transformation Committee is chaired

by Jürg E. Tschanz (photo above). It also comprises three other members of the Board.

It defines and submits to the Board the strategy for digital transformation and innovation, taking into account technology, political and market environment changes, as well as the medium and long-term business development strategies of Groupe Mutuel. In addition, it defines and puts forward the strategy for using new information and communication technology for the benefit of the company. Finally, it reviews the partnership or acquisition strategy to be put in place to achieve the objectives set, and reviews proposals and recommendations to the Board in relation to strategic partnerships.

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Board members of Groupe Mutuel Holding SA for 2020

Karin Perraudin – President 2 Master’s degree in Business (HEC), certified chartered accountant. Board Director for various companies. President of Valais/Wallis Promotion.

Roland Marcel Eberle – Vice-President 3 Agricultural Engineer. Board Director for various companies. Member of the Council of States from 2011 to 2019.

Fabio Naselli Feo – Secretary 2 Entrepreneur Board Director for various companies.

Marc-André Ballestraz – Member 1, 3 Master’s degree in Commercial and Industrial Sciences. Certified chartered accountant. Member of the General Management of Fidag SA accounting firm.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Charles Relecom – Member since 18 June 2020 2 Master’s degree in Actuarial Sciences and Mathematics.

Jean-Blaise Conne – Member 1 Certified chartered accountant. Board Director for various companies.

Urs Schwaller – Member 1, 3 Doctor of Law. Lawyer. President of the Board of La Poste.

Jürg E. Tschanz – Member 2 MBA in Finance and Strategic Management. Entrepreneur, co-founder and President of Planitswiss.

Member of the Audit and Risk Committee

1

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Member of the Innovation and Digital Transformation Committee

2

Member of the Remuneration and Appointments Committee

3

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Executive Board The operational management of Groupe Mutuel and its member companies is under the responsibility of the Executive Board that comprised eight members in 2020. It implements the strategies approved by the Board and applies risk management principles. Furthermore, it monitors legal and regulatory developments and ensures compliance with the latter.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Code of conduct Groupe Mutuel Holding SA has a Code of Conduct, adopted by its executive bodies, in order to provide a framework for its activities. The Code of Conduct clearly sets out the ethical and professional values held by Groupe Mutuel, as well as behaviour guidelines for its staff.

The executive bodies and employees of Groupe Mutuel Holding SA or of the member companies must all comply with the Code of Conduct, without exception.

This Code of Conduct is supported by a specialised and independent external whistleblowing platform, which enables employees to report any actions that do not comply with the Code of Conduct or the laws in force.

The aim is to protect both the employees themselves and the company by maintaining sound governance within Groupe Mutuel.

Internal control system The Board adopted guidelines and principles for risk management and control. It requested that the Executive Board implement the latter. The risk management process and internal control system help to identify and assess potential risks and to take appropriate action.

Implementing risk management and the internal control system follows the principle of three lines of defence. The first line of defence is provided by line management and business units. The second line of defence comprises the monitoring functions, including compliance, risk management and the actuarial department. Internal Audit forms the third line of defence.

The monitoring functions and Internal Audit have unrestricted access to information and carry out their activities independently.

Sustainable and responsible investments The assets of the companies managed by Groupe Mutuel Holding (GMH) are essentially invested for the long term; they require secure investments that are able to generate competitive and stable returns over time.

Responsible investments meet these requirements. They serve a double purpose: one that ensures efficient capital management and another, on a societal level, that funds a sustainable and fair economy. These investments must go hand in hand with financial profitability requirements.

In 2020, our values and convictions with regard to responsible investments were set out in an ESG (Environment, Social and Governance) charter. With this charter, GMH is committed to its clients to making safe investments, with a view to obtaining competitive and stable returns over the long term through a responsible investment philosophy. The guarantee of efficient capital management and the societal commitment to financing a more sustainable and fair economy go hand in hand with the financial profitability requirements of the companies under management. A transition to a low-carbon and environmentally friendly economy is supported.

The implementation of the investment philosophy is based on the consideration of ESG criteria combining financial performance and sustainability, on the application of criteria for the exclusion of controversial sectors, on the search for innovative solutions that actively contribute to sustainable development objectives and on the exercise of voting rights in order to assume our responsibility as shareholders. In addition to these criteria, the investments were also assessed for compliance with Switzerland’s commitment to climate.

The investment portfolio was reviewed by Conser SA in 2020 and found to be in line with the high expectations of the ESG Charter. This goes to show that the strategy for selecting securities has long been carried out in a way that is respectful of our planet’s resources, with an approach that puts people and business ethics first.

The Board of GMH is convinced that this investment philosophy based on responsibility and transparency will enhance the sustainability of returns, as well as the support and trust of the clients of the Group companies.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

Members of the Executive Board in 2020 Thomas Boyer – Chief Executive Officer Master’s degree in Business (HEC).

Thomas J. Grichting – Services Doctor of Law. Lawyer.

Florian Raemy – Finance EPFL Engineer. Master in Business Administration HEC. Sophie Revaz – Individual Benefits Master’s degree in Law. Lawyer.

Paul Rabaglia – Transformation & Business Development Master’s degree in Business (HEC).

Vincent Claivaz – Corporate & Occupational Benefits Diploma of Senior Technician in Catering and Tourism Master’s degree in Hospital Management.

Philippe Buthey – Technology Computer Scientist Diploma ES. Pierre-Luc Marilley – Customers & Markets Master’s degree in Economics.

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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COMPLIANCE FUNCTION The Compliance function is responsible for ensuring compliance with legislation and with the internal and external regulations of Groupe Mutuel, as well as of the companies having transferred the compliance function to the latter.

RISK MANAGEMENT FUNCTION The Risk Management function is responsible for integrated risk and control management, including the independent assessment of risks and control as well as the coordination of the internal control system.

INTERNAL AUDIT The Internal Audit supports the Board in its oversight function. It regularly informs the Board of its findings and suggests improvements.

REMUNERATION OF BOARD AND EXECUTIVE BOARD MEMBERS The remuneration of the Board of Groupe Mutuel Holding SA is governed by regulations adopted by the bodies of the companies belonging to the holding company. It consists of a set amount and the reimbursement of representation or travel expenses. No variable bonus is granted. For all member companies of the holding company, the regulations limit the annual remuneration to CHF 25,000 for the President and to CHF 24,000 for other board members. The total annual remuneration of the members of the Board is also capped, regardless of the number of Boards on which those members serve within the companies of Groupe Mutuel Holding. The ceiling is CHF 200,000 for the President and CHF 80,000 for other board members. To these amounts are added CHF 10,000 for participation in a committee, but at most CHF 20,000.

Upon proposal of the Remuneration and Appointments Committee, the Board of Groupe Mutuel Holding SA sets the remuneration of the Executive Board members. The guidelines for the remuneration of Executive Board members are specified in a set of regulations issued by the Board. This remuneration consists of a set amount and a variable allowance depending on the previous year’s results.

In 2020, changes were brought to the variable remuneration system.

The variable portion depends on the extent to which objectives were met in the following categories: 1. Financial and operational results of the various Group entities and objectives related to strategic projects; 2. Individual quantitative and qualitative objectives.

Objectives are set for one year and no deferred remuneration is granted. Any fees relating to professional mandates on behalf of Groupe Mutuel within other companies are entirely paid back to the company.

Total cash payments (set and variable) to members of the Executive Board in 2020 amounted to CHF 2,922,105. Employer pension contributions amounted to a total of CHF 347,040. The highest remuneration was that of the CEO, with cash payments of CHF 680,555 and employer pension contributions of CHF 86,400.

In 2020, the Executive Board was fully constituted and stable over the whole year, unlike in 2019 when former members were still present.

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

ORGANISATIONAL CHART OF GROUPE MUTUEL AS AT 31.12.2020

Board of Groupe Mutuel Holding SA PRESIDENT

VICE-PRESIDENT

SECRETARY

Karin Perraudin

Roland Marcel Eberle

Fabio Naselli Feo

MEMBER

MEMBER

MEMBER

MEMBER

MEMBER

Marc-André Ballestraz

Jean-Blaise Conne

Charles Relecom

Urs Schwaller

Jürg E. Tschanz

Executive Board Thomas Boyer Chief Executive Officer

Individual Benefits

Finance

Transformation & Business Development

Technology

Services

Corporate & Occupational Benefits

Customers & Markets

Sophie Revaz

Florian Raemy

Paul Rabaglia

Philippe Buthey

Thomas J. Grichting

Vincent Claivaz

Pierre-Luc Marilley

Director

Director

Director

Director

Director

Director

Director

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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ACTIVITY REPORT 2020 OF GROUPE MUTUEL

IMPRESSUM

Editing & Layout Communications & Brand Department

Photo credit Olivier Maire Valentin Flauraud Louis Dasselborne Adobe Stock

Illustrations Christian Moreillon

Printing Imprimerie Messeiller SA - Neuchâtel

Publisher Groupe Mutuel Rue des Cèdres 5 - P.O. Box - CH-1919 Martigny

Email presse@groupemutuel.ch

ACTIVITY REPORT 2020 OF GROUPE MUTUEL

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Groupe Mutuel Association d’assureurs Santé ® Vie ® Patrimoine ® Entreprise ®

Groupe Mutuel Association d’assureurs Gesundheit ® Leben ® Vermögen ® Unternehmen ®

Groupe Mutuel Association d’assureurs Salute ® Vita ® Patrimonio ® Impresa ®

Groupe Mutuel Association d’assureurs Health ® Life ® Patrimony ® Corporate ® Groupe Mutuel Rue des Cèdres 5 - P.O. Box - CH-1919 Martigny Avenir Assurance Maladie SA – Easy Sana Assurance Maladie SA – Mutuel Assurance Maladie SA – Philos Assurance Maladie SA – SUPRA-1846 SA – AMB Assurances SA Groupe Mutuel Assurances GMA SA – Mutuel Assurances SA – Groupe Mutuel Vie GMV SA Foundations managed by Groupe Mutuel: Groupe Mutuel Prévoyance-GMP – Mutuelle Neuchâteloise Assurance Maladie