GROUPAMA / 2018 Registration document

5 RISK FACTORS AND RISK MANAGEMENT RISK MANAGEMENT AND SENSITIVITY ANALYSES

5.2.4

LIQUIDITY RISK

Nature of exposure to liquidity risk 5.2.4.1 The overall liquidity risk is analysed using the asset/liability approach, which defines the cash requirement to be held as an asset based on the liquidity requirements imposed by liabilities, using: technical cashflow projectionsin a central scenario; ❯ sensitivity scenarios on technical assumptions (production, ❯ claims ratio).

benefits payable and interest rates, the Group is able to meet its commitments in terms of both assets to dispose of and any realisations ofcapital losses. At the end of 2018, the liquidity risk was greatly reduced by the size of unrealisedcapital gains presentin the portfolio. Financial investment portfolio 5.2.4.3 by maturity The profile of the annual maturitiesof the bond portfolios is listed in Note 7.8.2 of theannual financialstatements.

Risk management 5.2.4.2

Stress tests are regularly conducted on both assets and liabilities in order to ensure that in the event of a simultaneous increase in

Liabilities related to insurance policies and liabilities related to financial contracts 5.2.4.4 by maturity The profile ofannual maturitiesof the liabilities related to insurance policies is the following:

31.12.2018

31.12.2017

< 1 year 1 to 5 years

> 5 years

Total

< 1 year 1 to 5 years

> 5 years

Total

(in millions of euros)

Non-life technical reserves

4,370

3,496

5,047

12,913

4,367

3,619

4,820

12,805

Life technicalreserves- insurance policies excluding unit-linked items Underwriting liabilities relating to financialcontractswith discretionary profit sharing excluding unit-linked items Underwriting liabilities relating to financialcontractswithout discretionary profit sharing excluding unit-linked items

1,073

5,785

26,954

33,812

1,146

6,272

26,070

33,487

365

2,895

9,277

12,537

378

3,136

10,103

13,616

1

1

1

1

Reserve for deferred profit-sharing liability

3,756

4

44

3,804

4,954

6

54

5,014

TOTAL UNDERWRITING INSURANCE LIABILITIES AND LIABILITIES FOR FINANCIAL CONTRACTS

9,564

12,180

41,323

63,066

10,844

13,032

41,048

64,925

Most technical liabilities correspondingto financial contracts with and without discretionary profit sharing may be redeemed at any time. The table above provides aneconomic overview ofthe liquidation oftechnical insurance liabilities.

Financing debt by maturity 5.2.4.5 The principalfeatures of financialdebt, as wellas its breakdownby maturity,are provided inNote 24 herein – Financial Debt.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES