GROUPAMA / 2018 Registration document

EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS

In the 4 th  quarter, earnings per share expectations for 2019 and the emergence of fears of a reversal of the growth cycle forced performance down into negative territory in acontext of veryhigh volatility associated withUS monetary tightening.

Changes oninterest rate markets (b) Over the year, with the exception of Italy, European yields experiencedslight contractionswith low volatility. The 10-year OAT yield ended the year at 0.71%, down 7 basis pointscomparedwith the end of 2017.

Italian yields, on the other hand, diverged sharply when the coalition government between the Five Star Movement and the Northern League was formed at the end of May, followed by budget announcements.The yields retraced part of this gap at the end of the year in response to the agreement between the Italian governmentand the European Commission,and the 10-year yield ended at 2.74%.

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Jan. 2018

Jan. 2019

Apr. 2018

Jul. 2018

Oct. 2018

6

Germany

France

Italy

Spain

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Jan. 2018

Jan.

Apr. 2018

Jul. 2018

Oct. 2018

2019

Japan

UK

US

Outside the eurozone, the US 10-year yield reached a high of 3.2% before falling significantly at the end of the year due to rising risk aversion and expectations of slower-than-expectedmonetary tightening by the Fed. UK yields were influenced by the uncertainty about conditions forthe UK’s exitfrom the US,while the Bank of Englandbegan verygradual monetarytightening. In Japan,the pursuit of unconventionalmonetary policies kept long-term yields at 0%.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES