GROUPAMA / 2018 Registration document

6 EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS

Consolidated balance sheet 6.1.4.7 At 31 December 2018, the Groupama balance sheet total was €88.5 billion, compared with €90.6 billion in 2017,a decline of-2.4%.

By asset allocation, unrealised capital gains are broken down into +€5.0 billion on bonds, +€0.5 billion on equities, and +€1.8 billion on property. Unrealised capital gains on financial assets (excluding property) totalled +€5.5 billion, with €1.0 billion attributable to the Group (after profit sharing and taxes) versus +€1.3 billionat 31 December 2017. These amounts are recorded in the financial statements in the revaluation reserve. Unrealised property gains attributable to the Group (net of tax and deferred profit sharing) totalled +€0.5 billion compared with +€0.6 billion at 31 December 2017. The Group elected to account for investment and operating property according to the amortised cost method; therefore, unrealised property gains were not recorded in the accounts. The equity share of total investments in terms of market value was 4.6% at 31 December 2018 versus 5.0% at 31 December 2017 accordingto an economic view. Group's equity (d) At 31 December 2018, Groupama’s consolidated group’s equity remainedstable comparedwith the previous period and amounted to €5.3 billion.

Goodwill (a) Goodwill remainedstable at €1.9 millionat 31 December 2018.

Other intangibleassets (b) Other intangible assets totalling €235 millionat 31 December2018 (versus €226 million in 2017) are composed primarily of amortisable portfolio securities (€63 million) and computer software. The decrease in this item is particularly related to amortisation forthe period. Investments (including unit-linked (c) investments) Insurance investmentstotalled €78.5 billionin 2018 comparedwith €80.3 billion in 2017,down-2.3%. The Group’s unrealised capital gains (including property) decreased -€2.0 billion to +€7.3 billion (compared with +€9.3 billion at the previous close), mainly because of the decrease in unrealised capitalgains on bonds.

This change can besummarised asfollows:

(in millions of euros)

GROUP’S EQUITY AT 2018 OPENING

5,257

Change in revaluation reserve: fair valueof AFS assets

(1,643)

Change in revaluation reserve: shadow accounting

1,271

Change in revaluation reserve: deferred tax

125

Foreignexchangeadjustment

(38)

Other

(17)

Income (Loss)

319

GROUP’S EQUITY AS OF31 DECEMBER 2018

5,274

Subordinated liabilities, financing andother (e) debts Subordinated liabilities and external debt totalled €1.6 billion at 31 December2018 versus €1.1 billion at 31 December2017. This increase wasdue to subordinated liabilities. At 31 December 2018, subordinated debt increased by +€497 million compared with 31 December 2017 and totalled €1.633 billion in connection with the issue of subordinated instruments realised in September 2018. The Group no longer has any external debt (excluding subordinated debt)since the endof 2015.

Technicalreserves (f) Gross technical reserves (including deferred profit sharing) totalled €72.8 billionat 31 December2018, comparedwith €74.9 billionat 31 December 2017. Contingent liabilities (g) Reserves for contingencies and charges totalled €384 million in 2018, compared with €463 million in 2017, and were primarily made up of pension commitments under IAS 19.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES

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