GROUPAMA / 2018 Registration document

6 EARNINGS AND FINANCIAL POSITION MANAGEMENT REPORT OF THE BOARD OF DIRECTORS Earned premium reached €2.7066 billion,up 1.4% (+€38.5 million) compared with 2017 (€2,668.1 million).This change came mainly from: inward reinsurance received from the regional mutuals ❯ (€2.0361 billion),up 17.4 million,or +0.9%; contributionsceded to Groupama AssurancesMutuelles by the ❯ Group’s subsidiaries (€528.8 million),an increase of €8.6 million compared with 2017, including +€4.4 million from Amaline and +€1.5 million from GanAssurances; as well as revenue related to other operations (professional ❯ pools, partnerships, etc.), which increased by €12.4 million, mainly from thepartnershipwith La Banque Postale IARD. Expensesfromclaims(excludingclaimsmanagement fees),annuities, and other technicalreservestotalled -€1.6992 billion,a decreaseof +€344.8 million, including: +€131.2 million related to a more favourable current loss ❯ experience.HurricanesIrma and Maria in 2017 had an impact of €324 million; restated for this amount, the current loss experienced deteriorated by -€192.8 milliondue in particular to the weightof serious claims; +€152.0 million from a sharp increase in surpluses on ❯ prior years. The reinsurance and retrocession balance was an expense of -€286.8 million (+€21.7 million in 2017), representing a change of -€308.5 million mainly due to the decrease in claims ceded in reinsurance including retrocessions to the regional mutuals (€153.7 million compared with €433.8 million in 2017). As a reminder, HurricanesIrma and Maria in 2017 generateda recovery of claimsof +€292 million. After taking into account the commissions paid to ceding entities for €479.1 million, the net technical margin before general expenses was an income of +€241.4 million, up €53.4 million comparedwith 2017. Total operating expenses for Groupama Assurances Mutuelles were-€256.4 million,versus -€245.1 millionin 2017, an increaseof €11.4 million, mainly from the cost of integrating Fédération Nationale into GroupamaAssurancesMutuelles. Financial income was positive at +€98.6 million, compared with +€477.4 million in 2017, a decrease of -€378.8 million, mainly from: a decrease in received dividends of -€211.3 million.Due to the ❯ formation of Groupama Holding Filiales et Participationsas part of the conversion of Groupama SA into Groupama Assurances Mutuelles, all dividends from subsidiaries were not paid directly to Groupama Assurances Mutuelles. The one-off decline in dividend flows at Groupama AssurancesMutuelles was partially offset by an exceptional dividend from Groupama Gan Vie;

a decrease in net capital gains from disposals of -€201.3 million ❯ (in 2017, disposalsof Icade, Domainede Nalys, etc.), mitigated by a joint decrease in bond borrowing expenses ❯ (€20.8 million)and subordinated debt (€11.4 million). Extraordinary income amounted to -€15.7 million compared with -€8.8 million in 2017. The “Taxes” item represents income of +€97.4 million, which includes tax savings realised by the Group from the tax consolidation, retained by Groupama Assurances Mutuelles in its capacity ashead of thetax group. The net income for thefiscal year was therefore€165.3 million. Balance sheet 6.1.8.2 The Groupama Assurances Mutuelles balance sheet for 2018 totalled €14.126 billion, up €296.9 million compared with 2017. Group’s equity reached €3,390.1 million at 31 December 2018 (€3,196.3 million at 31 December 2017). It consists of mutual certificates for €3,617.9 million, the conversion difference for -€393 million,and theresultfor thefiscal yearof €165.3 million. Gross technical reserves amounted to €5.957 billion, down -€167.4 million compared with the end of 2017, as 2017 was impacted in particular by claims due to Hurricanes Irma and Maria (not yet settled as of 31 December). For these same reasons, ceded and retroceded technical reserves amounted to €1.1174 billion, also down compared with 2017 (-€146.1 million). Subordinated liabilities amounted to €2.7325 billion (versus €2.2361 billionat the end of 2017). The increaseof +€496.4 million mainly stems from the issue on 24 September 2018 of a redeemable subordinated instrument (TSR) for a nominal amount of €500 millionat a fixed rate of 3.375%for a 10-year term. The main item on the assets side of the Groupama Assurances Mutuelles balance sheet consists of investments, the net book value of which is €12.251 billion, whereas in realisable value, the Groupama Assurances Mutuelles investments (including FFI) amounted to €15.262 billion. Details of invoice payment periods 6.1.8.3 In accordancewith the provisionsof the French CommercialCode, the attached table provides details of the invoice payment periods in relation to their due date. Pursuant to the French insurance federation’s circular of 29 May 2017, the information in the table below does not include transactions related to insurance and reinsurance policies.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES