GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

The accounting methods for financial contracts with discretionary profit sharing are identical to the methods for insurance policies described above. Financial contracts without discretionary profit sharing are treated using the valuation procedures described in paragraph 3.12.3.

Other technical reserves Actuarial reserves for annuities

The actuarial reserves for annuities represent the present value of the Company’s payables forannuities andannuity expenses. Reserve for increasing risks This reserve is set aside for periodic premium health and disability insurance policies, for which the risk grows with the age of the policyholders. DEFERREDACQUISITIONCOSTS In non-life insurance, acquisition costs related to unearned premiums are deferred and recorded in assets in the balance sheet. Life insurance policies and financial contracts (b) with discretionary profit sharing PREMIUMS Written premiums represent the gross premiums, before reinsurance and tax, net of cancellations, reductions, rebates, of the change in premiums still to be written and of the change in premiums to becancelled. INSURANCEPOLICYSERVICINGEXPENSES Servicing expenses for life insurance policies and financial contracts withdiscretionary profitsharing means: all claims oncethey havebeen paidto the beneficiary; ❯ technical interest and profit sharing that may be included in ❯ those claims; all costs incurred by the insurance company for the ❯ management andpayment ofclaims. They also include the profit sharing and the change in life insurance reserves andother technicalreserves Actuarial reserves represent the difference between the present values of the commitments made by the insurer and the policyholders respectively, taking into account the probability that these commitments will be realised. Actuarial reserves are recognised as liabilities in the balance sheet at their gross underwriting value, before reinsurance and deferred acquisition costs. No reserve for financial contingencies is recorded when the actuarial reserves have been funded on the basis of discount rates at most equal to the forecast yield rates, prudently estimated, of the assetsassigned torepresent them. Profit-sharing reserve The profit-sharing reserve consists of a reserve for profit sharing payable andpotentiallyas a reserve for deferredprofit sharing. TECHNICALLIABILITIESRELATEDTOLIFE INSURANCE POLICIESANDFINANCIALCONTRACTSWITHDISCRETIONARY PROFITSHARING Actuarial reserves

Insurancepolicies under IFRS4 3.12.2 Non-life insurance policies (a) PREMIUMS

Written premiums represent the gross premiums, before reinsurance and tax, net of cancellations, reductions, rebates, of the change in premiums still to be written and of the change in premiums to becancelled. Premiums written and adjusted for the change in reserves for unearned premiums (which are defined below) constitute earned premiums. INSURANCEPOLICYSERVICINGEXPENSES Non-life insurance policy servicing expenses mainly include benefits and expenses paid and the change in reserves for claims and other technicalreserves. Benefits and expenses paid relate to the claims settled net of claims receivable collected for the fiscal year and the periodic payment of annuities. They also include the fees and commissions for themanagement of claims andpayment for services. TECHNICALLIABILITIESRELATEDTONON-LIFEINSURANCE POLICIES Reserves for unearned premiums The technical reserves for unearned premiums represent the portion of premiumsfor the period between the inventory date and the next contract payment date. They are calculated on a pro rata basis. Reserves for unexpired risks The reserves for unexpired risks are intended to cover the portion of the cost of claims and the related management fees that exceeds the fraction of deferred premiums net of deferred acquisitioncosts. Outstanding claims reserves The outstanding claims reserves represent the estimate, net of claims receivable, of the cost of all unpaid claims at the end of the fiscal year, both declared and undeclared. They include a charge for management fees that is determined on the basis of actual expense rates. For construction risks, in addition to the outstanding claims reserves (declared or not yet declared), separate claims reserves that have not yet appeared are also funded for the ten-year civil liability cover and the ten-year cover against structural damage. Reserves are assessed on the basis of the type of specific risks covered, particularlyagriculturaland climate risks and risks that are highly seasonal innature.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES