GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

NOTE 5

INVESTMENT PROPERTY EXCLUDING UNIT-LINKED INVESTMENTS

31.12.2018

31.12.2017

Property

SCI units

Total

Property

SCI units

Total

(in millions of euros)

Opening grossvalue

1,284

52

1,336

1,225

56

1,281

Acquisitions

28

2

30

46

4

49

Change in scope of consolidation Subsequent expenditure Assetscapitalised in the year Transfer from/to unit-linkedproperty Transfer from/to operating property

(4)

(4)

170

170

172

172

30

30

Foreignexchangeadjustments Outwardreinsurance

(321) (153)

(3)

(324) (153)

(184)

(8)

(192)

Other

Closing gross value

1,009

51

1,060

1,284

52

1,336

Openingcumulativeamortisation & impairment

(186)

(186)

(193)

(193)

Increase

(19)

(19)

(22)

(22)

Change in scope of consolidation

4

4

Transfer from/to unit-linkedproperty Transfer from/to operating property

(11)

(11)

Decrease

36

36

35

35

Other

1

1

Closing cumulative amortisation & impairment

(169)

(169)

(186)

(186)

7

Openingcumulative long-term impairment

(19)

(19)

(20)

(20)

Long-term impairment recognised Change in scope of consolidation Transfer from/toperating property Long-term impairment write-backs

9

9

2

2

Closing cumulative long-term impairment

(9)

(10)

(19)

(19)

Openingnetvalue

1,080

52

1,132

1,012

56

1,068

Closing netvalue

831

51

882

1,080

52

1,132

Closing fair value of investment property

2,327

136

2,463

2,974

121

3,095

UNREALISED CAPITALGAINS/LOSSES

1,496

85

1,581

1,894

69

1,964

The realisation of unrealised capital gains on property representing life insurance commitments would give rise to rights in favour of policy beneficiariesas well as taxation. Unrealised gains accruing to the Group, including property operating activities (see Note 6), amounted to €507 million as at 31 December 2018 (net of profit sharing and tax), compared with €610 millionas at 31 December 2017. In accordancewith IFRS 5, a building in Paris has been reclassified to “held-for-sale assets” for€150 million. The major restructurings currently underway in various Paris buildings explain thechange in theassets capitalised inthe year.

Sales of propertyduring the fiscal year include in particularsales by vacant lots of the Group’s residential assets as well as the sale of properties inthe Paris region. As per the fair value hierarchy established in IFRS 13, the fair value of investment property is ranked as Level 2 for €2,393 millionand Level 3 for €70 million. The Level 2 investment property comprises mainly property located in Paris, or the Greater Paris region, whose fair value is basedon observabledata.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES