GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

NOTE 9

ASSET AND LIABILITY DERIVATIVE INSTRUMENTS AND SEPARATE

EMBEDDED DERIVATIVES

31.12.2018

France

International

Total

Positive fair value

Negative fair value

Positive fair value

Negative fair value

Positive fair value

Negative fair value

(in millions of euros)

Swaps

114

(598)

114

(598)

Options Foreigncurrency futures

(3)

(3)

Other

TOTAL

114

(601)

114

(601)

31.12.2017

France

International

Total

Positive fair value

Negative fair value

Positive fair value

Negative fair value

Positive fair value

Negative fair value

(in millions of euros)

Swaps

108

(652)

108

(652)

Options

5

(5)

6

(5)

Foreign currency futures

(2)

(2)

Other

TOTAL

113

(659)

113

(659)

7

The following derivative instrumentsare available to theGroup: swaps indexed to a variable rate for protection of the bond ❯ portfolio against anincrease in rates; fixed-rateswaps to hedge variable-rateindexed underlyings; ❯ currency or inflation-indexedswaps. The economic aim of this ❯ strategy is toinvest in fixed-rateeuro bonds; currency riskhedges; ❯ synthetic exposure to the credit risk of private issuers through ❯ option strategies; equity risk hedgesthroughpurchasesof index call options; ❯ hedging for risk ofwidening bond spreads. ❯

This last hedge was the subject of specific documentation for accounting hedgesat fair value underIAS 39. Other derivatives are not recorded as hedging transactions in the sense of IAS 39. As per the principles described in section 3.3 of the financial statements at 31 December 2018, they are recognised atfair value in the balancesheet through income. The counterparty credit risk was taken into account when determining the fair value of the financial instruments, as per IFRS 13, but this had no significant impact on the fair value of the derivative instruments thanks to the “collateralisation”system put in by the Group.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES

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