GROUPAMA / 2018 Registration document

7 FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

TECHNICAL LIABILITIES RELATED TO INSURANCE POLICIES NOTE 25

Note 25.1

Technical liabilities related to insurance policies – by operating segment

31.12.2018

31.12.2017

France International

Total

France International

Total

(in millions of euros)

Gross technical reinsurance r serves Life insurance reserves

31,787

759

32,546

31,723

800

32,523

Outstanding claimsreserves

622

67

690

629

68

697

Reserves forprofit sharing

552

3

555

240

4

244

Other technical reserves

3

18

21

2

21

24

Total Life insurance

32,965

847 676

33,812

32,594

893 650

33,487

Reserves forunearned premiums

723

1,399

706

1,355

Outstanding claimsreserves

6,517

2,079

8,596

6,400

2,135

8,535

Other technical reserves

2,883

35

2,918

2,879

36

2,915

Total Non-life insurance

10,122

2,790

12,913

9,985

2,821

12,805

Life insurance reservesforunit-linkedpolicies

8,480

999

9,479

8,708

1,040

9,748

TOTAL

51,567

4,636

56,203

51,287

4,754

56,041

LONG-TERMCARE The total amount of reserves relating to long-term care risk stood at €384 million at 31 December 2018 (including €273 million for the reserve for increasingrisks). The actuarial reserves for annuities in service and outstanding claims reserve, covering outstanding claims, were determined based on experience data from the long-term care portfolio – law on long-term care – and a technical rate of 0.62% (75% TME). Reserves for increasing risks, covering future claims (likelypresent value of the commitmentsof the insurer and the insured) were determinedon the basis of experience data from the long-term care portfolio – law on death of able-bodied people, laws on impact differentiated by product, and law on long-term care – and a technical rate of 0.90%, aiming to reflect the current financial environment. Each year, the regional mutual carries out a sufficiency test of the long-term care reserves, includingany anticipationsof tariff revisions.

The adequacy tests carried out on liabilities as at 31 December 2018 were found to be satisfactory and did not result in the recognition ofany additionaltechnical expense. MEASUREMENTOF RESERVESFORNON-REPORTEDANDLATE CLAIMS(IBNR) The outstanding claims reserve totalled €8,596 million at 31 December2018. These reserves are valued on the basis of an actuarial approach, defined in accordance with a group methodology. By means of valuations of final costs based on payment triangles or costs (by risk segment), this method permits a determination of the sufficient amount of outstanding claims reserve. This valuation incorporates the valuation of delinquent claims andexpected recoveries into its approach.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES