GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

The amountsaccepted for these differentransactions breakdown as follows:

31.12.2018

31.12.2017

(in millions of euros)

Non-life earned premiums

2,036

2,019

Insurance policy servicing expenses

(1,370)

(1,523)

Acquisition costs

(148) (148)

(151) (151)

Administrative costs

At 31 December 2018, the overall retrocession result was €13 million.

(in millions of euros)

31.12.2018

31.12.2017

Expenses on inward retrocession

(113)

(109)

Income on inward retrocession

126

85

In summary This entire presentation canbe summed up asfollows:

Groupama Gan Vie is authorised to conduct on-site audits of documents and conditions under which the marketing and management functionsare exercised. In personal life insurance, the distribution and management of the regional mutuals are remuneratedon the basis of three factors: for all products, a mark-up on premiums and, for certain products, a fee on the outstanding amount (savings and pension products), and a fee based on the regional policy income (protection products) designed to involve the regional mutual in the quality of its management. Groupama Gan Vie posted premium income under this personal life insurance agreement of €1050.2 million in 2018. The fees earned by the regional mutuals amounted to €115.8 million. In group insurance, the regional mutuals’ distribution and management are remunerated on the basis of several factors: mark-up on premiums, mark-up on outstanding amounts for certain products, fees based on regional net income on all death risks and fees on development agreements. Groupama Gan Vie posted premium income under this group insurance agreement of €51.3 million in 2018. The fees earned by the regionalmutuals amounted to €6.6 million. 2.3 The relationships between Orange Bank, 35%-held indirectly by Groupama Assurances Mutuelles, and the regional mutuals have been governed since the bank was founded in late 2002/early 2003 by identical bilateral agreements that break down into two components: A general marketing and management agreement (a) The general agreement lays down the respective roles of the bank and the regionalmutual. It is licensed byOrange Bank to market its offer under a temporary banking license defining a limited number of banking operations that the mutual is permitted to perform. The operations concerned are preparation or support for banking transactions, given that Orange Bank is the sole party authorised to carry out bankingoperations in the strict sense. Orange Bank

the reinsurance agreement is a coherent and balanced whole ❯ that must be assessed in terms of its intended purpose and overall effects and not by isolating any one of its components from this context; in any event, this approach of placing the agreement in perspective is not opposed to a segmented, technical attitude to risks and to the reinsurance terms associated withthem (see above); the internal insurance terms currently applicableare the result of ❯ amendmentsmade over time to make this system fully effective in terms of its economic purpose of offsetting and controlling risks; the ongoing pursuit of this purpose has resulted in involving ❯ Groupama Assurances Mutuelles in the insurance business of the Groupama regional mutuals in a balanced and controlled way. The premium income from reinsurance earned by Groupama Assurances Mutuelles with the regional mutuals amounted to a total of €2,036 million in2018. 2.2 Relations between Groupama Gan Vie and the regional mutuals are governed by an identical bilateral agreement for each of the regional mutuals. The purpose of this agreement is the distributionand management by the regional mutuals of personal life insurance and group insurance policies from Groupama Gan Vie. With regard to distribution,GroupamaGan Vie sets the marketing, subscription and pricing rules for the products as well as the contract documents and the communicationsmedia. The regional mutuals areresponsible for salesrelationships withcustomers. At the management level, the regional mutuals must provide all administrative functions, including medical management, within certain limits including amounts, and in accordance with the conditions defined byGroupamaGan Vie. The regional mutuals are required to comply with a number of ethical rules, particularly governing the treatment of health cases and the prevention of money laundering. GroupamaGan Vie

7

279

REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES