GROUPAMA / 2018 Registration document

7 FINANCIAL STATEMENTS

ANNUAL FINANCIAL STATEMENTS AND NOTES

The following table shows theamortisation periods and the percentagesused by typeof real-estateproperty:

Residences and offices before 1945

Residences and offices after 1945

Offices or residential high-rises

Shops

Components

Period Percentage

Period Percentage

Period Percentage

Period Percentage

Building shell

120 years

65% 80 years

65% 50 years

50% 70 years

40%

Frame, beams, columns, floors, walls Wind-andwater-tight facilities

35 years

10% 30 years

10% 30 years

10% 30 years

20%

Roof-terrace Facades Covering

Externalwoodwork Technical facilities

25 years

15% 25 years

15% 20 years

25% 25 years

25%

Lifts Heating/Air conditioning Networks (electrical, plumbing, etc.) Fixtures, finishings

15 years

10% 15 years

10% 15 years

15% 15 years

15%

Int. improvements

Equities and other variable-income securities (c) (including equity securities) Shares and other variable-income securities under Article R. 343-10 of the French Insurance Code are recorded at their purchaseprice excludingaccrued interest. Pursuant to the notice from the EmergencyCommitteeof the CNC dated 15 June 2007, Groupama Assurances Mutuelles chose the accounting option allowing it to incorporate acquisition costs into the cost price of equity interests and to recognise, in its accounting,acceleratedamortisationover 5 years. The realisablevalue recorded at year endis: for listed securities, as a general rule, the last price listed on the ❯ day of the inventory; for unlisted securities, the market value corresponding to the ❯ price that would be obtained for them under normal market conditions andbased on theirutility for the Company; for shares of variable-capital investment companies and shares ❯ of mutual funds, the last purchase price publishedon the day of the inventory. Loans (d) Loans granted to companies belonging to the Group and to other entities are valuedaccording totheir contracts. Reserves 3.2.2 Amortisable securities under Article R. 343-9 (a) of the Insurance Code Any unrealised capital losses resulting from comparing the book value, including the differences between the redemption prices (premium, discount), with the redemptionvalue, do not necessarily carry a reserve for diminution in value. Nevertheless,a reserve for impairment is allocated when there is reason to believe that the debtor will not be able to honour his commitments, either to pay interest or to repay the principal.

The realisable value of SCI or real estate shares is equal to the Groupama AssurancesMutuelles share in the revalued net assets of that company. The valuation is determinedbased on the following: the shareholders’equity of the property or real estate company ❯ as of 31 December; the capital gain or loss on fixed assets. Fixed assets are valued ❯ on the basis of five-year appraisals reviewed annually and carried out byindependent appraisers. At each closing, the valuation portion of the share (or units) is compared with the NBV of that share (or unit). A reserve for impairmentis recorded whereappropriate. Fixed-income securities (b) Bonds and other fixed-income securities under Articles R. 343-9 and R. 343-10of the French InsuranceCode are recorded at their purchase price, net of accrued interest at the time of purchase. The difference between the purchase price and the redemption value is reported in the income statement over the remaining term until the repayment date, usingactuarial methodsin most cases. An amortisation of the premium or discount is recorded up to the time of transfer in the year the fixed income marketable securities are sold. Accrued interest is recognised in the balance sheet under asset accruals. Inflation-linked change in the redemption value of bonds that are indexed onthe general pricelevels is posted to income. The redemption value recorded at the close is the most recent quoted price at the inventory date. For unlisted securities, it is the market value resulting from the price that would be obtained under normal market conditions and depending on their utility to the Company.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES