GROUPAMA / 2018 Registration document

GLOSSARY

GLOSSARY

Actuarial reserves ■ Sums which the insurer must record as liabilities on its balance sheet, corresponding to its commitments to policyholders. On a like-for-like basis ■ On a like-for-like basis means that the information related to the period of the relevant fiscal year are adjusted using the exchange rate applicable for the same period of the previous fiscal year (constant exchange rate), eliminatingthe income from acquisitions, disposals and changes in scope of consolidation(constant scope) and cancelling changes in accounting methods (constant methodology) inone of thetwo periods compared. Combinedratio ■ The combined ratio of Groupama Assurances Mutuelles is the ratio: of the total claims expense net of reinsurance and operating ❯ costs; to the premiums earnednet of reinsurance. ❯ Duration ■ The duration of a bond correspondsto the average duration of the funds generated by it weighted by their current values. On this order of magnitude, the value of the bond can be understood in terms of its sensitivity to conversions in the yield curve by extension, any flow sequence can be calculated, particularly those related to insuranceliabilities based onprojections of suchflows. Economicoperatingprofit ■ Groupama Assurances Mutuelles’ economic operating profit correspondsto the net profit, including any capital gains or losses on the share going to the shareholder, variations in fair value and one-timeactivities, net ofcorporate income tax. Group insurance ■ A categoryof insuranceallowinga legal entity called an underwriter to underwrite a policy with an insurance company for the purpose of havinga group of persons join who are unitedby similar ties. Guaranteed rates policy ■ Policy under which the insurer promises under contract to pay interest on the capital built up at a certain rate.

Individualinsurance ■ A category of life and health insurance under which an individual can take out an insurance policy (death, life) with an insurance company. Life and health insurance ■ Policies covering a personal risk. These policies include life and death insurance but also all risks affecting the physical integrity of the person due to accident or illness (disability, long-term care, healthcarereimbursement costs, etc.). Long-termcarepolicy ■ Policy designed to cover the risk of the loss of independence by the elderly. Multi-vehicle policy ■ Insurance policy whose redemption value or the service paid by the insurer is denominated in euros and unit-linked assets The policyholder (or member) generally has a choice of currency in which he wishes to invest his premiums (in euros or in unit-linked assets) and may, dependingon the possibilitiesprovidedunder the policy, requestthat the initial choicebe changed (arbitrage). Policy in euros ■ Policy under which the redemptionvalue or the service paid by the insurer are denominated in euros. Profit-sharing ■ In life insurance and capitalisation, insurance companies include their policy-holdersin their earningsby redistributingthem. Run-off ■ Discontinued operations for which the premium income consists exclusively of periodic premiums associated with old subscriptions. Statutory solvency margin ■ Minimum risk coverage related to the insurance business required by oversightagenciesto protect the interestsof policy-holders. Unit-linked policy ■ Insurance policy for which the redemption value and the service paid by the insurer are expressed not in euros but in another unit of value, generally in the number of shares or mutual fund units. Thus the exchange value in euros of the insurer’s commitment depends on changes in the securities comprising the mutual fund on the financial markets.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES