GROUPAMA / 2019 Universal Registration Document

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

SOVEREIGN 10-YEAR YIELDS, %

5.0

5.0

4.0

4.0

3.0

3.0

2.0

2.0

1.0

1.0

0.0

0.0

-1.0

-1.0

Jan. 2019

Feb. 2019

Mar. 2019

Apr. 2019

May 2019

Jun. 2019

Jul. 2019

Aug. 2019

Sept. 2019

Oct. 2019

Nov. 2019

Dec. 2019

Jan. 2019

Feb. 2019

Mar. 2019

Apr. 2019

May 2019

Jun. 2019

Jul. 2019

Aug. 2019

Sept. 2019

Oct. 2019

Nov. 2019

Dec. 2019

Germany

France

Italy

Spain

Portugal

Japan

UK

US

Changes on credit markets (c)

significantly. However, these contractions remain proportionally weaker than those observed in previous announcements of monetary easing due to a less favourable credit environment (increased corporate levers, less free cash flow, lower margin

In the eurozone, premiums on investment-grade credit remain stable, and the performance of indices is mainly tied to the decrease in yields. High-yield bonds are largely benefiting from a renewed risk appetite with risk premiums that have contracted

levels).

PERFORMANCE OF CREDIT INDICES

10 12 14 16

0 2 4 6 8

-2

Jan. 2019

Feb. 2019

Mar. 2019

Apr. 2019

May 2019

Jun. 2019

Jul. 2019

Aug. 2019

Sept. 2019

Oct. 2019

Nov. 2019

Dec. 2019

Euro IG

Euro HY

US IG

US HY

Bloomberg Barclays coupons reinvested indices

6.1.2

SIGNIFICANT EVENTS OF FISCAL YEAR 2019

Subordinated instruments (b) On 16 September 2019, Groupama issued subordinated instruments with a maturity of 10 years for a total of €500 million with an annual coupon of 2.125%. The new instrument was a big success among institutional investors with an order book oversubscribednearly three times. This operationcontributesto the active managementof Groupama’scapital by taking advantage of marketopportunities. On 27 October 2019, Groupama proceeded with the early redemption of its redeemable subordinatedbonds issued in 2009 for €500 million, at the first redemption date, in accordance with Article 5of the termsand conditions of the bonds.

6.1.2.1 Financial rating (a)

Financial Strength

On 20 June 2019, Fitch Ratings raised the Insurer Financial Strength (IFS) ratings of Groupama Assurances Mutuelles and its subsidiaries to “A” and maintained the outlook associated with these ratingsat “Positive”.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES