GROUPAMA / 2019 Universal Registration Document

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

The impairment of goodwill is related to a goodwill impairment expense pertaining to the Italian subsidiaryfor €102 millionand to an impairmentof the equity value of Groupama’sstake in Orange Bank for€81 million. Consolidated balance sheet 6.1.4.7 At 31 December 2019, Groupama’s consolidated balance sheet totalled €93.6 billion, compared with €88.5 billion in 2018, an increase of +5.7%. Goodwill (a) Goodwill amounted to €1.8 billion as of 31 December 2019 compared with €1.9 billion in 2018, following the impairment of goodwill ofthe Italiansubsidiary. Other intangibleassets totalling€245 millionat 31 December2019 ( versus €235 million in 2018) are composed primarily of amortisable portfolio securities (€47 million) and computer software.The change in this item is related to softwareactivations and amortisationfor the period.

The Group’sunrealisedcapital gains (includingproperty) increased +€2.6 billion to +€9.9 billion (compared with +€7.3 billion at the previous close), mainly because of the increase in unrealised capital gains on bonds. By asset allocation, unrealisedcapital gains are broken down into +€7.1 billionon bonds, +€0.9 billionon equities, and +€1.9 billion on property. Unrealised capital gains on financial assets (excluding property) totalled +€8.0 billion, with +€1.8 billion attributable to the Group (after profit sharingand taxes) versus +€1.0 billionat 31 December 2018. These amounts are recorded in the financial statements in the revaluation reserve. Unrealised property gains attributable to the Group (net of tax and deferred profit sharing) totalled +€0.6 billion compared with +€0.5 billion at 31 December 2018. The Group elected to account for investment and operating property according to the amortised cost method; therefore, unrealised property gains were not recorded in the accounts. The equity share of total investmentsin terms of market value was 5.4% at 31 December 2019 versus 4.6% at 31 December 2018 accordingto an economicview. Group’s equity (c) As of 31 December2019, Groupama’sconsolidatedshareholders’ equity was up+15.2%at €6.1 billion.

Investments (b)

(including unit-linked investments) Insuranceinvestmentstotalled€83.7 billionin 2019 comparedwith €78.5 billion in 2018,an increase of +6.7%.

This change canbe summarised as follows:

(in millions ofeuros)

GROUP’SEQUITYAT 2019 OPENING

5,274

Change in revaluationreserve: fair value of AFS assets

2,500

Change in revaluationreserve: shadowaccounting

(1,517)

Change in revaluationreserve: deferredtax

(219)

Foreign exchangeadjustment

33

Other

(99)

Income (Loss)

104

GROUP’SEQUITYAS OF 31 DECEMBER2019

6,076

Subordinated liabilities, financing debts, and other (d) debts Subordinated liabilities and external debt remained stable at €1.6 billionat 31 December2019. Subordinated debts amounted to €1,630 million in 2019 versus €1,633 million at the end of 2018. During the period, Groupama Assurances Mutuelles renewed a subordinated debt at a significantly lower rate. The Group no longer has any externaldebt (excludingsubordinated debt) since the endof 2015.

Underwriting reserves (e) Gross underwriting reserves (including deferred profit sharing) totalled €75.8 billion at 31 December 2019, compared with €72.8 billion at 31 December 2018. Contingent liabilities (f) Reserves for contingent liabilities totalled €356 million in 2019, comparedwith €384 millionin 2018, and were primarilymade up of pensioncommitments under IAS 19.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES