GROUPAMA / 2019 Universal Registration Document

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

the partnership with La Banque Postale IARD (quota share transfer rate of 40% in 2019 comparedwith 45% in 2018). Claims expenses (excluding claims management expenses), annuities,and other underwritingreservestotalled-€2,025.7 million, an increaseof -€326.5 millionunder the combinedeffect of: a deteriorationof the current loss experienceof -€139.9 million, ● particularly affected by weather risks (accepted expense of +€126 million,includingaround €61 millionfor the 2019 drought) and by the fire insurance segment. The other segments of group 1 excluding stormsgenerally improved; and a significant decrease in surpluses on prior years of ● -€197.2 million: as a reminder, the transaction on the World Trade Center had a major effect for +€98.5 million in 2018. In addition, the environment of decreased rates led to replenishments. The reinsurance and retrocession balance is an expense of -€123.8 million compared with -€286.8 million in 2018, including the retrocession of the proceeds on the World Trade Center transaction. Restated for this event, the balance improves under the effect of a greater recovery of claims, particularly in weather risks. After taking into account the commissionspaid to ceding entities for €509.0 million, the net underwriting margin before general expenses was income of +€151.0 million, down €90.5 million compared with 2018. Total operatingexpensesof GroupamaAssurancesMutuelleswere -€286.0 million, an increase of €29.5 million mainly due to the increase in payroll and the cost of majorprojects. Financial income was positive at +€489.6 million, compared with +€98.6 million in 2018,an increaseof +€391.1 million, mainly from: an increase in received dividends of +€569 million, the main ● income for 2019 being distributedby GroupamaHolding Filiales et Participations (€734 million compared with €141 million in 2018) andCofintex 2(€21 million); allowances for financial provisions of -€173 million in 2019 ● (+€7 million in 2018) including €191 million for Cofintex 17; an increase in net capital gains of +€11 million,including capital ● gains on property in 2019: €4.6 million (Domaine de Nalys +€2.3 million, Messinaapartment+€2.3 million); and an increase in the expenseof subordinateddebt (-€9 million) ● related to interest on TSRs issued in September 2018 and

September 2019,mitigated by the absence of interest on the €500 million TSRrepaid in October 2019. Extraordinary income amounted to -€21.3 million compared with -€15.7 million in 2018. The “tax” line was an expense of €7.6 million, which includes the tax on the capital gain realised on the sale of the property at 79, avenue Champs-Élysées. The net income forthe fiscal year was therefore €325.7 million. Balance sheet 6.1.8.2 The 2019 balance sheet of Groupama Assurances Mutuelles totalled €14,812.8 million, up €686.8 millioncompared with 2018. Group’s equity reached €3,701.8 million (€3,390.1 million at 31 December 2018). It consists of mutual certificates for €3,617.9 million, the conversion difference for -€353 million, retained earnings of +€111 million, and the profit for the year of €325.7 million. Gross underwriting reserves reached €6,359 million, up €402.0 millioncompared with the end of 2018 in connectionwith the weather claims of the year. For these same reasons, the underwriting reserves ceded and retroceded amounted to €1,152.2 million, also up comparedwith 2018 (+€34.7 million). Subordinated liabilities amounted to €2,729.5 million ( versus €2,732.5 million at the end of 2018). On 16 September 2019, Groupama Assurances Mutuelles issued a 10-year bond for a nominal value of €500 million at a fixed rate of 2.125%. On 27 October, the 2019TSR for€500 million wasrepaid. The largest asset item on the Groupama Assurances Mutuelles balance sheet consists of investments with a net book value of €12,737.4 million. Note apotential capital gain of €2,238 million. Details of invoice payment periods 6.1.8.3 In accordancewith the provisionsof the French CommercialCode, the attached table provides details of the invoice payment periods in relation to their due date. Pursuant to the French insurance federation’s circular of 29 May 2017, the information in the table below does not include transactions related to insurance and reinsurancepolicies.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES