GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

Segment reporting 3.15 A business segment is a componentof an entity whose operating profits are regularly examined by the Group’s principal operational decision-makersin order to assessthe segment’sperformanceand decide on the resources to allocate to it. The Group is organised into three operationalsegments: insurance in France, international insurance, and banking and financial businesses. The banking and financial activity segment, which is also the subject of specific notes (Notes 10.1,10.2, and 35.2), has been grouped with the insurance segment in France in order to Life and health insurance The life and health insurance business covers the traditional life insurance business as well as personal injury (largely health risks, disability and long-term care). Property and casualty insurance Property and casualty insurancecovers, by default, all the Group’s other insurance businesses. Banking and finance business The banking and finance business relates to distributionof banking products, including fund management activities, real estate management, private equity and employee savings. Holding company activity This mainly comprisesincomeand expensesarising frommanaging the Group,and holdingthe sharesof the companiesincludedwithin the Groupama Assurances Mutuellescope of consolidation. Costs by category 3.16 Managementfees and commissionsrelated to insurance business are classified according to their purpose, by applying allocation keys definedbasedon the structureand organisationof each of the insurance entities. Expensesare classified into the followingsix purposes: acquisition costs; ● administrative costs; ● claims settlement costs; ● investmentexpenses; ● create an overall operational segment entitled France. The various activities of each segment are as follows:

Rents are discountedat the implicit interest rate of the lease if it is easily determined or, if it is not, at the lessee’smarginal debtrate. The rent liability is recognisedat amortisedcost using the effective interest rate method. It is revaluedin the followingsituations: revision ofthe termof the lease; ● modificationrelating to the assessmentof the reasonablycertain ● (or not) nature of the exercise of an option to purchase; reassessment of residual value guarantees; ● revision of the rates or indices on which the rents are based ● when the rent adjustment takes place. Taxes 3.14 Corporateincometax includesall currentand deferredtaxes.When a tax is payable or receivable and payment is not subject to the execution of future transactions, such tax is classified as current, even if the payment is spread over several fiscal years. It appears as an asset or liability on the balance sheet as applicable. Operationscarried out by the Group may have positive or negative tax consequences other than those taken into consideration for calculating the payable tax. The result is tax assets or liabilities classified asdeferred. This is particularly the case when, because of completed transactionsthat are treated in both individualcompanystatements and only in the consolidated financial statements as restatements and eliminationsof inter-companyincome or losses, differenceswill appear in the future between the tax income and the accounting income of the Company, or between the tax value and the book value of an asset or liability, for example when transactions performed during a fiscal year are taxable only in the following fiscal year. These differences are classifiedas timingdifferences. All deferredtax liabilitiesmust be recognised;however,deferredtax assets are only recognisedif it is likely that taxable income (against which these deductible timing differences can be charged) will be available. All deferred tax liabilities are recognised. Deferred tax assets are recognised when their recovery is considered as “more probable than improbable”, i.e., if it is likely that sufficient taxable income will be available in the future to offset the deductibletiming differences. In general,a 3-year horizon is consideredto be a reasonableperiod to assess whether the entity can recover the capitalised deferred tax. However,an impairmentcharge is bookedagainst the deferred tax assets if their recoverability appears doubtful. Deferred tax assets and liabilities are valued on the basis of tax rates (and tax regulations), which have been adopted as at the balance sheetdate. Deferred tax assets and liabilities are not discounted to present value.

other technical expenses; ● non-technical expenses. ●

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES