GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

The deferred tax amount shown in the table above equates to the application of i) a short-term and long-term tax rate on the unrealised gains on financial instruments classified as “available-for-saleassets”; and ii) a short-termtax rate on deferred profit sharing (“shadow accounting”). Under the new rules for long-term capital gains (losses) applicable as at 1 January 2006, the unrealised capital gains on “strategic” equity interests are exempt for the calculation of the deferred tax up to a maximum percentageof costs and expenses( i.e., an effectiverate of 3.84%).

“Cash flow hedge and other changes” for -€40 million includes a cash flow hedge revaluation reserve of -€22 million and a net investment hedge revaluation reserve of -€18 million. These reserves correspond to the effective share of hedging operations implementedby the Group in the past and since terminated.They will be recycled in income when the hedged items are sold in accordancewith the provisionsof IAS 39.

Contingent liabilities Note 23

31.12.2019

France

International

Reserves for pensions and similar obligations

Reserves for pensions and similar obligations

Other contingent liabilities (1)

Other contingent liabilities (1)

Total

Total

Total

(in millions ofeuros)

OPENINGBALANCE

201

109

310

30

44

73

384

Change in scope of consolidation, and changes in accountingmethods, and transfers

1

1

1

Increasesfor the year

129

44

173

4

19

23

196

Writebacksfor the year

(127)

(81)

(208)

(3)

(14)

(17)

(225)

Foreign exchangevariation

(1)

(1)

CLOSINGBALANCE

202

73

275

31

50

81

356

Details are not providedfor this line itembecause this information could seriously harm the Group in view ofongoing litigationproceedings. (1)

31.12.2018

France

International

Reserves for pensions and similar obligations

Reserves for pensions and similar obligations

Other contingent liabilities (1)

Other contingent liabilities (1)

Total

Total

Total

(in millions of euros)

OPENINGBALANCE

212

172

384

33

46

80

463

Change in scope of consolidation, and changes in accountingmethods, and transfers Increasesfor the year

124

42

166

4

12

16

183

Writebacksfor the year

(136)

(105)

(240)

(7)

(14)

(21)

(262)

Foreign exchangevariation

(1)

(1)

(1)

CLOSINGBALANCE

201

109

310

30

44

73

384

Details are not providedfor this line itembecause this information could seriously harm the Group in view ofongoing litigationproceedings. (1)

As of 31 December 2019, other reserves for contingent liabilities included badwill of €1 million on the Bulgarian subsidiary Express Life, which had recently joined the Group. The Group has the

regulatory time limit of one year after the acquisition date for the

valuation andfinal allocationof this badwill.

200

Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES