GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

The amounts accepted for these differenttransactionsbreak down as follows:

31.12.2019

31.12.2018

(in millions ofeuros)

Non-life earned premiums

2,181

2,036

Insurancepolicy servicingexpenses

(1,335)

(1,370)

Acquisitioncosts

(162)

(148)

Administrativecosts

(162)

(148)

The 2019 inward reinsurance flows incorporate the retroactive accounting effect of the transfer of the Amaline portfolio to the regional mutuals on 31 December 2019, given the 2019 reinsuranceprotecting that portfolio.

At 31 December 2019, the overall retrocession result was €21million.

31.12.2019

31.12.2018

(in millions ofeuros)

Expenseson inward retrocession

(118)

(113)

Income on inward retrocession

139

126

In summary This entirepresentationcan be summedup as follows:

insurance products concerned. The regional mutuals are responsible forsales relationships withcustomers. At the management level, the regional mutuals must provide all administrative functions, including medical management, within certain limits including amounts, and in accordance with the conditions defined byGroupama Gan Vie. The regionalmutualsare requiredto complywith a numberof rules, particularly governing healthcare records, medical confidentiality, processing of personal data, and the prevention of money laundering. Groupama Gan Vie is authorised to conduct on-site audits of documents and conditions under which the marketing and management functions are xercised. In personal life insurance, the distribution and managementof the regional mutuals are remuneratedon the basis of three factors: for all products, amarkup onpremiumsand, for certainproducts, afee on the outstandingamount (savings and pensionproducts),as well as a fee based on the regional policy income (protection insurance products)intendedto involve the regionalmutual in the quality of its management. GroupamaGan Vie postedpremium incomeunder this personal life insurance agreement of €1,084.3 millionin 2019. The fees earned by the regional mutualsamounted to €116.3 million. In group insurance, the regional mutuals’ distribution and management are remunerated on the basis of several factors: mark-upon premiums,mark-upon outstandingamountsfor certain products,fees based on regional net income on all death risks and fees on developmentagreements. Groupama Gan Vie posted premium income under this group insurance agreement of €34.5 million in 2019. The fees earned by the regionalmutuals amounted to €8.1 million.

the reinsurance agreement is a coherent and balanced whole ● that must be assessed in terms of its intended purpose and overall effects and not by isolating any one of its components from this context; in any event, this approach of placing the agreement in perspective is not opposed to a segmented, technical attitude to risks and to the reinsurance terms associated withthem (seeabove); the internal insuranceterms currently applicableare the result of ● amendmentsmade over time to make this system fully effective in terms of its economic purpose of offsetting and controlling risks; the ongoing pursuit of this purpose has resulted in involving ● Groupama Assurances Mutuelles in the insurance business of the Groupama regional mutuals in a balanced and controlled way. The premium income from reinsurance earned by Groupama AssurancesMutuelleswith the regionalmutualsamountedto a total of €2,181 millionin 2019. 2.2 RelationsbetweenGroupamaGan Vie and the regionalmutualsare governed by an identicalbilateralagreementfor each of the regional mutuals. The purpose of this agreementis the distributionand management of GroupamaGan Vie personal life insurancepolicies, capitalisation contracts, and group insurance policies by the regional mutuals. With regard to distribution,GroupamaGan Vie sets the marketing, subscription, and pricing rules for the products and prepares the pre-contractual and contractual documents to be provided to policyholdersas well as the communicationmaterialsrelating to the Groupama Gan Vie

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES