GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

(b) Life insurance and financial contracts This analysis was limited to life commitments with accounts sensitiveto changes in interest rates. Moreover,with the exceptionof the floor guarantees,no sensitivity analysis was carried out on actuarial reserves for account unit

policies, since the risk of change in the index is assumed by the policyholder rather thanby the insurer. The impact of sensitivityto changesin interestrates of +/-100 basis points on the Group’s life commitmentsis shown net of taxes in the followingtable:

31.12.2019

31.12.2018

Interest rate

Interest rate

+1%

-1%

+1%

-1%

(in millions ofeuros)

Impact on income (net of taxes)

21

(28)

20

(27)

Equity impact (excluding income)

3.1.3.2 SENSITIVITY OF FINANCIAL INVESTMENTS ANALYSIS The following table shows the impacts on income and on the revaluation reserve (posted under group’s equity) of a sensitivity analysis carried out in the event of a change up or down of 100 basispoints (+/-1%)in interestrates. The impacts are shown after taking the following factors into consideration:

the rateof profit sharing of the entity holding the securities; ● the current tax rate. ● In fiscal year 2019, the profit-sharingrate used for entities holding life insurancecommitmentscorrespondedto a range of 63.98% to 87.60%.

31.12.2019

31.12.2018

Interest Rate Risk

Interest Rate Risk

+1%

-1%

+1%

-1%

(in millions ofeuros)

Impact on the revaluationreserve

(745)

831

(550)

602

Equities Equitymutual funds Bonds

(733)

818

(542)

594

Fixed-incomemutual funds

(12)

13

(8)

8

Derivative instrumentsand embeddedderivatives Impact on net income

6

(6)

(15)

16

Equities Equitymutual funds Bonds

(3)

3

(1)

1

Fixed-incomemutual funds

(11)

11

(34)

35

Derivative instrumentsand embeddedderivatives

20

(20)

20

(20)

We note that the change in fair value of the derivatives and embedded derivatives, which primarily correspond to hedge derivatives, passes through the incomestatement. 3.1.3.3 FINANCING DEBT SENSITIVITY ANALYSIS Subordinated loans posted to liabilities on the Group income statement may be posted to debt or group’s equity under IFRS. In fiscal 2014, the Group issued perpetual bonds consisting of perpetual subordinated instruments. The features of this issuance

meet the criteria to allow the bond to be considered an equity instrument (see Note 22 – Group's equity). Consequently, a sensitivityanalysis is not required. The principalfeaturesof the financialdebt instrumentsanalysedare describedin Note 24 – Financing Debt. The Group’s subordinateddebt is recognisedat historical cost. In this respect, this balance sheet item is therefore not sensitive to potential changes in interest rates.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES