GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

Significant events of the year 1

Financial rating 1.1 On 20 June 2019, Fitch Ratings raised the Insurer Financial Strength (IFS) ratings of Groupama Assurances Mutuelles and its subsidiaries to “A” and maintained the outlook associated with these ratingsat “Positive”.

for €500 million, at the first redemption date, in accordance with Article 5of the termsand conditions of the bonds.

1.3

Transfer of the Amaline portfolio to

the regional mutuals Amaline’s insurance portfolio was transferred to the regional mutuals,with this residual structurebecomingan insurancebroker. The Amaline entity is now intended to develop the partnership activity by becoming an insurance broker. Groupama Assurances Mutuelles reinsures 100% of the Amaline portfolio (whether business carried out through direct insurance or business carried out under a partnership) for new business underwritten until 31 December 2019. The portfolio represents €76 million in premiums.

Subordinated instruments 1.2 On 16 September 2019, Groupama issued subordinated instruments with a maturity of 10 years for a total of €500 million with an annual coupon of 2.125%. The new instrument was a big success among institutional investors with an order book oversubscribednearly three times. This operationcontributesto the active managementof Groupama’scapital by taking advantage of marketopportunities. On 27 October 2019, Groupama proceeded with the early redemption of its redeemable subordinatedbonds issued in 2009

Post-balance sheet events 2

None.

Accounting principles, rules and methods 3

Underwriting operations 3.1 GroupamaAssurancesMutuellesis engagedmainly in the following reinsuranceoperations: the reinsurance of each of the regional mutuals under the ● reinsuranceagreement entered into with each of them; the reinsurance of other entities of the Group in France and ● internationally. GroupamaAssurancesMutuellesalso carries out non-life insurance operations in co-insurance and co-reinsurance groupings. Since the AntillesGuyaneregionalmutual is not licensedto conduct insurance operations, Groupama Assurances Mutuelles directly replacesthis mutual to cover these operations.Under this principle, the corresponding figures reported in the financial statements contain the information reported as “direct business” after deducting “custody of the regional mutual”.

The individual financial statements of Groupama Assurances Mutuelles are prepared and presented in accordance with the general accounting principles provided for in Articles L. 123-12to L. 123-22 of the French Commercial Code and the provisions of the French insurancecode and the regulationsof the ANC (French accountingstandards authority) no 2015-11of 26 November2015 et seq. relating to the annual financial statements of insurance undertakings.

271 Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES