GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

The following table shows theamortisation periods and the percentagesused by type of real-estate property:

Residences and offices before 1945

Residences and offices after 1945

Offices orresidential high-rises

Shops

Period Percentage

Period Percentage

Period Percentage

Period Percentage

Building shell

120 years

65% 80 years

65% 50 years

50% 70 years

40%

Frame, beams, columns,floors, walls Wind- and water-tightfacilities

35 years

10% 30 years

10% 30 years

10% 30 years

20%

Roof-terrace Facades Covering

Externalwoodwork Technicalfacilities

25 years

15% 25 years

15% 20 years

25% 25 years

25%

Lifts Heating/Airconditioning Networks(electrical,plumbing, etc.) Fixtures,finishings

15 years

10% 15 years

10% 15 years

15% 15 years

15%

Int. improvements

The realisable value of SCI or real estate shares is equal to the Groupama AssurancesMutuelles share in the revalued net assets of that company. The valuation isdetermined basedon the following: the shareholders’equity of the property or real estate company ● as of 31 December; the capital gain or loss on fixed assets. Fixed assets are valued ● on the basis of five-yearappraisalsreviewedannuallyand carried out by independent appraisers. At each closing, the valuation portion of the share (or units) is compared with the NBV of that share (or unit). A reserve for impairment isrecorded whereappropriate. Fixed-income securities (b) Bonds and other fixed-income securities under Articles R. 343-9 and R. 343-10of the French InsuranceCode are recorded at their purchaseprice, net of accrued interestat the time of purchase.The differencebetween the purchaseprice and the redemptionvalue is reportedon the income statementover the remainingterm until the repayment date,using actuarial methods in most cases. An amortisationof the premium or discount is recorded up to the time of transfer in the year the fixed income marketable securities are sold. Accrued interest is recognised on the balance sheet under asset accruals. Inflation-linkedchange in the redemption value of bonds that are indexedon the general price levels is posted toincome.

The redemption value recorded at the close is the most recent quoted price at the inventory date. For unlisted securities, it is the market value resulting from the price that would be obtainedunder normal market conditions and depending on their utility to the Company. Equities and other variable-income securities (c) (including equity securities) Shares and other variable-income securities under Article R. 343-10of the French Insurance Code are recorded at their purchaseprice excluding accrued interest. Pursuantto the notice from the EmergencyCommitteeof the CNC dated 15 June 2007, Groupama AssurancesMutuelles chose the accounting option allowing it to incorporate acquisition costs into the cost price of equity interestsand to recognise,in its accounting, accelerated amortisation over 5 years. The realisable value recorded at year end is: for listed securities,as a general rule, the last price listed on the ● day of theinventory; for unlisted securities, the market value corresponding to the ● price that would be obtained for them under normal market conditions andbasedon their utility for the Company; for shares of variable-capitalinvestment companies and shares ● of mutual funds, the last purchaseprice publishedon the day of the inventory. Loans (d) Loans granted to companiesbelonging to the Group and to other entities are valued according to theircontracts.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES