GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

Technical reserves of Non Life insurance Note 11

11.1

Breakdown of gross technical reserves

31.12.2019

31.12.2018

Inward reinsurance from regional mutuals

Inward reinsurance from regional mutuals

Other inward reinsurance

Other inward reinsurance

Pool and CDA (1)

Pool and CDA (1)

Total

Total

(in thousands ofeuros)

Reservesfor unearnedpremiums

11,236 201,263 147,483 359,982 10,214 190,110 142,920 343,244

Reservesfor claims

228,864 3,197,979 1,292,570 4,719,413 324,382 2,732,436 1,303,900 4,360,718

Reservesfor profit-sharing

244

244

196

196

Equalisationreserves

2,607 87,170 49,832 139,609 2,750 68,817 51,895 123,462

Other underwritingreserves

66,846 972,626 100,271 1,139,742 89,693 935,995 103,649 1,129,337

TOTAL

309,553 4,459,038 1,590,400 6,358,990 427,039 3,927,358 1,602,560 5,956,958

Includingtechnicalreserves relatedto contractswritten by the Antilles-Guyane regional mutual exempt from licensing. (1)

MEASUREMENT OF RESERVES FOR INSURED BUT NOT REPORTED (IBNR) The outstanding claims reserve totalled €4,719 million at 31 December2019. These reserves are valued on the basis of an actuarial approach, defined in accordance with a Group methodology. By means of valuations of final costs based on payment triangles or costs (by risk segment), this method permits a determination of the sufficient amount of outstanding claims reserve. This valuation incorporates the valuation of delinquent claims and expected recoveries into its approach. The total amount of reserves relating to long-termcare risk stood at €394.5 million at 31 December 2019 (including €275.8 million for the reserve for increasing risks). The actuarial reserves for annuities in service and outstanding claims reserve, covering outstanding claims, were determined based on experience data LONG-TERM CARE

from the long-termcare portfolio – law on long-termcare – and a technical rate of 0.34% (75% TME). Actuarial reserves for increasing risks, covering future claims (likely current value of the insurer’s and policyholders’commitments),have been determined on the basis of experience data on the long-term care portfolio – rate of beneficiary deaths, differentiated impact per product and continuedlong-termcare – and a technicalrate of 0.90% intended to reflect the current financial environment. An annual test of sufficiencyof long-termcare reserves is performed.In particular, it incorporates any anticipated price revisions. EQUALISATION RESERVES Groupama Assurances Mutuelles recorded an allowance for equalisationreserves of €15.7 millionas of 31 December2019 as well asa stability fund reserveallowanceof €0.7 million.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES