GROUPAMA / 2019 Universal Registration Document

GLOSSARY

GLOSSARY

Actuarial reserves n Sums which the insurer must record as liabilities on its balance sheet, corresponding to its commitments to policyholders. On a like-for-like basis n On a like-for-like basis means that the information related to the period of the relevant fiscal year are adjusted using the exchange rate applicable for the same period of the previous fiscal year (constant exchange rate), eliminatingthe income from acquisitions, disposals and changes in scope of consolidation(constant scope) and cancelling changes in accounting methods (constant methodology) in one of the two periods compared. Combined ratio n The combined ratio of Groupama SA is the ratio: of the total claimsexpense net of reinsurance and operating costs; ● to the premiumsearnednet of reinsurance. ● Duration n The duration of a bond correspondsto the average duration of the funds generated by it weighted by their current values. On this order of magnitude, the value of the bond can be understood in terms of its sensitivity to conversions in the yield curve by extension, any flow sequence can be calculated,particularly those related toinsurance liabilities based on projections of such flows. Economic operating profit n GroupamaSA’s economic operating profit correspondsto the net profit, including any capital gains or losses on the share going to the shareholder,variations in fair value and one-time activities, net of corporate income tax. Group insurance n A categoryof insuranceallowinga legal entity called an underwriter to underwrite a policy with an insurance company for the purpose of having a group ofpersons join who are united bysimilar ties. Guaranteed rates policy n Policy under which the insurer promises under contract to pay interest on the capital built up at a certain rate. Individual insurance n A categoryof life and health insuranceunderwhichan individualcan take out an insurancepolicy(death,life) with an insurancecompany.

Life and health insurance n Policies covering a personal risk. These policies include life and death insurance but also all risks affecting the physical integrity of the person due to accident or illness (disability, long-term care, healthcare reimbursement costs, etc.). Long-term care policy n Policy designedto cover the risk of the loss of independenceby the elderly. Multi-vehicle policy n Insurancepolicy whose redemptionvalue or the service paid by the insurer is denominated in euros and unit-linked assets The policyholder (or member) generally has a choice of currency in which he wishes to invest his premiums (in euros or in unit-linked assets) and may, dependingon the possibilitiesprovidedunder the policy, requestthat the initialchoice be changed (arbitrage). Policy in euros n Policy under which the redemptionvalue or the service paid by the insurer are denominated in euros. Profit-sharing n In life insurance and capitalisation, insurance companies include their policy-holders in their earnings byredistributingthem. Run-off n Discontinued operations for which the premium income consists exclusivelyof periodicpremiums associated with old subscriptions. Statutory solvency margin n Minimum risk coverage related to the insurance business required by oversightagencies to protect he interests of policy-holders. Unit-linked policy n Insurance policy for which the redemption value and the service paid by the insurer are expressednot in euros but in anotherunit of value, generally in the number of shares or mutual fund units. Thus the exchange value in euros of the insurer’s commitmentdepends on changes in the securities comprising the mutual fund on the financial markets.

325

Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES