GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

Financial markets in 2020 6.1.1.2 The health crisis causeda brutal drop in financialmarkets in March. The massive and rapid actions of central banks contributed to a rebound in risky assets starting in April and a long-term return of government bond and swap rates to negative territory. Changes in equity markets (a) In March, the response of equity indices to the pandemic and lockdown measureswas particularlyrough. Volatility reached levels comparable with those seen during the 2008 financial crisis.

The action of central banks and the prospect of a recovery plan redirected markets upwards. At the same time, there was strong sector-based rotation from losing sectors (transport, leisure, land, and banks) to winning sectors (technologies, pharmaceutical industry, and infrastructurein particular). In geographicalterms, the equity market recovery contrasted with the United States and China, which performed better thanks to their technology sectors. Conversely, the performanceof Europeanindiceswas lower due to the predominance of sectors affected by the crisis and a slower economic recovery.

PERFORMANCE OF EQUITY INDICES

10 15 20

0 5

-40 -35 -30 -25 -20 -15 -10 -5

Jan. 2020

Feb. 2020

Mar. 2020

Apr. 2020

May 2020

Jun. 2020

Jul. 2020

Aug. 2020

Sept. 2020

Oct. 2020

Nov. 2020

Dec. 2020

S&P 500

TOPIX

Europe Stoxx 600

MSCI Emerging Markets

Changes on interest rate markets (b)

eurozone countries was contained thanks to the ECB’s action. Core country rates stabilisedat levels significantlylower than at the beginning of the year: around -0.3% on the 10-year OAT.

The action of central banks and the prospect of long-term monetary policies caused a significant drop in interest rates in all developed economies. The volatility of spreads in peripheral

115 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES