GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

The rules for application of IFRS 9 and its potential impact on the Group’s consolidated financial statements are currently under review. The Group has opted for temporary exemption from the rule on consistency of accounting policies ordinarily required by the IAS 28 standard,and as stipulatedunder paragraph 20O (b) of the amendments to IFRS 4 “ApplyingIFRS 9, Financial Instrumentswith IFRS 4, Insurance Contracts” and “Extension of the Temporary Exemption from Applying IFRS 9”. These amendments allow insurance groups that have elected to defer application of IFRS 9, and that consolidate their related companies using the equity method to preserve the financial statements prepared by such related companiesfor the purposesof producingtheir consolidated financial statements. IFRS 17 on insurancepolicies, publishedby the IASB in May 2017 and intended to replace the current IFRS 4, and its amendment published in June 2020 have not yet been adopted by the European Union. Work to identify problems in implementing this standard and its potential impact on the consolidated financial statementsis currently in progress.This work is being carriedout in conjunctionwith the IFRS 9 impact analysis and takes into account the postponementof the effective date of IFRS 17 and IFRS 9 to 1 January 2023. Decisions taken by the Group are based particularly on the January 2007 summary of the work undertaken by the CNC working groups on the specificsof implementingIFRS by insurance providers. Subsidiaries, joint ventures, and related companies of the consolidation scope are consolidated within the scope in accordance with the provisions of IFRS 10, IFRS 11, and IAS 28. The Group adopted IFRS for the first time when preparingthe 2005 financial statements. All amounts on the consolidated balance sheet, the consolidated income statement, the statement of net income and gains (losses) recognised directly in Group's equity, the statement of changes in Group's equity, the cash flow statement, and the notes are in millions of euros unless otherwise indicated. These figures are rounded. This might generate rounding differences. In order to prepare the Group’s financial statements in accordance with IFRS, Groupama’smanagementmust make assumptionsand estimates that have an impact on the amount of assets, liabilities, income, and expensesas well as on the draftingof the notes to the accounts. These estimatesand assumptionsare reviewedon a regular basis. They are based on past experience and other factors, including future eventswhich can be reasonablyexpectedto occur under the circumstances. Final future results of operations for which estimates were necessary may prove to be different and may result in an adjustment to the financial statements.

The various entities of the Group are connected: within the Groupama Assurances Mutuelles division, by capital ❯ ties. The subsidiariesincluded in this division are consolidatedin the financial statements. Moreover, in exchange for a certain operational autonomy, each of the subsidiaries is subject to the requirements and obligations defined by the Groupama Assurances Mutuelles environment, particularly in terms of control; in the Mutual Insurance Division: ❯ by an Internal Reinsurance treaty that binds the regional ■ mutuals to Groupama Assurances Mutuelles, by a security and solidarity plan between all the regional ■ mutuals and Groupama Assurances Mutuelles. The consolidated financial statements as at 31 December 2020 were approvedby the Board of Directors, which met on 11 March 2021. For the purposes of preparing the consolidated accounts, the financial statements of each consolidated entity are prepared consistently and in accordance with the International Financial reporting Standards and the interpretations applicable at 31 December 2020 as adopted by the European Union, the principal terms of which are applied by Groupama Assurances Mutuelles as described below. All standardsand interpretationsthat are mandatoryfor fiscal years starting on or after 1 January 2020 were applied during the production of the Group’s financial statements at 31 December 2020. They have had no significant effect on the Group’s financial statements as at 31 December 2020. The standards in question are the following: amendments to IAS 1 and IAS 8: Clarificationof the definition of ❯ “material”; amendments to IFRS 9, IAS 39, and IFRS 7: Interest rate ❯ benchmark reform; amendments to IFRS 3: Definition of a business; ❯ amendment to IFRS 16: Covid-19-Related Rent Concessions. ❯ The Group also took into account the clarificationsprovidedby the IFRS Interpretation Committee (IFRIC-IC) in its November 2019 decision when determining the duration of leases subject to tacit renewal. This application had no material impact on the Group’s financial statements at 31 December 2020. The Group has opted to defer the application of IFRS 9 “Financial Instruments” and its amendment “Prepayment Features with Negative Compensation” in accordance with the amendments to IFRS 4 “Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts” and “Extension of the temporary exemption from applying IFRS 9”, which allows groups whose main business is insuranceto postponethe applicationof IFRS 9 at the latest until the annual periods beginning on or after 1 January 2023. The Group meets the eligibility criteria defined in the amendment to defer the application of IFRS 9. General presentation of the consolidated financial statements 2.2

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES