GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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7 FINANCIAL STATEMENTS Consolidated financial statements and notes

€162 million). On this same CGU, the sensitivity test on the long-term growth rate would result in a hedging surplus of €80 million if it fell by 50 basis points (the surplus would be €123 million with an increase of 50 basis points). For the goodwill of the CGU of the Greek subsidiary, Groupama Phoenix, an increaseof 100 basis points in the discount rate would lead to an insufficiency of €5 million (while a lowering of the discount rate by 100 basis points would result in a surplus of €46 million). The sensitivity test on a drop in the long-termgrowth rate of 50 basis points would result in a hedging surplus of €11 million (the surplus would be €21 million with an increase of 50 basis points). For the CGU of the French subsidiary, Gan Assurances, the sensitivity test on an increase of 100 basis points in the discount rate would lead to a surplus of €51 million,while a decreaseof 100 basis points would result in a surplus of €374 million.The test on a decrease in the long-term growth rate of 50 basis points would result in a surplus of €142 millionwhereas an increase of 50 basis points would give a surplus of €239 million. The simultaneousoccurrenceof all adverseor favourablescenarios would have an impact nearly identical to the aggregate of the individual impacts.

Discount rates have overall been held at their levels for the previous fiscal year, with identical target rates (8% for the Greek and Bulgarian subsidiaries, 10% for the Romanian subsidiary, and 9% for the Hungarian subsidiary). The growth rate used for valuationafter the explicit period depends on marketmaturity. It is based on indicatorsresultingfrom strategic studies. The rates used for Western and Southern European mature markets are within the 1% to 3% bracket. In emerging markets with a low insurancepenetration level this rate may be up to 5%. Ex-post comparative analyses of business plan data and actual data for the main income statement totals (combined ratio, underwriting income etc.) have been carried out and have had no impact on the impairment tests. Sensitivity tests have been carried out on the value in use applied, with the following change assumptions: rise of 100 basis points in the discount rate; and ❯ decline of 50 basis points in the long-term rate of growth. ❯ For CGU goodwill in Central and Eastern European countries, a combined increase of 100 basis points in the discount rate and yield rate would lead to a hedgingsurplus of €57 million(whereasa drop of 100 basis points would result in a hedging surplus of

Goodwill – Broken down by cash-generating unit

2.2

31.12.2020

Foreign exchange adjustments

Gross value

Impairment

Net value

(in millions of euros)

Central and Eastern European countries

1,031

(502) (228) (147)

(215)

314 553

Italy

781 262 131

Turkey Greece

(116)

(48)

Total International Groupama Gan Vie

2,206

(925)

(330)

950 470 196

470 196

Gan Assurances

Financial businesses, property and other insurance companies

Total France and Overseas

696

CLOSING VALUE

2,901

(925)

(330)

1,646

31.12.2019