GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

with the valuations of counterparties in order to assess potential differences. This difference at 31 December 2020 was negligible. The fair value hierarchyof investmentproperty assets is included in Note 4. Note that financial investmentsand investmentpropertiesclassified as level 3 represent 3.3% of total assets (including 0.9% of transaction assets at fair value through profit or loss) and are carried mainly by life insurance companies. As of 31 December 2020, transfers from level 1 to level 2 totalled €10 million, and no transfers from level 2 to levelw1ere noted. Beyond the financial assets and liabilitiesdescribedin the table, the Group recorded fair-value financial contracts without discretionary profit sharing in its underwritingliabilities. They totalled €167 million at 31 December 2020, compared with €165 million at 31 December 2019.

The valuation of unlisted equities is based on several methods, such as the discounted cash flow techniques or the restated net asset method. For bonds and structuredproducts,a liquidity test is conductedon a regular basis. In the event of a presumption of illiquidity, a valuation search is performed on other platforms (FININFO, BLOOMBERG, REUTERS, and UBS DELTA). If the data are not consistent or not available on a platform, a valuation of the counterparties is used. If these counterparty valuations are not available,a valuationbasedon a model using observable(level 2) or extrapolated (level 3) data is used. If two consistent valuations are available, the security is then classified as level 2. Where only one valuation is available, the security is classified as level 3. Derivatives are valued on the basis of models using observable market data. The obtained valuations are compared at each close

31.12.2020

Available-for-sale assets

Trading assets

Investments in unit- linked policies

Cash mutual funds

Derivative assets and liabilities

Other investments Equities

Other investments

Equities

Bonds

Bonds

(in millions of euros)

LEVEL 3 OPENING AMOUNT

319 1,056

291

313

228

Change in unrealised capital gains/losses recognised in: net income ❯

(8)

(58)

121

(72)

gains and losses recognised directly ❯ in Group’s equity

(11)

232

Transfer to level 3

33

2

95

Transfer out of level 3

(207)

(96)

Reclassification to loans and receivables Change in scope of consolidation Acquisitions

151

293

190

46

Divestments/Redemptions

(17)

(70)

(7)

(3)

(67)

Currency exchange adjustments

(2)

(1)

(8)

LEVEL 3 CLOSING AMOUNT

431 1,337

416

383

176

191 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES