GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

Technical liabilities related to insurance policies Note 25

Technical liabilities related to insurance policies – by operating segment 25.1

31.12.2020

31.12.2019

France International

Total

France International

Total

(in millions of euros)

Gross technical reinsurance reserves Life insurance reserves

31,812

692

32,504

31,925

737

32,662

Outstanding claims reserves

739

64

803

647

50

696

Reserves for profit sharing

662

2

665

649

2

651

Other technical reserves

24

10

34

9

10

19

Total Life insurance

33,237

769

34,005

33,229

798

34,028

Reserves for unearned premiums

735

590

1,326

707

639

1,347

Outstanding claims reserves

7,082

2,117

9,199

6,713

2,202

8,915

Other technical reserves

2,843

42

2,885

2,767

42

2,809

Total Non-life insurance

10,661

2,749

13,409

10,187

2,883

13,070

Life insurance reserves for unit-linked policies

10,341

1,045

11,386

9,862

1,082

10,943

TOTAL

54,238

4,563

58,801

53,278

4,763

58,041

The adequacy tests carried out on liabilities as at 31 December 2020 were found to be satisfactory and did not result in the recognition of any additional technical expense.

VALUATION OF NON-LIFE ACTUARIAL ANNUITY RESERVES Non-life technical reserves relatives to annuities in service or capital comprising annuities are discounted in accordance with the stipulations of relevant provisions. Relying on the provisions of IFRS 4, which themselves are based, for these items, on the provisions of CRC (French Accounting Standards Committee) regulation 2000-05, the Group uses a discount rate equating to a prudently estimated rate of return on assets when discounting reserves for non-life annuities (annuities in service and deferred annuities).

EVALUATION OF RESERVES FOR UNKNOWN AND LATE CLAIMS (IBNR)

The non-life outstanding claims reserve totalled €9,199 million at 31 December 2020. These reserves are valued using an actuarial approach, defined in accordance with a Group methodology. By means of valuations of final costs based on payment or cost triangles (dependingon the risk segment), this method determines the sufficient amount of outstandingclaims reserve. This valuation includes the valuationof delinquentclaims and expectedrecoveries in its approach. LONG-TERM CARE The total amount of reservesrelating to long-termcare risk stood at €362 million at 31 December 2020. This figure was determined based on reserves valued using an economic approach (best estimate) at a discount rate of 1.20% including a prudence factor for long-term care and home-care insurance portfolios. The best estimate reserve is valued using the same forward-lookingmodel as that used to justify the adequacy of employeewelfare reserves. The biometric and economic assumption other than the discount rate are also the same.

212 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES