GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

Agreements between Groupama Assurances Mutuelles and its subsidiaries and the regional mutuals The reinsurance agreement 2.1 The need for reinsurance has been behind the ties forged among the Groupama mutuals since they were founded more than a century ago. The geographical district covered by the mutuals, which at the time was limited to one or two French departments, led them to seek compensationfor the risks taken at the national level in order to expand, following the example of the growth achieved by the large rival insurance companies. Thus, as time went on, an Internal Reinsurance system grew up amongst the Regional Insurance Mutuals and a Central Mutual, whose reinsurance role is now assumed by Groupama Assurances Mutuelles. The reinsuranceof the regional mutuals by GroupamaAssurances Mutuelles is intended, through an internal pooling of risks, to give each mutual, within its district, underwriting capabilities equivalent to those enjoyedby a single companycoveringthe entire territory. It also limits the use of outside reinsuranceto what would be needed by such a company. In order to achieve this objective, the regionalmutualsare reinsured within a common frameworkset by general regulationsand not by individual reinsurance treaties. This agreement, which was designed a long time ago, is basedon a certainnumberof founding principles that have outlasted the adjustmentmsade to it over time. 2 reinsurance exclusively with Groupama Assurances Mutuelles; ❯ the reinsurance conditions laid down by the agreement are ❯ developed by consultative bodies whose members are from Groupama Assurances Mutuelles and all the mutuals. These conditions apply to all the regional mutuals; shared future among the mutuals and their internal reinsurer: all ❯ risks without exception are subject to outward reinsurance particularly as quota share outward reinsurance, which enables Groupama Assurances Mutuelles to participate in the business growth of the mutuals, including in those divisions where reinsuranceis not technically indispensable(health insurance, for example); in consideration, Groupama Assurances Mutuelles automatically provides the mutuals with reinsurance when they embark on new, less well-known ventures (multi-risk crop insurance, long-term care insurance, etc.) by calculating the insurance terms and conditions regardless; retrocession to the regional mutuals by Groupama Assurances ❯ Mutuelles of a portion of the general profit/loss from its inward reinsurance business, which reduces the need for reinsurance outside the Group and involves all the mutuals in balancing the outward reinsurance business with Groupama Assurances Mutuelles. Permanent principles and amendments (a) to the reinsurance agreement The permanent principles are:

1.3 The Groupama brand (a)

Security systems

The Groupama brand is solely owned by Groupama Assurances Mutuelles, which grants user licences to its regional mutuals and subsidiaries. Groupama Assurances Mutuelles can therefore guarantee that the brand is properly managed and provide protection for one of the Group’s critical assets. Agreement for a security and solidarity system (b) On 17 December2003, Groupama AssurancesMutuelles and the regional mutuals signed an agreement, amended on multiple occasions, for a security and solidarity system aimed at guaranteeing the security and the financial equilibrium of all the regional mutuals and Groupama Assurances Mutuelles and to arrange for solidarity. By virtue of its new role as central body of the network of agricultural mutual insurance and reinsurance companies or mutuals, Groupama Assurances Mutuelles has the legal responsibilityof ensuring the cohesion and smooth running of the network. It has administrative, technical and financial control over the organisation and management of the organisationswithin the network. It determines its strategic policies, issues any relevant instructions to this effect and oversees their successful implementation.It also takes any requisite measures to guarantee the solvencyof not only each organisationwithin the networkbut of the Group as a whole, and to ensure they comply with all their respective obligations. In connection with this, the agreement has thremeain components: INSTRUCTIONS FROM THE CENTRAL BODY The agreement defines the scope and system for issuing instructions, these being one of the methodsavailableto the central body for performing its role. AUDITS The agreementallows GroupamaAssurancesMutuellesto conduct audits to verify the current and future economic and financial balances of each regional mutual, compliance with regulatory requirements and with the reinsurance agreement. It may also, in certain conditions, conduct an audit following a loss or non-compliance with an instruction. FINANCIAL SOLIDARITY PLAN The new plan, established under Solvency 2, institutes a mutual guarantee between Groupama Insurance and the regional mutuals aiming to allow Groupama Assurances Mutuelles or the regional mutuals to respect their coverageratio at all times and to cover any insufficiency of cover. It was clarified in 2020 that the financial solidarity mechanism could be triggered if the solvency ratio falls below a threshold of 100% without any transitional measure on Groupama Gan Vie’s technical reserves. The term of the agreement was set at 10 years in order to better meet the objectivesof lasting links betweenGroupamaAssurances Mutuelles and the regional mutuals through this agreement.

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES