GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

The amounts accepted for these different transactions break down as follows:

31.12.2020

31.12.2019

(in millions of euros)

Non-life earned premiums

2,195

2,181

Insurance policy servicing expenses

(1,582)

(1,335)

Acquisition costs

(159)

(162)

Administrative costs

(159)

(162)

At 31 December 2020, the overall retrocession result was €10 million.

31.12.2020

31.12.2019

(in millions of euros)

Expenses on inward retrocession

(132)

(118)

Income on inward retrocession

141

139

At the management level, the regional mutuals must provide all administrative functions, including medical management, within certain limits including amounts, and in accordance with the conditions defined by Groupama Gan Vie. The regionalmutualsare requiredto complywith a numberof rules, in particularwith regard to the implementationof the duty to advise, the processingof health files, medical confidentiality,the processing of personal data, and the fight against money laundering. Groupama Gan Vie is authorised to conduct on-site audits of documents and conditions under which the marketing and management functions are exercised. In personal life insurance, the distribution and managementof the regional mutuals are remuneratedon the basis of three factors: for all products, a mark-up on premiums and, for certain products, a fee on the outstandingamount (savingsand pensionproducts),and a fee based on the regional policy income (protection insurance products) designedto involve the regionalmutual in the quality of its management. Groupama Gan Vie postedpremiumincomeunder this personal life insurance agreement of €1,021.2 millionin 2020. The fees earned by the regional mutuals amounted to €124.2 million. In group insurance, the regional mutuals’ distribution and management are compensated on the basis of several factors: mark-upon premiums,mark-upon outstandingamountsfor certain products, fees based on regional net income on all death risks and fees on development agreements. Groupama Gan Vie posted premium income under this Group insurance agreement of €44.3 million in 2020. The fees earned by the regional mutuals amounted to €9.5 million.

IN SUMMARY This entire presentation can be summed up as follows:

the reinsurance agreement is a coherent and balanced whole ❯ that must be assessed in terms of its intended purpose and overall effects and not by isolating any one of its components from this context; in any event, this approach of placing the agreement in perspective is not opposed to a segmented, technical attitude to risks and to the reinsurance terms associated with them (see above); the Internal Reinsuranceterms currently applicableare the result ❯ of amendments made over time to make this system fully effective in terms of its economic purpose of offsetting and controlling risks; the ongoing pursuit of this purpose has resulted in involving ❯ Groupama Assurances Mutuelles in the insurance business of the Groupama regional mutuals in a balanced and controlled way. The non-life reinsurance earned premiums, generated by GroupamaAssurancesMutuelleswith the regionalmutuals, totalled €2,195 million in 2020. 2.2 The relationsbetween GroupamaGan Vie and the regional mutuals are governed by an identical bilateral agreement for each of the regional mutuals,which was modifiedby an amendmentin 2020 in order to convert it into a renewableagreementthat can be modified by the parties each year. The purpose of this agreement is the distributionand management by the regional mutuals of personal life insurance polices, endowment contracts, and group insurance policies from Groupama Gan Vie. With regard to distribution,GroupamaGan Vie sets the marketing, subscription, and pricing rules for the products and develops the pre-contractual and contractual documents to be provided to policyholders, as well as the communicationmedia relating to the insurance products concerned. The regional mutuals are responsible for sales relationships with customers. Groupama Gan Vie

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES