GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS

Statutory auditors’ report on the annual financial statements

These assessments contributed to the audit of the annual financial statements,

taken as a whole, and to the formation of our opinion

expressed above. We do not express an opinion on items in these annual financial statements viewed in isolation.

Assessment of outstanding claims reserve (Please refer to Notes 3.1.5 and 11.1 to the annual financial statements)

Implemented procedures

Identified risk

Reserves for claims, appearing on the balance sheet at 31 December 2020 for €5,091 million, represent one of thgereatest liabilities. They correspond to unpaid benefits, both in principal and incidentals (management fees), and also include an estimate of the benefiptsayable, unknown or late. The estimate of technical provisions is based in particular on historical data projected to calculate the cost of claims not yet reported, using actuarial methods as described in Notes 3.1.5 and 11.1. It requires theexercise of management’s judgement in selecting the assumptions to be applied, the calculation methods to be used, and the related management cost estimates. Given the relative weight ofthese reserves in the balance sheet and the importance of the judgement exercised by management, we considered the valuation of these reserves as a key point of the audit.

In order to assess the reasonablenessof the estimation of the amount of reserves for non-reported or late claims, our audit approach was based on the information provided to us and included the following work: gain an understanding of the design and test the effectiveness of ❯ the key controls for managing claims and determining these reserves; assess the relevance of the calculation methodused to estimate ❯ the reserves; reconcile the data used as abasis for estimating reserves with the ❯ accounting records; assess the suitability of the relative assumptions used to calculate ❯ the reserves; conduct a review of the outcome of the previous year’s accounting ❯ estimates; use the Mutual’s data to independently assestshese reserves in ❯ certain business segments and assess their reasonableness. In order to assess the reasonablenessof the estimation of the valuation of the equity securities held by Caisse Nationale de Réassurance Mutuelle Agricole Groupama (and especially the Groupama Holding Filiales etParticipations (GHFP) equity securities), our work particularly consisted in analysing the assumptions and methods underlyintghe valuation of the subsidiaries, in particular: compare the growth rates to infinity with the average growth rates ❯ observed in the countries in whichGroupama operates for similar activities; assess the reasonableness and coherence of the business plans ❯ based on historical evidence, our knowledge of the entities, the market in which they are positioned, and macroeconomic factors that may affect these forecasts; assess the discount rates compared with the customary rateus ed ❯ by the market’s financial analysts based on a sample of listed European insurers considered comparable with the Company in terms of activity, size, and geographical area; assess the method of calculating S2 Cost of Capital used fothre ❯ valuation of equity securities with the involvement of our teams of actuaries and analyse the methodologies for valuing equity securities. Implemented procedures

Valuation of equity securities (Please refer to Notes 3.2.2 and 5.2 to the annual financial statements)

Identified risk

Equity securities, shown on the balance sheet at 31 December 2020 for €10,009 million, represent one of the greatest assets. They are initially recognised at their historical cost of acquisition, including costs, minus a provision for long-term impairment where appropriate. The valuation of equity shares is based on multi-criteria methods selected based on each specific situation (type of assets, holding period, etc.). The techniques used by management to value these securities thus include a significant amount of judgement in the choice of methodologies, assumptions, and data used. Due to the materiality of the equitysecurities and the sensitivity to management’s choice of methodologies and calculation parameters, we considered the proper valuation of equity securities as a key audit point.

SPECIFIC VERIFICATIONS

In accordancewith the professionalstandardsapplicable in France, we also performed the specific verificationsrequired by the applicable laws and Regulations. We have no matters to report as to the fair presentationand the consistencywith the annual financial statementsof the informationprovided in the management report of the Board of Directors and in the other documents about the financial position and the annual financial statements sent to the members, with thexception of the point below.

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES