Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Combined financial statements and notes

Subsidiaries, joint ventures, and related companies of the combination scope are consolidated within the scope in accordance with the provisions of IFRS 10, IFRS 11, and IAS 28. Decisions taken by the Group are based particularly on the January 2007 summary of the work undertaken by the CNC working groups on the specifics of implementing IFRS by insurance providers. However, no IFRS standard specifically deals with the methods for aggregating the financial statements of entities forming the Mutual Insurance Division (local mutuals and regional mutuals). The Group has therefore adopted the combination rules defined in section VI of Regulation no 2000-05 of the Accounting Regulatory Committee related to the rules for consolidation and combination of companies governed by the French Insurance Code and provident institutions governed by the French Social Security Code or by the French Rural Code. This choice was made in accordance with the judgement criteria of Article 10 of IAS 8 (on the selection and application of accounting policies in the absence of a standard or an interpretation that is specifically applicable) owing to the characteristics of Groupama’s Mutual Insurance Division as described above. The Group adopted IFRS for the first time when preparing the 2005 financial statements. All figures on the combined balance sheet, combined income statement, statement of profit or loss and gains and losses recognised directly in Group's equity, the statement of changes in Group's equity, cash flow statements and notes to the accounts are stated in millions of euros unless otherwise stated. These figures are rounded. This might generate rounding differences. In order to prepare the Group’s financial statements in accordance with IFRS, Groupama’s management must make assumptions and estimates that have an impact on the amount of assets, liabilities, income, and expenses as well as on the drafting of the notes to the accounts. These estimates and assumptions are reviewed on a regular basis. They are based on past experience and other factors, including future events which can be reasonably expected to occur under the circumstances. Final future results of operations for which estimates were necessary may prove to be different and may result in an adjustment to the financial statements. The judgements made by management pursuant to the application of IFRS primarily concern: initial valuation and impairment tests performed on intangible ❯ assets, particularly goodwill (paragraphs 3.1.1 and 3.1.2); evaluation of underwriting reserves (paragraph 3.12); ❯ estimation of certain fair values on unlisted assets or real estate ❯ assets (paragraphs 3.2.1 and 3.2.2);

estimation of certain fair values of illiquid listed assets ❯ (paragraphs 3.2.1); recognition in assets of profit sharing (paragraphs 3.12.2.b) and ❯ deferred taxes (paragraph 3.14); calculation of reserves for contingencies and charges and ❯ particularly valuation of employee benefits (paragraph 3.10).

2.3

Consolidation principles

Combination and consolidation scope and methods A company is included in the combination scope once its inclusion, or that of the sub-group it heads, on a stand-alone basis or with other combined businesses, is material in relation to the combined financial statements of all companies included in the scope of combination. In accordance with the provisions of IAS 10 and IAS 28, mutual funds and property investment companies are consolidated either through full consolidation or through the equity method. Control is examined for each mutual fund on a case-by-case basis. Non-controlling interests pertaining to mutual funds subject to full consolidation are measured at fair value and disclosed separately as a special liability item in the balance sheet. Underlying financial assets appear in the Group’s insurance business investments. Equity-consolidated mutual funds are recognised at fair value and included in “Financial investments excluding unit-linked items” in the balance sheet. Combining company (a) The combining company is responsible for preparing the combined financial statements. Its designation is the subject of a written agreement between all companies of the combination scope, where this combination does not result from any capital tie. Aggregated companies (b) Companies related to each other through a combination tie are consolidated through aggregation of financial statements according to rules identical to those for full consolidation. Controlled entities (c) Controlled entities are fully consolidated. These entities are consolidated once they are controlled. An entity is controlled when the combining company holds power over this entity, is exposed or is entitled to variable returns because of its ties with this entity, and when it has the ability to exercise its power over this entity in order to have an influence on the amount of returns that it obtains. An entity ceases to be fully consolidated once the combining company loses control of this entity. Full consolidation involves: integrating in the consolidating company’s accounts the items in ❯ the financial statements of the consolidated entities, after any restatements; eliminating transactions and accounts between the fully ❯ consolidated company and the other consolidated companies; 2.3.1

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES