Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Combined financial statements and notes

Risk of reinsurer insolvency Note 18

Outward reinsurance consists of transferring to the reinsurer a portion of the risks accepted by the ceding company. They are regularly reviewed to monitor and limit the credit risk on third-party reinsurers. The Reinsurance Securities Committee examines and approves the list of reinsurers accepted for all external outward reinsurance. This list is reviewed in its entirety at least twice a year. During the year, continual monitoring is performed to adapt the internal ratings of the reinsurers to changes that may occur to them that would modify their solvency assessment. For any given reinsurance

placement, any reinsurer approached for an outward reinsurance outside Groupama must first be on the list of the Group Security Committee. Approved reinsurers must have a rating compatible with the type of business reinsured, depending on whether they have a short or long accounting run-off. Insurance underwriting reserves and assigned receivables are shown below, by rating, according to the three largest rating agencies (Standard & Poor’s, Fitch Ratings, Moody’s).

31.12.2021

AAA

AA

A

BBB

< BBB Not rated

Total

(in millions of euros)

Share of reinsurers in non-life insurance reserves

1,125

186

1

103

1,415

Share of reinsurers in life insurance reserves

11

15

53

79

Share of reinsurers in reserves for financial contracts with discretionary profit sharing Share of reinsurers in reserves for financial contracts without discretionary profit sharing Receivables from outward reinsurance operations

139

20

11

171

TOTAL

1,275

221

1

168

1,664

31.12.2020

AAA

AA

A

BBB

< BBB Not rated

Total

(in millions of euros)

Share of reinsurers in non-life insurance reserves

1,062

175

5

100

1,343

Share of reinsurers in life insurance reserves

12

16

47

76

Share of reinsurers in reserves for financial contracts with discretionary profit sharing Share of reinsurers in reserves for financial contracts without discretionary profit sharing Receivables from outward reinsurance operations

173

24

51

248

TOTAL

1

1,248

215

5

197

1,666

The total share of unrated reinsurers corresponds primarily to outward reinsurance to professional reinsurance pools, especially Assurpol, Assuratome, Gareat, and Réunion Aérienne, which are not rated.

205

Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES