Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Combined financial statements and notes

Underwriting liabilities related to insurance policies Note 26

Underwriting liabilities related to insurance policies ‒ by operating segment 26.1

31.12.2021

31.12.2020

France International

Total

France International

Total

(in millions of euros)

Gross underwriting reinsurance reserves Life insurance reserves

31,739

742

32,481

31,812

692

32,504

Outstanding claims reserves

754

57

812

739

64

803

Reserves for profit-sharing

736

4

739

662

2

665

Other underwriting reserves

7

2

9

24

10

34

Total Life insurance

33,236

805

34,041

33,237

769

34,005

Reserves for unearned premiums

1,216

659

1,875

1,198

590

1,788

Outstanding claims reserves

10,998

2,057

13,055

10,501

2,117

12,618

Other underwriting reserves

3,527

43

3,570

3,506

42

3,548

Total Non-life insurance

15,742

2,758

18,500

15,205

2,749

17,953

Life insurance reserves for unit-linked policies

11,177

1,096

12,273

10,341

1,045

11,386

TOTAL

60,155

4,659

64,815

58,782

4,563

63,345

VALUATION OF NON-LIFE ACTUARIAL ANNUITY RESERVES Non-life underwriting reserves relating to annuities in service or capital comprising annuities are discounted in accordance with the stipulations of relevant provisions. Relying on the provisions of IFRS 4, which themselves are based, for these items, on the provisions of CRC (French accounting standards committee) regulation 2000-05, the Group uses a discount rate equating to a prudently estimated rate of return on assets when discounting reserves for non-life annuities (annuities in service and deferred annuities).

The adequacy tests carried out on liabilities as at 31 December 2021 were found to be satisfactory and did not result in the recognition of any additional underwriting expense. EVALUATION OF RESERVES FOR UNKNOWN AND LATE CLAIMS (IBNR) The non-life outstanding claims reserve totalled €13,055 million at 31 December 2021. These reserves are valued using an actuarial approach, defined in accordance with a Group methodology. By means of valuations of final costs based on payment or cost triangles (depending on the risk segment), this method determines the sufficient amount of outstanding claims reserve. This valuation includes the valuation of delinquent claims and expected recoveries in its approach. LONG-TERM CARE The total amount of reserves relating to long-term care risk stood at €734 million at 31 December 2021. This figure was determined based on reserves valued using an economic approach (best estimate) at a discount rate of 1.20% including a prudence factor for long-term care and home-care insurance portfolios. The best estimate reserve is valued using the same forward-looking model as that used to justify the adequacy of employee welfare reserves. The biometric and economic assumption other than the discount rate are also the same.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES