Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS

Statutory auditors’ report on the combined financial statements

JUSTIFICATION OF OUR ASSESSMENTS ‒ KEY POINTS OF THE AUDIT

The global crisis caused by the Covid-19 pandemic has created special conditions for the preparation and audit of the accounts for this fiscal year. This crisis and the exceptional measures taken in connection with this health emergency have multiple consequences for companies, particularly on their activity and financing, as well as increased uncertainty about their prospects. Some of these measures, such as travel restrictions and teleworking, have also had an impact on the internal organisation of companies and the way audits are conducted. It is in this complex and evolving context that, pursuant to the provisions of Articles L. 823-9 and R. 823-7 of the French Commercial Code relating to justification of our assessments, we bring to your attention the key points of the audit relating to the risks of material misstatement that, in our professional judgement, were the most significant for the audit of the combined financial statements for the fiscal year, as well as our responses to these risks. These assessments contributed to the audit of the combined 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 combined financial statements viewed in isolation.

Valuation of unlisted instruments (classification in level 3 in IFRS) (Please refer to Notes 3.2.1 and 6.9 to the combined financial statements)

Key point of our audit

Answers given by the Group of statutory auditors during the audit

As part of its activity has an insurance group, Groupama holds financial instruments not listed on an active market classified as Level 3 in the fair value hierarchy according to IFRS 13. These financial instruments represent €3,683 million on the assets side of the Group’s combined balance sheet at 31 December 2021. These instruments are measured at fair value on the basis of internal valuation models where the parameters are not observable or cannot be corroborated by market data. The resulting valuations may be subject to additional value adjustments to take account of certain market, liquidity, or counterparty risks. The techniques used by management to value these instruments include a significant amount of judgement in the choice of methodologies, assumptions, and data used. Due to the material nature of the outstanding amounts and the significant share of assessment on the part of Management in determining the market value, we believe that the valuation of financial instruments classified as Level 3 under IFRS 13 is a key point of the audit. Reserves for claims, reported on the balance sheet at 31 December 2021 as €13,055 million in the combined financial statements, represent one of the largest liability items. They correspond to the estimate, net of claims receivable, of the cost of all unpaid claims at the end of the fiscal year, both declared and undeclared, both in principal and incidentals (management fees). The estimate of technical reserves is valued on the basis of an actuarial approach, using ultimate cost valuations based on payment triangles or expenses (depending on the risk segments). This valuation also incorporates the valuation of delinquent claims. It requires the exercise 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 of these provisions in the balance sheet, the importance of the judgement exercised by management and the variety and complexity of the actuarial methods used, we considered the valuation of these provisions as a key point of the audit. Assessment of outstanding claims reserve (IBNR) – Non-life insurance policies (Please refer to Notes 3.12.2 and 26.1 to the combined financial statements) Key point of our audit

In order to assess the reasonableness of the estimation of the applied values of unlisted investments, our audit approach was based on information provided to us by your company and included the following work: compare the applied value with the net asset value of the ❯ management company, the latest transactions observed in the market for the examined security, or a comparable one where possible, or valuations communicated by counterparties, where the security was valued on the basis of an internal model: ❯ analysis of the relevance of the assumptions and parameters ■ used; critical review of the construction of the model and inputs (data) ■ used for the valuation; an independent counter-valuation by sampling, using our own ■ models.

Answers given by the Group of statutory auditors during the audit

In order to assess the reasonableness of the estimate of the amount of the outstanding claims reserve, we implemented the following procedures, using our actuaries: 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 methods used to estimate ❯ the reserves; assess the suitability of the actuarial assumptions used to calculate ❯ reserves (depth of history taken into account, number of years of stabilisation); assess the reliability of the statements produced by your company, ❯ tracing the historical data, and reconcile them with the data used to estimate the reserves with the accounting records; analyse the settlement of the reserve of the previous fiscal year ■ with the actual expenses of claims (settlement surplus/deficit); in a number of segments, carry out an independent ■ counter-valuation or a joint review of the assumptions used to calculate the reserves and assess their reasonableness.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES