Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

Other investment expenses include the percentage of appreciation on the differences in redemption of bonds, and the depreciation allowance and reserves for investments, and the percentage of general expenses corresponding to investment-management activities. The capital gains or losses on marketable securities are determined by applying the first-in first-out method (FIFO), and they are recorded in the income statement. For these same securities, a reversal is made during the year they are sold for the cumulative amortisation & impairment of the premium or discount recorded up to the date of sale. In non-life insurance, investment income and expenses are recorded on the non-operating income statement. A portion of financial income reverting to underwriting reserves is transferred to the non-life underwriting income statement on a basis prorated to the underwriting reserves and shareholders’ equity. Forward sale financial instruments 3.2.4 Forward financial instruments are recorded in accordance with the accounting rules of CRC Regulation 2002-09. The forward financial instruments held by Groupama Assurances Mutuelles as of 31 December 2021 are total return swaps used as part of yield strategies. Expenses and income related to total return swaps are spread on a straight-line basis over the expected duration of the strategy. Details are provided in Note 16. Intangible assets 3.3.1 Intangible assets consist primarily of: IT development expenses amortised over a period of 3 to 5 years ❯ by the straight-line method; acquired software amortised over a period of 1 to 4 years by the ❯ straight-line method; developed software amortised over a period of 3 or 4 years by ❯ the straight-line method. The software carries a reserve, if necessary, to recognise an additional impairment deemed to be irreversible at the year end. Management fees and commissions 3.3.2 Management fees incurred by Groupama Assurances Mutuelles are recorded according to their nature within the de facto Groupama Assurances Mutuelles group; expenses pertaining to other members of the de facto group are billed back to them. They are then classified for the presentation of the financial statements according to their purpose, by applying allocation keys. These keys are determined analytically and reviewed annually according to the Groupama Assurances Mutuelles internal structure and organisation. The management costs are classified under one of the following five categories: claims settlement costs, which specifically include claims ❯ services expenses and claims dispute expenses; Other transactions 3.3

acquisition expenses, which factor in a part of the commissions ❯ of the regional mutuals, commissions paid for direct business and other inward reinsurance, advertising, and marketing expenses; administrative costs, which include a portion of the commissions ❯ of the regional mutuals and management expenses for direct business and inward reinsurance; investment expenses, which specifically include investment ❯ management services, including fees, commissions, and brokerage commissions paid; other operating expenses, which include expenses that cannot ❯ be assigned directly or by applying a cost to one of the other categories. Expenses arising from activities with no operating connection with the insurance business are reported as other non-operating expenses. Foreign currency transactions 3.3.3 In accordance with Article 243-1 of ANC regulation 2015-11, operational foreign currency position accounts, converted at the inventory price and the equivalent in euros, are offset against foreign exchange income. For structural transactions, the foreign exchange difference is posted to the balance sheet in unrealised foreign exchange adjustment accounts. Receivables 3.3.4 Receivables are recorded at their face redemption value (historical cost). They specifically include: for direct insurance operations (these concern non-life insurance ❯ operations in co-insurance and co-reinsurance groupings and the operations of the regional mutual of Antilles Guyane not having administrative authorisation to carry out insurance operations): the Groupama Assurances Mutuelles share in the premiums ■ yet to be written, and in the premiums to be cancelled by the ceding entities (notably the regional mutuals), net of reinsurance, loans or advances with the ceding entities, ■ receivables due relating to transactions accepted from the ■ ceding entities; for disposal transactions: ❯ loans or advances to outward reinsurers, ■ income owed relating to transactions ceded to outward ■ reinsurers; for the other receivables: ❯ tax consolidation loans or advances to daughter companies, ■ premiums yet to be written for policyholders, ■ premiums yet to be cancelled for policyholders, ■ premiums yet to be collected from policyholders, ■ loans or advances from co-insurers; ■ for inward reinsurance operations: ❯

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES