Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

Underwriting reserves of non-life insurance Note 11

11.1

Breakdown of gross underwriting reserves

31.12.2021

31.12.2020

Inward reinsurance from regional mutuals

Inward reinsurance from regional mutuals

Pool and CDA (1)

Other inward reinsurance

Pool and CDA (1)

Other inward reinsurance

Total

Total

(in thousands of euros)

Reserves for unearned premiums

10,894

228,151

156,007 395,052 11,039

228,254

146,976 386,269

Reserves for claims

176,981 3,871,128 1,208,671 5,256,780 198,464 3,606,065 1,287,034 5,091,563

Reserves for profit-sharing

513

513

1,364

414

1,778

Equalisation reserves

2,351

129,970

41,858 174,179 2,496

113,004

45,061 160,561

Other underwriting reserves 59,266 1,029,889

104,257 1,193,412 64,724 1,006,523

97,509 1,168,756

TOTAL

249,492 5,259,138 1,511,306 7,019,936 276,723 4,955,210 1,576,994 6,808,927

Including underwriting reserves related to contracts written by the Antilles-Guyane regional mutual exempt from licensing. (1)

at 0.0% according to the provisions of the accounting regulations. Actuarial reserves for increasing risks, covering future claims (likely current value of the insurer’s and policyholders’ commitments), have been determined on the basis of experience data on the long-term care portfolio – rate of beneficiary deaths, differentiated impact per product and continued long-term care – and a underwriting rate of 0.90% intended to reflect the current financial environment. An annual test of sufficiency of long-term care reserves is conducted. In particular, it includes any anticipations of price revisions. EQUALISATION RESERVES Groupama Assurances Mutuelles recorded an allocation to equalisation reserves of €11.3 million as of 31 December 2021 as well as an allocation to a long-term care stability fund reserve for €6.3 million and a reversal of the reserve on other stability funds for -€4.1 million.

MEASUREMENT OF RESERVES FOR NON-REPORTED AND LATE CLAIMS (IBNR) Outstanding claims reserves totalled €5,257 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. Total reserves relating to long-term care risk were €410.8 million at 31 December 2021 (of which €278.6 million is the reserve for increasing risks). The actuarial reserves for annuities in service and claims payable reserve covering outstanding claims were determined based on experience data from the long-term care portfolio – law on long-term care – and a underwriting rate capped LONG-TERM CARE

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES