Groupama // 2021 Universal Registration Document

8 ADDITIONAL INFORMATION Glossary

8.6

GLOSSARY

On a like-for-like basis ■ “On a like-for-like basis” means that the information related to the period of the relevant fiscal year are adjusted using the exchange rate applicable for the same period of the previous fiscal year (constant exchange rate), eliminating the income from acquisitions, disposals, and changes in scope of consolidation (constant scope) and cancelling changes in accounting methods (constant methodology) in one of the two periods compared. Group insurance ■ A category of insurance allowing a legal entity called an underwriter to underwrite a policy with an insurance company for the purpose of having a group of persons join who are united by similar ties. Life and health insurance ■ Policies covering a personal risk. These policies include life and death insurance but also all risks affecting the physical integrity of the person due to accident or illness (disability, long-term care, healthcare reimbursement costs, etc.). Individual insurance ■ A category of life and health insurance under which an individual can take out an insurance policy (death, life) with an insurance company. Guaranteed-rate policy ■ Policy under which the insurer promises under contract to pay interest on the capital built up at a certain rate. Long-term care policy ■ Policy designed to cover the risk of the loss of independence by the elderly. Policy in euros ■ Insurance policy under which the redemption value or the benefit paid by the insurer is expressed in euros. Unit-linked policy ■ Insurance policy for which the redemption value and the benefit paid by the insurer are expressed not in euros but in another unit of value, generally in the number of mutual fund units or shares. As such, the exchange value in euros of the insurer’s commitment depends on changes in the securities comprising the mutual fund on the financial markets.

policyholder (or member) generally has a choice of currency in which he wishes to invest his premiums (in euros or in unit-linked assets) and may, depending on the possibilities provided under the policy, request that the initial choice be changed (arbitrage). Duration ■ The duration of a bond corresponds to the average duration of the funds generated by it weighted by their present values. This approximates the sensitivity of the bond’s value to yield curve translations. By extension, the duration of any sequence of flows, and in particular that of insurance liabilities, can be calculated from their projections. Statutory solvency margin ■ Minimum risk cover related to the insurance business required by oversight agencies to protect the interests of policyholders. Profit sharing ■ In life insurance and capitalisation, insurance companies include their policyholders in their earnings through redistribution. Actuarial reserves ■ Amounts that the insurer must record as liabilities on its balance sheet, corresponding to its commitments to policyholders. Combined ratio ■ The combined ratio is the sum of the all-years net loss experience and the rate of operating costs. The all-years net loss experience is the ratio between underwriting expenses for all years, gross of reinsurance, plus the reinsurance balance and earned premiums, gross of reinsurance. The rate of operating costs is the ratio between operating general expenses and earned premiums, gross of reinsurance. Economic operating income ■ Economic operating income equals net income adjusted for realised capital gains and losses, long-term impairment provision allocations and write-backs, and unrealised capital gains and losses on financial assets recognised at fair value (all such items are net of profit sharing and corporate income tax). Also adjusted are non-recurring items net of corporate income tax, impairment of value of business in force, impairment of goodwill (net of corporate income tax), and external financing expenses. Run-off ■ Discontinued operations for which the premium income consists exclusively of periodic premiums associated with old subscriptions.

Multi-vehicle policy ■

Insurance policy whose redemption value or the benefit paid by the insurer is denominated in euros and unit-linked assets. The

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES