UNIVERSAL REGISTRATION DOCUMENT 2023

5 GROUP RISK FACTORS The Group’s main risks

5.1.2.4 Risk of insufficient reserves The Group is exposed to the risk of insufficient outstanding claims reserves and other technical reserves related to the non ‑ life insurance and non ‑ life health insurance business. The materialisation and magnitude of the risk may be influenced by internal and external factors. The Group establishes reserves in accordance with the applicable accounting and regulatory requirements. These reserves are an estimate of the amounts of claims, on a given date, using actuarial projection techniques. Claims reserves may therefore be subject to changes due to all the variables that affect the ultimate cost of claims: the intrinsic change in claims, regulatory changes, trends in case law, and variations in the interest rates used to update annuity reserves, and so on. These items are not always predictable, as actual losses may differ significantly from the gross reserves initially established. Any upward or downward revaluations may therefore have an impact on net income. Although the likelihood of the risk materialising is greatly reduced at the Group level because of the effects of diversification between the business lines and the entities, the risk of insufficient technical reserves is considered “moderate”. Cyber Insurance risk The Group’s Cyber Insurance risk relates to non ‑ life insurance policies offering cover to meet the need for customer protection in an environment of increased threat and frequency of cyber ‑ attacks. To best manage this risk in its portfolio, in addition to its own expertise, the Group also relies on the expertise of external service providers/counterparties, brokers, and reinsurers. In addition, the reinsurance protection in place would allow the Group to mitigate the potential impact of this risk should it occur. At 31 December 2023, the Cyber Insurance risk is considered “moderate”. Longevity The Group is exposed to the risk of an increase in the duration of payment of annuities, due to an increase in the life expectancy of annuitants or future annuitants, and therefore to an increase in the actuarial reserves to be established, which has a direct impact on the underwriting income from annuity insurance products. Changes to the regulatory table used also have a moderate impact on the increase in annuity reserves. The life expectancy risk is considered “moderate”. Pandemic In the context of Covid ‑ 19, pandemics are a proven risk. As an insurer and economic player, the Group has suffered from this unprecedented global phenomenon, particularly in 2020 and 2021. As an insurer, it has faced claims for work stoppages, business interruption, assistance, and credit and surety. As an economic player, Groupama has also committed to several initiatives such as premium reductions, contributions to solidarity funds for micro ‑ businesses and independent professionals, and contribution to government healthcare spending via an exceptional tax paid in 2020 and 2021. 5.1.2.5 5.1.2.6 5.1.2.7

5.1.2.1 Climate change For the Group, as with other insurers, the climate change risk is reflected in particular in the increased frequency of extreme events causing very high volatility in weather ‑ related claims. In spite of ever more demanding conditions, reinsurance programmes continue to protect the Group against the consequences of climate change, albeit at a higher cost and with Groupama bearing a larger share of the remaining costs (retention). The climate change risk is considered “significant”. Storm risk If this risk were to materialise, it may have a significant impact on the Group’s income. The Group’s reinsurance programme enables it to reduce this impact. By way of example, in 2023 Storm Ciaran, which generated claims whose estimated total value is €432 million, will cost the Group around €245 million after reinsurance. Given the impact on income, the Storm risk is considered to be “significant”. Climate risk on crops As one of the leading agricultural risk insurers on the French market, the Group is exposed to the risk of occurrence of major cumulative climate events affecting the insured crops (mainly hailstorms, floods, or droughts). For example, 2022 was markedly affected by drought, which was further aggravated by heat waves and storms, with more than 26,000 claims filed for the year. The Group, whose main expertise is agricultural insurance, insures all types of crops throughout France through its regional mutuals and also offers its expertise internationally (Romania, and China). As at 31 December 2023, the areas covered by multi ‑ risk climate insurance in France were divided among the following crops: 5.1.2.2 5.1.2.3 Despite the careful attention paid to the monitoring of these risks and the risk control systems put into place, Groupama, because of its historical customer base and inflation of catastrophic events related to global warming, might experience major losses in the future on such risks, which would have a substantial negative impact on its financial position and net income. The Group’s main insurance risks are presented below in descending order.

large crops (wheat, maize, rapeseed, etc.): 75.6%; ❯ viticulture: 3.00%; ❯ vegetables: 1.1%; ❯ grassland: 20.2%; ❯ arboriculture: 0.1%. ❯

If this risk were to materialise, a technical loss may have a direct impact on the Group’s net income. However, it is mitigated by risk management measures and the effectiveness of reinsurance covers. Given the impact on income, the Climate risk on crops is considered to be “significant”.

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Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES