UNIVERSAL REGISTRATION DOCUMENT 2023

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

(b) Credit market developments With the renewed appetite for risk assets, credit spreads have generally tightened. In the first quarter, the risk aversion movement tied to fears about the US banking sector prompted a flight to quality, which benefited sovereign yields but adversely affected risk premiums, particularly on financials. In 2023, investment grade credit posted a solid performance, explained

first and foremost by the fall in interest rates and, to a lesser extent, by the drop in credit spreads. The high ‑ yield debt markets are exacerbating these movements in risk premiums. Consequently, the performance of the US and European indices benefited from the sharp drop in rates and spreads seen in the last quarter, such that high ‑ yield debt indices gained more than 12% over the year.

PERFORMANCE OF CREDIT INDICES

Data in %

10 12 14

0 2 4 6 8

-4 -2

January 2023

February 2023

March 2023

April 2023

May 2023

June 2023

July 2023

August 2023

Sept. 2023

Oct. 2023

Nov. 2023

Dec. 2023

Euro IG

Euro HY

US IG

US HY

(c) Equity market developments Equity markets were bolstered by good corporate results, even though changes in indices remained correlated with movements in interest rates. Technology stocks came out on top, buoyed by the prospects offered by artificial intelligence. Cyclical stocks performed well, with a boost from a more favourable economic environment than expected. Some defensive sectors underperformed (consumer staples, healthcare).

More specifically by geographic region, the US market was driven by a few very big technology stocks. The Eurozone index rose on the back of a better ‑ than ‑ expected economic environment and solid corporate earnings. The Japanese market benefited from the ongoing expansionary monetary policy. Emerging markets were weighed down by the underperformance of Chinese equities.

PERFORMANCE OF EQUITY INDICES (IN LOCAL CURRENCY)

Data in %

35

30

25

20

15

10

5

0

-5

January 2023

February 2023

March 2023

April 2023

May 2023

June 2023

July 2023

August 2023

Sept. 2023

Oct. 2023

Nov. 2023

Dec. 2023

S&P 500

TOPIX

Europe Stoxx 600

MSCI Emerging Markets

177

Document d’Enregistrement Universel 2023 GROUPAMA ASSURANCES MUTUELLES