UNIVERSAL REGISTRATION DOCUMENT 2023

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

(d) Group's IFRS equity At €9.9 billion, Groupama’s combined shareholders’ equity was 12.3% higher as at 31 December 2023. This change can be summarised as follows:

(in millions of euros) GROUP’S IFRS EQUITY AT 2022 OPENING

8,783

Change in revaluation reserve

2,484

Change in revaluation reserve: deferred tax

(577)

Change in reserves related to financial income from insurance policies

(2,026)

Change in reserves related to financial income from insurance policies: deferred tax

528

Mutual certificates (MC)

(1)

Foreign exchange adjustment

180

Other

(19)

Result

510

GROUP'S IFRS EQUITY AS OF 31 DECEMBER 2023

9,862

The Group’s core tier 1 capital increased 9.1% due in particular to the very good operating performance (net income of €510 million).

6.1.5

DEBT

(e) Subordinated liabilities, financing and other debts Subordinated debts amounted to €2,138 million in 2023 versus €2,135 million at the end of 2022. Insurance liabilities The best estimate represents nearly 95% of insurance liabilities and stood at €69.1 billion at 31 December 2023, up 4.8% compared with 2022. The risk adjustment decreased slightly to €0.9 billion compared with €1 billion in the previous period. The contractual service margin (CSM) was stable over the period at €3.6 billion. The loss component decreased by half to €60 million as at 31 December 2023. In a little more detail, the change in the CSM between 2022 and 2023 is the balance of a release of €265 million in the opening CSM, a new business CSM of €165 million mainly related to unit ‑ linked production, favourable experience variances on financial performance for €190 million and other adjustments on economic and non ‑ economic assumptions which amount to an overall balance of -€142 million. Reserves for contingencies and charges Reserves for contingent liabilities totalled €574 million in 2023, compared with €488 million in 2022, and were primarily made up of pension commitments under IAS 19. Changes in the interest rate environment between the spot prices as at 31 December 2022 and 31 December 2023 is a significant source of the increase in this liability. (f) (g)

The debt ratio (using the method adopted by our rating agency) was 21.8% at year ‑ end 2023 versus 22.8% as at 31 December 2022.

RISK MANAGEMENT AND RELIABILITY OF FINANCIAL INFORMATION

6.1.6

6.1.6.1 Risk management is addressed in section 3 of the Universal Registration Document. Reliability of financial data The Group Financial Control Department within the Group Finance Department is responsible for preparing the financial statements and the notes to the shareholders, supervisory authorities and tax authorities. The annual financial statements are prepared with an ongoing objective of identifying all funds flows in detail, assigning a value to them and recognising them in accordance with the regulations in force. The types of internal control procedure implemented to that end are listed below: security procedures and internal checks: every area Manager guarantees the appropriateness of the workload for the skills of his or her staff and ensures their compatibility while at the same time ensuring the separation of duties among employees; ❯ Annual financial statements of Groupama Assurances Mutuelles

192

Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES