UNIVERSAL REGISTRATION DOCUMENT 2023

6 EARNINGS AND FINANCIAL POSITION Cash and group financing

6.4 CASH AND GROUP FINANCING

6.4.1

ISSUER’S FINANCING STRUCTURE

Cash and cash equivalents totalled €828 million as at 31 December 2023, down €495 million compared with 31 December 2022. The distribution of cash flows for fiscal year 2023 among the various business lines is as follows: operational business cash flows: €2,271 million; ❯ investment, financial, and other business cash flows: -€2,766 million; ❯ Total : -€495 million. ❯

Debt totalled €2,138 million at year ‑ end 2023 for Groupama Assurances Mutuelles. Subordinated liabilities as at 31 December 2023 totalled €2,138 million, €3 million higher than as at 31 December 2022. The Group’s debt ratio is assessed at the combined scope level (ratio calculated according to the method chosen by our rating agency) and was 21.8% at the end of 2023, compared with 22.8% as at 31 December 2022.

31.12.2023

31.12.2022

1 ‑ 5 years > 5 years

1 ‑ 5 years > 5 years

< 1 year

Total

< 1 year

Total

(in millions of euros)

Subordinated debt of insurance companies

1,641

497 2,138

644 1,492 2,135

Financing debt represented by securities Financing debt with banking ‑ sector companies TOTAL FINANCING DEBT

1,641

497 2,138

644 1,492 2,135

This 7 ‑ year bond has a fixed annual rate of 0.750% for 10 years. At 31 December 2023, this issue was quoted at 88.6% compared with 82.0% at 31 December 2022. In view of the conditions specific to these issues and pursuant to IAS 32 sections 16 and 17, these four bonds are considered as financial liabilities rather than equity instruments. They are therefore recognised under financing debts. Interest costs net of tax are recognised in the income statement. In addition, under IFRS, one subordinated instrument is recorded in equity instruments and therefore does not appear in the tables above. This is a bond issued by Groupama Assurances Mutuelles on 28 May 2014 in the form of an indefinite ‑ term subordinated bond (TSDI) for a total nominal amount of €1.1 billion. Assets under management at end ‑ December 2023 amounted to €871.1 million following the redemption for €228.9 million in October. This instrument was issued at a fixed rate of 6.375% for the first 10 years and then at a variable rate equal to the 3 ‑ month Euribor rate plus a margin of 5.77%. This bond includes a “10 ‑ year call” that allows the issuer to redeem the bond early as from the tenth year. On 31 December 2023, this TSDI was trading at 100.1%, compared with 100.1% on 31 December 2022.

The “Subordinated debt” line comprises four issues of bond loans as follows: The first bond was issued in the form of redeemable subordinated instruments (TSR) in January 2017 through a swap for a nominal amount of €650 million. This 10 ‑ year bond has a fixed annual rate of 6% for 10 years. At 31 December 2023, this issue was quoted at 107.4% compared with 104.8% at 31 December 2022. The second bond was issued in the form of redeemable subordinated instruments (TSR) in September 2018 for a nominal amount of €500 million. This 10 ‑ year bond has a fixed annual rate of 3.375% for 10 years. At 31 December 2023, this issue was quoted at 99.2% compared with 92.6% at 31 December 2022. The third bond was issued in the form of redeemable subordinated instruments (TSR) in September 2019 for a nominal amount of €500 million. This 10 ‑ year bond has a fixed annual rate of 2.125% for 10 years. At 31 December 2023, this issue was quoted at 91.2% compared with 85.3% at 31 December 2022. The fourth bond was issued in the form of redeemable subordinated instruments (TSR) in July 2021 for a nominal amount of €500 million.

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Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES