UNIVERSAL REGISTRATION DOCUMENT 2023

7 FINANCIAL STATEMENTS Combined financial statements and notes

2.2.2 Preparation of the financial statements In order to prepare the Group’s financial statements in accordance with IFRS, Groupama’s management must make assumptions and estimates that have an impact on the amount of assets, liabilities, income, and expenses as well as on the drafting of the notes to the accounts. These estimates and assumptions are reviewed on a regular basis. They are based on past experience and other factors, including future events which can be reasonably expected to occur under the circumstances. Final future results of operations for which estimates were necessary may prove to be different and may result in an adjustment to the financial statements. In accordance with the amendment to IAS 12 on international tax reform, the Group applies the temporary exemption to the recognition of deferred tax assets or liabilities resulting from the implementation of the OECD Pillar 2 rules. However, the Group can already consider that the additional tax under the international tax reform will not be material. The impacts at 1 January 2023 of IFRS 9 on the impairment of financial assets are presented in Note 7.2. HEDGE ACCOUNTING During the first ‑ time adoption of IFRS 9, IFRS 9 provides a choice between applying the hedge accounting provisions of IFRS 9 and continuing to apply those of IAS 39. Groupama has chosen to apply the provisions of IFRS 9 to all hedging relationships existing as at the date of first- time adoption. IFRS 9 allows hedge accounting to be applied prospectively from 1 January 2023 to hedging relationships involving equity instruments designated at fair value through equity. The accounting rules of IFRS 9 relating to derivatives, including hedging derivatives, are described in paragraph 3.3. (d) Other amendments adopted as of 1 January 2023 The following mandatory amendments for fiscal years beginning on or after 1 January 2023 had no material impact on the Group’s financial statements as at 31 December 2023: for debt instruments and loans measured at fair value through OCI or at cost under IAS 39 and under IFRS 9, the application of the provisions of IFRS 9 relating to the impairment of financial assets resulted in additional impairment of €22 million. ❯ amendments to IAS 1: Disclosure of accounting policies; ❯ amendments to IAS 8: Definition of accounting estimates; ❯ amendments to IAS 12: Deferred tax related to assets and liabilities arising from a single transaction; ❯ amendments to IAS 12: International tax reform – OECD Pillar 2 rules. ❯ units of mutual funds, not eligible for designation at fair value through OCI under IFRS 9, are no longer subject to impairment; ❯

(c) IFRS 9 – Financial Instruments IFRS 9 – Financial Instruments sets out the accounting principles for the classification and measurement of financial instruments and replaces IAS 39 – Financial Instruments: Recognition and Measurement. The main changes in the Group’s accounting principles, as well as their impact on the Group’s combined financial statements, are presented below. CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS Upon first ‑ time adoption of IFRS 9, the former categories of financial assets under IAS 39 are replaced by the IFRS 9 classification, which reflects the subsequent financial asset measurement model (at amortised cost, at fair value through other comprehensive income (“OCI”), or at fair value through net income). The approach used by the Group to classify and value its financial investments under IFRS 9 is presented in paragraph 3.2.2. The majority of financial investments held by the Group are measured at fair value both before and after the transition to IFRS 9, and the majority of the obligations that were recognised at fair value through OCI under IAS 39 (available ‑ for ‑ sale bonds) remain at fair value under IFRS 9. However, the new provisions relating to the classification and measurement of financial investments under IFRS 9 led to the following changes: reclassification of certain obligations from fair value through OCI under IAS 39 to fair value through net income under IFRS 9 when their characteristics do not allow them to be eligible for the fair value through OCI category; ❯ classification of non ‑ consolidated mutual fund units from fair value through OCI under IAS 39 to fair value through net income under IFRS 9, as these assets are not eligible for fair value through OCI; ❯ Groupama’s use of the option to designate at fair value through OCI not recyclable to profit or loss for the majority of eligible equity instruments; ❯ lowering of the threshold for presumption of control of mutual fund: control of a mutual fund is now presumed when it is more than 50% owned and its assets exceed €50 million (compared with €100 million at the previous reporting dates). This change in threshold led to the consolidation of 37 additional mutual funds as of 1 January 2023. ❯ IMPAIRMENT OF FINANCIAL ASSETS With IFRS 9, the impairment model for financial assets is now based on expected credit losses rather than actual losses as was the case under IAS 39. The methods for determining impairment of financial assets under IFRS 9 are presented in section 3.2.2.(b) The implementation of the new impairment model and the measurement principles of IFRS 9 results in: for equity instruments designated at fair value through OCI, unlike under IAS 39, no impairment is required under IFRS 9; ❯

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Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES