UNIVERSAL REGISTRATION DOCUMENT 2023

7 FINANCIAL STATEMENTS Combined financial statements and notes

2.3.1.1 The Group also sells multi ‑ vehicle contracts with a euro ‑ denominated investments component and one or more unit ‑ linked components. SPECIFIC FEATURES OF CERTAIN NON ‑ LIFE INSURANCE CONTRACTS As with other insurers, the income and financial position of Groupama may be affected quite significantly by the unanticipated and random occurrence of natural or man ‑ made disasters, such as floods, drought, landslides, storms, earthquakes, riots, fire, explosions, or acts of terrorism. For example, the storm that hit France in December 1999 and, closer to home, Storm Ciarán in autumn 2023 resulted in very severe damage and a significant increase in claims from Groupama customers. Climate changes that have occurred in recent years, specifically global warming, have contributed to increasing the unpredictable nature and frequency of climate events and natural events in regions where Groupama is active, particularly in Europe, and have created new uncertainty as to Groupama’s future risk trends and exposure. Groupama is implementing a reinsurance programme to limit the losses it is likely to suffer as a result of events or other events affecting its underwriting results. The reinsurance programmes implemented by Groupama transfer a portion of the losses and corresponding expenses to the reinsurers. These programmes are supplemented by the issuance of a “cat bond” on the high tranche of the force ‑ of ‑ nature protections. However, as an issuer of contracts covered by reinsurance contracts, Groupama remains committed to all its reinsured risks. Reinsurance contracts therefore do not relieve Groupama of the obligation to settle claims. The Group remains subject to risks related to the credit situation of reinsurers and its ability to obtain the payments due from them. Moreover, the reinsurance offering, the amounts that may be covered, and the cost of coverage depend upon market conditions and are likely to vary significantly. Other factors in risk growth may be mentioned: ageing of the population (health, long ‑ term care); ❯ increased pollution; ❯ strengthened case law (liability – compensation for bodily injury, etc.). ❯ The main individual insurance contracts in euros offered to our clients are savings contracts, term life contracts, mixed insurance contracts, deferred annuity contracts with mandatory withdrawal in annuities, and deferred capital contracts with return of premiums. The group contracts offered by the Group are essentially defined contribution pension plans and pension contracts by collective capitalisation in points with a point value.

2.3.1.2 (a) Discretionary profit ‑ sharing clause Certain life insurance, savings and retirement products offered by the Group contain a discretionary profit ‑ sharing clause. This profit sharing must at least meet regulatory and/or contractual constraints. Commercial considerations may lead to an increase in such profit ‑ sharing. This increase, the amount of which is left to the insurer’s discretion, gives policyholders a share of the profits generated by the insurance company’s financial management and net underwriting income. Early redemption options Most of the savings and retirement products may be surrendered by the policyholders at a value defined by the contract before maturity. Large redemptions may have significant impact on the results or the solvency in certain unfavourable environments. Specific features of unit ‑ linked contracts Most unit ‑ linked contracts sold by Groupama do not generally provide for contractual performance. Under these conditions, the policyholder alone directly assumes responsibility for the investment risk. Certain contracts may provide for a minimum redemption guarantee in case of the death of the policyholder. MORTALITY AND LONGEVITY RISKS In life insurance, the payment of benefits is conditional on the death or the survival of the policyholder. It is the occurrence of one or other of these events that gives the right to payment of a benefit. The probability that these events will occur is estimated through experiential or regulatory statistical tables. In most cases, reserves are calculated using the regulatory tables based on statistics of population change. These tables are regularly revised to take demographic changes into account. Income or shareholders’ equity is potentially exposed to risk if demographic change deviates from experience with regard to these reserving tables. Information on concentrations of insurance risk The Group is potentially facing a concentration of risks that will accumulate. There are two types of risk overlap: the risks of underwriting overlap whereby insurance contracts are underwritten by one or more of the Group’s entities for the same risk; ❯ the risks of claim overlap whereby insurance contracts are underwritten by one or more entities of the Group on different risks, which may each generate claims resulting from the same loss event, or the same initial cause. ❯ (b) (c) 2.3.1.3 2.4 SPECIFIC FEATURES OF CERTAIN LIFE INSURANCE CONTRACTS AND FINANCIAL CONTRACTS

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Document d’Enregistrement Universel 2023 GROUPAMA ASSURANCES MUTUELLES