UNIVERSAL REGISTRATION DOCUMENT 2023

7 FINANCIAL STATEMENTS Combined financial statements and notes

The exposure of insurance liabilities and assets net of reinsurance by business is presented below:

31.12.2023

31.12.2022

(in millions of euros)

Property and casualty insurance

12,726

11,413

Health and protection

7,029

6,776

Savings and pensions

52,022

50,556

TOTAL CARRYING AMOUNTS OF GROUPS OF INSURANCE CONTRACTS (NET OF REINSURANCE)

71,776

68,745

2.4.1 Identification Such overlapping risks can be identified at the time of underwriting or during ongoing management of the portfolio. A major role in the process of identifying overlaps during underwriting is assumed by the Group, through risk inspections, verification of the absence of overlapping co ‑ insurance or inter ‑ network insurance lines, identification of overlapping commitments by site. In addition, the underwriting procedures for certain risk categories help to control overlapping risks at the time of underwriting. The procedures applicable to property damage underwriting include: verification of overlapping geographical risks at the time of underwriting for major risks (agricultural risks, agri ‑ business risks, industrial risks, local authorities); ❯ prior elimination during the underwriting process of cases of inter ‑ network co ‑ insurance overlapping risks. These directives are defined in internal procedural guidelines. ❯ The procedures in force for managing overlapping portfolio risks cover: identification of the inter ‑ network co ‑ insurance overlapping risks; ❯ inventories of commitments by site for agri ‑ business risks; in addition, high ‑ risk business sectors for which the Group insures the property damage and/or third ‑ party liability risks are specifically monitored by the relevant specialist Insurance Division; ❯ inventories of commitments for risks of storms, hail, greenhouses, frost and commercial forestry, which are used to calculate the exposure of these portfolios to storm risk. ❯

2.4.2 Protection Protection consists of implementing reinsurance coverage, which will first be adapted to the total amount of the potential loss and, second, corresponds to the kind of risk covered. The loss may be human in origin (fire, explosion, accident involving people) or of natural origin (weather event, such as storm, hail, etc.). The underwriting limits (maximum values insured per risk in property insurance or per person for life and health insurance) are used in the context of catastrophic scenarios and compared with losses that have already occurred. Once these amounts have been defined, they are increased by a safety margin. Moreover, specific monitoring is performed to track the adequacy of the coverage with the risks underwritten. In the case of a natural event, a requirements analysis consists of an initial study on the basis of the benchmarked loss, which is re ‑ evaluated on the basis of the change in the portfolio and the French Construction Federation (FFB) index. At the same time, simulation calculations of the exposure of the portfolios are performed using stochastic methods that result in the production of a curve showing the change in the potential maximum loss as a function of different scenarios. The results are cross ‑ checked, analysed and discounted every year to allow the Group to opt for appropriate reinsurance solutions with a reduced margin of error.

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Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES