UNIVERSAL REGISTRATION DOCUMENT 2023

8 ADDITIONAL INFORMATION Glossary

8.6 GLOSSARY

Actuarial reserves ■

Life and health insurance ■

Amounts that the insurer must record as liabilities on its balance sheet, corresponding to its commitments to policyholders.

Policies covering a personal risk. These policies include life and death insurance but also all risks affecting the physical integrity of the person due to accident or illness (disability, long ‑ term care, healthcare reimbursement costs, etc.).

Combined ratio ■

The combined ratio is the sum of the all ‑ years net claims ratio and the operating costs ratio. The all years net claims ratio is the ratio between the insurance service expenses for all years (including allowable and non ‑ allowable technical expenses) gross of reinsurance, plus the reinsurance balance and insurance revenues (gross of reinsurance). This indicator is calculated on the scope of contracts evaluated in PAA in IFRS 17. The operating expense rate is the ratio between technical and non ‑ allowable expenses to insurance revenues gross of reinsurance (only on the PAA model in IFRS 17). The CSM represents the present value of the expected future profits for profitable contracts and is recognized progressively in result over the period of coverage of the contracts during which the group provides services to the customers and members. It is determined according to accounting standards IFRS17/97). The duration of a bond corresponds to the average duration of the funds generated by it weighted by their present values. This approximates the sensitivity of the bond’s value to yield curve translations. By extension, the duration of any sequence of flows, and in particular that of insurance liabilities, can be calculated from their projections. Economic operating income equals net income adjusted for realised capital gains and losses, long ‑ term impairment provision allocations and write ‑ backs, and unrealised capital gains and losses on financial assets recognised at fair value for non ‑ life businesses, health and protection, financial activities and holdings (all such items are net of corporate income tax). Also adjusted are non ‑ recurring items net of corporate income tax, impairment of goodwill (net of corporate income tax), and external financing expenses. Contractual service margin (CSM) ■ Duration ■ Economic operating income ■

Long ‑ term care policy ■

Policy designed to cover the risk of the loss of independence by the elderly.

Multi ‑ vehicle policy ■

Insurance policy whose redemption value or the benefit paid by the insurer is denominated in euros and unit ‑ linked assets. The policyholder (or member) generally has a choice of currency in which he wishes to invest his premiums (in euros or in unit ‑ linked assets) and may, depending on the possibilities provided under the policy, request that the initial choice be changed (arbitrage). “On a like ‑ for ‑ like basis” means that the information related to the period of the relevant fiscal year is adjusted using the exchange rate applicable for the same period of the previous fiscal year (constant exchange rate), eliminating the income from acquisitions, disposals, and changes in scope of consolidation (constant scope) and cancelling changes in accounting methods (constant methodology) in one of the two periods compared. On a like ‑ for ‑ like basis ■

Policy in euros ■

Insurance policy under which the redemption value or the benefit paid by the insurer is expressed in euros.

Profit sharing ■

In life insurance and capitalisation, insurance companies include their policyholders in their earnings through redistribution.

Run ‑ off ■

Discontinued operations for which the premium income consists exclusively of periodic premiums associated with old subscriptions.

Statutory solvency margin ■

Minimum risk cover related to the insurance business required by oversight agencies to protect the interests of policyholders.

Guaranteed ‑ rate policy ■

Policy under which the insurer promises under contract to pay interest on the capital built up at a certain rate.

Unit ‑ linked policy ■

Insurance policy for which the redemption value and the benefit paid by the insurer are expressed not in euros but in another unit of value, generally in the number of mutual fund units or shares. As such, the exchange value in euros of the insurer’s commitment depends on changes in the securities comprising the mutual fund on the financial markets.

Group insurance ■

A category of insurance allowing a legal entity called an underwriter to underwrite a policy with an insurance company for the purpose of having a group of persons join who are united by similar ties.

Individual insurance ■

A category of life and health insurance under which an individual can take out an insurance policy (death, life) with an insurance company.

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Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES