Groupama // Universal Registration Document 2022

6

EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

(d) Shareholders’ equity At €7.5 billion, Groupama’s combined shareholders’ equity was 29.6% lower as at 31 December 2022. This change can be summarised as follows:

(in millions of euros) SHAREHOLDERS’ EQUITY AT 2021 OPENING

10,659

Change in revaluation reserve: fair value of AFS assets

(11,069)

Change in revaluation reserve: shadow accounting

6,772

Change in revaluation reserve: cash ‑ flow hedge Change in revaluation reserve: deferred tax

(96)

1,073

Mutual certificates

(1)

Subordinated debts

(227)

Foreign exchange adjustment

(24)

Other

(39)

Result

454

SHAREHOLDERS’ EQUITY AS AT 31 DECEMBER 2022

7,502

6.1.5

DEBT

(e) Subordinated liabilities, financing, and other debts Subordinated debts amounted to €2,135 million in 2022 versus €2,132 million at the end of 2021. Underwriting reserves Gross underwriting reserves (including deferred profit sharing) totalled €75.5 billion as at 31 December 2022, compared with €81.5 billion as at 31 December 2021. It should be noted that the Group recognised a deferred profit ‑ sharing asset of €1.9 billion mainly due to capital losses on bond portfolios in application of the principle of shadow accounting. Deferred profit sharing represented a liability in 2021 of €4.8 billion. Contingent liabilities Reserves for contingent liabilities totalled €487 million in 2022, compared with €580 million in 2021, and were primarily made up of pension commitments under IAS 19. Their downward trend was mainly due to the effect of discounting rates on these commitments (the increase in the indices underlying these calculations was on the order of 300 bps). (f) (g) The Group’s core tier 1 capital increased +5.3% due in particular to the very good operating performance (net income of €454 million). The decrease in the revaluation reserve in a context of rising interest rates weighed on IFRS equity and offset the increase in core tier 1 capital.

The debt ratio (using the method adopted by our rating agency) was 25.1% at year ‑ end 2022 versus 27.8% as at 31 December 2021. This change is explained by the partial redemption of €228.9 million in perpetual subordinated bonds issued in 2014 for a total tranche of €1.1 billion.

RISK MANAGEMENT AND RELIABILITY OF FINANCIAL INFORMATION

6.1.6

Risk management is addressed in section 3 of the Universal Registration Document. Reliability of financial data The Group Financial Control Department within the Group Finance Department is responsible for preparing the financial statements and the notes to the shareholders, supervisory authorities and tax authorities.

6.1.6.1

Corporate financial statements of Groupama Assurances Mutuelles

The Company financial statements are prepared with an ongoing objective of identifying all funds flows in detail, assigning a value to them and recognising them in accordance with the regulations in force. The types of internal control procedure implemented to that end are listed below:

159

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES