Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Combined financial statements and notes

The standard also permits the application of a simplified “Premium Allocation Approach” (PAA) valuation model based on the premium allocation method for the valuation of the remaining coverage liability provided that this valuation is not significantly different from that of the general model or that the coverage period of each policy in the group of policies does not exceed one year. In this model, changes relative to IFRS 4 are expected to be limited and mainly linked to the discount of all reserves, a more granular onerous contract testing, and the inclusion of a risk adjustment for non ‑ financial risk. The Group plans to apply this PAA model to the majority of its property and casualty insurance policies, health insurance policies, and certain protection insurance policies. With regard to the discount rate, the Group plans to apply a bottom ‑ up approach to the construction of the discount rate curve. The proposed methodology consists in using a risk ‑ free rate curve based on an interbank swap rate curve and applying an adjustment reflecting the liquidity gap between liquid assets and liabilities (illiquidity premium). This curve is extrapolated between the last liquid point and an ultimate forward rate reflecting expectations for real interest rates and long ‑ term inflation. The risk adjustment for non ‑ financial risk reflects the compensation required by the entity for bearing the uncertainty around the amount and timing of cash flows arising from non ‑ financial risk. The Group will apply the confidence ‑ level technique to determine this adjustment for non ‑ financial risk. This will reflect the benefits of risk diversification at the entity level, determined using a correlation matrix. Diversification between entities will also be taken into account. The investment component is defined as the amount that the entity is required to reimburse the insured under all circumstances, whether or not the insured event occurs. It should not be recognised in income and expenses arising from insurance business activities. As a result, unlike IFRS 4, insurance income under IFRS 17 will no longer reflect premiums written during the period, as the investment components that account for the majority of the premiums on the Group’s savings/pensions policies and certain participating protection policies will be excluded from this insurance income. The standard shall be applied retrospectively. If retrospective application of the standard is impracticable, the transitional provisions of the standard allow for two alternative options, the modified retrospective approach and the fair value approach. Given the operational difficulties in implementing the retrospective approach of IFRS 17 (for example, inability to model from the date of inception of contracts, unavailability of complete historical data), the Group intends to apply the modified retrospective approach for the most part. With regard to the presentation of the financial statements, the

(b) The Groupama group has organised itself to apply IFRS 17 within the required time frame, i.e. , for the financial statements as at 30 June 2023. Work to adapt existing tools and roll out the new tool dedicated to the implementation of IFRS 17 is continuing. At this stage, they do not allow the disclosure of impacts on the financial statements. This work is being carried out in conjunction with the work on analysing the impacts of IFRS 9. IFRS 9 – Financial Instruments The Group has elected to defer application of IFRS 9 on financial instruments, adopted by the European Union in November 2016, until the fiscal year beginning on or after 1 January 2023 in accordance with the amendments to IFRS 4 “Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts” and “Extension of the Temporary Exemption from Applying IFRS 9” adopted in November 2017 and December 2020, which allow groups whose main activity is insurance to defer application of IFRS 9 until annual financial periods beginning on or after 1 January 2023 at the latest. The Group meets the eligibility criteria defined in the amendment to defer the application of IFRS 9. The amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information”, adopted by the European Union on 9 September 2022, authorises entities applying IFRS 17 and IFRS 9 for the first time simultaneously to present comparative information on a financial asset as if the provisions of IFRS 9 relating to classification and measurement had already applied to this financial asset. The Group plans to present comparative information at the time of the initial application of IFRS 9 using the classification overlay provided for in this amendment to all eligible financial assets and the impairment provisions of IFRS 9. IFRS 9 will affect the classification and measurement of the Group’s financial assets. The classification and measurement of a financial asset will depend on the business model to which it belongs and the characteristics of its contractual cash flows. Group plans to apply the option to the presentation of insurance financial income, which makes it possible to break down the financial income or financial expense from insurance between net income and equity (which corresponds to the change in the book value of groups of insurance contracts resulting from the effects of the time value of money, financial risk, and their variations – with the exception of adjustments to the contractual service margin of insurance contracts with direct participation features). The Group also plans to apply the option introduced in IFRS 17 adopted by the European Union, providing for an exemption regarding the annual cohort requirement, to portfolios of participating contracts that are based on intergenerational pooling.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES