Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Combined financial statements and notes

(b) In non ‑ life insurance, acquisition costs related to unearned premiums are deferred and recorded in assets on the balance sheet. Life insurance policies and financial contracts with discretionary profit sharing PREMIUMS Written premiums represent the gross premiums, before reinsurance and tax, net of cancellations, reductions, rebates, of the change in premiums still to be written and of the change in premiums to be cancelled. INSURANCE POLICY SERVICING EXPENSES Servicing expenses for life insurance policies and financial contracts with discretionary profit sharing means: all claims once they have been paid to the beneficiary; ❯ technical interest and profit sharing that may be included in those claims; ❯ all costs incurred by the insurance company for the management and payment of claims. ❯ OUTSTANDING CLAIMS RESERVES The outstanding claims reserves represent the estimate, net of claims receivable, of the cost of all unpaid claims at the end of the fiscal year, both declared and undeclared. They include a charge for management fees that is determined on the basis of actual expense rates. For construction risks, in addition to the outstanding claims reserves (declared or not yet declared), separate claims reserves that have not yet appeared are also funded for the ten ‑ year civil liability coverage and the ten ‑ year coverage against structural damage. Reserves are assessed on the basis of the type of specific risks covered, particularly agricultural and climate risks and risks that are highly seasonal in nature. OTHER UNDERWRITING RESERVES Actuarial reserves for annuities The actuarial reserves for annuities represent the present value of the Company’s payables for annuities and annuity expenses. Reserve for increasing risks This reserve is set aside for periodic premium health and disability insurance policies, for which the risk grows with the age of the policyholders. DEFERRED ACQUISITION COSTS They also include the profit sharing and the change in life insurance reserves and other underwriting reserves. UNDERWRITING LIABILITIES RELATING TO LIFE INSURANCE POLICIES AND FINANCIAL CONTRACTS WITH DISCRETIONARY PROFIT SHARING Actuarial reserves Actuarial reserves represent the difference between the present values of the commitments made by the insurer and the policyholders respectively, taking into account the probability that these commitments will be realised. Actuarial reserves are

recognised as liabilities on the balance sheet at their gross underwriting value, before reinsurance and deferred acquisition costs. No reserve for financial contingencies is recorded when the actuarial reserves have been funded on the basis of discount rates at most equal to the forecast yield rates, prudently estimated, of the assets assigned to represent them. Profit ‑ sharing reserve The profit ‑ sharing reserve consists of a reserve for profit ‑ sharing payable and potentially as a reserve for deferred profit sharing. The reserve for payable profit sharing includes the identifiable amounts, from regulatory or contractual obligations, intended for the policyholders or beneficiaries of contracts in the form of profit sharing and rebates, to the extent that these amounts have not been credited to the policyholder’s account or included in “Life underwriting reserves”. The reserve for deferred profit sharing includes: the reserve for unconditional profit sharing, which is recognised when a difference is recorded between the bases for calculating future rights in the individual company accounts and the combined financial statements; ❯ the reserve for conditional profit sharing, which relates to the difference in liabilities between the individual company and the combined financial statements, the payment of which depends on a management decision or the occurrence of an event. ❯ In the particular case of restatement in the combined financial statements of the capitalisation reserve, a reserve for deferred profit ‑ sharing is determined when the Asset/Liability Management assumptions demonstrate a probable permanent write ‑ back of the total capitalisation reserve. The Group recognised no deferred profit ‑ sharing on the restatement of the capitalisation reserve. Application of shadow accounting For participatory contracts, the Group has decided to apply shadow accounting, which is intended to ensure the value of insurance liabilities, deferred acquisition costs and the intangible assets related to insurance policies, reflect the effects of including unrealised gains and losses on financial assets valued at fair value. Deferred profit ‑ sharing is recognised through the revaluation reserve or the income statement, depending on whether these gains and losses have been recognised in the reserve or in the income statement. Shadow accounting is applied on the basis of a profit ‑ sharing rate that is estimated and applied to unrealised gains and losses. This rate is obtained by applying the regulatory and contractual conditions for calculating profit sharing and is determined either using the actual profit ‑ sharing rates observed over the last three years or using a prospective sharing rate based on three ‑ year business plans in the event of significant expected changes.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES