Groupama // Universal Registration Document 2022

7

FINANCIAL STATEMENTS Combined financial statements and notes

Note 27 Underwriting liabilities related to insurance policies

27.1 Underwriting liabilities relating to insurance policies – by operating segment

31.12.2022

31.12.2021

France International

Total

France International

Total

(in millions of euros)

Underwriting reserves gross of reinsurance Life insurance reserves

31,405

729

32,134

31,739

742

32,481

Outstanding claims reserves

823

53

876

754

57

812

Reserves for profit ‑ sharing Other underwriting reserves

884

5

890

736

4

739

4

2

6

7

2

9

Total Life insurance

33,116

789

33,905

33,236

805

34,041

Reserves for unearned premiums

1,276

686

1,962

1,216

659

1,875

Outstanding claims reserves

11,962

2,024

13,986

10,998

2,057

13,055

Other underwriting reserves

3,416

31

3,447

3,527

43

3,570

Total Non ‑ life insurance

16,655

2,740

19,395

15,742

2,758

18,500

Life insurance reserves for unit ‑ linked policies

10,160

955

11,115

11,177

1,096

12,273

TOTAL

59,931

4,484

64,415

60,155

4,659

64,815

Valuation of non ‑ life actuarial annuity reserves Non ‑ life underwriting reserves relating to annuities in service or capital comprising annuities are discounted in accordance with the stipulations of relevant provisions. Relying on the provisions of IFRS 4, which themselves are based, for these items, on the provisions of CRC (French accounting standards committee) regulation 2000 ‑ 05, the Group uses a discount rate equating to a prudently estimated rate of return on assets when discounting reserves for non ‑ life annuities (annuities in service and deferred annuities).

The adequacy tests carried out on liabilities as at 31 December 2022 were found to be satisfactory and did not result in the recognition of any additional underwriting expense. Measurement of reserves for non ‑ reported and late claims (IBNR) The non ‑ life outstanding claims reserve totalled €13,986 million as at 31 December 2022. These reserves are valued using an actuarial approach, defined in accordance with a Group methodology. By means of valuations of final costs based on payment or cost triangles (depending on the risk segment), this method determines the sufficient amount of outstanding claims reserve. This valuation includes the valuation of delinquent claims and expected recoveries in its approach. Long ‑ term care The total amount of reserves relating to long ‑ term care risk stood at €660 million as at 31 December 2022. This figure was determined based on reserves valued using an economic approach (best estimate) at a discount rate of 2.00% including a prudence factor for long ‑ term care and home ‑ care insurance portfolios. The best estimate reserve is valued using the same forward ‑ looking model as that used to justify the adequacy of employee welfare reserves. The biometric and economic assumption other than the discount rate are also the same.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES