Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Combined financial statements and notes

2.3 Terms and conditions of insurance policies having a material impact on the amount, maturities, and uncertainty of the insurer’s future cash flows General description The Group offers a broad range of non ‑ life insurance products designed for individuals, local authorities and businesses. The motor, individual, professional and agricultural property damage policies offered by the Group are generally one ‑ year contracts with tacit renewal, which include third ‑ party liability coverage. The Group offers a full range of life insurance products, aimed at consumers individually as individual policies and at business in the form of group policies. The main individual insurance policies in euros offered to our clients are savings policies, term life policies, mixed insurance policies, deferred annuity policies with mandatory withdrawal in annuities, and deferred capital contracts with return of premiums. The Group policies offered by the Group are essentially defined contribution pension plans and pension contracts by collective capitalisation in points with a point value. 2.3.1 2.3.1.1 The Group also sells multi ‑ vehicle policies with a euro ‑ denominated investments component and one or more unit ‑ linked components. SPECIFIC FEATURES OF CERTAIN NON ‑ LIFE INSURANCE POLICIES As with other insurers, the income and financial position of Groupama may be affected quite significantly by the unanticipated and random occurrence of natural or man ‑ made disasters, such as floods, drought, landslides, storms, earthquakes, riots, fire, explosions, or acts of terrorism. For example, the storm suffered in France in December 1999 resulted in major damage and a significant increase in compensation claims by Groupama customers. Climate changes that have occurred in recent years, specifically global warming, have contributed to increasing the unpredictable nature and frequency of climate events and natural events in regions where Groupama is active, particularly in Europe, and have created new uncertainty as to Groupama’s future risk trends and exposure. Groupama is implementing a reinsurance programme to limit the losses it is likely to suffer as a result of events or other events affecting its underwriting results. The reinsurance programmes implemented by Groupama transfer a portion of the losses and corresponding expenses to the reinsurers. These programmes are supplemented by the issuance of a “cat bond” on the high tranche of the force ‑ of ‑ nature protections. However, as an issuer of policies covered by reinsurance

2.3.1.2 SPECIFIC FEATURES OF CERTAIN LIFE INSURANCE POLICIES AND FINANCIAL CONTRACTS a) Discretionary profit ‑ sharing clause Certain life insurance, savings and retirement products offered by the Group contain a discretionary profit ‑ sharing clause. This profit sharing must at least meet regulatory and/or contractual constraints. Commercial considerations may lead to an increase in such profit ‑ sharing. This increase, the amount of which is left to the insurer’s discretion, gives policyholders a share of the profits generated by the insurance company’s financial management and net underwriting income. b) Early redemption options Most of the savings and retirement products may be surrendered by the policyholders at a value defined by the policy before maturity. Large redemptions may have significant impact on the results or the solvency in certain unfavourable environments. c) Specific features of unit ‑ linked policies 2.3.1.3 Most unit ‑ linked policies sold by Groupama do not generally provide for contractual performance. Under these conditions, the policyholder alone directly assumes responsibility for the investment risk. Certain policies may provide for a minimum redemption guarantee in case of the death of the policyholder. MORTALITY AND LONGEVITY RISK In life insurance, the payment of benefits is conditional on the death or the survival of the policyholder. It is the occurrence of one or other of these events that gives the right to payment of a benefit. The probability that these events will occur is estimated through experiential or regulatory statistical tables. In most cases, reserves are calculated using the regulatory tables based on statistics of population change. These tables are regularly revised to take demographic changes into account. Income or Group’s IFRS equity is potentially exposed to risk if demographic change deviates from experience with regard to these reserving tables. policies, Groupama remains committed to all its reinsured risks. Reinsurance policies therefore do not relieve Groupama of the obligation to settle claims. The Group remains subject to risks related to the credit situation of reinsurers and its ability to obtain the payments due from them. Moreover, the reinsurance offering, the amounts that may be covered, and the cost of coverage depend upon market conditions and are likely to vary significantly. Other factors in risk growth may be mentioned: ageing of the population (health, long ‑ term care); ❯ increased pollution; ❯ strengthened case law (liability – compensation for bodily injury, etc.). ❯

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES