Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Combined financial statements and notes

3.1.3.3 We note that the change in fair value of the derivatives and embedded derivatives, which primarily correspond to hedge derivatives, passes through the income statement. FINANCING DEBT SENSITIVITY ANALYSIS Subordinated loans posted to liabilities on the Group income statement may be posted to debt or Group’s IFRS equity under IFRS. In 2014, the Group issued perpetual bonds consisting of perpetual subordinated instruments (TSDI). The features of this issuance meet the criteria to allow the bond to be considered an equity instrument (see Note 23 – Group’s IFRS equity). Consequently, a sensitivity analysis is not required. The principal features of the financial debt instruments analysed are described in Note 26 — Financing Debt. The Group’s subordinated debt is recognised at historical cost. In this respect, this balance sheet item is therefore not sensitive to potential changes in interest rates. Exposure to equity markets allows the companies to capture the yield on these markets but also exposes them to two major types of risks: accounting reserving risk (reserve for long ‑ term impairment, reserve for contingent payment risks, reserves for financial contingencies); ❯ the commercial risk brought about by the reserving risk insofar as policyholder compensation could be impacted by the aforementioned reserving. ❯ The proportion of equity instruments out of total financial investments (including operating properties) was 9.5% by market value, not including exposure to options. Most equity instruments are classified as “available ‑ for ‑ sale assets”. Equity instruments include: equities in French and foreign companies listed for trading on regulated markets. Exposure can also be produced in index form and possibly in the form of structured products ❯ 3.2 3.2.1 Risk of variation in the price of equity instruments (shares) Type of and exposure to equity risk

3.2.2 Group risk management The Group manages its hedging and exposure according to market levels using a tactical approach in 2022 with a re ‑ exposure on low points and partial capping of equity exposure in a highly volatile market environment. The Group also continued its diversification policy by divesting from unlisted shares. The Group manages equities as part of internal constraints under two distinct logics: equities in French and foreign companies that are not listed. They may be held directly or in the form of a venture capital fund (“FCPR”); ❯ shares in French and foreign infrastructure companies. The holding can be direct or through funds. ❯ a primary limit fixing the maximum permissible exposure to equity risk; ❯ a set of secondary limits with the objective of limiting the equity portfolio’s concentration by sector, issuer, or major type as well as illiquid equity categories. ❯ 3.2.3 These limits are observed by each insurance entity and at the Group level. Any exceeding of limits is handled by the appropriate Risk Committees according to whether it occurred in an entity or at Group level. Sensitivity of financial investments to equity risk analysis The table below shows the impacts on net income and the revaluation reserve (classified under Group’s IFRS equity) of a sensitivity analysis carried out in the event of a 10% rise or fall in stock market prices and indices. The impacts are shown after taking the following factors into consideration: the rate of profit sharing of the entity holding the securities; ❯ the current tax rate. ❯ In the 2022 fiscal year, the profit ‑ sharing rate used for entities holding life insurance commitments was in a range of 57.41% to 85.84%. whose performance is partially indexed to an equity index. They may be held directly or within mutual funds (FCP and SICAV);

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES