Groupama // Universal Registration Document 2022

7

FINANCIAL STATEMENTS Combined financial statements and notes

4.2 Risk management Stress tests are regularly conducted on both assets and liabilities in order to ensure that in the event of a simultaneous increase in benefits payable and interest rates, the Group is able to meet its commitments in terms of both assets to dispose of and any realisations of capital losses. At the end of 2022, the rise in interest rates caused the bond portfolio to be in the red. Nevertheless, the liquidity of the portfolios remains good. In addition to the cash reserves in the portfolios, the work carried out on a line ‑ by ‑ line basis shows significant capacities for divestment without net capital losses, particularly in Groupama Gan Vie.

4.3 Financial investment portfolio by maturity The profile of the annual maturities of bond portfolios is given in Note 7.8.2 to the annual financial statements.

4.4 Liabilities relating to insurance policies and liabilities relating to financial contracts with discretionary profit sharing by maturity The profile of annual maturities of the liabilities related to insurance policies is the following:

31.12.2022

31.12.2021

< 1 year 1 to 5 years > 5 years

Total

< 1 year 1 to 5 years > 5 years

Total

(in millions of euros)

Non ‑ life underwriting reserves Life underwriting reserves - insurance policies excluding unit ‑ linked items

8,260

4,480

6,655 19,395

7,661

4,382

6,457 18,500

2,383

5,724 25,799 33,905

2,337

5,772 25,933 34,041

Underwriting liabilities relating to financial contracts with discretionary profit sharing excluding unit ‑ linked items Underwriting liabilities relating to financial contracts without discretionary profit sharing excluding unit ‑ linked items Reserve for deferred profit ‑ sharing liability TOTAL UNDERWRITING INSURANCE LIABILITIES AND LIABILITIES FOR FINANCIAL CONTRACTS

763

2,077

7,317 10,157

723

2,348

7,682 10,752

14

14

1

3

2

5

4,686

118

4,804

11,408 12,282 39,787 63,477 15,407 12,502 40,190 68,098

Most underwriting liabilities relating to financial contracts, with and without discretionary profit sharing, may be redeemed at any time. The table above proides an economic overview of the liquidation of insurance underwriting liabilities.

Groupama SA must be conducted. They are specific to each business line and each key process. Operational risks are identified and associated permanent controls are formalised across the Group, at every stage of business line and functional processes, based on benchmarked Group processes and the Group classification of operational risks. The operational risk control system is based on three levels of control with responsibility and control plans appropriate to each level: internal ‑ check type permanent monitoring of the operational level and permanent management control, ■ permanent controls operated by the Permanent Control/ Compliance Function of each entity, ■ periodic controls undertaken by the internal audit team of each entity; ■ the definition and assessment of major Group operational risks and adaptation into major entity ‑ level risks, which, as with insurance and financial risks, function on the basis of a network of risk owners with management and coordination of the entire system by the Group’s operational risk and permanent control and Compliance Departments; ❯

4.5 Financing debts by maturity The principal features of financial debt, as well as its breakdown by maturity, are provided in Note 26 herein – Financial Debt.

5.

Operational, legal, regulatory, and tax risks Operational risks

5.1

Operational risks are managed in accordance with the principles and rules defined in the Group and Groupama SA operational risk management policy (see point 1). Groupama’s operational risk management system is based on: the definition of internal management rules and operational procedures defining the manner in which the activities of ❯

288

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES