Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Annual financial statements and notes

1 Significant events of the year

1.1 (a)

Financial strength Financial rating

(c) Property On 19 September 2002, Groupama announced the sale of its building at 150 avenue des Champs ‑ Elysées to the Cheval Paris investment fund. This sale made it possible to immediately externalise the value creation that was possible to achieve at the end of the restructuring project undertaken in 2009 and planned until 2027. Responsible investments At the end of June 2022, the Groupama group published its ESG Climate Report “Responsible Investment” online, which meets legal obligations in terms of non ‑ financial reporting, particularly the first year of implementation of the new Article 29 of the Climate law in France. In this report, the Group highlights the various dimensions of its action to fight climate change and protect biodiversity and announces its new commitments: €1.2 billion in additional sustainable investments between 2022 and 2024; ❯ 50% reduction in the carbon intensity of equity and bond portfolios between 2021 and 2030, in line with the Paris Agreements; ❯ strengthening of the Group’s policy on non ‑ conventional energies in 2022, with the end of all new direct investments in companies contributing to the development of new non ‑ conventional oil and gas projects, while continuing to support and finance companies wishing to contribute to the energy transition (subsidiary or project dedicated to financing the energy transition, green bonds, etc.). ❯ (d) In accordance with the Green Bond Framework, on 8 July 2022, Groupama Assurances Mutuelles published its first annual report on the use of the amount of its green subordinated bond issued in 2021 and the principal environmental impacts of the underlying projects. All of the €500 million issued was allocated to green projects, according to the following breakdown:

On 10 June 2022, Fitch Ratings raised Groupama’s rating to “A+” with a “Stable” outlook. This rating upgrade reflects Fitch’s view that Groupama has consolidated its very strong capitalisation in 2021, while maintaining moderate leverage, strong financial performance and a stable risky asset profile. The rating also reflects the Group’s very solid commercial profile in France.

(b)

Redemption of perpetual subordinated bonds

On 10 October 2022, Groupama announced the redemption of €228.9 million of its perpetual subordinated bonds issued in 2014 for €1.1 billion. This operation contributed to the proactive management of Groupama’s capital structure.

1.2 (a)

Business Inclement weather

The exceptionally high level of weather ‑ related claims that marked 2022 resulted primarily from the successive violent hailstorms in many French regions between 20 May and the end of June and from the tornadoes in northern France in October. The cost of these natural disasters (excluding drought) for insurers is estimated at €7.5 billion in France (source: AGEFI). To deal with this crisis, Groupama mobilised experts in the field to support its affected policyholders.

(b)

Impacts of macroeconomic conditions (inflation, interest rate environment) in measuring underwriting reserves

Outstanding claims reserves reflect the best estimate of liabilities to policyholders. In particular, 2022 resulted in a significant change in macroeconomic conditions that determine the parameters for calculating this estimate (changes in the revaluation indices of certain types of claims, observed increase and highly probable upward trend in the costs of settling claims incurred as of 31 December 2022, taking into account the change in the interest rate environment). These various items can have significant effects depending on the Group’s segments and components, but ultimately resulted in a slightly negative impact on Groupama Assurances Mutuelles.

green property: 60.8%; ❯ infrastructure: 37.6%; ❯ forests: 1.6%. ❯

The Group stepped up its responsible investment policy and its commitments to the energy transition by joining the Net ‑ Zero Asset Owner Alliance this year, backed by the United Nations, and by joining the United Nations Principles for Responsible Investments as an investor.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES