Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Annual financial statements and notes

3.2.3 Investment income and expenses Financial income includes the revenue from investments received during the fiscal year (rent, dividends, coupon payments, interest on loans and current accounts). Other investment income includes the pro ‑ rata share in the discount on the bond redemption differences and reversals of reserves for loss in value of investments. Other investment expenses include the percentage of appreciation on the differences in redemption of bonds, and the depreciation allowance and reserves for investments, and the percentage of general expenses corresponding to investment ‑ management activities. The capital gains or losses on marketable securities are determined by applying the first ‑ in first ‑ out method (FIFO), and they are recorded in the income statement. For these same securities, a reversal is made during the year they are sold for the cumulative amortisation & impairment of the premium or discount recorded up to the date of sale. In non ‑ life insurance, investment income and expenses are recorded on the non ‑ operating income statement. A portion of financial income reverting to underwriting reserves is transferred to the non ‑ life underwriting income statement on a basis prorated to the underwriting reserves and shareholders’ equity.

3.3.2 Management fees and commissions Management fees incurred by Groupama Assurances Mutuelles are recorded according to their nature within the de facto Groupama Assurances Mutuelles group; expenses pertaining to other members of the de facto group are billed back to them. They are then classified for the presentation of the financial statements according to their purpose, by applying allocation keys. These keys are determined analytically and reviewed annually according to the Groupama Assurances Mutuelles internal structure and organisation. The management costs are classified under one of the following five categories: claims settlement costs, which specifically include claims services expenses and claims dispute expenses; ❯ acquisition expenses, which factor in a part of the commissions of the regional mutuals, commissions paid for direct business and other inward reinsurance, advertising, and marketing expenses; ❯ administrative costs, which include a portion of the commissions of the regional mutuals and management expenses for direct business and inward reinsurance; ❯ investment expenses, which specifically include investment management services, including fees, commissions, and brokerage commissions paid; ❯ other operating expenses, which include expenses that cannot be assigned directly or by applying a cost to one of the other categories. ❯ Expenses arising from activities with no operating connection with the insurance business are reported as other non ‑ operating expenses. 3.3.3 Foreign currency transactions In accordance with Article 243 ‑ 1 of ANC regulation 2015 ‑ 11, operational foreign currency position accounts, converted at the inventory price and the equivalent in euros, are offset against foreign exchange income. For structural transactions, the foreign exchange difference is posted to the balance sheet in unrealised foreign exchange adjustment accounts.

3.2.4 Forward sale financial instruments Groupama Assurances Mutuelles no longer holds any forward financial instruments as of 31 December 2022.

3.3 3.3.1 Other transactions Intangible assets Intangible assets consist primarily of:

The software carries a reserve, if necessary, to recognise an additional impairment deemed to be irreversible at the year end. IT development expenses amortised over a period of 3 to 5 years by the straight ‑ line method; ❯ acquired software amortised over a period of 1 to 4 years by the straight ‑ line method; ❯ developed software amortised over a period of 3 or 4 years by the straight ‑ line method. ❯

3.3.4 Receivables Receivables are recorded at their face redemption value (historical cost). They include, in particular:

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES