Groupama // Universal Registration Document 2022

7

FINANCIAL STATEMENTS Annual financial statements and notes

Note 11 Underwriting reserves of non ‑ life insurance

11.1 Breakdown of gross underwriting reserves

31/12/2022

31/12/2021

Inward reinsurance from regional mutuals

Inward reinsurance from regional mutuals

Pool and CDA (1)

Other inward reinsurance

Pool and CDA (1)

Other inward einsurance

Total

Total

(in thousands of euros)

Reserves for unearned premiums

10,860 245,181 181,579 437,620 10,894 228,151 156,007 395,052

Reserves for claims

174,091 4,532,721 1,267,300 5,974,112 176,981 3,871,128 1,208,671 5,256,780

Profit ‑ sharing reserves Equalisation reserves

196

196

513

513

2,299 103,364 44,039 149,702

2,351 129,970 41,859 174,179

Other underwriting reserves

38,288 997,667 96,029 1,131,984 59,266 1,029,889 104,257 1,193,412

TOTAL

225,538 5,878,933 1,589,143 7,693,614 249,492 5,259,138 1,511,307 7,019,936

(1) Including underwriting reserves related to contracts written by the Antilles ‑ Guyane regional mutual exempt from licensing.

Measurement of reserves for non ‑ reported and late claims (IBNR) Outstanding claims reserves totalled €5,974 million as at 31 December 2022. These reserves are valued using an actuarial approach, defined in accordance with a Group methodology. By means of valuations of final costs based on payment or cost triangles (depending on the risk segment), this method determines the sufficient amount of outstanding claims reserve. This valuation includes the valuation of delinquent claims and expected recoveries in its approach. Outstanding claims reserves reflect the best estimate of liabilities to policyholders. In particular, 2022 resulted in a significant change in macroeconomic conditions that impact 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 at 31 December 2022). Long ‑ term care Total reserves relating to long ‑ term care risk were

€416.5 million at 31 December 2022 (of which €272.7 million is the reserve for increasing risks). Actuarial reserves for annuities and reserves for claims payable, covering claims in progress, have been determined on the basis of experience data on the long ‑ term care portfolio - rate of continued long ‑ term care – and a technical rate of 0.62% (75% weighted average). Actuarial reserves for increasing risks, covering future claims (likely current value of the insurer’s and policyholders’ commitments), have been determined on the basis of experience data on the long ‑ term care portfolio - rate of beneficiary deaths, differentiated impact per product and continued long ‑ term care – and a underwriting rate of 0.90% intended to reflect the current financial environment. An annual test of sufficiency of long ‑ term care reserves is conducted. In particular, it includes any anticipations of price revisions. Equalisation reserves Groupama Assurances Mutuelles recorded a write ‑ back of equalisation reserves of -€31.1 million as at 31 December 2022 as well as a stability fund reserve allocation of €6.6 million.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES