NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Consolidated financial statements and notes

Insurance offered primarily covers death, disability, work disability, dependency, damage to persons or property, health, legal protection and financial loss. Related technical reserves are calculated using specialized tables (life, experience and Bureau Commun des Assurances Collectives/BCAC tables). Technical reserves for non-life insurancepolicies include reserves for unearned premium income and for claims to be paid (ndoitscounted). Reservesfor unearnedpremiumincomeareproratedseparatelyfor each insurancepolicy. They correspondto the portion of premiumincome remaining between the fiscal year-end and the premium due date. Claims reserves include an estimate of claims reported but not settled at the reporting date. In addition to the amount of claims payable, a provision is set aside for unknown claims, calculated on a statistical basis by reference to the final amount of claims to be paid following settlement of risks and after any debt recovermy easures. Reserves also include economic hazards related to end-of-year premiums as well as a reserve for management fees. In addition to this statistical estimation, specific reserves are recognized for major disasters based on the probability of default and of severity, estimated on a case-by-case basis. Policy acquisition costs are expensed to the period. In particular, acquisition costs for non-life insurance policies are expensed over the acquisition period of the premiums: the portion of deferred acquisition costs is calculated pro rata to the unearned premiums at the end of the year. Pursuant to paragraph 30 of IFRS 4, insurance policies and investment contracts with discretionary participation (life insurance) are measured using shadow accounting, which consists in recognizing the portion of unrealized gains or losses potentially attributable to policyholdersas a deferred profit-sharingreserve. The deferred profit-sharingreserve thus reflects the potential entitlement of policyholdersto unrealized gains for financial investmentsor their portion of unrealized losses. Considering the pay-out ratio in the 2019 budget and in accordance with the pay-out ratio recorded for 2019, the deferred profit-sharing rate adopted at December 31, 2020 was 87% compared with 89% at December 31, 2019. In the event of net unearned losses, a deferred profit-sharingasset is recognizedup to the amount for which future deferred profit-sharing of policyholders is estimated to be highly probable.

Deferred profit-sharing assets and liabilities arise mainly on: the revaluationof “available-for-salefinancial assets” and “financial V assets at fair value through profit or loss”; the revaluation of real estate assets held to cover insurance V policies; the restatement in the consolidated financial statements of the V capital reserve and the liquidity risk reserve. The change in the deferred profit-sharing asset and liability is recognized: in equity when it relates to changes in the value of V “available-for-sale assets”; in income when it relates to changes in the value of assets “at fair V value through profit or loss” or investment property held to cover insurance policies, as well as changes in provisions for prolonged declines in value in “available-for-sale assets”. Application of the shadow accounting mechanism resulted in the recognition of a deferred profit-sharing liability on December 31, 2020 as on December 31, 2019. In the case of deferred profit-sharing assets, a recoverability test is carried out. Deferred profit-sharingmay be recovered depending on the intention and ability of companies to steer future compensation of contracts according to resources. These are sensitive to: changes in the equity and bond markets; V changes in net inflows, which result from the commercialappeal of V policies and the propensity of policy holders to renew their contracts; available reserves and own resources within companies to hold V assets for a period compatible with changes in liabilities and consistent with market cycles. Prospective analysis of the deferred profit-sharing asset’s recoverability is therefore carried out to demonstrate the ability and intention of companies to meet liquidity requirements over the remaining recoverability period without selling investments in unrealized losses. This process corresponds to a forward-looking view of future cash flows, built following regulatory and contractual conditions applied to contracts and with the help of economic scenarios based on historical probability. (in millions of euros) 2020 2019 Total net deferred profit-sharing asset Total net deferred profit-sharing liability - - 4,692 4,039

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020