NATIXIS // 2021 Universal Registration Document

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

result, collection was higher than before the health crisis: +11% compared to 2019. The 2021 result benefited in particular from the 12% increase in outstandings in the savings business, as well as the good performance of the individual protection business and borrowers' insurance. Its evolution also benefited from a favorable base effect, as fiscal year 2020 was marked by the economic consequences of the health crisis and, in particular, the decline in thequity markets. In terms of underwriting risk: in property and casualty insurance: claims were at higher levels V than in 2020, a year marked by several lockdowns that led to a decline in motor insurance claims. The deterioration in the MRH (Multi-Risk Residential) loss ratio was mainly due to the recording of serious claims and weather events; in personal insurance: claims in personal protection and in V borrowers' insurance improved in 2021, due to reversals of provisions. Gross operating income from Insurance activities posted positive growth. In addition, the SCR (Solvency Capital Requirement) was hedged at December 31, 2021, thanks in particular to a favorable economicand financial environment. The various actions implemented in recent years, in particular in terms of financial hedging, reinsurance, diversification of activities and investment management, have contributed to the resilience of Natixis Assurances’ solvency. It should be noted that the potential deterioration in the economic and financial environment, in particular the decline in the equity markets and the level of interest rates, could adversely affect the solvency of Natixis Assurances, by negatively affecting future margins. Directive (EU) 2014/59 establishing a framework for the recovery and resolution of credit institutions and investment firms (“ BRRD 1 ”), transposed into French law by order No. 2015-1024 of August 20, 2015 which also adapted French law to the provisions of European Regulation 806/2014 of July 15, 2014 which established the rules and a uniform procedure for the resolution of credit institutions under a single resolution mechanism and a single Bank Resolution Fund, aim in particular to set up a single resolution mechanism giving resolution authorities a “bail-in” power aimed at combating systemic risks attached to the financial system and in particular at avoiding financial intervention by governments in the event of a crisis. Directive (EU) 2019/879 of May 20, 2019 (“ BRRD 2 ”, and together with BRRD 1, the “ BRRD ” regulation) amended BRRD 1 and was transposed into French law by order No. 2020-1636 of December 21, 2020. In particular, the powers provided for by the BRRD regulation allow the resolution authorities, in the event that a financial institution or the group to which it belongs subject to BRRD becomes or is close to defaulting, to write down, cancel or convert into shares, the securities and eligible liabilities of this financial institution. In addition to the possibility of using this “bail-in” mechanism, the BRRD grants the resolution authorities more extensivepowers, allowing them in particular to (1) force the entity to recapitalize itself in order to comply with the conditions of its authorizationand continue the activities for which it is approvedwith a sufficient level of confidence on the part of the markets; if necessary, by modifying the legal structure of the entity, and (2) reduce the value of the receivables or debt instruments, or convert them into equity securities for transfer to a bridging Risk related to holding Natixis securities Holders of Natixis securities and certain other Natixis creditors may suffer losses if Natixis should undergo resolution proceedings

A deterioration in market conditions, and specifically excessive movements in interest rates, either upward or downward, could have a material adverse impact on Natixis’ Personal Insurance business and its profit The main risk to which Natixis’ insurance subsidiariesare exposed in their Personal Insurancebusiness is market risk. Exposure to market risk is mainly related to the capital guarantee on the scope of euro-denominated savings products. Among these market risks, interest rate risk is structurallysignificant for Natixis Assurances as its general funds include a high bond component. Fluctuations in interest rates may: in the case of higher rates, reduce the competitiveness of the V euro-denominated offer (by making new investments more attractive) and cause waves of redemptions on unfavorable terms with unrealized capital losses on outstanding bonds; in the case of lower rates, in the long term make the return on the V general funds too low to meet their capital guarantees. Due to the allocation of general funds, the widening of spreads and the decline in the equity markets could also have a significant negative impact on the results of Natixis' personal insurance business, through the creation of provisions for impairment due to the decrease in the valuations of investments at fair value through profit or loss. A mismatch between the insurer’s expected claims expense and the actual benefits paid out by Natixis to policyholders could have a material adverse impact on its Property & Casualty Insurance business and on the protection portion of its Personal Insurance business, as well as on its results and financial position The main risk to which Natixis’ Insurance affiliates are exposed in their activities is underwriting risk. This risk results from a mismatch between, first, the claims actually incurred and the benefits actually paid as compensation for these claims and, second, from the assumptions that the subsidiaries use to price their insurance products and to establish technical reserves for potential compensation. Natixis uses both its own experience and industry data to develop claims rate and actuarial estimates, including to determine the price of insurance products and establish the related technical reserves. However, there is no guarantee that the actual situations observed a posteriori correspond to these estimates and unforeseen risks such as pandemics or natural disasters could result in the payment to policyholders of amounts greater than those anticipated. As such, changes in climate phenomena (known as “physical” climate risks) are subject to particular vigilance on the part of NatixisAssurances. In the event that the actual benefits paid by Natixis to policyholders are higher than the underlyingassumptions initially used to establish the reserves, or if events or trends were to cause Natixis to change the underlying assumptions, Natixis could be exposed to greater-than-expected liabilities, which could adversely affect its Property& Casualty Insurancebusinessand the protectionportion of its Personal Insurance business, as well as its results and financial position. In the persistent context of the COVID-19 pandemic, the 2021 fiscal year was marked by very dynamic commercial activity in both business lines. Commercial activity for 2021 showed significant growth compared to 2020. At €14.6 billion, revenue at the end of 2021 was up 32% compared to the end of 2020. This growth can be seen in all insurance activities, and was mainly driven by savings (+39%) which benefited from strong momentum compared to very low inflows in the first half of 2020 in connection with the first confinement. As a

3

109

www.natixis.com

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021