NATIXIS - Universal registration document and financial report 2019

1 PRESENTATION OF NATIXIS Natixis’ businesses

In terms of location, most of the Insurance division’s activity is in France via companies established in France. The Personal Insurance business line, however, owns a Luxembourg-based entity specialized in life insurance products for Wealth Management clients, and is a client of the BPCE networks and non-Group entities in various EU countries. It also owns an entity in Lebanon through an equity interest in a subsidiary in partnership with a local private bank. The Insurance division was created in 2014, in line with Groupe BPCE’s strategic ambition to become a fully-fledged bancassurance player primarily serving clients from the two main banking networks of Groupe BPCE: the Banque Populaire and Caisses d’Epargne savings banks. This strategic drive resulted in the following major structural transactions: in March 2014, Natixis Assurances acquired 60% of BPCE V Assurances, a non-life insurance company created to serve customers of the Caisse d’Epargne network, and in 2017 bought the remaining 40% stake previously held by MACIF and MAIF. As a Insurance division’s operating environment Launched at the end of 2017, the division’s strategic plan, New Dimension 2018-2020, aims to cement Natixis Assurances’ position as a front-running insurer in France, by delivering a differentiated customer experience and top-flight operating performances. The new plan will span the property & casualty arm’s entire value chain by creating a single management platform run by Natixis Assurances to better serve the Banque Populaire banks and the Caisse d’Epargne banks (the Innove#2020 project). Over the last few years, the Insurance division has been operating in unprecedented market conditions: macroeconomic and financial shifts have resulted in the implementation of monetary policies with significant impacts on life insurance policies for retirement savings, and, to a lesser extent, for the non-life insurance business. In particular, historically low interest rates, which are the main source of revenue for life insurance players, have led to significant changes in product and investment strategies: life insurance products were aimed to improve the sharing of V outcomes among the various stakeholders in order to ensure balance between sustainable business competitiveness and solvency protection in the medium term. Similarly, the Personal Insurance business line has responded to the sharp decline in market interest rates by lowering the revaluations incorporated into its policies. This has allowed it to accumulate a significant profit-sharing reserve representing nearly two years of revalued outstandings at the end of 2019. This reserve could be used as a significant cushion to supplement “policy” revaluations over the next eight years; a variety of commercial initiatives targeted at end-customers and V the business provider networks, aimed at increasing the share of inflows and assets invested in unit-linked products; the steady decline in returns from traditional fixed-rate assets has V led to a number of changes in asset management policy: the diversification of fixed-income investments towards private V debt, the gradual reallocation of the equity bucket towards V recurring-dividend shares, development of a bucket for unlisted investments in Private V Equity and real estate.

result of this transaction, Natixis Assurance became the sole shareholder of BCPE Assurances. With the renegotiation of the partnership agreement with Covéa, BPCE Assurances will handle new non-life insurance business with the individual customers of the Banque Populaire banks in addition those of the Caisse d’Epargne banks; the renegotiation of the terms of the existing partnership between V Groupe BPCE and CNP Assurances, finalized in the first quarter of 2015. Accordingly, the distribution of life insurance policies for retirement savings and personal protection insurance, handled by the Personal Insurance business line, was extended to the Caisse d’Epargne network, with effect from January 1, 2016. Natixis’ Insurance division, through its different operational entities, now offers a comprehensive range of life and non-life insurance policies, with the Banque Populaire and Caisse d’Epargne banks being the main contributors to the business. In addition, the insurance business is monitored via prudential and regulatory oversight, a process that has seen significant changes: the Solvency II Directive came into effect on January 1, 2016, V resulting in changes in organizational structure, operating procedures and the assessment of minimum solvency as required for developed activities. In the current environment of historically low interest rates, this change constitutes a major challenge. The division prepared for this challenge by modifying its governance and risk management processes; similarly, new regulations have come into force in the insurance V sector (PRIIPS, IDD, GDPR, easier termination of payment protection insurance), all of which are likely to lead to changes to products and operating procedures; finally, the upcoming entry into force of IFRS 9 and IFRS 17 will V oblige the Insurance division to adapt its financial and technical management; Natixis Assurances is continuing to prepare for the application of these standards as of January 1, 2022. Lastly, the rapid development of digital technology and its application in the development of new methods of distribution and customer interaction is a source of opportunities that the Insurance division is closely monitoring. Accordingly, it has pursued a policy aimed at: digitizing its management processes: the business line intends to V continue the digitization and automation of low-value-added processes in order to become one of the most efficient players in terms of management costs relative to assets under management; In personal insurance, the division rolled out a new multi-site, multi-banner customer relationship model in 2018, with identical organization, tools and customer relations processes for both the Banque Populaire banks and Caisses d’Epargne. A platform for managing estates was also created; adapting subscription processes to incorporate new digital tools V and customer behaviors. A significant share of non-life subscriptions is already carried out and formalized remotely using an electronic signature. Steps have been taken to preempt rapid development in these approaches;

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019