BPCE_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT Statutory Auditors’ report on the consolidated financial statements

Insurance Technical Reserves

Risk identified and main judgements

Our response

Within the scope of its insurance activities, BPCE SA group records technical reserves related to the commitments toward insured persons. We deemed the valuation of these reserves to be a key audit matter consideringthat it representa significantamount in the consolidated financial statements and require judgement in some cases when determiningassumptions(example: experience tables and behavioral laws) or calculationmodelsused. The technical reserves of the insurance contracts amount to € 76.6 billion at December 31, 2017, of which € 68.3 billion relatedto the life insurancebusiness. Referto note 5.18of the consolidatedfinancialstatements.

We used our experts, the actuaries, to assist us in performing our audit procedures onthese items. The main audit procedures implemented include, depending on the nature of the risks provisioned to: obtain a understanding of the general conditions relating to ● insurance contractsmarketedby the group; evaluate the methods and assumptions used to calculate the ● reserves, specifically their compliance with applicable regulations, market practicesand theeconomicand financialcontext; test, on the basis of accountingreconciliations,recurrencetests, or ● surveys, the reliability of information relating to insurance contracts recorded in the managment systems and used for the valuation of technical reserves; carry out an independent recalculation of specific reserves, when ● necessary onthe basis of asampleof contracts; assess the methodsof calculationand the result of the adequacyof ● liabilitiestest, as required by IFRS4. We also examinedthe informationpublishedin the notes to BPCE SA group’s consolidated financial statements relating to insurance liabilities and took note of the conclusions of CNP Assurances’ statutory auditors, consolidated by BPCE SA group using the equity method.

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Registration document 2017