BPCE - 2018 Registration document

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018

9.2

NOTES TO THE INCOME STATEMENT

9.2.1

Net income from insurance businesses

Accounting principles Net income from insurance businesses includes:

amortization of acquisition costs; ● the external costs of benefits and claims paid on policies which ● include paid benefits and claims on insurance policies and on investment contracts containing a discretionary profit-sharing feature (paid benefits and claims, changes in technical reserves), including policyholder compensation (deferred profit-sharing), as well as changes in the value of investment contracts, particularly for unit-linked policies; income from reinsurance cessions, defined as the sum of ceded ● premiums, net of ceded claims and benefits paid and commissions; where applicable: ● net gains or losses resulting from the derecognition of financial - assets at amortized cost, net gains or losses on the reclassification of financial - instruments at fair value through other comprehensive income to financial assets at fair value through profit or loss.

revenues from the insurance businesses, which consist of ● premiums written and the change in unearned premium reserves for insurance policies and investment contracts containing a discretionary profit-sharing feature within the meaning of IFRS 4; investment income net of expenses: ● investment income including income from investment - properties, investment expenses, and other financial expenses excluding - financing expenses, capital gains and losses on the sale of investments including on - investment properties, depreciation, amortization and impairment reversals on - investments (including investment property) and other assets (including assets provided under operating leases) recognized at amortized cost, the change in fair value of investments (including investment - property) recognized at fair value through profit or loss.

Fiscal year 2018

in millions of euros Premiums written

14,617

Change in unearned premiums

(158)

Earned premiums

14,459

Revenues and other income from insurance businesses

284

Income from investments Expenses on investments

1,787 (100)

Gains or losses on disposals of investments less reversals of impairment and amortization Change in fair value of investments recognized at fair value through profit or loss

83

(1,103)

Change in impairment for investments

(95) 572

Income from investments net of expenses

Amortization of acquisition costs Claims and benefits expenses Income from reinsurance cessions Expenses on reinsurance cessions

24

(12,217)

3,205 (3,233)

Net income or expenses on reinsurance cessions NET INCOME FROM INSURANCE BUSINESSES

(28)

3,094

342

Registration document 2018