BPCE - 2018 Registration document

5 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, Groupe BPCE records technical reserves related to the commitments toward insured persons. The valuation of these provisions is based notably on calculation models and underlying assumptions such as for example, actual mortality rates and behavior requiring the exercise of judgement by the preparers of the financial statements. Considering that it represents a significant amount in the consolidated financial statements, we deemed the valuation of these reserves to be a key audit matter in 2018. The technical reserves of the insurance contracts amount to € 89.1 billion at December 31, 2018. Please see Note 9.1.2 to the consolidated financial statements for further details.

We used our experts, the actuaries, to assist us in performing our audit procedures on these items. The main audit procedures implemented include, depending on the nature of the risks provisioned to: obtain an understanding of the general conditions relating to ● insurance contracts marketed by the group; evaluate the methods and assumptions used to calculate the ● reserves, specifically their compliance with applicable regulations, market practices and the economic and financial context; test, on the basis of accounting reconciliations, recurrence tests, or ● surveys, the reliability of information relating to insurance contracts recorded in the management systems and used for the valuation of technical reserves; carry out an independent recalculation of specific reserves, when ● necessary on the basis of a sampling of contracts; assess the methods of calculation and the result of the adequacy of ● liabilities test, as required by IFRS 4. We also examined the disclosures published in the notes to Groupe BPCE’s consolidated financial statements relating to insurance liabilities and took note of the conclusions of CNP Assurances’ Statutory Auditors, consolidated by Groupe BPCE using the equity method.

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Registration document 2018