Analyst

Today, Groupama announced the issue of Euro-denominated Fixed Rate subordinated notes placed with institutional investors for an aggregate principal amount of EUR 650 million, with an annual coupon of 6.000 per cent. This transaction is part of Groupama's active capital management strategy. The purpose was to extend the average maturity of the group's liability profile and to reinforce its financial flexibility.

As a result of the enactment of the "Sapin 2", the legislative framework required for the transformation of Groupama Group's central body into a mutual insurance company ("Société d'Assurance Mutuelle") is now in place with an implementation deadline of 18 months. Groupama SA will become the "Caisse Nationale de Réassurance Mutuelle Agricole Groupama" (Groupama National Agricultural Reinsurance Mutual), retaining all the responsibilities associated with its role as the central body of Groupama Group.

With this transformation, Groupama reaffirms its mutual insurance identity rooted in the regions, and simplifies the group structure by bringing its organisation and its values in line to better serve its members and customers.

Regulatory and prudential authorities, both in France and Europe, have given formal approval for the acquisition by Orange of 65% of the capital of Groupama Banque, which will be renamed Orange Bank as from January 2017.

As part of the review of the draft law "Sapin 2" relating to transparency, fight against corruption and modernisation of the economy, an amendment was tabled for review by the Finance Committee of the National Assembly on 24 May 2016, whose aim is to change the legal governing structure of Groupama by transforming Groupama SA, the group's central body, into a national mutual agricultural reinsurance group with the status of a mutual insurer.

Groupama SA 2015 Registration Document was filed with the Autorité des Marchés Financiers (French Financial Markets Authority) on 28 April 2016. It is available in French and in English.

Orange and Groupama have signed an agreement that aims to enable the development of an innovative, 100% mobile banking service. This agreement concludes the exclusive discussions that have been ongoing between the two Groups since January and paves the way for the acquisition by Orange of a 65% stake in Groupama Banque. Groupama will retain the remaining 35%.

Alongside ICMI - a holding company owned by Jean-Michel Aulas, founder and Chairman of Cegid Group ("Cegid") - Groupama announced today that it has entered into an agreement with the Silver Lake - AltaOne consortium with a view to selling its stake in Cegid for 154.5 million euros.

Strong increase in net income

Today, Groupama and Orange announce that they are entering exclusive negotiations with a view to working in partnership to develop a new banking model that will enable Groupama to strengthen its online banking business and Orange to successfully diversify into banking services. These negotiations could result in the acquisition by Orange of a 65% stake in Groupama Banque, enabling it to benefit from an existing operational infrastructure for the launch of Orange Bank.