Obligation Mondial Assurances 6.75% ( FR001400RI88 ) en EUR

Mondial Assurances

100 % ▲

France

FR001400RI88 ( en EUR )

6.75% par an ( paiement annuel )

Perpétuelle - Obligation échue

Prospectus brochure de l'obligation La Mondiale FR001400RI88 en EUR 6.75%, échue

La Mondiale est une compagnie d'assurance française mutualiste spécialisée dans l'épargne retraite et l'assurance vie.

L'obligation perpétuelle émise par La Mondiale (FR001400RI88), cotée en EUR, avec un taux d'intérêt de 6,75% et un prix actuel sur le marché de 100%, a atteint sa maturité et a été remboursée.

INFORMATION MEMORANDUM DATED 15 JULY 2024
LA MONDIALE
EUR500,000,000 Perpetual Fixed Rate Resettable Restricted Tier 1 Notes
Issue Price: 100 per cent.
The EUR500,000,000 perpetual fixed rate resettable restricted Tier 1 notes (the Notes) of La Mondiale (La Mondiale or the Issuer) will be
issued on 17 July 2024 (the Issue Date).
The obligations of the Issuer under the Notes in respect of principal, interest and other amounts, constitute (subject to certain limitations described
in the "Terms and Conditions of the Notes - Status of the Notes Payment on the Notes in the event of liquidation of the Issuer") direct,
unconditional, unsecured and lowest ranking subordinated obligations of the Issuer, including bonds or borrowings, the subordination provisions
of which are governed by the provisions of Article L. 228-97 of the French Code de commerce, and which rank and will rank (a) pari passu with
all other present and future Deeply Subordinated Obligations of the Issuer, but (b) junior to all present and future prêts participatifs granted to
the Issuer, titres participatifs issued by the Issuer, Ordinary Subordinated Obligations of the Issuer, Senior Subordinated Obligations of the Issuer
and Unsubordinated Obligations of the Issuer and (c) senior to all present and future Mutual Certificates of the Issuer as set out in the "Terms
and Conditions of the Notes - Status of the Notes".
The Notes will bear interest on their Prevailing Principal Amount (i) from (and including) the Issue Date, to (but excluding) 17 July 2034 (the
First Reset Date), at a fixed rate of 6.750 per cent. per annum payable semi-annually in arrear on 17 January and on 17 July in each year
commencing on 17 January 2025, and (ii) from (and including) the First Reset Date, at the relevant Reset Rate of Interest payable semi-annually
in arrear on 17 January and on 17 July in each year, commencing on 17 January 2035, as further specified in "Terms and Conditions of the Notes
-- Interest".
The Issuer may elect at any time to cancel (in whole or in part) any Interest Payment (as defined herein) otherwise scheduled to be paid on an
Interest Payment Date and shall, save as otherwise permitted pursuant to the Conditions, cancel an Interest Payment upon the occurrence of a
Mandatory Interest Cancellation Event (as defined herein) with respect to that Interest Payment. The cancellation of any Interest Payment shall
not constitute a default or event of default for any purpose on the part of the Issuer. Any Interest Payment (or part thereof) which is cancelled
in accordance with the Conditions shall not become due and payable in any circumstances.
Upon the occurrence of a Trigger Event (as defined herein), any interest which is accrued and unpaid up to (and including) the Write-
Down Date (as defined herein) shall be automatically cancelled and the Issuer shall without the need for the consent of the Noteholders
write-down the Notes by reducing the Prevailing Principal Amount (as defined herein). A Write-Down (as defined herein) of the Notes
shall not constitute a default or an event of default in respect of the Notes or a breach of the Issuer's obligations or duties or a failure
to perform by the Issuer in any manner whatsoever, and shall not entitle Noteholders to petition for the insolvency or dissolution of the
Issuer or to take any other action. Following any reduction of the Prevailing Principal Amount, the Issuer may, at its discretion, increase
the Prevailing Principal Amount of the Notes on any date and in any amount that it determines in its discretion (either to the Principal
Amount or to any lower amount) provided that several conditions are met, as set out in "Terms and Conditions of the Notes 
Discretionary Reinstatement".
The Notes do not contain any negative pledge or events of default.
The Issuer will have the right to redeem the Notes in whole, but not in part, at any time from the First Call Date to and including the First Reset
Date or on any Interest Payment Date thereafter, as defined and further described in "Terms and Conditions of the Notes - Redemption and
Purchase - Optional Redemption from the First Call Date". The Issuer may also, at its option and subject to Condition 6.9 ("Redemption and
Purchase Conditions to Redemption and Purchase"), redeem the Notes upon the occurrence of certain events, including a Gross-up Event, a
Withholding Tax Event, a Tax Deductibility Event, a Regulatory Event, a Rating Methodology Event or if the conditions for Clean-up
Redemption are met, all as further described in "Terms and Conditions of the Notes - Redemption and Purchase". All redemptions are subject to
the Prior Approval of the Relevant Supervisory Authority.
Application has been made to Euronext Growth, a market of Euronext in Paris (Euronext Growth) for the Notes to be admitted to trading on
Euronext Growth. Euronext Growth is a multilateral trading facility and is not a regulated market for the purposes of Directive 2014/65/EU of
the European Parliament and of the Council on markets in financial instruments, as amended.
The Notes will be issued in bearer dematerialised form (au porteur) in the denomination of EUR100,000. The Notes will at all times be in book-
entry form (inscription en compte) in compliance with Articles L.211-3 et seq. and R.211-1 et seq. of the French Code monétaire et financier.
No physical documents of title (including certificats représentatifs pursuant to Article R.211-7 of the French Code monétaire et financier) will
be issued in respect of the Notes. The Notes will, upon issue, be inscribed in the books of Euroclear France (Euroclear France) which shall
credit the accounts of the Account Holders. Account Holder shall mean any financial intermediary institution entitled to hold, directly or
indirectly, accounts on behalf of its customers with Euroclear France, and includes Euroclear Bank SA/NV (Euroclear) and the depositary bank
for Clearstream Banking, SA (Clearstream).
The Notes have been rated BBB by S&P Global Ratings Europe Limited (S&P). The Issuer's long-term senior unsecured debt is rated "A"
(stable outlook) by S&P. S&P is established in the European Union and registered under Regulation (EC) No. 1060/2009 of the European
Parliament and of the Council of 16 September 2009 on credit rating agencies (as amended) (the CRA Regulation) and included in the list of
credit rating agencies registered in accordance with the CRA Regulation published on the European Securities and Markets Authority's website
(https://www.esma.europa.eu/credit-rating-agencies/cra-authorisation) as of the date of this Information Memorandum. A rating is not a
recommendation to buy, sell or hold securities and may be subject to revision, suspension, change or withdrawal at any time by the assigning
rating agency.

IMPORTANT NOTICE
This information memorandum (the Information Memorandum) does not constitute a prospectus within the meaning of article 6.3 of and for
the purpose of Regulation (EU) 2017/1129, as amended.
No such information memorandum will be approved by the Autorité des marchés financiers for the purpose of the listing and admission to trading
of the Notes on Euronext Growth.
The Notes shall only be offered to qualified investors (investisseurs qualifiés) within the meaning of Regulation (EU) 2017/1129, as
amended.
Euronext Growth is a market operated by Euronext. Issuers on Euronext Growth market, a multilateral trading facility (MTF, are not subject to
the same rules as issuers on a regulated market. Instead, they are subject to a less extensive set of rules and regulations adjusted to small growth
companies. The risk in investing in the securities admitted on Euronext Growth may therefore be higher than investing in securities admitted to
trading on a regulated market. Investors should take this into account when making their investment decisions.

Copies of this Information Memorandum will be available on the website of the Issuer (www.ag2rlamondiale.fr).
Prospective investors should have regard to the risk factors described under the section headed "Risk Factors" in this Information
Memorandum, in connection with any investment in the Notes.

Global Coordinator and Structuring Advisor
NATIXIS
Joint Bookrunners
BARCLAYS
BBVA
NATIXIS
SOCIÉTÉ GÉNÉRALE CORPORATE AND INVESTMENT BANKING

This Information Memorandum should be read and construed in conjunction with all documents incorporated
by reference herein (see "Documents Incorporated by Reference").
Certain information contained in this Information Memorandum and/or documents incorporated herein by
reference has been extracted from sources specified in the sections where such information appears. The
Issuer confirms that such information has been accurately reproduced and that, so far as it is aware and is
able to ascertain from information published by the above sources, no facts have been omitted which would
render the information reproduced inaccurate or misleading. The Issuer has also identified the source(s) of
such information.
References herein to the Issuer are to La Mondiale. References to the Group are to the Issuer, together with
its fully consolidated subsidiaries taken as a whole. References to SGAM are to the prudential group of SGAM
AG2R La Mondiale evolving from time to time.
No person has been authorised to give any information or to make any representation other than those
contained in this Information Memorandum in connection with the issue or sale of the Notes and, if given or
made, such information or representation must not be relied upon as having been authorised by the Issuer or
any of the Joint Bookrunners (as defined in "Subscription and Sale"). Neither the delivery of this Information
Memorandum nor any offering or sale made in connection herewith shall, under any circumstances, create
any implication that there has been no change in the affairs of the Issuer or those of the Group since the date
hereof or the date upon which this Information Memorandum has been most recently supplemented or that
there has been no adverse change in the financial position of the Issuer or that of the Group since the date
hereof or the date upon which this Information Memorandum has been most recently supplemented or that any
other information supplied in connection with the issue of the Notes is correct as of any time subsequent to the
date on which it is supplied or, if different, the date indicated in the document containing the same.
This Information Memorandum does not constitute an offer to sell or the solicitation of an offer to buy any
Notes in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such
jurisdiction. The distribution of this Information Memorandum and the offer or sale of Notes may be restricted
by law in certain jurisdictions. The Issuer and the Joint Bookrunners do not represent that this Information
Memorandum may be lawfully distributed, or that any Notes may be lawfully offered, in compliance with any
applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available
thereunder, or assume any responsibility for facilitating any such distribution or offering. In particular, no
action has been taken by the Issuer or the Joint Bookrunners which would permit a public offering of the Notes
or distribution of this Information Memorandum in any jurisdiction where action for that purpose is required.
Accordingly, no Notes may be offered or sold, directly or indirectly, and neither this Information Memorandum
nor any offering material may be distributed or published in any jurisdiction, except under circumstances that
will result in compliance with any applicable laws and regulations. Persons into whose possession this
Information Memorandum comes are required by the Issuer and the Joint Bookrunners to inform themselves
about and to observe any such restriction. In particular, there are restrictions on the distribution of this
Information Memorandum and the offer or sale of Notes in the United States, the United Kingdom and France
(see "Subscription and Sale").
THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE SECURITIES ACT) OR WITH ANY SECURITIES REGULATORY
AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES. SUBJECT TO
CERTAIN EXCEPTIONS, NOTES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT IN TRANSACTIONS EXEMPT
FROM OR NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. FOR A DESCRIPTION OF
CERTAIN RESTRICTIONS ON OFFERS AND SALES OF NOTES AND ON DISTRIBUTION OF THIS
INFORMATION MEMORANDUM, SEE "SUBSCRIPTION AND SALE".

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The Joint Bookrunners have not separately verified the information contained in this Information
Memorandum. None of the Joint Bookrunners makes any representation, warranty or undertaking, express or
implied, or accept any responsibility or liability, with respect to the accuracy or completeness of any of the
information contained or incorporated by reference in this Information Memorandum or any other information
provided by the Issuer in connection with the issue and sale of the Notes. Neither this Information
Memorandum nor any information incorporated by reference in this Information Memorandum is intended to
provide the basis of any credit or other evaluation and should not be considered as a recommendation by the
Issuer or the Joint Bookrunners that any recipient of this Information Memorandum or any information
incorporated by reference should subscribe for or purchase the Notes. In making an investment decision
regarding the Notes, prospective investors must rely on their own independent investigation and appraisal of
the (a) the Issuer, the Group, its business, its financial condition and affairs and (b) the terms of the offering,
including the merits and risks involved. The contents of this Information Memorandum are not to be construed
as legal, business or tax advice. Each prospective investor should subscribe for or consult its own advisers as
to legal, tax, financial, credit and related aspects of an investment in the Notes. None of the Joint Bookrunners
undertakes to review the financial condition or affairs of the Issuer or the Group after the date of this
Information Memorandum nor to advise any investor or potential investor in the Notes of any information
coming to the attention of any of the Joint Bookrunners. Potential investors should, in particular, read
carefully the section entitled "Risk Factors" set out below before making a decision to invest in the Notes.
Neither this Information Memorandum nor any other information supplied in connection with the issue and
sale of the Notes (a) is intended to provide the basis of any credit or other evaluation or (b) should be
considered as a recommendation by the Issuer or the Joint Bookrunners that any recipient of this Information
Memorandum or any other information supplied in connection with the issue and sale of the Notes should
purchase any Notes. Neither this Information Memorandum nor any other information supplied in connection
with the issue and sale of the Notes constitutes an offer or invitation by or on behalf of the Issuer or the Joint
Bookrunners to any person to subscribe for or to purchase any Notes.
EU MIFID II product governance / Professional investors and ECPs only target market - Solely for the
purposes of each manufacturer's product approval process, the target market assessment in respect of the
Notes, taking into account the five categories referred to in item 19 of the Guidelines published by the
European Securities and Markets Authority (ESMA) on 3 August 2023, has led to the conclusion that: (i) the
target market for the Notes is eligible counterparties and professional clients only, each as defined in Directive
2014/65/EU (as amended, MiFID II); and (ii) all channels for distribution of the Notes to eligible
counterparties and professional clients are appropriate. Any person subsequently offering, selling or
recommending the Notes (a distributor) should take into consideration the manufacturers' target market
assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market
assessment in respect of the Notes (by either adopting or refining the manufacturers' target market assessment)
and determining appropriate distribution channels.
UK MIFIR product governance / Professional investors and eligible counterparties only target market
Solely for the purposes of each manufacturer's product approval process, the target market assessment in
respect of the Notes has led to the conclusion that: (i) the target market for the Notes is only eligible
counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook (COBS) and professional
clients, as defined in Regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 (UK MiFIR); and (ii) all channels for distribution of the Notes to
eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or
recommending the Notes (a UK Distributor) should take into consideration the manufacturers' target market
assessment; however, a UK Distributor subject to the FCA Handbook Product Intervention and Product
Governance Sourcebook (the UK MiFIR Product Governance Rules) is responsible for undertaking its own
target market assessment in respect of the Notes (by either adopting or refining the manufacturers' target
market assessment) and determining appropriate distribution channels.
IMPORTANT PRIIPs Regulation / Prohibition of sales to EEA retail investors - The Notes are not intended
to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available
to any retail investor in the European Economic Area (EEA). For these purposes, a retail investor means a
person who is one (or both) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; or (ii) a

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customer within the meaning of Directive 2016/97/EU as amended, where that customer would not qualify as
a professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently, no key information
document required by Regulation (EU) No 1286/2014 (as amended, the PRIIPs Regulation) for offering or
selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and
therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA
may be unlawful under the PRIIPs Regulation.
IMPORTANT UK PRIIPs Regulation / Prohibition of sales to UK retail investors The Notes are not
intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made
available to any retail investor in the United Kingdom (UK). For these purposes, a retail investor means a
person who is one (or both) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No
2017/565 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018
(EUWA); or (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act,
as amended (FSMA) and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97,
where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of
Regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the EUWA. Consequently, no
key information document required by Regulation (EU) No 1286/2014 as it forms part of UK domestic law by
virtue of the EUWA (the UK PRIIPs Regulation) for offering or selling the Notes or otherwise making them
available to retail investors in the UK has been prepared and therefore offering or selling the Notes or
otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPS
Regulation.
In this Information Memorandum, unless otherwise specified or the context otherwise requires, references to
, Euro, EUR or euro are to the single currency of the participating member states of the European Economic
and Monetary Union which was introduced pursuant to the Treaty establishing the European Community, as
amended.

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TABLE OF CONTENTS
Section
Page
Risk Factors ........................................................................................................................................................ 7
General Description of the Notes ..................................................................................................................... 31
Information Documents Incorporated by Reference ........................................................................................ 48
Terms and Conditions of the Notes .................................................................................................................. 49
Use of Proceeds ................................................................................................................................................ 78
Description of the Issuer ................................................................................................................................... 79
Subscription and Sale ....................................................................................................................................... 90
General Information ......................................................................................................................................... 93
Persons responsible for the information contained in the Information Memorandum ..................................... 96

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RISK FACTORS
The Issuer believes that the following factors may affect its ability to fulfil its obligations under the Notes. All
of these factors are contingencies which may or may not occur and the Issuer is not in a position to express a
view on the likelihood of any such contingency occurring.
Factors which the Issuer believes may be material for the purpose of assessing the market risks associated
with the Notes are also described below.
The Issuer believes that the factors described below represent the principal risks inherent in investing in the
Notes, but the inability of the Issuer to pay interest, principal or other amounts on or in connection with the
Notes may occur for other reasons and the Issuer does not represent that the statements below regarding the
risks of holding the Notes are exhaustive. Prospective investors should read the entire Information
Memorandum. The following is a disclosure of risk factors that are material to the Notes in order to assess
the market risk associated with these Notes and risk factors that may affect the Issuer's ability to fulfil its
obligations under the Notes. Prospective investors should consider these risk factors before deciding to
purchase Notes. The following statements are not exhaustive. Prospective investors should consider all
information provided in this Information Memorandum and consult with their own professional advisers if
they consider it necessary. In addition, investors should be aware that the risks described may combine and
thus intensify one another. The occurrence of one or more risks may have a material adverse effect on the
own funds, the financial position and the operating result of the Issuer.
Each of the risks highlighted below could have a material adverse effect on the business, operations, financial
conditions or prospects of the Issuer or the Group, which in turn could have a material adverse effect on the
amount of principal and interest which investors will receive in respect of the Notes. In addition, each of the
risks highlighted below could adversely affect the trading price of the Notes or the rights of investors under
the Notes and, as a result, investors could lose some or all of their investment.
Words and expressions defined in the section entitled "Terms and Conditions of the Notes" herein shall have
the same meanings in this section. The order in which the following risks factors are presented is not an
indication of the likelihood of their occurrence.
1.
RISK FACTORS RELATING TO THE ISSUER AND THE GROUP
1.1
Market risks
The market risks affect the yield of the assets backing the own funds or the technical provisions of the
Issuer or the Group. Market levels and returns on investment constitute a significant part of the overall
profitability of the Group and fluctuations in financial markets may have a material effect on operating
results.
Global debt and equity market have experienced historical levels of volatility (due in particular to an
accommodating monetary policy by the European Central Bank) and the outlook is uncertain (such
uncertainty being linked for example to energy price trend, currency risks, limited growth, various
geopolitical tensions, etc.).
La Mondiale and its Group are exposed to the following market risks:
Risks related to fluctuations in interest rates
Fluctuations in interest rates may affect the valuation of investments held, the conditions of future
investments and the solvency measurement.
If the interest rates are low for a long time, investment could be affected in a sense that it would not
match the liability requirement. A sustainable maintenance of interest rates at low levels may lead to

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a significant decrease in the return of investment assets due to future investments at this low level.
This could lead to a negative impact on the financial situation and solvency of the Issuer or the SGAM
(as defined in the Issuer's description). This risk could also have an impact on the liquidity and cash
levels of the Issuer. Interest rate risk arises from the difference between the cash flow profiles of assets
and liabilities, as represented by the duration gap. In the event of a significant and rapid rise in interest
rates, the performance gap with bank savings products creates a significant redemption risk on the
euro fund, reducing the ability of the Issuer or the SGAM to increase the return on assets and remain
competitive.
In addition, contracts marketed for individual savings and group or individual retirement plans offer
euro-denominated products, for which the guarantee corresponds to a rate of return commitment to
policyholders. The interest rate risk arises when, in a context of falling interest rates, financial income
no longer enables the Issuer to pay policyholders the guaranteed level of remuneration, while at the
same time deducting its financial and technical margins.
A combination of sustained near zero or negative interest rates for the shortest maturities followed by
a significant increase of these interest rates could lead to higher redemption risk, unrealized capital
losses on bonds or adverse consequences on the cash level of the Issuer. During periods when interest
rates are going up, the price of fixed income securities tends to decrease and gains on sale of such
securities are lower or losses greater. A significant rise in interest rates could lead to the surrender of
savings contracts, even if the investment sensitive to interest rates (mainly bonds) may be at a loss.
This could lead to the Issuer selling at loss in order to honour its surrenders. This risk is considered to
be "significant".
As at 31 December 2023, the regulatory solvency ratio of the SGAM was 176%. A 50 basis points
decrease in the interest rates would have had a negative impact of -5 points on the SGAM's solvency
ratio, while a 50 basis points increase would have resulted in a negative impact of less than 1 point of
the solvency ratio. In current market conditions, this risk is considered to be "significant".
Credit risk
La Mondiale is exposed to credit risk mainly through its financial assets, and securities lending.
This risk relates to the impact of potential adverse fluctuations in the value of financial assets on the
credit standing of the Issuer and the Group. Such adverse fluctuations could impact the Issuer's ability
to generate capital gains on the financial assets it holds and could lead the Issuer to set impairment to
cover this risk.
An adverse fluctuation in the value of financial assets could have an impact on their future yield, which
could result in a loss of competitiveness of the Issuer affecting the behaviour and commercial choice
of insured clients.
The vast majority of the Group's bond portfolio is made up with Eurozone public and private issues,
with a portfolio's average rating of A+ (calculated on the basis of the second highest rating from the
three main rating agencies). As at 31 December 2023, over 54% of the portfolio was invested in issuers
with a minimum rating of A+. Despite the quality of these ratings, given the current financial market
background and global environment, this risk is considered to be "significant".
Risks related to the variations in the value of investment assets
A reduction in the value of the investment assets could impact the capacity of the Issuer to achieve
capital gains and could even lead to impairment of certain assets. This could therefore have an impact
on the future yields of the assets, with a loss of competitiveness, such as an increase in redemption
rates. Such a development could also have unfavourable impacts on the solvency of the Issuer or the
solvency determination.

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Variations in interest rates and returns on equity markets may also have an impact on policyholders'
behaviour, which may affect La Mondiale's business.
Investment risk on life insurance portfolios is sometimes borne by the policyholders in the case of
unit-linked life insurance policies. In these cases, fluctuations of the price of underlying securities will
directly or indirectly affect the financial results of the life insurance business operations.
In addition, La Mondiale invests part of its assets in shares and funds, which are generally exposed to
volatility risks.
For instance, as at 31 December 2023, the percentage of the Issuer's investment portfolio (excluding
unit-linked investments) invested in equities and funds was 8.5% (3.1 billion), the percentage of the
Issuer's portfolio invested in property was 8% (2.9 billion) and the percentage of fixed income was
76% (27.8 billion).
This risk is considered to be "significant".
Real estate risk
The Group is exposed to real estate risk, reflected by an inadequate return on assets (fall in income
and/or realised capital gains) or a decrease in unrealised capital gains (or an increase in unrealised
capital losses). In addition, given the current economic situation, real estate business could be
adversely affected (i.e. negative impacts on rents and renegotiation of leases) which could as a result
negatively impact the Group's real estate assets. Lower yields could have a moderate impact on the
net income and a decrease in unrealised capital gains (or an increase in unrealised capital losses) could
directly affect the Group's solvency. As at 31 December 2023, the Group's regulatory solvency ratio
was 176%.
The Group's real estate assets are held mainly by subsidiaries in France. At 31 December 2023, real
estate assets represented 8% of the Group's portfolio.
Real estate risk is considered to be "significant".
Counterparty risk
La Mondiale is exposed to counterparty risk with third parties, mainly financial institutions, with
which it enters into various financial transactions.
The failure of any of its counterparties could have an effect on the financial situation of the Issuer but
could also generate significant liquidity problems and cause other institutions to default.
The stability of financial institutions depends greatly on the trends in the markets. This risk can
adversely affect the financial intermediaries, banks and depositories with which La Mondiale operates
on a daily basis and which may therefore adversely affect its income, profit and solvency.
This risk is considered to be "moderate".
Currency risk
This risk relates to the sensitivity of assets to changes in the currency in which assets are recorded on
the balance sheet. Since the bonds denominated in foreign currencies held by La Mondiale are hedged
by currency swaps (which provides protection against exchange rate risk on this class of assets), La
Mondiale mainly faces this risk by holding equity assets denominated in U.S. dollars, Yen, Sterling,
Swiss Francs and other currencies. However, such equity assets are themselves marginal in La
Mondiale's overall asset allocation. As a result, this risk is considered as "low".

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Liquidity risk
There is a risk that La Mondiale cannot sell a financial asset at its true value or cannot sell it at all. La
Mondiale also faces the risk that it cannot meet its obligations, such as being able to reimburse the
policy holders requesting it.
The Group's activity is comprised of different types of products (such as provident, health, savings
and pension). Such diversification enables the Group to have limited exposure to the liquidity risk.
However, a fall in gross new cash inflows combined with an unfavourable economic climate for asset
disposals could create an environment favourable to liquidity risk. The Group considers this risk to be
"moderate".
1.2
Risks linked to the insurance business
The Issuer and the Group are exposed to the following insurance risks:
Surrender and transfer risk
The Issuer may in the future be affected by significant changes in its financial condition linked to
potential surrender of life insurance, pension and saving contracts or to transfers of group pension
contracts to another insurer. Savings contracts include a surrender clause allowing policyholders to
request reimbursement of all or part of their accumulated savings. Changes in economic and financial
conditions can lead to an increase in surrenders higher than the forecasts used by the Issuer for asset
liability management purposes, or even waves of large-scale surrenders. The surrender of a contract
may lead the Issuer to disinvest from financial investments under unfavourable conditions, resulting
in capital losses if the Issuer does not have sufficient liquidity to meet its commitment, and thus
significantly altering the technical and financial balance of its portfolio. The surrender risk is
predominant in an environment of rising interest rates and devaluation of bond assets.
This risk could negatively affect the liquidity and cash levels of the Issuer. Given the current
competitive environment and regulatory changes affecting portfolios balances, this risk is considered
to be "significant".
Longevity and mortality risks
The Issuer may be affected by significant changes in statistics of longevity and mortality of its
policyholders.
Longevity risk, which is the risk that the number of deaths is less than expected, could lead the Issuer
to distribute retirement or incapacity pensions to its insured clients for a period of time longer than
expected.
Mortality risk, which is the risk that the number of deaths is higher than expected, could have an impact
on savings portfolios and generate a significant decrease of the outstanding commitments resulting in
a loss of revenues for the Issuer. The occurrence of mortality risk could also generate higher benefits
related to death insurances.
The assessment of these risks is at the centre of underwriting in health and protection insurance, and
may have an impact on the pricing and the provisions made by the Issuer. The occurrence of such risks
may expose the Issuer to greater than expected liabilities, which may have a material adverse effect
on its income, profit and solvency. These risks are considered by the Group to be "moderate".

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