Obbligazione Mondial Assurances 4.8% ( XS1736887099 ) in USD

Mondial Assurances

98.57 USD ▲

Francia

XS1736887099 ( in USD )

4.8% per anno ( pagato 2 volte l'anno)

20/12/2047

Prospetto opuscolo dell'obbligazione La Mondiale XS1736887099 en USD 4.8%, scadenza 20/12/2047

21/12/2025 ( In 38 giorni )

La Mondiale è una compagnia di assicurazioni francese specializzata in prodotti di previdenza e risparmio.

L'obbligazione con codice ISIN XS1736887099, emessa da La Mondiale (Francia), denominata in USD, presenta un prezzo di mercato attuale del 95,62%, un tasso di interesse del 4,8%, una scadenza il 20/12/2047 e una frequenza di pagamento semestrale.

Prospectus dated 19 December 2017

LA MONDIALE
USD 400,000,000 Reset Subordinated Notes due 21 December 2047
Issue Price: 100 per cent.
The USD 400,000,000 Reset Subordinated Notes due 21 December 2047 (the Notes) of La Mondiale (La Mondiale or the Issuer) will be
issued on 21 December 2017 (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 "Terms and Conditions of the Notes - Status of the Notes Payment on the Notes in the Event of Liquidation of the Issuer")
direct, unconditional and unsecured Ordinary Subordinated Obligations and rank and shall at all times rank (i) without any preference among
themselves (save for certain obligations required to be preferred by French law) (ii) equally and rateably with any other existing or future
Ordinary Subordinated Obligations, (iii) in priority to Deeply Subordinated Obligations, prêts participatifs granted to, titres participatifs
issued by the Issuer and Mutual Certificates issued by the Issuer but (iv) junior to subordinated obligations expressed to rank senior to
Ordinary Subordinated Obligations if any, and (v) junior to Unsubordinated Obligations as set out in the "Terms and Conditions of the Notes -
Status of the Notes".
The Notes will bear interest (i) from (and including) the Issue Date, to (but excluding) 21 December 2027 (the First Call Date), at a fixed rate
of 4.80 per cent. per annum payable semi-annually in arrear on 21 June and 21 December in each year commencing on 21 June 2018, and
(ii) thereafter to (but excluding) the Final Maturity Date (as defined in Terms and Conditions of the Notes -- Redemption and Purchase") in respect
of each successive five year period commencing on (and including) the First Reset Date, at a reset rate calculated on the basis of the prevailing
CMT Rate (as defined herein) plus a margin of 3.44 per cent. Such interest will be payable semi-annually in arrear on 21 June and 21
December in each year commencing on 21 June 2018.
Payment of interest on the Notes may be deferred at the option of the Issuer, or shall be deferred under certain circumstances, as set out in
"Terms and Conditions of the Notes - Interest - Interest Deferral".
Unless previously redeemed, purchased or cancelled in accordance with the terms and conditions of the Notes, the Notes will be redeemed at
their Principal Amount (i.e. USD 200,000 per Note) on the Scheduled Maturity Date if the Conditions to Redemption and Purchase are
satisfied, failing which the Notes will only be redeemed on the Final Maturity Date as further specified in "Terms and Conditions of the Notes
-- Redemption and Purchase". The Issuer will have the right to redeem the Notes in whole, but not in part, on the First Call Date or on any
Reset 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, redeem the Notes for certain withholding tax or tax deductibility
reasons or upon the occurrence of an Accounting Event, a Regulatory Event or a Rating Methodology Event, as further described in "Terms
and Conditions of the Notes - Redemption and Purchase".
Application has been made for approval of this Prospectus (the Prospectus) to the Autorité des marchés financiers (the AMF) in France in its
capacity as competent authority pursuant to Article 212-2 of its Règlement Général which implements the Directive 2003/71/EC of 4
November 2003, as amended (the Prospectus Directive). Application has been made to Euronext Paris for the Notes to be listed and admitted
to trading on Euronext Paris. Euronext Paris is a regulated market for the purposes of the Markets in Financial Instruments Directive
2004/39/EC, appearing on the list of regulated markets issued by the European Commission (a Regulated Market).
The Notes will initially be represented by a temporary global note (the Temporary Global Note), without interest coupons, which will be
deposited on or about 21 December 2017 (the Closing Date) with a common depositary for Euroclear Bank SA/NV (Euroclear) and
Clearstream Banking S.A. (Clearstream, Luxembourg). Interests in the Temporary Global Note will be exchangeable for interests in a
permanent global note (the Permanent Global Note and, together with the Temporary Global Note, the Global Notes), without interest
coupons, on or after 30 January 2018 (the Exchange Date), upon certification as to non-U.S. beneficial ownership. Interests in the Permanent
Global Note will be exchangeable for definitive Notes only in certain limited circumstances - see "Summary of Provisions relating to the Notes
while represented by the Global Notes".
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) or any U.S. State
securities laws and may not be offered or sold in the United States or to, or for the account or the benefit of, U.S. persons as defined in
Regulation S under the Securities Act unless an exemption from the registration requirements of the Securities Act is available and in
accordance with all applicable securities laws of any state of the United States and any other jurisdiction.
The Notes have been rated BBB by S&P Global Ratings (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 by Regulation
(EU) No. 513/2011 (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/supervision/credit-rating-agencies/risk)
as of the date of this Prospectus. 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.
Prospective investors should have regard to the risk factors described under the section headed "Risk Factors" in this Prospectus, in
connection with any investment in the Notes.

Joint Lead Managers
CREDIT SUISSE
HSBC

This Prospectus should be read and construed in conjunction with any supplement, that may be published
between the date of this Prospectus and the date of the admission to trading of the Notes on Euronext Paris,
and with all documents incorporated by reference herein (see "Documents Incorporated by Reference")
(together, the Prospectus).
This Prospectus constitutes a prospectus for the purposes of Article 5.3 of Directive 2003/71/EC of the
European Parliament and of the Council of 4 November 2003 as amended and the relevant implementing
measures in France, in respect of, and for the purposes of giving information with regard to, the Issuer and
the Group (as defined below) and the Notes which, according to the particular nature of the Issuer and the
Notes, is necessary to enable investors to make an informed assessment of the assets and liabilities, financial
position, profit and losses and prospects of the Issuer and the Group.
Certain information contained in this Prospectus and/or documents incorporated herein by reference have
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 AG2R La Mondiale Group are to
the combined group formed by SGAM AG2R La Mondiale and its members, each with its own consolidated
perimeter,
No person has been authorised to give any information or to make any representation other than those
contained in this Prospectus 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 Lead Managers (each as defined in "Subscription and Sale"). Neither the delivery of this Prospectus
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 Prospectus 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 Prospectus 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 Prospectus 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 Prospectus and the offer or sale of Notes may be restricted by law in certain jurisdictions.
The Issuer and the Joint Lead Managers do not represent that this Prospectus 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 Lead Managers which would permit a public offering of the Notes or distribution of this Prospectus in
any jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or sold,
directly or indirectly, and neither this Prospectus 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 and the Joint Lead Managers (each as defined in "Subscription and Sale") have represented that
all offers and sales by them will be made on the same terms. Persons into whose possession this Prospectus
comes are required by the Issuer and the Joint Lead Managers to inform themselves about and to observe
any such restriction. In particular, there are restrictions on the distribution of this Prospectus and the offer
or sale of Notes in the United States, the United Kingdom, Hong Kong, Singapore, Switzerland, Taiwan,
France and Italy, see the section entitled "Subscription and Sale".

1

THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED 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
PROSPECTUS, SEE "SUBSCRIPTION AND SALE".
The Joint Lead Managers have not separately verified the information contained in this Prospectus. None of
the Managers makes any representation, warranty or undertaking, express or implied, or accepts any
responsibility or liability, with respect to the accuracy or completeness of any of the information contained
or incorporated by reference in this Prospectus or any other information provided by the Issuer in
connection with the issue and sale of 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 Prospectus 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 Lead Managers undertakes to
review the financial condition or affairs of the Issuer or the Group after the date of this Prospectus nor to
advise any investor or potential investor in the Notes of any information coming to the attention of any of the
Joint Lead Managers. 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 Prospectus 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 Lead Managers that any recipient of this Prospectus or any other
information supplied in connection with the issue and sale of the Notes should purchase any Notes. Neither
this Prospectus 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 Lead Managers to any person to
subscribe for or to purchase any Notes.
PROHIBITION OF SALES TO EEA RETAIL INVESTORS The Notes are not intended, from 1 January
2018, to be offered, sold or otherwise made available and, with effect from such date, 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 more) of (i) a retail client as defined in point (11)
of Article 4(1) of Directive 2014/65/EU (MiFID II); or (ii) a customer within the meaning of Directive
2002/92/EC (IMD), 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 (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.
The consolidated financial statements of the Issuer and the Group for the years ended 31 December 2015
and 31 December 2016 and unaudited 2017 Half-Year Consolidated Balance Sheet and Profit and Loss
Account have been prepared in accordance with IFRS as adopted by the European Union.
In this Prospectus, 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 on 1 January 1999 and to $, Dollar, USD or U.S. dollar are to the
currency of the United States of America.

2

TABLE OF CONTENTS
Section
Page
Risk Factors ........................................................................................................................................................ 4
Documents on Display ..................................................................................................................................... 23
Information Incorporated by Reference ........................................................................................................... 24
General Description of the Notes ..................................................................................................................... 26
Terms and Conditions of the Notes .................................................................................................................. 39
Summary of Provisions relating to the Notes while Represented by the Global Notes ................................... 59
Use of Proceeds ................................................................................................................................................ 62
Description of the Issuer ................................................................................................................................... 63
Recent Developments ....................................................................................................................................... 76
Taxation ............................................................................................................................................................ 77
Subscription and Sale ....................................................................................................................................... 79
General Information ......................................................................................................................................... 84
Persons responsible for the information contained in the Prospectus .............................................................. 86

3

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 Prospectus. 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 Prospectus 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.
RISK FACTORS RELATING TO THE ISSUER
The occurrence of any of the risks described below may affect the Issuer's capacity to repay, and/or
adversely affect the market price of the Notes and lead to Noteholders suffering loss when they sell their
Notes. Investors are therefore at risk of losing all or part of their investment.
Investors are invited to read the pages 26 to 32 and 101 to 113 of the 2016 Financial Report (as defined in
the "Information Incorporated by Reference" section of this Prospectus) of the Issuer which comprises a full
description of the risks to which the Issuer and the Group are exposed.
Financial risks
La Mondiale and its Group are exposed to the following financial risks:
Market risks
The market risk affects the yield of the assets backing the core capital and technical provisions of the Issuer.
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 and the outlook is uncertain. Any decline in the

4

financial markets could have an adverse effect on the financial situation, solvency measurement, operating
results and cash flow of the Issuer.
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.
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
buy-backs 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 buy-backs.
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 a significant
decrease in the return of investment assets due to future investments at this low level.
A combination of sustained low interest rates followed by a significant increase of these interest rates could
lead to a negative impact on the financial situation and solvency of the Issuer. This risk could also have an
impact on the liquidity and cash levels of the Issuer.
Within the Solvency II framework, in force since 1 January 2016, a low interest rate level environment may
have a negative impact on solvency measurement.
Risks related to the variations in the value of investment assets
Likewise, the yield on assets representing technical commitments is key in the definition of beneficiary
participations attributed to the policy holders.
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.
Variations in interest rates and returns on equity markets may also have an impact on policy holders'
behaviour. This phenomenon is particularly seen in the life insurance and savings business.
In addition, La Mondiale invests part of its assets in shares and funds, which are generally exposed to
volatility risks. The percentage of the Issuer's investment portfolio (excluding unit-linked investments)
invested in shares and funds as at 31 December 2016 was 8.9%.
Investment risk on life insurance portfolios is sometimes borne by the policy holders 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. Furthermore such fluctuations
could affect the solvency of the Group, in particular the level of unrealised gains that could be eligible to
cover the solvency capital requirement.
Currency risk
This risk relates to the sensitivity of assets to changes in the currency in which assets are recorded on the
balance sheet. La Mondiale mainly faces this risk since it holds assets denominated in U.S. dollars, Yen,
Sterling, Swiss Francs and other currencies.

5

Credit risk
La Mondiale is mainly exposed to credit risk through its financial assets, and securities lending.
This risk relates the potential negative fluctuation in the value of financial assets on the credit quality of the
Issuer. Such negative 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.
A negative 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.
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.
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.
Insurance risks
The Issuer and the Group are exposed to the following insurance risks:
Pricing risk
This risk may arise as a result of premiums being too low to meet the commitments (risk of wrong
assessment of the characteristics of the policy holder risk, risk of wrong evaluation of the premium). The
launch of new products or changes to existing products may lead to the occurrence of this type of risk. The
occurrence of such a risk could negatively affect the financial results and solvency of the Issuer.
Provision risk
This risk may arise if insufficient provision is made to meet commitments due to poor assessment of
available data, subsequent modification of the risk factors or inappropriate calculation parameters. The
occurrence of such a risk could negatively affect the financial results and solvency of the Issuer.
Disaster risk
This risk relates to the sudden occurrence of a disastrous event affecting the population insured by the Issuer
(e.g. pandemics, terrorist attacks). The occurrence of such events could significantly impact the
corresponding cost to cover certain risks, lead to a sudden increase in health and welfare expenses and
increase above expectations the amounts of benefits related to death that are distributed to insured parties.
The occurrence of such a risk could negatively affect the activity, financial results, prospects and solvency of
the Issuer. It could also negatively affect the liquidity and cash levels of the Issuer.

6

Longevity, mortality and morbidity risk
The Issuer may be affected by significant changes in statistics of longevity, mortality or morbidity of its
policyholders.
Longevity risk which is the risk that the number of deaths are 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.
Morbidity risk which is the risk that diseases are different than the ones expected could, aside from having
an impact on mortality and longevity, have an impact on incapacity and invalidity rates leading them to be
different than expected.
Lapse and transfer risk
The Issuer may be affected by significant changes in lapse of life insurance contracts or by transfer of group
pension contracts to another insurer. This risk could negatively affect the liquidity and cash levels of the
Issuer.
Reinsurance risk
La Mondiale has exposure to its reinsurers through its reinsurance treaties. In such treaties, the other insurers
assume part of the cost, losses and expenses associated with incidents, and losses whether or not carried
over, in exchange for a proportion of the premiums. The ability to make a claim under, and the amount and
cost of, the reinsurance depends on general market conditions and may vary significantly. Any decrease in
the amount of reinsurance cover purchased will increase the risk of loss for La Mondiale. When reinsurance
is put in place, La Mondiale remains liable for transferred risks if the reinsurer does not fulfil its obligations.
Default by a reinsurer could therefore affect La Mondiale's profits and financial situation.
Operational risks
The Group defines operational risk as the risk of loss due to inappropriate or failure of procedures,
individuals or systems or loss resulting from external events.
Operational risks can be classified into the following categories:

Risk of internal or external fraud: from an employee or a third party, whether a customer, a
beneficiary or a partner. The Group has introduced controls and procedures in the most vulnerable
areas.

Human resources and skills risks: this relates to the inadequacy between the available skills and the
needs (key-men, training), errors in setting hiring, salaries and careers management policies, social
relations in relation to employees representation or negotiation processes.

The risks relating to information systems which include risks relating to the planning of systems
development, risk of design, development and maintenance of applications, risks attached to the use
of applications and softwares.

Risks attached to the conduct of operations: information reliability, compliance of procedures,
reliability of deliverables, human errors and monitoring of activities.

7

Risks relating to operational organisation: this relates to the inadequacy between the strategy and the
organisation of the Issuer, the inefficiency of defined processes or inappropriate definition of
interfaces.

Security risks: continuity and resuming activities (establishment of a business continuity plan),
security relating to information systems, goods and individuals.

Risks relating to outsourcing and suppliers: dysfunction or termination of commercial relations with
a sub-contractor, contractualisation and compliance of obligations.

Commercial and partnership risks: risks regarding the default of a partner, the sharing of
responsibilities, commissioning, products distribution, knowledge of clients' needs and ethics.

Development risks: adequacy between offer and the market, internal or external growth, risks
relating to external communications.

Risks relating to the sector: risks regarding competition or the evolution of the sector, reputational
risks relating to relations with clients and third parties.

Risks relating to professional conduct: failure to comply with professional conducts when dealing
with clients. La Mondiale closely follows and has implemented the ethical principles of the
Fédération Française de l'Assurance and the Autorité des marchés financiers.

Risk of not having carried out all possible research to correctly identify beneficiaries of unclaimed
policies.

Risks relating to money laundering: La Mondiale has set up anti-money laundering policies in order
to efficiently prevent money laundering.

Insurance and risk hedging: La Mondiale has set up and periodically updates an insurance program
to protect its assets. Subscribed insurance policies relate to insurances regarding damage to goods,
civil liability insurances and individuals insurances. The subscribed insurances and levels of self-
insurance vary depending on the activities, the size and claim rates of the related entities.
The risk management policies, procedures and methods may leave La Mondiale exposed to unforeseen
or unidentified risks.
The Group has engaged significant resources to develop evaluation policies, procedures and methods to
manage operational, liquidity, credit and market risks and plans to continue making efforts in this direction
in the future.
However the Group's risk management strategies and techniques may not be entirely effective in mitigating
exposure to risk in all market environments or against all types of risks, including those risks that the Group
has not yet identified or anticipated.
If potential or existing customers believe that the risk management procedures and policies of the Group are
not appropriate, the Issuer's reputation as well as its revenues and profits may be adversely affected.
Other strategic or environmental risks
A downgrade in La Mondiale rating may increase policy cancellations and non-renewals, adversely
affect relationships with distributors and negatively impact new business.
The insurer financial strength rating of La Mondiale is an important factor in establishing and maintaining
our competitive position. The rating agency regularly reviews our rating. Future downgrades in the rating (or

8

the potentiality of such a downgrade) could, among other things, materially increase the number of policy
cancellations and non-renewals, adversely affect relationships with the distributors of our products and
services, including new sales of our products, and negatively impact the level of our premiums and adversely
affect our ability to obtain reinsurance at reasonable prices or at all. This could adversely affect our
businesses, financial condition, results of operations and our cost of capital.
Changes in government policy, regulation or legislation in the countries in which La Mondiale
operates may affect our profitability.
La Mondiale is subject to extensive regulation and supervision in the jurisdictions in which it does business.
This includes, notably, matters relating to licensing and examination, rate setting, trade practices, policy
reforms, limitations on the nature and amount of certain investments, underwriting and claims practices,
mandated participation in shared markets and guarantee funds, adequacy of our claims provisions, capital
and surplus requirements, insurer solvency, transactions between affiliates, the amount of dividends that may
be paid and underwriting standards. Such regulation and supervision is primarily for the benefit and
protection of policyholders and not for the benefit of investors. In some cases, regulation in one country may
affect business operations in another country. As the amount and complexity of these regulations increase,
the cost of compliance and the risk of non-compliance will also increase. If La Mondiale does not meet
regulatory or other requirements, La Mondiale may suffer penalties including fines, suspension or
cancellation of our insurance licenses which could adversely affect our ability to do business. In addition,
significant regulatory action against us could have material adverse financial effects, cause significant
reputational harm or harm our business prospects.
In addition, La Mondiale may be adversely affected by changes in governmental policy or legislation
applying to companies in the insurance industry. These changes include possible changes in regulations
covering pricing and benefit payments for certain statutory classes of business, the deregulation and
nationalization of certain classes of business, the regulation of selling practices, the regulations covering
policy terms and the imposition of new taxes and assessments or increases in existing taxes and assessments.
Regulatory changes may affect our existing and future businesses by, for example, causing customers to
cancel or not renew existing policies or requiring us to change our range of products or to provide certain
products (such as terrorism or flood cover where it is not already required) and services, redesign our
technology or other systems, retrain our staff, pay increased tax or incur other costs. It is not possible to
determine what changes in governmental policy or legislation will be adopted in any jurisdiction in which La
Mondiale operates and, if so, what form they will take or in what jurisdictions they may occur. Insurance
laws or regulations that are adopted or amended may be more restrictive than our current requirements, may
result in higher costs or limit our growth or otherwise adversely affect our operations.
Significant legal proceedings and litigation may adversely affect our business, financial condition and
results of operations.
All insurance companies are exposed to litigation relating to claims on policies they underwrite.
Accordingly, La Mondiale is currently involved in such legal proceedings relating to claims lodged by
policyholders, some of which involve claims for substantial damages and other relief. Judicial decisions may
expand coverage beyond our pricing and reserving assumptions by widening liability on our policy wording
or by restricting the application of policy exclusions. There can be no assurance that the outcome of any of
our judicial proceedings will be covered by our existing provisions for outstanding claims or our reinsurance
protections or that litigation would not otherwise have a material adverse effect on our businesses, financial
condition and results of operations.
The provisions for litigation as at 31 December 2016 were of 21.2 million euros as set out in note 5.13.1 of
the consolidated financial statements included the 2016 Financial Report (as defined in section "Information
Incorporated by Reference").

9