Company: SNY
Filing Date: 2025-06-27
Form Type: 11-K
Source: 0001104659-25-063672
Chunk: 17

Company: Sanofi
Filing Date: 2025-06-27
Form: 11-K
Chunk 17
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, corporate bonds, mortgage related
securities, government bonds, asset-backed securities, cash, and cash equivalents.

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Sanofi Puerto Rico Group Savings Plan

Notes to the Financial Statements

December 31, 2024 and 2023

SICs, backed by underlying assets,
are designed to provide principal protection and accrued interest over a specified period of time through benefit-responsive wrapper contracts
issued by a third party assuming that the underlying assets meet the requirements of the SIC. Separate account contracts are investment
contracts invested in insurance company separate accounts established for the sole benefit of the Stable Value Fund included within the
Master Trust. SICs and separate account contracts are wrapped by the financially responsible insurance company.

The issuers of the SICs and separate account contracts are contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Master Trust.The fund deposits a lump sum with the issuer and receives a guaranteed interest rate for a specified time.There are currently no reserves against contract values for credit riskof the contract issuers or otherwise and do not permit the insurance companies to terminate the agreement prior to the scheduled maturity date. Each contract is subject to early termination penalties that may be significant.

The crediting rates for SICs and separate account contracts are periodically reset during the year and are based on the performance of the contract’s underlying assets.Interest is accrued on either a simple interest or fully compounded
basis and paid either periodically or at the end of the contract term. The average crediting rate for the investment contracts was 3.39%
and 3.16% for 2024 and 2023, respectively.

Certain events could limit the ability of the Master Trust to transact at contract value with the issuer. Such events include the following: (i) amendments to the Plan documents (including complete or partial plan termination or merger with another plan); (ii) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions; (iii) bankruptcy of thePlan sponsor or other plan sponsor events (e.g. divestures or spin-offs of a subsidiary) which cause a significant withdrawal from the Plan or (iv) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The Plan Administrator does not believe that the occurrence of any such event, which would limit the Plan’s ability to transact at contract value with participants, is probable.

Participant-directed redemptions have
no restrictions