Financial statement of the PZU Group and PZU SA (2021)

Consolidated profit and loss account ................................................................................................

4

Consolidated statement of comprehensive income .........................................................................

5

Consolidated statement of financial position ...................................................................................

6

Consolidated statement of changes in equity ...................................................................................

8

Consolidated cash flow statement...................................................................................................

10

Supplementary information and notes............................................................................................

12

1.

Introduction ..............................................................................................................................................................

12

2.

Composition of PZU Group.......................................................................................................................................

15

3.

Shareholder structure...............................................................................................................................................

30

4.

Composition of the Management Board, Supervisory Board and PZU Group Directors........................................

31

5.

Key accounting policies, key estimates and judgments..........................................................................................

33

6.

Segment reporting....................................................................................................................................................

46

7.

Risk management .....................................................................................................................................................

56

8.

Equity management .................................................................................................................................................

93

9.

Fair value ...................................................................................................................................................................

95

10.

Gross written premiums .........................................................................................................................................

104

11.

Revenue from commissions and fees.....................................................................................................................

105

12.

Interest income calculated using the effective interest rate.................................................................................

106

13.

Other net investment income.................................................................................................................................

107

14.

Result on derecognition of financial instruments and investments .....................................................................

107

15.

Movement in allowances for expected credit losses and impairment losses on financial instruments..............

108

16.

Net movement in fair value of assets and liabilities measured at fair value ........................................................

108

17.

Other operating income .........................................................................................................................................

109

18.

Claims, benefits and movement in technical provisions.......................................................................................

109

19.

Fee and commission expenses...............................................................................................................................

110

20.

Interest expenses ....................................................................................................................................................

111

21.

Acquisition expenses ..............................................................................................................................................

111

22.

Administrative expenses.........................................................................................................................................

112

23.

Employee expenses ................................................................................................................................................

112

24.

Other operating expenses ......................................................................................................................................

113

25.

Income tax...............................................................................................................................................................

113

26.

Earnings per share ..................................................................................................................................................

115

27.

Goodwill ..................................................................................................................................................................

115

28.

Intangible assets .....................................................................................................................................................

118

29.

Other assets ............................................................................................................................................................

120

30.

Deferred acquisition costs ......................................................................................................................................

121

31.

Property, plant and equipment..............................................................................................................................

122

32.

Investment property ...............................................................................................................................................

124

2

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements according to IFRS for the year ended 31 December 2021

33.

Entities measured by the equity method...............................................................................................................

125

34.

Loan receivables from clients.................................................................................................................................

126

35.

Financial derivatives ...............................................................................................................................................

127

36.

Investment financial assets, including assets securing liabilities .........................................................................

139

37.

Receivables .............................................................................................................................................................

144

38.

Impairment of financial assets ...............................................................................................................................

144

39.

Cash and cash equivalents .....................................................................................................................................

155

40.

Equity attributable to equity holders of the Parent...............................................................................................

156

41.

Technical provisions ...............................................................................................................................................

158

42.

Subordinated liabilities ..........................................................................................................................................

166

43.

Liabilities on the issue of own debt securities .......................................................................................................

167

44.

Liabilities to banks ..................................................................................................................................................

167

45.

Liabilities to clients under deposits .......................................................................................................................

168

46.

Other liabilities........................................................................................................................................................

169

47.

Provisions................................................................................................................................................................

171

48.

Deferred tax.............................................................................................................................................................

177

49.

Assets and liabilities held for sale ..........................................................................................................................

179

50.

Leases......................................................................................................................................................................

180

51.

Assets securing receivables, liabilities and contingent liabilities .........................................................................

183

52.

Contingent assets and liabilities ............................................................................................................................

184

53.

Offsetting financial assets and financial liabilities ................................................................................................

184

54.

Notes to the consolidated cash flow statement ....................................................................................................

185

55.

Disputes...................................................................................................................................................................

186

56.

Related party transactions .....................................................................................................................................

189

57.

Headcount...............................................................................................................................................................

193

58.

Other information ...................................................................................................................................................

193

Consolidated profit and loss account

Note

1 January -

1 January -

31 December 2021

31 December 2020

Gross written premiums

10

25,080

23,866

Reinsurers' share in gross written premium

(1,300)

(1,016)

Net written premiums

23,780

22,850

Movement in net provision for unearned premiums

(548)

174

Net earned premiums

23,232

23,024

Revenue from commissions and fees

11

4,738

4,197

Interest income calculated using the effective interest rate

12

9,782

10,262

Other net investment income

13

418

586

Result on derecognition of financial instruments and investments

14

407

111

Movement in allowances for expected credit losses and impairment losses

15

(1,849)

(3,342)

on financial instruments

Net movement in fair value of assets and liabilities measured at fair value

16

797

869

Other operating income

17

1,602

1,395

Claims, benefits and movement in technical provisions

(16,130)

(16,105)

Reinsurers' share in claims, benefits and movement in technical provisions

399

525

Net insurance claims and benefits

18

(15,731)

(15,580)

Fee and commission expenses

19

(1,194)

(1,031)

Interest expenses

20

(418)

(1,134)

Acquisition expenses

21

(3,572)

(3,317)

Administrative expenses

22

(6,826)

(6,597)

Other operating expenses

24

(3,917)

(5,385)

Operating profit

7,469

4,058

Share of the net financial results of entities measured by the equity method

(15)

-

Profit before tax

7,454

4,058

Income tax

25

(2,020)

(1,528)

Net profit, including:

5,434

2,530

- profit attributable to the equity holders of the Parent Company

3,336

1,912

- profit (loss) attributed to holders of non-controlling interest

2,098

618

Weighted average basic and diluted number of common shares

26

863,344,936

863,332,499

Basic and diluted profit (loss) per common share (in PLN)

26

3.86

2.21

Consolidated statement of comprehensive income

Note

1 January -

1 January -

31 December 2021

31 December 2020

Net profit

5,434

2,530

Other comprehensive income

25

(5,148)

1,602

Subject to subsequent transfer to profit or loss

(5,253)

1,549

Valuation of debt instruments

(2,229)

906

Measurement of loan receivables from clients

(38)

17

Foreign exchange translation differences

5

104

Cash flow hedging

(2,991)

522

Not to be transferred to profit or loss in the future

105

53

Valuation of equity instruments

74

58

Actuarial gains and losses related to provisions for employee benefits

31

(5)

Total net comprehensive income

286

4,132

- comprehensive income attributable to equity holders of the Parent

1,324

2,619

Company

- comprehensive income attributable to holders of non-controlling interest

(1,038)

1,513