Financial statement of the PZU Group and PZU SA (2022)

Powszechny Zakład Ubezpieczeń Spółka Akcyjna

Group

Consolidated financial statements for the year ended 31 December 2022 prepared in accordance with International Financial Reporting Standards

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements in accordance with IFRS for the year ended 31 December 2022

Table of contents

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 ............................................................................................................................................... 29
4. Key management-Management Board and Group Directors ................................................................................ 29
5.Parent Company's Supervisory Board..................................................................................................................... 31
6. Key accounting policies and significant estimates and judgments ........................................................................ 32
7. Segment reporting .................................................................................................................................................... 58
8. Risk management ..................................................................................................................................................... 68
9. Equity management ............................................................................................................................................... 104
10. Fair value ................................................................................................................................................................. 106
11. Gross written premiums ......................................................................................................................................... 115
12. Revenue from commissions and fees ..................................................................................................................... 116
13. Interest income calculated using the effective interest rate ................................................................................. 117
14. Other net investment income ................................................................................................................................. 119
15. Result on derecognition of financial instruments and investments ..................................................................... 119
16. Movement in allowances for expected credit losses and impairment losses on financial instruments .............. 120
17. Net movement in fair value of assets and liabilities measured at fair value ........................................................ 121
18. Other operating income ......................................................................................................................................... 121
19. Claims, benefits and movement in technical provisions ....................................................................................... 121
20. Fee and commission expenses ............................................................................................................................... 123
21. Interest expense ...................................................................................................................................................... 123
22. Acquisition expenses .............................................................................................................................................. 123
23. Administrative expenses ......................................................................................................................................... 124
24. Employee expenses ................................................................................................................................................ 125
25. Other operating expenses ...................................................................................................................................... 125
26. Income tax ............................................................................................................................................................... 126
27. Earnings per share .................................................................................................................................................. 127
28. Goodwill .................................................................................................................................................................. 127
29. Intangible assets ..................................................................................................................................................... 130
30. Other assets ............................................................................................................................................................ 133
31. Deferred acquisition expenses ............................................................................................................................... 134
32. Property, plant and equipment .............................................................................................................................. 135

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements in accordance with IFRS for the year ended 31 December 2022

33. Investment property ............................................................................................................................................... 137
34. Entities measured by the equity method ............................................................................................................... 138
35. Loan receivables from clients ................................................................................................................................. 139
36. Financial derivatives ............................................................................................................................................... 140
37. Investment financial assets, including assets securing liabilities ......................................................................... 151
38. Receivables ............................................................................................................................................................. 156
39. Expected credit losses and impairment of financial assets .................................................................................. 157
40. Cash and cash equivalents ..................................................................................................................................... 166
41. Equity attributable to the equity holders of the parent company ........................................................................ 167
42. Technical provisions ............................................................................................................................................... 169
43. Subordinated liabilities .......................................................................................................................................... 177
44. Liabilities on the issue of own debt securities ....................................................................................................... 178
45. Liabilities to banks .................................................................................................................................................. 178
46. Liabilities to clients under deposits ....................................................................................................................... 179
47. Other liabilities ........................................................................................................................................................ 179
48. Provisions ................................................................................................................................................................ 181
49. Deferred tax ............................................................................................................................................................. 187
50. Assets and liabilities held for sale .......................................................................................................................... 190
51. Leases ...................................................................................................................................................................... 190
52. Assets securing receivables, liabilities and contingent liabilities ......................................................................... 193
53. Contingent assets and liabilities ............................................................................................................................ 194
54. Offsetting financial assets and financial liabilities ................................................................................................ 194
55. Notes to the consolidated cash flow statement .................................................................................................... 195
56. Disputes ................................................................................................................................................................... 196
57. Related party transactions ..................................................................................................................................... 199
58. Headcount ............................................................................................................................................................... 203
59. Other information ................................................................................................................................................... 203

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements in accordance with IFRS for the year ended 31 December 2022 (in millions of PLN)

Consolidated profit and loss account

Note

Gross written premiums

Reinsurers' share in gross written premium

Net written premiums

Movement in net provision for unearned premiumsNet earned premiums

Revenue from commissions and fees

Interest income calculated using the effective interest rate Other net investment income

Result on derecognition of financial instruments and investmentsMovement in allowances for expected credit losses and impairment losses onfinancial instruments

Net movement in fair value of assets and liabilities measured at fair value Other operating income

Claims, benefits and movement in technical provisions

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

Net insurance claims and benefits

Fee and commission expenses Interest expenses

Acquisition expenses Administrative expenses Other operating expensesOperating profit

Share of the net financial results of entities measured by the equity methodProfit before tax

Income tax

Net profit, including:

- profit attributable to the equity holders of the Parent Company - profit (loss) attributed to holders of non-controlling interest

26,710(1,695)25,015

25,080 (1,300)23,780

(718)24,297

(548)23,232

5,136

4,738

18,626

9,782

(384)

418

(492)

407

(3,271)

(1,849)

704

797

1,896

1,602

(16,894)

(16,130)

1,352(15,542)

399(15,731)

(1,449)(4,767)(3,903)(7,575)(5,646)

(1,194)

(418) (3,572) (6,826) (3,917)

7,630

7,469

(25)7,605(2,346)5,2593,3741,885

(15)7,454(2,020)5,4343,336 2,098

Weighted average basic and diluted number of common shares

863,390,384

863,344,936

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

3.91

3.86

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements in accordance with IFRS for the year ended 31 December 2022 (in millions of PLN)

Consolidated statement of comprehensive income

Note

Net profit

Other comprehensive income

Subject to subsequent transfer to profit or loss

Valuation of debt instruments

Measurement of loan receivables from clients Foreign exchange translation differences Cash flow hedging

Not to be transferred to profit or loss in the future

Valuation of equity instruments

Reclassification of real property from property, plant and equipment to investment property

Actuarial gains and losses related to provisions for employee benefits

Total net comprehensive income

- comprehensive income attributable to equity holders of the Parent Company - comprehensive income attributable to holders of non-controlling interest

5,259

5,434

(2,924)

(5,148)

(3,036)

(5,253)

(1,799)

(2,229)

(4)

(38)

(1,256)

(2,991)

112

105

126

74 -

(16)2,3352,083252

312861,324 (1,038)

Attachments

Disclaimer

PZU - Powszechny Zaklad Ubezpieczen SA published this content on 30 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2023 06:21:08 UTC.