In 2017 and up to the date of preparation of this report on the activity of the PZU Group and PZU, there were no pending proceedings before court, a body competent to hear arbitration proceedings or a public authority body concerning liabilities or receivables of PZU or a direct or indirect subsidiary thereof whose unit value is at least 10% of PZU’s equity. A
As at 31 December 2017, the total value of all the 214,133 cases pending before courts, competent bodies for arbitral proceedings or public administration authorities to which PZU
Group entities are a party was PLN 6,722 million (of which
PZU was a party to 145,931 cases with a total value of
PLN 3,474 million). PLN 3,979 million of this amount pertains to liabilities while PLN 2,743 million pertains to the accounts receivable of PZU Group companies, representing 29.3% and 20.2% of PZU’s equity, respectively, according to PAS
Assessment of the management of financial resources, including the capacity to satisfy the assumed liabilities and specification of possible threats and actions taken or to be taken by the Issuer to counter these threats
PZU is in very good financial standing and satisfies all the security criteria imposed on it by the Insurance and
has a strong business position, has a high level of equity and continues to be a competitive player on the insurance market.
Within its trading activity Bank Pekao enters into transactions on PZU shares and futures. As at 31 December 2017 Bank
PZU did not hold any treasury shares as at 31 December 2017.
The PZU Group has not published any forecasts of its financial results.
Basic amounts of the consolidated profit and loss account (PLN million) 2017 2016 2015 2014 2013
Basic and diluted weighted average number of ordinary shares* 863,519,608 863,510,930 863,523,000 863,519,490 863,519,490
Basic and diluted Issuer’s profit per ordinary share (in PLN) 2.82 1.82 2.60 3.05 5.91 *including shares in consolidated funds
Entities measured using the equity method 20 37 54 66 49
Actuarial profits and losses related to provisions for employee benefits 4 3 (4) (6) 1
Appropriations on net profit during the financial year - - - - (1,727)
Result of the sale of PZU Lithuania - - 165 - 1.
Gross claims and benefits ratio (simple) (gross claims /gross written premium) x 100%
Administrative expenses ratio in insurance segments (administrative expenses/net earned premium) x 100%
8. Costs / Income Ratio - banking activity 47.7% 44.4% - - -
Reinsurance commission and share in profits (9) (14) (14) (27) 67
Acquisition costs ratio (including reinsurance commission)* 18.4% 20.0% 20.6% 19.3% 16.4%
Reinsurance commission and share in profits 27 21 16 16 8
Insurance claims and change in other technical provisions net (5,142) (4,686) (4,718) (4,570) (4,570)
Data from the profit and loss account- banking activity (PLN million) 2017 2016 2015 2014 2013
Data from the profit and loss account – Baltic states segment (PLN million) 2017 2016 2015 2014 2013
Attachment: Glossary of terms insurance agent – commercial undertaking conducting agency activity pursuant to an agreement executed with an insurance undertaking. The activity of agents focuses on acquiring customers, entering into insurance agreements, participating in the administration and performance of insurance agreements and organizing and supervising agency activity insurance broker – entity holding a permit to conduct brokerage activity. Performs activities on behalf or in favor of an entity seeking insurance cover cedent – person who cedes an account receivable to a buyer
COR – Combined Ratio – calculated for the non-life insurance sector (section II). This is the ratio of insurance expenses related to insurance administration and the payment of claims
CSR – Corporate Social Responsibility a concept according to which companies voluntarily take into account social interests and environmental protection as well as relations with diverse groups of stakeholders at the stage of building their strategy
DY (ang. dividend yield) – market multiple specifying the ratio of the dividend per share to the market share price
EPS (ang. earnings per share) – market multiple specifying earnings per share
IPO (Initial Public Offering) – public offering pertaining to specific securities performed for the first time. One of the most important elements of an initial public offering is the preparation of a prospectus and the proceeding before the institution supervising admission to be traded public
Solvency Capital Requirement (SCR) capital requirement computed in accordance with the Solvency II regulations. The calculation of the capital requirement is based on calculating market, actuarial (insurance), counterparty insolvency, catastrophic and operational risks and is subsequently subject to diversification analysis. This ratio may be computed using the standard formula or, after obtaining the pertinent consent from the regulatory authority, using an insurance undertaking’s partial or full internal model
NPS (Net Promoter Score) – method for assessing the loyalty of a given company’s customers, ratio computed as the difference between a brand’s promoters and critics
Payout ratio – dividend payout ratio, in other words the quotient of the dividend paid and the company’s net result, stated as a percentage
PRIIP – Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No. 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurancebased investment products reinsurance – transfer to some other insurance undertaking
Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC
European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms
Finance Minister’s Regulation of 19 February 2009 on Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the
(without including the reinsurers’ share) due by virtue of the insurance agreements executed in the reporting period, notwithstanding the term of liability stemming from these agreements net earned premium – the gross written premium in a given period giving consideration to the settlement of revenues
TSR (Total Shareholder Return) – measure specifying the total rate of return obtained by shareholders by virtue of
Attachment: Glossary of terms holding shares in a given company during an annual period.
UFK – Ubezpieczeniowy Fundusz Kapitałowy, wydzielony fundusz aktywów stanowiący rezerwę tworzoną ze składek ubezpieczeniowych, inwestowany w sposób określony w umowie ubezpieczenia, część składowa ubezpieczenia na
życie z ubezpieczeniowym funduszem kapitałowym (UFK), określanej również mianem polisy inwestycyjnej
Statutory Auditor Act – Act of 7 May 1999 on Statutory
VIX – an indicator of volatility of rates on Wall Street expected by investors, based on the valuation of options. The higher its value, the greater the fear in the market and the more opportunities to buy overpriced shares
PZU Group’s debt ratio (leverage ratio) – quotient of debt on long-term financial liabilities (net of bank deposits) to the sum of the following: debt on long-term financial liabilities and the PZU Group’s equity minus intangible assets (including the intangible assets carried in the balance sheets of banks and by virtue of the acquisition of banks, including goodwill), deferred acquisition expenses and deferred tax assets carried in the
Prudent Person Principle – principle expressed in article 129 of the Solvency II Directive of the European Parliament and of the Council on the Taking-up and Pursuit of the
PZU Group’s financial standing, business strategy, management plans and objectives concerning the future operations comply with the forward-looking statements contained in these Management Board’s report on the activity of the PZU Group and PZU, such results or events may not be treated as a guideline as to the results or events in the subsequent periods. PZU does not undertake to publish any updates, changes, or adjustments to information, data or statements contained in these Management
At the same time, these Management Board’s report on the activity of the PZU Group and PZU may not be treated as a part of a call or an offer to purchase securities or make an investment. The Management Board’s report on the activity of the PZU Group and PZU does not constitute also an offer or a call to effect any other transactions concerning securities.