Powszechny Zaklad Ubezpiecze? Spólka Akcyjna : Financial statement of the PZU Group and PZU SA

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements for the year ended 31 December 2021

prepared in accordance with International Financial Reporting Standards

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

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

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...............................................................................................................................................	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

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements according to IFRS for the year ended 31 December 2021 (in millions of PLN)

Consolidated profit and loss account

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

Warsaw, 23 March 2022

The accompanying notes form an integral part of the consolidated financial statements.

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Consolidated financial statements according to IFRS for the year ended 31 December 2021 (in millions of PLN)

Consolidated statement of comprehensive income

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

Warsaw, 23 March 2022

The accompanying notes form an integral part of the consolidated financial statements.

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PZU - Powszechny Zaklad Ubezpieczen SA published this content on 24 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2022 07:07:05 UTC.

POWSZECHNY ZAKLAD UBEZPIECZE? SPÓLKA AKCYJNA

Powszechny Zaklad Ubezpiecze? Spólka Akcyjna : Financial statement of the PZU Group and PZU SA

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