Navigation Map Download our best practices
Interactive navigation is a tool that goes beyond the standard navigation of the integrated content (available in the report drop-down bar). New approach allowed to navigate in the two additional business dimensions of the PZU Group, i.e .:
- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
The above-mentioned areas were additionally supplemented with related GRI indicators, within each selected issue.
- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
The above-mentioned areas were additionally supplemented with related GRI indicators, within each selected issue.
In the CHAPTER
GRI
- 102-7 Scale of the reporting organization
- 103-2 Approach to management and its elements
- 103-3 Evaluation of the approach to management
- 201-1 Direct economic value generated and distributed
- 102-13 Membership in associations and organizations
- 102-40 List of stakeholder groups engaged by the reporting organization
- 102-42 Basis for identification and selection of stakeholders engaged by the organization
- 102-43 Approach do engaging stakeholders, including the frequency of engagement by stakeholder type and group
- 102-44 Key issues and concerns raised by stakeholders and the organization’s response, also by reporting them
In the CHAPTER
GRI
- 102-8 Data pertaining to employees and other persons working for the organization
- 103-2 Approach to management and its elements
- 103-3 Evaluation of the approach to management
- 404-1 Average number of hours of training per year per employee
- 404-2 Managerial skill development and continuing education programs supporting continuity of employment of employees and facilitating the retirement process
- 404-3 Percentage of employees subject to regular assessments of work quality and professional development reviews, by gender and employment category
- G4-FS16 Initiatives to enhance financial literacy by type of beneficiary
In the CHAPTER
In the CHAPTER
GRI
- 103-3 Evaluation of the approach to management
- 307-1 Cash value of penalties and total number of non-financial sanctions for non-compliance with the law and/or regulations on environmental protection
- 301-1 Raw materials/materials used by weight and volume
- 302-1 Energy consumption by the organization, taking into account the types of raw materials
- 302-4 Reduction of consumption of energy
In the CHAPTER
GRI
- 102-9 Description of the supply chain
- 102-11 Explanation of whether and how the precautionary principle is addressed by the organization
- 102-15 Description of key impacts, opportunities and risks
- 102-16 Organization’s values, code of ethics, principles and norms of behavior
- 102-17 Internal and external mechanisms making it possible to obtain advice regarding the behaviors in ethical and legal issues and issues associated with the organization’s integrity
- 103-2 Approach to management and its elements
- 103-3 Evaluation of the approach to management
- 102-5 Organization’s form of ownership and legal form
- 102-18 Organization’s supervisory structure along with the commissions that report to the highest supervisory body
- 205-1 Actions assessed in terms of threats associated with corruption
- 205-2 Communication and training on anti-corruption policies and procedures in the organization
- 206-1 Legal steps taken against the organization for cases of violating the principles of free competition and monopolistic practices
- 405-1 Composition of supervisory bodies and employees broken down into employee groups by gender, age and other diversity factors
- 406-1 Total number of discrimination cases and corrective measures taken in this regard
- 419-1 Non-compliance with the law and socio- economic regulations
In the CHAPTER
GRI
- 103-2 Approach to management and its elements
- G4-FS13 Access points to sparsely populated areas that are less economically developed
- G4-FS14 Initiatives undertaken to improve access to financial services for disfavored persons
- G4-FS15 Policies for the fair design and sale of financial products and services
- 417-1 Internal requirements concerning the labeling of products and services and information regarding them
- 417-2 Incidents of non-compliance with regulations and voluntary codes concerning the labeling of products and services and information regarding them
- 417-3 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications
Read more:
- Client at the center of attention
- Innovations
- Responsible sales
- Insurance
- Banking and strategic partnerships
- Working conditions
- Employee development
- Knowledge sharing
- Enhancing safety
- Health
- Improvement of living conditions in local communities
- Our impact on the natural environment
- Practical challenges in managing direct impact
- Products and adaptation to climate change
Business model
Employee
CSR
Environment
- Ethical foundations of business operations
- Preventing corruption and conflict of interests
- Diversity and respecting human rights
- Whistleblowing system
- Transaction security
- Risk management, taking into account non-financial risk
- Risk appetite
- PZU Group’s risk profile
- Reinsurance operations
- Polish and Baltic States insurance sector compared to Europe
- Regulations pertaining to the insurance market and the financial markets in Poland
- Non-life insurance (PZU, LINK4 and TUW PZUW)
- Life insurance (PZU Życie)
- International operations
- Contribution made by the market segments to the consolidated result
Risk and ethics
Market
Business
Financial results
Read more:
- Client at the center of attention
- Employee development
- Health
- Cultural patronage
- Practical challenges in managing direct impact
- Ethical foundations of business operations
- Diversity and respecting human rights
- Whistleblowing system
- Transaction security
- Risk appetite
- PZU Group’s risk profile
- Risk vulnerability
- Capital management
Business model
Employee
CSR
Environment
Risk and ethics
Read more:
- New approach to sales
- Working conditions
- Employee development
- Diversity and respecting human rights
Business model
Employee
Risk and ethics
Read more:
- Client at the center of attention
- Medical services (Health)
- Working conditions
- Enhancing safety
- Health
Business model
Employee
CSR
- Our impact on the natural environment
- Practical challenges in managing direct impact
- Diversity and respecting human rights
- Medical services (Health)
Environment
Risk and ethics
Business
2.3 Non-controlling interest
2.3.1. Accounting policy
Non-controlling interests constitute that part of capital in a subsidiary that is not directly or indirectly attributable to the parent company. As at the date of obtaining control, non-controlling interests are measured at the at the non-controlling interest’s proportionate share in the fair value of the subsidiary’s identifiable net assets. As at the subsequent balance sheet dates, the value of non-controlling interests is updated by the value of comprehensive income attributable to non-controlling interests.
2.3.2. Quantitative data
The table below presents subsidiaries with certain non-controlling interest (at present or in the past):
| Name of the entity | 31 December 2018 | 31 December 2017 |
| Pekao 1) | 79.97% | 79.98% |
| Alior Bank 2) | 68.07% | 67.77% |
| Przedsiębiorstwo Usług Medycznych PROELMED sp. z o.o. | 43.00% | 43.00% |
| Centrum Medyczne Gamma sp. z o.o. | 39.54% | 39.54% |
| Sanatorium Uzdrowiskowe “Krystynka” sp. z o.o. | 0.91% | 0.91% |
| UAB PZU Lietuva Gyvybes Draudimas | 0.66% | 0.66% |
| AAS Balta | 0.01% | 0.01% |
| NZOZ Trzebinia | n/a 3) | 0.25% |
1) As a result, PZU also holds non-controlling interests in Pekao’s subsidiaries listed in the table in section 2.2.
2) As a result, PZU also holds non-controlling interests in Alior Bank’s subsidiaries listed in the table in section 2.2.
3) Because of the merger between Elvita and NZOZ Trzebinia.
| Carrying amount of non-controlling interests | 31 December 2018 | 31 December 2017 (restated) 1) |
| Pekao Group | 18,251 | 18,636 |
| Alior Bank Group | 4,225 | 4,319 |
| Other | 6 | 6 |
| Total | 22,482 | 22,961 |
1) Information on restatement of data as at 31 December 2017 is presented in section 5.3.
Presented below is condensed financial information for the Pekao Group and the Alior Bank Group included in the consolidated financial statements.
| Assets | Pekao Group | Alior Bank Group | ||
| 31 December 2018 | 31 December 2017 (restated) 1) | 31 December 2018 | 31 December 2017 (restated) 1) | |
| Goodwill | 692 | 692 | - | - |
| Intangible assets | 1,777 | 2,032 | 658 | 662 |
| Other assets | 45 | 95 | 35 | 36 |
| Property, plant and equipment | 1,682 | 1,731 | 461 | 476 |
| Investment property | 13 | 24 | - | - |
| Loan receivables from clients | 128,242 | 118,660 | 53,811 | 50,797 |
| Financial derivatives | 1,765 | 1,608 | 579 | 454 |
| Entities measured by the equity method | - | - | 4 | - |
| Investment financial assets | 40,356 | 52,555 | 13,636 | 14,020 |
| Measured at amortized cost | 12,262 | n/a | 6,307 | n/a |
| Measured at fair value through other comprehensive income | 27,266 | n/a | 7,280 | n/a |
| Measured at fair value through profit or loss | 828 | n/a | 49 | n/a |
| Held to maturity | n/a | 3,500 | n/a | 1,339 |
| Available for sale | n/a | 33,593 | n/a | 12,259 |
| Measured at fair value through profit or loss | n/a | 1,731 | n/a | 87 |
| Loans | n/a | 13,731 | n/a | 335 |
| Deferred tax assets | 1,112 | 915 | 1,076 | 641 |
| Receivables | 2,235 | 2,017 | 815 | 785 |
| Cash and cash equivalents | 13,219 | 5,282 | 2,069 | 1,338 |
| Assets held for sale | 4 | 64 | - | - |
| Total assets | 191,142 | 185,675 | 73,144 | 69,209 |
| Equity and liabilities | Pekao Group | Alior Bank Group | ||
| 31 December 2018 | 31 December 2017 (restated) 1) | 31 December 2018 | 31 December 2017 (restated) 1) | |
| Equity | ||||
| Equity attributable to equity holders of the Parent | 22,824 | 23,304 | 6,207 | 6,374 |
| Share capital | 262 | 262 | 1,306 | 1,293 |
| Other capital | 20,721 | 20,562 | 5,609 | 5,019 |
| Retained earnings | 1,841 | 2,480 | (708) | 62 |
| Non-controlling interest | 11 | - | - | 1 |
| Total equity | 22,835 | 23,304 | 6,207 | 6,375 |
| Liabilities | ||||
| Provisions for employee benefits | 407 | 425 | 32 | 43 |
| Other provisions | 297 | 305 | 119 | 77 |
| Deferred tax liability | 33 | 38 | - | - |
| Financial liabilities | 164,636 | 157,903 | 65,373 | 60,905 |
| Other liabilities | 2,934 | 3,700 | 1,413 | 1,809 |
| Total liabilities | 168,307 | 162,371 | 66,937 | 62,834 |
| Total equity and liabilities | 191,142 | 185,675 | 73,144 | 69,209 |
1) Information on restatement of data as at 31 December 2017 is presented in section 5.3.
The table below presents consolidated data of the PZU Group with separated data of the Pekao Group and Alior Bank Group incorporating the effect of adjustments resulting from the measurement of assets and liabilities to fair value as at the date control was acquired and their subsequent amortization over time.
| Consolidated profit and loss account for the period from 1 January to 31 December 2018 | PZU Group | Elimination of Pekao’s data | Elimination of Alior Bank’s data | Elimination of consolidation adjustments | PZU Group without Pekao and Alior Bank |
| Gross written premiums | 23,470 | - | - | 16 | 23,486 |
| Reinsurers’ share in gross written premium | (755) | - | - | - | (755) |
| Net written premiums | 22,715 | - | - | 16 | 22,731 |
| Movement in net provision for unearned premiums | (365) | - | - | (8) | (373) |
| Net earned premiums | 22,350 | - | - | 8 | 22,358 |
| Revenue from commissions and fees | 3,374 | (2,380) | (819) | 58 | 233 |
| Net investment income | 11,679 | (6,644) | (3,692) | 23 | 1,366 |
| Net result on realization of financial instruments and investments | (15) | (190) | (111) | - | (316) |
| Movement in allowances for expected credit losses and impairment losses on financial instruments | (1,804) | 525 | 1,152 | - | (127) |
| Net movement in fair value of assets and liabilities measured at fair value | 770 | (5) | (608) | (5) | 152 |
| Other operating income | 1,693 | (443) | (458) | 27 | 819 |
| Claims, benefits and movement in technical provisions | (14,980) | - | - | - | (14,980) |
| Reinsurers’ share in claims, benefits and movement in technical provisions | 417 | - | - | - | 417 |
| Net insurance claims and benefits paid | (14,563) | - | - | - | (14,563) |
| Fee and commission expenses | (754) | 392 | 360 | - | (2) |
| Interest expenses | (2,046) | 1,117 | 776 | (16) | (169) |
| Acquisition expenses | (3,130) | - | - | (49) | (3,179) |
| Administrative expenses | (6,609) | 3,398 | 1,574 | (27) | (1,664) |
| Other operating expenses | (3,858) | 1,479 | 788 | (19) | (1,610) |
| Operating profit (loss) | 7,087 | (2,751) | (1,038) | - | 3,298 |
| Share of the net financial results of entities measured by the equity method | (1) | - | - | - | (1) |
| Profit (loss) before tax | 7,086 | (2,751) | (1,038) | - | 3,297 |
| Income tax | (1,718) | 694 | 286 | - | (738) |
| Net profit (loss) | 5,368 | (2,057) | (752) | - | 2,559 |
| Consolidated profit and loss account for the period from 1 January to 31 December 2017 1) (restated) | PZU Group | Elimination of Pekao’s data | Elimination of Alior Bank’s data | Elimination of consolidation adjustments | PZU Group without Pekao and Alior Bank |
| Gross written premiums | 22,847 | - | - | - | 22,847 |
| Reinsurers’ share in gross written premium | (612) | - | - | - | (612) |
| Net written premiums | 22,235 | - | - | - | 22,235 |
| Movement in net provision for unearned premiums | (881) | - | - | - | (881) |
| Net earned premiums | 21,354 | - | - | - | 21,354 |
| Revenue from commissions and fees | 2,319 | (1,279) | (831) | 15 | 224 |
| Net investment income | 9,051 | (3,677) | (3,900) | 13 | 1,487 |
| Net result on realization of financial instruments and investments | 247 | (58) | (7) | - | 182 |
| Movement in allowances for expected credit losses and impairment losses on financial instruments | (1,207) | 267 | 908 | - | (32) |
| Net movement in fair value of assets and liabilities measured at fair value | 380 | (5) | (36) | - | 339 |
| Other operating income | 1,178 | (185) | (169) | - | 824 |
| Claims, benefits and movement in technical provisions | (15,376) | - | - | - | (15,376) |
| Reinsurers’ share in claims, benefits and movement in technical provisions | 435 | - | - | - | 435 |
| Net insurance claims and benefits paid | (14,941) | - | - | - | (14,941) |
| Fee and commission expenses | (557) | 196 | 343 | - | (18) |
| Interest expenses | (1,350) | 607 | 635 | (13) | (121) |
| Acquisition expenses | (2,901) | - | - | (15) | (2,916) |
| Administrative expenses | (5,357) | 1,915 | 1,795 | - | (1,647) |
| Other operating expenses | (2,758) | 721 | 500 | - | (1,537) |
| Operating profit (loss) | 5,458 | (1,498) | (762) | - | 3,198 |
| Share of the net financial results of entities measured by the equity method | 16 | (22) | - | - | (6) |
| Profit (loss) before tax | 5,474 | (1,520) | (762) | - | 3,192 |
| Income tax | (1,289) | 367 | 231 | - | (691) |
| Net profit (loss) | 4,185 | (1,153) | (531) | - | 2,501 |
1) Information on restatement of data for the period from 1 January to 31 December 2017 is presented in section 5.3.
| Statement of comprehensive income | Pekao Group | Alior Bank Group | ||
| 1 January – 31 December 2018 | 1 June – 31 December 2017 (restated)1) | 1 January – 31 December 2018 | 1 January – 31 December 2017 (restated)1) | |
| Net profit | 2,057 | 1,153 | 752 | 531 |
| Other comprehensive income | 88 | 24 | 27 | 86 |
| Valuation of debt instruments measured at fair value through other comprehensive income | 13 | n/a | (7) | n/a |
| Valuation of equity instruments measured at fair value through other comprehensive income | 10 | n/a | - | n/a |
| Measurement of financial instruments available for sale | n/a | 6 | - | 86 |
| Net cash flow hedges | 65 | 11 | 34 | - |
| Actuarial gains and losses related to employee provisions | - | 7 | - | - |
| Total net comprehensive income | 2,145 | 1,177 | 779 | 617 |
| Cash flow statement | Pekao Group | Alior Bank Group | ||
| 1 January – 31 December 2018 | 1 June – 31 December 2017 | 1 January – 31 December 2018 | 1 January – 31 December 2017 | |
| Net cash flows from operating activities | (4,233) | 10,233 | 2,067 | 3,067 |
| Net cash flows from investing activities | 10,745 | (9,729) | (949) | (3,651) |
| Net cash flows from financing activities | 1,387 | (184) | (413) | 869 |
| Total net cash flows | 7,899 | 320 | 705 | 285 |
| Dividend-related information | Pekao Group | Alior Bank Group | ||
| 1 January – 31 December 2018 | 1 June – 31 December 2017 | 1 January – 31 December 2018 | 1 January – 31 December 2017 | |
| Date of ratifying the dividend | 21 June 2018 | 19 April 2017 | - | - |
| Record date | 6 July 2018 | 21 June 2017 | - | - |
| Dividend payout date | 20 July 2018 | 6 July 2017 | - | - |
| Dividend per share (PLN) | 7.90 | 8.68 | - | - |
| Dividend due to the PZU Group | 415 | 456 | - | - |
| Dividend due to non-controlling shareholders | 1,659 | 1,822 | - | - |
