Pension insurance

In 2013, the operating profit in the pension insurance segment amounted to PLN 137.4 m, i.e. it increased by 39.6% compared with 2012. This was the result of:

  • fee and commission income which amounted to PLN 218.3 m, i.e. it increased by 9.6% compared with the prior year. This change was the result of:
    •     an increase of PLN 11.8 m in fee income from contributions due to the statutory increase in rates from 2.3% to 2.8% of the base contributions;
    •     an increase of PLN 16.6 m in the management fee resulting from a higher level of assets;
    •     a drop of PLN 10.3 m in income from the reserve account;
  • acquisition expenses amounted to PLN 16.8 m, i.e. they were 17.0% lower than in the prior year. This was primarily a result of a decline in commission income, since it is gradually amortized over time;
  • administrative expenses amounted to PLN 77.9 m, i.e. were 16.2% lower than in the prior year. In particular, the costs of maintaining pension fund registers declined (by PLN 13.5 m) due to lower in 2013 additional fee for Transfer Agent in respect of ensuring a certain level of service while in 2012 the salary was accrued for the first time for two years, 2011 and 2012. Additional payments to the Guarantee Fund decreased (by PLN 3.5 m), while the Transfer Agent’s fee was also lower. The increase in contributions transferred to OFE led to an increase of PLN 2.3 m in the fees collected by the Social Insurance Institution (ZUS).

Operating profit of the pension insurance segment (in PLN million)

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Source: PZU data.