4. Key estimates and judgments

Preparation of the consolidated financial statements in accordance with IFRS requires reliance on material estimates and judgments which have an effect on the financial information presented in the consolidated financial statements as regards the value of assets, liabilities, revenue and expenses as well as disclosures.

Although the estimates and judgments used are made to the best of the knowledge of the Management Boards of the PZU Group companies concerning current activities and events, the actual results may differ from those anticipated.

The aforesaid estimates and judgments are reviewed on an ongoing basis, based on past experience and other factors, including expectations as to future events, which, based on the information available as at the date of these consolidated financial statements, appeared to be reasonable.