5.4 Segments characteristics

Description of all the reportable segments of the PZU Group, including presentation of the accounting policies used for presentation of financial data:

  • Corporate insurance (non-life insurance) – reporting in accordance with Polish Accounting Standards – a wide range of property insurance products, third party and motor insurance products customised to meet clients' expectations and with individual risk assessment, offered by PZU to big enterprises;
  • Retail client insurance (non-life insurance) – reporting in accordance with Polish Accounting Standards – a wide range of property insurance products, accident insurance products, third party and motor insurance products offered by PZU to retail clients and entities in the SMB sector;
  • Group and individually continued insurance (life insurance) - reporting in accordance with Polish Accounting Standards – group insurance offered by PZU Życie to groups of employees and other formal groups (e.g. trade unions), intended for individuals who are in a legal relation with the insurer (e.g. employer, trade union) and individually continued insurance where the insurer has obtained the right to continue insurance individually under group insurance. The offer of PZU Życie comprises a wide range of group insurance coverage, investment insurance (other than investment contracts) and health insurance;
  • Individual insurance (life insurance) - reporting in accordance with Polish Accounting Standards – insurance offered by PZU Życie to individual clients whereby an insurance contract covers a given individual who is subject to separate risk assessment; the offer of PZU Życie comprises a wide range of group insurance coverage, investment insurance (other than investment contracts) and health insurance;
  • Investments - reporting in accordance with Polish Accounting Standards – comprising investment activities in respect of the PZU Group‟s own funds constituting a surplus of investments over technical provisions in the
  • key insurance companies of the PZU Group (PZU and PZU Życie) increased by surplus of investment income over the risk-free rate corresponding to the value of technical provisions of PZU and PZU Życie in non-investment products. Additionally, the “Investments” segment includes income earned on other excess cash in the PZU Group;
  • Pension insurance - reporting in accordance with Polish Accounting Standards – comprising the company PZU PTE;
  • Ukraine (non-life and life insurance; in 2012: non-life insurance only) – reporting in accordance with Ukrainian standards – including PZU Ukraine and PZU Ukraine Life, in 2012: PZU Ukraine only;
  • Baltic States (non-life and life insurance; in 2012: non-life insurance only) – reporting in accordance with Lithuanian standards – including PZU Lietuva, operating in Lithuania, and also in Latvia and Estonia via its branches, and UAB PZU Lietuva Gyvybes Draudimas; in 2012: PZU Lietuva only;
  • Investment contracts - reporting in accordance with Polish Accounting Standards – comprising products of PZU Życie which do not result in a transfer of significant insurance risk in accordance with IFRS 4 and are not insurance contracts (i.e. some of the products with a guaranteed rate of return and some unit-linked products). In accordance with IFRS and as required by IAS 39, these products are accounted for using the deposit method and measured depending on the structure of a product – at amortised cost or fair value. Written premium on these products is not recognised in accordance with IFRS. In accordance with Polish Accounting Standards, all of the aforesaid products are disclosed as insurance products and written premium is recognized;
  • Other – reporting in accordance with IFRS or PAS (presentation of a profit or loss of a segment under “other” is not required under IFRS 8) – comprises other consolidated entities which do not belong to any of the aforesaid segments and whose revenue is earned mainly from the manufacture of fittings, heaters, casting and services.