5.7 Simplifications in the segment note

Some simplifications in the segment note have been made, as compared with the requirements of IFRS 8. Justification of the simplifications:

  • Withdrawal from presentation of information about allocation of all assets and liabilities to individual segments – resulting from failure to prepare and present such information to the entity’s chief operating decision maker. The key information submitted to the entity’s chief operating decision maker is the profit or loss of given segments, on which basis management decisions, including decisions about allocation of resources are made. Analysis of assets and liabilities allocated to the segments is limited to the monitoring of compliance with the regulatory requirement under PAS, i.e. having assets covering technical provisions exceed the sum of those provisions (analysis by individual insurance companies instead of product groups);
  • Presentation of the net profit or loss on an investment with a single amount expressed as a difference between realised and unrealised revenue and expensed from investments – resulting from an internal assessment of the profit or loss of the segments on the basis of the total measure of the profit or loss on investments;
  • Revenue and expenses other than realised and unrealised investment revenue and expenses not allocated to the “investments” segment – resulting from the method of analysis of data regarding that segment and from impracticality of such allocation;
  • Presentation of other operating revenue and expenses and financial expenses of the companies PZU and PZU Życie for their operating segments combined (and as a result, not allocating any amounts in this respect to the “investment contracts” segment) – resulting from the measures of profit of the operating segments adopted and from impracticality of such allocation;
  • Presentation of income tax charges expressed as a single sum of consolidated data – resulting from the measures of profit of the operating segments adopted and from impracticality of such allocation.

Profit and loss account
for the period from 1 January 2013
to 31 December 2013
Corporate insurance (non-life)Mass insurance
(non-life)
Group and individually continued insurance (life)Individual insurance (life)Investments Pension insuranceUkraineLietuvaInvestment contractsOther operationsPresentation differencesReal estate and capital instrumentsInvestment contractsTechnical rate in life insurancePrevention fund, equalization reserve and designation to the Company Social Benefit FundConsolidation adjustments and unallocated itemsConsolidated valueProfit and loss account
for the period from 1 January 2013
to 31 December 2013
PASPASPASPASPASPASIFRSIFRSPASPASPASPAS-IFRSPAS-IFRSPAS-IFRSPAS-IFRSIFRSIFRS
Gross premium written externally  1.735.259 6.533.743 6.415.178 1.329.894 - - 203.640 262.289 1.097.951 - - - (1.097.951) - - - 16.480.002 Gross insurance premium written externally
Gross premium written between segments 4.898 - - - - - - - - - - - - - - (4.898) - Gross insurance premium written between segments
Gross written insurance premium 1.740.157 6.533.743 6.415.178 1.329.894 - - 203.640 262.289 1.097.951 - - - (1.097.951) - - (4.898) 16.480.002  
Reinsurers’ share in gross written premium (160.273) (43.756) (2.848) (58) - - (31.253) (20.795) - - - - - - - 1.946 (257.037) Reinsurers’ share in gross written insurance premium
Net written premium 1.579.884 6.489.987 6.412.330 1.329.836 - - 172.387 241.494 1.097.951 - - - (1.097.951) - - (2.952) 16.222.966 Net written premium
                                     
Movement in the unearned premium reserve and gross unexpired risk reserve (35.703) 64.717 1.739 946 - - (9.036) (17.606) 606 - 19.631 - (606) - - 1.115 25.803 Movement in net unearned premium reserve
Reinsurer’s share in the unearned premium reserve and gross unexpired risk reserve 11.571 (2.419) - - - - 7.221 3.258 - - (19.631) - - - - - -  
Net earned premium 1.555.752 6.552.285 6.414.069 1.330.782 - - 170.572 227.146 1.098.557 - - - (1.098.557) - - (1.837) 16.248.769 Net earned premium
                                     
                      340.282 - 34.271 - - (54.591) 319.962 Fee and commission income
Investment income, including: 140.039 556.759 735.242 304.969 4.858.981 11.580 24.373 6.511 89.115 65.018 (6.792.587)           -  
Net result on investments (external activity) 140.039 556.759 735.242 304.969 896.559 11.580 24.373 6.511 89.115 65.018 (2.830.165)           -  
Net result on investments (inter-segment activity) - - - - 3.962.422 - - - - - (3.962.422)           -  
                      1.835.955 - - - - 8.977 1.844.932 Net investment income (external activity)
                      3.962.422 - - - - (3.962.422) - Net investment income (inter-segment activity)
                      99.493 24.782 - - - (99.230) 25.045 Net result on the realization of investments and impairment charges 
                      781.576 (105.879) - - - (57.606) 618.091 Net change in the fair value of assets and liabilities carried at fair value
Other net technical income 11.522 34.872 1.524 18.765 - - - - 15.463 - (82.146)           -  
Revenues on core business of non-insurance entities - - - - - 218.300 - - - 400.948 (619.248)           -  
Other operating income (not applicable to insurance entities) - - - - - 3.090 - - - 6.002 634.404 (16.189) (15.462) - - (120.736) 491.109 Other operating income
                                     
Gross claims paid (890.923) (3.410.960) (4.290.148) (609.567) - - (83.190) (147.070) (1.334.969) - (1.609.046) - 1.157.463 - 6.323 16.810 (11.195.277) Claims and movement in technical reserves
Movement in the gross claims reserve (1.959) (761.742) (9.526) (17.034) - - (5.417) (359) 5.221 - 790.816           -  
Reinsurers’ share in claims paid 112.577 154.450 164 - - - 2.516 10.829 - - (242.600) - - - - (3.883) 34.053 Claims and movement in insurance liabilities ceded to re-insurers
Reinsurer's share in the movement in reserves (73.805) (174.716) - - - - 5.199 (2.487) - - 245.809           -  
Net insurance claims (854.110) (4.192.968) (4.299.510) (626.601) - - (80.892) (139.087) (1.329.748) - (815.021) - 1.157.463 - 6.323 12.927 (11.161.223) Net insurance claims
Movement in other net technical reserves, life insurance reserves where the policyholder bears the investment risk, loss ratio (risk) equalization reserves (5.887) (436) (270.964) (712.390) - - - - 172.272 - 817.405              
                      - - (77.715) - - - (77.715) Claims and changes in valuation of investment contracts
Net premiums and rebates for insureds including the movement in reserves (298) - (523) - - - - - (4) - 825           -  
Other net technical income (47.428) (261.850) (108.433) (12.924) - - - - (4.683) - 435.318           -  
Acquisition cost (300.302) (1.141.493) (322.765) (109.519) - (16.776) (62.446) (67.137) (18.318) - - - - - (126) 22.944 (2.015.938) Acquisition cost
Administrative costs (115.829) (546.865) (545.720) (53.225) - (77.923) (35.904) (26.490) (11.377) - - 1.131 - - (20.568) 26.290 (1.406.480) Administrative costs
Reinsurance commissions and profit-sharing 8.022 66.967 501 - - - - - - - (75.490)           -  
Expenses of the core business of non-insurance entities - - - - - - - - - (369.897) 369.897           -  
Other operating expenses (not applicable to insurance entities) - - - - - (839) - - - (6.519) (874.683) (8.946) - - 84.583 100.805 (705.599) Other operating expenses
Result on insurance / Operating profit (loss) 391.481 1.067.271 1.603.421 139.857 4.858.981 137.432 15.702 944 11.277 95.552 18.402 (105.101) - - 70.212 (4.124.479) 4.180.952 Operating profit (loss)
Other operating income 65.131 14.763     796 3.613     (84.303)              
Other operating expenses (58.067) (50.159)     (874) (4.075)     113.175              
Financial costs               (57.112) (47.270)         42.718 (61.664) Financial costs
                                  1.404 Share of profits (losses) of entities accounted for using the equity method
                                  4.120.692 Gross profit (loss)
                                  (825.579) Income tax
                                  3.295.113 Net profit (loss)

table 1

Profit and loss account
for the period from 1 January 2012
to 31 December 2012
Corporate insurance (non-life)Mass insurance
(non-life)
Group and individually continued insurance (life)Individual insurance (life)Investments Pension insuranceUkraine
(non-life)
Baltic countries
(non-life)
Investment contractsOther operationsPresentation differencesReal estate and capital instrumentsInvestment contractsTechnical rate in life insurancePrevention fund, equalization reserve and designation to the Company Social Benefit FundConsolidation adjustments and unallocated itemsConsolidated valueProfit and loss account
for the period from 1 January 2012
to 31 December 2012
PASPASPASPASPASPASIFRSIFRSPASPASPASPAS-IFRSPAS-IFRSPAS-IFRSPAS-IFRSIFRSIFRS
Gross premium written externally  1.837.619 6.613.586 6.364.007 1.089.970 - - 142.228 195.721 1.859.439 - - - (1.859.439) - - - 16.243.131 Gross insurance premium written externally
Gross premium written between segments 2.293 - - - - - - - - - - - - - - (2.293) - Gross insurance premium written between segments
Gross written insurance premium 1.839.912 6.613.586 6.364.007 1.089.970 - - 142.228 195.721 1.859.439 - - - (1.859.439) - - (2.293) 16.243.131  
Reinsurers’ share in gross written premium (151.837) (46.759) (2.664) (86) - - (25.789) (12.083) - - - - - - - 1.942 (237.276) Reinsurers’ share in gross written insurance premium
Net written premium 1.688.075 6.566.827 6.361.343 1.089.884 - - 116.439 183.638 1.859.439 - - - (1.859.439) - - (351) 16.005.855 Net written premium
Movement in the unearned premium reserve and gross unexpired risk reserve 57.288 (59.721) 842 2.042 - - (13.142) (11.103) (705) - 23.678 - 705 - - (499) (615) Movement in net unearned premium reserve
Reinsurer’s share in the unearned premium reserve and gross unexpired risk reserve 19.096 5.571 - - - - (287) (702) - - (23.678) - - - - - 0  
Net earned premium 1.764.459 6.512.677 6.362.185 1.091.926 - - 103.010 171.833 1.858.734 - - - (1.858.734) - - (850) 16.005.240 Net earned premium
                      199.165 - 37.937 - - - 237.102 Fee and commission income
Investment income, including: 127.357 537.003 955.194 346.956 2.760.743 13.273 17.741 9.890 191.383 1.550 (4.961.090)           -  
Net result on investments (external activity) 127.357 537.003 955.194 346.956 1.525.225 13.273 17.741 9.890 191.383 1.550 (3.725.572)           -  
Net result on investments (inter-segment activity) - - - - 1.235.518 - - - - - (1.235.518)           -  
                      2.040.830 - - - - 6.224 2.047.054 Net investment income (external activity)
                      1.235.518 - - - - (1.235.518) - Net investment income (inter-segment activity)
                      385.556 104.163 - - - 31.549 521.268 Net result on the realization of investments and impairment charges 
                      1.095.224 (64.008) - - - 105.191 1.136.407 Net change in the fair value of assets and liabilities carried at fair value
Other net technical income 16.054 78.071 3.434 12.426 - - - - 15.937 - (125.922)           -  
Revenues on core business of non-insurance entities - - - - - 199.165 - - - 386.018 (585.183)           -  
Other operating income (not applicable to insurance entities) - - - - - 1.053 - - - 11.308 720.476 6.456 (15.937) - - (135.328) 588.028 Other operating income
                                     
Gross claims paid (952.143) (3.575.950) (4.230.510) (614.035) - - (55.163) (108.293) (3.186.844) - (1.257.170) - 2.013.514 (401.872) (5.040) 2.208 (12.371.298) Claims and movement in technical reserves
Movement in the gross claims reserve (323.033) (762.847) 86.511 9.255 - - (322) (3.662) 1.813 - 992.285           -  
Reinsurers’ share in claims paid 66.058 57.480 121 - - - 2.453 3.540 - - 23.919 - - - - (1.004) 152.567 Claims and movement in insurance liabilities ceded to re-insurers
Reinsurer's share in the movement in reserves 35.085 (17.661) - - - - (842) (3.238) - - (13.344)           -  
Net insurance claims (1.174.033) (4.298.978) (4.143.878) (604.780) - - (53.874) (111.652) (3.185.031) - (254.310) - 2.013.514 (401.872) (5.040) 1.204 (12.218.731) Net insurance claims
Movement in other net technical reserves, life insurance reserves where the policyholder bears the investment risk, loss ratio (risk) equalization reserves 1.826 3.214 (848.700) (594.055) - - - - 1.171.526 - 266.189              
                      - - (176.780) - - - (176.780) Claims and changes in valuation of investment contracts
Net premiums and rebates for insureds including the movement in reserves 2.550 97 (1.337) - - - - - (9) - (1.301)           -  
Other net technical income (71.062) (311.064) (59.089) (3.752) - - - - (4.277) - 449.244           -  
Acquisition cost (336.218) (1.136.834) (317.716) (90.824) - (20.212) (27.998) (49.047) (31.215) - - 10 - - - 9.703 (2.000.351) Acquisition cost
Administrative costs (107.687) (568.609) (578.417) (53.383) - (92.967) (28.450) (18.861) (15.978) - - 5.730 - - (20.000) 38.321 (1.440.300) Administrative costs
Reinsurance commissions and profit-sharing (5.715) (15.929) 1.399 - - - - - - - 20.245           -  
Expenses of the core business of non-insurance entities - - - - - - - - - (357.038) 357.038           -  
Other operating expenses (not applicable to insurance entities) - - - - - (1.863) - - - (7.367) (701.104) (3.977) - - 11.699 83.874 (618.738) Other operating expenses
Result on insurance / Operating profit (loss) 217.531 799.648 1.373.075 104.514 2.760.743 98.449 10.430 2.163 1.070 34.471 140.575 48.374 - (401.872) (13.341) (1.095.630) 4.080.200 Operating profit (loss)
Other operating income 215.391 71.904     2.664 2.536     (292.495)              
Other operating expenses (121.226) (61.212)     (2.523) (3.419)     188.380              
Financial costs               (5.030) (36.460)           (41.490) Financial costs
                                  4.038.710 Gross profit (loss)
                                  (784.882) Income tax
                                  3.253.828 Net profit (loss)

table 2

2013PolandBalticsUkraineUnallocated (consolidation eliminations and other)Consolidated value
Gross written premium - external 16 014 074 262 289 203 640 - 16 480 003
Gross written premium - cross-segment 2 439 - - (2 439) -
Revenue from commissions and fees 319 962 - - - 319 962
Net investment income (external transactions) 1 810 078 7 783 24 026 3 045 1 844 932
Net profit or loss on realization and impairment loss on investments (external transactions) 35 196 (1 905) 382 (8 628) 25 045
Net change in the fair value of assets and liabilities measured at fair value (external transactions) 596 377 633 (20) 21 101 618 091
           
Non-current assets other than financial instruments 1) 1 216 845 14 125 5 822 (785) 1 236 007
Deferred tax assets 15 351 - 1 598 - 16 949
Assets 62 087 723 415 708 259 963 (400 973) 62 362 421

1) Intangible assets and property, plant and equipment

2012PolandBalticsUkraineUnallocated (consolidation eliminations and other)Consolidated value
Gross written premiums - external 15 905 182 195 721 142 228 - 16 243 131
Gross written premiums - cross-segment 827 - - (827) -
Revenue from commissions and fees 237 102 - - - 237 102
Net investment income (external transactions) 2 024 286 6 168 14 091 2 509 2 047 054
Net profit or loss on realization and impairment loss on investments (external transactions) 524 150 927 (370) (3 439) 521 268
Net change in the fair value of assets and liabilities measured at fair value (external transactions) 1 129 777 2 795 - 3 835 1 136 407
           
Non-current assets other than financial instruments 1) 1 159 760 10 625 6 717 (1 547) 1 175 555
Deferred tax assets 12 753 - 1 210 - 13 963
Assets 55 025 653 284 912 158 151 440 844 55 909 560

1) Intangible assets and property, plant and equipment