Risk pertaining to technical rates and mortality

A sensitivity analysis is presented below of the net result and equity to changes in the assumptions used to calculate the capitalized annuities. The analysis does not take into account the impact of changes in valuation of the deposits taken into consideration in calculation of the reserve on the net financial result and equity.

The table also presents the impact of changes in the assumptions regarding annuity insurance in life insurance and the impact of changes in the assumptions regarding reserves for insurance contracts and investment contracts with DPF in life insurance, excluding annuity insurance. 

Sensitivity of reserves

Impact of changes in assumptions on:
the net financial resultequity
31 December 201331 December 201231 December 201331 December 2012
Changes in the assumptions to the net capitalized annuities in non-life insurance (in PLN million)
Technical rate  increase by 0.5 pp 411 397 411 397
Technical rate  decrease by 1.0 pp (1,064) (1,028) (1,064) (1,028)
Mortality at 110% of the currently assumed rate 126 119 126 119
Mortality at 90% of the currently assumed rate (141) (133) (141) (133)
Changes in the assumptions for annuities in life insurance (in PLN million)
Technical rate  decrease by 1 pp (36) (38) (36) (38)
Mortality at 90% of the currently assumed rate (13) (13) (13) (13)
Changes in the assumptions for reserves for insurance contracts and investment contracts with DPF in life insurance,
excluding annuity insurance (in PLN million)
Technical rate  decrease by 1 pp (2,221) (2,296) (2,221) (2,296)
Mortality at 110% of the currently assumed rate (937) (954) (937) (954)
110% morbidity and accident rate (195) (199) (195) (199)

Source: PZU data.