56.9 Events after the financial year

56.9.1 Act on Financial Institutions Tax

On 15 January 2016, the Act on Financial Institutions Tax was published, which has been effective as of 1 February 2016. According to the Act, entities subject to taxation are assets of tax payers that include, among others, banks and insurance companies. In the case of banks, subject to taxation is the excess of assets amounting to over PLN 4,000,000 thousand (less, among other things, the value of treasury instruments), and in the case of insurance companies - over PLN 2,000,000 thousand (for insurance companies, this limit is valid for all tax payers, both direct and indirect subsidiaries and joint ventures of an entity or a group of entities affiliated with one another).

The tax calculated monthly amounts to 0.0366% of the tax base.

PZU Group has estimated the impact of the new tax on financial results, according to which the annual effect on the financial result will amount to some PLN 270—280 million (approximately PLN 250-260 million for the period from February to December 2016). Due to the fact that Alior Bank has not completed such a measurement, the amounts presented above concern only insurance companies of PZU Group.

56.9.2 New Act on Insurance Activity

Information on the entry into force of the new act on insurance activity is specified in Note 9.4.1.

56.9.3 Acquisition of the third share installment of Alior Bank

Information about the settlement of acquisition of the third share installment of Alior Bank SA is presented in Note 2.4.6.1.

56.9.4 Acquisition of shares in CM Cordis sp. z o.o.

On 1 February 2016, PZU Zdrowie SA acquired 7,312 shares in CM Cordis sp. z o.o., representing 100% of the share capital of CM Cordis sp. z o.o. sp. k. and 100% of votes at the General Meeting of Shareholders, with a nominal value of PLN 50 each.

Since the acquisition date, which is 1 February 2016, CM Cordis sp. z o.o. has been subjected to consolidation.

56.9.5 Administrative proceedings conducted by the Office of Competition and Consumer Protection

At the beginning of 2015, the President of OCCP instituted investigation proceedings against 17 insurance companies, including PZU Życie, regarding the use of practices that infringe collective consumer interests, alleging that by applying surrender fees in unit-linked insurance products insurance companies charge clients with the costs of the initial conclusion of insurance contracts of that type. In the course of the investigation procedure, PZU Życie suggested abandoning this practice and a change in the sample agreement used in the case of WPI product (“Wielowalutowy Program Inwestycyjny”, in English: “Multicurrency Investment Program”, code of the terms and conditions: FMIJ40), where the previously applied redemption rate was determined when clients withdrew from insurance agreements (redemption). On 14 October 2015, the President of OCCP issued a decision ordering PZU Życie to abandon the application of the previously used sample agreement, and to change the insurance agreements concluded pursuant to the aforementioned sample agreement by increasing the redemption rate.

PZU Życie complied with the above-mentioned decision, and, in particular, it introduced amendments to the applied sample agreement, as well as amended previously concluded agreements pursuant to the sample agreement. The Management Board of PZU is of the opinion that following the decision of the President of OCCP and its execution, PZU Życie is not bound by any other further unrealized effects of the change in the previously applied practice, and hence it is not aware of any further effects that might exert potential negative impact on the information presented in the consolidated financial statements.

Signatures of members of the Management Board of PZU

Person responsible for preparation of the consolidated financial statements:

Warsaw, 14 March 2016