Structure of assets and liabilities

As at 31 December 2015, the PZU Group’s total assets were PLN 105,429.0 million, up 56.0% compared to the end of 2014. This growth resulted primarily from consolidating Alior Bank.

As at 31 December 2015, the total assets of PZU Group amounted to PLN 105,429.0 million and were 56.0% higher than at the end of 2014. The growth resulted mainly from the consolidation of Alior Bank.


The key components of the Group’s assets were investments (financial assets and investment property). In total, these assets amounted to PLN 90,477.6 million and were 53.4% higher than at the end of the previous year. They represented 85.8% of the Group’s total assets compared with 87.3% at the end of 2014.

The increase in the value of investments was mainly caused by the consolidation of Alior Bank, specifically resulting from the credits granted to the clients for the amount of PLN 30,331.6 million. This effect has been slightly offset by the following:

  • lower valuation of interest-bearing financial assets;
  • payment of the second installment of the 2013 dividend in January 2015 in the amount of PLN 1,468.0 million;
  • decrease in share of investment properties due to the transfer of part of the portfolio from achievement of the projected investment horizon to assets for sale.

The PZU Group’s receivables, including receivables from insurance contracts and current income tax, amounted to PLN 3,338.1 million, i.e. represented 3.2% of the assets. By comparison, at the end of 2014 the receivables amounted to PLN 3,085.8 million (4.6% of the Group’s assets) and their increase concerned mainly receivables from insurance intermediaries.

Non-current assets – in the form of intangible assets, goodwill and property, plant and equipment – were recognized in the statement of financial position at PLN 4,199.4 million. They comprised 4.0% of total assets. Their balance increased by 59.1% in 2015 in comparison with 2014, mostly due to the commencement of consolidation of Alior Bank, including:

  • calculation of the goodwill in the amount of PLN 720.6 million;
  • identification of new intangibles in the amount of PLN 300.0 million previously unrecognized by the company.

The calculation was based on a provisional acquisition settlement.

As at 31 December 2015, PZU Group’s cash and cash equivalents amounted to PLN 2,439.9 million (2.3% of the assets). A year earlier, they amounted to PLN 324.0 million. The sixfold increase growth of the asset category resulted mainly from the commencement of the consolidation of Alior Bank and concerned the cash collected at the central bank. The PLN 899.4 million change in the balance of assets held for sale resulted on the one hand from the finalization of the sale of PZU Lithuania and on the other from the transfer of a part of the investment property portfolio to this asset category.

Structure of PZU Group assets (%)



Similar to asset structure, the structure of liabilities at the end of 2015 experienced considerable changes resulting from the commencement of consolidation of Alior Bank. The technical and insurance provisions do not compose the majority of the balance total – they composed 39.2% at the end of 2015 and 59.4% at the end of 2014.

At the end of 2015, the level of technical provisions rose by PLN 1,113.4 million, specifically due to the following:

  • higher unearned premium provisions resulting from conclusion of several large agreements with protection period over one year and gradual implementation of price rises in motor insurance;
  • rise of provisions for claims and benefits resulting from a claim of a considerable unit value (damage covered by the XL and proportional facultative reinsurance program; damage reinsured in over 90%);
  • growth in technical provisions in individual unit-linked products, especially within the bancassurance channel – the increase results from sales of contracts exceeding the level of benefits paid, which was partially limited with the negative investment activity result;
  • higher provisions in individually continued products – resulting from growth and aging of the agreement portfolio.

At the end of 2015, equity amounted to PLN 15,178.9 million and grew from the end of 2014 (15.3% growth). The growth of consolidated equity concerned minority shares, which reached the value of PLN 2,255.2 million mainly due to the consolidation of Alior Bank. The capital falling to the shareholders of the dominating entity dropped by PLN 242.6 million from the previous year, which is the result of the lower net result for 2015, partially offset by retained earnings from 2014.

The biggest component of liabilities at the end of 2015 covered financial liabilities, the share of which rose from 13.9% to 42.2% from the previous year. Their balance amounted to PLN 44,487.8 million and included:

  • liabilities of PLN 33,655.7 million towards the clients (resulting mainly from the deposits of Alior Bank, which entered the structures of PZU Group on 18 December 2015);
  • liabilities from sell-buy-back transactions in the amount of PLN 3,794.3 million at the end of 2015 compared to PLN 4.411,5 million in 2014;
  • investment contracts in the amount of PLN 545.4 million compared to PLN 1,108.1 million at the end of 2014. The value drop by PLN 562.7 million compared with 2014 resulted from payments of subsequent tranches in short-term endowment investment products, both in the bancassurance and own channel, and additional surrenders in unit-linked products.
  • liabilities from issuance of own debt instruments for the total amount of PLN 3,536.5 million (in total EUR 850 million, including the 2015 issuance for EUR 350 million);
  • subordinated liabilities of Alior Bank including EUR 10 million loan and issued bonds with nominal value of PLN 708.9 million (book value of PLN 758.6 million at the end of 2015).

Structure of PZU Group liabilities (%)

The balance of other liabilities and provisions at the end of 2015 amounted to PLN 4,482.0 million compared with PLN 4,835.0 million at the end of 2014. The drop mainly concerned liabilities towards the shareholders from the payment of the dividend resulting from the 2013 profit in the amount of PLN 1,468.0 million (dividend paid in January 2015) and was partially offset by the liabilities of the consolidated Alior Bank and the outstanding amount from the purchase of tranche III of Alior Bank shares.


Cash Flow Statement

Total net cash flows as at the end of 2015 amounted to PLN 2,091.0 million and increased by PLN 2,373.6 million compared with the previous year. This increase is related to the high balance of cash and cash equivalents on the accounts of Alior Bank.

Significant off-balance items

Conditional assets of PZU Group as at the end of 2015 amounted to PLN 33.1 million, a considerable amount of which constituted guarantees issued by Bank Millennium SA for PZU and PZU Życie. Under the guarantee line agreement dated 7 October 2013 concluded between PZU and Bank Millennium SA, the bank extended bank guarantees (bid bonds and contractual guarantees) to PZU organizational units that participate in tender procedures for insurance services.

The value of conditional liabilities as at the end of 2015 amounted to PLN 10,082.0 million.

The significant year-on-year growth resulted mainly from the consolidation of Alior Bank. The value of conditional liabilities provided to Alior Bank clients amounted to PLN 8,941.7 million. This amount included PLN 7,371.8 million of conditional liabilities connected to financing and PLN 1,569.9 million of conditional guarantee liabilities.

Moreover, the balance of conditional liabilities include also claims, toward which no provisions have been recognized, including insurance-related claims.

The balance of conditional liabilities related to claims rose by PLN 379.8 million in 2015. This change resulted from a higher number of disputes and claim for damages resulting from disqualification from right to dividend, specified in point 53.1 of the Consolidated Financial Statements for 2015.