Technical provisions | 31 December 2014 | 31 December 2013 |
Technical provisions – non-life insurance |
18,410,647 |
16,242,254 |
Unearned premiums reserve |
5,133,390 |
4,428,845 |
Unexpired risks reserve |
19,257 |
8,770 |
Outstanding claims provisions |
7,258,764 |
6,041,030 |
Provisions for the capitalized value of annuities |
5,997,595 |
5,761,332 |
Provisions for bonuses and rebates for the insured |
1,641 |
2,277 |
Technical provisions – life insurance |
21,756,238 |
21,082,162 |
Unearned premiums reserve |
97,456 |
102,396 |
Life insurance provision |
16,281,625 |
16,048,191 |
Outstanding claims provisions |
511,587 |
545,751 |
Provisions for bonuses and rebates for the insured |
650 |
616 |
Other technical provisions |
439,364 |
477,987 |
Unit-linked reserve |
4,425,556 |
3,907,221 |
Total technical provisions |
40,166,885 |
37,324,416 |
The table above presents also the amounts of provisions recognized for the old portfolio (as described in Note 5.17.2.2), which are as follows:
Technical provisions for old portfolio | 31 December 2014 | 31 December 2013 |
Life insurance provisions |
471,174 |
485,757 |
Other technical provisions |
194,623 |
199,699 |
- provisions for low interest rates |
123,273 |
127,149 |
- provisions for litigations |
71,350 |
72,550 |
IBNR and RBNP reserve |
2,298 |
2,873 |
Total technical provisions – old portfolio |
668,095 |
688,329 |
45.1 Technical provisions – non-life insurance
Gross technical provisions by classes specified in section II of the appendix to the Act on insurance activity | 31 December 2014 | 31 December 2013 |
Accident and sickness insurance (group 1 and 2) |
406,557 |
383,967 |
Motor third-party liability insurance (group 10) |
11,620,451 |
10,452,238 |
Other motor insurance (group 3) |
1,865,335 |
1,664,589 |
Sea, aircraft and transport insurance (groups 4, 5, 6, 7) |
113,307 |
70,633 |
Insurance against fire and other damage to property (groups 8, 9) |
1,681,882 |
1,377,179 |
Third-party liability insurance (groups 11, 12, 13) |
2,252,799 |
1,947,727 |
Credit insurance and suretyship (groups 14, 15) |
162,080 |
135,806 |
Assistance (group 18) |
151,905 |
121,669 |
Legal protection (group 17) |
2,782 |
2,627 |
Other (group 16) |
153,549 |
85,819 |
Total technical provisions |
18,410,647 |
16,242,254 |
Technical provisions, net of reinsurance, by classes specified in section II of the appendix to the Act on insurance activity | 31 December 2014 | 31 December 2013 |
Accident and sickness insurance (group 1 and 2) |
405,573 |
383,795 |
Motor third-party liability insurance (group 10) |
11,366,417 |
10,246,315 |
Other motor insurance (group 3) |
1,829,788 |
1,635,612 |
Sea, aircraft and transport insurance (groups 4, 5, 6, 7) |
87,795 |
59,173 |
Insurance against fire and other damage to property (groups 8, 9) |
1,501,794 |
1,230,550 |
Third-party liability insurance (groups 11, 12, 13) |
2,172,237 |
1,896,918 |
Credit insurance and suretyship (groups 14, 15) |
94,747 |
86,202 |
Assistance (group 18) |
147,603 |
121,126 |
Legal protection (group 17) |
2,781 |
2,627 |
Other (group 16) |
48,852 |
53,417 |
Total technical provisions |
17,657,587 |
15,715,735 |
Technical provisions – non-life insurance | 31 December 2014 | 31 December 2013 |
Short-term |
4,411,180 |
3,245,725 |
Long-term |
13,999,467 |
12,996,529 |
Total technical provisions |
18,410,647 |
16,242,254 |
Provisions are classified as long-term if the related cash flows are expected to occur after more than 12 months from the end of the reporting period.
Change in provisions
Change in unearned premiums reserve in non-life insurance | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
Opening balance |
4,428,845 |
-209,940 |
4,218,905 |
4,435,516 |
-190,865 |
4,244,651 |
Increase (decrease) in provisions for policies concluded in the current year |
4,335,362 |
-258,368 |
4,076,994 |
4,220,358 |
-160,456 |
4,059,902 |
Increase (decrease) in provisions for policies concluded in previous years |
-4,157,746 |
174,566 |
-3,983,180 |
-4,225,756 |
140,844 |
-4,084,912 |
Exchange differences during the period |
-18,556 |
5,948 |
-12,608 |
-1,290 |
537 |
-753 |
Change in group composition |
642,510 |
-19,282 |
623,228 |
17 |
- |
17 |
Transfers to assets held for sale in accordance with IFRS 5 1) |
-97,025 |
4,958 |
-92,067 |
- |
- |
- |
Closing balance |
5,133,390 |
-302,118 |
4,831,272 |
4,428,845 |
-209,940 |
4,218,905 |
1) Transfer of PZU Lietuva's provisions to liabilities held for sale due to the transaction described in Note 59.9.1. The decrease of reserves was translated at average rate presented in Note 5.3.
Change in unexpired risk reserve in non-life insurance | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
Opening balance |
8,770 |
-16 |
8,754 |
8,202 |
-5 |
8,197 |
Increase (decrease) in provisions for policies concluded in the current year |
17,077 |
12 |
17,089 |
5,546 |
- |
5,546 |
Increase (decrease) in provisions for policies concluded in previous years |
-5,316 |
- |
-5,316 |
-5,016 |
-12 |
-5,028 |
Exchange differences during the period |
-561 |
4 |
-557 |
38 |
1 |
39 |
Change in group composition |
12,739 |
- |
12,739 |
- |
- |
- |
Transfers to assets held for sale in accordance with IFRS 5 |
-13,452 |
- |
-13,452 |
- |
- |
- |
Closing balance |
19,257 |
- |
19,257 |
8,770 |
-16 |
8,754 |
1) Transfer of PZU Lietuva's provisions to liabilities held for sale due to the transaction described in Note 59.9.1. The decrease of reserves was translated at average rate presented in Note 5.3.
Change in outstanding claims provisions in non-life insurance | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
Opening balance, including: |
6,041,030 |
-170,375 |
5,870,655 |
5,362,089 |
-304,051 |
5,058,038 |
- for claims reported |
2,072,193 |
-121,826 |
1,950,367 |
1,970,611 |
-234,276 |
1,736,335 |
- for claims incurred but not reported (IBNR) |
2,615,113 |
-29,989 |
2,585,124 |
2,413,008 |
-55,337 |
2,357,671 |
- for claims handling expenses |
1,353,724 |
-18,560 |
1,335,164 |
978,470 |
-14,438 |
964,032 |
Paid benefits concerning claims incurred in previous years, including: |
-1,575,921 |
54,322 |
-1,521,599 |
-1,506,275 |
265,311 |
-1,240,964 |
- paid claims and benefits |
-1,313,456 |
50,481 |
-1,262,975 |
-1,276,357 |
261,990 |
-1,014,367 |
- claims handling costs |
-262,465 |
3,841 |
-258,624 |
-229,918 |
3,321 |
-226,597 |
Increase (decrease) in provisions, including: |
2,450,810 |
-167,606 |
2,283,204 |
2,185,105 |
-130,145 |
2,054,960 |
- for losses incurred in the current year |
2,041,127 |
-44,022 |
1,997,105 |
1,895,793 |
-35,684 |
1,860,109 |
- for losses incurred in previous years |
409,683 |
-123,584 |
286,099 |
289,312 |
-94,461 |
194,851 |
Other changes |
2 |
8,789 |
8,791 |
- |
-1,834 |
-1,834 |
Exchange differences during the period |
-10,665 |
6,304 |
-4,361 |
111 |
344 |
455 |
Change in group composition |
454,412 |
-42,844 |
411,568 |
- |
- |
- |
Transfers to assets held for sale in accordance with IFRS 5 |
-100,904 |
14,510 |
-86,394 |
- |
- |
- |
Closing balance |
7,258,764 |
-296,900 |
6,961,864 |
6,041,030 |
-170,375 |
5,870,655 |
- for claims reported |
2,704,345 |
-228,795 |
2,475,550 |
2,072,193 |
-121,826 |
1,950,367 |
- for claims incurred but not reported (IBNR) |
2,868,611 |
-46,259 |
2,822,352 |
2,615,113 |
-29,989 |
2,585,124 |
- for claims handling expenses |
1,685,808 |
-21,846 |
1,663,962 |
1,353,724 |
-18,560 |
1,335,164 |
Change in provisions for the capitalized value of annuities– non-life insurance | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
Opening balance |
5,761,332 |
-146,180 |
5,615,152 |
5,660,281 |
-254,413 |
5,405,868 |
Paid claims concerning losses incurred in previous years |
-182,358 |
15,853 |
-166,505 |
-179,944 |
3,839 |
-176,105 |
Increase (decrease) in provisions for losses incurred in the previous years |
76,457 |
-17,444 |
59,013 |
23,321 |
104,997 |
128,318 |
Changes in assumptions resulting from technical interest rate changes |
-17,284 |
446 |
-16,838 |
-16,981 |
775 |
-16,206 |
Increase in provisions for losses incurred in the current year |
278,344 |
-587 |
277,757 |
274,655 |
- |
274,655 |
Other changes |
- |
3,916 |
3,916 |
- |
-1,378 |
-1,378 |
Exchange differences during the period |
-8 |
40 |
32 |
- |
- |
- |
Change in group composition |
81,112 |
-10,086 |
71,026 |
- |
- |
- |
Closing balance |
5,997,595 |
-154,042 |
5,843,553 |
5,761,332 |
-146,180 |
5,615,152 |
45.2 Life insurance technical provisions
Change in life insurance provision – insurance contracts | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
Opening balance |
16,526,794 |
- |
16,526,794 |
16,208,275 |
- |
16,208,275 |
Increase (decrease) in provisions related to current year policies |
490,085 |
- |
490,085 |
564,859 |
- |
564,859 |
Increase (decrease) in provisions related to prior year policies |
-306,608 |
- |
-306,608 |
-260,234 |
- |
-260,234 |
Changes in assumptions resulting from technical interest rate changes |
45,395 |
- |
45,395 |
17,701 |
- |
17,701 |
Exchange differences |
-34,027 |
- |
-34,027 |
-3,807 |
-3,807 |
Closing balance |
16,721,639 |
- |
16,721,639 |
16,526,794 |
- |
16,526,794 |
Change in life unit-linked insurance provision, gross | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
Opening balance |
3,907,221 |
- |
3,907,221 |
3,113,798 |
- |
3,113,798 |
Increases in the fund due to premiums |
1,045,805 |
- |
1,045,805 |
1,082,943 |
- |
1,082,943 |
Payments deducted from the fund for risk, administration and other |
-90,026 |
- |
-90,026 |
-71,333 |
- |
-71,333 |
Revenue from the fund’s investments |
147,597 |
- |
147,597 |
123,774 |
- |
123,774 |
Decreases in the fund due to claims, redemptions, etc. |
-547,991 |
- |
-547,991 |
-354,088 |
- |
-354,088 |
Other decreases |
-60,274 |
- |
-60,274 |
-43,826 |
- |
-43,826 |
Other increases |
23,224 |
- |
23,224 |
55,953 |
- |
55,953 |
Closing balance |
4,425,556 |
- |
4,425,556 |
3,907,221 |
- |
3,907,221 |
Change in provisions for outstanding claims, gross | 1 January - 31 December 2014 | 1 January - 31 December 2013 |
gross | reinsurers' share | net of reinsurance | gross | reinsurers' share | net of reinsurance |
RBNP at the beginning of the period |
138,366 |
- |
138,366 |
115,394 |
- |
115,394 |
IBNR at the beginning of the period |
407,385 |
- |
407,385 |
400,962 |
- |
400,962 |
Total RBNP and IBNR at the beginning of the period |
545,751 |
- |
545,751 |
516,356 |
- |
516,356 |
Provisions for claims applied during the year |
-523,413 |
- |
-523,413 |
-516,356 |
- |
-516,356 |
Provisions for claims created during the year |
489,249 |
- |
489,249 |
545,751 |
- |
545,751 |
Total RBNP and IBNR at the end of the period |
511,587 |
- |
511,587 |
545,751 |
- |
545,751 |
RBNP at the end of the period |
112,728 |
- |
112,728 |
138,366 |
- |
138,366 |
IBNR at the end of the period |
398,859 |
- |
398,859 |
407,385 |
- |
407,385 |