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57. Related party transactions

57.1 Remuneration of Members of the Management and Supervisory Board, high level management and supervisory boards of PZU Group entities included in consolidation, including profit sharing payments and information on advance payments, loans, borrowings and guarantees given to such Members

In 2014 and 2013 the companies in PZU Group did not grant any loans or any other similar benefits to members of the Management Boards, high-level management and members of their Supervisory Boards.

57.1.1. Remunerations in parent entity

Remuneration of members of the Management Board, high level management and members of the Supervisory Board of PZU is presented below:

Remunerations and other short-term employee benefits paid by PZU1 January - 31 December 20141 January - 31 December 2013
  including bonuses and special prizes: including bonuses and special prizes:
Management Board, including: 8,226 2,812 9,503 3,024
Andrzej Klesyk 2,714 914 2,780 980
Przemysław Dąbrowski 1,054 313 1,135 336
Dariusz Krzewina 1,314 534 642 -
Barbara Smalska 1) 1,088 399 593 -
Tomasz Tarkowski 891 228 1,102 336
Ryszard Trepczyński 1,165 424 1,535 736
Bogusław Skuza 2) - - 1,716 636
High level management (Directors of PZU Group), including: 3,717 1,193 3,263 1,122
Rafał Grodzicki 936 312 874 250
Przemysław Henschke 936 312 804 180
Dariusz Krzewina 3) - - 291 180
Sławomir Niemierka 860 199 863 200
Barbara Smalska 3) - - 431 4) 312 5)
Tobiasz Bury 985 370 6) - -
Supervisory Board, including: 1,221 - 1,224 -
Aleksandra Magaczewska 97 - - -
Waldemar Maj 90 - 192 -
Zbigniew Ćwiąkalski 168 - 168 -
Tomasz Zganiacz 144 - 144 -
Dariusz Daniluk 57 - 120 -
Zbigniew Derdziuk 120 - 120 -
Dariusz Filar 120 - 120 -
Dariusz Kacprzyk 64 - - -
Jakub Karnowski 64 - - -
Włodzimierz Kiciński 57 - 120 -
Alojzy Nowak 120 - 120 -
Maciej Piotrowski 120 - 120 -

Remunerations and other short-terms employee benefits paid by other PZU Group entities1 January - 31 December 20141 January - 31 December 2013
  including bonuses: including bonuses:
Management Board, including: 2,942 996 3,826 1,224
Andrzej Klesyk - - 320 -
Przemysław Dąbrowski 599 200 654 255
Dariusz Krzewina 553 133 1,121 561
Barbara Smalska 1) 596 225 327 -
Tomasz Tarkowski 536 179 510 153
Ryszard Trepczyñski 658 259 654 255
Bogusław Skuza 2) - - 240 -
High level management (Directors of PZU Group), including: 1,844 478 2,235 1,071
Rafał Grodzicki 455 119 742 357
Przemysław Henschke 455 119 742 357
Sławomir Niemierka 427 70 751 357
Tobiasz Bury 507 170 6) - -

Total estimated valued of benefits in kind allocated by PZU and its subsidiaries1 January – 31 December 20141 January – 31 December 2013
Management Board, including: 1,307 1,343
Andrzej Klesyk 282 251
Przemysław Dąbrowski 186 167
Dariusz Krzewina 3) 217 214
Barbara Smalska 1) 3) 205 151
Tomasz Tarkowski 191 181
Ryszard Trepczyński 226 166
Bogusław Skuza 2) - 213
High level management (Directors of PZU Group), including: 908 401
Rafał Grodzicki 170 183
Przemysław Henschke 203 55
Sławomir Niemierka 358 163
Tobiasz Bury 177 -

1) On 6 October 2014, Barbara Smalska resigned from the position of Member of the Management Board of PZU as at 31 December 2014.
2) On 27 December 2013, Bogusław Skuza resigned from the position of Member of the Management Board of PZU as at 31 December 2013.
3) On 12 March 2013, the Supervisory Board of PZU appointed Dariusz Krzewina and Barbara Smalska to the position of Members of the Management Board effective from 15 March 2013. (additionally Dariusz Krzewina and Barbara Smalska were Directors of PZU Group respectively till 14 March 2013 and form 5 January 2013 respectivly till 14 March 2013)
4) The aforementioned amount includes a bonus for 2012 as well as remuneration for the performance of other functions at PZU and PZU Życie until the date of appointment as the Group’s Director.
5) Amount representing the bonus for 2012 granted during the performance of other functions in PZU and PZU Życie.
6) Amount representing the bonus for 2013 granted during the performance of other functions in PZU and PZU Życie.

57.1.2. Remuneration in other PZU Group entities

Remuneration paid to members of the Management Boards and Supervisory Boards of other companies in PZU Group:

Type of services1 January – 31 December 20141 January – 31 December 2013
Members of the Management Boards 18,786 11,015
Members of the Supervisory Boards 844 898

57.2 Other related party transactions

Balances and turnovers of transactions between PZU Group and related parties1 January – 31 December 2014 and as at 31 December 20141 January – 31 December 2013 and as at 31 December 2013
Key management personnel of the major entities 1Other related parties2)Key management personnel of the major entities 1Other related parties2)
Gross written premium      
in non-life insurance - 860 - -
in life insurance (including investment contracts) - - - -
Other revenue - - - 15
Costs - 18 - -
Including impairment losses on receivables recognized in current period -   - -
Receivables   40  
gross value - 40 - 8,308
impairment losses - - - 8,306
net value - 40 - 2
Liabilities - 11 - -
Contingent assets - - - -
Contingent liabilities - - - -

1) High level management, data as per statements.
2) Non-consolidated companies in liquidation as well as associates and joint ventures measured with the equity method.

57.3 Presentation of transactions with entities related to the State Treasury

In spite of the provisions of the By-laws of PZU (in particular those concerning the limitations of the voting rights of the shareholders other than the State Treasury and the rules of appointing the Supervisory Board of PZU), for the purposes of presentation of related party transactions, it is assumed that the State Treasury has retained control over PZU, as understood by IAS 27, and thus PZU remains an entity controlled by the State Treasury. 

Non-life insurance contracts, life insurance contracts and investment contracts constituted the majority of transactions with subsidiaries, joint-ventures and associates of the State Treasury. The transactions are concluded and settled on the terms and conditions applicable to customers which are not related parties. Insurance receivables from and insurance liabilities to related parties are short-term. 

PZU Group enjoys the exemption from the obligation to disclose related-party transactions due to being under control, joint control or significant influence of the same government, as referred to in Par. 25 of IAS 24. However, as such information is useful, PZU Group decided to disclose the value of premium written as well as the volumes of investment contracts resulting from transactions with subsidiaries, joint-ventures and associates of the State Treasury understood only as commercial companies and State Treasury controlled state entities, whose lists are published on the website of the Ministry of Treasury. 

The table below presents the written premium and volumes from investment contracts resulting from transactions with subsidiaries, joint-ventures and associates with the State Treasury.

Entities controlled by, joint-ventures of and entities associated with the State Treasury1 January – 31 December 20141 January – 31 December 2013
Gross written premium - non-life insurance 69,347 102,371
Gross written premium - life insurance 30,749 27,514
Total 100,096 129,885

57.4 Written premium and investment contracts in bancassurance transactions with banks controlled by the State Treasury

The tables below comprise written premiums and investment contracts in bancassurance transactions with banks controlled and associated with the State Treasury.

Written premium and volumes of investment contracts1 January – 31 December 20141 January – 31 December 2013
Bank Powszechna Kasa Oszczędności BP SA 44,815 44,994
PZU gross written premium 14,066 17,480
PZU Życie gross written premium 30,749 27,514
Bank Ochrony Środowiska SA 1 -
PZU gross written premium 1 -
Bank Gospodarstwa Krajowego SA 126 309
PZU gross written premium 126 309

 

57.5 Transactions with largest counterparties whose shares are held by the State Treasury

Gross written premiums1) from 10 largest counterparties of PZU Group who are subsidiaries of the State Treasury

Gross written premiums1) from 10 largest counterparties of PZU Group who are subsidiaries of the State Treasury
Counterparty1 January - 31 December 2014Counterparty1 January - 31 December 2013
Counterparty 1 44,815 Counterparty 1 44,994
Counterparty 2 27,282 Counterparty 6 30,378
Counterparty 3 5,017 Counterparty 8 16,396
Counterparty 4 3,847 Counterparty 11 5,619
Counterparty 5 3,189 Counterparty 4 5,366
Counterparty 6 2,530 Counterparty 5 5,263
Counterparty 7 1,925 Counterparty 3 4,289
Counterparty 8 1,521 Counterparty 2 4,160
Counterparty 9 1,154 Counterparty 7 1,763
Counterparty 10 1,106 Counterparty 9 1,476

1) The item includes gross written premium in non-life insurance, life insurance and volumes of investment contracts.