7.3 Measure of profit of a segment

The key measure of profit of a segment in PZU Group:

  • in insurance companies registered in Poland – a profit or loss on insurance constituting the profit or loss before tax and other operating income and expenses (including borrowing costs), however taking into account the income on investments (corresponding to the value of technical provisions) determined by the risk free rate. A profit or loss on insurance is a similar measure to the technical result on insurance defined in the Accounting Act of 29 September 1994 (Journal of Laws of 2013, item 330, as amended) and based on it regulations (National Accounting Standards, however it includes the net profit or loss on investments described in the previous sentence for non-life and life insurance;
  • in the case of insurance companies registered abroad – as described above, taking into account the total investment performance of the company, i.e. without adjusting the profit on investment described above, calculated in accordance with IFRS;
  • in non-insurance companies – an operating profit or loss in accordance with the accounting policies of the country of residence of the company or IFRS, constituting a profit or loss before tax and borrowing costs.