7.4 Segments characteristics

Description of all the reportable segments of PZU Group, including the presentation of the accounting policies used for presenting financial data:

  • Corporate insurance (non-life insurance) – reporting in accordance with Polish Accounting Standards – a wide range of non-life insurance products, third party and motor insurance products customized to meet clients' expectations and with individual risk assessment, offered to big enterprises;
  • Retail client insurance (non-life insurance) – reporting in accordance with Polish Accounting Standards – a wide range of non-life insurance products, accident insurance products, third party and motor insurance products offered to retail clients and entities in the SME sector;
  • Group and individually continued insurance (life insurance) – reporting in accordance with Polish Accounting Standards – group insurance offered by PZU Życie to groups of employees and other formal groups (e.g. trade unions), intended for individuals who are in a legal relation with the insurer (e.g. employer, trade union) and individually continued insurance where the insurer has obtained the right to continue insurance individually under group insurance. The offer of PZU Życie comprises a wide range of group insurance coverage, investment insurance (other than investment contracts) and health insurance;
  • Individual insurance (life insurance) – reporting in accordance with Polish Accounting Standards – insurance offered by PZU to individual clients whereby an insurance contract covers a given individual who is subject to separate risk assessment. The offer of PZU Życie comprises a wide range of group insurance coverage, investment insurance (other than investment contracts) and health insurance;
  • Investment – reporting in accordance with Polish Accounting Standards – comprises investment activity conducted with the PZU Group’s own funds defined as the surplus of investments over technical provisions in the insurance companies within PZU Group with their registered offices in Poland (PZU, Link4 and PZU Życie) increased by the surplus of investment income exceeding the risk-free rate matching the value of technical provisions of PZU and PZU Życie in insurance products, i.e. the surplus of income from investment activities of PZU and PZU Życie over the income to insurance segments according to transfer prices. Additionally, the “Investments” segment includes income earned on other excess cash in PZU Group;
  • Pension insurance – reporting in accordance with Polish Accounting Standards – comprising the company PTE PZU;
  • Ukraine (life and non-life insurance) – reporting in accordance with IFRS – including PZU Ukraine and PZU Ukraine Life;
  • Baltic states (life and non-life insurance only) – reporting in accordance with IFRS – including Lietuvos Draudimas AB, AAS Balta, PZU Lietuva, UAB PZU Gyvybes Draudimas and their branches in Latvia and Estonia;
  • Investment contracts - reporting in accordance with Polish Accounting Standards – comprising products of PZU Życie which do not result in a transfer of significant insurance risk in accordance with IFRS 4 and are not insurance contracts (i.e. some of the products with a guaranteed rate of return and some unit-linked products), described in Note 7.5.2;
  • Other – reporting in accordance with IFRS or PAS (presentation of a profit or loss of a segment under “Other” is not required under IFRS 8) – comprises other consolidated entities which do not belong to any of the aforesaid segments and whose revenue is earned mainly from the manufacture of fittings, heaters, casting and services.