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Compliance statement
These consolidated financial statements of the Capital Group of Powszechny Zakład Ubezpieczeń Spółka Akcyjna (henceforth: “consolidated financial statements” and “PZU Group”, respectively) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) published and effective as at 31 December 2016 and endorsed by the European Commission.
Financial year
The consolidated financial statements have been prepared for the period of 12 months from 1 January 2016 to 31 December 2016.
Financial Statements approval
These consolidated financial statements were signed and authorized for issue by the Management Board of Powszechny Zakład Ubezpieczeń Spółka Akcyjna (“PZU”, the “parent entity”) on 14 March 2017 and shall be subject to approval of the Annual General Meeting of Powszechny Zakład Ubezpieczeń Spółka Akcyjna.
Functional and presentation currency
The Polish zloty (PLN) is the PZU functional and presentation currency. Unless expressly stated otherwise, all financial data presented in the consolidated financial statements are expressed in PLN million.
The functional currency of companies whose registered offices are located in Ukraine is the Ukrainian hryvnia, whereas in the case of the companies whose registered offices are located in Lithuania, Latvia and Sweden it is the euro.
Going concern assumption
The consolidated financial statements have been prepared based on the assumption that PZU Group’s entities will operate as a going concern during the period of at least 12 months following the balance sheet date. As at the date of signing these consolidated financial statements, no facts and circumstances indicate a risk to PZU Group entities’ ability to operate as a going concern during 12 months after closing the reporting year due to the intended or forced discontinuation or significant limitation of its operations.
Discontinued operations
In 2016, the entities in PZU Group did not discontinue any significant type of operations.
Glossary
Below are listed the most important terms and abbreviations used in the consolidated financial statements.
Company names
AAS Balta – Apdrošināšanas Akciju Sabiedrība Balta.
Alior Bank – Alior Bank SA.
Artimed – Artimed Niepubliczny Zakład Opieki Zdrowotnej Sp. z o.o.
Bank BPH – Bank BPH SA.
CM Medica – Centrum Medyczne Medica sp. z o.o.
EMC – EMC Instytut Medyczny SA.
Gamma – Centrum Medyczne Gamma sp. z o.o.
Alior Bank Capital Group – Alior Bank and its subsidiaries: Alior Services sp. z o.o., Centrum Obrotu Wierzytelnościami sp. z o.o., Alior Leasing sp. z o.o., Meritum Services ICB SA, Money Makers TFI SA, New Commerce Services sp. z o.o., and Absource sp. z o.o.
Armatura Capital Group – Armatura Kraków SA and its subsidiaries: Armatoora SA, Aquaform SA, Aquaform Badprodukte GmbH, Aquaform Ukraine TOW, Aquaform Romania SRL, and Morehome.pl sp. z o.o.
Link4 – Link4 Towarzystwo Ubezpieczeń SA.
Pekao – Bank Pekao SA.
PFR – Polski Fundusz Rozwoju SA.
Core Business of Bank BPH – an organized part of the business comprising all assets and liabilities of Bank BPH, except for the assets and liabilities which will remain with Bank BPH after the division, being the mortgage activity of Bank BPH.
Proelmed – Przedsiębiorstwo Usług Medycznych PROELMED sp. z o.o.
PTE PZU – Powszechne Towarzystwo Emerytalne PZU SA.
PZU, parent entity – Powszechny Zakład Ubezpieczeń Spółka Akcyjna.
PZU CO – PZU Centrum Operacji SA.
PZU Ukraine – PrJSC IC PZU Ukraine.
PZU Ukraine Life – PrJSC IC PZU Ukraine Life Insurance.
PZU Życie – Powszechny Zakład Ubezpieczeń na Życie Spółka Akcyjna.
SPMP – Specjalistyczna Przychodnia Medycyny Pracy sp. z o.o.
SU Krystynka – Sanatorium Uzdrowiskowe „Krystynka” sp. z o.o.
TFI PZU SA – Towarzystwo Funduszy Inwestycyjnych PZU SA.
TUW PZUW – Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych.
Other definitions
BGF – Bank Guarantee Fund.
CGU – cash generating unit.
DPF – discretionary participation features within the meaning of IFRS 4 – Insurance contracts.
Forbearance – tools used to restructure debt, most often taking a form of facilities granted to the debtor by the creditor.
CODM – chief operating decision maker within the meaning of IFRS 8 – Operating segments.
IBNR – Incurred But Not Reported.
Separate financial statements of PZU for the year 2016 – annual separate financial statements of Powszechny Zakład Ubezpieczeń Spółka Akcyjna for 2016, in accordance with PAS, signed by the Management Board of PZU on 14 March 2017.
PFSA – Polish Financial Supervision Authority.
Code of Commercial Companies – act dated 15 September 2000 of the Code of Commercial Companies (i.e. Journal of Laws of 2016, item 1578, as amended).
IFRS – International Financial Reporting Standards, published and effective as at 31 December 2016 and endorsed by the European Commission.
NBP – National Bank of Poland.
TCG – Tax Capital Group established pursuant to an agreement signed on 25 September 2014 and entered into by the following 13 PZU Group companies: PZU, PZU Życie, Link4, PZU CO, PZU Pomoc SA, Ogrodowa-Inwestycje sp. z o.o., Ipsilon sp. z o.o., PZU Asset Management SA, TFI PZU SA, PZU Zdrowie SA, PZU Finanse sp. z o.o., Omicron SA, and Omicron Bis SA. TCG was formed for the period of 3 years, from 1 January 2015 to 31 December 2017. PZU is the parent entity and the company representing TCG.
Banking law – Banking Law Act dated 29 August 1997 (i.e. Journal of Laws of 2015, item 128, as amended) and the regulations issued thereunder.
PAS – the Accounting Act of 29 September 1994 (i.e. Journal of Laws of 2016, item 1047) and the regulations issued thereunder.
PLET – Polish Life Expectancy Tables published annually by the Central Statistical Office in Poland.
RBNP – Reported But Not Paid.
Consolidated financial statements – consolidated financial statements of PZU Group in accordance with IFRS for the year ended on 31 December 2016.
Old portfolio – individual life insurance (marriage and life) and annuity assumed from Państwowy Zakład Ubezpieczeń.
UKNF – Polish Financial Supervision Authority.
Act on the Bank Guarantee Fund – act dated 10 June 2016 on the Bank Guarantee Fund, Deposit Guarantee Scheme and Resolution (i.e. Journal of Laws of 2016, item 996, as amended).
Act on Insurance Activity – act dated 11 September 2015 on insurance and reinsurance activity (Journal of Laws of 2015, item 1844).
Pension Funds Act – Pension Funds Act of 28 August 1997 (i.e. Journal of Laws of 2013, item 989, as amended).
Act of Offering - Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading, and Public companies dated 29 July 2005 (i.e. Journal of Laws of 2016, item 1639).
Act on Cooperative Savings and Credit Unions – act dated 5 November 2009 on cooperative savings and credit unions (i.e. Journal of Laws of 2013, item 1450).
ZUS – Social Insurance Institution.
