47. Disputes
47. Disputes
The PZU Group entities participate in a number of litigations, arbitration disputes and administrative proceedings. Typical litigations involving the PZU Group companies include disputes pertaining to concluded insurance agreements, disputes concerning labor relationships and disputes relating to contractual obligations. Typical administrative proceedings involving the PZU Group companies include proceedings related to the possession of real properties. Such proceedings and litigation are of a typical and repetitive nature and usually no particular case is of material importance to the PZU Group.
The majority of disputes involving the PZU Group companies concerned four companies: PZU, PZU Życie, Pekao and Alior Bank. Additionally, PZU and PZU Życie are parties to proceedings conducted before the President of the Office of Competition and Consumer Protection.
PZU and PZU Życie take disputed claims into account in the process of establishing their technical provisions for known losses, considering the probability of an unfavorable outcome of the dispute and estimating the probable awarded amount. In the case of disputed claims pertaining to restatement of annuities in PZU Życie, the claims are carried in other technical provisions at the annual value of annuities above the corresponding amount of provision set within the framework of mathematical life provisions.
In 2017 and by the date of preparation of the consolidated financial statements, PZU Group companies did not take part in any proceedings before court, body competent to hear arbitration proceedings or public authority body concerning liabilities or receivables of PZU or its direct and indirect subsidiaries with the value of at least 10% of the equity of PZU.
As at 31 December 2017, the aggregate value of the subject matter of litigation in all 214,133 cases (134,769 cases as at 31 December 2016) pending before courts, arbitration bodies or public administration authorities in which PZU Group companies take part, was PLN 6,722 million (PLN 4,357 million as at 31 December 2016). Out of this amount, PLN 3,979 million pertained to liabilities (PLN 3,374 million as at 31 December 2016) and PLN 2,743 million pertained to claims of PZU Group companies (PLN 983 million as at 31 December 2016). That represented, respectively, 29.30% and 20.19% of PZU’s equity according to PAS (as at 31 December 2016 it was 27.85% and 8.11%, respectively).
Estimations of the amounts of the provisions for individual cases take into account all information available on the date of signing the consolidated financial statements; however this figure may change in the future.
Section includes:
- 47.1 Resolutions of the Ordinary Shareholder Meeting of PZU to distribute the profit earned in the financial year 2006
- 47.2 Proceedings conducted by the President of the Office of Competition and Consumer Protection against PZU
- 47.3 Proceedings conducted by the President of the Office of Competition and Consumer Protection against PZU Życie
- 47.4 Notification of PZU’s claim to the bankruptcy estate of companies of the PBG Group
- 47.5 Proceedings against Pekao for annulment and possibly repealing resolutions adopted by Pekao’s Shareholder Meeting
- 47.6 Lawsuit against Pekao and Centralny Dom Maklerski Pekao SA
