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Compliance statement

These consolidated financial statements of the Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group (“consolidated financial statements” and “PZU Group”, respectively) have been prepared in line with the International Financial Reporting Standards as endorsed by the European Commission (“IFRS”), published and in force as at 31 December 2017.

Period covered by the statements

These consolidated financial statements cover the period of 12 months from 1 January to 31 December 2017.

Approval of the statements

These consolidated financial statements were signed and authorized for publication by the Management Board of Powszechny Zakład Ubezpieczeń Spółka Akcyjna (“PZU”, “parent company”) on 14 March 2018 and will be subject to approval by the shareholder meeting of Powszechny Zakład Ubezpieczeń Spółka Akcyjna.

Functional and presentation currency

PZU’s functional and presentation currency is the Polish zloty. Unless noted otherwise, all amounts presented in these consolidated financial statements are stated in millions of Polish zloty.

The functional currency of the companies domiciled in Ukraine is the Ukrainian hryvnia, the euro is the functional currency of the companies domiciled in Lithuania, Latvia and Sweden and pound sterling – of the company domiciled in the United Kingdom.

Going concern assumption

These consolidated financial  statements have been  drawn  up under the assumption  that PZU Group entities remain    a going concern in the foreseeable future, i.e. in the period of at least 12 months after the end of the reporting period. As at the date of signing these consolidated financial statements, there are no facts or circumstances that would indicate a threat to the ability of PZU Group entities to continue their activity in the period of 12 months after the end of the reporting period as a result of an intentional or an induced discontinuation or a material curtailment of their hitherto activity.

Discontinued operations

In 2017, the PZU Group companies did not discontinue any material type of activity.


The most important terms, abbreviations and acronyms used in the consolidated financial statements are explained below.

Company names
AAS Balta – Apdrošināšanas Akciju Sabiedrība Balta. Alior Bank – Alior Bank SA.

Bank BPH – Bank BPH SA.

EMC – EMC Instytut Medyczny SA.

Alior Bank Group – Alior Bank with its subsidiaries: Alior Services sp. z o.o., Centrum Obrotu Wierzytelnościami sp. z o.o. in liquidation, Alior Leasing sp. z o.o., Meritum Services ICB SA, Money Makers TFI SA, New Commerce Services sp. z o.o., Absource sp. z o.o., Serwis Ubezpieczeniowy sp. z o.o.

Armatura Group – Armatura Kraków SA with its subsidiaries: Aquaform SA, Aquaform Badprodukte GmbH, Aquaform Ukraine ТОW, Aquaform Romania SRL, sp. z o.o.

Pekao Group – Pekao with its subsidiaries: Pekao Bank Hipoteczny SA, Centralny Dom Maklerski Pekao SA, Pekao Leasing sp. z o.o., Pekao Investment Banking SA, Pekao Faktoring sp. z o.o., Pekao PTE, Pekao TFI, Centrum Kart SA, Pekao Financial Services sp. z o.o., Centrum Bankowości Bezpośredniej sp. z o.o., Pekao Property SA, FPB – Media sp. z o.o., Pekao Fundusz Kapitałowy sp. z o.o. in liquidation, PIM, Xelion.

Link4 – Link4 Towarzystwo Ubezpieczeń SA.

NZOZ Trzebinia – Niepubliczny Zakład Opieki Zdrowotnej Trzebinia sp. z o.o. Pekao – Bank Pekao SA.

PFR – Polski Fundusz Rozwoju SA.

Pekao TFI – Pekao Towarzystwo Funduszy Inwestycyjnych SA (formerly Pioneer Pekao Towarzystwo Funduszy Inwestycyjnych SA).

Pekao PTE – Pekao Powszechne Towarzystwo Emerytalne SA (formerly Pekao Pioneer Powszechne Towarzystwo Emerytalne SA).

Bank BPH’s Core Business – organized part of the business including all of Bank BPH’s assets and equity and liabilities excluding the assets and equity and liabilities that remained in Bank BPH after the demerger and which constitute Bank BPH’s mortgage business.

PIM – Pekao Investment Management SA (formerly Pioneer Pekao Investment Management SA). PTE PZU – Powszechne Towarzystwo Emerytalne PZU SA.

PZU, parent company, parent – 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. TFI PZU SA – Towarzystwo Funduszy Inwestycyjnych PZU SA.

TUW PZUW – Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych. Xelion – Dom Inwestycyjny Xelion sp. z o.o.

Other definitions
BFG – Bank Guarantee Fund CGU – cash generating unit.

Forbearance – tools used to restructure debt, most frequently taking the form of arrangements provided to the debtor by the creditor

Pekao Pension Funds – Otwarty Fundusz Emerytalny Pekao and Pekao Dobrowolny Fundusz Emerytalny. CODM – chief operating decision maker within the meaning of IFRS 8 Operating Segments.

IBNR – Incurred But Not Reported or 2nd provision – provision for losses and accidents incurred but not reported.

PZU standalone financial statements for 2017 – annual standalone financial statements of Powszechny Zakład Ubezpieczeń Spółka Akcyjna for 2017 prepared in accordance with PAS, signed by the PZU Management Board on 14 March 2018.

KNF – Polish Financial Supervision Authority.

Commercial Company Code – Act of 15 September 2000 entitled Commercial Company Code (i.e. Journal of Laws of 2017, Item 1577).

IFRS – International Financial Reporting Standards, as endorsed by the European Commission, published and in force as at 31 December 2016;

NBP – National Bank of Poland;

PGK – Tax Group established pursuant to the agreement signed on 25 September 2014 by 13 PZU Group companies: PZU, PZU Życie, Link4, PZU CO, PZU Pomoc SA, Ogrodowa-Inwestycje sp. z o.o., Ipsilon sp. z o.o., Ardea Alba SA in liquidation (formerly PZU Asset Management SA), TFI PZU SA, PZU Zdrowie SA, PZU Finanse sp. z o.o., PZU LAB SA
(formerly Omicron SA), Omicron Bis SA. The Tax Group was established for a period of 3 years – from 1 January 2015 to 31 December 2017. PZU is the parent company representing the Tax Group.

Banking Law – Banking Law Act of 29 August 1997 (i.e. Journal of Laws of 2017, Item 1876, as amended) and regulations issued on its basis.

PAS – Accounting Act of 29 September 1994 (consolidated text: Journal of Laws of 2018 Item 395) and regulations issued thereunder.

PLET – Polish Life Expectancy Tables published annually by the Central Statistical Office of Poland.

RBNP – Reported But Not Paid, or 1st provision – provision for losses reported but not handled and handled but not paid.

IASB – International Accounting Standards Board.

Capital Requirements Regulation, CRR – Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012.

Consolidated financial statements – consolidated financial statements of the PZU Group prepared in accordance with IFRS for the year ended 31 December 2017.

Legacy portfolio – portfolio of individual (endowment and life) insurance products and annuities taken over from Państwowy Zakład Ubezpieczeń.

KNF Office – Office of the Polish Financial Supervision Authority.

Insurance Activity Act – Act of 11 September 2015 on Insurance and Reinsurance Activity (i.e. Journal of Laws of 2017 Item 1170, as amended).

Pension Funds Act – Act of 28 August 1997 on Organization and Operation of Pension Funds (i.e. Journal of Laws of 2017, Item 870, as amended).

Act on Offerings – Act of 29 July 2005 on Public Offering and the Conditions for Introducing Financial Instruments on an Organized Trading System and on Public Companies (i.e. Journal of Laws of 2016, Item 1639 as amended).

ZUS – Social Insurance Institution

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