Powszechny Zaklad Ubezpieczen : Consolidated statement of the PZU for the period of 9 months of 2020

Powszechny Zakład Ubezpieczeń Spółka Akcyjna

Group

Condensed interim

consolidated financial statements for the 9 months ended

30 September 2020

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group
Condensed interim consolidated financial statements for the 9 months ended 30 September 2020
Table of contents
Financial highlights .............................................................................................................................	4
1.	Selected consolidated financial data of the PZU Group............................................................................................	4
2.	Selected standalone financial data of PZU (PAS) ......................................................................................................	4
3.	Selected standalone financial data of Powszechny Zakład Ubezpieczeń na Życie Spółka Akcyjna (PAS) ..............	5
4.	Summary of consolidated quarterly results ..............................................................................................................	5
Interim consolidated profit and loss account....................................................................................	7
Interim consolidated statement of comprehensive income.............................................................	9
Interim consolidated statement of financial position.....................................................................	10
Interim consolidated statement of changes in equity ....................................................................	11
Interim consolidated cash flow statement ......................................................................................	14
Supplementary notes to the condensed interim consolidated financial statements ...................	16
1.	Introduction ..............................................................................................................................................................	16
2.	Information on PZU and the PZU Group ..................................................................................................................	19
3.	Shareholder structure...............................................................................................................................................	32
4.	Composition of the Management Board, Supervisory Board and PZU Group Directors........................................	33
5.	Key accounting policies, key estimates and judgments..........................................................................................	35
6.	Information about major events that materially influence the structure of financial statement items ...............	46
7.	Corrections of errors from previous years ...............................................................................................................	46
8.	Material events after the end of the reporting period .............................................................................................	46
9.	Supplementary notes to the condensed interim consolidated financial statements............................................	47
10.	Assets securing receivables, liabilities and contingent liabilities ...........................................................................	85
11.	Contingent assets and liabilities ..............................................................................................................................	86
12.	Commentary to the condensed interim consolidated financial statements..........................................................	87
13.	Equity management .................................................................................................................................................	90
14.	Segment reporting....................................................................................................................................................	91
15.	Commentary to segment reporting and investing activity ...................................................................................	101
16.	Impact of non-recurring events on operating results............................................................................................	110
17.	Information on the changes in the economic situation and business conditions exerting a material effect on the
	fair value of financial assets and liabilities. ...........................................................................................................	111
18.	Management Board's position on previously published result forecasts.............................................................	116
19.	Issues, redemptions and repayments of debt securities and equity securities....................................................	116
20.	Default or breach of material provisions of loan agreements...............................................................................	116
21.	Dividends.................................................................................................................................................................	116
22.	Disputes...................................................................................................................................................................	116
23.	Evaluation of the PZU Group companies' standing by rating agencies ................................................................	120
24.	Related party transactions .....................................................................................................................................	121
25.	Other information ...................................................................................................................................................	122

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Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group
Condensed interim consolidated financial statements for the 9 months ended 30 September 2020
PZU's quarterly standalone financial information (in compliance with PAS) .............................	125
1.	Interim balance sheet .............................................................................................................................................	125
2.	Interim statement of off-balance sheet line items ................................................................................................	127
3.	Interim revenue account of non-life insurance......................................................................................................	128
4.	Interim general profit and loss account .................................................................................................................	129
5.	Interim statement of changes in equity .................................................................................................................	130
6.	Interim cash flow statement...................................................................................................................................	132
7.	Introduction ............................................................................................................................................................	134
8.	Key accounting principles (accounting policy)......................................................................................................	134
9.	Changes in accounting policies ..............................................................................................................................	134
10.	Impairment losses for investments in related parties ...........................................................................................	134

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Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group

Condensed interim consolidated financial statements for the 9 months ended 30 September 2020 (in millions of PLN)

Financial highlights

1. Selected consolidated financial data of the PZU Group

			m PLN		m PLN		m EUR		m EUR
			1 January -		1 January -		1 January -		1 January -
Data from the consolidated profit and loss account	30	30	30	30
			September		September		September		September
		2020	2019	2020	2019
	Gross written premium	17,291		17,501		3,893		4,062
Net earned premium	17,317	17,227	3,898	3,998
	Revenue from commissions and fees	3,037		3,051		684		708
Net investment result	6,272	8,368	1,412	1,942
	Net insurance claims and benefits paid	(11,352)		(11,920)		(2,556)		(2,767)
Profit before tax	2,676	5,056	602	1,173
	Profit attributable to equity holders of the Parent Company	1,191		2,360		268		548
Profit attributable to holders of non-controlling interests	367	1,324	83	307
	Basic and diluted weighted average number of common shares	863,326,940		863,280,102		863,326,940		863,280,102
Basic and diluted earnings per common share (in PLN/EUR)	1.38	2.73	0.31	0.63
			m PLN		m PLN		m EUR		m EUR
Data from the consolidated statement of financial position	30		31		30		31
	September		December		September		December
		2020		2019		2020		2019
	Assets		373,481		343,385		82,504		80,635
Share capital	86		86		19		20
	Equity attributable to equity holders of the parent		17,889		16,169		3,952		3,797
Non-controlling interest	24,270		23,119		5,361		5,429
	Total equity		42,159		39,288		9,313		9,226
Basic and diluted number of common shares	863,332,743		863,323,224		863,332,743		863,323,224
	Book value per common share (in PLN/EUR)		20.72		18.73		4.58		4.40
			m PLN		m PLN		m EUR		m EUR
			1 January -		1 January -		1 January -		1 January -
Data from the consolidated cash flow statement	30	30	30	30
			September		September		September		September
		2020	2019	2020	2019
	Net cash flows from operating activities		28,821		(1,051)		6,488		(244)
Net cash flows from investing activities	(26,126)	(357)	(5,881)	(83)
	Net cash flows from financing activities		(1,847)		(6,947)		(416)		(1,612)
Total net cash flows	848	(8,355)	191	(1,939)

2. Selected standalone financial data of PZU (PAS)

			m PLN		m PLN		m EUR		m EUR
Data from the balance sheet	30	31	30	31
	September		December		September		December
		2020	2019	2020	2019
	Assets		43,234		41,596		9,551		9,768
Share capital	86	86	19	20
	Total equity		16,809		14,957		3,713		3,512
Basic and diluted number of common shares	863,523,000	863,523,000	863,523,000	863,523,000
	Book value per common share (in PLN/EUR)		19.47		17.32		4.30		4.07

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