As at 31 December 2020, the PZU Group’s total assets were PLN 378,974 million, up PLN 35,589 million compared to the end of 2019.
52.1% of the Group’s assets (versus 56.7% at the end of 2019) were loans receivable from clients. Their balance reached PLN 197,288 million. It increased compared to the end of 2019 by PLN 2,420 million mainly due to the growing loans (particularly mortgage loans) for retail clients and despite the drop in sales to business clients.
39.5% of assets (versus 33.9% at the end of 2019) were investments: investment financial assets, investment properties and FDIs. They totaled PLN 149,754 million and were up PLN 33,250 million versus the end of last year. The increase in the value of investments was associated particularly with Bank Pekao and was related to the higher value of the portfolio of government debt securities. Net of the banking business, the growth in the value of the investment portfolio resulted from the inflow of premiums due to business growth and investment performance.
2.7% of assets (versus 3.3% at the end of 2019) were noncurrent assets – in the form of intangible assets, goodwill and property, plant and equipment. They amounted to PLN 10,170 million and were down PLN 1,250 million versus the end of 2019. The decrease resulted, among others, from the impairment loss on goodwill arising from the acquisition of Alior Bank (PLN 746 million) and Bank Pekao (PLN 555 million) and the impairment loss on assets arising from the acquisition of Alior Bank (PLN 161 million).
2.1% of assets (versus 2.3% at the end of 2019) were cash and cash equivalents. Their value was PLN 7,939 million and was PLN 151 million higher than one year before. This resulted from the increased balance of cash accumulated by Bank Pekao.
1.6% of assets (versus 1.7% at the end of 2019) represented the PZU Group’s receivables, including receivables under insurance contracts and the current income tax. They amounted to PLN 6,246 million and were higher by PLN 509 million compared to the year before. The increase arose primarily from the higher value of outstanding transactions involving financial instruments and margins. It was partly offset by the drop in receivables from policyholders.
0.2% of assets (with respect to the corresponding share at the end of 2019) were the assets and groups of assets held for sale. Their balance grew by PLN 10 million, to PLN 590 million, over a year. It concerned mainly the properties held by real estate sector mutual funds as held for sale, since the expected investment horizon has been reached.
PZU Group’s asset structure (in %)
At yearend 2020, the PZU Group’s consolidated equity soared to PLN 43,403 million, which was up PLN 4,115 million versus the year before.
The value of the non-controlling interests increased by PLN 1,507 million, to PLN 24,626 million. This was driven by the increase in the valuation of debt instruments and cash flow hedging instruments measured at fair value through other comprehensive income and the result generated by Alior Bank and Bank Pekao attributable to non-controlling owners of PLN 618 million.
Equity attributable to the parent company’s shareholders rose by PLN 2,608 million, to PLN 18,777 million. This was driven by the net profit attributable to the parent company’s shareholders generated in 2020 totaling PLN 1,912 million, the increase in the valuation of debt instruments and cash flow hedging instruments measured at fair value through other comprehensive income.
63.9% of the Group’s equity and liabilities at yearend 2020 were liabilities to clients under deposits. They amounted to PLN 241,975 million and were higher by PLN 23,387 million than one year before. This resulted from the increase in current deposits of Bank Pekao and Alior Bank by PLN 58,795 million, which was partly offset by a decrease in term deposits.
On 31 December 2021, the PZU Group had liabilities arising from own debt securities totaling PLN 7,532 million, including:
PZU Group's subordinated liabilities at the end of 2020 soared to PLN 6,679 million, which was similar to the value as at yearend 2019.
12.8% of equity and liabilities at yearend 2020 was the value of technical provisions. It amounted to PLN 48,471 million and was PLN 1,142 million higher than one year before. This was affected by:
The revision of provisions in life insurance included:
A provision for unexpired risk in the amount of PLN 51 million was established for the group insurance portfolio being annual renewable insurance products as of 31 December 2020. Its aim is to cover the deficit on future contributions with respect to the expected benefits and other outflows (costs and commissions) arising from increased mortality due to the COVID-19 pandemic.
3.3% of equity and liabilities at yearend 2020 was other liabilities in the amount of PLN 12,434 million. They were higher by PLN 1,835 million than one year before. The balance changed primarily due to liabilities on borrowed securities (short sale), repurchase transactions and trade.
Structure of PZU Group’s equity and liabilities (in %)
At the end of 2020, net cash flow was negative and amounted to up PLN 9,263 million versus the previous year. This growth was recorded in particular in flows from operating activities.
The value of contingent liabilities at the end of 2020 was PLN 65,785 million, that is PLN 6,348 million more year on year. This was caused predominantly by: