Operating segments are components of an entity for which separate financial information is available and is subject to regular assessment by CODM (in practice this is the PZU Management Board), related to allocating resources and assessing operating results.
The main dividing line between segments in the PZU Group is based on the criteria of the nature of business, product groups, client groups and the regulatory environment. The characteristics of individual segments is provided in the table below.
|Segment||Accounting standards||Segment description||Aggregation criteria|
|PAS||Broad scope of property insurance products, TPL and motor insurance customized to a customer’s needs entailing individual underwriting offered to large economic entities by PZU, Link4, TUW PZUW.||Aggregation by similarity of products offered, similar client groups to which they are offered, distribution channels and operation in the same regulatory environment.|
|PAS||Broad scope of property, accident, TPL and motor insurance products offered to individual clients and entities in the small and medium enterprise sector by PZU and Link4.||As above.|
|Group and individually continued insurance
|PAS||Group insurance addressed by PZU Życie to groups of employees and other formal groups (e.g. trade unions), under which persons under a legal relationship with the policyholder (e.g. employer, trade union) enroll in the insurance and individually continued insurance in which the policyholder acquired the right to individual continuation during the group phase. PZU Życie’s offer covers a wide range of protection, investment (not investment contracts) and health insurance.||No aggregation.|
|PAS||Insurance offered by PZU Życie to individual clients under which the insurance contract applies to a specific insured and this insured is subject to individual underwriting. PZU Życie’s offer covers a wide range of protection, investment (not investment contracts) and health insurance.||No aggregation.|
|Investments||PAS||The segment includes:
1. investments of the PZU Group’s own funds, understood as the surplus of investments over technical provisions in PZU, Link4 and PZU Życie plus the surplus of income earned over the risk-free rate on investments reflecting the value of technical provisions in insurance products, i.e. surplus of investment income allocated at transfer prices to insurance segments;
2. income from other free funds in the PZU Group (in particular consolidated mutual funds).
|The aggregation was effected because of the similar surplus-based nature of the revenues.|
|Banking activity||IFRS||Broad range of banking products offered both to corporate and retail clients by the Pekao Group and the Alior Bank Group.||The aggregation was carried out due to similarity of products and services offered by the companies and the identical regulatory environment of their operations.|
|Pension insurance||PAS||2nd pillar pension insurance||No aggregation.|
|Baltic States||IFRS||Non-life and life insurance products offered by LD and its branch in Estonia, AAS Balta and PZU LT GD.||The aggregation was carried out due to similarity of products and services offered by the companies and similarity of the regulatory environment of their operations.|
|Ukraine||IFRS||Non-life and life insurance products offered by PZU Ukraine and PZU Ukraine Life Insurance.||The aggregation was carried out due to similarity of the regulatory environment of their operations.|
|Investment contracts||PAS||PZU Życie products that do not transfer significant insurance risk within the meaning of IFRS 4 and that do not meet the definition of an insurance contract (i.e. some products with a guaranteed rate of return and some unit-linked products).||No aggregation.|
|Other||PAS / IFRS||Other products and services not classified into any of the above segments.|
The PZU Group applies additional segmentation by geographic location, according to which the following geographic areas were identified: