[GRI 102-7], [GRI 201-1]
1 ROE reported / profit and equity adjusted for the impairment loss on assets related to banks acquisitions in the amount of PLN 1,343 million / profit and equity adjusted for the impact of COVID-19, additionally, equity adjusted by PLN 2,636 million (80% of the consolidated profit for 2019, which was not paid in the form of dividends)
2 Data not audited or reviewed by a statutory auditor
3 KNF (the regulatory authority) expected that in 2020 insurance companies retain the entirety of profit earned in previous years. That stance the KNF expressed on 26 March 2020 in a letter sent to insurance and reinsurance companies indicated the situation involving the epidemic announced in Poland and its possible further adverse economic consequences as well as expected adverse impact on the insurance sector
|Direct economic value generated and shared
(data in PLN million)
|Operating expenses, excluding payroll, levy on financial institutions and community investments||-26,550||-26,069|
|Total payroll and employee benefit expenses||-5,252||-5,366|
|Levy on financial institutions||-1,134||1,203|
|Voluntary investments in the broader community||-96||-93|
|Dividends paid to all shareholders||-3,804||-|
|Retained economic value||1,381||2,530|
The retained value presented herein is the amount remaining after the distribution of the generated economic value among the company’s stakeholders. This amount is not the same as the net profit disclosed in the profit and loss account, because it also takes into account the dividends (as distributed economic value).
Own risk and solvency assessment process (ORSA)
This is an integral part of our financial planning. The own risk and solvency assessment process and the analyses it involves have been designed to ensure support for the whole financial planning process in terms of risk profile analysis and evaluation of compliance with the capital requirements within the planned time horizon and the financial plan assumptions. It also constitutes the summary and review of efficiency of the measures taken in the risk management process. The PZU Group has in place the “Policy of own risk and solvency assessment”
As a regulated company, PZU submits to the guidelines set forth in the Communique published by the Polish Financial Supervision Authority pertaining to the assumptions underlying the dividend policy of commercial banks, cooperative banks and affiliation banks, insurance and reinsurance undertakings, brokerage houses, mutual fund management companies and pension fund management companies. PZU is also subject to the “Guidelines of the Office of the Prime Minister regarding companies in which the State Treasury has an equity stake that draw up financial statements for 2020”.
According to the guidelines given by the Office of the Prime Minister, when setting the dividend PZU takes into account, in particular, its capital needs, the necessity to cover its uncovered loss, investment projects in progress and the company’s indebtedness and it gives consideration to the recommendations and individual instructions given by the Polish Financial Supervision Authority.