30.1 Accounting policy
Deferred acquisition costs are tested for impairment since that they are included in the calculation of adequacy of technical provisions.
Acquisition expenses in non-life insurance are deferred in line with the principles applicable to the determination of the provision for unearned premiums by amortizing them through the profit and loss account during the indemnity period (recognized under “Acquisition expenses”).
Deferrals apply to acquisition commissions and a portion of indirect acquisition expenses related to the signing and renewals of insurance policies, in particular costs related directly to sales processes, which cannot be classified as direct acquisition expenses, in particular costs of activities related to: agreement origination processes and underwriting processes in sales units (separated by using working time questionnaires), automatic and manual entry of policies into production systems (registration of sales) and contact center operations related to the sales of policies.
In life insurance, for traditional profit-sharing products (life and endowment insurance or birth assurance), acquisition expenses are amortized over time using the Zillmer method.
30.2 Quantitative data
|Deferred acquisition cost||31 December 2020||31 December 2019|
|Total deferred acquisition cost||1,550||1,574|
|Movement in deferred acquisition expenses||1 January – 31 December 2020||1 January – 31 December 2019|
|Net value at the beginning of the period||1,574||1,546|
|Acquisition expenses pertaining to future periods||1,745||1,775|
|Amortization for the period recognized through profit or loss||(1,769)||(1,747)|
|Foreign exchange differences||-||-|
|Net value at the end of the period||1,550||1,574|
Learn more about
PZU Group Strategy 2021-2024 - #PZU Potential and growthExplore
Go to the
Extensive download center containing information and materials about PZUExplore
Magdalena Komaracka, IR Director, tel. +48 (22) 582 22 93
Piotr Wiśniewski, IR Manager, tel. +48 (22) 582 26 23
Aleksandra Jakima-Moskwa, tel. +48 (22) 582 26 17
Aleksandra Dachowska, tel. +48 (22) 582 43 92
Piotr Wąsiewicz, tel. +48 (22) 582 41 95