F.33. Related parties
This chapter contains information about all important transactions with related parties excluding those which are described in other parts of the notes.
F.33.1. Identity of related parties
As at 31 December 2015, CZI Holdings N.V. is the sole shareholder of the Parent Company. The ultimate parent company is Assicurazioni Generali S.p.A.
The Group is related to its parent companies which is CZI Holdings N.V., Assicurazioni Generali S.p.A. and to companies controlled by them.
The key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly.
The key management personnel of the Group and its parent, their close family members and other parties which are controlled, jointly controlled or significantly influenced by such individuals and entities in which such individuals hold significant voting power are also considered related parties.
Key management personnel of the Group comprise the members of the Board of Directors and the Supervisory Board.
In considering each possible related party relationship, attention is directed to the substance of the relationship and not merely the legal form.
F.33.2. Transactions with key management personnel of the Group
| For the year ended 31 December 2015 | Board of Directors | Supervisory Board | ||
|---|---|---|---|---|
| (CZK million) | Related to the board membership | Related to employment contract | Related to the board membership | Related to employment contract |
| Short-term benefits provided by the Group | 51 | 21 | – | – |
| State-defined contribution pension plan | 1 | – | – | – |
| For the year ended 31 December 2014 | Board of Directors | Supervisory Board | ||
|---|---|---|---|---|
| (CZK million) | Related to the board membership | Related to employment contract | Related to the board membership | Related to employment contract |
| Short-term benefits provided by the Group | 12 | 61 | – | 1 |
| State-defined contribution pension plan | – | 1 | – | – |
Short-term employee benefits include wages, salaries and social security contributions, allowances provided for membership in the statutory bodies, bonuses and non-monetary benefits such as medical care and cars.
During reporting period 2015 termination benefits to the key management personnel of the Group in the amount CZK 13.9 million were paid. During reporting period 2014 termination benefits to the key management personnel of the Group in the amount CZK 16.7 million were paid.
As at 31 December 2015 and 31 December 2014, the members of the statutory bodies held no shares of the Parent Company. As at 31 December 2015 and 31 December 2014, the members of the statutory bodies held no shares of the Group.
F.33.3. Related party transactions
The Group had no material transactions or outstanding balances with the ultimate parent company Generali Assicurazzioni in either in 2015 or in 2014.
The dividend declared and paid to the sole shareholder is disclosed in the Note F.9.1.
- Group 1 – CZI Holdings, N.V., the Parent Company’s shareholder
- Group 2 – Entities in the Generali Group
- Group 3 – other related parties (primarily entities from PPF Group N.V., which indirectly owned 24% participation in the Group as at 31 December 2014)
Following tables don’t include currency gains and losses.
| 31.12.2015 (CZK million) | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Receivables from insurance and reinsurance business | i | – | 1,737 | – |
| Reinsurance assets | ii | – | 8,718 | – |
| Other financial assets | – | 30 | – | |
| Other assets | iii | – | 1,160 | – |
| Total assets | – | 11,645 | – | |
| Payables from insurance and reinsurance business | iv | – | 5,508 | – |
| Technical provisions | – | 257 | – | |
| Other financial liabilities | v | – | 1,052 | – |
| Other liabilities | – | 577 | – | |
| Total liabilities | – | 7,395 | – |
- The balances with companies in Group 2 comprise especially receivables from reinsurance from GP Reinsurance EAD, Bulgaria (GP RE) in the amount of CZK 1,493 million and from Generali Pojišťovna a.s. in the amount of CZK 167 million.
- The balances with companies in Group 2 comprise technical provisions ceded to GP RE in the amount of CZK 8,583 million.
- The balances with companies in Group 2 include receivable towards Generali Towarzystwo Ubezpieczen S.A. in the amount of CZK 506 million and receivable towards Generali Infrastructure Services s.c.a.r.l. in the amount of CZK 502 million.
- The balances with companies in the Group 2 comprise liabilities from reinsurance to GP RE in the amount of CZK 5,332 million and to Generali Pojišťovna a.s. in the amount of CZK 118 million.
- The balances with companies in the Group 2 comprise loan provided by Generali CEE Holding B.V. to City Empiria a.s. in the amount of CZK 892 million.
| 31.12.2014 (CZK million) | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Receivables from insurance and reinsurance business | i | – | 1,714 | – |
| Reinsurance assets | ii | – | 9,141 | – |
| Other financial assets | iii | – | – | 9,257 |
| Other assets | – | 338 | 10 | |
| Total assets | – | 11,193 | 9,267 | |
| Payables from insurance and reinsurance business | iv | – | 5,372 | – |
| Technical provisions | – | 224 | – | |
| Other financial liabilities | – | 160 | 105 | |
| Other liabilities | – | 260 | 13 | |
| Total liabilities | – | 6,016 | 118 |
- The balances with companies in Group 2 comprise especially receivables from reinsurance from GP Reinsurance EAD, Bulgaria (GP RE) in the amount of CZK 1,657 million.
- The balances with companies in Group 2 comprise technical provisions ceded to GP RE in the amount of CZK 9,076 million.
- The balances with companies in Group 3 include bonds issued by Home Credit Group companies in the amount of CZK 4,318 million, reverse repurchase agreements with PPF Banka a.s. in the amount CZK 4,500 million and bank deposits with PPF Banka a.s. in the amount of CZK 432 million.
- The balances with companies in the Group 2 comprise liabilities from reinsurance to GP RE in the amount of CZK 5,319 million.
| 2015 (CZK million) | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Income from insurance and reinsurance business | i | – | 8,365 | – |
| Income from financial activities | – | 13 | – | |
| Other income | ii | 954 | 172 | – |
| Total income | 954 | 8,550 | – | |
| Expenses from insurance and reinsurance business | iii | – | (10,897) | – |
| Expenses from financial activities | – | (222) | – | |
| Other expenses | – | (88) | – | |
| Total expenses | – | (11,206) | – |
- The balances in Group 2 include transactions from reinsurance with GP RE in the amount of CZK 7,867 million (commissions and claims paid by GP RE).
- Group 2 includes transactions with investments with CZI Holdings N.V. in the amount of CZK 954 million.
- The balances in Group 2 include ceded earned premium to GP RE in the amount of CZK 10,276 million.
| 2014 (CZK million) | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Income from insurance and reinsurance business | i | – | 6,724 | 112 |
| Income from financial activities | ii | – | 68 | 167 |
| Other income | – | 127 | 30 | |
| Total income | – | 6,919 | 310 | |
| Expenses from insurance and reinsurance business | iii | – | (10,046) | (2) |
| Expenses from financial activities | – | (161) | (310) | |
| Other expenses | – | (370) | (123) | |
| Total expenses | – | (10,577) | (436) |
- The balances in Group 2 include transactions from reinsurance with GP RE in the amount of CZK 6,529 million (commissions and claims paid by GP RE).
- Group 3 includes the income related to interest of the bonds issued by Home Credit Group companies in the amount of CZK 164 million.
- The balances in Group 2 include ceded earned premium to GP RE in the amount of CZK 9,751 million.