F.8. Non-current assets held-for-sale and discontinued operations
| (CZK million) | 31.12.2015 | 31.12.2014 |
|---|---|---|
| Non-current assets held-for-sale | – | 6 |
A property owned by the Group was presented as at 31 December 2014 as non-current assets held for sale. Due to the failed negotiations with a buyer which resulted into changes in envisaged sale plan, the management have decided to keep the property as an investment property.
With the main goal to simplify the management structure of Generali CEE operations in the Central Europe and due to new regulatory requirements arising from the introduction of Solvency II rules, the Group management approved the decision of GCEE bodies to transfer the Polish operations through the sale of the part of the company to Generali Towarzystwo Ubezpieceń S.A. (Generali Poland), a subsidiary of Generali CEE Holding B.V. The sale was completed as at 31 December 2015 and the agreed sales price amounted to CZK 79.7 million. Again on sale in the amount of CZK 56 million has been recognised in the income statement.
As a result of the decision, the Polish operations were classified discontinued operations as at 31 December 2015.
The following table provides the amount of cash and cash equivalents and the amount of the assets and liabilities in the respect of losing control summarised by each major category.
Statement of Financial Position
| (CZK million) | |
|---|---|
| Tangible and Intangible assets | 16 |
| Investments | 4,024 |
| Reinsurance assets | 1,622 |
| Receivables | 214 |
| Other assets | 34 |
| Cash and cash equivalents | 9 |
| Total assets | 5,919 |
| Insurance liabilities | 5,714 |
| Other provisions | 32 |
| Financial liabilities | 1 |
| Payables | 130 |
| Other liabilities | 45 |
| Total liabilities | 5,922 |
The following table shows the contribution of discontinued operations to the income statement for the period to 31 December. Net result of discontinued operations is presented on the line “Loss from discontinued operations after tax”.
Income Statement
| (CZK million) | 2015 | 2014 |
|---|---|---|
| Net earned premiums revenue | 1,754 | 1,479 |
| Net losses from financial instruments at fair value through profit or loss | (17) | (19) |
| Interest income | 77 | 38 |
| Realised gains from other financial instruments | 18 | 1 |
| Other income | 84 | 71 |
| Total income | 1,916 | 1,570 |
| Net insurance benefits and claims | (2,226) | (1,221) |
| Realised losses and impairment losses for financial instruments | (50) | (41) |
| Expense – other | – | (121) |
| Acquisition costs | (371) | (241) |
| Administration costs | (346) | (349) |
| Other expenses | (166) | (8) |
| Total expenses | (3,159) | (1,981) |
| Loss before tax | (1,243) | (411) |
| Gain on disposal of discontinued operations | 56 | – |
| Loss from discontinued operations after tax | (1,187) | (411) |
The Income statement includes the transactions with GP Reinsurance EAD, Bulgaria – Income from ceded reinsurance commission and claims paid in amount of CZK 1,995 million (2014: CZK 1,000 million) and Expenses from ceded earned premium in amount of CZK 1,323 million (2014: CZK 1,061 million).
Effect of discontinued operations to other comprehensive income for the period to 31 December is the following:
Other Comprehensive Income
| (CZK million) | 2015 | 2014 |
|---|---|---|
| Net profit for the year | (1,187) | (411) |
| Exchange rate differences in equity | 22 | 1 |
| Available-for-sale financial assets revaluation in equity | (26) | 30 |
| Available-for-sale financial assets revaluation realised in income statement | 3 | (1) |
| Other comprehensive income before tax effects | (1) | 30 |
| Tax on items of Other comprehensive income | – | (1) |
| Other comprehensive income/loss, net of tax | (1) | 29 |
| Total comprehensive income | (1,188) | (382) |
Cash flows from / (used in) discontinued operations for the period ended 31 December were the following:
Cash flows from discontinued operations
| (CZK million) | 2015 | 2014 |
|---|---|---|
| Net cash flows from / (used in) operating activities | (1,482) | 156 |
| Net cash flows from / (used in) investing activities | 1,265 | (575) |
| Net cash flows used in financing activities | (2) | (3) |
| Net cash decrease from discontinued operations | (219) | (422) |