Report on Financial Performance
Assets
Česká pojišťovna has long been a highly capitalised and stable company, with assets totalling CZK 107 billion at 31 December 2015.
The shareholder’s equity is over CZK 25 billion and the share capital stands at CZK 4 billion.
The largest asset item by volume is investments, amounting to CZK 77.6 billion as at 31 December 2015 (down by CZK 8.3 billion from 2014). These capital resources shrank in response to a dip in provisions. Assets in equity interests climbed by CZK 1.0 billion year on year to CZK 8.9 billion. The main downturn in investments could be seen in financial assets at fair value through profit or loss (down by CZK 2.9 billion). Borrowings were also down on 2014 (by CZK 2.1 billion), chiefly on account of the lower volume of reverse repo transactions.
The Company’s cash and cash equivalents decreased by CZK 0.6 billion year on year, amounting to CZK 1.9 billion as at 31 December 2015.
Reinsurance assets remained more or less unchanged, slipping by CZK 0.2 billion to CZK 9.8 billion.
More details on the Company’s asset position are provided in the financial section of this Annual Report.
Treasury Stock
Česká pojišťovna did not hold any of its own shares during the 2015 accounting period.
Earnings
In 2015, Česká pojišťovna reported a post-tax profit of CZK 4.1 billion according to international accounting standards, a CZK 0.5 billion rise on 2014.
Česká pojišťovna’s total premiums written in 2015, reported according to Czech Insurance Association5 guidelines, were CZK 26.8 billion. Of this figure, non-life insurance accounted for CZK 18.1 billion and life insurance for CZK 8.8 billion.
Share Capital and Reserves
The Company’s share capital was unchanged at CZK 4 billion in 2015.
In 2015, shareholder equity grew by CZK 1.9 billion to CZK 25.4 billion.
Profit Distribution Proposal
Based on the approved financial statements and profit distribution principles applied, on 25 April 2016 the Board of Directors approved the proposal to pay a dividend of CZK 92,100 per ordinary share, i.e. a total of CZK 3.684 billion. The remainder of the profit from the 2014 accounting period is to be allocated to retained earnings.
Dividends in Previous Years
In April 2015, the sole shareholder, acting in the capacity of the General Meeting, decided on the pay-out of a gross dividend for 2014 totalling CZK 3.272 billion.
In April 2014, the sole shareholder, acting in the capacity of the General Meeting, decided on the pay-out of a gross dividend for 2013 totalling CZK 3.344 billion.
Insurance Provisions
Total insurance provisions (net of the reinsurer share) under the Insurance Act were down by CZK 9.88 billion year on year to CZK 68.29 billion as at 31 December 2015 (of which, in accordance with IFRS, a CZK 0.56 billion provision for liabilities to the Czech Insurers’ Bureau was included in other provisions and a CZK 0.04 billion equalisation provision was included in equity).
Life Insurance Provisions
These provisions account for roughly three quarters (68%) of the overall insurance provisions and consist primarily of a life insurance premium provision and a provision for unit-linked life policies (where the investment risk is borne by the policyholder). As at 31 December 2015, gross life insurance provisions totalled CZK 46.7 billion, a year-on-year fall by CZK 6.27 billion.
Provision for Non-life Insurance Claims
This provision encompasses claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). As at 31 December 2015, the provision for non-life insurance claims totalled CZK 16.19 billion, down by CZK 1.8 billion on the previous year.
Provision for Unearned Non-life Insurance Premiums
The total amount of provisions for unearned premiums fell by CZK 1.21 billion year on year to stand at CZK 4.54 billion as at 31 December 2015.
Receivables and Payables
Receivables remained more or less stable, amounting to CZK 6 billion as at 31 December 2015 (just as in 2014). There was a slight year-on-year change in payables, which stood at CZK 7.7 billion as at 31 December 2015.
5 – excluding non-life premiums assigned to Czech Insurance Association members
– with a single premium adjusted for a 10-year basis
– these figures do not include cross-border services provided via branches or as freedom-of-services business