Description of Group Structure, Position of Česká pojišťovna
As at 31 December 2015, Česká pojišťovna was part of a group; the company at the pinnacle of that group’s holding structure is Generali CEE Holding B.V. (the “Holding”). The ultimate owner of Česká pojišťovna is Assicurazioni Generali S.p.A., which held a 100% stake in the voting rights attached to the shares of Generali CEE Holding B.V. as at 31 December 2015. The Company’s sole shareholder is CZI Holdings N.V.
CZI Holdings N.V.
The company compiles a report on related-party transactions in accordance with Section 82 of Act No 90/2012.
Generali CEE Holding B.V.
Generali CEE Holding B.V. directs the business of its subsidiaries through an organisational unit based in Prague, Czech Republic. The Holding has operations not only in the Czech Republic, but also in Slovakia, Poland, Hungary, Romania, Bulgaria, Serbia, Slovenia, Montenegro and Croatia.
Česká pojišťovna Group Structure as at 31 December 2015
Description of Selected Companies within the Česká pojišťovna Group
Below we provide information on companies that form part of the Česká pojišťovna Group and are of fundamental importance either for the Company’s business or its capital position. Information on certain other companies that belong to the same group as Česká pojišťovna may be found in the Notes to the Consolidated Financial Statements for the Year Ended 31 December 2015 (in the section describing the subsidiaries and associates of Česká pojišťovna).
CP Strategic Investments N.V.
The end of 2012 was a time of restructuring, in which Generali PPF Holding’s operations in supplementary pension insurance and savings were concentrated within the Česká pojišťovna Group. Through CP Strategic Investments, Česká pojišťovna became the owner not only of Penzijní fond České pojišťovny, a.s., but also Generali penzijní fond a.s. In spring 2013, the companies’ governing bodies signed a project on a domestic merger by acquisition, effective as at 1 January 2013, with Generali penzijní společnost a.s. wound up as at the same date. In April 2014, Česká pojišťovna a.s. acquired the participating interest of a minor member to become the sole member of CP Strategic Investments N.V.
Penzijní společnost České pojišťovny, a.s.
Penzijní společnost České pojišťovny has long enjoyed leader status in the private pension savings sector in the Czech Republic. Its profit last year stood at CZK 356 million. At the end of 2015, it was managing savings of almost CZK 90 billion. The company has nearly 1.3 million customers, and employers contribute to the pension plans of a quarter of a million of them.
Penzijní společnost České pojišťovny, through its extensive distribution network, reaches out to a wide range of customer segments. In addition to consultants and branches of the parent company, Česká pojišťovna, the company also works extensively with independent external networks of financial intermediaries, Czech Post (Česká pošta) and partner banks.
The company delivers a top-notch service. Secure access to www.klientskyportal.cz enables customers to control their account online. The SMS Echo service keeps them informed of milestones in their savings programmes free of charge, while the Tax Service makes it easier for them to capitalise on maximum tax concessions.
In 2016, Penzijní společnost České pojišťovny will concentrate on getting mileage out of the business opportunities presented to it by an amendment to the Supplementary Pension Savings Act, in particular the chance to offer pension plans to those who are not yet 18 years old.
Another major project spanning the whole of 2016 will be the closing of the “second pillar”. The company’s customers who have been saving under second-pillar schemes will be incentivised to switch their deposits to the third pillar at Penzijní společnost České pojišťovny, mutual funds offered by Generali, or certain products in the Česká pojišťovna portfolio.
Generali Societate de Administrare a Fondurilor de Pensii Private S.A.
From the outset, this Generali pension management company has been an active player in the compulsory supplementary pension insurance market that emerged following the reform of the Romanian pension system in 2007. It manages two types of funds, ARIPI and STABIL.
The ARIPI (“Wings”) fund (compulsory supplementary pension insurance) is intended for customers aged 18 to 45 who are just entering the supplementary pension insurance system. The STABIL fund (voluntary supplementary pension insurance), on the other hand, is open to customers of all ages.
The ARIPI pension fund is the fifth largest pension fund in Romania with over 637,027 customers and EUR 458.7 million in funds under management (as at 31 December 2015).
Generali Real Estate Fund CEE a.s.
Generali Real Estate Fund CEE a.s. is an internally managed investment fund of qualified investors. This fund’s assets are managed by the investment company Generali Investments CEE, investiční společnost, a.s.
Generali Real Estate Fund CEE a.s. focuses primarily on the property market, investing in the stock of real estate companies. Additionally, the investment fund may invest in money market instruments, demand deposits, time deposits, government bonds, and receivables. The investment fund’s objective is to generate stable, long-term positive returns on the assets entrusted to it while achieving better liquidity, lower risk, and greater diversification than is possible when investing individually, and at the same time to maintain returns on investors’ funds above the level of interest rates offered by banks on medium-term time deposits.
The investment fund’s total assets at the end of 2015 were CZK 4.35 billion, while its net asset value was CZK 4.30 billion.
Česká pojišťovna ZDRAVÍ a.s.
Česká pojišťovna ZDRAVÍ a.s. (“ČP ZDRAVÍ”) is a subsidiary wholly owned by Česká pojišťovna a.s. Within the Group, ČP ZDRAVÍ maintains a strategic focus on a portfolio of insurance products associated with health, the provision of health care and solutions to customers’ hardship when they lose their source of income. For a number of years now, the product range has been closely interlinked with the products of the Generali Group’s other members in the Czech Republic. ČP ZDRAVÍ shares its sales network with its parent company, giving it access to the biggest network of points of sale and insurance intermediaries.
The increase in new business was a major success in 2015. ČP ZDRAVÍ’s gross premiums written built on the growth reported in the previous year to pass the half-billion-crown mark for the first time in the company’s history. The company’s sterling economic performance was reflected in its profitability indicator, with gross profit before tax standing at CZK 83 million.
ČP ZDRAVÍ’s strategic plan is to press on with the positive trend in the basic metrics of new business and economic performance amid cuts in operating costs. In 2016, particular attention will continue to be paid to the health sector and the quest to identify opportunities for the creation of new insurance products designed to guarantee a superior standard of health care and reduce the impacts of illness and personal accidents.
We will keep working on our partnership with those who pay for and provide health services in order to expand the network of preferred healthcare facilities necessary to form a comprehensive range of insurance schemes for the provision of health care and professional medical assistance.
Improvements in the attractiveness and quality of the range of supplemental products offered as riders to Česká pojišťovna’s cornerstone life and non-life insurance programmes will remain a priority. Another area of ČP ZDRAVÍ’s added value is its capacity to respond readily to evolving market conditions and to launch new insurance products and schemes in a remarkably short time.
Generali Services CEE a.s.
Generali Services CEE has acted as a service company for Česká pojišťovna, Generali Pojišťovna and other Generali CEE Holding members since mid-2010, when the first agendas were transferred to it from both insurance companies. Subsequently, the shared-service strategy was gradually expanded up to 2014 to embrace additional activities. In the first half of 2015, a change in the strategy of operating support for the two insurance companies prompted the decision to stop outsourcing the loss adjustment and fraud detection and investigation agendas.
Generali Services CEE is registered in the Register of Insurance Intermediaries, maintained by the Czech National Bank, as an insurance agent as defined by Section 7 of Act No 38/2004 on insurance intermediaries and independent loss adjusters, as well as in the CNB’s Register of Independent Loss Adjusters as an independent loss adjuster as defined by Section 10 of the same Act. Since mid-2015, the company has contractually provided Česká pojišťovna a.s. with services covering the repair of road-vehicle windscreens, the digitisation, indexing and archiving of documents, a mail registry and dispatch service, active telephone sales, and a call service to make appointments between customers and sales staff. In 2015, the company continued to work closely with Penzijní společnost České pojišťovny in the telephone intermediation of changes to supplementary pension contracts.
GCP Foundation
The foundation’s mission is to support the achievement of goals and aims, by individuals and legal entities, that are beneficial to the public or whose support is in the public interest, particularly in the arts, health care, sports, social affairs, and education. In 2015, the GCP Foundation sponsored several dozen cultural, sports, educational, preventive, safety and charity projects and activities.
In February 2015, the Česká pojišťovna Foundation and the Generali Insurance Company Foundation were merged by acquisition, with the GCP Foundation becoming the acquiring entity.