2016 AnnuAl RepoRt - kuke.com.pl · In 2016, KUKE S.A. signed 1,478 new insurance contracts and in-...

2016 AnnuAl RepoRt

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2016 AnnuAl RepoRt

MAcRoeconoMic conditions in 2016

doMestic deMAnd

eXpoRt

doMestic MARket

oRgAnisAtion

shAReholdeRs And shARe cApitAl

MAnAgeMent boARd

supeRvisoRy boARd

peRfoRMAnce of kuke s.A.in specific business areas

geneRAl Results

geogRAphic stRuctuRe

insuRAnce AgReeMents

Activities of kuke s.A. under the act on insurance and reinsurance

of 11 september 2015 (commercial activities)

shoRt-teRM eXpoRt And doMestic cRedit insuRAnce

bonds

Activities of kuke s.A. under the act on export insurance backed

by the state treasury of 7 July 1994

finAnciAl Results

AnAlysis of the bAlAnce sheet

Assets

equity And liAbilities

AnAlysis of technicAl insuRAnce Account And oveRAll pRofit And loss Account

dAtA tAbles

Assets


technicAl Account of pRopeRty And cAsuAlty insuRAnce

geneRAl pRofit And loss Account

stAteMent of cAsh floWs

solvency pARAMeteRs

3

MAcRoeconoMic conditions in 2016

The growth in 2016 was mainly driven, like in 2015, by domestic

demand. A positive impact of the balance of export and import

trading was recorded, although it was smaller than in the pre-

vious year.

The growth of domestic demand in 2016 mainly derived from

an increase in consumption in the household and public sec-

tors. Changes in accumulation (including gross expenditure for

non-current assets and a change in inventories) contributed to

a material decrease in the rate of growth of the whole economy.

As regards to consumption, a repeated significant improvement

in the financial position of households was particularly impor-

tant. The improvement in the labour market, where headcount

and a real value of wages increased, was accompanied by ef-

fects of the 500+ programme, which substantially stabilised the

financial position of many households. Expenditure for public

consumption also grew as intensively as in the previous year.

Changes in inventories connected with companies preparing to

an expected period of an increased number of orders materially

strengthened domestic demand and economic growth.

In turn, the situation of investment processes was different. As

the period of the new EU perspective only just started (with re-

gard to infrastructural projects of the state and local govern-

ments) and given a high base of investments in some industries

(like power industry) for comparison purposes, total investments

regressed. Despite of that, the year 2016 was a period of inten-

sive modernisation and expansion of production capacities for

many industrial processing sectors. Housing construction indu-

stry also developed.

In terms of national accounts, the rate of growth of export and

import in 2016 was greater than in 2015. However, statistics kept

in euro recorded a decrease in the rate of growth of both export

and import.

In 2016, the rate of economic growth in Poland was 2.8% in comparison with

3.9% in 2015 and 3.3% in 2014. The rate of growth in particular quarters was

different. In the first half of the year, it was close to 3.0% and in the second

half it dropped to 2.5%. It must be also noted that the rate of growth was

substantially different in particular sectors of the Polish economy.

doMestic deMAnd

2016 AnnuAl RepoRt | macroeconomic conditions in 2016

4

Situation in the domestic market remained good. Moods among

enterprises’ consumers remained good. This was substantially

influenced by in-depth moderation of the monetary policy sin-

ce autumn 2012, which was additionally strengthened with a

correction of interest rates in autumn 2014 and spring 2015. An

easier and cheaper access to loans for enterprises favoured

a return to investment planning, but mainly contributed to an

improvement in liquidity and a reduction in financing expenses.

Households also felt an improvement in access to financing,

which additionally strengthened consumer demand.

As a result of another year of the good economic situation, the

small number of bankrupt companies in Poland was maintained.

In 2016, 603 companies went bankrupt and 199 restructuring

process were conducted, in comparison with 737 bankrupt

companies in 2015 (when the number of restructuring proces-

ses was not published at all). The rate of bankruptcies and re-

structuring of commercial companies in 2016 was 1.05% and was

identical to the rate of bankruptcies in 2015.

The rate of growth of export mainly resulted from the end, for our sa-

les, of positive foreign exchange conditions. In 2015, changes in the

value of dollar in relation to euro were in favour of the competitive po-

sition of our exporters in comparison to our suppliers from Far East. In

2016, the conditions deteriorated slightly. The rate of sales decreased,

in particular in term of European market and sales to developing co-

untries regressed. In turn, sales to highly developed non-EU countries

and to our Eastern neighbours were positive and negative trends of

previous two years were overcome.

In accordance with the statistics based on reports prepared by cu-

stoms offices in euro, Polish export grew 2.9% in 2016. Sales to co-

untries of the Euro Zone increased by 3.2%. The scale of growth of

export calculated for all EU countries was better and constituted 3.5%.

Export to countries of Central and Eastern Europe increased by 6.5%.

In the case of developing countries, the drop of export was estimated

at 6.1%. In 2016, export to other developed countries grew by 6.2%.

eXpoRt doMestic MARket

2.9%total GroWth of polish exports

3.2%GroWth of exports to countries of the eu

2.8% rate of economic GroWth

macroeconomic conditions in 2016 | 2016 AnnuAl RepoRt

5

oRgAnizAtion

shAReholdeRs And shARe cApitAl

The structure of the share capital as at 31 December 2016 was

as follows:

shAReholdeR

nuMbeR of

shARes

pAR vAlue

of shARes

(pln) shARe (%)

State Treasury represented by the Minister of Finance 700,828 70,082,800 63.31

Bank Gospodarstwa Krajowego bp 406,201 40,620,100 36.69

totAl 1,107,029 110,702,900 100.00

MAnAgeMent boARd

From 1 January 2016 to 25 January 2016, the Management Bo-

ard of KUKE S.A. was composed of:

☐ Dariusz Poniewierka – President of the Management Board

☐ Piotr Stolarczyk – Vice-president of the Management Board

On 25 January 2016, Jerzy Bielewicz was appointed a Vice-pre-

sident of the Management Board. On 12 February 2016, he resi-

gned from that function.

On 25 February 2016, Dariusz Poniewierka, President of the

Management Board, was dismissed. Marek Czerski was appo-

inted the President of the Management Board.

On 30 June 2016, the Annual Meeting of Shareholders of

KUKE S.A. appointed the Management Board of the new term:

☐ Marek Czerski – President of the Management Board

☐ Katarzyna Kowalska – Vice-president of the

Management Board


On 29 July 2016, Janusz Władyczak was appointed a Vice-pre-

sident of the Management Board.

On 30 January 2017, Marek Czerski resigned from the function

of the President of the Management Board of KUKE S.A. as of

1 February 2017.

Therefore, as at 1 February 2017, the Management Board of

KUKE S.A. was composed of:

☐ Katarzyna Kowalska – Vice-president of the

Management Board


☐ Janusz Władyczak – Vice-president of the

Management Board

As at 31 December 2016, the share capital of KUKE S.A. amoun-

ted to PLN 111,702,900 and was divided into 1,107,029 registered

ordinary shares of a par value of PLN 100 each. The share capi-

tal was fully paid-up.

2016 AnnuAl RepoRt | orGanization

6

supeRvisoRy boARd

As at 1 January 2016, the Supervisory Board of KUKE S.A. was

composed of:

☐ Wojciech Rząsiecki – Chairman

☐ Michał Gruba – Vice-chairman

☐ Michał Kempa

☐ Katarzyna Przewalska

☐ Maria Szymańska

☐ Arkadiusz Zabłoński

☐ Jacek Zieliński

On 23 December 2016, Ryszard Frączek filed his resignation

from the Supervisory Board of KUKE S.A.

On 28 June 2016, the term of the Supervisory Board of KUKE S.A.

expired. On 30 June 2016, the Extraordinary Meeting of Share-

holders appointed the new Supervisory Board composed of:

☐ Adam Barbasiewicz

☐ Wojciech Rząsiecki

☐ Mariusz Sokołowski

☐ Maria Szymańska

☐ Arkadiusz Urban

On 17 August 2016, the Extraordinary Meeting of Shareholders

dismissed Maria Szymańska from the Supervisory Board and

appointed Janusz Cieszyński as a member and Chairman of the

Supervisory Board. Therefore, as at 31 December 2016, the Su-

pervisory Board was composed of the following persons:

☐ Janusz Cieszyński – Chairman

☐ Adam Barbasiewicz

☐ Wojciech Rząsiecki

☐ Mariusz Sokołowski

☐ Arkadiusz Urban

orGanization | 2016 AnnuAl RepoRt

7

geneRAl Results

In 2016, KUKE S.A. insured a total turnover of PLN 32,563.70 mil-

lion, i.e. 6.0% more than in the previous year.

28,884.9

30,018.8

31,245.0

30,721.9

32,563.7

In 2016, insured export turnover grew by 10.4% in comparison

with 2015. Insured export turnover amounted to PLN 14,247.13

million, including PLN 10,925.00 million of commercial export in-

surances (growth of the volume by 10.9%) and PLN 3,322.12 mil-

lion of export insurances backed by the State Treasury and insu-

rance guarantees (growth of the volume by 8.8%).

Under the insurance of the short-term domestic loan and com-

mercial bonds, KUKE S.A. covered transactions of PLN 17,896.25

million, which means a 2.3% growth in comparison with 2015.

vAlue of insuRed eXpoRt And doMestic tuRnoveR

in pln Million (All insuRAnce fAcilities)

2012

2013

2014

2015

2016

rate of growth

95

96

108

98

106

peRfoRMAnce of kuke s.A.iN SPEcific bUSiNESS ArEAS

32.6 billionvalue of insured turnover (pln)

2,837active insurance policies and bonds

14 billionexposure (pln)

2016 AnnuAl RepoRt | performance of kuke s.a.

8

geogRAphic stRuctuRe

insuRAnce AgReeMents

geogRAphicAl stRuctuRe of insuRed eXpoRt

tuRnoveR (All insuRAnce fAcilities)

Germany

Russia

Czech Republic

Belorussia

Switzerland

UK

Italy

Norway

Sweden

Ukraine

Other

In the geographical structure of export turnover covered with

insurance and insurance guarantees, both commercial and tho-

se backed by the State Treasury, countries that prevailed were

Germany (22.0%), Russia (6.7%) and the Czech Republic (6.5%),

similarly to 2016. The share of EU countries was 64.7% (65.9% in

2015) and the share of ciS countries was 17.3% (16.6% in 2015).

In 2016, KUKE S.A. signed 1,478 new insurance contracts and in-

surance guarantees, including 924 in terms of commercial acti-

vities and 554 in terms of activities backed by the State Treasury.

In addition, 1,294 policies of previous years were renewed (415

in terms of commercial activities and 879 in terms of activities

backed by the State Treasury). In 2016, 2,772 policies were si-

gned and renewed in total, i.e. by 18.2% more than in 2015.

As at the end of 2016, there were 2,837 active policies, which

meant an increase by 18.7% in comparison with the previous year

(1,309 in terms of commercial activities: 19.4% growth, and 1,528

in terms of activities backed by the State Treasury: 18.1% growth).

684

918

1,397

1,114

1,478

nuMbeR of neW insuRAnce AgReeMents

(All insuRAnce fAcilities)

22.0%

6.7%

6.5%

6.2%

4.8%3.9%3.3%

3.3%3.2%

37.1%

3.1%

2012

2013

2014

2015

2016

rate of growth

133

152

134

101

80

performance of kuke s.a. | 2016 AnnuAl RepoRt

9

shoRt-teRM eXpoRt And doMestic cRedit insuRAnce

bonds

In 2016, within the 14th insurance class, KUKE S.A. insured short-

term export and domestic receivables of PLN 28,794.25 million

in total (5.4% more than in 2015).

Gross premium written under the insurance of short-term export

and domestic receivables was PLN 38.38 million, which means

that it decreased by 10.9% in comparison with 2015.

In 2016, 718 bonds of PLN 447.33 million were issued.

In comparison with 2015, the total of the value of bonds incre-

ased by 125.9%.

In the reporting year, the remuneration of KUKE S.A. for bonds

issued amounted to PLN 8.32 million, i.e. by 47.0% more than

in 2015.

Activities of kuke s.A. UNdEr thE Act oN iNSUrANcE ANd rEiNSUrANcE

of 11 SEPtEmbEr 2015 (commErciAL ActivitiES)

28.8 billionvalue of insured short-term receivables (pln)

718bonds issued

447.3 million value of bonds issued (pln)

2016 AnnuAl RepoRt | activit ies of kuke s.a.

10

In 2016, the total value of export contracts covered under 2-year

and longer credit insurance facilities was PLN 938.04 million, in-

cluding PLN 0.59 million due to increasing amendments to insu-

rance contracts of previous years. KUKE S.A. entered into 9 in-

surance contracts covering 9 export contracts of PLN 1,041.28

million.

Within the framework of the Government Export Support Pro-

gramme, in 2016 KUKE SA entered into contracts of PLN 288.75

million in total.

In the reporting period, premium written under the contract and

export credit insurance of 2 years and more was PLN 65.86 mil-

lion, i.e. four times more than in 2015.

In 2016, 120 turnover policies and 4 individual policies were si-

gned under the insurance of export contracts and sales agre-

ements entered into by subsidiaries and financed with credit

facilities of less than 2 years. 879 policies were renewed. As

at the end of the year, there were 993 active policies, i.e. 7.5%

more than in the previous year.

Total insured turnover amounted to PLN 2,072.41 million, i.e.

5.7% more than in 2015. Premium written signed under export

credit insurance of less than 2 years amounted to PLN 18.51 mil-

lion in the reporting period, i.e. 12.8% more than in 2015.

In 2016 KUKE S.A. granted 421 bonds backed by the State Tre-

asury of PLN 311.67 million in total, including 10 contract guaran-

tees of PLN 81.57 million, 1 credit repayment guarantee of PLN

16.00 million, and 410 bonds covering the payment of amounts

due under letters of credit of PLN 214.10 million. In the reporting

year, the remuneration of KUKE S.A. for bonds issued amounted

to PLN 5.02 million, i.e. 6.8% more than in 2015.

In 2016, 56 indemnities of PLN 261.53 million were paid,

including:

☐ 49 indemnities of PLN 11.03 million for the failure to pay

amounts due under the insurance of export contracts and

sales agreements entered into by subsidiaries and financed

with credit facilities of less than 2 years by business partners

in Belorussia, Georgia, Kazakhstan, Russia, Ukraine and

Uzbekistan;

☐ 7 indemnities of PLN 250.51 million on account of export

contract and export credit insurance of 2 years and more.

As a result of recourse proceedings related to export insuran-

ces backed by the State Treasury, in 2016 KUKE S.A. obtained

recourses of PLN 44.91 million, including:

☐ PLN 1.33 million on account of indemnities paid in connection

with the insurance of export contracts financed with a loan

of less than 2 years;

☐ PLN 24.35 million in relation to credit insurance contracts for

buyers, subject to repayment within 2 or more years;

☐ PLN 19.23 million on account of the refund of amounts of

bonds backed by the State Treasury.

Activities of kuke s.A. UNdEr thE Act oN ExPort iNSUrANcE bAcKEd

by thE StAtE trEASUry of 7 JULy 1994

activit ies of kuke s.a. | 2016 AnnuAl RepoRt

11

finAnciAl Results

AnAlysis of the bAlAnce sheet

KUKE S.A.’s balance-sheet total as at the end of 2016 was PLN

352.30 million and was 3.1% greater than as at the end of 2015.

The growth in the balance-sheet total resulted mainly from an

increase in funds kept in the separate bank account for insuran-

ce business backed by the State Treasury (by 16.0%, i.e. PLN 8.78

million), which is used for the purpose of settlements of activities

entrusted to KUKE S.A. on the basis of the Act on Export Insuran-

ce Backed by the State Treasury of 7 July 1994.

Major items of KUKE S.A.’s balance sheet as at 31 December 2015

and 31 December 2016 are presented in the table below.

1) Including reinsurers’ share and estimated salvages and subrogations.

Differences in control sums result from rounding.

Assets

31.12.2015

pln Million

shARe

%

31.12.2016

pln Million

shARe

%

chAnge

2016/2015

%

Intangible assets 0.51 0.10 0.53 0.20 5.20

Investments 237.56 69.50 239.95 68.10 1.00

Receivables 38.27 11.20 37.97 10.80 −0.80

Other assets

including cash kept in the separate bank account for

insurance business backed by the State Treasury

60.68

54.93

17.80

16.10

67.90

63.71

19.30

18.10

11.90

16.00

Prepayments 4.64 1.40 5.94 1.70 28.10

totAl Assets 341.66 100.00 352.30 100.00 3.10


31.12.2015

pln Million

shARe

%

31.12.2016

pln Million

shARe

%

chAnge

2016/2015

%

Equity 204.27 59.80 210.07 59.60 2.80

Technical insurance provisions 1) 42.95 12.60 40.34 11.40 −6.10

Other reserves 5.06 1.50 5.32 1.50 5.20

Other payables and special funds

including cash kept in the separate bank account for

insurance business backed by the State Treasury

81.86

54.93

24.00

16.10

90.98

63.71

25.80

18.10

11.10

16.00

Accruals 7.51 2.20 5.59 1.60 −25.60

totAl equity And liAbilities 341.66 100.00 352.30 100.00 3.10

2016 AnnuAl RepoRt | financial results

12

Assets

KUKE S.A.‘s equity as at the end of 2016 was PLN 210.07 million

and was 2.8% greater than as at the end of the previous year. The

equity constituted 59.6% of the balance-sheet total (2015: 59.8%).

As at 31 December 2016, liabilities and special funds grew by

12.1% in comparison with the previous year. They constituted

25.5% of total equity and liabilities. As at the end of 2016, they

amounted to PLN 89.89 million, including funds kept in the sepa-

rate bank account for insurance business backed by the State

Treasury which is used for the purpose of settlements connec-

ted with activity entrusted to KUKE S.A. on the basis of the Act on

Export Insurance Backed by the State Treasury, which amounted

to PLN 63.71 million.

As at the end of the reporting period, technical and insurance

provisions (including reinsurers’ share and estimated recourses)

amounted to PLN 40.34 million, which means that they decre-

ased by 6.1% in comparison with the end of 2015. They constitu-

ted 11.4% of total equity and liabilities.

The following table presents provisions established as at the

end of 2016.

In 2016, intangibles increased from PLN 0.51 million in 2015 to

PLN 0.53 million.

Investments constituted 68.1% of the balance-sheet total. In

comparison with the end of 2015, they increased by 1.0% and

reached PLN 239.95 million as at 31 December 2016.

Receivables as at the end of 2016 were PLN 37.97 million and

constituted 10.8% of total assets. In comparison with 2015, rece-

ivables increased by 0.8%, including:

☐ receivables under direct insurances (mainly premium settle-

ments) decreased by 6.9% from PLN 21.12 million in 2015 to

PLN 19.66 million in 2016;

☐ reinsurance receivables decreased by 18.3% from PLN 13.05

million in 2015 to PLN 10.66 million in 2016;

☐ other receivables grew by 86.3% from PLN 4.11 million in 2015

to PLN 7.65 million in 2016; their growth resulted from settle-

ments connected with a commission charged by KUKE S.A.

for insurances backed by the State Treasury.

Other assets as at 31 December 2016 amounted to PLN 67.90

million and were 11.9% greater than as at 31 December 2015.

Funds kept in the separate bank account for insurance business

backed by the State Treasury, which is used for the purpose of

settlements connected with activity entrusted to KUKE S.A. on

the basis of the Act on Export Insurance Backed by the State

Treasury of 7 July 1994 constituted 93.8% of the above amount,

i.e. PLN 63.71 million..

1) Including reinsurers’ share and estimated salvages and subrogations.

Differences in control sums result from rounding.

type of pRovisions

31.12.2015

pln Million

shARe

%

31.12.2016

pln Million

shARe

%

chAnge

2016/2015

%

Provision for premiums and unexpired risk 42.09 63.60 47.47 70.30 12.80

Provisions for unpaid indemnities and benefits 1) 10.19 15.40 15.88 23.50 55.90

Equalisation provision 9.23 13.90 0.29 0.40 −96.80

Provision for bonuses and rebates for

the insured

4.71 7.10 3.88 5.70 −17.60

totAl 66.21 100.00 67.52 100.00 2.00


financial results | 2016 AnnuAl RepoRt

13

AnAlysis of the technicAl insuRAnce Account And oveRAll pRofit And loss Account

In 2016, revenues from net premium earned (including a change

in the provision for unexpired risk) amounted to PLN 22.33 mil-

lion, i.e. 14.0% less (PLN 3.62 million) than in 2015.

A gross premium written was PLN 46.70 million and decreased

by 4.2%, i.e. PLN 2.02, in comparison with 2015.

In 2016, indemnities and benefits paid net of reinsurance amo-

unted to PLN 12.23 million and were 15.0% greater than in the

previous year. The provision for unpaid indemnities and benefits

net of reinsurance, including estimated recourses, grew by PLN

3.50 million (in 2015, it dropped by PLN 5.15 million).

Costs of insurance activities (costs of administration and acqu-

isition and reinsurance commissions received) increased by

38.4% in comparison with 2015 and amounted to PLN 15.00 mil-

lion. Costs of administration and acquisition increased in com-

parison with 2015 by 4.4% to PLN 20.86 million. Revenues from

reinsurance commissions (which decrease the costs of insuran-

ce activity) increased by 35.9% in comparison with 2015 to PLN

5.86 million.

Technical result before the establishment of the equalisation

provision was PLN -9.43 million. Given its positive technical re-

sult in the 14th insurance class, KUKE S.A. released the equalisa-

tion provision of PLN 8.93 million.

Ultimately, technical insurance result in 2016 was PLN -0.50 mil-

lion in comparison with PLN 2.40 million in 2015.

In 2016, the balance of investment income and expenses (cal-

culated as total income from investments, unrealised profits and

losses from investments and expenses of investing activities)

was PLN 4.92 million. It was by 11.5% greater than in 2015. Re-

sult from investments in 2016 was reduced by PLN 1.18 million by

unrealised loss from the shares of KUKE Finance S.A.

Other operating income and expenses amounted to PLN 3.89

million, including commissions and expenses connected with

handling export insurances backed by the State Treasury of

PLN 3.64 million (in comparison with PLN -4.03 million in 2015),

and resulted from the commission which was smaller than in

2015 and derived from gross premium written under those

insurances.

−0.5 milliontechnical result (pln)

12.2 millionclaims and benefits paid (pln)

6.2 millionnet profit (pln)


14

For presentation purposes, items with an adverse impact on the result are disclosed with a “−“ sign.

selected iteMs of the technicAl Account

And the pRofit And loss Account

31.12.2015

pln Million

31.12.2016

pln Million

Gross premiums 48.72 46.70

Net premiums 25.95 22.33

Indemnities and benefits −5.49 −15.73

Net bonuses and rebates 0.01 −0.98

Other technical income and expenses 0.29 −0.05

Insurance management expenses −10.84 −15.00

Change in the equalisation provision −7.52 8.93

technicAl Result 2.40 −0.50

Investment income and expenses 4.42 4.92

Other operating income and expenses −4.05 3.89

pRofit (loss) befoRe tAX 2.77 8.32

Income tax −0.39 −2.08

pRofit (loss) AfteR tAX 2.38 6.23

−8.3

4.1

5.0

2.4

6.2

net pRofit/loss in pln Million

2012

2013

2014

2015

2016

In 2016 KUKE S.A. recorded a gross profit of PLN 8.32 in compa-

rison with PLN 2.77 million in the previous year. Including current

and deferred income tax of PLN 2.08, the net profit stood at PLN

6.23 million (2015: PLN 2.38 million).

As at 31 December 2016, KUKE S.A. met all legally required pru-

dential standards for insurance activity.


15

(pln thousAnd) 31.12.2015 31.12.2016

Intangible assets 508 535

Investments 237 562 239 953

Investments in subordinated undertakings 46 560 45 380

Shares in subordinated undertakings 21 510 20 328

Loans to subordinated undertakings and debt securities issued by those undertakings 25 050 25 052

Other financial investments 191 002 194 573

Debt securities and other fixed income securities 171 687 181 722

Deposits with credit institutions 19 315 12 851

Receivables 38 274 37 968

Direct insurance receivables 21 119 19 656

Reinsurance receivables 13 049 10 663

Other receivables 4 106 7 649

Other assets 60 676 67 904

Tangible fixed assets 1 770 1 883

Cash and cash equivalents 58 906 66 022

incl.: cash on separate bank account for insurance business guaranteed by the State

Treasury

54 928 63 709

Deferred expenses and accrued income 4 639 5 942

Deferred tax assets 1 874 1 902

Deferred acquisition costs 2 401 3 676

Other deferred expenses and accrued income 364 363

totAl Assets 341 659 352 302

Assets


16

(pln thousAnd) 31.12.2015 31.12.2016

Equity 204 272 210 075

Issued share capital 110 703 110 703

Reserve capital 58 417 60 152

Revaluation reserves 45 −286

Other reserves 33 273 33 273

Profit (loss) brought forward −549 0

Net profit (loss) 2 383 6 233

Technical insurance provisions 66 974 68 756

Premium reserve and unexpired risk reserve 42 094 47 468

Provision for outstanding claims 10 949 17 119

Provision for bonuses and rebates 4 705 3 875

Equalization provision 9 226 294

Reinsurers' share in technical provisions (negative figure) 23 579 27 701

Reinsurers' share in unearned premium reserve and unexpired risk reserve 17 379 19 644

Reinsurers' share in provision for outstanding claims 4 232 6 627

Reinsurers' share in provision for bonuses and rebates 1 969 1 430

Estimated salvages and subrogations (negative figure) 442 718

Estimated salvages and subrogations 762 1 238

Reinsurers' share in estimated salvages and subrogations 320 520

Other provisions 5 059 5 324

Employee benefit provisions 3 315 3 423

Deferred tax liabilities 490 406

Other provisions 1 254 1 495

Other payables and special funds 81 864 90 979

Direct insurance payables 1 884 1 998

Reinsurance payables 19 450 18 325

Other payables 5 207 6 686

Special funds 55 323 63 971

incl.: cash on separate bank account for insurance business guaranteed by the State

Treasury

54 928 63 709

Accruals and deferred income 7 512 5 586

totAl equity And liAbilities 341 659 352 302



17

(pln thousAnd)

01.01.2015-

-31.12.2015

01.01.2016-

-31.12.2016

Premiums 25 954 22 330

Gross written premiums 48 722 46 698

Reinsures' share in written premiums 22 285 21 259

Change in unearned premium reserve and unexpired risk reserve 414 5 374

Reinsures' share in change in reserves −69 2 265

Other net technical income 3 420 3 146

Claims and benefits 5 491 15 730

Net claims and benefits paid 10 637 12 232

Net change in outstanding claims provision −5 146 3 498

Net premiums and benefits incl. change in provisions −9 984

General insurance expenses 10 841 15 001

Acquisition costs 8 692 8 816

Administrative expenses 11 279 12 040

Reinsurance commissions and shares in profit 9 131 5 856

Other net technical expenses 3 132 3 193

Change in equalization reserve 7 517 −8 932

technicAl Result 2 403 −500

technicAl Account of pRopeRty And cAsuAlty insuRAnce


18

(pln thousAnd)

01.01.2015-

-31.12.2015

01.01.2016-

-31.12.2016

Technical result 2 403 −500

Investment income 6 990 6 650

Unrealized gains on investments 0 7

Investment management expenses 562 552

Unrealized losses on investments 2 012 1 181

Net investment income transferred to the genera profit and loss account 0 0

Other operating income 9 528 17 445

incl.: income due to insurance activity guaranteed by the State Treasury 8 926 16 553

Other operating expenses 13 578 13 552

incl.: expenses due to insurance activity guaranteed by the State Treasury 12 954 12 913

Operational profit (loss) 2 769 8 317

Gross profit (loss) 2 769 8 317

Income Tax 386 2 084

net pRofit (loss) 2 383 6 233

geneRAl pRofit And loss Account


19

(pln thousAnd)

01.01.2015-

-31.12.2015

01.01.2016-

-31.12.2016

Cash flows from operating activities −41 425 4 906

Inflows 218 040 390 984

Direct insurance and inward reinsurance inflows 56 615 52 991

Premium inflows 47 453 45 111

Inflows due to salvages, subrogations and claim payment returns 5 973 4 975

Other direct insurance and inward reinsurance inflows 3 189 2 905

Outward reinsurance inflows 20 671 16 386

Shares of reinsurers in claims paid 11 401 7 586

Inflows from reinsurance commissions and share in reinsurers’ profits 9 036 8 650

Other inflows from outward reinsurance 234 149

Other operating inflows 140 754 321 608

Outflows 259 466 386 078

Direct insurance and inward reinsurance outflows 52 814 57 918

Claims and benefits paid gross 19 300 20 567

Outflows due to acquisition 12 467 13 330

Administrative outflows 14 228 16 976

Loss adjustment 4 460 4 865

Other direct insurance and inward reinsurance outflows 2 360 2 179

Outward reinsurance outflows 27 156 26 947

Other operating outflows 179 495 301 214

Investment cash flows 448 2 121

Inflows 2 971 470 2 815 121

Outflows 2 971 022 2 812 999

Financing cash flows −13 88

Total net cash flows −40 991 7 115

Cash and cash equivalents opening balance 99 897 58 906

Cash and cash equivalents closing balance 58 906 66 022

incl.: of limited disposing capacity 55 104 63 800

stAteMent of cAsh floWs


20

As at 31.12.2016

(pln thousAnd)

Ordinary share capital (gross of own shares) 110 703

Share premium account related to ordinary share capital 19 073

Reconciliation reserve 86 392

An amount equal to the value of net deferred tax assets 55

Total basic own funds after deductions 216 223

Total eligible own funds to meet the scR 216 223

Total eligible own funds to meet the McR 216 168

Solvency Capital Requirement – scR 52 552

Minimum Capital Requirement – McR 16 009

Ratio of Eligible own funds to scR 411.4%

Ratio of Eligible own funds to McR 1350.3%

solvency pARAMeteRs


eXpoRt cRedit insuRAnce

coRpoRAtion

Joint stock coMpAny

ul. Sienna 39

00-121 Warsaw

tel.: (+48 22) 356 83 00

[email protected]

WWW.kuke.coM.pl

2016 AnnuAl RepoRt - kuke.com.pl · In 2016, KUKE S.A. signed 1,478 new insurance contracts and in-...

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