F.32. Related parties
This chapter contains information about all significant transactions with related parties excluding those which are described in other parts of the notes.
F.32.1. Identity of related parties
The Company is related to ultimate controlling entity Assicurazioni Generali S.p.A. and to companies controlled by it. The Company also has a related party relationship with its subsidiaries and associates as well as with its indirect 24% shareholder PPF Group N.V. and companies controlled by it.
The key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly.
The key management personnel of the Company 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 Company 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.32.2. Transactions with key management personnel of the Company
| In CZK million, as at 31 December 2014 | Board of Directors | Supervisory Board | ||
|---|---|---|---|---|
| Related to the board membership | Related to employment contract | Related to the board membership | Related to employment contract |
|
| Short-term employee benefits | 12 | 61 | — | 1 |
| State-defined contribution pension plan | — | 1 | — | — |
| In CZK million, as at 31 December 2013 | Board of Directors | Supervisory Board | ||
|---|---|---|---|---|
| Related to the board membership | Related to employment contract | Related to the board membership | Related to employment contract |
|
| Short-term employee benefits | 1 | 96 | 1 | 2 |
| State-defined contribution pension plan | — | 2 | — | — |
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 the reporting period 2014 termination benefits to the key management personnel of the Group in the amount of CZK 16.7 million were paid. During reporting period 2013 termination benefits to the key management personnel of the Group in the amount of CZK 18 million were paid.
As at 31 December 2014 and 31 December 2013, the members of the statutory bodies held no shares of the Company.
F.32.3. Related party transactions
The related party transactions were carried out on terms equivalent to those that would apply in similar transactions with unrelated parties and are usually settled in cash.
The Company had no material transactions or outstanding balances with the ultimate parent company Generali in either in 2014 or in 2013.
The other related parties fall into the following groups:
Group 1 – subsidiaries and associates directly consolidated within the Company’s group;
Group 2 – enterprises directly consolidated within the group of the ultimate parent company
Group 3 – other related parties (primarily entities from PPF Group N.V., indirect 24% shareholder of the Company)
| In CZK million, for the year ended 31 December 2014 | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Assets | ||||
| Receivables from insurance and reinsurance business | i | 22 | 1,706 | 2 |
| Reinsurance assets | ii | — | 9,118 | — |
| Other financial assets | iii | 906 | — | 8,319 |
| Other assets | 79 | 321 | 272 | |
| Total assets | 1,007 | 11,145 | 8,593 | |
| Liabilities | ||||
| Payables from insurance and reinsurance business | iv | 58 | 5,354 | — |
| Insurance liabilities | 3 | 224 | — | |
| Other financial liabilities | — | 160 | 62 | |
| Other liabilities | 141 | 234 | 5 | |
| Total liabilities | 202 | 5,972 | 67 |
Notes:
- The balances with companies in group 2 comprise primarily receivables from reinsurance from GP Reinsurance EAD, Bulgaria (GP Re) in the amount of CZK 1,649 million.
- The balances with companies in Group 2 comprise technical provisions ceded to GP Re in the amount of CZK 9,053 million.
- The balances with companies in group 1 comprise loans with Apollo Business Center IV, a.s. in the amount of CZK 372 million and loans with PALAC KRIZIK a.s. in the amount of CZK 537 million. The balances with companies in group 3 comprise bonds issued by Home Credit group companies in the amount of CZK 4,309 million and reverse repo operations with PPF banka a.s. in the amount of CZK 4,000 million.
- The balances with companies in group 2 comprise payables from reinsurance from GP Re in the amount of CZK 5,301 million.
| In CZK million, for the year ended 31 December 2013 | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Assets | ||||
| Receivables from insurance and reinsurance business | i | 19 | 1,673 | 6 |
| Reinsurance assets | ii | — | 9,263 | — |
| Other financial assets | iii | 1,229 | — | 3,973 |
| Other assets | 61 | 39 | 289 | |
| Total assetsy | 1,309 | 10,975 | 4,268 | |
| Liabilities | ||||
| Payables from insurance and reinsurance business | iv | 51 | 5,484 | 1 |
| Insurance liabilities | 3 | 153 | 24 | |
| Other financial liabilities | — | 85 | 960 | |
| Other liabilities | 122 | 30 | 7 | |
| Total liabilities | 176 | 5,752 | 992 |
Notes:
- The balances with companies in group 2 comprise primarily receivables from reinsurance from GP Re in the amount of CZK 1,627 million.
- The balances with companies in group 2 comprise technical provisions ceded to GP Re in the amount of CZK 9,174 million.
- The balances with companies in group 1 comprise loans with Apollo Business Center IV, a.s. in the amount of CZK 1,232 million and the balances with companies in group 3 comprise bonds issued by Home Credit Group companies in the amount of CZK 3,048 million.
- The balances with companies in group 2 comprise payables from reinsurance from GP Re in the amount of CZK 5,447 million.
| In CZK million, for the year ended 31 December 2014 | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Income | ||||
| Income from insurance business | 5 | 185 | 34 | |
| Income from reinsurance business | i | — | 6,505 | — |
| Income from financial activities | 540 | 68 | (94) | |
| Other income | 49 | 170 | 61 | |
| Total income | 594 | 6,928 | 1 | |
| Expenses | ||||
| Expenses from insurance business | (75) | (124) | — | |
| Expenses from reinsurance business | ii | — | (9,804) | — |
| Expenses from financial activities | (7) | (81) | (15) | |
| Other expenses | (449) | (428) | (124) | |
| Total expenses | (531) | (10,437) | (139) |
Notes:
- The balances in group 2 include transactions from reinsurance with GP Re in the amount of CZK 6,495 million (reinsurance commission and claims paid).
- The balances in group 2 include ceded earned premium with GP Re in the amount of CZK 9,673 million.
| In CZK million, for the year ended 31 December 2014 | Notes | Group 1 | Group 2 | Group 3 |
|---|---|---|---|---|
| Income | ||||
| Income from insurance business | 6 | 165 | 44 | |
| Income from reinsurance business | i | (1) | 7,645 | (5) |
| Income from financial activities | 176 | 55 | 174 | |
| Other income | 113 | 136 | 206 | |
| Total income | 294 | 8,001 | 419 | |
| Expenses | ||||
| Expenses from insurance business | (28) | (111) | (46) | |
| Expenses from reinsurance business | ii | — | (9,712) | — |
| Expenses from financial activities | (3) | (108) | (38) | |
| Other expenses | (296) | (61) | (251) | |
| Total expenses | (327) | (9,992) | (335) |
Notes:
- The balances in group 2 include transactions from reinsurance with GP Re in the amount of CZK 7,592 million (reinsurance commission and claims paid).
- The balances in group 2 include ceded earned premium with GP Re in the amount of CZK 9,592 million.
For the details of the collateral pledged with the related parties see Note E.5. For details of the guarantees received or provided see Note F.31.