Financial Performance
Assets
Česká pojišťovna has long been a highly capitalised and stable company, with assets totalling CZK 115 billion at 31 December 2014. Shareholder’s equity is nearly CZK 24 billion and the share capital stands at CZK 4 billion.
The largest asset item by volume is investments, amounting to CZK 85.9 billion as at 31 December 2014 (down by CZK 1.5 billion from 2013). These investments were predominantly channelled into equity interests, which saw Česká pojišťovna increase its share in real estate companies. Assets in equity interests climbed by CZK 1.6 billion year on year to CZK 7.9 billion. Investments contracted mainly in financial assets at fair value through profit or loss (down by CZK 5 billion). Borrowings were up on 2013 by CZK 3.6 billion, chiefly on account of reverse repo transactions.
The Company’s cash and cash equivalents decreased by CZK 2.7 billion year on year, amounting to CZK 2.5 billion as at 31 December 2014.
Reinsurance assets remained more or less unchanged, slipping by CZK 0.3 billion to CZK 10 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 2014 accounting period.
Earnings
In 2014, Česká pojišťovna reported a post-tax profit of CZK 3.6 billion according to international accounting standards.
Česká pojišťovna’s total premiums written in 2014, reported according to Czech Insurance Association1 guidelines, were CZK 27.5 billion. Of this figure, non-life insurance accounted for CZK 17.8 billion and life insurance for CZK 9.7 billion.
Share Capital and Reserves
The Company’s share capital was unchanged at CZK 4 billion in 2014.
In 2014, shareholder equity grew by CZK 2.5 billion to CZK 23.5 billion.
Profit Distribution Proposal
Based on the approved financial statements and profit distribution principles applied, on 27 April 2015 the Board of Directors approved the proposal to pay a dividend of CZK 81,800 per ordinary share, i.e. a total of CZK 3.272 billion. The remainder of the profit from the 2014 accounting period is to be allocated to retained earnings.
Dividends in Previous Years
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.
In April 2013, the sole shareholder, acting in the capacity of the General Meeting, decided on the pay-out of a gross dividend for 2012 totalling CZK 3.4 billion.
Insurance Provisions
Total insurance provisions (net of the reinsurers’ share) under the Insurance Act were down by CZK 6.33 billion year on year to CZK 78.16 billion as at 31 December 2014 (of which, in accordance with IFRS, a CZK 0.66 billion provision for liabilities to the Czech Insurers’ Bureau was included in other provisions and a CZK 0.5 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 life insurance where the investment risk is borne by the policyholder. As at 31 December 2014, the gross life insurance provision totalled CZK 53 billion, a year-on-year fall by CZK 7.04 billion.
Provision for Non-life Insurance Claims
This provision includes claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). As at 31 December 2014, the provision for non-life insurance claims totalled CZK 18 billion, up by CZK 0.4 million on the previous year.
Provision for Unearned Non-life Insurance Premiums
The total amount of provisions for unearned premiums rose by CZK 0.46 billion year on year to stand at CZK 5.76 billion as at 31 December 2014.
Receivables and Payables
Receivables decreased by CZK 0.6 billion year on year, amounting to CZK 6 billion as at 31 December 2014. Payables remained more or less stable year on year, amounting to CZK 8 billion as at 31 December 2014.
1 – 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 part of the freedom of services