Annual Report 2016

F.33. Related parties

This chapter contains information about all important transactions with related parties excluding those which are described in other parts of the notes.

F.33.1. Identity of related parties

As at 31 December 2016, CZI Holdings N.V. is the sole shareholder of the Parent Company.

The ultimate parent company is Assicurazioni Generali S.p.A.

The Group is related to its parent companies which are CZI Holdings N.V. and Assicurazioni Generali S.p.A. and to companies controlled by them.

The key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly.

The key management personnel of the Group 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 Group 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.33.2. Transactions with key management personnel of the Group

For the year ended 31 December 2016Board of DirectorsSupervisory Board
(CZK million)Related to the board membershipRelated to employment contractRelated to the board membershipRelated to employment contract
Short-term benefitsprovided by the Group1081
State-defined contribution pension plan2
For the year ended 31 December 2015Board of DirectorsSupervisory Board
(CZK million)Related to the board membershipRelated to employment contractRelated to the board membershipRelated to employment contract
Short-term benefits provided by the Group5121
State-defined contribution pension plan1

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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 2016 termination benefits to key management personnel of the Group amounting to CZK 16 million were paid. During the reporting period 2015, termination benefits to key management personnel of the Group amounting to CZK 13.9 million were paid.

As at 31 December 2016 and 31 December 2015, the members of the statutory bodies held no shares in the Parent Company.

F.33.3. Related party transactions

The Group had no material transactions with the ultimate parent company Generali Assicurazzioni in either 2016 or 2015.

The dividend declared and paid to the sole shareholder is disclosed in the note F.9.1.

The other related parties fall into the following groups:

  • Group 1 – CZI Holdings, N.V., the Parent Company’s shareholder
  • Group 2 – Entities in the Generali Group
  • Group 3 – other related parties

Following tables don’t include currency gains and losses:

31.12.2015
(CZK million)

Notes

Group 1

Group 2

Group 3
Receivables from insurance and reinsurance businessi1,721
Reinsurance assetsii8,725
Other financial assets
Other assets7797
Total assets11,2257
Payables from insurance and reinsurance businessiii5,623
Technical provisions299
Other financial liabilitiesiv944
Other liabilities5593
Total liabilities7,4253
Notes:

  1. The balances with companies in Group 2 mainly comprise receivables from reinsurance from GP Reinsurance EAD, Bulgaria (GP RE) amounting to CZK 1,513 million and from Generali Pojišťovna a.s. amounting to CZK 120 million.
  2. The balances with companies in Group 2 comprise technical provisions ceded to GP RE amounting to CZK 8,514 million.
  3. The balances with companies in Group 2 comprise liabilities from reinsurance to GP RE amounting to CZK 5,414 million.
  4. The balances with companies in Group 2 comprise the loan provided by Generali CEE Holding B.V. to City Empiria a.s. amounting to CZK 784 million.

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(CZK million)NotesGroup 1Group 2Group 3
Receivables from insurance and reinsurance businessi1,737
Reinsurance assetsii8,718
Other financial assets30
Other assetsiii1,160
Total assets11,645
Payables from insurance and reinsurance businessiv5,508
Technical provisions257
Other financial liabilitiesv1,052
Other liabilities577
Total liabilities7,395
Notes:

  1. The balances with companies in Group 2 mainly comprise receivables from reinsurance from GP Reinsurance EAD, Bulgaria (GP RE) amounting to CZK 1,493 million and from Generali Pojišťovna a.s. amounting to CZK 167 million
  2. The balances with companies in Group 2 comprise technical provisions ceded to GP RE amounting to CZK 8,583 million.
  3. The balances with companies in Group 2 include receivable towards Generali Towarzystwo Ubezpieczen S.A. amounting to CZK 506 million and receivable towards Generali Infrastructure Services s.c.a.r.l. amounting to CZK 502 million.
  4. The balances with companies in Group 2 comprise liabilities from reinsurance to GP RE amounting to CZK 5,332 million and to Generali Pojišťovna a.s. amounting to CZK 118 million.
  5. The balances with companies in Group 2 comprise the loan provided by Generali CEE Holding B.V. to City Empiria a.s. amounting to CZK 892 million.

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2016
(CZK million)
NotesGroup 1Group 2Group 3
Income from insurance and reinsurance businessi6,263
Income from financial activities1
Other income71
Total income6,335
Expenses from insurance and reinsurance businessii(9,456)
Expenses from financial activities(226)
Other expenses(112)(4)
Total expenses(9,794)(4)
Notes:

  1. The balances in Group 2 include transactions from reinsurance with GP RE amounting to CZK 5,762 million (commission and claims paid by GP RE).
  2. The balances in Group 2 include the ceded earned premium to GP RE amounting to CZK 9,034 million.

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2015
(CZK million)

Notes

Group 1

Group 2

Group 3
Income from insurance and reinsurance businessi8,365
Income from financial activities13
Other incomeii954172
Total income9548,550
Expenses from insurance and reinsurance businessiii(10,897)
Expenses from financial activities(222)
Other expenses(88)
Total expenses(11,206)
Notes:

  1. The balances in Group 2 include transactions from reinsurance with GP RE amounting to CZK 7,867 million (commission and claims paid by GP RE).
  2. Group 2 includes transactions with investments with CZI Holdings N.V. amounting to CZK 954 million.
  3. The balances in Group 2 include the ceded earned premium to GP RE amounting to CZK 10,276 million.

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