F.8. Non-current assets held-for-sale and discontinued operations
In 2015, with the main goal being to simplify the management structure of Generali CEE operations in Central Europe and due to new regulatory requirements arising from the introduction of Solvency II rules, the Group management approved the decision of GCEE bodies to transfer the Polish operations through the sale of part of the company to Generali Towarzystwo Ubezpieceń S.A. (Generali Poland), a subsidiary of Generali CEE Holding B.V. The sale was completed as at 31 December 2015 and the agreed sales price amounted to PLN 79.7 million. The gain on sale amounting to CZK 56 million has been recognised in the income statement.
As a result of the decision, the Polish operations were classified as discontinued operations as at 31 December 2015. As at 31 December 2016, there were not any discontinued operations in the Group.
The following table shows the contribution of discontinued operations to the income statement for the period up to 31 December 2015. The net result of discontinued operations is presented in the line “Loss from discontinued operations after tax”.
| (CZK million) | 2015 |
|---|---|
| Net earned premiums revenue | 1,754 |
| Net losses from financial instruments at fair value through profit or loss | (17) |
| Interest income | 77 |
| Realised gains | 18 |
| Other income | 84 |
| Total income | 1,916 |
| Net insurance benefits and claims | (2,226) |
| Realised losses and impairment losses | (50) |
| Expense – other | – |
| Acquisition costs | (371) |
| Administration costs | (346) |
| Other expenses | (166) |
| Total expenses | (3,159) |
| Loss before tax | (1,243) |
| Gain on disposal of discontinued operations | 56 |
| Loss from discontinued operations after tax | (1,187) |
The income statement includes the transactions with GP Reinsurance EAD, Bulgaria – income from ceded reinsurance commission and claims paid amounting to CZK 1,995 million and expenses from ceded earned premium amounting to CZK 1,323 million.
The effect of discontinued operations on other comprehensive income for the period up to 31 December 2015 is the following:
| (CZK million) | 2015 |
|---|---|
| Net profit for the year | (1,187) |
| Exchange rate differences in equity | 22 |
| Available for sale financial assets’ revaluation in equity | (26) |
| Available for sale financial assets’ revaluation in income statement | 3 |
| Other comprehensive income before tax effects | (1) |
| Tax on items of other comprehensive income | – |
| Other comprehensive income/loss, net of tax | (1) |
| Total comprehensive income | (1,188) |
Cash flows from / (used in) discontinued operations for the period ended 31 December 2015 were the following:
| (CZK million) | 2015 |
|---|---|
| Net cash flows from / (used in) operating activities | (1,482) |
| Net cash flows from / (used in) investing activities | 1,265 |
| Net cash flows used in financing activities | (2) |
| Net cash decrease from discontinued operations | (219) |