F.30. Off balance sheet items
F.30.1. Commitments
The Company had no significant contractual commitments as at 31 December 2016.
F.30.2. Other contingencies
F.30.2.1. Legal
As at the release date of the financial statements, there was a legal case that consolidated cases concerning the decision of the general meeting of the Company in 2005 approving a squeeze-out of minority shareholders and consideration paid on the squeeze-out pending. Based on legal analyses carried out by external legal counsel, management of the Company believes that none of these cases gives rise to any contingent future liabilities for the Company.
F.30.2.2. Participation in Czech insurance nuclear pool
Česká pojištovna a.s. is a member of the Czech insurance nuclear Pool (CzNIP). The subscribed net retention is as follows:
| In CZK million, for the year ended 31 December | 2016 | 2015 |
|---|---|---|
| Liability (w/o D&O liability) | 150 | 148 |
| D&O liability only | 19 | 18 |
| FLEXA extended coverage of nuclear Risks plus BI | 578 | 576 |
| Transportation risk | 117 | 115 |
| Engineering and “all risk”cover | 290 | 288 |
| Total | 1,154 | 1,145 |
The Company as a member of CzNIP signed pool documents like Statute, Cooperation agreement, Claims handling cooperation agreement and Solidarity agreement. As a result of this, the Company is jointly and severally liable for the obligations resulting from these pool documents. This means that, in the event that one or more of the other members are unable to meet their obligations to the CzNIP, the Company would take over the uncovered part of this liability, pro-rata to its own net retention used for the contracts in question. The management does not consider the risk of another member being unable to meet its obligations to the CzNIP to be material to the financial position of the Company and implemented adequacy rules of net member’s retentions related to their capital positions. In addition, the potential liability of the Company for any given insured/assumed risk is contractually capped at quadruple the Company’s net retention for direct risks (insurance contracts) and double the Company’s net retention for indirect risks (inwards reinsurance contracts).
F.30.2.3. Collateral pledged on behalf of third party
There is no collateral pledged on behalf of third party as at 31 December 2016.
As at 31 December 2015 there was a pledge in favour of a bank over the Company´s business share in the subsidiary Pařížská 26, s.r.o. The subsidiary of the Company has obtained a bank loan with outstanding balance of the loan as at 31 December 2015 CZK 236 million.
F.30.2.4. Membership in the Czech Insurers’ Bureau
As a member of the Czech Insurers’ Bureau (“the Bureau”) related to MTPL insurance, the Company is committed to guarantee the MTPL liabilities of the Bureau. For this purpose, the Company makes contributions to the guarantee fund of the Bureau based on the calculations of the Bureau (see F.11).
In the event of a fellow member of the Bureau being unable to meet its liabilities arising from MTPL due to insolvency, the Company may be required to make additional contributions to the guarantee fund. Management does not believe the risk of this occurring to be material to the financial position of the Company.