Report on Financial Performance
Assets
Česká pojišťovna has long been a highly capitalised and stable company, with assets totalling CZK 110 billion as at 31 December 2016. The shareholder’s equity is more than CZK 26 billion and the share capital stands at CZK 4 billion.
The largest asset item by volume is investments, amounting to CZK 79.7 billion as at 31 December 2016 (CZK 2.1 billion more than in 2015). These capital resources were increased in response to a rise in lending by CZK 4.4 billion, mainly comprising reverse repo transactions. Assets in equity interests climbed by CZK 0.7 billion year on year to CZK 9.6 billion. The main downturn in investments could be seen in financial assets at fair value through profit or loss (down by CZK 0.8 billion) and in available-for-sale securities (down by CZK 1.4 billion).
The Company’s cash and cash equivalents increased by CZK 0.9 billion year on year, amounting to CZK 2.8 billion as at 31 December 2016.
Reinsurance assets remained more or less unchanged, slipping by CZK 0.1 billion to CZK 9.7 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 2016 accounting period.
Earnings
In 2016, Česká pojišťovna reported a post-tax profit of CZK 4.2 billion according to international accounting standards, a CZK 0.1 billion rise on 2015.
Česká pojišťovna’s total written premiums in 2016, reported according to Czech Insurance Association3 guidelines, were CZK 26.7 billion. Of this figure, non-life insurance accounted for CZK 18.5 billion and life insurance for CZK 8.2 billion.
Share Capital and Reserves
The Company’s share capital was unchanged at CZK 4 billion in 2016.
In 2016, shareholder equity grew by CZK 1.3 billion to CZK 26.7 billion.
Profit Distribution Proposal
Further to the approved financial statements and the profit distribution principles applied, on 24 April 2017 the Board of Directors approved a proposal to pay a dividend of CZK 93,850 per ordinary share, i.e. a total of CZK 3.754 billion. The remainder of the profit from the 2016 accounting period is to be allocated to retained earnings.
Dividends in Previous Years
In April 2016, the sole shareholder, acting in the capacity of the General Meeting, decided on the pay-out of a gross dividend for 2015 totalling CZK 3.684 billion.
In April 2015, the sole shareholder, acting in the capacity of the General Meeting, decided on the pay-out of a gross dividend for 2014 totalling CZK 3.272 billion.
Insurance Provisions
Total insurance provisions (net of the reinsurer share) under the Insurance Act were down by CZK 3.07 billion year on year to CZK 65.22 billion as at 31 December 2016 (of which, in accordance with IFRS, a CZK 0.45 billion provision for liabilities to the Czech Insurers’ Bureau was included in other provisions).
Life Insurance Provisions
These provisions account for more than two thirds (67%) of the overall insurance provisions and consist primarily of a life insurance premium provision and a provision for unit-linked life policies (where the investment risk is borne by the policyholder). As at 31 December 2016, gross life insurance provisions totalled CZK 43.9 billion, a year-on-year fall by CZK 2.73 billion.
Provision for Non-life Insurance Claims
This provision encompasses claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). As at 31 December 2016, the provision for non-life insurance claims totalled CZK 15.63 billion, down by CZK 0.56 billion on the previous year.
Provision for Unearned Non-life Insurance Premiums
The total amount of provisions for unearned premiums rose by CZK 0.29 billion year on year to stand at CZK 4.83 billion as at 31 December 2016.
Receivables and Payables
Receivables rose by a modest CZK 0.2 billion year on year, amounting to CZK 6.3 billion as at 31 December 2016. There was a slight year-on-year change in payables, which stood at CZK 7.7 billion as at 31 December 2016.
3 – 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 freedom-of-services business