insurance agent – commercial undertaking conducting agency activity pursuant to an agreement executed with an insurance undertaking. The activity of agents focuses on acquiring customers, entering into insurance contracts, participating in the administration and performance of insurance agreements and organizing and supervising agency activity
assurbanking – distribution of banking products by insurance companies
bancassurance – distribution of insurance products by banks
business banking – a segment of Bank Pekao’s and Alior Bank’s operations that includes services for corporate clients, including business loans and financial services
retail banking – a segment of Bank Pekao’s and Alior Bank’s operations aimed at retail clients (natural persons), including consumer loans, personal accounts, deposits, among others
BEL – Best Estimate Liability under insurance contracts, i.e., the amount required to ensure payment of services and benefits to insureds according to best estimates, i.e., when everything happens according to predictions (best estimate assumptions)
OSH (Occupational Safety and Health) – a set of rules for the safe and hygienic performance of work
biodiversity – the biodiversity of species and ecosystems. In the EU taxonomy, it appears as one of the environmental areas covered by the “do no significant harm” (DNSH) principle
insurance broker – entity holding a permit to conduct brokerage activity. Performs activities on behalf or in favor of an entity seeking insurance cover
CAPEX (Capital Expenditures) – capital expenditures incurred for the purchase or improvement of fixed assets
CERs (Certified Emission Reduction) – CO2 offset units issued under the Clean Development Mechanism (CDM), established by the Kyoto Protocol. Each CER corresponds to a reduction of one ton of CO2 equivalent and can be used to offset emissions in emissions trading schemes
Co2e (Carbon Dioxide Equivalent) – a measure of total greenhouse gas emissions converted to CO2
coverage units – coverage units of insurance services used to determine contractual service margin (CSM) amortization schemes
CRM (Customer Relationship Management) – an approach and set of tools and technologies for customer relationship management
cross-selling, x-selling – sales strategy for selling an insurance product in combination with a complementary insurance product or an insurer’s partner’s product, e.g. a bank’s product. Bancassurance products such as credit insurance may serve as an example
CSM – contractual service margin, a component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity will recognize as it provides insurance contract services. Changes in actuarial assumptions recognized over time are passed through the CSM
CSR (Corporate Social Responsibility) – the concept under which companies voluntarily integrate social, environmental and ethical aspects into their operations and stakeholder relationships
CSRD (Corporate Sustainability Reporting Directive) – Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 expanding and making more detailed reporting of non-financial information (ESG) by companies Transposed into national law and published in the Official Journal of Laws on 17 December 2024
P/BV (Price to Book Value) – indicator specifying the ratio of the market price to the book value per share
P/E (Price to Earnings) – indicator specifying the ratio of the company’s market price (per share) to earnings per share
DNSH (Do No Significant Harm) – a principle being a requirement of the EU Taxonomy that activities deemed sustainable in one area (e.g., climate change mitigation) must not at the same time seriously harm other environmental objectives (e.g., biodiversity, water resources)
DORA (Digital Operational Resilience Act) – Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022, requiring the implementation of IT risk management systems, resilience testing and reporting of cyber incidents
DPS (Dividend Per Share) – market multiple specifying the dividend per share
DY (Dividend Yield) – market multiple specifying the ratio of the dividend per share to the market share price
Taxonomy-eligible activities – a type of economic activities that falls within the scope of industries or sectors covered by the European Union Taxonomy
Taxonomy non-eligible activities – any economic activities not listed in the delegated acts of the EU Taxonomy or conducted outside the geographical area covered by the reporting requirements
ECB – European Central Bank
EIOPA – European Insurance and Occupational Pensions Authority, an authority which issues guidelines for climate risk management in insurance
EPS (Earnings Per Share) – market multiple specifying earnings per share
ESG (Environmental, Social, Governance) – sustainability factors relating to environmental, social and governance-related issues
ESRS – European Sustainability Reporting Standards developed for CSRD purposes
financed emissions – greenhouse gas (GHG) emissions attributable to a financial institution (e.g., bank, insurer) from financing, investing in or insuring the issuer’s activities. Category 15 per PCAF
FOB – Forum for Responsible Business
Green Asset Ratio (GAR) – a ratio that shows what percentage of a financial institution’s assets complies with sustainability criteria. In other words, it measures the extent to which banks and other financial intermediaries finance environmentally friendly projects and activities according to the EU Taxonomy
GHG (Greenhouse Gas) – a gas belonging to the group of atmospheric gases whose infrared radiation absorption and emission properties contribute to the greenhouse effect
GHG Protocol – Greenhouse Gas Protocol
GIR (Green Investment Ratio) – the ratio of the value of investments (assets) of an insurance company or other financial institution dedicated to activities considered environmentally sustainable (in line with the EU Taxonomy) to the total value of assets under analysis
GMM – General Measurement Model, the default model of IFRS 17, in which insurance liabilities are calculated as the sum of discounted estimated future cash flows (BEL), non-financial risk adjustments and CSM
circular economy – a concept that involves minimizing waste generation, reusing raw materials and recycling
WSE – Warsaw Stock Exchange;
greenwashing – the practice of misleading customers by presenting an activity or product as more environmentally friendly than it really is
GUR (Green Underwriting Ratio) – a green insurance indicator which shows the share of sustainable insurance products (compliant with the EU Taxonomy) in the total revenues or premiums of an insurance company
GWP (Gross Written Premium) – the total amount of premiums from insurance policies issued by an insurer during a specified period It accounts for the full value of these premiums before deducting reinsurance costs, reimbursements and other deductions
time horizon – the timeframe over which a given risk or impact is significant
IDD – Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (Insurance Distribution Directive)
IMGW – Institute of Meteorology and Water Management
emission intensity – an indicator showing the amount of greenhouse gases emitted per unit of production, energy or other indicator of economic activity
waste generation intensity – an indicator showing the amount of waste emitted per unit of production or other indicator of economic activity
IPO (Initial Public Offering) – public offering of specific securities performed for the first time. One of the most important elements of an initial public offering is the preparation of a prospectus and the proceeding before the institution supervising admission to be traded publicly
ISO (International Organization for Standardization) – an international standards organization which develops and publishes technical, quality, safety and management standards
IT (Information Technology) – information technology involving the processing, storage, transmission and management of data by means of computer systems, software and ICT networks
Civil Code – Act of 23 April 1964 entitled Civil Code
KID (Key Information Document) – a document containing key information about an investment or insurance product
KNF (Polish Financial Supervision Authority) – the supervisory authority responsible for the financial market in Poland
KPI (Key Performance Indicator) – a measure used to assess the achievement of strategic (financial, climate, social) goals
Baltic Countries – Lithuania (LD, PZU LT GD), Latvia (Balta), Estonia (LD branch)
Commercial Company Code – Act of 15 September 2000 entitled Commercial Company Code
LRC – Liability for Remaining Coverage
risk materialization – the process by which an anticipated risk turns into an actual event
minimum safeguards – a principle derived from the EU Taxonomy (Article 18 of Regulation 2020/852). Includes procedures used by companies to ensure that their operations comply with international standards for responsible business conduct
initial recognition (IR) – the date of first recognition of an insurance contract
ILO – International Labor Organization
SMEs – Small and Medium Enterprises
climate neutrality – a state in which activities do not contribute (on a net basis) to an increase in greenhouse gas concentrations. This is the term used to describe the equilibrium (zero balance) between greenhouse gases emitted and their storage or absorption
nondistinct investment component (NDIC) – represents the portion of the benefit payable to the insured that will always be paid to the insured regardless of whether an insured event occurs
NPS (Net Promoter Score) – an indicator of customer satisfaction and loyalty
dual materiality assessment – a concept used in nonfinancial reporting (CSRD) which accounts for both the impact of ESG factors on a company’s financial profit or loss (financial materiality) and the impact of its activities on the environment and society (impact materiality)
OECD – Organisation for Economic Co-operation and Development
OPEX – Operating expenses that are charged to the profit and loss account
ORSA (Own Risk and Solvency Assessment) – an internal risk and solvency assessment process at insurance companies. It includes, among other things, stress testing and analysis of the impact of climate risks on the insurer’s financial standing
sustainability statement – obligation to disclose data on the environment, social issues, governance, among others, in accordance with new European standards (ESRS) under the CSRD
RES (Renewable Energy Sources) – energy obtained from natural and constantly renewed sources, such as the sun, wind, water, biomass or geothermal energy
PAA – Premium Allocation Approach, a simplified approach, where the measurement of the liability for remaining insurance cover is analogous with the unearned premiums mechanism according to IFRS 4 (without a separate presentation of risk adjustment for non-financial risk or contractual service margin), whereas liabilities for paid claims are measured in the same manner as for the general measurement model. The PAA method is applied to short-term contracts that meet the relevant eligibility criteria at initial recognition
PCAF (Partnership for Carbon Accounting Financials) – an initiative creating standards for calculating greenhouse gas emissions attributable to financial institutions in connection with their financing (so-called financed emissions)
Tax Group – PZU Tax Group – on 10 November 2023, a Tax Group agreement was signed, covering 14 companies: PZU, PZU Życie, LINK4, PZU CO, PZU Pomoc SA, Ogrodowa-Inwestycje sp. z o.o., PZU Zdrowie SA, Tulare Investments sp. z o.o., TFI PZU, Ipsilon sp. z o.o., PZU Finanse sp. z o.o., PZU LAB SA, Omicron Bis SA, PZU Projekt 01 SA. The Tax Group was established for a period of 3 years – from 1 January 2024 to 31 December 2026 – and the Head of the First Mazowiecki Tax Office issued a registration decision on 13 December 2023. PZU is the parent company representing the Tax Group. The Tax Group performs settlements with the Tax Office on a monthly basis. PZU pays advances for corporate income tax that are due from all the companies to the Tax Office, while the companies transfer the CIT advances related to their business activities to PZU
PIU – Polish Insurance Association;
transformation plan – a strategic document that defines the goals and actions necessary to transform the business model towards sustainable development (e.g. in decarbonization, energy efficiency, climate change adaptation) in accordance with the guidelines found in the CSRD
ECSs – Employee Capital Schemes defined by the provisions of the Act of 4 October 2018 on Employee Capital Schemes
PRIIP – Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No. 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products
gross insurance revenue – this is the remuneration expected to be received by the entity in exchange for insurance services provided during the period. In the GMM or VFA model, it includes the contractual service margin solution (CSM) in the amount of the contract profit attributable to the period, the release of the adjustment for non-financial risks during the period, the compensation, benefits and expenses expected during the period, and the portion of the premium associated with the recovery of acquisition costs, and the PAA simplified model includes the amortization of liabilities for remaining coverage
Insurance Finance Income or Expenses (IFIE) – the effect of time value of money and financial risks and their changes recognized partly in the profit and loss account and partly in other comprehensive income
adjustment for non-financial risk (RA) – compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the entity fulfills insurance contracts
reinsurance – transfer to some other insurance company – the reinsurer – of all or part of the insured risk or class of risks along with the pertinent portion of the premiums. As a result of reinsurance, a secondary split of risks transpires to minimize the risks to the insurance market
outward reinsurance – reinsurance activity whereby the insurer (assignor) transfers a portion of the concluded insurance to a reinsurer or reinsurers in the form of a reinsurance agreement
inward reinsurance – reinsurance activity whereby a reinsurer or reinsurers accept a portion of insurance or a class of insurance transferred by an assignor
technical provisions (PSR) – provisions that should ensure full coverage of current and future liabilities that may result from executed insurance contracts. The following, in particular, are included in technical provisions: provision for unearned premiums, provision for life insurance, provision for outstanding claims and benefits, provision for unexpired risks, provision for investment risk borne by policyholders and provision for bonuses and discounts for insureds.
GDPR – Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC
Delegated Regulation (EU) 2020/852 (Taxonomy Regulation) – Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088;
Delegated Regulation (EU) 2021/2139 (Climate Delegated Act) – Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives
Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act) – Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation
CRR – Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (Capital Requirements Regulation)
Regulation on Current and Periodic Information – Finance Minister’s Regulation of 29 March 2018 on Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a NonMember State as Equivalent (Journal of Laws of 2018, item 757).
physical risk – risk arising from the physical effects of climate change (e.g., floods, droughts, hurricanes), which may affect assets, operations and financial results
transition risk – the risk associated with the transition to a low-emissions economy, including, among other things, regulatory, technological or social changes that may affect the valuation of high-emission assets and business models
credit scoring – method for assessing the credibility of an entity (usually a natural person or a business) applying for a bank loan. The result of credit scoring is ordinarily presented in the form of a score – the higher the number of points, the greater the credibility of a prospective borrower
sell-side – part of the financial sector involved in creating, promoting and selling equities, bonds, foreign currencies and other financial instruments; it includes investment bankers who act as intermediaries between securities issuers and investors as well as market makers who provide liquidity on the market. Sell-side analysts release research reports with investment recommendations and daily comments for the buy side, i.e. for asset managers
gross written premium – the amounts of gross written premiums (net of the reinsurer’s share) due by virtue of the insurance contracts executed in the reporting period, notwithstanding the term of liability stemming from these agreements
net earned premium – the gross written premium in a given period giving consideration to the settlement of revenues (premiums) over time through movement in the provisions for unearned premiums and the reinsurers’ share
Consolidated financial statements – consolidated financial statements of the PZU Group prepared in accordance with IFRS for the year ended 31 December 2025
spread – the difference between the purchase and sale price of a financial instrument
SPV – Special Purpose Vehicle established to implement an investment project
locked-in interest rates – interest rates at initial recognition
risk-free rate – rate of return on financial instruments with zero risk. In PZU the risk-free rate is based on the yield curves for treasuries and it is the basis for determining transfer prices in settlements between operating segments
sum insured – amount in cash for which an insured object is insured. In non-life insurance the sum insured ordinarily constitutes the upper limit of the insurer’s liability
carbon footprint – the total value of emissions of greenhouse gases associated with an organization’s activities
EU Taxonomy – Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088, which defines criteria for considering economic activities as environmentally sustainable, aimed at facilitating sustainable investment and supporting the transition to a low-emissions economy
TCFD (Task Force on Climate-related Financial Disclosures) – a global initiative established by the Financial Stability Board (FSB) in 2015. Its goal is to develop and promote standards for the disclosure of financial information related to risks and opportunities arising from climate change
Stress testing – analysis of a financial institution’s vulnerability to strong, adverse but probable events (e.g., natural disasters, economic crises), performed under ORSA and climate scenarios
Transition – date of transition to valuation in accordance with IFRS 17 standard, i.e. 1 January 2022
Total Shareholder Return (TSR) – measure specifying the total rate of return obtained by shareholders by virtue of holding shares in a given company during an annual period. This measure expresses the sum total of profit stemming from the movement in the share price of a given company and the dividends paid during the time when an investor holds its shares in relation to its share value at the beginning of a given year. It is expressed as a percentage on an annualized basis
unit-linked – Unit-linked insurance fund, a separate fund consisting of assets constituting a provision consisting of insurance premiums invested in the manner specified in the insurance agreement, a constituent part of unit-linked life insurance also referred to as an investment policy
UNGC – United Nations Global Compact
underwriting (insurance risk assessment) – the process of identifying, analyzing and evaluating the risks submitted by a corporate client for insurance, leading to the decision to accept the risk, set the terms of coverage and conclude an insurance policy
UoA (Unit of Account) – a unit of account, the lowest level at which valuation under IFRS 17 is conducted, only at this level compensation of profit and loss of insurance contracts is allowed
Act on Statutory Auditors – Act of 11 May 2017 on Statutory Auditors, Audit Firms and Public Supervision (Journal of Laws of 2017, Item 1089, as amended)
UOKiK – Office of Competition and Consumer Protection, the Polish anti-trust authority, acting to ensure the development of competition, protect businesses exposed to monopolistic practices and protect consumer interests, www.uokik.gov.pl
Insurance Activity Act – Act of 11 September 2015 on Insurance and Reinsurance Activity (Journal of Laws of 2015, item 1844), with most regulations in force as of 1 January 2016. This Act introduced Solvency II requirements to the Polish legal system
release of non-financial risk adjustment (RA) presented in profit or loss – compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from nonfinancial risks as the entity fulfills insurance contracts
release of the contractual service margin (CSM) – contractual service margin release presented in profit or loss – contractual service margin (CSM) is released in the current period based on the proportion of the total insurance service provided in the period
UX (User Experience) – area related to the experiences of users of the respective tool (or, more broadly, of a process, or interacting with the brand in general). It is associated directly with web usability, which is an empirical field of knowledge dealing with the design and testing of tools (in this case: online tools) in consideration of the needs and preferences of target users. In the context of websites, it involves broadly construed usefulness and effectiveness in attaining specific goals
VFA – Variable Fee Approach, method based on the building block approach, applied for contracts with direct participating features, where changes in economic assumptions passes through CSM over the life of contract, method applied e.g. for Unit-Linked contracts
WIBOR6M – reference interest rate for a loan for 6 months on the Polish interbank market
Solvency II – solvency system for European insurance undertakings taking the risk profile into account. These requirements have been in force since 1 January 2016
OECD Guidelines – OECD Guidelines for Multinational Enterprises
UN Guiding Principles – UN Guiding Principles on Business and Human Rights
prudent person principle – principle expressed in article 129 of the Solvency II Directive of the European Parliament and of the Council on the Taking-up and Pursuit of the Business of Insurance and Reinsurance that imposes on insurance undertakings and reinsurance undertakings the requirement of investing assets in the policyholders’ best interest, properly matching investments to liabilities and duly incorporating the various types of financial risk, such as liquidity risk and concentration risk
ZBP – Union of Polish Banks
liability (or asset) for insurance contracts – replaces in IFRS 17 the existing technical provisions and other balance sheet contributions related to the valuation of insurance contracts. It consists of the Liability for Remaining Coverage and Liability for Incurred Claims)
sustainable finance – a term referring to the consideration of ESG factors in financial decisions (loans, investments, insurance) to support climate and energy transition, environmental protection and social development
