2015 annual report - kuke.com.pl · kuke finance s.a. | 2015 annual report 7 on 22 december 2014,...
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2015 AnnuAl RepoRt
2 2015 AnnuAl RepoRt
letteR FRoM the pResident oF the MAnAgeMent BoARd
MAcRoeconoMic conditions in 2015
doMestic deMAnd
eXpoRt
doMestic MARket
oRgAnisAtion
shAReholdeRs And shARe cApitAl
MAnAgeMent BoARd
supeRvisoRy BoARd
kuke FinAnce s.A.
peRFoRMAnce oF kuke s.A.in specific business areas
geneRAl Results
geogRAphic stRuctuRe
AgReeMents
Activities oF kuke s.A. under the insurance act of 22 May 2003
(coMMercial activities)
shoRt-teRM eXpoRt And doMestic cRedit insuRAnce
Bonds
Activities oF kuke s.A. under the act on export insurance backed
by the state treasury of 7 July 1994
FinAnciAl Results
AnAlysis oF the BAlAnce sheet
Assets
equity And liABilities
AnAlysis oF technicAl insuRAnce Account And oveRAll pRoFit And loss Account
dAtA tABles
Assets
equity And liABilities
technicAl Account oF pRopeRty And cAsuAlty insuRAnce
geneRAl pRoFit And loss Account
stAteMent oF cAsh FloWs
solvency pARAMeteRs
tABle oF contents
32015 AnnuAl RepoRt
Dear Sirs and Madams,
It is my great pleasure to present to you the Annual Report
of the Export Credit Insurance Corporation Joint Stock
Company (KUKE S.A.), where you will find the effects of
our work and the results we have achieved in 2015.
As a Polish company and a national insurer of receiva-
bles, we have been supporting the effective trade ex-
change of entrepreneurs on both foreign and domestic
markets for 25 years now. Our insurance facilities meet
the highest international standards while the compre-
hensiveness of our offer is comparable with that of other
export credit agencies around the world.
Summing up 2015, let me mention that the Export Credit
Insurance Corporation has been recognised as an im-
portant pillar of the system of support of Polish exports
under the government Plan for Responsible Develop-
ment, the most important elements of which are being
intensively implemented as of 2016.
Thus, KUKE has ambitious plans to become an effective
business partner of all Polish enterprises, irrespective of
their size and capital possibilities, whose acquisition tar-
gets extend beyond the frontiers of our country.
Yours faithfully,
Marek Czerski
President of the Management Board of kuke s.a.
4 2015 AnnuAl RepoRt | MacroeconoMic conditions in 2015
MAcRoeconoMic conditions in 2015
The growth in 2015 was mainly driven, similarly to 2014, by do-
mestic demand. This time, however, the impact of turnover with
abroad was also positive. Although it was not that significant as
in 2013, it differed substantially from the results of 2014, when
the balance of turnover with abroad materially deteriorated
GDP growth.
The high growth of domestic demand in 2015 derived from
increased consumption (in the household and public sectors)
and accumulation (including gross expenses for fixed assets
and a change in inventories). As regards consumption, the
significant re-improvement of financial standing of households
was particularly important because headcount and real value of
wages and salaries increased. Expenses for public consump-
tion were also increasing in a dynamic way, although slightly
less intensively than in the previous year. Expenses connected
with investment processes were also high. They were higher in
the first six months of the year and turned up less dynamic in
the second part. Similarly to the previous year, projects related
to the modernisation and expansion of production facilities
of enterprises played a special role. The scale of growth was
diminished by a decline in inventories, which was particularly
intensive at the beginning of the year.
Despite of high consumer demand, the rate of growth of import
decreased visibly because of a reduced growth of investments
and a drop in inventories. In turn, export was increasing at a rate
similar to that recorded in 2014.
In 2015, the rate of economic growth in Poland was 3.6% in comparison with
3.3% in 2014 and 1.3% in 2013. The rate of growth in particular quarters was
similar and clearly exceeded 3%. Thus, for two years in a row, enterprises
were operating in the environment of quite fast increasing demand, which
had a positive impact on the financial standing of their business partners.
doMestic deMAnd
5MacroeconoMic conditions in 2015 | 2015 AnnuAl RepoRt
Situation in the domestic market remained good. Consumer
and business sentiment was improving. This was substantially
influenced by in-depth moderation of the monetary policy since
autumn 2012, which was additionally strengthened with a cor-
rection of interest rates in autumn 2014 and spring 2015. An
easier and cheaper access to loans for enterprises favoured
a return to investment planning, but mainly contributed to an
improvement in liquidity and a reduction in financing expenses.
Households also felt an improvement in access to financing,
which additionally strengthened consumer demand.
As a consequence, the rate of economic growth of Poland in
subsequent quarters was high (respectively from 3.7% through
3.3% and 3.5% to 3.9%). In the whole year of 2015, it was 3.6% and
was by 3.3% greater than in 2014.
An improvement in economic situation for the second year in a
row contributed to a further drop in corporate bankruptcies in
Poland. In 2015, 737 bankruptcies were recorded in comparison
with 818 in 2014. In the same time, the intensity of bankruptcies
of commercial companies dropped from 1.15% as at the end of
2014 to 1.05% as at the end of 2015.
7.8%total GroWth of polish exports
10.3%GroWth of exports to countries of the eu
3.6% rate of econoMic GroWth
As regards export, sales to EU states improved. Foreign ex-
change rates had a special impact on 2015 results. EUR/USD
rate turned up to be much smaller than in summer 2014. As a
consequence, goods produced in EU states started being very
competitive in terms of prices in relation to goods produced
in other countries of the world. This improved export from the
EU, including the euro zone, as well as demand for supplies
necessary for production and consumer goods (bought by per-
sons employed in export industries). In the same time, goods
produced in Poland turned up to be more competitive in terms
of prices than goods produced in countries whose currencies
are correlated with the dollar (e.g. far east countries). The rate
of growth of sales to other developed markets was relatively
small. But sales to developing countries in 2015 were very
good. The growth turned up to be much greater than in the pre-
vious year. Export decline was recorded again in terms of sales
to countries of Central and Eastern Europe. This was an effect
of strongly limited demand as a result of tense economic and
political relationships between Kiev and Moscow. This stemmed
from a significant decrease in purchasing power of customers.
In the case of Ukraine, military actions constituted an essential
factor. A drop of sales to Russia also resulted from an embargo
enforced on our foodstuff.
Preliminary statistics based on customs reporting kept in euro
indicate that Polish export in 2015 grew by 7.8%. Export of goods
to the euro zone countries increased by 10.1% and mainly result-
ed from a progress in sales to Germany (11.2%), Italy (13.2%) and
the Netherlands (14.4%). The scale of growth of export calcu-
lated for all EU countries was better and constituted 10.3%. Sales
to non-euro zone countries, e.g. the UK (14.4%), the Czech Re-
public (10.1%) and Hungary (8.3%) improved. Export to countries
of Central and Eastern Europe decreased by 21.1%. In the case
of developing countries, the growth was estimated at 12.6%. In
2015, export to other developed countries grew by 3.9%.
eXpoRt doMestic MARket
6 2015 AnnuAl RepoRt | orGanisation
oRgAnisAtion
shAReholdeRs And shARe cApitAl
The structure of the share capital as at 31 December 2015 was
as follows:
shAReholdeR
nuMBeR oF
shARes
pAR vAlue
oF shARes
(pln) shARe (%)
State Treasury represented by the Minister of Finance 700,828 70,082,800 63.31
Bank Gospodarstwa Krajowego bp 406,201 40,620,100 36.69
totAl 1,107,029 110,702,900 100.00
supeRvisoRy BoARd
From 1 January 2015 to 21 December 2015, the Supervisory
Board of KUKE S.A. was composed of:
☐ Wojciech Rząsiecki – Chairman
☐ Michał Gruba – Vice-Chairman
☐ Ryszard Frączek
☐ Michał Kempa
☐ Katarzyna Przewalska
☐ Maria Szymańska
☐ Arkadiusz Zabłoński
☐ Jacek Zieliński
On 21 December 2015, Ryszard Frączek filed his resignation
from the Supervisory Board of KUKE S.A.
As at 31 December 2015, the Supervisory Board of KUKE S.A.
was composed of:
☐ Wojciech Rząsiecki – Chairman
☐ Michał Gruba – Vice-Chairman
☐ Michał Kempa
☐ Katarzyna Przewalska
☐ Maria Szymańska
☐ Arkadiusz Zabłoński
☐ Jacek Zieliński
MAnAgeMent BoARd
From 1 January 2015 to 8 December 2015, the Management
Board of KUKE S.A. was composed of:
☐ Dariusz Poniewierka – President of the Management Board
☐ Piotr Stolarczyk – Vice-President of the Management Board
☐ Aleksandra Hanzel – Vice-President of the Management Board
On 8 December 2015, Aleksandra Hanzel filed her resignation
from the Management Board of KUKE S.A.
Therefore, as at 31 December 2015, the Management Board of
KUKE S.A. was composed of:
☐ Dariusz Poniewierka – President of the Management Board
☐ Piotr Stolarczyk – Vice-President of the Management Board
As at 31 December 2015, the share capital of KUKE S.A. amount-
ed to PLN 110,702,900 and was divided into 1,107,029 registered
ordinary shares of a par value of PLN 100 each. The share capi-
tal was paid in full.
7kuke finance s.a. | 2015 AnnuAl RepoRt
On 22 December 2014, the Extraordinary Meeting of Sharehold-
ers of KUKE S.A. adopted a resolution on increasing the share
capital of KUKE Finance S.A. by PLN 10,300,000.00, i.e. to PLN
25,000,000.00, through the issue of 103,000 new registered
shares of C class of a par value of PLN 100 each. The share
capital was increased through closed subscription in accord-
ance with Art. 431 § 2.2 of the Code of Commercial Compa-
nies, and the shares were offered to KUKE S.A., which held a
pre-emptive right.
The share capital was paid in full on 12 January 2015. On 20
January 2015, the District Court for the capital city of Warsaw,
12ʰ Commercial Division of the National Court Register, regis-
tered the increase in the share capital of KUKE Finance S.A. As
a result, the share capital of KUKE Finance S.A. increased from
PLN 14,700,000 to PLN 25,000,000. The share capital was paid
in full.
At present, KUKE S.A. owns 250,000 registered shares of KUKE
Finance S.A. in total, i.e. 100% of the share capital of its sub-
sidiary. The company commenced its operating activities in
November 2014.
kuke FinAnce s.A.
The core activity of KUKE Finance S.A. covers financing foreign and domes-
tic receivables through all forms of factoring that are available in the market,
particularly within the framework of non-recourse factoring i.e. where the
factor assumes the risk of non-payment by his client’s buyer.
8 2015 AnnuAl RepoRt | perforMance of kuke s.a.
peRFoRMAnce oF kuke s.A.iN SPEcific bUSiNESS AREAS
geneRAl Results
In 2015, KUKE S.A. insured a total turnover of PLN 30,721.91 mil-
lion, i.e. by 1.7% less than in the previous year.
31,670.3
28,884.9
30,018.8
31,245.0
30,721.9
In 2015, insured export turnover dropped by 5.3% in comparison
with 2014. Insured export turnover amounted to PLN 12,901.89
million, including PLN 9,847.69 million of commercial export in-
surances (growth of the volume by 1.5%) and PLN 3,054.20 mil-
lion of export insurances backed by the State Treasury (drop of
the volume by 21.9%).
Under the insurance of short-term domestic receivables and
commercial bonds, KUKE S.A. covered transactions of PLN
17,820.02 million, which means a 1.1% growth in comparison
with 2014.
vAlue oF insuRed eXpoRt And doMestic tuRnoveR
in pln Million (All insuRAnce FAcilities)
30.7 billionvalue of insured turnover (pln)
2,390active insurance policies and bonds
12 billionexposure (pln)
2011
2012
2013
2014
2015
9perforMance of kuke s.a. | 2015 AnnuAl RepoRt
30.7 billionvalue of insured turnover (pln)
geogRAphic stRuctuRe
AgReeMents
geogRAphicAl stRuctuRe oF insuRed eXpoRt
tuRnoveR (All insuRAnce FAcilities)
Germany
Russia
Czech Republic
Canada
UK
Belarus
Switzerland
Netherlands
Lithuania
Italy
Others
The geographic structure of export turnover covered by KUKE
was dominated by Germany (21.3%), Russia (8.3%) and the Czech
Republic (5.7%), similarly to 2014. The share of EU countries was
65.9% (64.8% in 2014) and the share of ciS countries was 16.6%
(21.2% in 2014).
In 2015, KUKE S.A. concluded 1,114 new insurance agreements
and bond agreements, including 768 in terms of commercial ac-
tivities and 346 in terms of activities backed by the State Treas-
ury. In addition, 1,231 policies from previous years were renewed
(421 in terms of commercial activities and 810 in terms of activi-
ties backed by the State Treasury). In 2015, 2,345 policies were
signed and renewed in total, i.e. by 12.88% more than in 2014.
As at the end of 2015, there were 2,390 active policies, which
meant an increase by 13.3% in comparison with the previous
year (1,096 in terms of commercial activities: 21.5% growth
and 1,294 in terms of activities backed by the State Treasury:
7.2% growth).
1,848
1,960
2,057
2,109
2,390
nuMBeR oF Active insuRAnce policies And Bonds
issued (All insuRAnce FAcilities)
21.3%
8.3%
5.7%
4.7%
4.0%3.9%3.5%3.4%
3.4%
38.4%
3.3%
2011
2012
2013
2014
2015
10 2015 AnnuAl RepoRt | activit ies of kuke s.a.
shoRt-teRM eXpoRt And doMestic cRedit insuRAnce
Bonds
In 2015, within the 14ʰ insurance class, KUKE S.A. insured
short-term export and domestic receivables of PLN 27,312.52
million in total (by 0.06% more than in 2014).
Gross premium written under the insurance of short-term export
and domestic receivables was PLN 43.06 million, which means
that it decreased by 8.0% in comparison with 2014.
In 2015, KUKE S.A. issued 590 bonds for a total amount of PLN
355.2 million. In comparison with 2014, the total value of bonds
increased by 84.0%.
In the reporting year, the remuneration of KUKE S.A. for bonds
issued amounted to PLN 5.66 million, i.e. by 26.2% more than
in 2014.
Activities oF kuke s.A. UNDER thE iNSURANcE Act of 22 MAy 2003
(coMMERciAL ActivitiES)
27.3 billionvalue of insured short-terM receivables (pln)
590bonds issued
355.2 million value of bonds issued (pln)
11activit ies of kuke s.a. | 2015 AnnuAl RepoRt
In 2015, the total value of export contracts covered under me-
dium- and long-term export credit insurance facilities (credits
with repayment terms of two and more years) amounted to
PLN 861.57 million, including PLN 1.32 million due to increasing
amendments to insurance contracts of 2008, 2013 and 2014.
KUKE S.A. entered into 16 insurance agreements covering 18 ex-
port contracts worth PLN 930.52 million.
Within the framework of the Government Export Support Pro-
gram in 2015 KUKE S.A. concluded 6 insurance agreements for a
total sum of PLN 250.40 million.
During the reporting period premium written under medium-
and long-term export credit insurance amounted to PLN 28.32
million. As loans insured under 4 insurance contracts from pre-
vious years were repaid before their maturity, KUKE S.A. made
premium refunds in the amount of PLN 11.70 million in total. Pre-
mium written under medium- and long-term export credit insur-
ance deducted by the above amount came to PLN 16.62 million.
In 2015, as part of its state backed insurance activities, KUKE S.A.
issued 208 bonds for a total value of PLN 231.93 million. This
included 13 contract bonds for a total of PLN 32.54 million and
195 bonds concerning letters of credit amounting to PLN 199.40
million. Remuneration for bonds issued and the extension of the
terms of bonds granted in previous years was PLN 4.70 million.
In 2015, 119 turnover policies and 3 individual policies were
signed under short-term export credit insurance backed by the
State Treasury (credit terms of less than two years). 810 policies
were renewed. As at the end of the year, there were 924 active
policies, i.e. 10.9% more than in the previous year.
Total insured turnover amounted to PLN 1.96 billion, i.e. 29.4%
less than in 2014.
Premium written signed under short-term export credit insur-
ance backed by the State Treasury amounted to PLN 16.41
million.
In 2015, KUKE S.A. paid out 76 indemnities for a total amount of
PLN 145.88 million, including:
☐ 72 indemnities concerning short-term export credit insur-
ance amounting to PLN 15.20 million;
☐ 4 indemnities concerning medium- and long-term export
credit insurance amounting to PLN 130.68 million.
No indemnities were paid and no payments were made under
remaining insurance facilities backed by the State Treasury.
During that period, within the framework of its Treasury-backed
export business, KUKE was able to recover in the process of
subrogation the total amount of PLN 0.93 million, of which 0.36
million pertained to short-term contracts and 0.58 million con-
cerned medium- and long-term insurance.
Activities oF kuke s.A. UNDER thE Act oN ExPoRt iNSURANcE bAcKED
by thE StAtE tREASURy of 7 JULy 1994
12 2015 AnnuAl RepoRt | financial results
In the financial year 2015, KUKE S.A. changed its accounting principles and
started to settle in time the reinsurance commission within the 15ʰ insur-
ance class. To provide for the comparability of data in the income state-
ment and balance sheet for 2014, a deferred reinsurance commission within
the 15ʰ insurance class had to be calculated as at 31 December 2014 and
31 December 2013.
Assets
In 2015, intangibles increased from PLN 0.63 million in 2014 to
PLN 0.51 million.
Investments constituted 69.5% of the balance sheet total. In
comparison with the end of 2014, they increased by 1.6% and
reached PLN 237.56 million as at 31 December 2015.
Receivables as at the end of 2015 were PLN 38.27 million and
constituted 11.2% of total assets. In comparison with 2014, re-
ceivables increased by 5.5%, including:
☐ receivables under direct insurances (mainly premium settle-
ments) decreased by 2.3% from PLN 21.62 million in 2014 to
PLN 21.12 million in 2015;
☐ reinsurance receivables grew by 1.4% from PLN 12.87 million
in 2014 to PLN 13.05 million in 2015;
☐ other receivables grew by 127.0% from PLN 1.81 million in
2014 to PLN 4.11 million in 2015; their growth resulted from
settlements connected with a commission charged by KUKE
S.A. for insurances backed by the State Treasury.
Other assets as at 31 December 2015 amounted to PLN 60.68
million and were 40.2% smaller than as at 31 December 2014.
Funds deposited on a separate bank account for insurance
business backed by the State Treasury which is used to carry
out settlements regarding activities entrusted to KUKE S.A. on
the basis of the Act on Export Insurances Backed by the State
Treasury of 7 July 1994 constituted 90.5% of the above amount,
i.e. PLN 54.93 million.
FinAnciAl Results
AnAlysis oF the BAlAnce sheet
KUKE S.A.’s balance sheet total as at the end of 2015 was PLN
341.66 million and was 9.2% smaller than as at the end of 2014.
The drop in the balance sheet total resulted mainly from a de-
crease in funds deposited on a separate bank account for insur-
ance business backed by the State Treasury (by 44.0%, i.e. PLN
43.24 million), which is used to carry out settlements regarding
activities entrusted to KUKE S.A. on the basis of the Act on Export
Insurances Backed by the State Treasury of 7 July 1994.
13financial results | 2015 AnnuAl RepoRt
KUKE S.A.‘s equity as at the end of 2015 was PLN 204.27 million
and was 1.0% greater than as at the end of the previous year. The
equity constituted 59.8% of the balance-sheet total (2014: 53.8%).
As at 31 December 2015, liabilities and special funds dropped
by 33.2% in comparison with the previous year. Their constituted
24.0% of total equity and liabilities. As at the end of 2015, they
amounted to PLN 81.86 million, including funds deposited on a
separate bank account for insurance business backed by the
State Treasury which is used to carry out settlements regarding
activities entrusted to KUKE S.A. on the basis of the Act on Export
Insurances Backed by the State Treasury, which amounted to
PLN 54.93 million.
As at the end of the reporting period, technical and insurance
provisions (including reinsurers’ share and estimated recourses)
amounted to PLN 42.95 million, which means that they increased
by 4.8% in comparison with the end of 2014. They constituted
12.6% of total equity and liabilities.
The following table presents net provisions established in 2015.
1) including estimated recourses.
Differences in checksums result from roundings.
type oF pRovision
As At
31.12.2014
(pln Million)
2014
shARe
(%)
As At
31.12.2015
(pln Million)
2015
shARe
(%)
chAnge
2015/2014
(%)
Provision for unexpired risk 24.23 59.10 24.72 57.50 2.00
Provision for unpaid indemnities and benefits 1) 11.42 27.90 6.28 14.60 −45.10
Equalisation provision 1.71 4.20 9.23 21.50 439.80
Provision for bonuses and rebates
for the insured
3.63 8.90 2.74 6.40 −24.70
totAl 41.00 100.00 42.95 100.00 4.80
equity And liABilities
237.6 millioninvestMents (pln)
42.9 milliontechnical insurance provisions (pln)
81.9 millionother payables and special funds (pln)
204.3 millioneQuity (pln)
14
AnAlysis oF technicAl insuRAnce Account And oveRAll pRoFit And loss Account
In 2015, revenues from net premium earned (including a change
in the provision for unexpired risk) amounted to PLN 25.95 mil-
lion, i.e. 6.2% more (PLN 1.51 million) than in 2014. A gross pre-
mium written was PLN 48.72 million and decreased by 5.0%, i.e.
PLN 2.58, in comparison with 2014.
In 2015, indemnities and benefits paid net of reinsurance
amounted to PLN 10.64 and were 47.4% smaller than in 2014.
The provision for unpaid indemnities and benefits net of rein-
surance, including estimated recourses, dropped by PLN 5.15
million (similarly to 2014, when they dropped by PLN 8.14 million).
Costs of insurance operations (costs of administration and ac-
quisition and reinsurance commissions received) decreased
by 8.3% in comparison with 2014 and amounted to PLN 10.84
million. Costs of administration and acquisition increased in
comparison with 2014 by 1.4% to PLN 19.97 million. Revenues
from reinsurance commissions (which decrease the costs of in-
surance activity) increased by 15.9% in comparison with 2014 to
PLN 9.13 million.
Other revenues and technical expenses net of reinsurance
amounted to PLN 0.29 million.
Technical result before the establishment of the equalisation
provision was pln 9.92 million. Given its positive technical
result in the 14ʰ insurance class, KUKE S.A. released the equali-
sation provision of PLN 7.52 million. Ultimately, technical insur-
ance result in 2015 was pln 2.40 million in comparison with
the loss of PLN 1.62 million in 2014.
In 2015, the balance of investment income and expenses (cal-
culated as total income from investments, unrealised profits and
losses from investments and investment expenses) was PLN
4.42 million. It was by 31.9% smaller than in 2014. Result from
investments in 2015 was reduced by PLN 1.90 million by unreal-
ised loss from the shares of KUKE Finance S.A.
The balance of other operating income and expenses was neg-
ative and amounted to PLN −4.05 million, including the balance
of commissions and expenses connected with handling export
insurances backed by the State Treasury of PLN −4.03 million (in
comparison with PLN 1.15 million in 2014), and resulted from the
commission which was smaller than in 2014 and derived from
gross premium written under those insurances.
In 2015 KUKE S.A. recorded gross profit of PLN 2.77 in compari-
son with PLN 5.98 million in the previous year. Including current
and deferred income tax of PLN 0.39, the net profit stood at
pln 2.38 million (2014: PLN 5.04 million).
2.4 milliontechnical result (pln)
10.6 millionclaiMs and benefits paid (pln)
2.4 millionnet profit (pln)
2015 AnnuAl RepoRt | financial results
15
As at 31 December 2015, KUKE S.A. recorded a surplus of own
assets to cover the solvency margin and the compulsory guar-
antee capital by PLN 196.90 million and PLN 185.95 million
respectively.
Assets used to cover technical and insurance provisions
amounted to PLN 142.92 million and technical insurance provi-
sions amounted to PLN 66.21 million. As at the end of 2015, the
assets to technical insurance provisions coverage level stood
at 216%.
As at 31 December 2015, KUKE S.A. met all legally required pru-
dential standards for insurance activity.
For presentation purposes, negative items are marked with “-”.
selected iteMs oF the technicAl Account
And pRoFit And loss Account
2014
(pln Million)
2015
(pln Million)
Gross premiums 51.30 48.72
Net premiums 24.45 25.95
Claims and benefits −12.09 −5.49
Bonuses and rebates, net of reinsurance −1.24 0.01
Balance of other technical income and expenses 0.79 0.29
Costs of insurance operations −11.82 −10.84
Change in equalisation provision −1.71 −7.52
technicAl Result −1.62 2.40
Balance of investment income and expenses 6.49 4.42
Balance of other operating income and expenses 1.11 −4.05
gRoss pRoFit (loss) 5.98 2.77
Income tax −0.94 −0.39
net pRoFit (loss) 5.04 2.38
18.7
−8.3
4.1
5.0
2.4
net pRoFit/loss in pln Million
2011
2012
2013
2014
2015
financial results | 2015 AnnuAl RepoRt
16
(pln thousAnd) 31.12.2014 31.12.2015
Intangible assets 631 508
Investments 233 769 237 562
Investments in subordinated undertakings 13 114 46 560
Shares in subordinated undertakings 13 114 21 510
Loans to subordinated undertakings and debt securities
issued by those undertakings
0 25 050
Other financial investments 220 655 191 002
Other loans 0 0
Debt securities and other fixed income securities 196 166 171 687
Deposits with credit institutions 24 489 19 315
Receivables 36 293 38 274
Direct insurance receivables 21 618 21 119
Receivables from policyholders 21 249 20 769
Other receivables 369 350
Reinsurance receivables 12 866 13 049
Other receivables 1 809 4 106
Receivables from the State budget 71 842
Other receivables 1 738 3 264
Other assets 101 398 60 676
Tangible fixed assets 1 501 1 770
Cash and cash equivalents 99 897 58 906
incl.: cash on separate bank account for insurance business
guaranteed by the State Treasury
98 170 54 928
Deferred expenses and accrued income 4 131 4 639
Deferred tax assets 1 411 1 874
Deferred acquisition costs 2 291 2 401
Other deferred expenses and accrued income 429 364
totAl Assets 376 222 341 659
Assets(AFteR tRAnsFoRMAtion)
2015 AnnuAl RepoRt | financial results
17
(pln thousAnd) 31.12.2014 31.12.2015
Equity 202 316 204 272
Issued share capital 110 703 110 703
Reserve capital 53 171 58 417
Revaluation reserves 197 45
Other reserves 33 273 33 273
Profit (loss) brought forward −67 −549
Net profit (loss) 5 039 2 383
Technical insurance provisions 69 492 66 974
Premium reserve and unexpired risk reserve 41 680 42 094
Provision for outstanding claims 19 838 10 949
Provision for bonuses and rebates 6 265 4 705
Equalization provision 1 709 9 226
Reinsurers’ share in technical provisions 28 109 23 579
Reinsurers’ share in unearned premium reserve and unexpired risk reserve 17 448 17 379
Reinsurers’ share in provision for outstanding claims 8 030 4 232
Reinsurers’ share in provision for bonuses and rebates 2 631 1 969
Estimated salvages and subrogations 386 442
Estimated salvages and subrogations 682 762
Reinsurers’ share in estimated salvages and subrogations 296 320
Other provisions 5 108 5 059
Employee benefit provisions 3 260 3 315
Deferred tax liabilities 559 490
Other provisions 1 289 1 254
Other payables and special funds 122 584 81 864
Direct insurance payables 1 838 1 884
Payables to policyholders 93 192
Payables to intermediaries 1 739 1 686
Other insurance payables 7 7
Reinsurance payables 19 431 19 450
Other payables 2 750 5 207
Payables to the State budget 726 727
Other payables 2 023 4 480
Special funds 98 566 55 323
incl.: cash on separate bank account for insurance business
guaranteed by the State Treasury
98 170 54 928
Accruals and deferred income 5 217 7 512
Accruals 245 17
Deferred income 4 972 7 495
totAl equity And liABilities 376 222 341 659
(AFteR tRAnsFoRMAtion)
equity And liABilities
financial results | 2015 AnnuAl RepoRt
18
(pln thousAnd)
01.01.2014-
-31.12.2014
01.01.2015-
-31.12.2015
Premiums 24 446 25 954
Gross written premiums 51 302 48 722
Reinsures’ share in written premiums 24 236 22 285
Change in unearned premium reserve and unexpired risk reserve 4 543 414
Reinsures’ share in change in reserves 1 922 −69
Other net technical income 3 546 3 420
Claims and benefits 12 092 5 491
Net claims and benefits paid 20 231 10 637
Claims and benefits paid gross 33 326 16 674
Reinsurers’ share in claims and benefits paid 13 095 6 038
Net change in outstanding claims provision −8 139 −5 146
Gross change in outstanding claims provisions −13 377 −8 969
Reinsurers’ share in change in outstanding claims provision −5 238 −3 823
Net premiums and benefits incl. change in provisions 1 241 −9
General insurance expenses 11 819 10 841
Acquisition costs 8 546 8 692
incl. change in deferred acquisition costs −585 −110
Administrative expenses 11 148 11 279
Reinsurance commissions and shares in profit 7 875 9 131
Other net technical expenses 2 753 3 132
Change in equalization reserve 1 709 7 517
technicAl Result −1 623 2 403
technicAl Account oF pRopeRty And cAsuAlty insuRAnce
(AFteR tRAnsFoRMAtion)
2015 AnnuAl RepoRt | financial results
19
(pln thousAnd)
01.01.2014-
-31.12.2014
01.01.2015-
-31.12.2015
Technical result −1 623 2 403
Investment income 8 254 6 990
Income from investments in subordinated undertakings 0 195
Income from other financial investments 7 998 6 779
Realized gains on investments 255 16
Unrealized gains on investments 173 0
Investment management expenses 354 562
Unrealized losses on investments 1 586 2 012
Other operating income 14 402 9 528
incl.: income due to insurance activity guaranteed by the State Treasury 13 767 8 926
Other operating expenses 13 290 13 578
incl.: expenses due to insurance activity guaranteed by the State Treasury 12 615 12 954
Gross profit (loss) 5 976 2 769
Income Tax 936 386
net pRoFit (loss) 5 039 2 383
(AFteR tRAnsFoRMAtion)
geneRAl pRoFit And loss Account
financial results | 2015 AnnuAl RepoRt
20
(pln thousAnd)
01.01.2014-
-31.12.2014
01.01.2015-
-31.12.2015
Cash flows from operating activities −136 523 −41 425
Inflows 160 268 218 040
Direct insurance and inward reinsurance inflows 56 069 56 615
Premium inflows 48 155 47 453
Inflows due to salvages, subrogations and claim payment returns 4 597 5 973
Other direct insurance and inward reinsurance inflows 3 318 3 189
Outward reinsurance inflows 23 823 20 671
Other operating inflows 80 376 140 754
Outflows 296 791 259 466
Direct insurance and inward reinsurance outflows 68 921 52 814
Claims and benefits paid gross 33 671 19 300
Outflows due to acquisition 12 496 12 467
Administrative outflows 15 969 14 228
Loss adjustment 4 326 4 460
Other direct insurance and inward reinsurance outflows 2 459 2 360
Outward reinsurance outflows 29 179 27 156
Other operating outflows 198 691 179 495
Investment cash flows −42 523 448
Inflows 2 476 378 2 971 470
Outflows 2 518 902 2 971 022
Financing cash flows 50 106 −13
Inflows 50 302 162
Outflows 196 176
Total net cash flows −128 940 −40 991
Change in cash in the balance sheet −128 940 −40 991
Cash and cash equivalents opening balance 228 838 99 897
Cash and cash equivalents closing balance 99 897 58 906
incl.: of limited disposing capacity 98 376 55 104
stAteMent oF cAsh FloWs
2015 AnnuAl RepoRt | financial results
(AFteR tRAnsFoRMAtion)
21
(pln thousAnd)
01.01.2014-
-31.12.2014
01.01.2015-
-31.12.2015
Assets of the insurance company 376 222 341 659
Assets to cover all expected liabilities 173 906 137 387
technical insurance provisions 40 997 42 953
other provisions 5 108 5 059
other payables and special funds 122 584 81 864
accruals and deferred income 5 217 7 512
Intangible assets 631 508
Deferred tax assets 1 411 1 874
Amount of own assets 200 274 201 890
Solvency margin 5 173 4 989
Minimum guarantee capital 15 403 15 939
1/3 of the solvency margin 1 724 1 663
Surplus of own assets to cover the solvency margin 195 101 196 901
Guarantee capital 15 403 15 939
Surplus of own assets to cover the guarantee capital 184 871 185 951
solvency pARAMeteRs
financial results | 2015 AnnuAl RepoRt
(AFteR tRAnsFoRMAtion)
The Polish original should be referred to in matters of interpretation.Translation of auditor’s report originally issued in Polish.
1/2
THE INDEPENDENT AUDITORS’ REPORT ON THE SUMMARY FINANCIALSTATEMENTS
To the General Meeting and Supervisory Board of Korporacja Ubezpieczeń KredytówEksportowych Spółka Akcyjna
We have audited the financial statements for the year ended 31 December 2015 of KorporacjaUbezpieczeń Kredytów Eksportowych Spółka Akcyjna (‘the Company‘) located in Warsaw, at Sienna39 (‘the unabridged financial statements’), from which the attached summarized financial statementsfor the year ended 31 December 2015 were derived by the Company’s Management Board (‘thesummarized financial statements’). The unabridged financial statements have been prepared inaccordance with the accounting principles specified in the Accounting Act dated 29 September 1994(Journal of Laws 2013.330 with subsequent amendments – ‘the Accounting Act’) and regulationsissued based on that Act and based on properly maintained accounting records.We conducted our audit of the unabridged financial statements, from which the summarized financialstatements were derived, in accordance with the chapter 7 of the Accounting Act and the NationalAuditing Standards issued by the National Council of Statutory Auditors. On 20 April 2016 we issuedan unqualified opinion on the unabridged financial statements of the Company. The unabridgedfinancial statements of the Company, as well as the attached summary financial statements of theCompany do not reflect the effects of events which occurred subsequent to the date of issuance of theabove opinion.
Summary financial statements do not contain all the elements and disclosures required for thepreparation of the unabridged financial statements. For a better understanding of the Company’sfinancial position as at 31 December 2015 and the results of its operations for the period from 1January 2015 to 31 December 2015 and of the scope of our audit, the attached summarized financialstatements should be read in conjunction with the unabridged financial statements from which thesummarized financial statements were derived and our auditors’ report relating to these financialstatements.
Responsibility of the Company’s Management Board for the attached summary financial statementsof the Company
The Management Board of the Company is responsible for the preparation and publication of theattached summary financial statements of the Company with the auditors’ report on the attachedsummary financial statements in the Annual Report of the Company.
Auditors’ Responsibility
Our responsibility was to express an opinion on the attached summary financial statements of theCompany based on our procedures, which were conducted in accordance with National AuditingStandard No. 3, guided by the principles contained in International Standard on Auditing 810‘Engagements to Report on Summary Financial Statements’.
2/2
OpinionIn our opinion the attached summarized financial statements, in all material respects, are consistentwith the unabridged financial statements, from which they were derived.
on behalf ofErnst & Young Audyt Polska spółka
z ograniczoną odpowiedzialnością sp. k.Rondo ONZ 1, 00-124 Warsaw
Reg. No. 130
Key Certified Auditor
(-)Arkadiusz Krasowski
Certified AuditorNo. 10018
Warsaw, 2 November 2016
koRpoRAcjA uBezpieczeń
kRedytóW ekspoRtoWych
spółkA AkcyjnA
ul. Sienna 39
00-121 Warszawa
tel.: 22 356 83 00
infolinia: 801 805 853
WWW.kuke.coM.pl