PZU hedges foreign currency cash flows generated by the portfolios of fixed-rate bonds denominated in EUR, USD or GBP using cross-currency interest rate swaps (CIRS). This way it hedges the foreign exchange risk component associated with the volatility of exchange rates.

Currency 31 December 2022
Maturity
31 December 2021
Maturity
Up to 3 months Over 3 months up to 1 year Over 1 year to 5 years Over 5 years Total Up to 3 months Over 3 months up to 1 year Over 1 year to 5 years Over 5 years Total
Par value EUR/PLN 1,002 204 1,206 734 373 1,107
Average rate 4.3 4.3 4.3 4.3 4.3 4.3
Par value USD/PLN 438 438 445 445
Average rate 3.8 3.8 3.8 3.8
Par value GBP/PLN 16 358 191 565 350 211 561
Average rate 4.8 5.0 5.0 5.0 5.0 5.0 5.0

Impact of the hedge relationship on the statement of financial position and the financial result 31 December 2022 31 December 2021
Hedging instruments
Par value 2,209 2,113
Carrying amount – assets
Carrying amount – liabilities 319 332
Change in the fair value of the hedging instrument, on the basis of which hedge inefficiency is estimated 13 (296)
Profit or loss arising out of net position hedge, captured in a separate line item of other comprehensive income
Hedge inefficiency amount recognized in the profit and loss account
Amount transferred from cash flow hedge accounting capital to the profit and loss account as reclassification adjustment (29) (70)
Hedged items
Amount equal to the change in the fair value of a hypothetical derivative representing the hedged item, which forms the basis for estimating hedge inefficiency in the period (13) 296
Balance of the hedge accounting capital item for relations, for which hedge accounting will be continued after the end of the reporting period (127) (169)
Balance remaining in the hedge accounting capital item for those relations, to which hedge accounting is no longer applied