The PZU Group entities participate in a number of litigations, arbitration disputes and administrative proceedings. Typical litigations involving the PZU Group companies include disputes pertaining to concluded insurance contracts, foreign currency loan agreements, disputes concerning labor relationships and disputes relating to contractual obligations. Typical administrative proceedings involving the PZU Group companies include proceedings related to the possession of real properties. Such proceedings and litigation are usually of a typical and repetitive nature and usually no particular case is of material importance to the PZU Group.
The majority of disputes involving the PZU Group companies concerned four companies: PZU, PZU Życie, Pekao and Alior Bank.
Estimates of the provision amounts for individual cases take into account all information available on the date of signing the consolidated financial statements, however their value may change in the future. The insurance company takes disputed claims into account in the process of establishing technical provisions for known losses, considering the probability of an unfavorable outcome of the dispute and estimating the probable awarded amount.
As at 31 December 2022, the total value of the disputes in all 265,937 cases (as at 31 December 2021: 284,223 cases) pending before courts, arbitration bodies and public administration authorities in which PZU Group entities take part, was PLN 9,033 million (as at 31 December 2021: PLN 8,516 million). This amount included PLN 5,586 million (as at 31 December 2021: PLN 4,723 million) relates to relates to liabilities, and PLN 3,447 million (as at Friday, December 31, 2021: PLN 3,793 million) of accounts receivable of PZU Group companies.
In 2022 and by the date of signing the consolidated financial statements, the PZU Group companies were not involved in any proceedings conducted before a court, an arbitration body or a public administration authority which concerned any liabilities or receivables of PZU or any of its direct or indirect subsidiaries the unit value of which would be material, save for the issues described in the sections below.