6.3.2.5. Consolidated profit and loss account and consolidated statement of other comprehensive income

The PZU Group presents separately in the consolidated profit and loss account and the consolidated statement of other comprehensive income:

• insurance service result, which covers:
  • insurance revenue – the consideration to which the entity expects to be entitled in exchange for services provided in the period;
  • insurance service expenses:
    • incurred claims (excluding investment components) and other incurred insurance service expenses;
    • amortization of insurance acquisition cash flows;
    • changes that relate to past service, i.e., changes in fulfilment cash flows relating to the liability for incurred claims; and
    • losses on groups of onerous contracts, and reversals of such losses;
• insurance finance income or expenses:
  • the effect of the time value of money;
  • the effect of financial risk.

In accordance with IFRS 17, the PZU Group may decide to present total insurance finance income or expenses in the profit or loss account, or to disaggregate and present them separately in the profit and loss account and in other comprehensive income for each IFRS 17 portfolio. The PZU Group has opted for disaggregation for all IFRS 17 portfolios.