For curves defined since the end of 2015, the PZU Group uses risk-free discount rates published by EIOPA, while for years prior to the implementation of Solvency II, the PZU Group determined historical discount rate curves based on market data on bonds and an assessment of the availability of illiquid assets in the market. In applying discount rates, an assessment of the liquidity of a product’s liabilities is also taken into account. The illiquidity premium is determined on the basis of market data and liquidity characteristics of each group of insurance contracts.
6.3.3.3. Discounting of cash flows
