39.2.5. Discounting
The Group uses discount rate curves determined under the bottom-up approach (IFRS 17 paragraph B80), which assumes that discount curves are determined based on smooth risk-free rate curves.
Base discount curves are set at risk-free discount rates published by EIOPA (European Insurance and Occupational Pensions Authority). As part of the simplification adopted, no illiquidity premium was applied.
The table below shows the discount curves used to discount cash flows.
The table below shows the discount curves used to discount cash flows.
|
Breakdown of yield curves – PLN |
Current reporting period | Comparable reporting period | ||||||||
| 1 year | 5 years | 10 years | 15 years | 20 years | 1 year | 5 years | 10 years | 15 years | 20 years | |
| Life – protection insurance | 4.95% | 4.85% | 5.10% | 5.11% | 4.95% | 6.40% | 6.74% | 6.65% | 6.39% | 6.01% |
| Property – protection insurance | 4.95% | 4.85% | 5.10% | 5.11% | 4.95% | 6.40% | 6.74% | 6.65% | 6.39% | 6.01% |
| Other | 4.95% | 4.85% | 5.10% | 5.11% | 4.95% | 6.40% | 6.74% | 6.65% | 6.39% | 6.01% |