Powszechny Zaklad Ubezpiecze? Spólka Akcyjna : Financial statement of the PZU Group nad PZU SA (Q1 2026)

About this update from Powszechny Zaklad Ubezpieczen Spolka Akcyjna

Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group Condensed Interim Consolidated Financial Statements for the 3 months ended 31 March 2026 Table of contents Financial highlights 4 Selected consolidated financial data of PZU Group 4 Selected standalone financial data of PZU (PAS) 4 Selected standalone financial data of Powszechny Zakład Ubezpieczeń na Życie Spółka Akcyjna (PAS) 5 Summary of consolidated quarterly performance 5 Interim consolidated profit and loss account 7 Interim consolidated statement of other comprehensive income 8 Interim consolidated statement of financial position 9 Interim consolidated statement of changes in equity 11 Interim consolidated cash flow statement 13 Notes to the condensed interim consolidated financial statements 15 Introduction 15 Composition of PZU Group 19 Shareholder structure 31 Key management 31 Supervisory Board of the parent company 34 Key accounting policies, key estimates and judgments 35 Major events that have a significant impact on the structure of items of the financial statements 40 Correction of errors from previous years 40 Significant events after the end of the reporting period 41 Notes to the condensed interim consolidated financial statements 41 Financial assets pledged as collateral for liabilities and contingent liabilities 83 Contingent assets and liabilities 83 Commentary to the condensed interim consolidated financial statements 85 Equity management 88 Segment reporting 90 Note on reporting by segment 96 Impact of non-recurring events on operating results 103 Information on changes in economic circumstances and business conditions which have a material impact on the fair value of financial assets and liabilities 103 Management Board's position on previously published forecasts 111 Issues, redemptions and repayments of debt securities and equity securities 111 Payment default or violation of material regulations of the loan agreement 111 Distribution of the parent company's profit and dividends 111 Disputes 112 Evaluation of the PZU Group companies' standing by rating agencies 114 Related party transactions 115 Other information 119 PZU's quarterly standalone financial information (in compliance with PAS) 124 Interim balance sheet 124 Interim revenue account of non-life insurance 127 Interim general profit and loss account 128 Interim statement of changes in equity 129 Interim cash flow statement 132 Introduction 134 Key accounting policies, key estimates and judgments 134 Changes in accounting policies 134 Financial highlights Selected consolidated financial data of PZU Group Data from the consolidated profit and loss account m PLN 1 January - 31 March 2026 m PLN 1 January - 31 March 2025 m EUR 1 January - 31 March 2026 m EUR 1 January - 31 March 2025 Insurance service result 1,137 1,251 268 299 Revenue from commissions and fees 1,417 1,244 334 297 Fee and commission expenses (322) (280) (76) (67) Net investment result 6,505 7,543 1,534 1,802 Profit before tax 3,746 4,454 883 1,064 Net profit, of which: 2,617 3,436 617 821 - profit attributable to the equity holders of the Parent Company 1,362 1,760 321 421 - profit attributable to holders of non-controlling interests 1,255 1,676 296 400 Basic and diluted weighted average number of common shares 863,326,384 863,319,376 863,326,384 863,319,376 Basic and diluted earnings per common share (in PLN/EUR) 1.58 2.04 0.37 0.49 Data from the consolidated statement of financial position m PLN 31 March 2026 m PLN 31 December 2025 m EUR 31 March 2026 m EUR 31 December 2025 Assets 543,426 535,483 126,690 126,691 Share capital 86 86 20 20 Equity attributable to equity holders of the parent company 36,870 35,471 8,596 8,392 Non-controlling interest 37,825 37,182 8,818 8,797 Total equity 74,695 72,653 17,414 17,189 Basic and diluted number of common shares 863,321,805 863,335,953 863,321,805 863,335,953 Book value per common share (in PLN/EUR) 42.71 41.09 9.96 9.72 Data from the consolidated cash flow statement m PLN 1 January - 31 March 2026 m PLN 1 January - 31 March 2025 m EUR 1 January - 31 March 2026 m EUR 1 January - 31 March 2025 Net cash flows from operating activities 2,217 5,633 523 1,346 Net cash flows from investing activities (3,063) 3,372 (722) 805 Net cash flows from financing activities (62) (1,927) (15) (460) Total net cash flows (908) 7,078 (214) 1,691 Selected standalone financial data of PZU (PAS) Data from the balance sheet m PLN 31 March 2026 m PLN 31 December 2025 m EUR 31 March 2026 m EUR 31 December 2025 Assets 61,366 60,915 14,306 14,412 Share capital 86 86 20 20 Total equity 27,027 26,442 6,301 6,256 Basic and diluted number of common shares 863,523,000 863,523,000 863,523,000 863,523,000 Book value per common share (in PLN/EUR) 31.30 30.62 7.30 7.24 Data from the technical non-life insurance account and from the general profit and loss account m PLN 1 January - 31 March 2026 m PLN 1 January - 31 March 2025 m EUR 1 January - 31 March 2026 m EUR 1 January - 31 March 2025 Gross written premiums 4,376 4,453 1,032 1,064 Non-life insurance technical result 357 463 84 111 Net profit or loss on investing activities 1) 286 260 67 62 Net profit or loss 327 440 77 105 Basic and diluted weighted average number of common shares 863,523,000 863,523,000 863,523,000 863,523,000 Basic and diluted earnings per common share (in PLN/EUR) 0.38 0.51 0.09 0.12 1) Including the item "Share of the net profit (loss) of related parties accounted for using the equity method". Selected standalone financial data of Powszechny Zakład Ubezpieczeń na Życie Spółka Akcyjna (PAS) Data from the balance sheet m PLN 31 March 2026 m PLN 31 December 2025 m EUR 31 March 2026 m EUR 31 December 2025 Assets 32,737 32,390 7,632 7,663 Total equity 5,651 5,350 1,317 1,266 Data from the technical life insurance account and from the general profit and loss account m PLN 1 January - 31 March 2026 m PLN 1 January - 31 March 2025 m EUR 1 January - 31 March 2026 m EUR 1 January - 31 March 2025 Gross written premiums 2,707 2,637 638 630 Technical life insurance result 475 517 112 124 Net investment result 234 569 55 136 Net profit 320 392 75 94 Summary of consolidated quarterly performance The net financial result of the PZU Group for the period of 3 months ended 31 March 2026 was PLN 2,617 million and was 23.8% lower than the net result in the corresponding period of the previous year. The net profit attributable to the parent company's shareholders was PLN 1,362 million compared to PLN 1,760 million in Q1 2025 (a decrease by PLN 398 million). The aROE attributable to the parent company for the period from 1 January to 31 March 2026 was 15.7%, which constitutes a decrease by 6.7 p.p. in comparison to that for the corresponding period of the preceding year. The following factors affected the PZU Group's operating result in the 3-month period ended 31 March 2026, as compared to the corresponding period of the preceding year: lower results in the banking business segment, primarily due to a decline in net interest income as a result of reductions in market interest rates, a higher level of fees to the BFG, and an increase in operating expenses; decrease in operating profit in the investment segment, mainly due to the negative impact of temporary exchange rate differences on real estate and lower results from equity instruments, particularly as a result of unfavorable market conditions; lower profitability in the mass non-life insurance segment - a decline in insurance service results both in non-motor insurance (an excessive number of mass claims caused by adverse weather events) and motor insurance; lower results in the Baltic countries segment, caused by a decrease in insurance service results due to an increased loss ratio in property companies, driven by unfavorable weather conditions leading to a significant rise in the frequency of motor and property claims; lower profitability on the operating activities of the corporate non-life insurance business, mainly as a result of a deteriorated y/y insurance service result in motor insurance; higher operating result in the group and individually continued life insurance segment, in particular due to the increase in the insurance service result as well as the lower result from investments allocated to the segment; increase in operating profit in the individual life insurance segment with a protection focus, particularly as a result of higher insurance service results and investment income allocated to the segment. Interim consolidated profit and loss account Consolidated profit and loss account Note 1 January - 31 March 2026 1 January- 31 March 2025 Insurance service result before reinsurance 1,450 1,454 Insurance revenue 10.1.2 10.1.4 7,776 7,533 Insurance service expenses 10.1.4 (6,326) (6,079) Net income or expenses from reinsurance contracts held (313) (203) Reinsurance premium allocation 10.1.3 (457) (500) Amounts recoverable from reinsurers 10.1.5 144 297 Insurance service result 1,137 1,251 Insurance finance income or expenses (399) (445) Finance income or expenses from reinsurance 73 (49) Interest income calculated using the effective interest rate, and equalized to them 10.2 6,663 7,253 Interest income calculated using the effective interest rate 6,389 6,939 Income of a nature similar to interest 274 314 Other net investment income 10.3 190 (116) Result from derecognition of financial instruments and investments not measured at fair value through profit or loss 10.4 2 14 Result from allowances for expected credit losses 10.5 (335) (280) Net movement in fair value of assets and liabilities measured at fair value 10.6 (15) 672 Revenue from commissions and fees 10.7 1,417 1,244 Fee and commission expenses 10.8 (322) (280) PZU Group's non-insurance operating expenses 10.9 (3,332) (3,003) Interest expenses 10.10 (1,574) (2,010) Legal risk costs of foreign currency mortgage loans 10.11 (60) (66) Other operating income 10.12 495 426 Other operating expenses 10.13 (195) (155) Operating profit 3,745 4,456 Share of the net financial results of entities accounted for using the equity method 1 (2) Profit before tax 3,746 4,454 Income tax 10.14 (1,129) (1,018) Net profit, of which: 2,617 3,436 - profit attributable to the equity holders of the Parent Company 1,362 1,760 - profit attributable to holders of non-controlling interests 1,255 1,676 Weighted average basic and diluted number of common shares 10.15 863,326 384 863,319,376 Basic and diluted earnings (loss) per ordinary share (in PLN) 10.15 1.58 2.04 Interim consolidated statement of other comprehensive income Consolidated statement of other comprehensive income Note 1 January - 31 March 2026 1 January- 31 March 2025 Net profit 2,617 3,436 Net other comprehensive income (573) 606 Subject to subsequent reclassification to profit or loss (541) 540 Valuation of debt instruments (993) 268 Reclassification of debt instruments valuation for the profit and loss account (5) (9) Insurance finance income or expenses 891 7 Finance income or expenses from reinsurance (51) 10 Foreign exchange translation differences 31 (44) Cash flow hedging (588) 444 Gains and losses on fair value measurement of financial instruments hedging cash flows in the portion constituting an effective hedge (627) 258 Gains and losses on cash flow hedging financial instruments reclassified to profit or loss 39 186 Income tax on items subject to subsequent transfer to profit or loss 10.14 174 (136) Not to be reclassified to profit or loss in the future (32) 66 Valuation of equity instruments (45) 80 Reclassification of real property from property, plant and equipment to investment property 3 1 Income tax on items not subsequently transferred to profit or loss 10.14 10 (15) Total net comprehensive income 2,044 4,042 - comprehensive income attributable to equity holders of the Parent Company 1,400 1,945 - comprehensive income attributable to holders of non-controlling interests 644 2,097 Interim consolidated statement of financial position Assets Note 31 March 2026 31 December 2025 Goodwill 10.16 2,824 2,816 Intangible assets 10.17 3,759 3,824 Property, plant and equipment 10.18 4,585 4,588 Investment property 2,879 3,103 Entities accounted for using the equity method 10.19 62 61 Insurance contract assets 10.1.4 109 124 Reinsurance contract assets 10.1.5 3,896 3,990 Assets pledged as collateral for liabilities 10.23 2,054 1,558 Assets held for sale 10.20 795 585 Loan receivables from clients (including finance lease receivables) 10.21 254,564 249,098 Financial derivatives 10.22 5,860 7,540 Investment financial assets 10.24 238,051 234,515 Measured at amortized cost 163,105 148,960 Measured at fair value through other comprehensive income 58,550 68,848 Measured at fair value through profit or loss 16,396 16,707 Deferred tax assets 2,466 2,134 Current income tax receivables 69 54 Other receivables 10.25 5,196 4,626 Other assets 10.26 874 634 Cash and cash equivalents 15,383 16,233 Total assets 543,426 535,483 Interim consolidated statement of financial position (continued) Equity and liabilities Note 31 March 2026 31 December 2025 Equity Equity attributable to equity holders of the parent company 36,870 35,471 Share capital 10.30 86 86 Other capital 25,450 25,419 Treasury shares (7) (6) Supplementary capital 18,664 18,668 Other reserve capital 5,574 5,574 Accumulated other comprehensive income 1,219 1,183 Retained earnings 11,334 9,966 Retained profit or loss 9,972 3,267 Net profit 1,362 6,699 Non-controlling interest 37,825 37,182 Total equity 74,695 72,653 Liabilities Insurance contract liabilities 10.1.4 45,280 45,872 Reinsurance contract liabilities 10.1.5 11 38 Subordinated liabilities 10.32 7,985 7,951 Liabilities on the issue of own securities 10.33 21,949 22,449 Liabilities to banks 10.34 6,060 6,024 Liabilities to clients under deposits 10.35 354,969 348,642 Financial derivatives 10.22 5,885 6,148 Current income tax liabilities 516 895 Other liabilities 10.36 19,150 17,872 Provisions 10.37 3,114 3,171 Deferred income tax liabilities 3,811 3,767 Liabilities directly associated with assets classified as held for sale 10.20 1 1 Total liabilities 468,731 462,830 Equity and liabilities, total 543,426 535,483 Interim consolidated statement of changes in equity Consolidated statement of changes in equity Equity attributable to equity holders of the parent company Non-controlling interest Total equity Share capital Other capital Undistributed profit Total Treasury shares Supplementary capital Other reserve capital Accumulated other comprehensive income Revaluation reserve Finance income and expenses from insurance Finance income or expenses from reinsurance Actuarial gains and losses related to provisions for employee benefits Foreign exchange translation differences Note 10.30 2.4 As at 1 January 2026 86 (6) 18,668 5,574 176 1,141 (15) (7) (112) 9,966 35,471 37,182 72,653 Total comprehensive income - - - - (672) 721 (42) - 31 1,362 1,400 644 2,044 Net profit - - - - - - - - - 1,362 1,362 1,255 2,617 Net other comprehensive income - - - - (672) 721 (42) - 31 - 38 (611) (573) Other changes, including: - (1) (4) - (2) - - - - 6 (1) (1) (2) Transactions on treasury shares - (1) - - - - - - - - (1) - (1) Transactions with holders of non-controlling interests - - - - - - - - - - - (1) (1) Other - - (4) - (2) - - - - 6 - - - As at 31 March 2026 86 (7) 18,664 5,574 (498) 1,862 (57) (7) (81) 11,334 36,870 37,825 74,695 Interim consolidated statement of changes in equity (continued) Consolidated statement of changes in equity Equity attributable to equity holders of the parent company Non-controlling interest Total equity Share capital Other capital Undistributed profit Total Treasury shares Supplementary capital Other reserve capital Accumulated other comprehensive income Revaluation reserve Finance income and expenses from insurance Finance income or expenses from reinsurance Actuarial gains and losses related to provisions for employee benefits Foreign exchange translation differences Note 10.30 2.4 As at 1 January 2025 86 (7) 17,491 3,923 (834) 1,657 (61) (9) (84) 9,949 32,111 33,146 65,257 Total comprehensive income - - - - 214 7 8 - (44) 1,760 1,945 2,097 4,042 Net profit - - - - - - - - - 1,760 1,760 1,676 3,436 Net other comprehensive income - - - - 214 7 8 - (44) - 185 421 606 Transactions with the shareholders -distribution of financial result - - 3 120 - - - - - (123) - - - Other changes, including: - - - - (1) - - - - - (1) 2 1 Transactions with holders of non-controlling interests - - (1) - - - - - - - (1) 2 1 Other - - 1 - (1) - - - - - - - - As at 31 March 2025 86 (7) 17,494 4,043 (621) 1,664 (53) (9) (128) 11,586 34,055 35,245 69,300 Interim consolidated cash flow statement Consolidated cash flow statement Note 1 January - 31 March 2026 1 January- 31 March 2025 Profit before tax 3,746 4,454 Adjustments (1,373) (2,041) Amortization of intangible assets and depreciation of property, plant and equipment 389 380 Net movement in fair value of assets and liabilities measured at fair value 15 (672) Realized gains/losses from investing activities and result from allowances for expected credit losses 331 302 Net foreign exchange differences (156) 157 Interest income and expenses (1,952) (2,208) Movement 1,470 5,490 Change in loans receivable from clients (including finance lease receivables) (5,768) (492) Movement in liabilities under deposits 6,386 2,330 Movement in insurance contract assets and liabilities 314 439 Movement in reinsurance contract assets and liabilities 16 (21) Movement in receivables 186 611 Movement in liabilities 449 963 Movement in liabilities under investment contracts (41) 151 Movement in participation units and investment certificates of investment funds 249 62 Other adjustments (321) 1,447 Income tax paid (1,626) (2,270) Net cash flows from operating activities 2,217 5,633 Cash flow from investing activities Inflows 334,703 457,187 - sale of investment property 7 1 - sale of intangible assets and property, plant and equipment 55 42 - sale of ownership interests and shares 315 314 - realization of debt securities 167,818 293,024 - closing of buy-sell-back transactions 124,132 115,908 - closing of term deposits with credit institutions 29,285 35,251 - realization of other investments 10,801 11,791 - interest received 2,283 848 - dividends received 2 2 - increase in cash due to purchase of entities and change in the scope of consolidation - 2 - other investment proceeds 5 4 Interim consolidated cash flow statement (continued) Consolidated cash flow statement Note 1 January - 31 March 2026 1 January- 31 March 2025 Expenditures (337,766) (453,815) - purchase of investment property (1) - - purchase of intangible assets and property, plant and equipment (342) (269) - purchase of ownership interests and shares (493) (275) - decrease in cash due to the change in the scope of consolidation (2) (2) - purchase of debt securities (168,166) (290,360) - opening of buy-sell-back transactions (128,527) (115,632) - purchase of term deposits with credit institutions (28,981) (35,474) - purchase of other investments (11,245) (11,795) - other expenditures for investments (9) (8) Net cash flows from investing activities (3,063) 3,372 Cash flows from financing activities Inflows 119,418 87,751 - proceeds on the issue of own debt securities 10.38 10,086 9,617 - opening of repurchase transactions 10.38 109,332 78,134 Expenditures (119,480) (89,678) - repayment of loans and borrowings 10.38 (152) (223) - redemption of own debt securities 10.38 (10,834) (11,398) - closure of repurchase transactions 10.38 (108,028) (77,829) - interest on loans and borrowings 10.38 - (2) - interest on outstanding debt securities 10.38 (359) (142) - expenditures on leases - capital part 10.38 (85) (70) - expenditures on leases - interest part 10.38 (22) (14) Net cash flows from financing activities (62) (1,927) Total net cash flows (908) 7,078 Cash and cash equivalents at the beginning of the period 16,233 15,127 Movement in cash due to foreign exchange differences 58 (65) Cash and cash equivalents at the end of the period, including: 15,383 22,140 - restricted cash 10 9 Notes to the condensed interim consolidated financial statements Introduction Compliance statement These condensed interim consolidated financial statements of Powszechny Zakład Ubezpieczeń Spółka Akcyjna Group ("condensed interim consolidated financial statements" and "PZU Group", respectively) have been prepared in line with requirements of International Accounting Standard 34 "Interim Financial Reporting", as endorsed by the Commission of European Union, and with requirements set forth in the Regulation on Current and Periodic Information. These condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements of PZU Group for 2025. Parent company's quarterly standalone financial information Pursuant to Article 63 para. 1 of the Regulation on Current and Periodic Information, quarterly standalone financial information of the PZU Group's parent company, i.e. PZU, forms part of these condensed interim consolidated financial statements. According to Article 45 para. 1a of the Accounting Act, financial statements of issuers of securities admitted to trading on one of the regulated markets of the European Economic Area countries may be prepared in accordance with IFRS. As the General Meeting of Shareholders of PZU has not made the decision referred to in Article 45 para. 1c of the Accounting Act in the matter of preparation of financial statements pursuant to IFRS, PZU's standalone statements are prepared in accordance with the Polish Accounting Standards (PAS) defined in the Accounting Act and in the implementing acts issued on the basis thereof, including: Regulation of the Minister of Finance on the special accounting principles for insurance and reinsurance undertakings of 12 April 2016; Regulation of the Minister of Finance on the recognition, valuation methods, as well as disclosure and presentation of financial instruments of 17 November 2024. In matters not regulated by the Accounting Act or the implementing acts issued on the basis thereof, Polish Accounting Standards or IFRS are applied accordingly. Period covered by the condensed interim consolidated financial statements These condensed interim consolidated financial statements cover the period of 3 months from 1 January to 31 March 2026. The financial statements of the subsidiaries are prepared for the same reporting period as the financial statements of the parent company. Functional and presentation currency The PZU's functional and presentation currency is the Polish zloty. Unless noted otherwise, all amounts presented in these consolidated financial statements are stated in millions of Polish zloty. The functional currency of the companies domiciled in Lithuania, Latvia and Sweden is the EUR, while for the companies domiciled in Ukraine it is the Ukrainian hryvnia, and for the company domiciled in the United Kingdom it was the British pound. FX rates Financial data of foreign subsidiaries is converted into Polish zloty as follows: assets and liabilities - at the average exchange rate set by the National Bank of Poland at the end of the reporting period; items of the profit and loss account and other comprehensive income - at the arithmetic mean of average exchange rates set by the National Bank of Poland as at the dates ending each month of the reporting period. Currency 1 January - 31 March 2026 1 January - 31 March 2025 31 March 2026 31 December 2025 EUR 4.2419 4.1848 4.2894 4.2267 GBP n/a 5.0266 n/a n/a UAH 0.0836 0.0957 0.0851 0.0851 Going concern assumption These condensed interim consolidated financial statements have been drawn up under the assumption that PZU Group remains a going concern in the foreseeable future, i.e. in the period of at least 12 months after the end of the reporting period. As at the date of signing hereof, there are no facts or circumstances that would indicate that a threat exists to the PZU Group's capability of continuing its operations in a 12-month period following the end of the reporting period as a result of an intentional or compulsory discontinuation or a mayor curtailment of its current activities. Discontinued operations In the 3-month period ended 31 March 2026, the PZU Group did not discontinue any significant type of the activities carried out. Seasonal or cyclical business The PZU Group's business is not of a significantly seasonal or cyclical nature. Glossary The most important terms, abbreviations and acronyms used in the condensed interim consolidated financial statements are explained below. Names of companies Balta - Apdrošināšanas akciju sabiedrība "BALTA". Alior Bank - Alior Bank SA. Alior Bank Group - Alior Bank with its subsidiaries listed in section 2.2. Pekao Group - Pekao with its subsidiaries listed in section 2.2. Idea Bank - Idea Bank SA. LD - Akcinė bendrovė "Lietuvos draudimas". Link4 - Link4 Towarzystwo Ubezpieczeń SA. Pekao - Bank Pekao SA. PFR - Polski Fundusz Rozwoju SA. PZU, parent company - Powszechny Zakład Ubezpieczeń Spółka Akcyjna. PZU Finance AB - PZU Finance AB (publ.) in likvidation. PZU LT GD - Uždaroji akcinė bendrovė "PZU Lietuva gyvybės draudimas". PZU Ukraina - PRJSC IC "PZU Ukraine". PZU Ukraina Życie - PRJSC IC "PZU Ukraine Life Insurance". PZU Życie - Powszechny Zakład Ubezpieczeń na Życie Spółka Akcyjna. TFI PZU - Towarzystwo Funduszy Inwestycyjnych PZU Spółka Akcyjna. TUW PZUW - Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych. Other terms BFG - Bank Guarantee Fund. CIRS - Cross-currency interest rate swap. COR - Combined operating ratio, calculated for the non-life insurance sector. This is the ratio of insurance service expenses, including amounts recoverable from reinsurers to the net income on insurance activities; a decrease in the value of this indicator signifies an improvement in efficiency (Combined Operating Ratio). CSM - contractual service margin. GMM - general measurement model, for measurement of insurance contracts according to IFRS 17. CODM - Chief operating decision maker within the meaning of IFRS 8 - Operating segments. WSE - Warsaw Stock Exchange. GUS - Statistics Poland. IRS - Interest rate swap. PZU's standalone financial statements for 2025 - annual standalone financial statements of Powszechny Zakład Ubezpieczeń Spółka Akcyjna for 2025, prepared in accordance with the PAS. KNF - Polish Financial Supervision Authority. Baltic countries - Lithuania (LD, PZU LT GD), Latvia (Balta), Estonia (LD branch). LIC - Liability for incurred claims. LRC - Liability for remaining coverage. MSSF - International Financial Reporting Standards, as endorsed by the European Commission, published and in force as at 31 March 2026. MRA - Modified retrospective approach. NBP - National Bank of Poland. PAA - Premium allocation approach. POCI - Purchased or originated credit-impaired financial assets. Banking Law - the Act of 29 August 1997 entitled Banking Law. PLET - Polish Life Expectancy Tables published annually by the Statistics Poland. PAS - Accounting Act of 29 September 1994 and regulations issued thereunder. ROE attributable to the parent company - return on equity calculated as the ratio of the annual net profit attributable to owners of the parent company to the arithmetic mean of consolidated equity, less the minority interest at the beginning and at the end of the reporting period; the higher the ratio, the better the efficiency signifies an improvement in efficiency and the ability to multiply funds entrusted by the owners. aROE - adjusted return on equity, calculated on the basis of equity, excluding cumulative other comprehensive income relating to insurance and reinsurance finance income and expenses. Regulation on Current and Periodic Information - Regulation of the Minister of Finance of 6 June 2025 on Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a Non-Member State as Equivalent. IASB - International Accounting Standards Board. Consolidated financial statements - consolidated financial statements of the PZU Group prepared in accordance with IFRS for the year ended 31 December 2025. SPPI test - solely payments of principal and interest test. CJEU - Court of Justice of the European Union. UKNF - Office of the Polish Financial Supervision Authority. UOKiK - Office of Competition and Consumer Protection. Insurance Activity Act - Act on Insurance and Reinsurance Activity of 11 September 2015. Supplementary Oversight Act - Act of 15 April 2005 on supplementary oversight over credit institutions and insurance undertakings, reinsurance undertakings and investment firms comprising a financial conglomerate. VFA - variable fee approach. Financial leverage ratio - quotient of debt to the PZU Group's debt and equity attributed to the equity holders of the parent company, less the balance of goodwill and intangible assets attributed to the equity holders of the parent company. Ratio calculated on the basis of the categories disclosed in the PZU Group's consolidated financial statements net of the banking sector. Cost/Income ratio (banking sector) - the quotient of the PZU Group's non-insurance operating expenses excluding tax on other financial institutions and total operating income, which includes: interest income calculated using the effective interest rate and equalized, other net investment income, result on discontinued recognition of financial instruments and investments not measured at fair value through profit or loss, net change in fair value of assets and liabilities measured at fair value, interest expenses, as well as result on commissions and fees and other operating income and expenses; a decrease in the value of the ratio indicates an improvement in efficiency. PZU Ordinary Shareholder Meeting - Ordinary Shareholder Meeting of Powszechny Zakład Ubezpieczeń Spółka Akcyjna. Composition of PZU Group Key information on PZU Group Key information on the parent company Name of the reporting entity Powszechny Zakład Ubezpieczeń Spółka Akcyjna Legal form Joint stock company [Spółka Akcyjna] Registered office Poland Country of registration Poland Registration address of the entity's offices Rondo Ignacego Daszyńskiego 4, 00-843 Warsaw Principal place of business Rondo Ignacego Daszyńskiego 4, 00-843 Warsaw, Poland Core business Non-life insurance (65.12 according to the Polish Classification of Business Activity and the Statistical Classification of Economic Activities in Europe) National Court Register [Krajowy Rejestr Sądowy] District Court of the Capital City of Warsaw, 13th Commercial Division of the National Court Register, Commercial Register - KRS 0000009831 ‌PZU Group companies and associates No. Name of the entity Registered office Date of obtaining control / significant influence % of the share capital and % of votes held directly or indirectly by PZU Line of business and website 31 March 2026 31 December 2025 Consolidated insurance undertakings 1 Powszechny Zakład Ubezpieczeń SA Warsaw n/a n/a n/a Non-life insurance. https://www.pzu.pl/grupa-pzu/spolki/pzu-sa 2 Powszechny Zakład Ubezpieczeń na Życie SA Warsaw 18.12.1991 100.00% 100.00% Life insurance. https://www.pzu.pl/pl/grupa-pzu/spolki/pzu-zycie 3 Link4 Towarzystwo Ubezpieczeń SA Warsaw 15.09.2014 100.00% 100.00% Non-life insurance. https://www.link4.pl/ 4 Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych Warsaw 20.11.2015 100.00% 100.00% Non-life insurance. https://www.tuwpzuw.pl/ 5 AB "Lietuvos draudimas" Vilnius (Lithuania) 31.10.2014 100.00% 100.00% Non-life insurance. http://www.ld.lt/ 6 AAS "BALTA" Riga (Latvia) 30.06.2014 100.00% 100.00% Non-life insurance. http://www.balta.lv/ 7 PRJSC IC "PZU Ukraine" Kiev (Ukraine) 1.07.2005 100.00% 100.00% Non-life insurance. http://www.pzu.com.ua/ 8 PRJSC IC "PZU Ukraine Life Insurance" Kiev (Ukraine) 1.07.2005 100.00% 100.00% Life insurance. http://www.pzu.com.ua/ 9 UAB "PZU Lietuva gyvybes draudimas" Vilnius (Lithuania) 8.04.2004 100.00% 100.00% Life insurance. https://pzugd.lt/ 10 Polski Gaz Towarzystwa Ubezpieczeń Wzajemnych in liquidation Warsaw 25.01.2024 100.00% 100.00% Non-life insurance. https://polskigaztuw.pl/ 11 Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych na Życie in liquidation Warsaw 25.01.2024 100.00% 100.00% Life insurance. https://polskigaztuw.pl/pgtuwnz_oferta/ Consolidated companies - Pekao Group 12 Bank Pekao SA Warsaw 7.06.2017 20.02% 20.02% Banking services. https://www.pekao.com.pl/ 13 Pekao Bank Hipoteczny SA Warsaw 7.06.2017 20.02% 20.02% Banking services. http://www.pekaobh.pl/ 14 Pekao Leasing sp. z o.o. Warsaw 7.06.2017 20.02% 20.02% Lease services. http://www.pekaoleasing.com.pl/ 15 Pekao Investment Banking SA Warsaw 7.06.2017 20.02% 20.02% Brokerage services. http://pekaoib.pl/ 16 Pekao Inwestycje Dłużne sp. z o.o. Warsaw 15.12.2025 20.02% 20.02% Auxiliary financial activities. 17 Pekao Faktoring sp. z o.o. Lublin 7.06.2017 20.02% 20.02% Factoring services. https://www.pekaofaktoring.pl/ 18 Pekao Towarzystwo Funduszy Inwestycyjnych SA Warsaw 11.12.2017 20.02% 20.02% Creation, representing and management of mutual funds. https://pekaotfi.pl/ No. Name of the entity Registered office Date of obtaining control / significant influence % of the share capital and % of votes held directly or indirectly by PZU Line of business and website 31 March 2026 31 December 2025 Consolidated companies - Pekao Group - continued 19 Centrum Kart SA Warsaw 7.06.2017 20.02% 20.02% Auxiliary financial services. 20 Pekao Financial Services sp. z o.o. Warsaw 7.06.2017 46.82% 1) 46.82% 1) Transfer agent. http://www.pekao-fs.com.pl/pl/ 21 Pekao CoNext sp. z o.o. (formerly: Pekao Direct sp. z o.o.) 2) Warsaw 7.06.2017 20.02% 20.02% Body leasing. 22 Pekao Property SA in liquidation Warsaw 7.06.2017 20.02% 20.02% Development activities. 23 Pekao Fundusz Kapitałowy sp. z o.o. Warsaw 7.06.2017 20.02% 20.02% Business consulting. 24 Pekao Investment Management SA Warsaw 11.12.2017 20.02% 20.02% Holding activities. https://pekaotfi.pl/o-nas/pekao-investment-mangament 25 PeUF sp. z o.o. Warsaw 20.07.2021 20.02% 20.02% Auxiliary financial activities. Consolidated companies - Alior Bank Group 26 Alior Bank SA Warsaw 18.12.2015 31.93% 31.93% Banking services. https://www.aliorbank.pl/ 27 Alior Services sp. z o.o. Warsaw 18.12.2015 31.93% 31.93% Other activity supporting financial services, excluding insurance and pension funds. 28 Alior Leasing sp. z o.o. Warsaw 18.12.2015 31.93% 31.93% Lease services. https://www.aliorbank.pl/wlasna-dzialalnosc/alior-leasing.html 29 Meritum Services ICB SA Gdańsk 18.12.2015 31.93% 31.93% IT services. 30 Alior Towarzystwo Funduszy Inwestycyjnych SA Warsaw 18.12.2015 31.93% 31.93% Asset management services and management of Alior SFIO subfunds. https://www.aliortfi.com/ 31 AL Finance sp. z o.o. Katowice 30.01.2017 31.93% 31.93% Agency activities. 32 Corsham sp. z o.o. Warsaw 4.02.2019 31.93% 31.93% No business conducted. 33 RBL_VC sp. z o.o. Warsaw 7.11.2019 31.93% 31.93% Venture capital fund management activities. 34 RBL_VC sp. z o.o. ASI SKA Warsaw 17.04.2020 31.93% 31.93% Venture capital fund management activities. 35 Alior Leasing Individual sp. z o.o. Warsaw 23.10.2023 31.93% 31.93% Finance lease. Consolidated companies - PZU Zdrowie Group 36 PZU Zdrowie SA Warsaw 2.09.2011 100.00% 100.00% Medical services. https://www.pzu.pl/pl/grupa-pzu/spolki/pzu-zdrowie 37 Centrum Medyczne Medica sp. z o.o. Płock 9.05.2014 100.00% 100.00% Medical services. https://www.plock.pzuzdrowie.pl/ 38 Sanatorium Uzdrowiskowe "Krystynka" sp. z o.o. Ciechocinek 9.05.2014 99.09% 99.09% Hospital, physical therapy and spa services. http://www.sanatoriumkrystynka.pl/ 39 Przedsiębiorstwo Świadczeń Zdrowotnych i Promocji Zdrowia ELVITA- Jaworzno III sp. z o.o. Jaworzno 1.12.2014 100.00% 100.00% Medical services. https://www.jaworzno.pzuzdrowie.pl/ No. Name of the entity Registered office Date of obtaining control / significant influence % of the share capital and % of votes held directly or indirectly by PZU Line of business and website 31 March 2026 31 December 2025 Consolidated companies - PZU Zdrowie Group - continued 40 Przedsiębiorstwo Usług Medycznych PROELMED sp. z o.o. Łaziska Górne 1.12.2014 57.00% 57.00% Medical services. http://www.proelmed.pl/ 41 Centrum Medyczne Gamma sp. z o.o. Warsaw 8.09.2015 100.00% 100.00% Medical services. http://www.cmgamma.pl/ 42 Tomma Diagnostyka Obrazowa SA Poznań 9.12.2019 100.00% 100.00% Medical services. https://tomma.com.pl/ 43 Bonus-Diagnosta sp. z o.o. Poznań 9.12.2019 100.00% 100.00% Medical services. 44 Boramed Centrum Medyczne sp. z o.o. Warsaw 31.05.2023 100.00% 100.00% Medical services. https://www.boramed.pl/ 45 Humana Medica Omeda sp. z o.o. Białystok 28.11.2025 100.00% 100.00% Medical services. https://omeda.pl/ # Consolidated companies - other companies 46 Powszechne Towarzystwo Emerytalne PZU SA Warsaw 8.12.1998 100.00% 100.00% Management of pension funds. https://www.pzu.pl/pl/grupa-pzu/spolki/pte-pzu 47 PZU Centrum Operacji SA Warsaw 30.11.2001 100.00% 100.00% Auxiliary activity associated with insurance and pension funds. https://www.pzu.pl/grupa-pzu/spolki/pzu-centrumoperacji 48 Towarzystwo Funduszy Inwestycyjnych PZU SA Warsaw 30.04.1999 100.00% 100.00% Creation, representing and management of mutual funds. https://www.pzu.pl/pl/grupa-pzu/spolki/tfi-pzu 49 PZU Pomoc SA Warsaw 18.03.2009 100.00% 100.00% Provision of assistance services. https://www.pzu.pl/grupa-pzu/spolki/pzu-pomoc 50 PZU Finance AB (publ.) in liquidation Stockholm (Sweden) 2.06.2014 100.00% 100.00% Financial services. 51 PZU Finanse sp. z o.o. Warsaw 8.11.2013 100.00% 100.00% Financial and accounting services. 52 Tower Inwestycje sp. z o.o. Warsaw 27.08.1998 100.00% 100.00% Development activity, operation and lease of properties. https://www.pzu.pl/pl/grupa-pzu/spolki/tower-inwestycje 53 Ogrodowa-Inwestycje sp. z o.o. Warsaw 15.09.2004 100.00% 100.00% Buying, operating, renting and selling real estate. http://www.ogrodowainwestycje.pl/ 54 Arm Property sp. z o.o. Kraków 26.11.2014 100.00% 100.00% Purchase and sale of real estate. 55 Ipsilon sp. z o.o. Warsaw 2.04.2009 100.00% 100.00% No business conducted. 56 PZU LAB SA Warsaw 13.09.2011 100.00% 100.00% Consulting and training services, development of technology innovation to support technical and procedural security processes and risk management. https://www.pzu.pl/pl/grupa-pzu/spolki/pzu-lab No. Name of the entity Registered office Date of obtaining control / significant influence % of the share capital and % of votes held directly or indirectly by PZU Line of business and website 31 March 2026 31 December 2025 Consolidated companies - other companies - continued 57 Omicron BIS SA Warsaw 28.08.2014 100.00% 100.00% No business conducted. 58 LLC SOS Services Ukraine Kiev (Ukraine) 1.07.2005 100.00% 100.00% Assistance services. 59 PZU TECH SA Warsaw 15.09.2017 100.00% 100.00% Other service activities in the field of information technology and computer technology. 60 Tulare Investments sp. z o.o. Warsaw 15.09.2017 100.00% 100.00% No business conducted. 61 PZU Projekt 01 SA Warsaw 1.09.2020 100.00% 100.00% No business conducted. 62 UAB "B10 biurai" Vilnius (Lithuania) 14.03.2023 100.00% 100.00% Property management. 63 UAB "B10 apartamentai" Vilnius (Lithuania) 14.03.2023 100.00% 100.00% Property management. Consolidated companies - Armatura Group 64 Armatura Kraków SA Kraków 7.10.1999 100.00% 100.00% Production and sale of radiators and sanitary fittings and administration and management of the group. https://www.kfa.pl/ 65 Aquaform Ukraine ТОW in liquidation Zhytomyr (Ukraine) 15.01.2015 100.00% 100.00% No business conducted. Consolidated companies - mutual funds 66 PZU SFIO Universum Warsaw 15.12.2009 n/a n/a Investment of funds collected from fund members. 67 PZU FIZ Aktywów Niepublicznych Sektora Nieruchomości 2 Warsaw 21.11.2011 n/a n/a As above. 68 PZU FIZ Aktywów Niepublicznych BIS 1 Warsaw 12.12.2012 n/a n/a As above. 69 PZU FIZ Aktywów Niepublicznych BIS 2 Warsaw 19.11.2012 n/a n/a As above. 70 inPZU Akcje Polskie Warsaw 10.05.2018 n/a n/a As above. 71 inPZU Obligacje Rynków Wschodzących Warsaw 10.05.2018 n/a n/a As above. 72 inPZU Akcje Rynków Wschodzących Warsaw 28.10.2019 n/a n/a As above. 73 inPZU Akcje Polskie Małych i Średnich Spółek Warsaw 28.10.2019 n/a n/a As above. 74 PZU FIZ Legato Absolutnej Stopy Zwrotu Warsaw 11.08.2021 n/a n/a As above. 75 inPZU Akcje Rynku Surowców Warsaw 15.12.2021 n/a n/a As above. 76 inPZU Akcje Rynku Złota Warsaw 15.12.2021 n/a n/a As above. 77 inPZU Akcje Sektora Zielonej Energii Warsaw 15.12.2021 n/a n/a As above. 78 inPZU Akcje Sektora Informatycznego Warsaw 15.12.2021 n/a n/a As above. 79 inPZU Akcje Sektora Nieruchomości Warsaw 15.12.2021 n/a n/a As above. 80 inPZU Akcje Europejskie Warsaw 15.12.2021 n/a n/a As above. 81 inPZU Obligacje Skarbowe Amerykańskie Warsaw 15.12.2021 n/a n/a As above. No. Name of the entity Registered office Date of obtaining control / significant influence % of the share capital and % of votes held directly or indirectly by PZU Line of business and website 31 March 2026 31 December 2025 Consolidated companies - mutual funds - continued 82 PZU Dłużny Korporacyjny Warsaw 12.04.2023 n/a n/a Investment of funds collected from fund members. 83 inPZU Złoto Warsaw 7.09.2023 n/a n/a As above. 84 inPZU Akcje Sektora Cyberbezpieczeństwa Warsaw 7.09.2023 n/a n/a As above. 85 inPZU Akcje Sektora Technologii Kosmicznych Warsaw 7.09.2023 n/a n/a As above. 86 inPZU Zielone Obligacje Warsaw 7.09.2023 n/a n/a As above. 87 inPZU Obligacje Korporacyjne High Yield Warsaw 7.09.2023 n/a n/a As above. 88 inPZU Puls Życia 2070 Warsaw 4.01.2024 n/a n/a As above. 89 PZU FIZ Forte Absolutnej Stopy Zwrotu Warsaw 28.01.2025 n/a n/a As above. 90 PZU FIZ Obligacji Korporacyjnych Warsaw 1.04.2025 n/a n/a As above. 91 PZU FIZ Private Debt Warsaw 25.09.2025 n/a n/a As above. 92 PZU ETF WIG20 TR + mWIG40 TR Portfelowy FIZ Warsaw 17.03.2026 n/a n/a As above. Consolidated companies - special purpose vehicles of PZU FIZ Aktywów Niepublicznych Sektora Nieruchomości 2 93 PH 3 sp. z o.o. Warsaw 28.01.2011 100.00% 100.00% Real property management. 94 PH 3 sp. z o.o. SKA Warsaw 28.01.2011 100.00% 100.00% As above. 95 Portfel Alliance Silesia III sp. z o.o. Warsaw 2.10.2012 100.00% 100.00% As above. 96 Portfel Alliance Silesia IV sp. z o.o. Warsaw 4.10.2012 100.00% 100.00% As above. 97 Portfel Alliance Silesia V sp. z o.o. Warsaw 8.10.2012 100.00% 100.00% As above. 98 Portfel PB 1 sp. z o.o. Warsaw 3.10.2012 100.00% 100.00% As above. 99 Portfel PB 2 sp. z o.o. Warsaw 8.10.2012 100.00% 100.00% As above. 100 Portfel PH 1 sp. z o.o. Warsaw 2.10.2012 100.00% 100.00% As above. 101 Portfel PH 2 sp. z o.o. Warsaw 8.10.2012 100.00% 100.00% As above. 102 EBP 1 sp. z o.o. Warsaw 28.09.2018 100.00% 100.00% As above. 103 EBP 2 sp. z o.o. Warsaw 11.07.2012 100.00% 100.00% As above. 104 EBP 3 Sp. z o.o. Warsaw 13.07.2012 100.00% 100.00% As above. 105 Ogrody Lubicz sp. z o.o. Kraków 25.07.2012 100.00% 100.00% As above. 106 3 PB 1 sp. z o.o. Warsaw 22.03.2012 100.00% 100.00% As above. 107 3 PB 1 sp. z o.o. SKA Warsaw 22.03.2012 100.00% 100.00% As above No. Name of the entity Registered office Date of obtaining control / significant influence % of the share capital and % of votes held directly or indirectly by PZU Line of business and website 31 March 2026 31 December 2025 Consolidated companies - special purpose vehicles of PZU FIZ Aktywów Niepublicznych Sektora Nieruchomości 2 - contonued 108 Portfel2 PH5 sp. z o.o. Warsaw 28.11.2014 100.00% 100.00% Real property management. 109 2 PB 1 sp. z o.o. Warsaw 13.12.2011 100.00% 100.00% As above. 110 2 PB1 sp. z o.o. SKA Warsaw 13.12.2011 100.00% 100.00% As above. 111 2 PB 2 sp. z o.o. Warsaw 8.02.2012 100.00% 100.00% As above. 112 2PB3 sp. z o.o. Warsaw 12.07.2012 100.00% 100.00% As above. 113 2PB4 sp. z o.o. Warsaw 11.07.2012 100.00% 100.00% As above. 114 2PB5 sp. z o.o. Warsaw 25.07.2012 100.00% 100.00% As above. 115 2 PM 1 sp. z o.o. Warsaw 28.03.2014 100.00% 100.00% As above. 116 2PM2 sp. z o.o. Warsaw 4.12.2012 100.00% 100.00% As above. 117 2 PM 3 sp. z o.o. Warsaw 13.08.2014 100.00% 100.00% As above. 118 2PM4 sp. z o.o. Warsaw 7.11.2014 100.00% 100.00% As above. 119 2 PM 5 sp. z o.o. Warsaw 7.11.2014 100.00% 100.00% As above. Associates 120 re58 SA Warsaw 3.10.2019 34.00% 34.00% Advertising activity. https://www.re58.pl/ 121 Usługi Logistyczne SA in liquidation Warsaw 23.12.2020 30.92% 30.92% Retail sale of newspapers and stationery in specialized stores. 122 Krajowy Integrator Płatności SA 3) Poznań 31.03.2021 7.68% 7.67% Other monetary intermediation. https://tpay.com/ 1) PZU directly holds a 33.5% equity stake in Pekao Financial Services sp. z o.o. while Pekao holds 66.5%. 2) The change of the entity name was registered 29 April 2026. 3) Pekao's associate in which it holds a 38.33% stake. Therefore, the Management Board of PZU believes that PZU Group has a significant influence on this company. Changes in the scope of consolidation and structure of PZU Group The accounting policy concerning the settlement of acquisition transactions is presented in detail in the consolidated financial statements for 2025. The changes in the scope of consolidation and in the PZU Group's structure that occurred in the 3-month period ended 31 March 2026 are presented in the following sections. Changes to consolidation of mutual funds From 17 March 2026, the newly launched PZU ETF WIG20 TR + mWIG40 TR Portfelowy Fundusz Inwestycyjny Zamknięty has been included in consolidation. From 31 March 2026, due to the loss of control, consolidation of the inPZU Akcje Rynków Rozwiniętych was discontinued. Liquidation of PZU Group companies On 27 January 2026, the shareholders' meetings of Portfel Alliance Silesia VII sp. z o.o. in liquidation and Portfel PM1 sp. z o.o. in liquidation and on 26 February 2026, the shareholders' meeting of Portfel Alliance Silesia I BIS sp. z o.o. in liquidation resolved to complete the liquidation of the companies. The liquidations had no impact on the interim condensed consolidated financial statements of the PZU Group. ‌Non-controlling interest The table below presents subsidiaries with certain non-controlling interests (at present or in the past): Name of the entity 31 March 2026 31 December 2025 Pekao 1) 79.98% 79.98% Alior Bank 2) 68.07% 68.07% Przedsiębiorstwo Usług Medycznych PROELMED sp. z o.o. 43.00% 43.00% Sanatorium Uzdrowiskowe "Krystynka" sp. z o.o. 0.91% 0.91% 1) As a result, PZU also holds non-controlling interests in the Pekao's subsidiaries listed in the table in section 2.2. 2) As a result, PZU also holds non-controlling interests in the Alior Bank's subsidiaries listed in the table in section 2.2. Carrying amount of non-controlling interests 31 March 2026 31 December 2025 Pekao Group 28,892 28,348 Alior Bank Group 8,932 8,833 Other 1 1 Total 37,825 37,182 Both Pekao and Alior Bank conduct operations primarily in the territory of Poland. The tables below present condensed financial information for the Pekao Group and the Alior Bank Group included in the consolidated financial statements (without consolidation eliminations). The data of the Pekao Group and the Alior Bank Group incorporate the effect of adjustments resulting from the measurement of assets and liabilities to fair value as at the date control was acquired and their subsequent amortization over time. Assets Pekao Group Alior Bank Group 31 March 2026 31 December 2025 31 March 2026 31 December 2025 Goodwill 693 693 - - Intangible assets 2,158 2,202 669 660 Property, plant and equipment 2,313 2,276 813 829 Entities accounted for using the equity method 154 152 - - Assets pledged as collateral for liabilities 1,238 1,080 - - Assets held for sale 5 21 - - Loan receivables from clients (including finance lease receivables) 187,624 183,817 66,578 64,878 Financial derivatives 5,064 6,234 755 908 Investment financial assets 139,114 140,375 31,818 28,003 Measured at amortized cost 120,283 109,763 9,276 5,337 Measured at fair value through other comprehensive income 16,082 27,889 22,480 22,543 Measured at fair value through profit or loss 2,749 2,723 62 123 Deferred tax assets 1,748 1,384 701 682 Current income tax receivables 1 1 46 46 Other receivables 2,922 2,551 1,568 1,556 Other assets 373 257 159 105 Cash and cash equivalents 13,041 11,287 1,565 4,063 Total assets 356,448 352,330 104,672 101,730 Equity and liabilities Pekao Group Alior Bank Group 31 March 2026 31 December 2025 31 March 2026 31 December 2025 Equity Equity attributable to equity holders of the parent company 36,124 35,444 13,122 12,976 Share capital 263 263 1,306 1,306 Other capital 25,853 26,403 8,972 9,225 Retained earnings 10,008 8,778 2,844 2,445 Non-controlling interest 15 14 - - Total equity 36,139 35,458 13,122 12,976 Liabilities Subordinated liabilities 5,717 5,642 - - Liabilities on the issue of own securities 19,727 20,265 2,357 2,322 Liabilities to banks 5,603 5,436 458 589 Liabilities to clients under deposits 270,633 267,259 85,350 82,557 Financial derivatives 5,257 5,805 494 337 Current income tax liabilities 295 440 55 217 Other liabilities 10,509 9,370 2,383 2,304 Provisions 2,548 2,634 451 426 Deferred income tax liabilities 20 21 2 2 Total liabilities 320,309 316,872 91,550 88,754 Total equity and liabilities 356,448 352,330 104,672 101,730 Consolidated profit and loss account for the period from 1 January to 31 March 2026 PZU Group Elimination of Pekao's data Elimination of Alior Bank's data Elimination of consolidation adjustments PZU Group without Pekao and Alior Bank Insurance service result before reinsurance 1,450 - - - 1,450 Insurance revenue 7,776 - - - 7,776 Insurance service expenses (6,326) - - - (6,326) Net income or expenses from reinsurance contracts held (313) - - - (313) Reinsurance premium allocation (457) - - - (457) Amounts recoverable from reinsurers 144 - - - 144 Insurance service result 1,137 - - - 1,137 Insurance finance income or expenses (399) - - - (399) Finance income or expenses from reinsurance 73 - - - 73 Interest income calculated using the effective interest rate, and equalized to them 6,663 (4,462) (1,627) 66 640 Other net investment income 190 (71) 54 (6) 167 Result from derecognition of financial instruments and investments not measured at fair value through profit or loss 2 6 (4) - 4 Result from allowances for expected credit losses (335) 201 114 - (20) Net movement in fair value of assets and liabilities measured at fair value (15) 48 (86) - (53) Revenue from commissions and fees 1,417 (1,081) (289) 65 112 Fee and commission expenses (322) 256 71 (6) (1) PZU Group's non-insurance operating expenses (3,332) 2,064 725 (125) (668) Interest expenses (1,574) 1,158 375 (13) (54) Legal risk costs of foreign currency mortgage loans (60) 22 38 - - Other operating income 495 (50) (69) 22 398 Other operating expenses (195) 66 62 (3) (70) Operating profit 3,745 (1,843) (636) - 1,266 Share of the net financial results of entities accounted for using the equity method 1 (2) - - (1) Profit before tax 3,746 (1,845) (636) - 1,265 Income tax (1,129) 614 237 - (278) Net profit 2,617 (1,231) (399) - 987 - profit attributable to the equity holders of the Parent Company 1,362 (248) (127) - 987 - profit attributable to holders of non-controlling interests 1,255 (983) (272) - - Consolidated profit and loss account for the period from 1 January to 31 March 2025 PZU Group Elimination of Pekao's data Elimination of Alior Bank's data Elimination of consolidation adjustments PZU Group without Pekao and Alior Bank Insurance service result before reinsurance 1,454 - - - 1,454 Insurance revenue 7,533 - - - 7,533 Insurance service expenses (6,079) - - - (6,079) Net income or expenses from reinsurance contracts held (203) - - - (203) Reinsurance premium allocation (500) - - - (500) Amounts recoverable from reinsurers 297 - - - 297 Insurance service result 1,251 - - - 1,251 Insurance finance income or expenses (445) - - - (445) Finance income or expenses from reinsurance (49) - - - (49) Interest income calculated using the effective interest rate, and equalized to them 7,253 (4,908) (1,762) 67 650 Other net investment income (116) (62) 26 (9) (161) Result from derecognition of financial instruments and investments not measured at fair value through profit or loss 14 (8) (7) - (1) Result from allowances for expected credit losses (280) 157 125 - 2 Net movement in fair value of assets and liabilities measured at fair value 672 (44) (13) - 615 Revenue from commissions and fees 1,244 (943) (271) 54 84 Fee and commission expenses (280) 215 69 (4) - PZU Group's non-insurance operating expenses (3,003) 1,858 695 (109) (559) Interest expenses (2,010) 1,494 476 (15) (55) Legal risk costs of foreign currency mortgage loans (66) 49 17 - - Other operating income 426 (53) (31) 20 362 Other operating expenses (155) 48 28 (4) (83) Operating profit 4,456 (2,197) (648) - 1,611 Share of the net financial results of entities accounted for using the equity method (2) 2 - - - Profit before tax 4,454 (2,195) (648) - 1,611 Income tax (1,018) 507 167 - (344) Net profit 3,436 (1,688) (481) - 1,267 - profit attributable to the equity holders of the Parent Company 1,760 (339) (154) - 1,267 - profit attributable to holders of non-controlling interests 1,676 (1,349) (327) - - Statement of comprehensive income Pekao Group Alior Bank Group 1 January - 31 March 2026 1 January- 31 March 2025 1 January - 31 March 2026 1 January- 31 March 2025 Net profit 1,231 1,688 399 481 Net other comprehensive income (550) 390 (253) 160 Subject to subsequent reclassification to profit or loss (516) 336 (252) 160 Valuation of debt instruments (192) 115 (214) 69 Reclassification of debt instruments valuation for the profit and loss account 5 (8) (6) (3) Cash flow hedging (476) 308 (112) 131 Income tax on items subject to subsequent transfer to profit or loss 147 (79) 80 (37) Not to be reclassified to profit or loss in the future (34) 54 (1) - Valuation of equity instruments (44) 67 (2) - Income tax on items not subsequently transferred to profit or loss 10 (13) 1 - Total net comprehensive income 681 2,078 146 641 Cash flow statement Pekao Group Alior Bank Group 1 January - 31 March 2026 1 January- 31 March 2025 1 January - 31 March 2026 1 January- 31 March 2025 Net cash flows from operating activities 720 3,558 1,309 2,251 Net cash flows from investing activities 1,248 2,734 (3,801) 287 Net cash flows from financing activities (268) (2,559) (20) 713 Total net cash flows 1,700 3,733 (2,512) 3,251 Dividend-related information Pekao Alior Bank 1 January - 31 March 2026 1 January- 31 March 2025 1 January - 31 March 2026 1 January- 31 March 2025 Date of ratifying the dividend - 24 April 2025 29 April 2026 - Record date - 7 May 2025 13 May 2026 - Dividend payment date - 23 May 2025 27 May 2026 - Dividend per share (PLN) - 18.36 8.93 - Dividend attributable to PZU Group - 965 372 - Dividend attributable to non-controlling interest - 3,854 794 - Shareholder structure As at the date of submission of this interim report, PZU's shareholding structure, including shareholders holding at least 5% of votes at the General Meeting of PZU, was as follows: No. Shareholder's name Number of shares and votes at the General Meeting of Shareholders Percentage held in the share capital and in the total number of votes at the General Meeting of Shareholders 1 State Treasury 295,217,300 34.1875% 2 Other shareholders 568,305 700 65.8125% Total 863,523,000 100% The State Treasury, holding 34.1875% of PZU shares entitling it to 34.1875% of votes at the PZU General Meeting, controls PZU within the meaning of IFRS 10. Indication of changes in the ownership structure of significant shareholdings in the issuer During the three-month period ended 31 March 2026, there were no transactions resulting in changes to the ownership structure of significant PZU equity stakes, except for the transaction described below. As a result of the PZU share sale transaction on 9 March 2026, the total stake of BlackRock, Inc. in the share capital and in the total number of votes at the PZU General Meeting, as of 12 March 2026, fell below 5% and amounted to 4.98%. Shares or rights to shares held by persons managing or supervising PZU Number of PZU shares held by PZU Management Board Members and PZU Supervisory Board Members 13 May 2026 25 February 2026 PZU Management Board Members Maciej Fedyna 300 300 Tomasz Tarkowski 830 830 Jan Zimowicz 1,520 1,520 PZU Supervisory Board Members Jarosław Antonik 150 150 Other members of the Management Board and Members of the Supervisory Board did not hold PZU shares or rights to them either at the date of conveying this interim report or at the date of conveying the annual report for 2025. Key management Key management personnel, within the meaning of IAS 24, in the PZU Group are considered to be the Management Board of the parent company, Directors of the PZU Group at PZU and PZU Życie and Members of the Management Boards of Pekao and Alior Bank. The positions of the Directors of the PZU Group within PZU and PZU Życie are entrusted either to individuals who simultaneously perform the functions of Management Board Members at PZU Życie or PZU, or to individuals who are not simultaneously Management Board Members at PZU Życie or PZU. The Management Boards of PZU and PZU Życie, as well as the Directors of the PZU Group within PZU and PZU Życie, ensure a consistent and efficient governance model, based on a functional division of responsibilities for the respective areas of the companies' operations. The Directors of the PZU Group in PZU generally oversee areas that are analogous to the areas they supervise at PZU Życie in their capacities as Members of the Management Board or as PZU Group Director. Members of the Management Boards of Pekao and Alior Bank are responsible for planning, managing and controlling processes that affect the balance sheet total and financial results of these banks. Due to the significant share of these values in the balance sheet total and consolidated financial result of the PZU Group, a decision was made to recognize Members of the Management Boards of Pekao and Alior Bank as key management personnel of the PZU Group. Management Board of the Parent Company From 1 January 2026, the composition of the Management Board of PZU was as follows: Bogdan Benczak - President of the PZU Management Board; Maciej Fedyna - Member of the PZU Management Board; Bartosz Grześkowiak - Member of the PZU Management Board; Elżbieta Häuser-Schöneich - Member of the PZU Management Board; Tomasz Kulik - Member of the PZU Management Board; Tomasz Tarkowski - Member of the PZU Management Board; Jan Zimowicz - Member of the PZU Management Board. In connection with the expiry, on 31 December 2025, of the term of office covering three full financial years 2023-2025, on 14 April 2026 the Supervisory Board of PZU adopted a resolution to dismiss the Management Board of PZU composed of: Bogdan Benczak, Maciej Fedyna, Bartosz Grześkowiak, Elżbieta Häuser Schöneich, Tomasz Kulik, Tomasz Tarkowski and Jan Zimowicz and declared the expiration of their existing mandate. The dismissal resolution came into force upon its adoption. On 14 April 2026, the Supervisory Board of PZU adopted a resolution to appoint Bogdan Benczak to the Management Board of PZU for a new term of office, entrusting him with the function of President of the Management Board of PZU. On 14 April 2026, the Supervisory Board of PZU adopted resolutions regarding the appointment of Maciej Fedyna, Elżbieta Häuser-Schöneich, Tomasz Tarkowski, Jan Zimowicz, Kazimierz Karolczak, and Rafał Kiliński to the Management Board of PZU for the new term. The appointment of all of the above-mentioned individuals is for the joint term commencing upon the entry into force of the resolution regarding the appointment of the President of the Management Board of PZU and covering three full financial years, 2027-2029. In the case of Kazimierz Karolczak, the appointment resolution entered into force on 22 April 2026, and in the case of Rafał Kiliński, it will enter into force on 18 May 2026. For the remaining individuals, the appointment resolutions entered into force upon their adoption. From 22 April 2026 to the date of signing the condensed interim consolidated financial statements, the PZU Management Board consisted of the following persons: Bogdan Benczak - President of the PZU Management Board; Maciej Fedyna - Member of the PZU Management Board; Elżbieta Häuser-Schöneich - Member of the PZU Management Board; Kazimierz Karolczak - Member of the PZU Management Board; Tomasz Tarkowski - Member of the PZU Management Board; Jan Zimowicz - Member of the PZU Management Board. PZU Group Directors As of 1 January 2026, the positions of PZU Group Directors were held by: In PZU - who are Members of the Management Board of PZU Życie: Artur Fromberg; Michał Kopyt; Katarzyna Majewska; Michał Świtalski; Iwona Wróbel; In PZU Życie - who are Members of the Management Board of PZU: Bartosz Grześkowiak; Elżbieta Häuser-Schöneich; Jan Zimowicz; In PZU and PZU Życie - who are not simultaneously Members of the Management Board: Andrzej Mikosz; Rafał Cegieła (only in PZU). On 14 April 2026, due to the expiration of his mandate as a Member of the Management Board of PZU (following dismissal by the Supervisory Board of PZU - the end of the PZU Management Board's term), Bartosz Grześkowiak ceased to hold the position of PZU Group Director at PZU Życie. On 21 April 2026, due to the expiry of the mandate of the President of the Management Board at PZU Życie (following dismissal by the Supervisory Board of PZU Życie - end of the term of the Management Board of PZU Życie), Katarzyna Majewska ceased to hold the position of PZU Group Director at PZU, with the simultaneous performance of the function of a Member of the Management Board of PZU Życie. From 22 April 2026, Katarzyna Majewska hold the position of Director of PZU Group at PZU and PZU Życie. On 23 April 2026, the Management Board of PZU adopted resolutions regarding the appointment of Agnieszka Gocałek and Marcin Mikos to the positions of PZU Group Directors at PZU (in connection with their appointment as Members of the Management Board of PZU Życie). In the case of Agnieszka Gocałek, the resolution entered into force with effect from 21 April 2026, and in the case of Marcin Mikos, with effect from 27 April 2026. On 24 April 2026, the Management Board of PZU Życie adopted a resolution appointing Kazimierz Karolczak to the position of PZU Group Director at PZU Życie (in connection with his appointment as Member of the Management Board of PZU). The resolution entered into force with effect from 22 April 2026. From 27 April 2026 until the date of signing the interim condensed consolidated financial statements, the positions of PZU Group Directors were held by: In PZU - who are Members of the Management Board of PZU Życie: Artur Fromberg; Agnieszka Gocałek; Michał Kopyt; Marcin Mikos; Michał Świtalski; Iwona Wróbel; In PZU Życie - who are Members of the Management Board of PZU: Elżbieta Häuser-Schöneich; Kazimierz Karolczak; Jan Zimowicz; In PZU and PZU Życie - who are not simultaneously Members of the Management Board: Katarzyna Majewska; Andrzej Mikosz; Rafał Cegieła (only in PZU). Pekao Management Board On 31 March 2026, the composition of the Pekao Management Board was as follows: Cezary Stypułkowski, Marcin Gadomski, Łukasz Januszewski, Michał Panowicz, Robert Sochacki, Błażej Szczecki, Dagmara Wojnar, Marcin Zygmanowski. Alior Bank Management Board On 31 March 2026, the composition of the Alior Bank Management Board was as follows: Piotr Żabski, Marcin Ciszewski, Jacek Iljin, Wojciech Przybył, Beata Stawiarska, Zdzisław Wojtera. Supervisory Board of the parent company From January 1, 2026, the PZU Supervisory Board consisted of the following persons: Marcin Kubicza - Chairman of the Supervisory Board; Małgorzata Kurzynoga - Vice Chairman of the Supervisory Board; Anna Machnikowska - Secretary of the Supervisory Board; Jaroslaw Antonik - Member of the Supervisory Board; Anita Elżanowska - Member of the Supervisory Board; Michał Jonczynski - Member of the Supervisory Board; Andrzej Kaleta - Member of the Supervisory Board; Kazimierz Karolczak - Member of the Supervisory Board; Beata Stelmach - Member of the Supervisory Board; Maciej Szwarc - Member of the Supervisory Board; Adam Uszpolewicz - Member of the Supervisory Board. Kazimierz Karolczak submitted his resignation from the position of Member of the Supervisory Board of PZU, effective 14 April 2026. Adam Uszpolewicz submitted his resignation from the position of Member of the Supervisory Board of PZU, as of 7 May 2026. From 7 May 2026 until the date of signing the condensed interim consolidated financial statements, composition of the Supervisory Board of PZU was as follows: Marcin Kubicza - Chairman of the Supervisory Board; Małgorzata Kurzynoga - Vice Chairman of the Supervisory Board; Anna Machnikowska - Secretary of the Supervisory Board; Jaroslaw Antonik - Member of the Supervisory Board; Anita Elżanowska - Member of the Supervisory Board; Michał Jonczynski - Member of the Supervisory Board; Andrzej Kaleta - Member of the Supervisory Board; Beata Stelmach - Member of the Supervisory Board; Maciej Szwarc - Member of the Supervisory Board. Key accounting policies, key estimates and judgments Detailed accounting policies and critical estimates and judgments are presented in the consolidated financial statements of the PZU Group for 2025. The accounting policies and calculation methods used in these condensed interim financial statements are the same as those used in the consolidated financial statements of the PZU Group for 2025. In accordance with IAS 34, the PZU Group has included in the condensed interim consolidated financial statements the principle of recognizing income tax expense on the basis of the best possible estimate of the weighted average annual income tax rate that the PZU Group expects to incur in the full fiscal year. The PZU Group decided to apply, from 1 April 2026, the principles of IFRS 9 regarding hedge accounting for all hedging relationships, except for those hedging the fair value of a portfolio of financial assets or liabilities against interest rate risk, where the hedged item is designated as a cash amount. In accordance with the requirements of IFRS 9, the standard was applied prospectively and does not require restatement of comparative periods. No amounts are recognized that would impact the income statement or the PZU Group's equity solely as a result of the transition to the new standard. Amendments to the applied IFRS Standards, interpretations and amendments to standards effective from 1 January 2026 The following amendments to standards have been applied to the condensed interim consolidated financial statements. Name of standard/ interpretation Comment Approved by Regulation 2025/1047, as amended by Regulation 2025/1266. The amendments are in response to emerging concerns in the application of the standards and include, among others: system; Amendments to IFRS 9 and IFRS 7 - changes in classification and measurement of financial instruments o contractually linked instruments - the issuer may prioritize payments using multiple contractually linked instruments, leading to concentration of credit risk (so-called "tranches"). The amendment indicates that a key element that distinguishes contractually linked agreements from other non-recourse instruments is the cascading payment structure, resulting in a disproportionate allocation of cash shortfalls between tranches. The amendment also points out that not all transactions with multiple debt instruments meet the criteria for transactions with multiple contractually related instruments, and points out examples. It further clarifies that reference to instruments in the underlying pool may include financial instruments outside the scope of IFRS 9. clarification of the timing of recognition and discontinuation of recognition of financial assets and liabilities, including a new exception for financial liabilities settled by electronic transfer - if certain criteria are met, the amendments allow an entity to cease recognizing a financial liability (or part thereof) that will be settled using an electronic payment system, before the payment settlement date. An entity that chooses this option will be obliged to apply the selected approach to all settlements made by the same electronic payment clarifications and additional guidance clarifying whether financial assets meet the criteria of the principal and interest flow test (SPPI test) - the amendments cover three areas considered when performing the SPPI test: contractual conditions that can change cash flows based on contingent events (e.g., a change in interest rates dependent on specific ESG criteria); terms of non-recourse instruments (instruments in which the right of the instrument holder to receive cash flows is contractually limited to a specific asset) - the existence of such terms does not automatically exclude compliance with the SPPI test, but requires in-depth analysis; new disclosures for instruments whose contractual terms change the distribution over time or the amount of contractual cash flows based on contingencies not directly related to changes in underlying costs and credit risk (e.g., instruments with features relating to the level of achievement of environmental, social and governance (ESG) goals); Name of standard/ interpretation Comment comprehensive income (among other things, the need for separate presentation of gain or loss on instruments held at period end and those for which recognition has been discontinued); Amendments to standards had no significant effect on the consolidated financial statements. Annual updates - 11th edition Approved by Regulation 2025/1331. The updates include changes to 5 standards: IAS 7, which stems from the use of the term "cost method," which is no longer used in IFRS. Amendments to standards had no significant effect on the consolidated financial statements. amendment of disclosure requirements for equity instruments designated at fair value through other for environmentally dependent electricity contracts, often taking the form of power purchase agreements: clarify the application of the "for personal use" requirements; allow the use of hedge accounting if such contracts are used as hedging instruments; introduce new disclosure requirements to enable investors to understand the impact of such agreements on an entity's financial results and cash flows. IFRS 1 - hedge accounting upon first-time adoption of IFRS - the amendment addresses a potential concern arising from inconsistent provisions between paragraph B6 of IFRS 1 and the hedge accounting requirements of IFRS 9. IFRS 7: gain or loss on discontinued recognition - the amendment addresses a potential ambiguity in paragraph B38 of IFRS 7, arising from an outdated reference to the paragraph, which was removed from the standard with the issuance of IFRS 13; disclosure of deferred differences between fair value and transaction price - the amendment addresses inconsistencies between paragraph 28 of IFRS 7 and the accompanying implementation guidance, which arose when the implementation of IFRS 13 amended paragraph 28 but did not change the implementation guidance; credit risk introduction and disclosures - the amendment addresses a potential concern by clarifying in paragraph IG1 that the guidance does not necessarily illustrate all the requirements of the referenced paragraphs of IFRS 7 and by simplifying some of the explanations. IFRS 9: discontinuation of recognition of lessee's lease obligations - the amendment addresses a potential ambiguity in the application of IFRS 9 requirements to recognize the expiration of a lessee's liability, which arises due to the fact that paragraph 2.1(b)(ii) of IFRS 9 contains a reference to paragraph 3.3.1, but does not contain a reference to paragraph 3.3.3 of IFRS 9; transaction price - the amendment addresses a potential ambiguity arising from the reference in Appendix A to IFRS 9 to the definition of "transaction price" in IFRS 15, while the term "transaction price" is used in individual paragraphs of IFRS 9 with a meaning that is not necessarily consistent with the definition of the term in IFRS 15. IFRS 10 - definition of "de facto agent" - the amendment addresses a potential concern arising from inconsistencies between paragraphs B73 and B74 related to an investor's determination of whether another party is acting on its behalf, by aligning the wording in both paragraphs. IAS 7 - cost method - the amendment addresses a potential ambiguity in the application of paragraph 37 of Standards and interpretations and amendments to standards issued, not yet effective Approved by European Commission Regulation - coming into force on 1 January 2027 Name of standard/ interpretation Comment IFRS 18 - Presentation and disclosures in financial statements Approved by Regulation 2026/338. IFRS 18 to replace IAS 1 - Presentation of Financial Statements The new standard aims to improve information on the financial performance of entities. The new requirements include, among others: Some of the requirements will remain unchanged from IAS 1. Some of the requirements will be transferred from IAS 1 to IAS 8. Modifications will also be made to IAS 7 and IAS 34. The application of the new standard will affect the structure of the primary financial statements (the consolidated profit and loss account and the consolidated cash flow statement), as well as the disclosures presented in the consolidated financial statements of the PZU Group. PZU Group is in the process of analyzing this impact. presentation of the profit and loss account, in particular the disclosure of specific totals and subtotals - all income and expenses will have to be classified into one of five categories - operating, investment, finance, income tax and discontinued operations. The presentation of the operating result, the result before financing and income tax and profit or loss will be compulsory; the performance measures used by management, defining them as subtotals that the entity uses in external communications, outside the financial statements, presenting a management perspective on the performance of the entity. IFRS 18 will require disclosure of all of an entity's performance measures in a single note, including how the measure was calculated, its value in use and a reconciliation to the most comparable value, in accordance with IFRS 18; guidelines on aggregation and disaggregation of financial information. Not approved by the European Commission Name of standard/ interpretation Comment IFRS 19 - Subsidiaries not accountable to the public - Disclosures Date of issue by the IASB: 9 May 2024 as amended on 21 August 2025. Planned effective date according to IASB: 1 January 2027. The new IFRS 19 standard allows subsidiaries to limit the scope of disclosures when applying IFRS in their financial statements. This entitlement is available to entities: The application of IFRS 19 is optional. The disclosure requirements in IFRS 19 are a reduced version of the disclosure requirements in other IFRSs. An authorized subsidiary applying IFRS 19 is required to apply the requirements of other IFRS accounting standards regarding recognition, measurement and presentation requirements. The new standard will not affect the PZU Group's consolidated statements. Amendments to IAS 21 -The effects of changes in foreign exchange rates -Conversion into a hyperinflationary presentation currency Date of issue by the IASB: 13 November 2025. Planned effective date according to IASB: 1 January 2027. The amendment provides guidance on converting financial statements from a non-hyperinflationary currency to a hyperinflationary currency. The amendment aims to reduce the diversity of practices and provide clear foundations for reporting in a hyperinflationary currency. The amendment will not affect the PZU Group's consolidated financial statements. which are not publicly accountable, i.e. do not hold shares or listed debt instruments and do not hold assets in a fiduciary capacity to a wide range of outsiders; the parent company of which applies IFRS in its consolidated financial statements. Use of estimates and assumptions The PZU Group has evaluated the estimates and assumptions made that affect the value of its individual assets and liabilities, as well as income and expenses presented in the condensed interim financial statements. Given the uncertainty of further economic developments, in particular due to the ongoing armed conflicts in Ukraine and the Middle East, the estimates made may change in the future. Uncertainties relate primarily to projections of macroeconomic assumptions, in particular those relating to key economic indicators (inflation, market interest rate levels, the level of the expected economic downturn, GDP, employment, housing prices, possible disruptions to capital markets), possible disruptions to activity resulting from decisions taken by state institutions, businesses and consumers, the effectiveness of aid programs designed to support businesses and consumers, and the development of mortality and other insurance risks. Judgments in exercising control In order to determine whether PZU Group has rights that are sufficient to give it power, that is practical ability to direct the relevant activities unilaterally, the PZU Group analyzes among others: how many votes it holds at the shareholder meeting and whether it holds more votes than other investors (including potential voting rights and rights resulting from other contractual arrangements); how many entities would have to act together in order to outvote the PZU Group; distribution of votes at previous general meetings to analyze the activity or inactivity of other shareholders; if the key personnel of the entity or members of the investee's governing body are related parties of the PZU Group; capacity to appoint members of management and supervisory bodies of the entity; commitments, if any, to ensure that an investee continues to operate as designed; capacity to obligate the entity to perform or prevent it from performing significant transactions; other prerequisites. The analysis of prerequisites for exercising control over Pekao and Alior Bank is presented in the table below. Criterion Pekao Alior Bank Share in votes at the shareholder meeting 20.02% 31.93% Shareholder agreements On 23 January 2017, PZU and PFR (holding 12.8% of Pekao's share capital) signed a Shareholder Agreement to build Pekao's long-term value, implement a policy aimed at ensuring Pekao's development, financial stability and effective and prudent management. It defines the rules of cooperation between PZU and PFR, in particular pertaining to joint exercise of voting rights from the shares held and the implementation of a common long-term policy for Pekao's business. The Shareholder Agreement provides for the possibility of having real influence on Pekao's operating policies. An annex of 30 March 2023 added a new area of cooperation to the scope of the Agreement regarding non-financial sustainability reporting requirements. On 14 May 2025, an annex was signed extending the Shareholder Agreement until 7 June 2030, with the possibility of further extensions. The Management Board of PZU does not have any information about any agreements that may have been concluded between Pekao's other shareholders. The PZU Group has not entered into agreements with other shareholders of Alior Bank. The Management Board of PZU also does not have any information about any agreements that may have been concluded between Alior Bank's other shareholders. Other shareholders Three shareholders hold a stake of more than 5%, accounting in total for 16% shares. The remaining shareholders are dispersed and a significant number of entities would have to take concerted action to outvote PZU at the shareholder meeting. The provisions of paragraphs B73 - B75 of IFRS 10 and ESMA's guidance indicate that votes held by entities under the control of the same entity as PZU should also be considered when analyzing voting rights held, even if there are no formal agreements on joint voting. Although there are no formal agreements with other Treasury-related parties, PZU accepts that such parties may be "de facto agents" within the meaning of IFRS 10.B73. General Meeting resolutions necessary for the day-to-day management of Pekao's important activities are adopted by a simple majority. A qualified majority is required only for special matters (such as amending the charter) that exceed the scope of the day-to-day management of the entity. An analysis of attendance at past general meetings shows that it did not exceed 75% of those eligible to vote, which demonstrates the passive attitude of some shareholders, so that at past general meetings, since the acquisition of Pekao, PZU has been able to vote on the draft resolutions it proposed. Three shareholders hold a stake of more than 5%, accounting in total for 23% shares. The remaining shareholders are dispersed and a significant number of entities would have to take concerted action to outvote PZU at the shareholder meeting. The provisions of paragraphs B73 - B75 of IFRS 10 and ESMA's guidance indicate that votes held by entities under the control of the same entity as PZU should also be considered when analyzing voting rights held, even if there are no formal agreements on joint voting. Although there are no formal agreements with other Treasury-related parties, PZU accepts that such parties may be "de facto agents" within the meaning of IFRS 10.B73. General Meeting resolutions necessary for the day-to-day management of Alior Bank's important activities are adopted by a simple majority. A qualified majority is required only for special matters (such as amending the charter) that exceed the scope of the day-to-day management of the entity. An analysis of attendance at past general meetings shows that it did not exceed 74% of those eligible to vote, which demonstrates the passive attitude of some shareholders, so that at past general meetings, since the acquisition of Alior Bank, PZU has been able to vote on the draft resolutions it proposed. PZU representatives in governing bodies Supervisory Board members include persons fulfilling key management functions at PZU. Most members of the Supervisory Board were proposed by PZU or PFR. Supervisory Board members include persons fulfilling key management functions at PZU. Most of the Supervisory Board members were nominated by the PZU Group. In the light of the above evidence, it has been determined that the PZU Group exercises control both over Pekao (since 7 June 2017) and over Alior Bank (since 18 December 2015) and over their subsidiaries and therefore they were consolidated. The above conclusion is based on a cyclical analysis of the audit, taking into account changing facts and circumstances, and contains significant judgment. Assets and liabilities under insurance and reinsurance contracts Significant assumptions regarding the valuation of assets and liabilities under insurance and reinsurance contracts are presented in section 10.1.1. Allowance for expected credit losses In preparing the condensed interim consolidated financial statements, PZU Group took into account the economic conditions (such as market prices, interest rates or exchange rates) that existed as at the balance sheet date. Information on changes in allowance for expected credit losses is presented in section 10.27. Goodwill PZU Group did not recognize any goodwill impairment losses in the 3-month period ended 31 March 2026. Provision for potential reimbursements of loan costs PZU Group monitors, on an ongoing basis, the value of estimated amounts resulting from prepaid consumer loans and, in the calculation of the provision for potential loan refunds, takes into account the most recent data on incoming claims and refund amounts. Detailed information on this subject is presented in section 10.37. Legal risk provision for foreign currency mortgage loans in foreign currencies As at 31 March 2026, the PZU Group assessed the probability of an impact of a legal risk of foreign currency mortgages on future expected cash flows from credit exposures and the probability of cash outflows. Key elements of the estimate include a projection of the total scale and duration of litigation, the expected financial impact of future judgments, including statutory interest costs, and consideration of the borrower settlement program. For more information thereon please see section 10.37. Major events that have a significant impact on the structure of items of the financial statements In the 3-month period ended 31 March 2026, there were no events that resulted in any significant change to the structure of financial statement line items. Correction of errors from previous years In the 3-month period from 1 January to 31 March 2026, no corrections of errors from previous years were made.

View stock analysis, news, and events for Powszechny Zaklad Ubezpieczen Spolka Akcyjna