CAPITAL GROUP OF POWSZECHNY ZAKŁAD UBEZPIECZEŃ SPÓŁKA AKCYJNA

CAPITAL GROUP OF POWSZECHNY ZAKŁAD UBEZPIECZEŃ SPÓŁKA AKCYJNA CONSOLIDATED FINANCIAL DATA FOR THE YEAR ENDED DECEMBER 31, 2007 PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

TABLE OF CONTENTS CONSOLIDATED BALANCE SHEET... 3 CONSOLIDATED INCOME STATEMENT... 5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY... 6 CONSOLIDATED CASH FLOW STATEMENT... 8 DESCRIPTION OF SIGNIFICANT DIFFERENCES BETWEEN PAS AND IFRS... 9 2

CONSOLIDATED BALANCE SHEET Assets December 31, 2007 December 31, 2006 Intangible assets 92 445 102 027 Goodwill on consolidation 23 178 26 322 Property, plant and equipment 1 248 941 1 215 083 Investment property 294 564 295 520 Financial assets Held-to-maturity investments 20 175 968 18 230 364 Available-for-sale financial instruments 11 353 593 8 690 861 Financial instruments at fair value through profit or loss 14 332 980 13 173 362 Loans and receivables 3 503 794 5 912 088 Receivables, including insurance receivables 1 272 745 1 361 148 Reinsurers share in technical provisions 1 030 469 1 201 237 Estimated salvages and subrogations 52 087 51 558 Deferred tax assets 9 570 9 832 Current income tax receivables 89 90 161 Deferred acquisition costs 452 230 408 053 Prepayments 254 763 194 769 Other assets 11 579 14 605 Cash and cash equivalents 573 358 342 685 Assets related to continuing activities 54 682 353 51 319 675 Non-current assets held for sale and disposal groups - 9 523 Total assets 54 682 353 51 329 198 3

CONSOLIDATED BALANCE SHEET (cont.) Equity and liabilities December 31, 2007 December 31, 2006 Equity Issued share capital and other capital attributable to the equity holders of the parent company Share capital 86 352 86 352 Other capital Reserve capital 13 058 343 7 869 693 Revaluation reserve 247 442 281 609 Cumulative exchange differences on translation of foreign entities (17 954) (2 072) Retained earnings Accumulated profits (losses) from previous years 901 424 2 538 865 Net profit (loss) for the period 3 560 336 3 551 209 Minority interest 147 144 Total equity 17 836 090 14 325 800 Liabilities Technical provisions Unearned premium provision and unexpired risk provision 3 969 376 3 708 048 Life insurance (mathematical) provision s 15 690 524 16 205 201 Outstanding claims provisions 4 289 298 4 197 657 Annuities provisions 4 083 236 3 799 969 Provisions for bonuses and rebates for the insured 1 474 2 581 Other technical provisions 867 728 996 169 Technical provisions in unit-linked life insurance 1 964 985 1 838 113 Investment contracts - with guaranteed and defined terms 524 214 570 296 - at the account and risk of policyholder 2 572 871 1 785 011 Employee benefits provision 266 983 241 892 Other provisions 192 918 44 944 Deferred tax liability 402 828 580 162 Current income tax liability 496 972 334 150 Derivative financial instruments 16 424 31 316 Other liabilities 667 612 2 031 490 Accruals and deferred income Accrued costs 623 444 542 176 Deferred income 215 376 94 223 Liabilities relating to continuing activities 36 846 263 37 003 398 Liabilities relating to non-current assets held for sale and disposal groups - - Total liabilities 36 846 263 37 003 398 Total equity and liabilities 54 682 353 51 329 198 4

CONSOLIDATED INCOME STATEMENT Consolidated income statement January 1, 2007 - January 1, 2007 December 31, 2007 December 31, 2006 Gross premium written in property and casualty insurance 8 193 256 7 863 265 Reinsurers share in gross premium written in property and casualty insurance (171 340) (158 640) Gross premium written in life insurance 5 883 867 5 800 929 Reinsurers share in gross premium written in life insurance (9 047) (8 402) Net premium written 13 896 736 13 497 152 Movements in unearned premium provision in property and casualty insurance (283 737) (38 265) Reinsurers share in unearned premium provision in property and casualty insurance 34 760 (148 385) Movements in unearned premium provision in life insurance 2 150 (1 952) Reinsurers share in unearned premium provision in life insurance - - Net change in unearned premium provision (246 827) (188 602) Net premiums earned 13 649 909 13 308 550 Fee and commission income 316 849 250 882 Net income from financial assets 1 826 963 1 786 349 Realized gains and losses and impairment losses on financial assets 727 445 615 331 Net change in the value of financial assets or liabilities re-measured to fair value 111 047 1 063 939 Other operating income 176 837 180 452 Claims and benefits paid out and movements in technical provisions in property and casualty insurance (5 000 039) (4 581 522) Reinsurers share in claims and benefits paid out and in movements in technical provisions in property and casualty insurance 1 005 245 055 Claims and benefits paid out and movements in technical provisions in life insurance (3 409 585) (4 492 221) Reinsurers share in claims and benefits paid out and in movements in technical provisions in life insurance - (39) Net claims and benefits paid out (8 408 619) (8 828 727) Expenses in pension insurance (122 350) (102 218) Investment benefits (86 750) (172 240) Acquisition costs (1 489 643) (1 423 456) Administrative expenses (1 696 325) (1 766 506) Other operating expenses (582 883) (472 571) Operating result 4 422 480 4 439 785 Finance costs - - Share in the net profits/ (losses) of entities accounted for using the equity method - - Gross result 4 422 480 4 439 785 Corporate income tax - current (1 031 008) (973 565) - deferred 168 877 84 899 Net result from continuing operations 3 560 349 3 551 119 Net result from discontinued operations and on re-measurement to fair value less costs to sell of assets held for sale or disposal groups - - Net result, of which: 3 560 349 3 551 119 - result attributable to the equity holders of the parent company 3 560 336 3 551 209 - minority gains (losses) 13 (90) Net result from continuing activities 3 560 349 3 551 119 Net result from discontinued operations - - Basic and diluted weighted average number of ordinary shares 86 352 300 86 352 300 Basic and diluted earnings/ (loss) per ordinary share from continuing activities (in PLN) 41,23 41,12 Basic and diluted earnings (loss) per ordinary share from discontinued operations (in PLN) - - Basic and diluted earnings (loss) per ordinary share (in PLN) 41,23 41,12 5

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share capital Issued capital and reserves attributable to the equity holders of the parent company Reserve capital Other reserves Retained earnings Revaluation reserve Cumulative exchange differences on translation of foreign entities Accumulated profits/ (losses) from previous years Net profit/ (loss) for the year Total Minority interest Total equity Balance as at January 1, 2007 86 352 7 869 693 281 609 (2 072) 6 090 074-14 325 656 144 14 325 800 Measurement of available-for-sale financial instruments - - (34 151) - - - (34 151) - (34 151) Cumulative exchange differences on translation of foreign entities Total net increase/ (decrease) recognized directly in equity (after taxation) - - - (15 882) - - (15 882) (10) (15 892) - - (34 151) (15 882) - - (50 033) (10) (50 043) Net profit/ (loss) for the financial year - - - - - 3 560 336 3 560 336 13 3 560 349 Total increases/ (decreases) - - (34 151) (15 882) - 3 560 336 3 510 303 3 3 510 306 Other changes, of which: - 5 188 650 (16) - (5 188 650) - (16) - (16) Transfer from financial result to reserve capital - 5 188 251 - - (5 188 251) - - - - Other - 399 (16) - (399) - (16) - (16) Balance as at December 31, 2007 86 352 13 058 343 247 442 (17 954) 901 424 3 560 336 17 835 943 147 17 836 090 6

Issued capital and reserves attributable to the equity holders of the parent company Minority interest Total equity CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share capital Reserve capital Other reserves Retained earnings Revaluation reserve Cumulative exchange differences on translation of foreign entities Accumulated profits/ (losses) from previous years Net profit/ (loss) for the year Balance as at January 1, 2006 86 352 6 536 323 172 745-5 219 333-12 014 753-12 014 753 Measurement of available-for-sale financial instruments - - 108 718 - - - 108 718-108 718 Total Cumulative exchange differences on translation of foreign entities Reclassification of property from property, plant and equipment to investment property Total net increase/ (decrease) recognized directly in equity (after taxation) - - - (2 072) - - (2 072) 3 (2 069) - - 146 - - - 146-146 - - 108 864 (2 072) - - 106 792 3 106 795 Net profit/ (loss) for the financial year - - - - - 3 551 209 3 551 209 (90) 3 551 119 Total increases/ (decreases) - - 108 864 (2 072) - 3 551 209 3 658 001 (87) 3 657 914 Other changes, of which: - 1 333 370 - - (2 680 468) - (1 347 098) 231 (1 346 867) Dividend paid in the financial year - - - - (1 347 096) - (1 347 096) - (1 347 096) Issuance of own shares, of which: - - - - - - - 231 231 - non-merger issuance of shares - - - - - - - 231 231 Transfer from financial result to reserve capital - 1 333 287 - - (1 333 287) - - - - Other - 83 - - (85) - (2) - (2) Balance as at December 31, 2006 86 352 7 869 693 281 609 (2 072) 2 538 865 3 551 209 14 325 656 144 14 325 800 7

CONSOLIDATED CASH FLOW STATEMENT Consolidated cash flow statement January 1, 2007 December 31, 2007 January 1, 2006 December 31, 2006 Cash flow from operating activities Inflows 16 544 582 16 425 817 cash inflows from gross premium written 14 296 211 13 801 810 cash inflows from investment contracts 1 380 560 1 787 188 cash flows from reinsurance commissions and shares in reinsurers profits 11 404 29 973 amounts paid by reinsurers due to their share in claims paid 234 207 211 642 other operating inflows 622 200 595 204 Outflows (14 410 524) (13 489 465) premiums paid to reinsurers (163 244) (239 282) commissions paid out and share of profits from reinsurance inwards (2 163) (3 062) gross claims paid out (8 421 715) (8 071 282) benefits paid out under investment contracts (991 825) (523 464) acquisition costs (1 198 061) (1 110 451) administrative expenses (2 145 327) (1 984 197) interest expenses (176) (53) income tax expense (767 084) (683 692) other operating expenses (720 929) (873 982) Net cash flow from operating activities 2 134 058 2 936 352 Cash flow from investing activities Inflows 457 306 181 566 577 501 proceeds from investment property 24 446 21 587 sale of intangible assets and property, plant and equipment 16 067 4 029 sale of shares 7 635 147 5 774 582 realization of debt securities 14 599 268 25 753 669 liquidation of term-deposits with financial institutions 184 817 106 215 541 237 liquidation of other deposits 248 988 350 318 225 757 interest received 1 088 308 1 130 308 dividends received 120 821 115 882 other inflows from investments 16 668 10 450 Outflows (459 207 886) (568 122 092) purchase of investment property (4 095) (1 876) expenditure related to investment property maintenance (16 310) (26 098) purchase of intangible assets and property, plant and equipment (186 138) (133 571) purchase of shares (6 971 129) (5 463 425) purchase of debt securities (21 418 259) (26 423 183) purchase of term deposits with financial institutions (185 152 421) (216 031 113) purchase of other term deposits (245 396 465) (319 990 368) other expenditure related to investments (63 069) (52 458) Net cash flow from investing activities (1 901 705) (1 544 591) Cash flows from financing activities Inflows 2 795 7 463 loans and advances and issuance of debt securities 2 795 6 538 other financial inflows - 925 Outflows (3 141) (1 349 776) dividends paid to the equity holders of the parent company (341) (1 342 468) repayment of loans and advances and redemption of debt securities (2 797) (6 542) other financial outflows (3) (766) Net cash flow from financing activities (346) (1 342 313) Total net cash flow 232 007 49 448 Cash and cash equivalents at the beginning of the period 342 685 295 272 Change in cash and cash equivalents due to foreign exchange differences (1 334) (2 035) Cash and cash equivalents at the end of the period, of which: 573 358 342 685 - of restricted use 124 997 102 929 8

Description of significant differences between PAS and IFRS Presented below is a description of significant differences between the accounting policies applied for the purpose of preparing the consolidated financial statements in accordance with PAS and IFRS, which affect the consolidated financial result or the consolidated equity. 1. Valuation of property In accordance with the provisions of the Decree on specific accounting principles for insurance companies, owner-occupied property is stated at cost less any accumulated depreciation as at the balance sheet date and less any accumulated impairment losses. As at the date of transition to IFRS, the deemed cost of owner-occupied property was determined and the difference [from the acquisition cost] was taken to the Accumulated profits/ (losses) from previous years. In the ensuing reporting periods, this will result in a difference in the amount of the depreciation charge and accumulated depreciation. According to IFRS, investment property is valued at fair value determined as at the balance sheet date with any changes in the fair value during the reporting period taken to the income statement for the period 2. Perpetual usufruct right According to PAS, the perpetual usufruct right received free of charge on the basis of an administrative decision has the corresponding entry under deferred income and is subsequently amortized. According to IFRS, a free of charge receipt of assets with no additional conditions shall be recognized as income upon asset receipt, if there is no allocation key for the received assets to be assigned to other reporting periods than that in which they were received. The perpetual usufruct right has also been covered by adjustments described in Point 1. 3. Revaluation reserve In accordance with the Accounting Act and based on separate regulations relating to revaluation of property, plant and equipment in 1995, the entities of the PZU Group performed revaluations of non-current assets and recognized the resulting gains and losses in the revaluation reserve The revaluations do not meet the requirements of IAS 29. 4. Risk equalization reserve in property and casualty insurance The Decree on specific accounting policies for insurance companies defines the principles for creation and use of risk equalization reserve. This reserve does not relate to any specific obligations under insurance policy contracts. In accordance with PAS, risk equalization reserve is the cost of the current period, while in accordance with IFRS an appropriation item for the net profit. 5. Catastrophe and exceptional risk reserve in property and casualty insurance In accordance with the provisions of the Decree on specific accounting policies for insurance companies, and based on the Company s Articles of Association and the Regulations concerning technical reserves, PZU creates a catastrophe and exceptional risks reserve. This reserve does not relate to any specific obligations under insurance policy contracts. In accordance with PAS, catastrophe and exceptional risks reserve is the cost of the current period, while in accordance with IFRS an appropriation item for the net profit. 6. Technical rates in life insurance In accordance with IFRS 4, if the shareholder valued its insurance contracts with sufficient prudence, then it should not introduce any additional elements that could increase the level of the prudence already accepted. For the purpose of the consolidated financial statements prepared in accordance with Polish Accounting Standards, a decrease in technical rate for group insurance and continued employee and family insurance (type P and D ) and group life insurance, type P was made to the level of 3.30% (from 3.40%), while for the purpose of consolidated financial statements prepared in accordance with IFRSthe technical rate was left at 3.40%, i.e. the 9

same level as at December 31, 2006. The necessity to reduce the technical rate for life insurance for the purpose of the consolidated financial statements prepared in accordance with Polish Accounting Standards resulted from the level of rates published by the Polish Financial Supervision Authority. 7. Prevention fund In accordance with the Insurance Act, PZU and PZU Życie, i.e. the PZU Group companies with their registered offices in Poland, may expense amounts transferred to the prevention fund in the consolidated income statement for the current reporting period. In accordance with the Decree on specific accounting principles for insurance companies, this fund is presented in Special funds in liabilities. In accordance with IAS 37, funds of this type should not be expensed but rather treated as an item for appropriation of the net profit with simultaneous recognition of costs of prevention activities when they are incurred. 8. Valuation of equity instruments classified as financial instruments available-for-sale In accordance with PAS, certain equity instruments classified as financial instruments available-for-sale have been measured at cost less any impairment losses. In accordance with the provisions of the Accounting Act, if the reason for which the impairment loss of a financial asset was made is no longer valid, the equivalent of the whole or appropriate part of the previously recognized impairment losses increases the value of the given asset and is recognized under finance income. In accordance with the provisions of paragraph 66 of IAS 39, it is not possible to reverse impairment losses recognized on unquoted equity instruments that are measured at cost less impairment losses and for which fair value cannot be reliably determined. 9. Classification of financial assets In accordance with PAS, financial assets classified to the categories than held-for-trading may be re-classified to the held-for-trading category on the condition that there is high probability that economic benefits resulting from the contract made can be achieved in a short period of time. In accordance with IAS 39, no reclassification can be made of financial instruments to the category of financial assets at fair value through profit or loss from the moment of instrument taking up or issuance. 10. Intangible assets with indefinite useful life, including goodwill According to PAS, intangible assets with indefinite useful life are subject to amortization. In accordance with IFRS, such assets are not subject to amortization but are tested for impairment at each balance sheet date. In subsequent reporting periods, this will result in a difference in the amount of amortization charge and accumulated amortization of those assets. 11. Social Fund If the Annual General Meeting of one of the key companies of the PZU Group decides to transfer a part of its net profit for the priori year to the Social Fund, then in the consolidated financial statements prepared in accordance with PAS this fact is recognized as appropriation of the net profit for the prior year not affecting the net result for the year, in which such appropriation was made. The above transaction meets the definition of expenses under IFRS and in accordance with IAS 1 it is recognized in the consolidated income statement for the year in which such transfer to the Social Fund was made. In addition, due to the fact that transfer of a part of the prior year net profit to the Social Fund became the expected practice at certain PZU Group companies, it was assumed that as at December 31, 2007, the PZU Group companies had constructive obligation to appropriate a part of their net profit for the previous financial year to the Social Fund. As a result, the amounts transferred to the Social Fund in 2008, in the course of the 2007 profit appropriation were recognized as costs of 2007. 10

12. Deferred taxation Where appropriate, for all differences between PAS and IFRS described, the effect of deferred tax was calculated and included in the calculation of all adjustments. 13. Discounting of non-insurance provisions Non-insurance provisions have been discounted in the IFRS consolidated financial statements. These liabilities were not subject to discounting in the PAS consolidated financial statements for previous years. 14. Presentation of assets held-for-sale In accordance with IFRS 5, as at December 31, 2006, PZU classified certain elements of property, plant and equipment and investment property into Assets held-for-sale and disposable groups. 15. Minority interest According to IFRS the minority interest is presented as equity item, while accoding to PAS - it represents a separate item of equity and liabilities, however, not classified under equity or liabilities. 16. Reconciliation of equity as at December 31, 2007 and net profit for the year 2007 prepared in accordance with PAS and IFRS Description Note Net profit Equity Consolidated PAS financial data 3 600 445 16 864 989 Property valuation 1 11 347 152 312 Perpetual usufruct right 2 (3 778) 12 253 Risk equalization reserve in property and casualty insurance 4 (68 085) 398 344 Catastrophe and exceptional risk reserve in property and casualty insurance 5 (253 297) 55 083 Technical rate in life insurance 6 219 909 219 909 Prevention fund 7 17 397 118 273 Valuation of equity instruments classified as available-for-sale 8 (12 058) 22 781 Classification of financial assets 9 61 060 - Intangible assets with indefinite useful lives, including goodwill 10 7 126 11 719 Social Fund 11 (20 000) (20 000) Minority interest 15 16 147 Other 13 267 280 Total adjustments (40 096) 971 101 Consolidated IFRS financial data 3 560 349 17 836 090 17. Reconciliation of equity as at December 31, 2006 and net profit for the year 2006 prepared in accordance with PAS and IFRS Description Note Net profit Equity Consolidated PAS financial data 3 706 456 13 330 887 Property valuation 1 29 129 140 965 Perpetual usufruct right 2 15 16 031 Risk equalization reserve in property and casualty insurance 4 12 192 466 554 Catastrophe and exceptional risk reserve in property and casualty insurance 5 (123 109) 308 380 Prevention fund 7 (13 119) 100 876 Valuation of equity instruments classified as available-for-sale 8 (5 024) (15 679) Intangible assets with indefinite useful lives, including goodwill 10 5 333 7 766 Social Fund 11 (60 550) (30 150) Minority interest 15 (90) 144 Other 13, 14 (114) 26 Total adjustments (155 337) 994 913 Consolidated IFRS financial data 3 551 119 14 325 800 11