48.2 Related party transactions concluded by PZU or subsidiaries on terms other than based on the arm’s length principle

In 2017, neither PZU nor its subsidiaries executed any transaction with their related parties which were of material significance individually or collectively and were executed on terms other than based on an arm’s length principle, except for those described below.

Under a framework agreement signed on 7 August 2013, PZU and PZU Życie grant each other cash loans in PLN for a specified term of up to 12 months. The total amount of loans granted by each party may not exceed PLN 1 billion. The loans are not granted on the arm’s length basis - no interest is accrued on the loans, and for granting the loan the lender is entitled to a commission in the amount of PLN 100 for each concluded loan agreement - however due to participation of both companies in the Tax Group, they are neutral from tax perspective. In 2017, PZU Życie granted one such loan (on 2 June 2017 in the amount of PLN 500 million, which was repaid on 27 June 2017).