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- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
In the Chapter
GRIs
In the Chapter
GRIs
In the Chapter
GRIs
In the Chapter
GRIs
In the Chapter
GRIs
In the Chapter
GRIs
In the Chapter
Operating model
Climate
Employee
Risk and ethics
Business
In the Chapter
Operating model
Climate
Employee
CSR
Risk and ethics
Market
Business
In the Chapter
Operating model
Employee
Risk and ethics
Business
In the Chapter
Operating model
Employee
Risk and ethics
Business
In the Chapter
Operating model
Climate
Employee
CSR
Risk and ethics
Highlights
Results 2019
Business
Market
Strategy
Shares and bonds
Corporate Governance
Risk and ethics
Assets PLN 343,340 million (+4.5% y/y)
Equity attributable to the equity holders of the parent PLN 16,169 million (+8.3% y/y)
Net profit PLN 5,185 million (-3.4% y/y)
Net profit attributable to the equity holders of the parent company PLN 3,295 million (+2.6% y/y)
Gross written premium PLN 24,191 million (+3.1% y/y)
Net earned premium PLN 23,090 million (+3.3% y/y)
Net insurance claims and benefits PLN 15,695 million (+7.8% y/y)
Surplus yield on the main portfolio above RFR 2.5 p.p.
ROE attributed to the parent company 21.2% (-0.9 p.p. y/y)
Combined ratio (COR) 88.5% (+1.4 p.p. y/y)
Operating margin in group and individually continued insurance 21.3% (-0,8 p.p. y/y)
100% aided brand awareness for PZU
16 million PZU clients in Poland, 5.5 million Bank Pekao clients, 4 million Alior Bank clients
410 PZU outlets with 189 outlets in small communities
10 thousand tied agents in the PZU Group - the largest agent network among Polish insurers
>2,200 partner centers cooperating with the PZU Group at the end of 2019, 130 PZU Zdrowie’s own medical centers
805- number of Bank Pekao branches at the end of 2019, 1,648 number of own ATMs
820- own outlets and partner outlets in Alior Bank at the end of 2019
PLN 2 million for safe drivers in LINK4’s “Cash Back” telematic program in 2018-2019
12 thousand- number of employees in Bank Pekao and Alior who held a license from the Polish FSA to sell insurance at the end of 2019
400- innovative ideas submitted up to the end of 2019 in 6 competitions using the Idea Generator
85% of the PZU Group’s clients are satisfied with the claims and benefits handling process
Poland’s 2019 GDP growth accelerated to 4.1% y/y underpinned by the high and stable pace of growth in household consumption
Drop in the rate of registered unemployment in Poland in December 2019 to 5.2% from 5.8% in December 2018
7.2% growth in average monthly wages in the corporate sector in Poland in 2019 versus 7.1% in 2018
Annual average consumer price inflation (CPI) of 2.3% in 2019 versus 1.6% in 2018
Interest rates held steady by the Monetary Policy Council in 2019, reference interest rate held constant at 1.5% since 2015
Insurance penetration rate of 2.8% in Poland below the European average (7.5% in 2018)
The statistical Pole’s insurance spending was EUR 436 in 2018, or above 4 times less than the European average (EUR 1,958)
Bank loans stated as a percentage of GDP in the Polish banking system at 61% in 2018 versus the European average of 126%
Baltic States’ annualized GDP during the first three quarters of 2019: 1.9% in Latvia; 4.2% in Estonia; 3.6% in Lithuania
Deposits are the most popular form of accumulating financial assets in Poland – 85% of all households use deposits
Ukraine’s annualized GDP growth in Q3 2019 at 4.1%
PZU’s ROE substantially above the average generated by European insurers
Utilization of artificial intelligence and robotics to augment the quality of motor claims handling
Comprehensive client picture - CRM platform supporting rapid and easy access to information concerning products and services
Price optimization in real time – utilization of machine learning algorithms when setting tariffs for motor insurance products
PZU Investments sales development – inPZU expansion and integration with mojePZU
New functionalities in the moje.pzu.pl portal, mobile app launch
Development of a system to facilitate comprehensive fraud identification
PZU Zdrowie sales development – Virtual Clinic launch to support remote consultations and place orders to fill prescriptions in a selected pharmacy
Continuation of work on the project to rescue drivers’ lives – PZU GO
Universalization of the sales network – distributing PZU Życie products through PZU’s Tied Agent network
Active collaboration with banks – CASH platform launch to offer employee financial benefits
PZU’s dividend yield was 6.4%.
Dividend per share paid in 2019 was PLN 2.80
PZU’s P/E (price / earnings) at the end of 2019 was 10.5x
P/BV (price / book value) was 2.1x
PZU’s average trading value per session was PLN 67.0 million, the average number of trades per session was 3,744
Percentage of foreign investors in PZU’s shareholder structure at the end of 2019 was 35.4% with the percentage of investors from North America was 14.7%
Pekao’s dividend yield was 6.1%
Dividend per share paid in 2019 was PLN 6.60
Number of conferences for institutional investors: 16 international conferences, 4 domestic conferences, 3 non-deal roadshows in New York, Paris and Frankfurt
Number of PZU stock recommendations published in 2019: 28
Highest target price at the end of December 2019: PLN 53.00
Average target price at the end of December 2019: PLN 44.1
Percentage of open-end pension funds (OFEs) in PZU’s shareholder structure was 16.8%, while the percentage of mutual fund management companies (TFIs) was 4.2%
Financial strength and credit ratings awarded to PZU and PZU Życie by S&P Global Ratings: A- (positive)
PZU’s market capitalization at the end of 2019 was PLN 34.6 bn; Pekao’s was PLN 26.4 billion; Alior Bank’s was PLN 3.7 billion
Percentage of retail investors in PZU’s shareholder structure at the end of 2019 was 7.5%
3 Supervisory Board committees: audit committee, nomination and compensation committee, strategy committee
Women constitute 18% of the PZU Supervisory Board
Women constitute 36% of the Management Boards in PZU and PZU Życie
PZU has been a signatory of the diversity charter since 2013
863,523,000 ordinary shares with a nominal value of PLN 0.10 each forming PZU’s share capital
Long-term and stable shareholder 34.19% - the percentage of the PZU shareholder structure held by the State Treasury
Application of all the recommendations and rules expressed by 2016 best practices of public companies except for the recommendation pertaining to holding an e-shareholder meeting
PZU Group’s Code of Best Practices is a set of ethical standards and standards of conduct according to which all PZU Group employees should conduct themselves
13 Supervisory Board meetings, 16 Audit Committee meetings in 2019
Daily application of the Best Insurance Practices laying down the principles according to which insurance sector companies as institutions of social trust should conduct themselves
Endorsement and application of Corporate Governance Rules for Regulated Institutions in accordance with the 2015 declaration
Risk management prevents the acceptance of risk at a level that could pose a threat to the PZU Group’s financial stability
Stages of the risk management process: identification, measurement and assessment, monitoring and controlling, reporting and management activities
The risk management structure in the PZU Group consists of 4 levels of authority: (i) Supervisory Board, (ii) Management Board, (iii) Committees and (iv) 3 lines of defense in operating activities
Main risks in the PZU Group: actuarial, market, credit, concentration, liquidity, operating, model and compliance
The process of determining the risk appetite and risk limits for each risk category is consistent with the Group’s process as implemented in all PZU Group entities
Supervision over the risk management systems in banking sector entities (Alior and Pekao) is exercised by these banks’ supervisory boards to which PZU appoints its representatives
Risk appetite is determined at least once a year in Pekao and Alior (following consultation with the parent company) to ensure the banks’ efforts are compliant with the PZU Group’s strategic plans and business objectives
Reinsurance provides security against the adverse impact exerted by catastrophic phenomena on the PZU Group’s underwriting results
Solvency II solvency ratio 220% at the end of Q3 2019 above the average ratio generated by insurance groups in Europe
Group capital management (including excess capital) is conducted at the level of PZU as the parent company
All of PZU’s reinsurance partners hold high ratings S&P (AA, A)