The tenet underpinning the #newPZU Strategy

The PZU Group’s strategic planning is predicated on four fundamental principles: stability, honesty, innovativeness and responsibility. These are the values that form the basis for the functioning of best practices in the PZU Group (including the principles of sustainable development implemented in business processes in a broad sense) and the Group’s business strategy.

On 9 January 2018 the PZU Management Board and Supervisory Board adopted the strategy update up to 2020. The PZU Group’s new operating model has broken with the classical model of cultivating client relations based on sales and aftersales service in the direction of having frequent and high quality client interactions during every stage of life anywhere PZU can lend a helping hand. Building relations and partnerships in this line of thinking has been defined as delivering products and services well-matched to clients at the appropriate time and place so as to ensure at the same time that the product’s attributes (including its price) are aligned to client needs.

This strategy has specified how various areas within the PZU Group will be integrated to focus on clients in a way that will maximize client convenience and satisfaction. Special emphasis has been placed on analyzing the information the PZU Group has to grasp and use it better.

In order to create the appropriate business environment to attain these targets, clients interactions were redefined from scratch. This entailed an alteration to the philosophy of how the overall Group operates. Various business units have been placed in a single integrated system dedicated to providing full dimensional client service at every stage of cooperation. Client interactions were realigned to long-term partnership based on trust and understanding where a major value driver is the quality of the solutions dedicated to clients.

The strength of the #newPZU strategy lies in technological support spanning the field of innovation and encompassing nearly all the Group’s operating areas. Multi-dimensional data analysis makes it possible to gain a better grasp of client needs, offer more efficient client service and provide for easier contacts with a greater amount of partnership. The means to execute these initiatives involve the usage of tools based on artificial intelligence, Big Data and mobile solutions.

Strategy of innovation

Source: PZU’s data

The ambition of the #newPZU strategy is to generate a return on equity (ROE) in excess of 22%, i.e. substantially higher than the average for insurance companies in Europe.

Contribution of the various lines of business to ROE growth

PZU’s ROE versus European insurers (2019)

Source: Bloomberg, PZU’s data

¹ Taking into account the investment activity in our own portfolio and net of the health insurance presented by PZU Zdrowie
² Pertains to third party asset management (giving consideration to all PZU Group entities)