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Interactive navigation is a tool that goes beyond the standard navigation of the integrated content (available in the report drop-down bar). New approach allowed to navigate in the two additional business dimensions of the PZU Group, i.e .:
- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
The above-mentioned areas were additionally supplemented with related GRI indicators, within each selected issue.

PZU Group Overview

Annual Report 2018 > BUSINESS > OVERVIEW > PZU Group Overview
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Best Pratices in PZU

We would like to do something different from the classical client relation model insurers follow in which the only contact clients have with their insurer after buying a policy is when a claim occurs. We bring together all of the PZU Group’s activities and integrate them in a client-focused manner: life insurance, non-life insurance, health insurance, investments, pensions, health care, banking and assistance services. Our client relationships and the knowledge of our clients are becoming our main value, while the Group’s chief product is the acumen in addressing client needs to build a stable future.

The New PZU – More Than Insurance

The Powszechny Zakład Ubezpieczeń Group is the largest financial group in Poland and Central and Eastern Europe. PZU heads up the group with its traditions dating back to 1803 when the first insurance company was established on Polish soil. PZU is a public company. PZU’s stock has been listed on the Warsaw Stock Exchange (WSE) since 2010. Since its floatation PZU has been in the WIG20 index. It is one of the most highly valued companies and heavily traded stocks on the Polish stock

exchange. PZU has also been one of the companies belonging to the Respect Index without interruption since 2012. (This index consists of the companies that exhibit the greatest corporate social responsibility on the Warsaw Stock Exchange).

The State Treasury with a 34.19% equity stake is PZU’s largest shareholder.

The PZU Group’s consolidated assets amount to PLN 329 and it enjoys the trust of 22 million clients in five countries by offering products and rendering services to retail clients, small and medium enterprises and business entities. The Polish market is the PZU Group’s core market measured by the scale of its business and client numbers. Nevertheless, its subsidiaries play an important role on the markets in Lithuania, Latvia, Estonia and Ukraine.

Its companies are active not only in life, non-life and health insurance but also in investment, pension, health care and banking products. Moreover, they render assistance services to retail clients and businesses through strategic partnerships. The magnitude and variety of operations paint the larger picture of what PZU is. It is a powerful financial institution, but above all it is a group of service companies whose operating foundation is the trust of its clients.

It is the Group’s strategic ambition to pursue a new approach to building client relations, thereby leading to the integration of all operating areas with the client at the focal point. This will make it possible to deliver products and services that are well-matched to client needs at the appropriate time and place and respond to other client needs on a comprehensive basis. A crucial element in this process involves the usage of tools rooted in artificial intelligence, big data and mobile solutions that will contribute to building an entrenched technological advantage in integrated client service.

PZU’s philosophy of thinking is driving the gradual transformation of the company’s operating model from an insurer model (pricing and transferring risk) to the model of a service company specializing in utilizing data (risk management consulting and services as well as caring for the future of clients, retail and business alike). The new model brings together all of the PZU Group’s activities and integrates them in a client-focused manner: life insurance, non-life insurance, health insurance, investments, pensions, health care, banking and assistance services.

Its robust brand underpins strategy execution. According to brand awareness surveys, PZU is the most recognizable brand in Poland (recognition of the PZU brand stands at 88% while prompted brand awareness is 100%).

Among all the Polish insurers PZU offers its clients the largest sales and service network. It has 411 branches with convenient access across the country, 9.1 thousand tied agents and agencies, 3 thousand multi-agencies, nearly 1 thousand insurance brokers and electronic distribution channels. When it comes to bancassurance and strategic partnerships, the PZU Group cooperates with 13 banks and 21 strategic partners. PZU also has a claim handling system that operates efficiently.

The PZU Group’s clients in Poland also have access to Bank Pekao’s distribution network (825 branches) and Alior Bank’s distribution network (202 own branches, 8

branches of private banking, 8 regional business centres, 643 intermediaries). Both banks have professional call centers and mobile and internet banking platforms.

In the Baltic States in which the PZU Group is in the insurance business, its distribution network consists of approximately 1 thousand agents, 33 multi-agencies and 390 brokers. PZU also cooperates with 5 banks and 14 strategic partners. In Ukraine insurance products are distributed through 700 agents and in cooperation with 14 multi-agencies, 30 brokers, 7 banks and 8 strategic partners.

We manage business in a responsible manner

PZU is an organization operating at a large scale. It is also cognizant of the expectations various stakeholder have of it, including clients, employees, investors, industry experts, social environment and a number of institutions and organizations. That is also why managing relations with stakeholders and their impact on the business community is accomplished in a deliberate and sustainable manner. PZU is a company that is open to social expectations. In the actions it takes it strives to set trends and construe business solutions responsibly. It also gets involved in actions to benefit the local communities in which the Group’s clients and employees function. For the PZU Group, sustainable management is a deliberate choice of how it conducts its business, thereby making it possible to build the company’s long-term value in an ethical and transparent manner while giving consideration to stakeholder needs and expectations. The full scope of information pertaining to the PZU Group’s implementation of corporate social responsibility principles that also incorporates all the legally-required non-financial information can be found in the 2018 Non-financial Information Report of the PZU Group and PZU forming an attachment to this Activity Report of the PZU Group and PZU.

Responsible business management in the PZU Group


Responsible business management in the PZU Group

The Group’s value growth should be aligned to the needs of the environment and rely on sustainable and responsible resource utilization

Values by which we are guided in our actions


Values by which we are guided in our actions

INNOVATIONS create a NEW value for the clients of the PZU Group

High potential of the largest financial group in Central and Eastern Europe, over 200 years of trust, experience, efficiency and innovation.


INNOVATIONS create a NEW value for the clients of the PZU Group

Major business areas

Major business areas

Major business areas

Major business areas

Major business areas

Financial highlights from 2014-2018 (in PLN m)

  2018 2017 2016 2015 2014
Gross written premium 23,470 22,847 20,219 18,359 16,885
Net ivestment result 904 1,855 1,217 1,622 2,500
Net insurance claims and benefits paid -14,563 -14,941 -12,732 -11,857 -11,542
Acquisition expenses -3,130 -2,901 -2,613 -2,376 -2,147
Administrative expenses -1,637 -1,647 -1,644 -1,658 -1,528
Operating profit 3,298 3,198 2,287 2,940 3,693
Net profit attributable to equity holders of the parent company 2,559 2,502 1,754 2,343 2,968
Net profit attributable to equity holders of the parent company 654 393 181 - -
Total assets 328,554 317,458 125,304 105,397 67,573
Equity attributable to the owners of the parent company 14,925 14,599 12,990 12,924 13,166

Restated data as at 31 December 2014 - 2017
PZU Group excluding financial data of Pekao and Alior Bank
Data from consolidated statement of financial position for 2016 restated - as at 1 January 2017

The financial results generated by the PZU Group in recent years place it among the most profitable financial institutions in the country. At the same time, they translate into high efficiency ratios. In 2018 the return on equity was 22.1%1, nearly double the average posted by insurance companies in Europe. Rapid growth is achieved while preserving a high level of business safety. This is corroborated both by its high solvency ratios and by the A- rating with stable outlook rating assigned by the US rating agency S&P Global Ratings.

As at the end of Q3 2018, the solvency ratio (calculated according to the standard Solvency II equation) was 245%, a level above the average solvency ratio reported by insurance groups in Europe.



Financial strength rating
and credit rating awarded to PZU by S&P


In 2018 no changes were made to PZU’s rating or outlook, while S&P Global Ratings twice affirmed the financial strength and creditworthiness ratings for PZU at A- with a stable outlook. This rating was assigned to PZU on 27 October 2017. This is one of the highest possible ratings for a Polish company to receive.

The promise of distributing profits to shareholders in the form of dividends also evidences PZU’s attractiveness as an investment, where these profits are not needed to underwrite its rapid growth. The dividend per share paid from 2017 earnings (on 3 October 2018) was equal to PLN 2.50, representing 78.6% y/y growth.

During the 12 months of 2018, PZU’s market capitalization rose PLN 4.6 billion. Taking into account the PLN 2.2 billion dividend paid to the shareholders, the annual rate of return on the Company’s stock was 10.1%. The benchmark WIG index recorded a 9.5% y/y loss in the same period.

Selected awards and distinctions

The PZU Group received numerous awards and distinctions for the activity in 2018. We present some selected ones below.

Selected awards and distinctions

PZU Group development

PZU Group development


09 January

announcement of the #newPZU strategy

09 January

appointment of Maciej Łopiński to be the PZU Supervisory Board Chairman

31 March

record-breaking opening of the year in terms of gross written premium (the best first quarter in the history of the PZU Group)

13 June

Impact’18 Congress in Cracow – The Future of the Digital Economy

25 June

S&P awards a rating to TUW PZUW (A-)

28 June

PZU SA’s Ordinary Shareholder Meeting

26 July

portal of new opportunities – new unveiling

30 September

PZU Group’s highest quarterly net profit in 5 years

03 October

dividend paid from PZU’s 2017 profits (PLN 2.50 per share)

04 October

#PolandCanDoNation Conference in New York

31 October

S&P affirms PZU’s rating at A- (stable outlook)

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